If the triple lock is reformed, should the savings go to young people rather than pensioners?
The state pension's triple lock guarantees annual increases by the highest of earnings growth, CPI inflation or 2.5%. In September 2026 Prime Minister Andy Burnham announced it will stay in full until 2029 but from April 2030 will change to the highest of inflation or 2.5% plus an earnings link over time. This is projected to generate £15bn a year in savings by the late 2030s (in today's prices around £11bn), which the government intends to use for a National Care Service providing free personal care. Younger generations face higher housing costs, student debt and lower pension adequacy, with around a third of under-60s projected to retire below minimum living standards.
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The state pension needs further increase before the triple lock is removed. The focus should be on reducing other elements of the welfare state, such as universal credit which is overly generous.
It depends on what you mean by "go to". The old phrase was "Robbing Peter to pay Paul." As configured, employee-paid taxes and the remaining money being taxed when we spend it cover everything. So the money should "go to" decreasing unemployment. Another loop. I have a suspicion the employment effects of AI are not getting enough attention, though.