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Sky News: What options does Burnham have to handle state pensions?

Journalist: Jess Sharp, Sky News

ended 30. June 2026

Hello

It's looking at what reform options Andy Burnham might have to deal with the state pension bill, other than ending the triple lock, for a piece in the Sky News Money blog. 

Could he raise the retirement age or follow in Germany's footsteps in setting up a state fund invested directly into capital markets to cover rising pension costs? Could he make changes to pension tax relief? 

I want to hear from pension experts about what reforms he could actually make if he becomes prime minister.

Let me know what you think

Many thanks

Jess 

2 responses from the Newspage community

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Editor
Nouran Moustafa
Practice Principal & IFA at Roxton Wealth
The state pension debate is framed as a fight over the triple lock, but that is too narrow. The real question is whether Britain can fund an ageing population from today’s taxes while younger workers carry more of the bill.

A future government could raise State Pension age, but not lazily. A blanket rise ignores the difference between someone behind a desk and someone whose body is worn out at 64. Any change should reflect healthy life expectancy, job type and retraining.

A UK long-term state investment fund deserves serious consideration. Run independently and transparently, it could invest national wealth in global markets and create another source of pension funding. It is not magic, but neither is pretending tax receipts will stretch forever.

The worst option is raiding pension tax relief. That punishes people doing exactly what government says it wants: saving for retirement. Reform should reward work, saving and long-term thinking, not make private provision less attractive.
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Editor
Antonia Medlicott
Founder & MD at Investing Insiders
Andy Burnham faces a major challenge when it comes to the state pension, as it is fairly clear its current form is unsustainable; it will always outperform wage growth due to the triple lock, increasing life expectancies, but fewer people being born.
He has publicly committed to keeping the triple lock, but he may consider means-testing the state pension, limiting the amount wealthier people receive, or excluding them from it altogether; after all, he has spoken about taxing the wealthiest more, whether that’s through pay or assets. However, this would cause uproar in many areas of society.
Burnham may consider protecting the triple lock and still controlling the cost to the treasury by freezing allowances for pensioners. Rumours suggest the state pension will be automatically taxed when it surpasses the personal allowance, which will cause anger, but could be the sweet spot he needs to find a solution that repairs public finances without taking away too many benefits from pensioners.