Tory leader hints at a review of the State Pension triple lock

03 February 2025

Kemi Badenoch, the Conservative leader, has suggested her party may consider means-testing the State Pension triple-lock, a policy guaranteeing annual increases by the highest of inflation, earnings growth, or 2.5%. 

During an LBC phone-in, Badenoch was asked whether she would look at the triple-lock. She responded: “We’re going to look at means-testing. Means-testing is something which we don’t do properly here.”

However, she also criticised the Labour government’s move to means-test the winter fuel payment, stating that “people who are actually on the breadline have had their winter fuel payment taken away”.

Shadow Chancellor Mel Stride also weighed in on the triple-lock debate last December, calling it "unsustainable". Speaking in the Commons, he pointed out that, in the "very, very long term," the rising cost of the State Pension is simply a "mathematical reality."

Badenoch’s remarks sparked criticism from Labour, who accused her of "putting pensioners on notice," highlighting their own commitment to a £470 State Pension increase next April. Liberal Democrat Daisy Cooper also condemned the comments, vowing to oppose any weakening of the triple lock.

Badenoch’s comments came after her first keynote speech earlier in the day, where she warned the UK is "getting poorer". Whether her comments signal concrete changes to the triple lock or broader fiscal reform remains uncertain.

Isle of Man announces triple lock replacement for pensioners

The suggestion from the Tories comes as the Isle of Man announces its own changes to State Pension policy. According to FT Adviser, the island plans to replace its triple lock with a new system called the ‘Manx Pension Guarantee,’ subject to approval by its parliament, the Tynwald.

Under this proposed system, the Manx State Pension would rise annually by either inflation or 2 per cent, whichever is higher. This change is designed to preserve the sustainability of the island’s national insurance fund, which is projected to run out in 20 years without intervention. 

Notably, the majority of Manx pensioners who retired before April 2019, will remain unaffected, as their pensions will continue to follow the UK’s triple lock policy. However, for those under the newer system, this approach offers more certainty about future rises while protecting the fund for younger generations.

SNP reconsiders triple lock pension promise in independence plans

The Isle of Man’s decision raises questions about whether similar changes might be considered in the UK, particularly as funding pressures on the State Pension grow. 

In Scotland, for example, The Scottish National Party (SNP) is reportedly reconsidering its commitment to maintaining the triple lock if Scotland were to become independent. 

Previously, the SNP had pledged to uphold the triple lock. However, according to the Express, discussions have now emerged about whether this policy will be financially feasible in an independent Scotland, with concerns over how pensions would be funded.

The UK Treasury has warned that pensions are funded by the working population’s taxes, implying that an independent Scotland would need to ensure its own pension funding system.

Sources

Kemi Badenoch comments: Tories will consider means-testing pension triple-lock, Badenoch says. ITVX. Accessed 03 February 2025.

Isle of Man plans to replace its triple lock with a new system called the Manx Pension Guarantee: Isle of Man to ditch pension triple lock. FT Adviser. Accessed 03 February 2025.

The SNP is reconsidering its commitment to maintaining the triple lock: Fury erupts as SNP rolls back on triple lock pensions promise under new 'Scexit' plans. The Express. Accessed 03 February 2025.