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| Spending Review: Osborne wields UK spending axe | |
| (40 minutes later) | |
| The state pension age will now rise to 66 by 2020 for both men and women, the Chancellor, George Osborne, has said. | The state pension age will now rise to 66 by 2020 for both men and women, the Chancellor, George Osborne, has said. |
| The plan brings forward by six years the plan that the previous Labour government had put in place. | The plan brings forward by six years the plan that the previous Labour government had put in place. |
| Mr Osborne told MPs that the increase from 65 to 66 would be phased in from 2018. | Mr Osborne told MPs that the increase from 65 to 66 would be phased in from 2018. |
| This will also accelerate the existing plan under which women's pension age would have been equalised with men at age 65, by 2020. | This will also accelerate the existing plan under which women's pension age would have been equalised with men at age 65, by 2020. |
| Mr Osborne said the new policy would eventually save the government £5bn a year by the end of the next parliament. | Mr Osborne said the new policy would eventually save the government £5bn a year by the end of the next parliament. |
| "Raising the state pension age is what many countries are now doing, and will by the end of the next parliament save over £5bn a year - money which will be used to provide a more generous basic state pension as we manage demographic pressures," Mr Osborne said. | "Raising the state pension age is what many countries are now doing, and will by the end of the next parliament save over £5bn a year - money which will be used to provide a more generous basic state pension as we manage demographic pressures," Mr Osborne said. |
| In 2007, the Labour government followed the recommendations of Lord Turner's Pensions Commission. | In 2007, the Labour government followed the recommendations of Lord Turner's Pensions Commission. |
| It decided that the state pension age should rise: to 66 by 2026, to 67 by 2036 and to 68 by 2046. | It decided that the state pension age should rise: to 66 by 2026, to 67 by 2036 and to 68 by 2046. |
| During the summer, the new coalition government held a public consultation on bringing forward the first element of this plan because of the widespread evidence that people are continuing to live longer. | During the summer, the new coalition government held a public consultation on bringing forward the first element of this plan because of the widespread evidence that people are continuing to live longer. |
| The government said at the time that leaving the state pension age at 65 "was not an option" and raising it would contribute to making the state pension more affordable as pensioners spent longer in retirement. | The government said at the time that leaving the state pension age at 65 "was not an option" and raising it would contribute to making the state pension more affordable as pensioners spent longer in retirement. |
| Public sector pensions | Public sector pensions |
| Following the recent initial recommendations of Lord Hutton's independent commission, the government will seek to raise the contributions that public servants make to their pension schemes. | Following the recent initial recommendations of Lord Hutton's independent commission, the government will seek to raise the contributions that public servants make to their pension schemes. |
| Mr Osborne said that any increases should be "staggered and progressive", with the lowest paid and members of the armed forces being protected. | Mr Osborne said that any increases should be "staggered and progressive", with the lowest paid and members of the armed forces being protected. |
| But those who gained the highest pensions from final-salary schemes should be expected to pay the most, Mr Osborne said | But those who gained the highest pensions from final-salary schemes should be expected to pay the most, Mr Osborne said |
| Although no detailed decision will be taken until Lord Hutton's full report is delivered next spring, Mr Osborne said he expected changes to save the government £1.8bn a year by 2014-15. | Although no detailed decision will be taken until Lord Hutton's full report is delivered next spring, Mr Osborne said he expected changes to save the government £1.8bn a year by 2014-15. |
| He also said that the final-salary scheme for MPs, though not formally part of Lord Hutton's review, would have to end in its current form. | He also said that the final-salary scheme for MPs, though not formally part of Lord Hutton's review, would have to end in its current form. |
| Do you have a question on how the changes will affect you? Send your questions using the form below. | Do you have a question on how the changes will affect you? Send your questions using the form below. |
| At no time should you endanger yourself or others, take any unnecessary risks or infringe any laws.In most cases a selection of your comments will be published, displaying your name as you provide it and location unless you state otherwise. But your contact details will never be published. | At no time should you endanger yourself or others, take any unnecessary risks or infringe any laws.In most cases a selection of your comments will be published, displaying your name as you provide it and location unless you state otherwise. But your contact details will never be published. |