• 13:12
  • 21.08.2017
 Raising pension age earns Treasury billions – but leaves women in poverty
экономика
21.08.2017

Raising pension age earns Treasury billions – but leaves women in poverty

узнать больше
Deep reforms to the state pension affecting more than a million women have saved the Treasury £5bn a year but also “substantially” increased poverty rates, a major new study has revealed.

The analysis sets out the impact of pushing women to work into their sixties, with their households stripped of £74-a-week worth of benefits.

Those hit branded the report from the respected Institute for Fiscal Studies shocking, while opposition politicians called it “grim reading” and claimed the Government had “catastrophically mismanaged” reform.
Britain could lose 40,000 investment banking jobs in Brexit exodus

It comes as Chancellor Philip Hammond prepares for his Budget, which is expected to indicate that, despite years of swingeing cuts, Britain’s deficit may not be abolished for another decade.

Theresa May is also under intense pressure to ease austerity from her own ministers and from a Labour party buoyed by a successful election campaign fought on increased spending.

The IFS looked into the Government’s reform of the state pension, needed to account for a longer-living population, and found the move to increase the eligibility age for women from 60 to 63 meant income poverty rates were “pushed up substantially” from around 15 to 20 per cent.
This is the biggest financial scam you've never heard of

IFS senior research economist Jonathan Cribb said: “The tax and benefit system is much more generous to those above the state pension age than those below it.

“So while increasing the state pension age is a coherent response to the public finance challenge posed by rising longevity, it does place a further pressure on household budgets.”

The study found that affected households received about £74-a-week less in state pensions and other benefits due to the reforms.
Boris Johnson's economic guru demands EU citizens be given clarity over future status

Money from new wages offset some of the loss, with employment increasing for women between the ages of 60 and 62 as a result of the changes, leaving them some £32-a-week worse off in net terms.

The report, funded by the Joseph Rowntree Foundation and the Economic and Social Research Council, also found poorer individuals were hit harder.

It said: “Proportionally, we find a larger reduction in household income for lower-income women, with the reform increasing the measured income poverty rate of women aged 60 to 62, who are now under the state pension age, by 6.4 percentage points.”
Transitional deal is only way to save Brexit from an 'approaching disaster'

IFS researchers indicated that while the poverty rate increased for women between the ages of 60 and 62, there was no impact once they did eventually begin to receive their pension.

The report showed the Government had saved some £5.1bn a year between 2010 and 2016 by paying less in benefits to some 1.1 million women, while making more from those in their number who continued to earn and pay taxes.

The Women Against State Pension Inequality (Waspi) campaign accused ministers of not adequately considering the full impact of the reforms.
Tainted eggs scandal spreads to France

Director Jane Cowley said: “The Government needs to sit up and start realising that its changes have devastating consequences on the women affected.

“Yet again, it is women who are paying the price for the Government’s pension reforms.
Germany’s tax policy needs a fresh start

“This simply isn’t good enough when the UK already has one of the biggest pension pay gaps in Europe.” 

Shadow pensions minister Alex Cunningham said: “This report shows the full impact of this Government’s catastrophically mismanaged increase in the state pension age for women, which has left millions feeling insecure and uncertain about their retirement prospects.

“The Government must learn the lessons from their failure, before they bring forward their state pension age increase to 68, which will see 7.6 million people lose out by nearly £10,000 each.”
Brexit supporters think leaving EU is worth 'significant damage' to UK economy, poll finds

Meanwhile, the SNP’s Ian Blackford MP said: “This report makes for grim reading. It confirms what we have always said that – as always – the Tories just don’t care about those on lowest incomes.”

The 1995 Pensions Act first set out how the female state pension age would be increased from 60 to 65 from 2010, until it was equalised with the male age at 65 by 2020.

Subsequent changes aimed to see the age for both men and women reach 66 by 2020 and the Government is planning further increases to push it up to 67 between 2026 and 2028.
Subway announces 5,000 new jobs amid UK and Ireland expansion

According to new measures announced last month, a rise to 68 will now happen in 2039, rather than in 2046 as originally proposed.

Responding to the IMF’s report, government officials pointed to rising employment rates for women in their early sixties as having offset the impact of the reforms, noting that more people are in work than ever before, including a record 9.9 million older workers. 

They also said the reforms to the National Insurance contribution conditions in 2010-11 mean the percentage of women receiving a full basic state pension increased from around 40 per cent to around 80 per cent.
There's no magic money tree - unless you're making a deal with the DUP

A spokesperson said: “The decision to equalise and increase the state pension age is both fair and sustainable for future generations and in line with continuing rises in life expectancy.

“Women retiring today can still expect to receive the state pension for over 24.5 years on average – which is more than any generation before them and several years longer than men.

“By 2030, more than three million women stand to gain an average of £550 extra per year as a result of the new state pension.”
British economy suffers 'notable slowdown'

Mr Hammond is due to flesh out the Government’s spending priorities in his Budget later this year, but is under pressure both not to raise taxes and to increase spending in areas like public sector pay.

Reports have also emerged that plans to abolish the deficit could be pushed back to 2027.

802856
узнать больше
Важно знать
image
происшествия
21.08.2017
Imam at centre of Spain terror cell had links with Madrid bombers
image
политика
21.08.2017
Trump more important than condemning Nazis, says Israel minister
image
интересно
21.08.2017
The working class isn’t as white as some would like you to think
image
политика
21.08.2017
Tory MPs' fury at Theresa May over broken promise to cap energy prices
image
экономика
21.08.2017
Without EU migrants, our economy will crumble after Brexit
image
интересно
21.08.2017
Man says Nazis were socialist, gets schooled by history writer
image
шоу-биз
21.08.2017
Prince Philip 'told Blair’s team to f*** off’ over Diana’s funeral
image
происшествия
21.08.2017
Ukraine has removed all 1,320 statues of Lenin
image
политика
21.08.2017
Donald Trump struggled to spell 'heal'
image
политика
21.08.2017
How the Iraq war is linked to Spain's outbreak of Islamist terror
image
политика
21.08.2017
'Europe is lost': Barcelona's chief rabbi tells Jews to move to Israel
image
политика
21.08.2017
North Korea says US causing 'uncontrollable phase of a nuclear war' with military drills
image
политика
21.08.2017
Donald Trump to address the nation for only third time in presidency
image
политика
21.08.2017
Politicians 'already looking beyond Trump', former White House aide says
image
интересно
21.08.2017
Why the Royal Family never sign autographs
image
политика
21.08.2017
Why are Tory MPs so obsessed with Big Ben and Brexit?
image
политика
21.08.2017
May's Brexit plans ridiculed as 'foolish' by former government legal chief
image
шоу-биз
21.08.2017
Celebs who sold their souls for a paycheck
image
шоу-биз
21.08.2017
Kim Kardashian flashes her tummy
image
интересно
21.08.2017
This is what happens when 100 Americans try to speak like the British
image
шоу-биз
21.08.2017
Marc Anthony's mother dies