The Intergenerational Foundation criticises the UK’s welfare system for disproportionately favouring pensioners while placing an unfair strain on younger people.
DWP told to scrap ‘unsustainable’ state pension triple lock and replace it
The Department for Work and Pensions (DWP) is facing increasing pressure to overhaul the state pension triple lock, amid growing concerns about its long-term financial burden on future generations of taxpayers.
A new analysis from the Intergenerational Foundation criticises the UK’s welfare system for disproportionately favouring pensioners while placing an unfair strain on younger people. The think tank argues that the current approach prioritises older citizens at the expense of intergenerational equity.
The triple lock policy guarantees that the state pension increases each year by the highest of three measures: inflation, average wage growth, or 2.5%. While intended to protect pensioners’ incomes, the mechanism has come under fire for being financially unsustainable in the long run.
READ MORE ASOS bans thousands of customers ‘with immediate effect’ and deletes accounts
According to projections published by the DWP in April, total state pension spending for the 2024–25 fiscal year is expected to reach £137 billion.
n its “A growing divide: Two generations of intergenerational unfairness” report, the Intergenerational Foundation compared Government spending on pensioners to younger Britons.
Economists from the think tank stated: “The impact of the triple lock is evident in the substantial rise in the state pension rates The triple lock is neither fiscally sustainable nor intergenerationally fair.
“Without reform, the triple lock will place an unsustainable strain on public finances, while reinforcing a system that prioritises pensioners at the expense of younger generations.
“A more balanced, fair, and sustainable approach to pension uprating is urgently needed to ensure that future taxpayers are not left shouldering an increasingly disproportionate financial burden.”
The Foundation stated: “Replace the triple lock with a fairer uprating mechanism and gradually apply income and asset tests to better target support – ensuring fiscal sustainability and fairness across generations.
“Abolish a policy that deepens child poverty and disproportionately harms young families already facing high living costs.”
It adds: “Equalise Universal Credit rates for under-25s, extend full Local Housing Allowance to younger renters, and reverse plans to raise the eligibility age for disability benefits. Welfare benefits should be based on need, not age.”