Burnham to Scrap Pension Triple Lock to Fund Care Service

Prime Minister Andy Burnham announced on 29 September 2026 that the UK's pension triple lock, which guarantees annual increases by the highest of inflation, wage growth or 2.5%, will be replaced from April 2030 with a new formula, with the resulting savings used to help fund a new National Care Service.¹²³⁸

A phased change

Burnham said the existing triple lock would be honoured for the remainder of the current Parliament before being altered, framing the change as part of Labour's manifesto commitment ahead of the next general election.²⁶

Burnham said: "Our manifesto pledged that the triple lock would stay unchanged for the duration of this Parliament. I will honour that promise."⁶

New formula

Under the proposed replacement, often described as a 'double lock', annual pension increases would track whichever is greater between inflation and 2.5%, stripping out the current system's link to earnings growth. Officials said occasional adjustments could still be made so the pension keeps pace with earnings across a longer time frame.³⁴⁶⁷

Burnham said: "Each year, the state pension will keep increasing by no less than prices or 2.5%. And over time it will retain its worth when measured against earnings."⁶

Funding a care service

Government estimates of the resulting savings have varied, with figures including an extra £15 billion annually for social care by 2040, and separate Department for Work and Pensions analysis suggesting the figure could climb as high as £50 billion a year, unadjusted for inflation, toward the close of the 2040s.¹⁶⁷

The planned National Care Service would provide free personal care, including help with eating, bathing and using the toilet, based on need rather than ability to pay, though it would not cover bed-and-board costs. A separate, independent review of adult social care chaired by Baroness Louise Casey is expected to deliver findings in summer 2027 that will help shape the service.³⁴⁶⁷

Burnham said: "So this is the deal. A state pension that rises every year. No care charges. And a high-quality National Care Service."⁶

A personal motivation

According to the Yorkshire Post, Burnham has spoken of personal reasons behind the policy, including his father Roy's death after suffering from Alzheimer's, and his grandmother Kitty having her engagement ring stolen from a care home.³

Reaction

Conservative leader Kemi Badenoch said the plan would not resolve Britain's longer-term problems, according to ITV News.⁸

In the pensions industry, Kate Smith of Aegon welcomed the move, saying: "Aegon has long called for a serious conversation about how the state pension can remain affordable, sustainable, and fair across generations." Mark Pemberthy of Gallagher said: "Burnham's proposal is a significant change, but the state pension will still rise each year by inflation or 2.5%," while also noting: "Care costs are one of the hardest things to plan for in retirement because you simply don't know whether you'll need care, for how long, or what it might cost."⁵⁶

Calum Cooper of Hymans Robertson said: "The triple lock cannot sensibly continue for ever, but reform should not be a simple cost-cutting exercise," and added: "The perception of wealthy pensioners misses the vast swathes of pensioner poverty existing in the UK." Lily Megson-Harvey of My Pension Expert said: "Almost eight in ten over-55s are worried that changes to the State Pension could leave them worse off," citing survey findings that 61% of over-55s say frequent speculation makes pension planning harder.⁵

Wider reform agenda

According to the Yorkshire Post, Burnham also announced measures for public control of water companies, pledged to put proportional representation to a public vote, and signalled an interest in closer ties with, or rejoining, the European Union.³