The State Pension and the triple lock
The nutshell
The State Pension is a regular payment from the government to people who have reached State Pension age. The triple lock is a rule for how much the State Pension goes up each year. It rises by the highest of three things: how fast average pay is rising, how fast prices are rising, or 2.5%.
Every fact on this page comes from official pension rules and non-partisan explainers. Each source tag — like HoC — opens where a fact comes from.
The basics
What the State Pension is
The State Pension is a regular payment from the government. It goes to people who have reached State Pension age. National Insurance is a tax paid out of wages while working. To get any new State Pension, at least 10 years of National Insurance are normally needed, and 35 years for the full amount.GOV
What the triple lock is
The triple lock is a rule for how much the State Pension goes up each year. Every April the State Pension rises by the highest of three things: how fast average pay is rising, how fast prices are rising, or 2.5%. The House of Commons Library says the rule started in 2011.HoC
Why each part is there
The price part keeps the State Pension in step with the cost of living. The pay part lets the State Pension rise with wages when pay grows faster than prices. The 2.5% part keeps the State Pension rising even in a year when both pay and prices rise by less. Full Fact sets out these three measures.FF
Why the triple lock is talked about
Taking the highest of the three measures each year adds up over time. The Institute for Fiscal Studies says this makes the State Pension climb faster than pay or prices alone, and makes the future cost hard to predict.IFS
- The triple lock is designed to keep the State Pension in step with the cost of living, so what it can buy does not fall when prices rise
- When pay grows faster than prices, the earnings part lets the State Pension rise with wages
- The 2.5% floor keeps the State Pension rising even in a year when both pay and prices rise by less
- Because the highest of the three measures is used every year, the State Pension can rise faster over time than pay or prices alone. The Institute for Fiscal Studies calls this a ratchet
- The Institute for Fiscal Studies says the triple lock makes the future cost of the State Pension hard to predict
- The State Pension is funded from National Insurance paid by people working now, not from a savings pot built up in advance
The deep end6 min
How the yearly rise is worked out
Each year the basic State Pension and the new State Pension are uprated by the triple lock. The House of Commons Library describes the triple lock as raising the State Pension by the highest of the growth in average earnings, the rate of price inflation, or 2.5%.HoC The earnings figure and the inflation figure are each measured in a set month, and the chosen rise is applied from the following April.
Where it came from, and a pause
The House of Commons Library records that the triple lock was introduced by the coalition government and first applied from 2011. It has been used every year since, apart from one year after the Covid pandemic, when the earnings measure was set aside for a year because pay figures had been distorted.HoC
What each measure protects
Full Fact sets out the three measures: average earnings, inflation, or 2.5%, whichever is highest.FF The price measure is meant to protect what the State Pension can buy when the cost of living rises. The earnings measure is meant to let pensioners share in pay rises. The 2.5% floor is meant to keep the State Pension rising when both pay and prices are low.
The debate about cost
Because the highest of the three measures is used every year, the State Pension can rise faster over time than pay or prices alone. The Institute for Fiscal Studies calls this a ratchet, and says it makes the future cost of the State Pension hard to predict.IFS Whether to keep the triple lock, change it, or replace it is a question different parties answer in different ways. The topics below set out how the welfare state is paid for.