Club Vita longevity consultant Steve Baxter says the Government should consider rewarding people who raise children or care for the elderly with a split state pension system.
Baxter co-authored a recent report outlining policy options to cope with rising life expectancy. It proposes a state benefit system with a basic “universal” payment supported by a modest “reward” top-up which recogni-ses economic activity. He says the basic element should be set at a low rate, potentially below £140.
He says: “The reward element would encourage people to do things that society would think are productive and useful, including caring for the elderly, child-rearing and any other things that people should receive credit for.”
Baxter denies that a split state pension would introduce too much complexity.
He says: “I think we have got to strike a balance here. We want a system that is as simple as possible but that is also fit for purpose and reflects the needs of the individual. The confusion lies in the multitude of historic benefits that are out there.”