Andy Burnham says state pension plan will "hold its value relative to earnings over time"

Speaking at Labour’s gathering in Liverpool, Prime Minister Andy Burnham outlined a plan to change how the state pension is increased so that money can be redirected toward a new national care program. The current formula raises payments by the largest of three measures: inflation, typical wage growth, or 2.5%. Burnham said that from April 2030 he would keep the inflation and 2.5% options but remove the annual wage benchmark, giving only a broad, longer-term assurance about pension levels in relation to pay. He described the change as producing substantial savings for care, though how much remains unclear. He also said poorer retirees would not be brought into income tax during this parliament and accepted the decision might cost him politically.