Burnham to End Pensions Triple Lock From 2030 to Fund Free National Care Service

Abdul Mannan 2 hours ago • 2 min read

A care worker holding the hand of a smiling elderly woman in her living room at home

British Prime Minister Andy Burnham has committed his government to ending the state pension “triple lock” from 2030, using the savings to fund a new National Care Service that will be free at the point of use.

Announcing the move in his first conference speech as Labour leader in Liverpool on Tuesday, Burnham said the triple lock — which guarantees the state pension rises each year by the highest of inflation, earnings growth or 2.5 per cent — would be replaced after the next general election, according to Reuters.

From April 2030, the pension would instead rise each year by at least inflation or 2.5 per cent, while maintaining its value relative to earnings over time. The government believes the change will save up to £50 billion by 2050 — roughly £2,000 a year per pensioner in real terms — and the money would help pay for a care service expected to cost up to £18 billion a year.

Burnham said the new service would cover personal care with no charges taken from the basic state pension, adding that low-income pensioners would pay no income tax during the current parliament.

The decision breaks with Labour’s pledge to protect the triple lock for this parliament, though the change takes effect only after the next election, due by mid-2029. Economists have long urged reform: the Office for Budget Responsibility warned in July that the lock is a major reason state pension spending is projected to rise from 5 to 9 per cent of economic output.

Reaction was fierce. Unite general secretary Sharon Graham called scrapping the lock “electoral suicide”, telling The Times that Britain already spends less on pensions than any other G7 country. Conservative leader Kemi Badenoch accused Burnham of taking Britain “back to the 1970s”.

Burnham acknowledged the political risk, telling delegates: “I accept I may pay a political price. But someone has to go through the pain barrier and rip the plaster off.”