Asked by: Cameron Thomas (Independent - Tewkesbury)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what assessment he has made of the potential impact of tying pension growth at a minimum of 2.5% on (a) pensioners and (b) the economy.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The Government is committed to maintaining the Triple Lock for the remainder of this Parliament. This means that the basic and new State Pensions will increase each year by the highest of growth in average earnings, Consumer Prices Index inflation or 2.5%.
From April 2030, pensioners will be protected by an adjusted Triple Lock. The basic and new State Pensions will continue to increase every year by at least the higher of CPI inflation or 2.5%, and by more where needed to maintain their protected value relative to average earnings. This will lock in the gains made under the current Triple Lock while putting the State Pension on a sustainable footing.
The Department has published analysis of the long-term impact of the adjusted Triple Lock, including projected effects on pensioner poverty and indicative expenditure savings. This is available in the GOV.UK publication, State Pension uprating analysis 2026: https://www.gov.uk/government/publications/state-pension-uprating-analysis-2026.