The Women Against State Pension Inequality campaign has hit out at Government increases to the state pension age again as a new report suggests that reforms have delivered £5.1bn back to the Treasury.
A study by the Institute for Fiscal Studies finds that, on average, women’s household incomes have been reduced by £32 per week as a result of the increase in state pension age from age 60 in 2010 to age 63 in 2016.
As this has a bigger impact on lower-income households, the IFS estimates a knock-on effect of a 6.4 percentage point increase in the absolute income poverty rate of women between 60 and 62.
However, the IFS says that this increase in income poverty subsided once women hit state pension age, suggesting that this may be the result of women spending less to avoid deprivation.
In a statement this morning, Waspi director Jane Cowley said: “Once again, this shows that Government has implemented state pension age reforms without adequately considering the full impact of these changes on the women affected.
“Whether it is the 3.5 million Waspi women who were not given sufficient warning of rises to their state pension age, or the sharp rise in income poverty among 60 to 62-year-old women, the Government needs to sit up and start realising that its changes have devastating consequences on the women affected.”
— #WASPI Campaign (@WASPI_Campaign) August 2, 2017
Waspi, which is campaigning for transitional arrangements for women affected by state pension age increases, is currently encouraging its members to send in complaints to the Department for Work and Pensions about the reforms.
The Government recently brought forward future increases by seven years as it bowed to the recommendations of a flagship report into the state pension age and inter-generational fairness.