Key facts
- Lord Walker, Iceland boss and Labour peer, advocates for scrapping the triple lock pension.
- He described the policy as "mathematically unsustainable, politically untouchable and profoundly unfair."
- The triple lock guarantees state pension increases by the highest of average earnings, inflation, or 2.5%.
- Walker's remarks echo concerns from the Resolution Foundation about the system's cost.
- The Resolution Foundation suggested a "smoothed earnings link" as a more sustainable approach.
Lord Walker, the influential boss of Iceland and a Labour peer, has called for the abolition of the UK's triple lock pension system, deeming it "mathematically unsustainable, politically untouchable and profoundly unfair."
Speaking in the House of Lords during a debate on welfare reform, Walker argued that the current mechanism, which ensures state pensions rise by the highest of average earnings, inflation, or 2.5% annually, is leading to spiralling costs and is disproportionately beneficial to pensioners compared to workers.
His comments align with recent criticisms from the Resolution Foundation, a think tank formerly led by Treasury minister Torsten Bell. The foundation reported that the state pension is costing billions more than it would under a "smoothed earnings link" proposal, which would tie pension increases more closely to earnings growth over time, thus being more sustainable for public finances.
Walker, who also serves as the government's "cost of living champion," urged politicians to have the courage to challenge the policy, which was introduced 16 years ago by former chancellor George Osborne to combat pensioner poverty. He suggested that the stereotype of who constitutes the biggest drain on the benefits system should be challenged.
Similar sentiments have been voiced by other prominent political figures, including former prime minister Tony Blair and Chancellor Jeremy Hunt, who has described the triple lock as "immoral" and a "drag anchor on economic growth" due to its financial burden.
Alternative proposals have also been put forward by other organisations, such as the Centre for British Progress, which suggested linking pension increases to a 10-year average of wage growth or the previous year's inflation.