The triple lock: How will State Pensions be uprated in future?
The sustainability of the triple lock is likely to be a key consideration for future parliaments.
20 noviembre 2023
The State Pension is expected to increase substantially next April for the second consecutive year, prompting debate about the affordability of the ”˜triple lock”™.Under the triple lock, State Pensions are expected to rise by 8.5% in April 2024 in line with earnings. This follows a 10.1% increase in line with Consumer Price Index (CPI) inflation the previous year. This Insight explains what the triple lock is and summarises debates about its sustainability.
What is the triple lock?
The government is legally required to increase the basic and new State Pension each year at least in line with average earnings. The ‘triple lock’ is a commitment, beyond this legal requirement, to increase State Pensions by whichever is highest of average earnings growth, CPI inflation, or 2.5%. The triple lock was first introduced by the Coalition Government and came into effect in the 2011/12 financial year. It has been applied every year since, except for a temporary suspension in 2022/23. Prior to this, pensions had been uprated at least in line with prices since 1980, and with earnings before this.
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