Andy Burnham has faced calls to reduce the state pension rise by £16 a month for pensioners receiving the basic state pension. The Labour Party prime minister has been urged to reconsider the triple lock mechanism to generate funds for his proposed social care plan.
The triple lock guarantees that the basic state pension for those born before 1951 (men) and 1953 (women) increases by at least 2.5% each year. This would result in a £4 weekly rise, equivalent to about £16 monthly.
Stephen Millard, deputy director for macroeconomics at the National Institute of Economic and Social Research (NIESR), warned that “the triple lock on pensions is very, very expensive, and its cost will increase as the population ages.”
NIESR’s latest forecast indicated that the UK’s gross domestic product (GDP) is expected to grow at an annual rate of 1.1% in 2026, up from a previous estimate of 0.9% in April.
“The UK economy showed surprising resilience in the first half of this year, but a slowdown is expected. Even if peace returns quickly in the Middle East, inflation is still likely to rise, meaning the new Chancellor will face difficult decisions,” Millard added.
Following the unveiling of his social care plan, Mr Burnham was advised that while cross-party involvement is important, other parties should have a voice but not a veto over social care reforms.
The Fabian Society, a Labour-affiliated thinktank, echoed this sentiment through its research manager Ben Cooper: “The prime minister is right to urge the Casey Commission to expedite its review. It is unacceptable for improvements in affordability, accessibility, and quality of care to be delayed until 2028.
“While cross-party consensus is desirable, other political parties should not be allowed to block change. Labour holds a mandate to deliver a National Care Service, and the government should use its powers to begin addressing social care challenges, ensuring everyone has access to the care and support they need to live well.”
Stuart Andrew, Shadow Health Secretary, also issued a statement following cross-party talks with Mr Burnham on social care. He said: “We welcome the recognition across parties of the issues facing the social care sector. However, fixing the system requires a credible, properly funded plan. So far, the government has only provided broad outlines.
“The Conservatives are willing to collaborate with Labour on serious social care reform proposals. But Mr Burnham must provide detailed plans and a commitment not to raise taxes or increase borrowing to fund the changes.
“At today’s discussions, I emphasised the need for efficient use of public funds to secure a sustainable future for social care.”