Pension reform confirmed in Queen's speech
In today's Queen's Speech the UK Government set out its plans to legislate for a single-tier state pension.
The Pensions Bill will introduce a single-tier state-pension from April 2016, replacing the current basic state pension and earnings-related top-up. An increase in State Pension Age to age 67 will come into force between 2026 and 2028, this to be continually reviewed thereafter in light of the increase in people's life expectancy. A cap on the cost of social care is also to be introduced for England only.
Age Scotland spokesperson Doug Anthoney said: "We support the overall aims of the single tier pension but we are concerned the proposed amount is just one per cent higher than current Pension Credit level. The triple lock that uprates the pension in line with the higher of earnings, prices, or 2.5%, needs to be enshrined in legislation to ensure that future generations of pensioners are protected from the poverty that blighted so many previous generations.
"The single tier will help many women but Age Scotland is particularly concerned about a small group of women who were relying on their husbands' National Insurance record, but will lose out under new arrangements and face a worrying future because they do not have time to change their retirement plans.
"We are calling on the Government to protect this group, for example, allowing those within 15 years of State Pension Age to retain this right. The government also needs to be clear about the transitional protection for those who could end up with a lower overall income due to changes in means-tested benefits."
"We accept that as life expectancy increases it is reasonable to consider extending working lives, but would like increases in pension age to be aligned with the health of the population rather than life expectancy. In Scotland healthy life expectancy has been declining compared to other parts of the UK, so a greater proportion of older people in Scotland could find themselves forced to keep working through failing health.
"While progress is being made in England towards capping the total cost to individuals of their care, we've had little debate around this issue in Scotland. The policy of Free Personal and Nursing care has been of great benefit to, and welcomed by, older people, however the ‘hotel costs' of residential care can quickly deplete an older person's assets. We would like to our parliamentarians to look at what is the right balance between individuals and the public purse when it comes to paying for care."
