New state pension threat as Rachel Reeves guru says axe ‘bonkers’ triple lock to save UK

The UK’s triple lock policy, which ensures that the state pension rises each year by the highest of inflation, earnings growth, or 2.5%, is once again under scrutiny as Chancellor Rachel Reeves prepares to deliver her Spring Statement.

Former Treasury minister Lord Jim O’Neill, who has advised Reeves, has called the policy “bonkers” and urged the Chancellor to scrap it, sparking fears that pensioners could face further financial strain. 

Reeves is under pressure to find savings to balance the books and fund increased defense spending, particularly as US President Donald Trump reduces support for Ukraine. However, targeting the triple lock would be highly controversial, as it has been a key policy in lifting millions of pensioners out of poverty since its introduction in 2011. 

Pensioners have already been hit by recent measures, including cuts to the Winter Fuel Payment and the freezing of the personal allowance, which has pushed many into paying income tax despite living on low incomes. The possibility of accelerating an increase in the state pension age has also been discussed, adding to concerns about the financial security of older citizens. 

Critics argue that the triple lock is unsustainable and suggest linking pension increases solely to earnings to reduce costs. However, scrapping the policy would likely provoke a strong backlash from the 12 million pensioners who rely on it, many of whom are already feeling unfairly targeted by recent government decisions. 

Reeves faces a difficult balancing act as she seeks to manage the economy while maintaining public trust. While she has signaled a willingness to make tough decisions, abandoning the triple lock could alienate a significant portion of the electorate, particularly as pensioners are less likely to vote Labour. 

What do you think about the potential scrapping of the triple lock? Should the government prioritize fiscal responsibility, or is it essential to protect pensioners’ incomes? Let us know in the comments. Don’t forget to like and follow for more updates on this critical issue.