The Department for Work and Pensions (DWP) has rejected a call from Labour MP Rachael Maskell "not to increase the State Pension age to 68". The State Pension age is currently 66, however, two further increases are set out in legislation with the next due to start in three years.
The first is a gradual rise to 67 between 2026 and 2028, followed by an increase to 68 between 2044 and 2046. But the rise to 68 has been the topic of much debate recently as there has been widespread reports that it could be brought forward, however, Secretary of State for Work and Pensions, Mel Stride MP, recently indicated that this is not likely to happen until the 2040s and is not a decision to be made by the current UK Government.
Speaking at a political correspondents lunch earlier this month, he said that, while the decision had been deferred until after the next general election, which is widely expected to take place next year, he anticipated the increase could happen in “2040 or thereabouts”.
An independent review by former Confederation of British Industry (CBI) director-general John Cridland in 2017 recommended the State Pension age be raised to 68 in 2037-39, while a follow-up study by Baroness Neville-Rolfe this year said the timetable should be pushed back to 2041-43. The second UK Government Review of State Pension age was published on 30 March 2023.
In a written response to Ms Maskell, Pensions Minister Laura Trott MP, said: “The Government noted the Independent Report’s recommendations on the rise from 67 to 68 but highlighted that Baroness Neville-Rolfe take into account the long-term impact of recent significant external challenges, bringing uncertainty to the data on life expectancy, the economic position and labour market.
“In light of this, the Government concluded that there will be a further review within two years of the next Parliament to consider age 68. This will be supported by the latest evidence, including life expectancy projections, updated with 2021 Census data, and the economic position.”
Ms Trott added: “The current rules for the rise to 68 remain appropriate, and all options that meet the principle of 10 years notice will be in scope at the next review.”
The Institute for Fiscal Studies (IFS) has suggested that the cost to the Exchequer of not introducing a rise in the State Pension age from 67 to 68 from the late 2030s could be around £8 billion to £9 billion per year.
Check your State Pension age online
You can check your State Pension age online to find out when you can retire and claim State Pension using the free online tool at GOV.UK here.
This will tell you:
- when you will reach State Pension age
- your Pension Credit qualifying age
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