The triple lock is a safeguard that applies to the UK state pension to ensure it doesnt lose value because of inflation. It was introduced by the Conservative-Liberal Democrat coalition government in 2010 to ensure the value of the state pension was not overtaken by the increase in the cost of living or the working populations income. The triple lock system increases the state pension each April in line with whichever of these three measures is highest: inflation, as measured by the Consumer Prices Index in the September of the previous year, the average increase in wages across the UK, or 2.5% . The three-way guarantee means that each year, the state pension would increase by the highest of the following three measures:
- Average earnings
- Inflation as measured by the Consumer Price Index (CPI)
- 2.5%
If neither average earnings nor inflation rises by over 2.5%, the state pension will still grow by this amount. The triple lock applies to both the basic state pension (pre-April 2016) and the new state pension (post-April 2016) to ensure that they keep pace with the cost of living. The current Conservative government has pledged to keep the triple lock in place until at least 2024, and opposition parties, including Labour, also support the policy. The triple lock helps ensure that people have enough to get by in retirement and preserves the value of the state pension, reducing the amount of private savings needed to top up someone’s retirement income.
