Labour MPs are privately debating whether the state pension triple lock "needs to be looked at" as the Government struggles to balance the books.
Under the triple lock, state pension payment rates rise every year by either the rate of inflation, average wages or 2.5 per cent; whichever is highest.
It is understood that Labour MPs are floating reform to the payment increase mechanism to avoid offering handouts to "rich pensioners", The i Paper reports.
These comments have surfaced after Lord Jim O'Neill, a former Treasury minister and adviser to Chancellor Rachel Reeves, has branded the pension triple lock as "bonkers" and urged her to scrap it.
Labour MPs are privately discussing whether the state pension triple lock "needs to be looked at"
GETTY
Chancellor Rachel Reeves is searching for ways to cut spending to grow the UK economy and avoid breaching her strict fiscal rules.
She also needs to raise funds to cover increased defence spending as US President Donald Trump pulls support for Ukraine.
Labour has already targeted pensioners by slashing the Winter Fuel Payment for 10 million people, saving the Government £1.5billion annually.
The freezing of the personal allowance until at least 2028 will force pensioners to pay income tax even if they fall below the minimum required standard of living.
Chancellor Rachel Reeves is looking for ways to cut spending
PASome Labour MPs are now suggesting the Government should target wealthier pensioners rather than cutting disability benefits, with £5billion in controversial cuts confirmed last week.
"Why should disabled people bear the brunt of the cuts?" one Labour MP told The i Paper. "The social security system should be there as a safety net for those who need it rather than propping up rich pensioners."
Another MP acknowledged: "We have got to stick to it in this Parliament but if we are in financial difficulties at the end then it has got to be in the mix."
The triple lock has become increasingly expensive since its introduction in 2011, when it was expected to cost around £50million annually.
Economic instability, including high inflation and earnings growth, has caused state pension values to surge, rising by 10.1 per cent in 2023 and 8.5 per cent in 2024.
Approximately half of the UK's benefits bill now goes to state pensions, costing £110.5billion between 2022 and 2023, with projections reaching £124 billion for 2023-2024.
The full new state pension currently stands at £221.20 per week (£11,502 annually).Under the triple lock, this will increase by 4.1 per cent in April to £230.30 weekly (£11,975 yearly).
Labour's Pensions Minister Torsten Bell has had to distance himself from previous remarks about the triple lock. In June 2020, while chief executive of the Resolution Foundation think-tank, Bell told MPs the triple lock was a "silly system."
LATEST DEVELOPMENTS:
The state pension will increase by 4.1 per cent next month
GETTYSince taking office, however, he has repeatedly dismissed suggestions of means testing. When asked earlier this month about reforming or abandoning the triple lock, Bell simply replied "no".
A Government spokesperson insisted: "Our commitment to the triple lock is unwavering because we want pensioners to enjoy the dignity and respect they deserve in retirement."
They added this means "millions will see their state pension rise by up to £1,900 over this parliament". Some Labour MPs are suggesting more nuanced approaches to pension reform.
"I guess the whole thing about pensions is that there are different types of pensioners, and the triple lock is really important for a very small but very important group of pensioners," one MP shared.
The same MP proposed a potential trade-off: "At the minute the Pension Credit band is too tight, it helps the absolutely very poorest. "They suggested expanding eligibility for pension credit while abandoning the triple lock.
"Personally, I think if you did a trade-off whereby you double the number of people eligible for pension credit and got rid of the triple lock; I could argue that is just."
