View more on these topics

Osborne miscalculates state pension age saving by £3bn

Shadow Chancellor George Osborne has come under fire after it was revealed that his claim that he would save £13bn by raising the state pension age was disputed by a leading thinktank.

According to The Guardian on Saturday, The National Institute of Economic and Social Research said the saving outlined by Osborne at the Conservative party conference in Manchester last week would take five years longer than estimated and would fall £3bn short.

NIESR said Osborne’s team had misread a paper written by the thinktank earlier this year.

Osborne said he would save £13bn by raising the state pension age from 65 to 66 in 2016 for men and 2020 for women.

Liberal Democrat Treasury spokesman Lord Oakeshott said: “This saga of incompetence shoots to pieces his claims to be a responsible Chancellor.”

A spokesman for Osborne said the £13bn of savings included inflationary rises between 2009 and 2020.

He said: “We were clear that the £13bn figure was based on a projection of the cost of money in 2020. We accept the gain in today’s money is only £10bn.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm