• New Government analysis reveals reversing state pension age increases for women would cost the Treasury £181billion by 2025/26
• If increases to the men’s state pension age were also cancelled this would cost a further £34billion
• Analysis published as High Court Judicial Review considers whether 1950s-born women were discriminated against by the changes
Tom Selby, senior analyst at AJ Bell, comments:
“These eye-watering costs explain why the Government has been so steadfast in refusing to rethink controversial increases to the state pension age for women.
“While those affected are understandably aggrieved at the impact the hike has had on their retirement plans and the lack of notice given, paying out £181billion to those affected would leave a gaping black hole in the nation’s finances.
“That black hole would need to be filled one way or another. In all likelihood it would precipitate a stiff increase in taxes and therefore an immediate transfer of wealth from Millennials to Baby Boomers.
“There is no doubt that the way the state pension age changes were introduced – and particularly the failure to adequately communicate with those affected – left a lot to be desired. However, if the Government was forced into a £181billion retreat the implications for tax and spending policy would be colossal.
“With a No Deal Brexit now firmly on the table with Conservative leadership candidates, a shock state pension bill is absolutely the last thing the Government needs.”
