Burnham attack on Scottish pensions to fund English Care system backfires

Andy Burnham’s plan to raid Scottish pensions to fund free personal care for English pensioners is going down like cold chips in Scotland. On the podium at the Labour Party conference, the UK PM said he would break the triple lock, which has been very gradually raising the UK state pension since it was introduced in 2011. Early in his term in office, Keir Starmer attacked the Winter Heating Allowance, which disproportionately affected Scottish pensioners in our colder climate. Now Burnham is attacking pensions again by ending the triple lock.

Burnham’s ketchup offer to pensioners was a proposal to use the savings to fund a ‘National Care Service’ - but the small print was that it would not cover residential care but only free personal care, which Scots already have.

So pensioners across Scotland look set to lose future pension increases - to fund a policy that only affects England. However, when this Burnham pension reform kicks in, the Scottish Government will get money from Westminster as its share of the money spent on the new English Personal Care system - Scotland already has that so the Scottish Government can spend that how it wants.

Believe in Scotland would like the Scottish Government to use this “Barnett Consequential” money to top up pensions in Scotland to the level they would be if the triple lock was still in place. Not only would there be Barnett consequentials, but a higher pension rate in Scotland would also save money on benefits for pensioners who would otherwise qualify for Pension Credit top-ups.

Believe in Scotland has long argued for a wellbeing pension that is calculated to allow a decent standard of living. The full Wellbeing Pension, currently calculated to be £275.00 per week (almost £34 a week more than the current New UK State Pension), is only achievable under independence. 

Scottish Wellbeing Pension Supplement

However, the Scottish Government has the power to top up reserved benefits - or to create an additional pensioner payment like with the Scottish Child Payment. So there could be a related uplift to Scottish pensioners, a Scottish Pensioner Payment. 

How the Scottish Wellbeing Pension Supplement could work

Pensioner poverty is already rising again

Pensioner poverty fell in the 21st century - but it is rising as a cohort of people starts to reach pension age who have had more precarious work lives with less generous private pensions. There will be more Scots in years to come reliant on just the state pension and they can’t afford to lose the triple lock. 

The Joseph Rowntree Foundation report Poverty in Scotland 2025 calculates that about 15% of pensioners in Scotland are in poverty.  The report said: “Between 1994–97 and 2008–11, the risk of falling into poverty for pensioners more than halved, from 31% to 12%. 

This was driven by the UK Government’s commitment to reduce poverty amongst older people and the use of the ‘triple lock’, ensuring pensioner incomes kept up with rising prices and wage inflation… By 2015–18 it had risen to 15% where it remained in the latest year. At the same time, poverty before housing costs is increasing. This is likely due to lower-income pensioners having less income from private pensions and being more reliant on state pensions and means-tested benefits.” 

Scotland’s commitment to pensioners

Speaking in Holyrood following the announcement, First Minister John Swinney said the plan to end the triple lock was “a bad idea”. He said: “In Scotland, we provide free personal care for older people without punishing pensioners. Andy Burnham removing the triple lock would simply repeat the mistakes of Keir Starmer. The blame for the UK’s financial mess lies with successive Westminster governments, not pensioners.” 

Sharon Graham, the leader of the Unite trade union, told the BBC she would prefer a wealth tax to pay for the changes. Zack Polanski, leader of the Green Party, asked why the government was going after pensioners instead of taxing the rich.

We don't know how much free personal care will cost in England - that depends on the final policy decision but initially it is likely to cost more than is saved. So although the debate about how the Scottish government will use the Barnett consequential money has not yet started we are calling on the Scottish Government to immediately prepare plans to make sure that this real terms pension cut is mitigated. 

An independent Scotland could do better

The UK provides a universal state pension which provides only 22% of average earnings. On top of this, many people have workplace pensions, but that system does not work well because pension provision is so fragmented across private providers. Workers who change jobs frequently amass lots of small pots which they can lose track of.

The UK is unusual among European countries with its heavy reliance on the private sector to provide pensions. Most European countries have a government-run fund which almost everyone pays into and can take with them when they change jobs. These schemes are universal and can be paused during periods of unemployment or illness. 

Because these schemes are unified, changing employers, taking career breaks, or moving sectors doesn't fragment your savings into separate accounts. The state tracks your total earnings history automatically.

This contrasts with the UK’s reliance on a low basic flat rate top-up supplemented by multiple private auto-enrolment schemes.

It is true that many older people in Scotland do have well-funded private pensions or other sources of income like inheritance. These people already pay back a lot of what they get from the universal state pension in taxation. A wealth tax would be a way of keeping pensions universal - but clawing back more from those who don’t need it.

Conclusion 

An independent Scotland could establish a modern, European-style pension system alongside a Wellbeing Economy; Scotland could deliver both dignified, reliable incomes for its retirees and a fully funded, free social care system - as other comparable countries do.  In the meantime the Scottish Government should immediately investigate the scope for a Wellbeing Pension Supplement to ensure that no one is forced into pension poverty due to Burnham's cuts.