Support the pension triple lock

To retain the triple lock state pension under all circumstances

The Government is committed to protecting the incomes of pensioners, as well as being fair to taxpayers. We are introducing legislation this year to increase the basic and new State Pensions by at least the higher of price inflation or 2.5%. We are setting aside the average earnings measure this year because it has been distorted by falls in earnings last year and the unusual labour market effects this year, both caused by the pandemic. This is a one-year response to exceptional circumstances. The Government remains committed to implementing the Triple Lock for the remainder of the Parliament.

Last year, we delivered primary legislation to increase State Pensions by 2.5%, when earnings fell and price inflation increased by half a percent. If we hadn’t taken this action, State Pensions would have been frozen.

The pandemic has meant the earnings statistics which are used in the Triple Lock formula remain distorted and therefore we need to go through the same process this year. Over the two years, the State Pension will have increased by more than price inflation. When taking into account the wider situation, we believe that this approach over two years is fair to both pensioners and younger taxpayers.

The Government remains committed to ensuring that older people are able to live with the dignity and respect they deserve – the State Pension is the foundation of support for older people. We spend over £129bn on benefits for pensioners. This includes spending on the State Pension which is forecast to be over £105bn in 2021/22.

As a result of the Government’s Triple Lock policy, the full yearly basic State Pension is now over £2,050 higher than a decade ago. The State Pension is also supported by further measures for older people, which include the provision of free bus passes, free prescriptions, Winter Fuel Payments and Cold Weather Payments.

In addition, Pension Credit provides a safety net for those most in need. Pension Credit provides a top up for people of State Pension age with a weekly income below £177.10 (for single people) or £270.30 (for couples).

Department for Work and Pensions