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Tories plan rise in pension age Tories plan rise in pension age
(10 minutes later)
Conservative plans to raise the state retirement age, up to ten years earlier than planned, are being outlined by shadow chancellor George Osborne.Conservative plans to raise the state retirement age, up to ten years earlier than planned, are being outlined by shadow chancellor George Osborne.
If elected, they will look at raising the pension age for men to 66 from 2016 at the earliest, to cut debts and pay for linking pension rises to earnings.If elected, they will look at raising the pension age for men to 66 from 2016 at the earliest, to cut debts and pay for linking pension rises to earnings.
They have not ruled out raising women's state pension age to 66 but say doing so by 2016 is "out of the question".They have not ruled out raising women's state pension age to 66 but say doing so by 2016 is "out of the question".
Ministers said the plans were "deeply unfair" and would hurt women.Ministers said the plans were "deeply unfair" and would hurt women.
Labour plans to raise the pension age to 66 between 2024 and 2026 but the Conservatives say this is not "ambitious enough" given rising life expectancy and the scale of the UK's debts. Mr Osborne opened his conference speech saying it was time to end 12 years of Labour's "feckless irresponsibility" and said Britain was "sinking in a sea of debt".
'Complexities' 'Not ambitious enough'
Bringing the move forward would mean many more people than previously expected, particularly those aged between 49 and 59, having to work a year longer before qualifying for a state pension. He said PM Gordon Brown was wrong to say there was a "difference between getting to grips with the debt and having an economic recovery".
Conservative Party sources say the change would save £13bn a year from the year it was introduced, about 0.75% of GDP each year. "What a disgrace that a chancellor who is borrowing £175bn this year didn't even mention it in his conference speech," he said.
TORY CONFERENCE TWEETS TORY CONFERENCE TWEETS
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osborne on stage-first message tories would sort out financial mess #cpc 10 minutes ago crazy scrum around George Osborne and Ken Clarke-Clarke calls it a 'pit of snakes' #cpc09 31 minutes ago press snappers all lined up to catch osborne and cameron on the way to the big speech-despite buckets of rain #cpc09 52 minutes ago Does Boris disagree on speed cams?letter from TFL asks for govt cash to be protected-Villiers says councils have to find their own #cpc09 About 1 hour ago Cameron says raising pension age for women to 66 in 2016 out of question-review will suggest how to up it gradually #cpc09 About 3 hours ago What is this? osborne-we respect public sector workers but all on less than 18 grand to have pay frozen apart from military #cpc09 1 minute ago big cheer for getting rid of regional assemblies-tories would cut cost of whitehall by a third #cpc09 6 minutes ago osborne looking stern-this is about 'character as well as policy' #cpc09 10 minutes ago osborne on stage-first message tories would sort out financial mess #cpc 20 minutes ago crazy scrum around George Osborne and Ken Clarke-Clarke calls it a 'pit of snakes' #cpc09 41 minutes ago What is this?
Ministers plan to gradually raise the state pension age for women over ten years from 60 to 65 by 2020. He is to announce more details of plans to raise the state retirement age as he makes his keynote speech to his party in Manchester.
Asked whether his plans meant women would suddenly see the state pension age raised to 66 in 2016 - rather than 63 as currently planned - Mr Cameron said: " A jump like that is out of the question". Under the government's existing plans, the state pension age will rise gradually from 65 to 68 between 2024 to 2046 but the Conservatives say this is not "ambitious enough" given rising life expectancy and the scale of the UK's debts.
He said there were "complexities" in the system which the review would have to address but added: "No-one wants to see something like that". Bringing the move forward would mean many more people than previously expected, particularly those aged between 49 and 59, having to work a year longer before qualifying for a state pension.
"We want to have a review to work out how best to provide a proper glide path and a sinking of the two pension ages," he said, adding that the overall proposal was "realistic and reasonable". Conservative Party sources say the change would save £13bn a year from the year it was introduced, about 0.75% of GDP each year.
The BBC's political editor Nick Robinson said the Tories had clarified that the earliest date at which all women would have to work until the age of 66 before receiving their state pension was 2022.
Mr Cameron said the rise in the pension age was designed to help pay for restoring the link between pensions and earnings - something both Labour and the Conservatives are committed to introducing before the end of the next Parliament.Mr Cameron said the rise in the pension age was designed to help pay for restoring the link between pensions and earnings - something both Labour and the Conservatives are committed to introducing before the end of the next Parliament.
He said his plans were underpinned by "a genuine desire" to ensure pensioners were not "left behind" and were able to retire with "security and dignity".He said his plans were underpinned by "a genuine desire" to ensure pensioners were not "left behind" and were able to retire with "security and dignity".
"The big step we are taking is to say that that the previous agreement that 2026 was the right year was not ambitious enough," he told BBC Radio 4's Today programme, adding that the debt crisis and rising life expectancy meant more urgent action was needed."The big step we are taking is to say that that the previous agreement that 2026 was the right year was not ambitious enough," he told BBC Radio 4's Today programme, adding that the debt crisis and rising life expectancy meant more urgent action was needed.
"We need to go further.""We need to go further."
Public financesPublic finances
Mr Osborne will announce more details as he makes his keynote speech to his party in Manchester. He acknowledged that the decision could prove unpopular with some but said he wanted his party to "face up to the big issues" and be upfront about dealing with the public finances .
Under the government's existing plans, the state pension age will rise gradually from 65 to 68 between 2024 to 2046. Ministers plan to gradually raise the state pension age for women over ten years from 60 to 65 by 2020.
Mr Cameron acknowledged that the decision could prove unpopular with some but said he wanted his party to "face up to the big issues" and be upfront about dealing with the public finances . Asked whether his plans meant women would suddenly see the state pension age raised to 66 in 2016 - rather than 63 as currently planned - Mr Cameron said: " A jump like that is out of the question".
He said there were "complexities" in the system which the review would have to address but added: "No-one wants to see something like that".
"We want to have a review to work out how best to provide a proper glide path and a sinking of the two pension ages," he said, adding that the overall proposal was "realistic and reasonable".
The BBC's political editor Nick Robinson said the Tories had clarified that the earliest date at which all women would have to work until the age of 66 before receiving their state pension was 2022.
You can't just tell people in their late fifties to rip up their retirement plans because they have to work up to three years longer Yvette Cooper Flanders: An embarrassment of cuts Send us your comments Anger at public pay freeze planYou can't just tell people in their late fifties to rip up their retirement plans because they have to work up to three years longer Yvette Cooper Flanders: An embarrassment of cuts Send us your comments Anger at public pay freeze plan
But Labour said that the plans were "deeply unfair" and would create huge uncertainty, particularly for women.But Labour said that the plans were "deeply unfair" and would create huge uncertainty, particularly for women.
"This is an appalling way to treat older people," said Work and Pensions Secretary Yvette Cooper."This is an appalling way to treat older people," said Work and Pensions Secretary Yvette Cooper.
"You can't just tell people in their late fifties to rip up their retirement plans because they have to work up to three years longer."You can't just tell people in their late fifties to rip up their retirement plans because they have to work up to three years longer.
She added: "They want to hit low paid workers in their late fifties, but they're still backing tax cuts on millionaires' estates. This shows how out of touch David Cameron and George Osborne are."She added: "They want to hit low paid workers in their late fifties, but they're still backing tax cuts on millionaires' estates. This shows how out of touch David Cameron and George Osborne are."
The Treasury's announcement late on Monday of a pay freeze for 750,000 senior and middle-ranking civil servants has angered the Tories, who described it as "cynical in timing".The Treasury's announcement late on Monday of a pay freeze for 750,000 senior and middle-ranking civil servants has angered the Tories, who described it as "cynical in timing".
But Labour sources insisted they were not trying to scupper Mr Osborne's speech, saying public sector pay was simply the first issue in Mr Darling's in-tray after he returned from the Labour conference and a series of foreign engagements.But Labour sources insisted they were not trying to scupper Mr Osborne's speech, saying public sector pay was simply the first issue in Mr Darling's in-tray after he returned from the Labour conference and a series of foreign engagements.
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