The Department for Work and Pensions (DWP) has been urged to introduce means-testing for the state pension for baby boomers, the demographic cohort born between 1946 and 1964 following World War II. The call comes amid growing concerns over the affordability of the Triple Lock pledge, which guarantees the state pension increases by the highest of inflation, average earnings growth, or 2.5 percent.
Triple Lock Under Scrutiny
The Sir Tony Blair Institute (TBI) has called on the Labour government to reconsider its commitment to maintaining the Triple Lock for the remainder of this Parliament. The policy recently handed state pensioners a £575 increase in April, but critics argue it is becoming unsustainable. Rob White, writing for The Telegraph, stated: "Boomers are more entitled than Gen Z – it's time to means-test their state pension." He added that older generations "conveniently forget they hold more than half the nation's housing wealth."
Expert Reactions
Jonathan Cribb, deputy director and head of retirement, savings and ageing at the Institute for Fiscal Studies, responded to the TBI's warning by highlighting the complexities of means-testing. He said: "Any increase in flexibility here needs to be balanced against the increasing complexity of the system – and indeed this move would be in the opposite direction to reforms that have simplified the state pension system in recent decades."
White further argued that "it's crystal clear that something must be done about the cost" and that "the only remaining answer is means-testing."
DWP Response
A DWP spokesperson defended the government's position, stating: "Supporting pensioners is a priority and our commitment to the triple lock for the rest of this Parliament means millions of pensioners will see their yearly state pension rise by up to £2,100." They added that the Pensions Commission is examining how to ensure secure retirements for future pensioners, and that options such as universal credit and other means-tested and disability-related benefits are available for those who need extra support before reaching state pension age.
