State pension triple lock to be scrapped in 2030 to fund new social care service

Prime Minister Andy Burnham has announced that Labour will end the state pension triple lock in April 2030, using the money to fund a new free social care service.

Prime Minister Andy Burnham has announced that, in April 2030, the state pension triple lock will be replaced by a double lock to help pay for a new free social care service.

Burnham said he would honour Labour's 2024 manifesto pledge to maintain the triple lock throughout the rest of this parliament. If Labour secures a second term, though, he indicated that the commitment could be "adjusted."

"I won't pretend this will all be easy. I know I may pay a political price, but someone has to push through the pain and tear off the plaster," he said in his speech at the Labour Party conference.

From April 2030 - the first tax year after the next general election - Burnham said the state pension "will continue to rise every year, at least by prices, or 2.5%."

If Labour won the election and changed the policy, the triple lock would effectively become a double lock: the state pension would still rise with inflation, but no longer be tied directly to annual average earnings.

Burnham said the state pension would retain its value against earnings over time, ensuring that pensioners continued to share in the nation's growing prosperity.

Kate Smith, Aegon's head of pensions, suggested that the connection with earnings over time "could possibly involve an element of smoothing of earnings increases over a few years relative to the increases in prices and the 2.5% increase." She added that the practical details remain unclear.

Smith welcomed the change to the triple lock and said the country now needed "serious conversation about how the state pension can remain affordable, sustainable, and fair across generations."

She added: "Pensioners will see no immediate change. The government has repeated its commitment to keeping the triple lock until 2029, meaning the state pension will remain the main source of retirement income for millions of people."

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said the government's decision to replace the triple lock with the double lock should be accompanied by a stable tax system for savers. She also called for a five-year tax roadmap covering issues that shape retirement planning, including tax-free cash and pensions tax relief.

Removing the triple lock would help pay for a new social care system

Burnham said ending the triple lock in its current form would "generate significant savings." If voters give Labour a second term in office, those savings will fund a new national care service.

The proposed service would offer free, universal social care for older people, following NHS principles. Labour plans to make it central to its manifesto for the next general election.

Burnham described the plan as "a landmark policy," saying it matched the creation of the NHS in significance and was essential to protecting its future. He said preparations for the National Care Service would begin immediately, with its introduction planned for the next Parliament.

He added: "Here's what we're offering: a state pension that increases each year, no care charges, and a high-quality national care service so people can feel secure in later life. Conference, I will argue for a fair deal for pensioners and older people in the 21st century."

Residential adult social care costs an average of 54,000 a year

A free, universal system could spare families hundreds of thousands of pounds in residential care costs, on average.

In England, residential adult social care averages more than 54,000 a year, while nursing care exceeds 71,000, according to a 2025 Laing Buisson report.

New figures from the investment platform AJ Bell suggest that providing care for a loved one over 20 years can cost 1 million in lost salary and pension wealth.

Sarah Coles, head of personal finance at AJ Bell, said that people usually focus on the eye-watering price of formal care. Yet in 2023/24, an estimated 5.4 million people provided informal care, and those responsibilities may be costing them dearly too.