Triple lock for State Pension ‘cannot continue’ report warns

The group warns the current system is “outdated, increasingly unaffordable, and too rigid” — piling pressure on public finances as the population ages.

At the centre of the proposals is a dramatic shift away from the traditional pension model.

Instead, the think tank wants a new “lifespan fund” – allowing people to build up state-backed support not just through work, but also caring responsibilities and education.

That support could then be used during key moments in life – including unemployment, retraining or caring for family.

Tom Smith, director of economic policy at the Tony Blair Institute, said: “Britain’s state pension system was built for a different era.”

He added: “We can’t keep pouring money into a system that is increasingly unaffordable.”

Triple lock ‘cannot continue’

The report takes direct aim at the triple lock — the policy that guarantees the state pension rises each year by the highest of earnings, inflation or 2.5%.

Smith said: “Pension spending must be contained, and that means the triple lock cannot continue after the next election.”

He added: “Ending it will require political leadership from all parties — but that should only be the first step.”

A £66bn warning

The intervention comes amid stark projections about the future cost of pensions.

The report warns that the number of pensioners is set to surge from 12.6 million today to nearly 19 million by 2070.

At the same time, spending on the state pension could rise sharply – from around 5% of GDP to 7.8%, putting pressure on taxes and public services.

By contrast, the proposed new system could limit spending to around 5.5% – potentially avoiding £66 billion a year in extra costs by 2070.

‘Real freedom’ but with a catch

Under the plans, people would be able to dip into their pension pot earlier in life but would later repay it through higher National Insurance contributions.

Smith said: “TBI’s proposed Lifespan Fund offers that better alternative.”

He added: “It gives people real freedom to use support earlier in life… and to top it back up before retiring on their own terms.”

Big political battle ahead

The think tank is urging cross-party talks to push through reforms before the next election – setting the stage for a major political debate over the future of pensions.

Caroline Abrahams, charity director at Age UK, said: “Age UK firmly believes that the Triple Lock should be retained into the next Parliament.

“Over time this policy has rebuilt the value of the State Pension, helping to improve the living standards of some of our poorest pensioners.

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“Today, we continue to hear from older people who are struggling financially, and the extra money the Triple Lock delivers makes a meaningful difference to many lives.

“In new polling, 3 in 10 pensioners say they are struggling financially – even before the worrying rise in energy prices.

“Going forward, we need a national debate to determine the purpose and appropriate value of the State Pension as, at present, it is set too low to provide those reliant on it with a decent standard of living throughout their later lives.”

What do you think about these proposals to replace the triple lock? Let us know in the comments.