Source · Select Committees · Work and Pensions Committee
Recommendation 41
41
Accepted
State Pension age increases disproportionately impact deprived areas, raising pre-pensioner poverty levels.
Conclusion
The State Pension age is an important tool for containing the costs of the State Pension. However, improvements in life expectancy across the country have stalled. People living in the most deprived areas of the country have lower life expectancy and lower healthy life expectancy than people in less deprived areas. Increases in the State Pension age have a disproportionate impact on them: they receive it for a shorter amount of time. The last time the State Pension age increased, there was an increase in the number of 88 pre-pensioners in poverty. Those unable to keep working are likely to have to continue to use up savings and to rely on means-tested benefits for people of working age, which are much less generous. (Conclusion, Paragraph 191)
Government Response Summary
The government outlined its existing process for conducting impact assessments and evaluations for State Pension age increases, including past assessments and a future evaluation of the rise to 67 once it is complete in 2028.
Government Response
Accepted
HM Government
Accepted
The previous Government published impact assessments, including equality analysis, of the increase in State Pension age to 67 ahead of the legislation being introduced in 2011 and 2013: • Impact Assessment - Long term State Pension sustainability: increasing the State Pension age to 67 • Long term State Pension sustainability: increasing the State Pension age to 67 impact assessment Any future legislative changes to State Pension age would also be accompanied by impact assessments and equality analyses. The previous Government also undertook an evaluation of the increase in State Pension age to 66 in 2018, and findings were published in the 2023 State Pension age Review (State Pension age Review 2023 - GOV.UK). These findings informed the outcome of the 2023 review, which confirmed that the current rules around State Pension age remained appropriate. The increase in State Pension age to 67 will be evaluated once the rise to 67 is complete (2028) and data becomes available to assess any impacts.