Faisal Islam: Triple lock move is significant, but it's a gamble
Prime Minister Andy Burnham has announced a significant reform to the UK's 'triple lock' pension policy, transitioning to an 'adjusted' model to fund national social care. The change replaces the annual earnings link with a long-term average, sparking debate over the political and economic implications of the gamble.
Why it matters
The reform represents a major shift in UK fiscal policy that could save billions in long-term government spending while impacting pensioner income.
Image source, Getty Images By Faisal Islam Economics editor Published 17 minutes ago It was a significant announcement from Prime Minister Andy Burnham on his plans for the triple lock after the general election. It will reverberate well beyond the hall.
For months, I have heard suggestions that Andy Burnham was warm to suggestions that the triple lock as we know it had to go.
I had expected him to try to forge a political consensus on this thorny issue at this stage, but he has gone further than that. He has tried to take the sting out of the politics of his decision by tying it to funding a new national social care service.
The government calls it an "adjusted triple lock" as it is keen that pensioners are reassured. It is more like a double lock plus. The sensitivity over this political gamble is clear.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in