Andy Burnham, the newly appointed Prime Minister and Makerfield MP, is expected to announce plans to review the Department for Work and Pensions' state pension triple lock during his speech at the forthcoming Labour Party conference on Tuesday.
Mr Burnham, who took over leadership from Sir Keir Starmer this summer, expressed concerns that the current triple lock system is no longer effective in its existing form. Instead of immediately ending the policy, he intends to propose a comprehensive review of the triple lock within Labour’s 2029 manifesto.
The triple lock guarantees that the state pension rises each April by whichever is highest among average wage growth, inflation, or 2.5 per cent. Notably, the wage growth figure is calculated from average earnings over three months up to July.
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Recent data released by the Office for National Statistics (ONS) revealed a 3.9 per cent increase in wages during this period, which is likely to exceed the forthcoming inflation figure due to be published on Wednesday. The Treasury will confirm the definitive figure during the Budget on 28 October, though future revisions to the average wages growth data could affect the outcome.
Senior government insiders informed The Telegraph that while Mr Burnham is open to reviewing the triple lock, he is not currently committing to a complete abolition of the policy.
In addition to addressing pension matters, the Prime Minister will announce the creation of GB Grid, a new public entity designed to compete with private firms such as National Grid. This initiative will utilise funds previously earmarked for Great British Energy and marks a key step in fulfilling Mr Burnham’s promise to bring essential services under public control.
Speaking ahead of the conference, Mr Burnham stated: “We have a cost crisis. We all know it. The price of energy is crippling for businesses, and British billpayers pay some of the highest energy costs in Europe.”
He added, “We have an energy system where prices are dictated in markets miles away, while families and businesses here shoulder the costs. Once again, the British public has lost control.”
Looking ahead, the Prime Minister expressed his ambition: “Within 10 years, I want our energy costs to be in line with other nations in Europe. That means we must reform a broken energy market so it serves the public interest.”