Faisal Islam: Triple lock move is significant, but it's a gamble

The government's decision to tie the state pension to funding a new national social care service is seen as a significant gamble by some, but it may pay off in the long run.

Under Prime Minister Andy Burnham's plans, the state pension will go up by either the pace of price rises or 2. 5%, whichever is higher. This change is sharper than expected and could save many billions in the coming decades.

The Institute for Fiscal Studies thinktank says that, had Burnham's tweak been in place since 2011, it would have more than halved the annual £16bn cost of the triple lock, a £9bn saving every year. Government sources said the decision to make the change now will save around £15bn a year by 2040.

Former chancellor Rachel Reeves might have imagined the same reward for her decision to scrap the winter fuel allowance, which was one of her first acts and later reversed. The prime minister's speech has been praised for its clarity and conviction, but some critics argue that it may not be enough to convince voters in next year's election.

Watch: How did Burnham's speech go down in the conference hall?