Labour confirms plans for Triple Lock, State Pension and 'mandatory' retirement age

Labour has confirmed its plans for the Triple Lock and state pensions from the Department for Work and Pensions (DWP). The Labour Party is now in power after Chancellor Rachel Reeves delivered her first speech in the role today (Monday July 8).

Sir Keir Starmer won the General Election last Thursday. Ms Reeves said: "We will work closely with our national, regional and local leaders to power growth in every part of Britain. And we will turn our attention to the pensions system, to drive investment in homegrown businesses and deliver greater returns to pension savers.

"I know the voters’ trust cannot be repaid through slogans or gimmicks – only through action, only through delivery. The Treasury I lead is proceeding on that basis." Below are all the plans the Labour Party has for pensions, the Triple Lock and beyond:

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Triple Lock

Pensioners will continue to get meaningful increases to their income as Labour promised to keep the state pension ‘triple-lock’, which guarantees the benefit rises each year by the highest of average earnings growth, inflation or 2.5 per cent.

It means that retirees could see a state pension worth almost £13,250 by 2030. Based on current forecasts it means the full new state pension is set to hit almost £12,000 next year – not far off the current tax-free Personal Allowance.

State pension age

There are also concerns about the state pension more broadly. The state pension age is currently 66, but will rise to 67 in 2028, and is scheduled to hike to 68 in 2046 – though the new government may choose to accelerate the timetable.

Earlier this year, the International Longevity Centre (ILC) claimed the state pension age needs to rise to 71 by 2050 to remain affordable. Labour made no mention of “pension pot for life” in its manifesto, but it will inevitably form part of its pension landscape review.

Even if Starmer gives “pension pot for life” the green light, it may take several years before the existing workplace regime is overhauled and replaced.

Pensions review

The Lavbour manifesto explains: "Labour will also act to increase investment from pensionfunds in UK markets. We will adopt reforms to ensure that workplace pension schemes take advantage ofconsolidation and scale, to deliver better returns for UK savers and greater productive investment for UK PLC.

"We will also undertake a review of the pensions landscape to consider what further steps are needed to improve pension outcomes and increase investment in UK markets."

Mandatory retirement age in Lords

The manifesto says: "Although Labour recognises the good work of many peers who scrutinise the government and improve the quality of legislation passed in Parliament, reform is long overdue and essential. Too many peers do not play a proper role in our democracy.

"Hereditary peers remain indefensible. And because appointments are for life, the second chamber of Parliament has become too big."