UK Prime Minister Andy Burnham on Tuesday unveiled contentious plans to reform Britain's state pensions system from 2030, a politically perilous move likely to spark intense pushback.

In a keynote speech at his ruling Labour party's annual conference, Burnham vowed to end the so-called "triple lock" guarantee to help fund a "landmark" new national care service.

The current guarantee sees the annual pension increase by the amount whichever is highest of average earnings growth, inflation or 2.5 percent.

The policy was introduced by the Conservative-Liberal Democrats coalition government in 2011 and has survived multiple mooted attempts at reforming it.

Burnham, who replaced Keir Starmer in July, said from April 2030 the state pension will instead rise each year by the higher of either inflation or 2.5 percent, removing the link to earnings.

The pension "will hold its value relative to earnings over time so that pensioners will always share in the rising prosperity of the nation," he insisted.

"But this change will generate significant savings, which we will use to build up ... our national care service," the UK leader added.

Arguing it will be as significant as the creation of the cherished National Health Service (NHS) in 1948, Labour will introduce the planned care service if it wins the next general election, due in 2029.

It will be free to use and a "person-centred, high-quality care service that starts in the home," Burnham outlined, adding it was aimed at easing pressure on the NHS from those needing permanent long-term care in later life.

Both the care policy and the pensions reform – effectively creating a "double lock" guarantee – are politically fraught, and deliberately delayed until after the next election.

Centre-left Labour's manifesto at the last 2024 election, which Burnham has pledged to honour, vowed to leave the current pension system unchanged.

Previous prime ministers have tried to change the costly "triple lock", which is projected to balloon in cost as the proportion of retirees continues to swell, but U-turned in the face of sustained opposition.

Former Conservative prime minister Theresa May vowed to remove the 2.5 percent baseline guarantee in her party's 2017 general election manifesto but backed away from the plans after losing her majority in the vote.

Burnham's policy announcement was set to face similar pushback, with Sharon Graham, general secretary of the Unite union, which is officially affiliated with Labour, promptly reiterating her criticism of it.

She said "pulling a lever" on the pension triple lock was wrong and "going to the well of pensioners before going for the super-rich is wrong." (AFP)



Edited by Robert Kemp