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Labour backs Waspi and triple lock in pension manifesto

Labour

Labour has promised to give more support to women affected by increases in their state pension age in its “pensioner’s pledge card” published today.

Labour Chancellor John McDonnell published the party’s promises today on his Twitter account. The pledges also include keeping the state pension triple lock until 2025, protecting the state pensions of overseas pensioners, and keeping pensioner perks such as free bus passes.

McDonnell says Labour will “end Tory unfairness” for women impacted by state pension age increases, and will compensate those worst affected.

The triple lock commitment goes against the recent recommendations of the Work and Pensions Committee and the Cridland Review.

The Government-commissioned review by former Confederation of British Industry director general John Cridland into the state pension age, published in March, recommended the triple lock be withdrawn at the next parliament.

The report said: “In the longer term the retention of the triple lock is forecast to become a very significant factor in the cost of the state pension. It is estimated that it would be responsible for 0.9 per cent of GDP in 2066/67. This will raise questions of intergenerational fairness as between those in work and those in retirement.”

In a November 2016 report, the Work and Pensions Committee also argued the triple lock should be dropped after its inquiry into inter-generational fairness.

Responding to Labour’s triple lock pledge, AJ Bell senior analyst Tom Selby says: “The cost of Labour’s triple-lock promise is, of course, uncertain – if earnings and inflation are below 2.5 per cent between 2020 and 2025, for example, it could be very expensive.”

“Equally, if earnings is the highest of the components it could cost nothing – assuming Theresa May isn’t planning on imitating Margaret Thatcher by scrapping the earnings link altogether.”

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Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Shirley Coates 12th May 2017 at 6:00 pm

    Could you please explain in laymen’s terms, what you mean by the following statement(a Lab gov will extend pension tax credit payments to waspi women)

    What does that mean for us post 1950’s woman, I myself was born in 1954 and for my health and well-being this year have had to give up work and taken early redundancy. I would appreciate it if you could answer the following:

    1. Are you pledging to get compensation for all post 1950’s woman regardless of their
    financial circumstances, as this effects all of us.
    2. Will you take personal savings into account when issuing pension credits, i.e my
    redundancy payment
    3. Will you be taken the spouses savings into account
    4. And is the compensation you are pushing for a separate issue to the pension credits that
    has been mentioned.
    5. And finally how can you justify a woman who is born pre 1950 that is in receipt of state
    pension, heating allowance, and a bus pass and who is fortunate to have the health to
    continue to work, is except from paying N.I. Their employer still has to pay N.I for
    them and if they are off sick they will still receive SSP. How can you justify two ladies
    doing the same job earning the same gross salary but the woman born pre 1950 has a
    higher net salary because she is except form paying N.I. For-bye the fact it is age
    discrimination the strapped cash NHS could use all that N.I that all those working people
    is legally allowed to avoid paying.
    I would love for you to get from HMRC a list of all the people that are C rate N.I and that
    are still working, I think it would surprise you actually how many thousands there are, and
    how much money it would generate.

    Regards
    Shirley Coates

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