Burnham proposes scrapping the pension triple lock in 2030 to fund social care

Andy Burnham has announced a plan to end the current pension “triple lock” system in April 2030. He said the savings generated would be used to support reforms to adult social care in England.

The mechanism currently guarantees that the state pension rises each year based on whichever is highest among inflation, average wage growth or 2.5%.

Under the proposed change, this link would be removed from April 2030. The government estimates that the measure could generate savings of around £15 billion a year by 2040.

The aim is to reduce public spending on pensions and create additional funds for a wide-ranging social care reform. However, initial estimates have raised doubts about whether these savings would be sufficient to finance a comprehensive system.

Burnham has also proposed establishing a “national care service”, in which contributions would be shared and coverage guaranteed for everyone. Under his proposal, services would be provided free at the point of use.

Social care reform is part of a broader package of policies presented by Burnham.

In housing, he has promised changes to the rental system, while in the water sector he has proposed a review of public ownership.

Burnham has also said that Brexit has caused “more harm than good” and has promised to reform the electoral system in the Labour Party’s next manifesto.

The proposals have drawn reactions from political opponents. Kemi Badenoch, leader of the Conservative Party, said after the speech that the plan to fund social care through changes to the “triple lock” was facing difficulties during scrutiny.

The debate is expected to focus on the consequences the measure could have for pensioners, as well as on how to finance a broader social care scheme.

Removing the triple lock in 2030 would mark a significant change in how increases to the state pension are determined in England. Meanwhile, the government will have to decide how the savings will be allocated to reform social care.