State pension payments could freeze in triple lock overhaul, says expert

State pension payments could be frozen in a major triple lock shake-up posed by an expert who believes the current system is not sustainable. Claire Trott, head of advice at St. James's Place, warned that the long-term viability of the triple lock remains an issue.

She said a solution could be to freeze the state pension and enhance access to Pension Credit, the most under-claimed means-tested benefit administered by the Department for Work and Pensions (DWP). An alternative approach could be to raise the state pension age, which she described as the "most viable and publicly palatable option". Currently, the triple lock means the state pension increases annually by either the rate of inflation, average wage growth or 2.5% - whichever is highest. It's projected to cost £15.5 billion annually by 2030, according to the Office for Budget Responsibility (OBR). This is a significant increase from initial estimates and represents a substantial cost to public finances.

The state pension age is scheduled to begin increasing from age 66 to 67 next year, with the transition expected to be completed for all men and women across the UK by 2028.

The proposed modification to the official retirement age has been enshrined in legislation since 2014 with a subsequent State Pension age increase from 67 to 68 planned for implementation between 2044 and 2046.

Those born on April 6, 1960 will reach the State Pension age of 66 on May 6, 2026, while those born on March 5, 1961 will reach the State Pension age of 67 on February 5, 2028.

Ms Trott added: "Means-testing is often raised as a solution, but in practice it's unlikely to be pursued, given the cost and complexity of implementation outweighs the savings.

"There are other options such as freezing the state pension and increasing access to Pension Credit which might be a more pragmatic route - it's already in place and better targeted to those who need help most.

"Raising the state pension age has been controversial in the past, but it's arguably the most viable and publicly palatable option in the longer term, as people continue to live and work for longer."