What is the triple lock? The state pension system explained and why there are calls to scrap it

MILLIONS of people have the value of their state pension protected by the triple lock, but fresh calls have been made to overhaul the guarantee. The British Chambers of Commerce (BCC) urged Chancellor John Healey to replace the system with inflation-linked rises ahead of his first Budget on October 28. The triple lock protects annual state pension rises Credit: Getty It means that the state pension has to rise by at least 2.5% every year Credit: Getty The BCC argues the move could save around £3.3billion over two years, with some of the cash instead used to help firms employ younger workers, but the Government insisted that the triple lock is staying. Here’s everything you need to know about how it works and why its future is being debated. Sign up for the Money newsletter Thank you! What is the state pension triple lock? The triple lock guarantees that basic and new state pensions increase every April by whichever is highest out of three figures. These are the annual rise in average earnings between May and July, September’s Consumer Prices Index inflation figure or 2.5%. It means the state pension can never rise by less than 2.5%, even when wages and prices are growing more slowly. The policy was introduced by the Conservative-Liberal Democrat coalition from the 2011/12 financial year, with the aim of protecting pensioners’ incomes and restoring the value of the state pension relative to earnings. It has operated every year since apart from 2022/23, when the earnings element was temporarily suspended because wage figures had been distorted by the pandemic. How much is the state pension in 2026? The full new state pension currently stands at £241.30 a week, although what someone receives depends on their National Insurance record. Most read in Money The new system generally covers people who reached state pension age on or after April 6, 2016. Those who reached it earlier come under the old system, where the full basic state pension is currently £184.90 a week. On August 18, figures from the Office for National Statistics showed that total pay grew by 4.1% between April and June 2025 and the same period in 2026. This month’s earnings figures, which will reveal wage growth for May-July, will be used to calculate the triple lock. When they come out, if the figures stay the same, the new state pension would increase by £9.90 a week, or £500 a year. Pensioners would receive £251.20 a week, pushing the state pension up from £12,548 a year to £13,048. Meanwhile, those on the old state pension could see their weekly income rise by £7.60, or £395 a year. This means they would receive £192.50 per week, increasing the old state pension from £9,615 to £10,010 annually. Why are there calls to scrap the triple lock? Critics argue the guarantee has become increasingly expensive as an ageing population puts pressure on the public finances. In July 2025, The Office for Budget Responsibility (OBR) found the triple lock has cost roughly three times more than originally expected because inflation and earnings have been more volatile than anticipated. It estimated that by 2029/30, using the triple lock rather than simply linking pensions to earnings will add £15.5billion a year to state pension spending. The Organisation for Economic Co-operation and Development (OECD) called for the UK to review state pension indexation in its July 2026 economic survey, while the Resolution Foundation has also called for an eventual end to the guarantee. Now the BCC wants pensions to rise with CPI inflation instead, arguing savings could help fund a cut in employer National Insurance for workers aged 21 to 24. As part of three steps it recommends for the Budget, the BCC called for Joh Healey to: “Cut employer National Insurance contributions for all under-25s, to help tackle the youth employment crisis, funded in part by replacing the pensions triple lock.” Supporters of the triple lock say it gives pensioners vital protection from rising living costs and prevents the state pension falling behind workers’ incomes. And despite the renewed pressure, the Government says it has no plans to abandon it. On September 7, Treasury Chief Secretary Emma Reynolds told LBC: “The Prime Minister has made clear that we’re not getting rid of the Triple Lock.” Comment now