29 September 2026
If you are covering Andy Burnham's speech in which said he is going to replace the triple lock, please see the following comment from Adam Cole, retirement specialist at Quilter:
"Andy Burnham's decision to confront the increasingly difficult question of whether the triple lock is sustainable in its current form marks the beginning of a debate that has been postponed for too long. The triple lock has undoubtedly succeeded in improving pensioner living standards and protecting retirees through periods of high inflation, but growing longevity, demographic pressures and rising State Pension costs mean questions about its long-term affordability and sustainability can no longer be avoided. For too long, reform has been tossed from government to government like a hot potato that no one wants to keep.
"However, any discussion about reform must begin with a clear understanding of how important the State Pension remains to millions of people. Our latest Retirement Lifestyle Report shows it accounts for almost a quarter of retirement income on average, while among retirees aged 65 to 79 with incomes of £25,000 or less it provides 57% of their retirement income. For over-80s on below-average incomes, it accounts for 54% of what they live on. This is not simply a debate about public spending, but about the financial security of current and future retirees.
"The commitment to ensure the State Pension 'holds its value relative to earnings over time' is particularly significant because it suggests earnings will continue to play an important role within the future framework. However, the devil will be in the detail. At this stage it remains unclear whether that means maintaining the State Pension at a certain proportion of average or median earnings, smoothing earnings growth over a number of years, or using another mechanism entirely. Equally important is what happens when earnings growth runs ahead of inflation or 2.5% for a sustained period. If the State Pension is intended to maintain its value relative to earnings over the long term, there will need to be some mechanism that allows it to catch up with wage growth over time. The broad principle may be clear, but the practical design of the system will ultimately determine how well it balances sustainability with pension adequacy.
"Policymakers must balance providing adequate support for pensioners, maintaining fairness between generations and ensuring the system remains affordable for taxpayers over the long term. While concern about the future cost of the triple lock is understandable, the answer cannot simply be to focus on reducing expenditure without first deciding what level of support society expects the State Pension to provide.
"Future retirees may also be more reliant on the State Pension than many pensioners are today. Our research shows defined benefit pensions account for 33% of income among over-80s with above-average retirement incomes, compared with just 14% among younger retirees. As these schemes become increasingly rare, future generations are likely to rely more heavily on the State Pension and defined contribution pensions to fund retirement.
"More detailed proposals will emerge alongside, or following, the Pensions Commission's final recommendations in spring 2027. Given the Commission has been tasked with examining the sustainability, adequacy and fairness of the UK's pension system, its findings should provide an important evidence base for Labour's longer-term pensions strategy."
