British government considers ending state pension triple lock, projecting £19bn yearly savings

The Intergenerational Foundation has urged UK ministers to scrap the state pension triple lock, a guarantee that pensions rise by the highest of inflation, average wage growth or 2.5 %. The think‑tank estimates the change could save the Treasury about £19 billion a year by the mid‑2030s, rising to £38 billion by 2045. It proposes linking pension increases solely to inflation until 2030‑31, then to a blend of inflation and wage growth, and suggests diverting some of the savings into a £30‑a‑week supplement for Pension Credit recipients, costing roughly £1.9 billion by 2035.

At the same time, the Pensions Commission has warned that around 15 million Britons are likely to face a severe shortfall in retirement savings. It calls for a new national settlement to address the looming pension gap affecting large segments of the population.