Triple Lock

The Triple Lock is a UK government policy that determines how the state pension increases each year. It guarantees that pension rises annually by the highest of three measures: inflation (the rise in prices), average earnings growth (wages), or a minimum of 2.5%. This ensures pensioners receive an increase that reflects economic conditions, protecting their income from inflation and maintaining their standard of living. The policy balances fairness between taxpayers and pensioners by preventing pension increases from falling below a certain level while still aligning with economic growth.