Key facts
- From April 2030, the basic and new state pensions will increase by the highest of inflation, 2.5%, or the amount needed to maintain the state pension's value relative to earnings.
- Current pensioners will continue to receive their triple lock pension until April 2030 and will then receive the adjusted state pension.
- The adjusted triple lock aims to make the state pension sustainable and protect today's workers when they become pensioners.
- The reforms are projected to result in savings relative to the current triple lock mechanism.
The UK government has announced changes to the state pension's triple lock mechanism, set to take effect from April 2030. The current triple lock ensures the State Pension increases annually by the highest of inflation (CPI), 2.5%, or average earnings growth. This system has been in place throughout the current parliament, with commitments to maintain it.
From April 2030, the adjusted triple lock will see the basic State Pension and the full rate of the new State Pension increase each year by the highest of inflation, 2.5%, or the amount required to return or maintain the value of the State Pension relative to earnings. This adjustment means the State Pension is set to rise in line with average earnings over time, rather than consistently growing faster than wages.
According to government analysis, these reforms are intended to ensure the sustainability of the State Pension, protecting both current pensioners and future generations of workers. Pensioners currently receiving the State Pension will continue to benefit from the existing triple lock until April 2030, after which they will receive the adjusted State Pension. The adjusted system will still guarantee an annual rise that protects against inflation and ensures pensioners benefit from economic growth.