Cridland review plans would 'hit low paid workers the hardest'
Hiking the state pension age seven years earlier than planned would be a ‘strealth tax’ that would ‘hit low paid workers the hardest’.
That’s the view of the Trades Union Congress (TUC) following the release today of the Cridland review, commissioned by the government, which recommends brining forward plans to raise the pension age to 68.
State pensions are due to rise to 66 in 2020 and 67 between 2026 and 2028.
But the independent review, by former Confederation of British Industry (CBI) Director-General John Cridland, backs raising the pension age to 68 between 2037 and 2039, rather than between 2044 and 2046.
If adopted the change would affect people who are now under forty years of age.
The review also calls for scrapping the government’s ‘triple lock’ on pensions, which mean payments rise by inflation, earnings or 2.5 per cent, depending on which is higher.
Frances O’Grady, General Secretary of the TUC, said:
“Hiking up the state pension age will hit low paid workers the hardest. And it will punish those who become too sick to work.
Ending the triple lock while driving up state pension age would be a stealth cut to the future incomes of workers who are today in their 30s and 40s.”
“There is a 20 year gap in healthy life expectancy between the richest and poorest.
These changes risk only the wealthy enjoying a decent retirement.”
Cridland’s plans are meant to ensure ‘fairness’ between generations and save taxpayer money on pensions.
Adam Barnett is staff writer for Left Foot Forward. Follow him on Twitter @AdamBarnett13Like this article? Sign up to Left Foot Forward's weekday email for the latest progressive news and comment - and support campaigning journalism by making a donation today.