State pension review response kicked into next parliament, DWP confirms

James Phillips
clock • 2 min read

The question of the state pension age will not be answered before the snap general election, the Department for Work and Pensions (DWP) has told PP.

The government was due to respond to John Cridland's review of the state pension age by 7 May, but the snap election means it will now delay the response until the next parliament.

Cridland's review recommended the state pension age should rise to 68 by 2039, and then could increase by a further review every decade. It also called for the triple lock - which guarantees increases at the highest of inflation, earning increases, or 2.5% - to be abolished.

However, the department told PP the current government will not respond to the review, and said "the decision is for the next government". It added this is due to purdah restrictions, which ban the government from making major policy announcements in the run-up to a general election.

Hargreaves Lansdown head of policy Tom McPhail said this was expected given its political impact in the sensitive general election period.

"It's hardly surprising the government has chosen to kick the ball down the road and into the next parliament," he said. "It's a thorny issue to deal with and it's more likely to cost rather than win votes at this stage.

"It doesn't, however, solve the problem, and whoever comes into power next is still going to have to address the question. While they can duck the issue this side of the general election, assuming the Tories are re-elected, they are going to have to come out with some kind of statement reasonably quickly".

Aegon pensions director Steven Cameron added the political parties should now set out a clear vision for the state pension in their manifestos ahead of the election.

"Alongside Brexit, state pensions will be firmly on the general election battleground," he said. "Decisions on future increases in state pension age will affect people for decades to come and it's right for the government not to rush out a pre-election commitment.

"However, voters deserve to know what plans each political party has for the state pension, both the age from which it comes into payment and also how increases will be determined. Party political manifestos present an ideal opportunity to set out the state pension stall."

The future of the triple lock is also in doubt as the Conservatives have so far dodged the question on whether they would retain it, unlike their previous commitment to keep it until 2020. However, several government ministers have said Theresa May is considering maintaining the protection.

Last week, an Old Mutual Wealth snap poll found dropping the triple lock would make one-third of over-55s less likely to vote Conservative.

The state pension is not the only casualty of the snap general election. Earlier this week, the Treasury dropped its reduction of the money purchase annual allowance (MPAA) from £10,000 to £4,000 to ensure the Finance Bill received Royal Assent before Parliament's dissolution on 3 May.

James Phillips
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James Phillips

Professional Pensions journalist from 2016-2022

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