Committees

Withdrawal of triple lock recommendation welcomed by Committee

23 March 2017

Rt Hon Frank Field 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.

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 20130s - 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

Chair's comment

Frank Field 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 John Cridland's report by 7 May.

Further information

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