The UK’s state pension is going up again from April 2025, rising by 4.1%, which means the full new state pension will increase from £221.20 to £230.25 per week. That’s about £470 more per year for pensioners.
But with this rise, experts say a review of the triple lock system is now “inevitable”. This has raised concerns among pensioners and financial experts, as it could affect future pension payments and retirement security for millions across the UK.
What Is the Triple Lock?
The triple lock is a promise made by the government that the state pension will increase each year by the highest of three things:
- Average earnings growth
- Inflation (CPI)
- 2.5%
This system was introduced to protect pensioners’ income and ensure their pensions keep up with the cost of living. However, with rising costs to the government, many believe it may need to be reviewed.
Why a Review Is Expected Soon
Financial planner Thomas Lambert said fewer pensioners are now getting income-related benefits—only 20% in 2025, compared to 31% in 2010. This is mostly because both state and private pensions have grown, making fewer people eligible for extra support.
Lambert warns that as defined benefit pension schemes disappear and more people retire with less generous pensions, the income gap for future pensioners could grow. He believes this could trigger a review of how the triple lock works.
A Possible New Model for the Triple Lock
Lambert suggested one way to reform the system is to link pension increases more directly to earnings growth, with a backup plan that uses inflation (CPI) only when wages aren’t rising as fast. This could make the system more stable and better connected to the wider economy.
But any change must be handled carefully, he said, because the state pension is the largest area of government welfare spending and remains a lifeline for many pensioners, especially single ones.
Concerns Over Lack of Pension Reforms
Meanwhile, PensionBee’s Chief Business Officer Lisa Picardo expressed disappointment that the recent Spring Statement didn’t address pension reforms. She said millions of Britons are still not saving enough for retirement and that ignoring this issue could leave many people vulnerable in the future.
She also suggested a few quick steps the government could take, including:
- A 10-day pension transfer guarantee
- Expanding auto-enrolment to more workers
- Creating a universal tax relief rate to make saving fairer
Picardo stressed that these reforms are urgent and that the government shouldn’t delay action any further.
While the state pension increase is welcome news for current retirees, the growing pressure on public spending and changing pension trends suggest that the triple lock system may not stay the same forever.
Experts are calling for careful but firm action, not just promises, to help people prepare for retirement. Without proper reforms, future generations may find themselves struggling financially in their later years.
FAQ’s
What is the new state pension rate from April 2025?
From April 2025, the full new state pension will rise to £230.25 per week, an increase of 4.1% or £470 annually.
What is the triple lock system?
The triple lock guarantees that the state pension increases each year by the highest of average earnings growth, inflation, or 2.5%.
Why is a review of the triple lock now expected?
Rising costs and changing retirement patterns are putting pressure on public finances, making a review of the triple lock likely.
What pension reforms are being suggested?
Experts recommend introducing a 10-day pension transfer guarantee, expanding auto-enrolment, and applying a universal tax relief rate.
Did the Spring Statement include pension reforms?
No, experts criticised the Spring Statement for not including quick-win pension reforms, despite the growing need for action.
This is not enough to live on my wife is 57 and i am 67 and i have cancer and we live on my government pension of £1053 every 4 weeks. I cannot get benefits because i colapsed with cancer abroad and could not get back to the uk.
It is not my fault i could not get home as the doctors would not let me travel due to my condition.
So i have all these hurdles to negotiate and now poverty aswell. I worked and payed taxes for 50 years to suffer the injustice of the system which is ironic because our prime minister was the head of our justice system. Such hypocracy i give up.
I started work on my 15th birthday 22/8/1966 and never was out of work till I was made redundant October 2012 I receive £186 per week new S P the 4.1% rise has gone and I haven’t received it yet and all these young MPs who tell lies for a living should try working for a living like all the building workers do they are a joke.
But from our side it’s not funny.