Andy Burnham commits to Triple Lock and income tax protection for pensioners as state pension approaches personal allowance threshold
Andy Burnham, the Greater Manchester Mayor widely regarded as a frontrunner for the Labour leadership, has confirmed he would maintain the Triple Lock and support exempting pensioners from income tax as the state pension edges above the £12,570 personal allowance threshold.
The commitment applies to recipients of the new state pension — those being men born after 1951 and women born after 1953 — who stand to receive payments exceeding the personal allowance from the 2026/27 tax year onward.
State Pension Set to Breach Tax Threshold
The full new state pension currently stands at £230.25 per week, or £11,973 annually, for the 2025/26 tax year. Under the Triple Lock mechanism, payments will rise by 4.8% in 2026/27 — the earnings growth measure, which is the highest of the three qualifying indices this year.
That increase will bring the weekly payment to £241.30, or £12,548 annually — just below the frozen personal allowance of £12,570, and on course to breach it in subsequent years. As recently as 2022/23, the full pension stood at £185.15 per week, meaning it has risen by more than 30% in four years.
Burnham Warns Against Manifesto Deviation
Burnham argued that abandoning the Triple Lock or failing to adjust the tax threshold would be “very damaging” to Labour’s credibility, noting that the earlier decision to means-test winter fuel payments “still comes up on doorsteps a lot” in constituencies such as Makerfield.
His position aligns with that of Chancellor Rachel Reeves, who has indicated support for shielding pensioners from income tax liability as the benefit surpasses the frozen allowance.
Fiscal Concerns Mount
Not all analysts are convinced the commitment is sustainable. Martin Rayner, financial adviser at Compton Financial Services, cautioned that welfare spending already exceeds income tax revenues and continues to rise.
“At some point politicians have to decide whether they keep making promises or start dealing with reality,” Rayner said. “Scrapping it outright would be politically toxic, but moving to a link based on earnings or inflation over a longer timeframe is far more likely.”
Ed Monk of Fidelity noted the Triple Lock’s cumulative impact has been substantial, with the pension rising sharply in real terms over a short period — raising questions about long-run affordability as the policy intersects with a frozen tax base.
Government Defends the Policy
Work and Pensions Secretary Pat McFadden defended the Triple Lock increase, stating the government would “always protect our pensioners” and pointing to an uplift of up to £575 in the coming year. Pensions Minister Torsten Bell added that raising the state pension faster than prices was essential to delivering a retirement income people could rely on.
The debate over the Triple Lock’s future is likely to intensify as fiscal pressures mount and the pension edges ever closer to — and eventually past — the personal allowance, creating an automatic tax liability for millions of retirees unless the threshold is raised in tandem.