Rethink on pension age ‘will help thousands of women’

The UK government announced changes to the planned increase in the state pension age yesterday, saying that tens of thousands of women would benefit at a cost of more than £1 billion.

The Department for Work and Pensions said a plan to raise the state pension age to 66 in 2020 would be delayed by six months from April 2020 to October 2020. Around 245,000 women and 240,000 men would benefit, including 33,000 women who would have experienced a two-year rise in their state pension age, said the government.

Unions said the move gave “precious little comfort” to women, while an industry expert said the pension plans of tens of thousands of women would be “thrown into disarray”.

The Pensions Bill going through parliament would be amended from the current timetable to cap the increased wait to a maximum of 18 months, costing the government £1.1 billion.

Under the bill, the state pension age for women would reach 65 by November 2018 and rise to 66 for men and women by April 2020.

Work and Pensions Secretary Iain Duncan Smith said: “We have listened to the concerns of those women most affected by the proposed rise in state pension age to 66 and so we will cap the increase to a maximum of 18 months.

“We have always made clear that we would manage any change fairly and ensure any transition is as smooth as possible.”

Prime Minister David Cameron’s official spokesman said: “This means that women who face a two-year increase in state pension age will have their wait reduced to a maximum of 18 months.

“The policy of increasing retirement age and equalising retirement age remains, but we have acknowledged the fact that there were some transitional issues with that change and we have been looking for some time at how to deal with those.”