What will likely replace the pension triple lock, according to the man who created it

finance
Created 1/20/2025
Updated 1/20/2025

Sir Steve Webb, creator of the pension triple lock, predicts it won’t last a generation, potentially replaced by linking pensions to a fraction of average wages, possibly a third. The triple lock, ensuring annual state pension rises by the highest of inflation, wage growth, or 2.5%, is under scrutiny for being unsustainable, with costs projected to rise from £124bn to £158bn by 2029. Webb notes its success in reversing decades of pension value decline but acknowledges its long-term affordability issues. Both Labour and Conservatives hint at potential changes, with no guarantees for its current form beyond 2029.

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