Kemi Badenoch has stated her commitment to maintaining the pension triple lock indefinitely, creating a potential electoral divide with the Labour Party. The Conservative leader dismissed speculation about abandoning the mechanism, which has preserved the value of the basic state pension for years. In an interview with the BBC, Badenoch affirmed, 'That is what we have promised. There is nothing that has happened that has made me change my mind.'
This statement follows new analysis indicating that Labour's plan to eliminate the current triple lock could result in some workers losing up to £38,000 in retirement. Last week, Prime Minister Rishi Sunak announced that Labour intends to scrap the existing system by 2030, despite a previous manifesto commitment to uphold it. Legislation to abolish the scheme could be introduced as early as next year.
Andy Burnham, a prominent Labour figure, suggested that the move could help finance his proposal for an NHS-style National Care Service for social care, potentially saving £15 billion annually by 2040—funds that would otherwise be allocated to pensioners. However, Badenoch criticized the Prime Minister for not demonstrating how early savings could support the new social care system planned for 2030.
During interviews at the Conservative Party conference in Birmingham, Badenoch also hinted at plans to abolish inheritance tax, labeling it 'morally wrong.' She proposed eliminating the £100,000 earnings threshold for free childcare, which currently penalizes families when one member earns above that amount.
Some senior Conservatives, including former Chancellor Jeremy Hunt and Shadow Communities Secretary Katie Lam, have raised concerns about the long-term viability of the triple lock. In response, Badenoch emphasized that welfare reform should focus on increasing employment rather than targeting pensioners.
She stated, 'What is going wrong in our economy is not lots of elderly people earning £10,000, £12,000 a year on the state pension; it is the huge number of people who can work who don’t work.' Badenoch argued that the discussion surrounding the triple lock is merely a budgetary issue, while more significant economic challenges remain unaddressed.
The analysis from the Sunday Times highlighted that younger workers would be disproportionately affected by Labour's proposed changes to the triple lock. Generation X workers (born 1965-1980) could lose between £16,800 and £23,170 over a 20-year retirement, while Millennials (born 1981-1996) might face an average loss of £28,140, and Generation Z (born 1997-2012) could be worse off by £38,400.
The triple lock, established in 2011, ensures that the state pension increases by the highest of inflation, earnings, or 2.5 percent. Under Labour's new plan, the direct link to earnings would be removed, resulting in pension increases based solely on inflation or 2.5 percent. Although ministers claim that older individuals will still see their pensions protected, the changes are expected to slow the growth of state pensions, impacting younger workers the most.