The State Pension triple lock could be replaced with a “double lock”, a former Conservative pensions secretary has suggested, in a major warning for millions of pensioners.
Baroness Therese Coffey, who served as DWP secretary from 2019 to 2022 and was also deputy prime minister, said the triple lock should “probably” be reconsidered.
She said the guaranteed 2.5% annual rise “probably seemed the right thing” when the policy was introduced but argued that it had now achieved its original aim.
Instead, Lady Coffey said she would prefer “some kind of double lock” for the State Pension.
The comments come as the controversial triple lock faces mounting criticism over its cost, with a series of senior figures calling for the system to be changed.
What is the State Pension triple lock?
The Conservative-Liberal Democrat coalition government introduced the triple lock in 2010.
It guarantees that the State Pension rises each year by whichever is highest of inflation, average earnings growth or 2.5%.
The policy was designed to protect pensioners from their incomes falling behind rising prices or wages.
But critics have increasingly questioned whether the system remains affordable as the number of pensioners rises and the cost of the State Pension increases.
Addressing the House of Lords on Friday, Lady Coffey said: “I think sometimes the triple lock gets blamed for a lot of things.
“To some extent, I would actually probably prefer some kind of double lock.
“The 2.5% probably seemed the right thing at the time in order to achieve the policy outcome of getting pensions as a proportion of earnings up more quickly and it’s achieved that, I think, by and large.”
Calls to scrap the triple lock are growing
Lady Coffey's comments came during a debate on a committee report examining the UK's preparedness for an ageing society.
Peers from across the chamber raised concerns about the future of the triple lock.
Lord Jim O’Neill, an ally of Andy Burnham, said the bond markets would “respond favourably” to a Government that takes “credible action to deal with the excesses of the triple lock or the excesses of welfare spending”.
Former NatWest chairman Sir Howard Davies also warned that the country “can’t afford it” and said the Government’s credibility will be “on the rack” if action is not taken.
Fellow Conservative peer Lord Tugendhat said the triple lock was “much needed” when it was introduced but should now be replaced “without further ado”.
Crossbench peer Lord Turnbull, a former head of the civil service, went even further, branding the current system “frankly idiotic”.
He said: “We have a chaotic system generating random windfall gains, and they are always gains, according to the movement of earnings prices in particular years. The OBR has estimated that this could cost an extra 2% of GDP.”
Labour former home secretary Lord Reid of Cardowan said the report should “more forthrightly consider and challenge the triple lock”.
Not everyone wants the triple lock scrapped
The proposal has faced opposition from some peers.
Lord Redwood, a Conservative former Welsh secretary, insisted ending the triple lock would be a “great pity”, arguing that it had helped reduce pensioner poverty.
Labour peer Lord Liddle, who introduced the report, said he felt “a little guilty” that it “didn’t directly address the triple lock question”.
Lord Liddle also issued a stark warning about the UK's preparations for an ageing population.
“The lack of any published strategy on ageing is a worrying indication that the Government would prefer not to face up to these challenges as an immediate question, and that the UK is therefore woefully unprepared for the future,” he said.
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Government confirms triple lock will remain for now
Despite the growing criticism, the Government has no immediate plans to scrap the triple lock.
Responding to the debate, Treasury minister Lord Pitt-Watson said the triple lock was part of Labour’s manifesto promises and “till the end of this Parliament, the triple lock remains”.
That means the system is set to continue for now, despite growing calls from senior figures for a rethink.
For pensioners, however, the debate could prove significant in the years ahead as ministers face growing pressure over the cost of supporting an ageing population.
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