Nigel Farage Raises Doubts Over Pension Triple Lock And Reform UK Economic Policy

Nigel Farage, leader of Reform UK, has cast significant uncertainty over the future of the pensions triple lock, signalling a shift away from the party’s ambitious economic pledges from its previous manifesto. In a keynote speech at The Cornhill Banking Hall, Farage described some of Reform’s manifesto promises—particularly substantial tax cuts and spending increases—as no longer “sensible”, blaming government mismanagement for worsening economic prospects.

The pensions triple lock, a policy introduced under former Conservative leadership to guarantee that the state pension rises by the highest of inflation, average earnings growth, or 2.5 per cent, has long enjoyed cross-party support. This commitment is seen as crucial to appealing to pensioners, a key demographic at the ballot box. When pressed on his commitment to retaining the triple lock and increasing the tax-free allowance from £12,500 to £20,000, Farage stated, “I cannot tell you what the state of the economy will be as the next general election approaches.” He went as far as to predict that the economy could deteriorate further before a potential election in 2027, voicing scepticism about making any long-term guarantees.

Farage’s scepticism was not limited to pensions. He addressed the minimum wage, suggesting there is a case for lowering the minimum wage for young workers or instead raising the threshold at which employees start paying national insurance contributions. Farage remarked, “There’s an argument [that] the minimum wage is too high for younger workers, particularly given that we’ve lowered the level at which NIC is paid to £5,000 a year. So do one or the other. Either lift the cap at which NI is due, or lower the minimum wage for lower workers.”

Discussing workers’ rights, Farage criticised the government’s new Employment Rights Act, arguing that it places too much strain on small and medium-sized businesses. While he stopped short of promising a full repeal, he suggested the law should not apply to the smallest firms, stating, “The idea that the employment rights legislation should apply to a company with three employees, you have to start asking yourself a question: who’s that good for? Well it’s not good for the company and it’s certainly not good for the worker.” Farage emphasised that small businesses employ the majority of private sector workers and often face excessive regulatory burdens.

The Reform UK leader also rowed back from previous promises of swift and sweeping tax cuts, insisting that significant reductions would have to wait until the government demonstrates more fiscal restraint. The initial priorities, he suggested, would be to reverse Labour’s inheritance tax changes for agricultural land and raise income tax thresholds, both of which have been frozen since April 2022 and may remain so until at least 2028.

Questions have also surfaced regarding Reform’s economic team. While Farage denied the party is a “one man band”, he declined to confirm who would serve as the next shadow chancellor. Candidates such as Zia Yusuf, a former Goldman Sachs banker, and Richard Tice, deputy leader, remain in the frame. Farage promised the team would broaden as Reform UK further develops its policies and personnel.

As the economic backdrop remains volatile, the next steps for pensions, minimum wage policy, and broader fiscal strategy under Reform UK are likely to evolve further between now and the next general election.