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  "path": "/money/rachel-reeves-state-pension-triple-lock",
  "publishedAt": "2026-06-13T05:00:02.000Z",
  "site": "https://www.gbnews.com",
  "tags": [
    "State pension plan to give unemployed young Britons £12,000 slammed as 'raid on savings'",
    "State pension age rises to 67 as Britons born after 1960 face delayed retirement payments",
    "Older homeowners could unlock more cash under mortgage shake-up",
    "The GB News Editorial Charter"
  ],
  "textContent": "\n\n\nRachel Reeves is faces pressure to scrap the state pension triple lock after it was branded as \"terribly designed\" and that it risks causing further economic damage.\n\nThe Resolution Foundation urged the Chancellor to abolish the triple lock without delay, arguing the guarantee has become significantly more expensive than originally expected and is no longer an effective tool for reducing poverty.\n\n###\n\n\n\n\nThe left-leaning think tank, previously headed by current pensions minister Torsten Bell for almost a decade, published its findings in a report titled \"What a Ratchet\".\n\nAccording to the report, the cost of maintaining the triple lock has risen sharply since the mechanism was introduced.\n\n###\n\n\n\n\nTRENDING\n\nStories\n\nVideos\n\nYour Say\n\n###\n\n\n\n\nThe policy, implemented by former Conservative chancellor George Osborne in 2016, guarantees the state pension rises every April by whichever figure is highest between consumer price inflation (CPI), average wage growth, or a minimum floor of 2.5 per cent.\n\nThis April, the full new state pension increased by 4.8 per cent, rising from £11,973 annually to £12,548 following strong wage growth recorded last summer.\n\nGovernment spending on the state pension reached £138billion during the 2024-25 tax year, accounting for around five per cent of overall Government expenditure.\n\nThe Resolution Foundation forecasts that figure will increase to £154billion during the current financial year.\n\n###\n\n\n\n\n###\n\n\n\n\n###\n\n\n\n\nThe think tank also predicted costs would rise by a further £13.8billion by 2029-30 if the current system remains in place.\n\nUnder the existing arrangement, state pension payments increase according to whichever measure proves highest between September's consumer prices index inflation rate, average earnings growth between May and July, or the 2.5 per cent minimum threshold.\n\nThe Resolution Foundation has proposed replacing the triple lock with what it described as a \"smoothed earnings\" link.\n\nUnder that proposal, pension increases would continue to track either wage growth or inflation, whichever is higher, but would include protections designed to prevent unusually large increases.\n\n### LATEST DEVELOPMENTS\n\n\n\n\n  * State pension plan to give unemployed young Britons £12,000 slammed as 'raid on savings'\n  * State pension age rises to 67 as Britons born after 1960 face delayed retirement payments\n  * Older homeowners could unlock more cash under mortgage shake-up\n\n\n\n###\n\n\n\n\n###\n\n\n\n\nBased on current economic forecasts, the think tank said weekly state pension payments would reach £199.65 by 2029-30 under the revised system compared with £200.95 under the existing triple lock.\n\nThe Treasury would consequently save around £650million during that year alone.\n\nRuth Curtice, Chief Executive of the Resolution Foundation, said: \"The pensions triple lock is a terribly designed policy that has proven to be far more expensive than originally planned, far less effective at reducing poverty than many hoped, and risks causing further economic harm if it continues for much longer.\"\n\nShe added: \"We cannot afford to keep this policy for another parliament. The Government should call time on the triple lock as soon as possible and put the savings to far better use.\"\n\nTorsten Bell served as chief executive of the Resolution Foundation from 2015 until he was elected as MP for Swansea West in 2024 before later joining the Government as pensions minister.\n\n###\n\n\n\n\n###\n\n\n\n\nSeveral policy recommendations previously advanced by the think tank on issues including the National Living Wage, child poverty and employment rights have since been reflected in Labour legislation.\n\nResearch carried out by the Resolution Foundation suggested typical pensioner households now have income levels comparable to non-pensioner households.\n\nIt also noted the state pension currently amounts to 30 per cent of median full-time earnings, close to the 31 per cent ceiling recommended by the first pensions commission in 2004.\n\nThe Resolution Foundation is not the only organisation to have called for changes to the triple lock in recent months.\n\nThe Tony Blair Institute, the Intergenerational Foundation and former Conservative chancellor Jeremy Hunt have all urged ministers to reconsider the policy over the past 12 months.\n\n###\n\n\n\n\n\n\n\n\n\n\n**Our Standards: The GB News Editorial Charter**",
  "title": "Rachel Reeves urged to scrap 'terrible' state pension triple lock 'as soon as possible'"
}