The triple lock pension plus explained

Pensioned explained

You’ll probably have heard the term ‘triple lock pension’ but now we’re into the election campaign, the Conservatives have coined the phrase ‘triple lock pension plus.’ The triple lock guarantee has been in place since 2010 to ensure that pensions would not lose value in real terms.


What is the Triple Lock pension guarantee?

The triple lock pension guarantees that pensions will rise annually by the highest of:

Inflation (measured by the CPI index)

Average earnings and


In April, the state pension was increased by 8.5% from £203.85/week to £221.60/week which represented the annual rate of inflation from Sept 22 to Sept 23.

What’s meant by ‘Triple Lock Plus’?

Under the triple lock plus pension guarantee, UK pensioners would see their tax-free allowance rise each year in line with the state pension increase. At present a full annual state pension is worth £11,502 (or £221.60 per week) against the personal tax allowance of £12,570. While there is a planned freeze until 2028 on the personal allowance, pensions would also see their personal allowance rise also rise under the triple lock plus. With inflation widely expected to return to the Bank of England’s 2% target, it seems likely that the state pension will see a more modest increase in 2024/25 of 2.5%, bringing it to £11,790 while the personal allowance for pensioners would increase by 2.5% to £12890. This would allow pensioners to earn another £1,100 per year before paying any income tax.

This triple lock plus would not impact higher rate taxpayers as this band has been frozen at £50,270 until 2028.

At the time of writing (early June 24), no other political parties have matched this pledge to increase pensioners’ personal allowance in line with the state pension although they are committed to the standard triple lock pension.

What’s the ‘quadruple lock’ on pensions?

The quadruple lock is simply another name for the triple lock plus guarantee.

The impact to public spending of this policy

It’s estimated that the cost of this policy would be c. £2.4bn per year by 2030 as around 8 millions pensioners would be better off by around £275 a year. This would be funded through a crackdown on tax evasion and more efficient tax collection.

What happens to other pensions?

Any other pensions, such as a workplace, company or private pension will be unaffected by the triple lock pension or triple lock plus guarantees as this policy only applies to the state pension.

Do you have a workplace or private pension?

In addition to your state pension, if you are contributing to a workplace or private pension, you can take advantage of the tax relief on pension contributions to minimise your tax bill. When you pay £80 into a pension scheme, you’ll automatically get £20 for your basic rate tax relief. If you’re a higher or additional rate tax payer, you can claim the additional 20/25% tax relief via your self assessment tax return.

How Adams Accountancy supports your future financial wellbeing

Give us a call on 01322 250 001 or complete our online contact form today to talk about your retirement planning. The future is uncertain and we can’t rely just on the state to provide retirement income. The sooner you start to save into a pension pot, the faster it will grow to create a good income for when you stop working.