UK business body calls for pension triple-lock overhaul to fund youth jobs
BCC urges UK finance minister to scrap pension triple lock, use savings to cut employer taxes for young staff.
The British Chambers of Commerce (BCC) has asked the UK's new finance minister, John Healey, to scrap the state pension's "triple lock" guarantee in favour of inflation-only increases, arguing the move would free up billions to support young workers.
Under the current system, the state pension rises each year by the highest of three measures: inflation, average wage growth, or 2.5%. The BCC's proposal, outlined in a submission published on Sunday, would link annual increases solely to consumer price inflation.
The business lobby group estimates this change could save approximately £3.3 billion (around $4.5 billion) over two years. It suggests these savings should be redirected to cover part of the cost of scrapping employer National Insurance contributions for workers aged 21 to 24, a measure aimed at boosting youth employment.
The submission also calls for lower business energy costs, relief on business rates, and stronger export support. The BCC argues that weak business confidence and rising operational costs are currently holding back investment across the economy.
The recommendations come just ahead of Healey's first major budget, due next month, and his first significant speech as finance minister, scheduled for Monday.