Triple lock warning as 'future economic shock' could hit state pension increase

Triple lock warning as 'future economic shock' could hit state pension increase The Government previously tinkered with the triple lock due to exceptional economic circumstances Share Article Share Article Facebook X LinkedIn Reddit Bluesky Email Copy Link Link copied Add us as preferred source Comments By Nicholas Dawson , Finance Reporter 04:41, Sat, Oct 24, 2026 Key changes to the state pension are coming in (Image: Getty) The Government recently announced the triple lock will change in a few years' time . But state pensioners may wonder if they could water down the policy even before then, given the uncertain times in which we live. Catherine Foot, director of thinktank Standard Life Centre for the Future of Retirement , took on this question. She said: "The Government has committed to maintaining the triple lock , and it would be difficult to speculate on how future economic shocks might affect that commitment. Article continues below ADVERTISEMENT "What matters is that any decisions strike a careful balance between supporting today's pensioners and ensuring the system remains fair and sustainable for future generations." With on-going international conflicts in Iran and Ukraine , there is the potential that the economic situation could suddenly change in the UK, which may influence policymakers. The Government changed the triple lock previously There is precedent for the Government changing the policy in exceptional circumstances. For the April 2022 increase, the Government decided not to apply the average earnings metric, after the sudden rise in average earnings when the Covid -19 furlough scheme came to an end. Get personal finance news, money saving tips and advice plus selcted offers and competitions I would like to receive emails from the Daily Express featuring our latest products, services, offers, and promotions from across the Reach Plc family . Subscribe Invalid email You agree you are 18 or over. We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and third parties based on our knowledge of you. You can unsubscribe at any time. More Info . Instead payments went up with inflation, lifting the state pension by 3.1 per cent. The triple lock policy means payments go up each April in line with the highest of three numbers - either the rate of inflation, the rise in average earnings or a minimum of 2.5 per cent. Article continues below ADVERTISEMENT 'Important role' Ms Foot outlined the dilemma facing the Government with the rising state pension bill. She said: "The triple lock has played an important role in protecting pensioner incomes and supporting living standards, particularly during periods of high inflation over the last few years. Article continues below ADVERTISEMENT Ensure our latest DWP headlines always appear at the top of your Google Search by making us a Preferred Source. Click here to activate or add us as Preferred Source in your Google search settings. "At the same time, the state pension also represents a significant public finance commitment, so questions around its long-term affordability and sustainability are understandable." Prime Minister Andy Burnham announced at the Labour Party conference recently that the policy will be changed from 2029, so the average earnings measure will be removed. The PM assured that payments will still keep track with the rising in earnings over time. Andy Burnham just hit Britain with a sneaky £30bn tax grab – BEFORE the Budget Barclays set to cut 5,000 jobs within weeks after £200 million cost savings Ms Foot said it's important people know what's going on with their state pension. She said: "Crucially, people need clarity and confidence about what they can expect from the state pension, so they can plan effectively for retirement." Two imminent changes to the state pension Two important changes to the state pension rules are taking place very soon, with one already underway: State pension age increase - The age you can access your state pension is increasing from 66 to 67. This is happening in stages, with the process starting back in April 2026 and completing by April 2028. Also on April 2028, the age you can access your private pensions will move up from the current 55 to 57 New tax exemption - The Government is introducing a new policy so that people whose only income is that full new state pension, without any additional amounts through the scheme, will not pay income tax on their payments. Ministers are expected to provide more details about how this will work at the Autumn Budget, on Wednesday, October 28. State Pension Triple lock Retirement Retirement Age Andy Burnham Labour Party DWP Benefits Share Article Share Article Facebook X LinkedIn Reddit Bluesky Email Copy Link Link copied Add us as preferred source Comments