Possible Changes to the Pensions Triple Lock

The Government is considering replacing the Pensions triple lock, which guarantees a minimum yearly increase in the state pension.

What is the triple lock?

The triple lock was introduced by the coalition government in 2011 and it guarantees that the basic state pension will rise by a minimum of 2.5%, the rate of inflation or the average earnings growth, whichever is largest. Over the past few years pensioners have seen their incomes rise at almost double the pace of the average worker due to the triple lock indexation boosting the value of the state pension.

Why change it?

In 2015-16 the triple lock cost the government an extra 6bn a year according to the government's actuary department. Chancellor Philip Hammond and Prime Minister Theresa May are known to believe the rising cost means the Tories should consider a double lock on the state pensions rather than a triple lock, instead linking increases in the state pension to rises in earnings or inflation.

To learn more about the triple lock and the Government's plans, visit the Guardian website.