BCC Urges Burnham to Scrap Pension Triple Lock to Save £3 Billion
Updated
Updated · The Independent · Sep 7
BCC Urges Burnham to Scrap Pension Triple Lock to Save £3 Billion
3 articles · Updated · The Independent · Sep 7
Summary
More than £3 billion could be saved over two years if the state pension triple lock is replaced with CPI-only uprating, the British Chambers of Commerce told Andy Burnham ahead of his first budget.
The group wants those savings redirected to a pro-growth package, especially cutting employer National Insurance costs for under-25s to lower entry-level hiring costs and boost youth employment.
A roughly 4% wage-linked increase would otherwise lift the full annual state pension by about £504 in April 2027, from £12,547.60 to about £13,052, with the final uprating figure due in September.
State pension spending was forecast at £146.1 billion in 2025/26 and is projected to approach 9% of GDP by 2075, up from about 5% now, underpinning the BCC's case that the current formula is fiscally unsustainable.
The BCC paired the pension proposal with wider demands to cut business rates and energy costs, support SME exports and skills, arguing higher taxes on firms would damage confidence and growth.