Rt Hon MP, Chair of the Work and
Pensions Committee has welcomed the final report of the
Independent Review of the State Pension Age, led by John
Cridland, published today.
The independent review endorses the conclusions and
recommendations made by the Work and Pensions Committee in its
November 2016 Report on Intergenerational
Fairness. In particular:
- · The triple
lock for uprating the state pension should be replaced by an
earnings link from 2020.
- · In order to
retain fiscal sustainability, there is a trade-off between
indexation of the state pension and the state pension age.
- · Scheduled
changes to the state pension age – including an accelerated
increase to 68 in the 2030s - are at the limits of fairness on
grounds of increasing longevity.
- · Universal,
non-contributory benefits such as the Winter Fuel Payment should
be on the table if fiscal savings are required.
said:
“I welcome this report and in particular the recommendation
that the triple lock be replaced by an earnings link from 2020.
There is a trade-off between the value of the state pension and
access to it. John Cridland’s recommendations – which echo those
of the select committee - would mean that many poorer pensioners
will retire in time to draw their pension. He has struck the
right balance to achieve fairness within and between
generations.”
The report of the Independent Review was published alongside
projections by the Government Actuary’s Department which show the
path of the state pension age under different assumptions. The
projection of a rise to 70 in the 2050s is based on an assumption
that people can on average expect to spend 32% of adult life in
receipt of the state pension, which would be a departure from the
Government’s stated aim of one third. The adoption of increases
in the state pension age faster than those recommended by John
Cridland would be expressly favouring the value of the state
pension over access to it.
The Government must respond to both reports by 7 May.
