Will pensioners be poorer as a result of Burnham scrapping the triple lock?

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The new policy, just announced by Andy Burnham, should remove the ‘ratchet’ effect, where high inflation can trigger a sharp rise in the state pension. Photograph: Andy Rain/EPA View image in fullscreen The new policy, just announced by Andy Burnham, should remove the ‘ratchet’ effect, where high inflation can trigger a sharp rise in the state pension. Photograph: Andy Rain/EPA State pensions Explainer Will pensioners be poorer as a result of Burnham scrapping the triple lock? Original triple lock was designed to lift pensioners out of poverty but OBR says it contributes to unsustainability of public finances

Prefer the Guardian on Google The prime minister has announced that the pensions triple lock will be scrapped in its current form, to partly fund a national care service.

On the existing triple lock, the state pension increases each April by inflation, 2.5% or average earnings, whichever is higher.

From 2030, under what Labour is calling an “adjusted triple lock”, the pension will still rise either in line with prices, or 2.5% each year, whichever is higher – but it won’t rise in line with earnings unless its value has fallen behind. In that case, it will be adjusted so that it keeps pace.

The cost of providing the state pension in the 2026/27 tax year, according to the Institute for Fiscal Studies (IFS) thinktank , will be £154bn, making it the most costly benefit in the UK. Andy Burnham has outlined ambitious plans for a national care service that will need to be paid for.