Policy thoughts ahead of Labour Conference 2026

Commenting ahead of today’s Labour Conference Prime Minister speech, Calum Cooper, Head of Pensions Policy Innovation, Hymans Robertson, says

“A month ahead of the budget, and with rumours swirling that triple lock will be a focal point of the Labour conference speech today, it is clear that triple lock and the state pension age remain a key consideration for the government. The most important question is not, however, what happens this year, but what the long-term destination should be. The triple lock has played an important role in rebuilding the value of the State Pension and improving pensioner security. We should be clear about when that job is done, rather than withdrawing support too soon. The real debate is therefore not whether the triple lock should last forever. It cannot. It is when we can be confident that pension adequacy has been achieved, and what should come next.

“While at first glance this seems to be clear fiscal decision, the perception and reality are misleading. Currently state pension provides around 90% of the Pensions UK minimum retirement standards needed for the bare minimum of what is deemed a good retirement, with financial independence and dignity at its core – and is expected to rise to near 100% within a decade. The perception of wealthy pensioners misses the vast swathes of pensioner poverty existing in the UK today. Pensions are built on the foundations of a social contract where each generation should expect to be no worse off than previous generations. People should expect to receive their State Pension for no less time than their parents or grandparents and this is currently for about a third of their life. The goal should be ensuring the State Pension provides an adequate foundation for retirement. Once that objective has been achieved, the case for a permanent triple ratchet falls away.

“But reform is ultimately a question of when, not if. If one part of the economy is expected to grow faster than the economy supporting it, eventually it risks becoming the economy. That is what is happening with the State Pension and that is clearly not sustainable in the long run. Alongside National Insurance contributions, ring-fenced funding could come from pensions tax reform without impacting people’s retirement incomes. If funded in a balanced long-term way, this would both improve the UK’s demographic resilience and boost UK investment, which is desperately needed. 

“Today’s speech, and subsequent timeline, is a chance to make changes in sustained planned manner providing hope for a future generation but also certainty for the current generation of pensioners, and those who are within touching line of this.”

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