THE TRIPLE lock must be scrapped as pension costs are set to soar by £85billion a year, Sir Tony Blair’s think tank has warned.
The Tony Blair Institute says the current system is becoming unsustainable as Britain’s ageing population drives up spending.
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Tony Blair’s think tank has warned the Triple Lock must be scrapped as pension costs are set to soar by £85billion a year amid Britain’s ageing population Credit: Alamy
There are already 12.6 million pensioners, with numbers expected to hit nearly 19 million by 2070, with costs forecast to rise from 5 per cent of GDP to 7.8 per cent Credit: Getty
There are already 12.6 million pensioners, with numbers expected to hit nearly 19 million by 2070.
On current policy, costs will rise from 5 per cent of GDP to 7.8 per cent, according to the think tank.
The report warns that would mean higher taxes, cuts to public services, or both.
Instead of the triple lock, the TBI wants pensions to rise in line with earnings over time, using a “smoothed” link to avoid sudden jumps.
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That would keep payments rising with living standards but strip out the costly boosts driven by inflation spikes or the 2.5 per cent floor.
The institute also calls for a wider overhaul, replacing the state pension with a new “Lifespan Fund”.
Under the plan, people would build up a personal pot through work, study and caring roles across their lives.
They could dip into it earlier for retraining or time out of work, then top it back up later through higher contributions.
The Tony Blair Institute’s Tom Smith said: “Pension spending must be contained, and that means the triple lock cannot continue after the next Election.
“Ending it will require political leadership from all parties – but that should only be the first step.
“Real reform must also build a better system: one that is fairer, more flexible, and designed for how people live today.”
