Andy Burnham is facing growing pressure to scrap the triple lock on state pensions, which economists say could help fix the parlous state of public finances.
The British Chamber of Commerce (BCC) has, for the first time, called on Chancellor John Healey to abandon the policy, which ensures the state pension rises each year by whichever is highest: inflation, wage growth or 2.5 per cent.
The BCC argued that ditching the triple lock and raising the state pension by inflation each year could save the Treasury £3.3bn over two years, which could help repair troubled public finances, with councils facing large debts and the care system on the brink of collapse.
‘No bailout’ for Jaguar Land Rover amid job cut reports
The Government is facing calls to “mitigate” thousands of job losses, but “challenging” business conditions mean manufacturers will continue to struggle.
JLR to cut as many as 4,000 jobs
Business Secretary Jonathan Reynolds will meet with the leadership team of Jaguar Land Rover (JLR) this week after it emerged that Britain’s largest car manufacturer is set to .
The cuts are largely expected to impact office roles, with the majority of job losses affecting its UK operations, where around 34,000 staff in total are based (compared to just under 10,000 overseas employees).
Aiming to save £1.7bn
- Job losses will be spread over the coming two years, JLR said, as part of efforts to save about £1.7bn.
- There will be a voluntary redundancy programme for salaried and management teams.
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The Government’s response
We understand that this will be an uncertain and concerning time for affected workers, their families and wider communities.
Reynolds said he will aim to “mitigate any job losses” in meetings with JLR leadership. However, when asked by the BBC on Sunday whether there could be financial support to protect jobs, the Business Secretary replied: “Not if it’s to bail people out.”
Hundreds protest Portsmouth ‘mega-dinghy’ – what we know
Hundreds of protesters clashed with police in Portsmouth after migrants from a “mega-dinghy” were brought ashore by lifeboats.
Here’s what we know.
What happened?
Protesters gather
Hundreds gathered in Portsmouth on Sunday night to protest the arrival of migrants from a small boat.
What sparked it?
Around 140 migrants were brought to shore in Hampshire after travelling to the UK on a single “mega-dinghy”.
What did they do?
Crowds tried to stop the migrants being taken to an asylum processing centre in Kent.
Investigation launched
- About 200 demonstrators who gathered were on Monday, police said.
- A handful of police offers were treated for injuries at the scene, Hampshire and Isle of Wight Constabulary said.
- Several police, coastguard and border force vehicles were also damaged.
- An investigation to identify offenders responsible for any officer assaults, criminal damage or other criminal offences has been launched.
‘Closest I’ve been to an insurrection’
Portsmouth resident Sue Dewey, who watched the scenes unfold from her balcony, said: “It was a very surreal night, that was the closest I’ve ever been to an insurrection.”
Asked if she is worried similar incidents will happen again, she replied: “Yes, we are worried it’s going to happen again… the ferry had to be stopped, lots of things had to be stopped because of it yesterday.
Watch: Protesters clash with police
Who is behind the protests?
Some of the demonstrators at Portsmouth were dressed in all black and wore face masks, similar to those who joined an anti-migrant protest which blocked the Port of Dover on Saturday.
Daniel Thomas, a former bodyguard for far-right activist Tommy Robinson, who has claimed credit for the Dover protest, live-streamed himself at the Portsmouth protest.
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- Treasury Chief Secretary Emma Reynolds called the protestors’ behaviour in Portsmouth and Dover “thuggish and intimidating”.
- Reform UK leader Nigel Farage said: “This is a serious situation, it’s about to get significantly worse.
- He added: “The government needs to act, I suspect it won’t. But remember, peaceful protests good, uniforms and masks bad.”
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‘Significant issue’ to come?
- In the wake of the protests, police warned that ministers will have a “significant issue” if people traffickers shift their routes further west of Dover.
- Places like Portsmouth along the hundreds of miles of England’s south coast are “not set up” for the arrival of migrants, Hampshire and Isle of Wight police and crime commissioner Donna Jones said.
- “My concern, as a police and crime commissioner, is that we don’t have this repeated,” she added.
Why Reform are fighting to replace Farage
The political “mood board” at the Reform UK conference over the weekend ranged from gloomiest black to the teal-suited larkiness of Nigel Farage. Yet the UK’s biggest political figure laced his gutsy “I will survive” message with a bleaker one about his family wishing he would quit frontline politics.
What challenges is Farage facing?
The Reform leader has faced heavy scrutiny for an undisclosed £5m “personal gift” he received in 2024.
Farage’s senior adviser, George Cottrell, is a convicted felon.
Now, the party is under the lens again after a documentary appeared to show Reform officials discussing donations from foreign financiers.
Challenges within Reform
- 1 – Farage says his family “begged” him to quit politics following the murder of Reform member Ann Widdecombe.
- 2Lack of professionalism – Farage spoke of Reform’s lack of professionalism after the sting and admitted he “wasn’t listening” carefully.
- 3Party infighting – Reform’s home affairs spokesman, Zia Yusuf, is frequently at odds with treasury spokesperson Robert Jenrick on issues like the details of how migrant deportations would work.
Reform’s future
The most likely outcome is that Farage, still the stardust of Reform, however tainted by the slew of funding scandals, will be the candidate at the next election in a do-or-die moment.
Even so, senior Reform figures can, however, calculate odds – and whether it is Tice, whose friends describe him as “always on standby” if a new leader is needed, Jenrick, whose old Tory frenemies joke he wakes up every day with the mantra “I will become leader…” or Yusuf, the man whose diehard views could pave the way to a rapprochement with Restore Britain, this party is in search mode for what follows the Nigel era.
Go deeper on this topic
Farage rivals begin to circle after Reform’s nightmare week
The i Paper
For now, Farage, who was given a hero’s welcome by activists at this year’s annual conference, remains firmly in control. But the man long viewed as politically untouchable is looking more vulnerable as the vultures begin to circle.
Watch more from The i Paper
What happened?
In an interview with , Moshiri said she has been diagnosed with an incurable type of blood cancer.
What is polycythaemia vera (PV)
PV thickens the blood by causing bone marrow to continuously produce red blood cells.
What are the risks?
This increases the risk of blood clots, which can cause stroke, heart attack or deep vein thrombosis.
The symptoms
Symptoms can include headaches, confusion, dizziness and blurred vision.
What treatment did she receive?
Her treatment involved a procedure called a , where almost a pint of blood is removed through a vein about twice a month to reduce the red blood cell concentration.
Immunotherapy treatment reduced the frequency of Moshiri’s venesections but initially came with “horrendous” side effects including insomnia, headaches and itching.
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Working through treatment
I was working 14-hour days, constantly on air, constantly having to think on my feet
Moshiri worked throughout her treatment, including leading the BBC’s coverage of the death of Pope Francis from Rome.
She said that although “adjusting to a different life” is challenging, a future “punctuated by hospital appointments and loads of medication” to deal with the disease is better than the alternative.
How UK’s first ‘super-university’ can tackle Neets crisis
The head of the UK’s first “super-university” has said that merging two universities can help reduce the number of people not in employment, education or training (Neet).
A new ‘super-university’
What is it?
The newly formed London and South East University Group (Lase) is now the third largest university in the UK.
How big is it?
It contains over 50,000 students across four campuses in London, Medway and Kent.
Which universities merged?
The universities of Kent and Greenwich legally merged to form Lase last month.
What is the Neets crisis?
- 1In April to June, an estimated 981,000 people aged 16-24 in the UK were classed as Neets.
- 2This represented a fall of 30,000 compared with the first quarter of the year.
- 3However, the figure is still 30,000 higher than a year ago, according to the Office for National Statistics.
The role of ‘super-unis’
It’s a real opportunity for us address the very people that the Government’s worried about
Lase chief executive Professor Jane Harrington said the merger will help the universities deal with growing operational costs and provide more accessible learning pathways to better address the needs of the regions in a way they could not on their own.
How will Lase work?
- Kent and Greenwich universities will still operate as distinct academic entities within the group.
- They retain their current names and students still apply to and graduate from the institution they choose.
- The group will now be able to offer subjects that they could not before when they were separate entities.
- Students will also be able to use libraries and access wellbeing services across campuses.
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What strain are universities facing?
Higher education providers in the UK have been facing increasing financial pressures, with MPs on the Education Committee warning earlier this year that there is a “real risk” a university in England could close due to insolvency for the first time.
The Office for Students told the committee it feared 24 providers were at risk of becoming insolvent and closing in the 12 months from November last year.
More ‘super-universities’ to come?
Lase is writing up a “blueprint” for the Department for Education to work as a “model” for a group structure which other universities would be able to use.
In May, King’s College London and Bedford-based Cranfield University announced plans to merge in August 2027.
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Watch more from The i Paper
EES checks resume – three ways to avoid border delays
A loophole allowing countries to pause the EU’s new border checks has ended, sparking concern that the travel chaos reported earlier in the summer may return.
EES border checks set to resume
EU border checks are set to start again in full force from Monday, 7 September, as member states’ rights to waive Entry/Exit System (EES) checks during times of maximum stress comes to an end.
While EES is unavoidable, and there is no way to skip the queue entirely, there are some ways to alleviate the stress of border check delays.
What is the EES?
- EES requires British passport holders and other third-country nationals to register biometric data when entering or exiting the Schengen area.
- Applying to 29 countries across Europe, excluding Ireland and Cyprus, the system caused has widespread delays since its introduction in April.
- Until now, the registration could be temporarily suspended by border officials when queues were too long to manage.
- But despite objections from some member states, this loophole has now expired, leaving holidaymakers facing the possibility of more significant delays.
How can you avoid delays
- 1Travel outside peak times – even the busiest airports, like Palma and Lisbon, were quieter later in the summer.
- 2Skip duty free – going straight to the border control desk will allow you to see how busy it is.
- 3Pre-register for Sweden and Portugal – currently applying only to Sweden and Portugal, the Travel to Europe app allows users to pre-register, reducing the information needed at border control to just fingerprint scans.
Go to passport control ASAP
A spokesperson for Abta, a UK travel agent trade association, recommended passengers go to passport control as soon as possible after getting through security.
It follows reports earlier this summer of long delays and some flights setting off while several passengers were still in the long border control queues.
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As the 28 October Budget approaches, Healey and Burnham face a tricky balancing act of wanting to improve public services, ease the cost of living and boost economic growth – all while staying within the confines of their self-imposed public spending rules.
A growing number of voices have warned this can only be achieved with bold choices – such as scrapping the triple lock. Lord O’Neill – the former Goldman Sachs chief economist who previously advised Burnham – urged the Prime Minister to “get real about “dealing with the triple lock”, while Labour backbenchers have called for “bold” choices to release funds to help young people.
Here’s how the Government could navigate any journey away from the policy – and what could replace it.
Why is there pressure to ditch the triple lock?
The generous uprating system was introduced in 2010 to reduce pensioner poverty. However, high inflation in recent years has seen costs balloon to about £146bn a year, equivalent to 5 per cent of GDP and more than double the entire defence budget.
The BCC’s director general, Shevaun Haviland, said “replacing the pensions triple lock” could help get the Government out of its “fiscal bind” by funding measures to support the nation’s million young people not in education, employment or training (Neets).
The business group, which represents 65,000 firms employing 7.4 million workers, has argued that scrapping the policy could raise £3.3bn over two years to help fund cuts to employer national insurance contributions for all under-25s.
The BCC argues that such a tax cut would help “tackle the youth employment crisis” by encouraging more companies to employ young people, which would reduce their reliance on state benefits and mean they contribute to the economy.
The organisation joins mounting calls to revisit the state pension system, which critics have argued is unaffordable and unsustainable.
Recently, O’Neill said scrapping the triple lock would be a “golden” opportunity to get a handle on public finances after borrowing costs hit a decades-long high last week. Sir Howard Davies, former chairman of NatWest, agreed, warning the country “can’t afford it”.
Tony Blair has called the policy “unaffordable long term”, and the Resolution Foundation – a think-tank formerly run by Labour pensions minister Torsten Bell – is urging the Government to find the courage to phase it out.
Before he became an MP, Bell, who now oversees private and state pensions policy, had described the triple lock as a “silly” system
What could replace the triple lock?
Several options have been touted to make the system more predictable and financially sustainable for the Treasury, while also continuing to support pensioners. Here are all the main proposals:
Smoothed earnings link
The Institute for Fiscal Studies (IFS) and the Resolution Foundation have long favoured the “smoothed earnings link”, which tracks wage growth but protects the value of the state pension from temporary price shocks.
Under this system in most years the state pension would track the growth in average earnings. In years where inflation surpassed wage growth, the pension would instead rise in line with prices.
However, as inflation eased off again, the state pension would not immediately return to its earnings link. Instead, the pension would remain pegged to prices for a while until it reached its previous real value – then the link to earnings would be resumed.
A similar system is used in Australia – but private pensions in the country are also more generous.
The IFS said this system would provide “greater predictability for both pensioners and policymakers”, while the Resolution Foundation suggested switching to it from next year could save around £650m in 2029-30.
Double or single lock
Under the double lock, where the state pension would increase each year by either average earnings growth or inflation – whichever is highest.
This would remove the guaranteed minimum increase of 2.5 per cent, which gives pensioners security that their payment will increase each year.
The IFS said it would not resolve the issue of the “one-way ratchet” effect, as the state pension would still rise faster than both earnings and prices in the long run and eventually become unsustainable.
The BCC has proposed a single lock, meaning the pension would increase each year according to inflation only.
Lifespan fund
The Tony Blair Institute (TBI) has proposed a more radical option, which involves scrapping the state pension altogether.
The former prime minister’s think-tank has suggested replacing the state pension with a “lifespan fund” which allows individuals to build up credits via work and activities that can be converted into a guaranteed pension at retirement.
People would have the option of drawing cash during disruptions such as unemployment or taking on caring responsibilities, and the retirement age would be linked to individual health rather than a one-size-fits-all state-pension age.
But former pensions minister Sir Steve Webb said the idea of linking state pension payments to individual health records and life expectancy was “deeply troubling”.
What could the consequences be?
While there have long been private murmurings from within the Labour Party that the triple lock should be axed, many believe scrapping it would be politically toxic among older Britons – who are most likely to turn up to vote at a general election.
It’s also important to note that Labour committed to keeping the triple lock in the 2024 manifesto. U-turning on this could put Burnham in a tricky position.
But Labour backbenchers have increasingly spoken out against the triple lock, with former cabinet minister Liam Byrne arguing for a “gradual move” away to fund support for younger generations.
Backbencher Graeme Downie said the current system “isn’t working and it’s costing too much money”, arguing it should be scrapped to release money to boost defence spending. Ministers have outlined a commitment to increase the defence budget to 3 per cent, but have not yet said how or when this will happen.
Speaking to The i Paper a month before he became Prime Minister, Burnham said that “the manifesto commitment holds” on the triple lock – but he did not spell out whether he would look to maintain the policy beyond the current Parliament, which is due to end by 2029.
This is consistent with the current Government position on the future of the policy, and suggests there could be room for a long-term plan involving a move away from the triple lock.
Later in the year, the Prime Minister is due to set out a 10-year plan to raise living standards through reindustrialisation, housing, infrastructure and reform of essential utilities.
The Prime Minister’s official spokesman said: “We are committed to the triple lock, with millions set to see their state pension rise by £2,100 over the course of this Parliament. The Government is committed to ensuring pensioners enjoy the dignity and respect they deserve in retirement.”