The Government has decided to bring forward the increase in the state pension age to 68 by seven years.
Adopting the recommendations of the Cridland review into state pension increases, the Government has confirmed that the state pension age will rise from 67 to 68 from 2037.
Speaking in the House of Commons today, Work and Pensions Secretary David Gauke said that the Government had to “face up to this long-term challenge not pretend it doesn’t exist.”
Gauke said that under Labour’s proposed timetable, state pension spending would be £20bn a year higher.
By October 2020, the Government had already committed to increasing the state pension age from 65 to 66. By 2028 this was set to rise to 67 and then 68 by 2046.
Former CBI director John Cridland’s report was released in March, and said bringing forward the state pension age increases would cut state pension spending as a proportion of GDP by 0.3 per cent compared to what the Office for Budget Responsibility had projected.
The report also recomended scrapping the triple lock.