Andy Burnham’s advisers may be lobbying for him to scrap the triple lock on state pensions – but this does not mean he will, at least for now.
The new MP for Makerfield, who is expected to succeed Keir Starmer as prime minister, has been consulting with economists who believe the generous state pensions policy should be axed, according to The Times.
They include Lord Jim O’Neill, the former Goldman Sachs economist, who said he was “trying to convince” Burnham that scrapping the lock could be positive for the bond markets and boost national finances.
The policy – which ensures the state pension rises automatically each year in line with whichever is highest of inflation, wage increases or 2.5 per cent – was introduced in 2010 to reduce pensioner poverty.
But high interest rates and wage growth over recent years have seen a series of bumper boosts, meaning the triple lock has cost around three times more than initial expectations, according to the Office for Budget Responsibility (OBR).
