LONDON – The new Labour premier Andy Burnham, who will take office on Monday, will have to make difficult but no longer avoidable decisions. The imperative is to reduce public spending and in particular the cost of state pensions, which has risen unsustainably and this year exceeded £146 billion, more than double the Defense budget. The Department of Work and Pensions estimates that without reform, spending would rise to £169 billion by 2030.
Read more Anas, Safe Estate 2026 plan. Exodus and roadworks: everything you need to know
Ask the Sun
The questions are automatically suggested by 24Ore AI
based on the content viewed.
A first step was indicated yesterday by the British Treasury: the age at which one can receive the state pension will be increased from the current 66 to 68 years starting from 2037, instead of 2044 as provided by the 2007 Pensions Act, and then will rise further to 69 years around 2070.
The seven-year advance affects about five million people between 49 and 55 years old who will have to work one more year before being entitled to the state pension. The Government’s goal is to “make state pensions sustainable in the long term,” said Torsten Bell, undersecretary responsible for pensions.
Read more Ok of the Chamber to the Stabilicum, from the prize to the blocked lists: all the news of the law …
Given the increase in life expectancy, the gap grows between an increasing number of people receiving the monthly allowance paid by the State and a decreasing number of workers whose contributions finance the system. The latest report from the Office for Budget Responsibility (Obr), the independent guardian of public accounts, highlights that if the 2044 date were maintained, the cost to the Treasury would be £6 billion per year. To prevent it from becoming too burdensome for public finances, it is therefore necessary to increase “the active participation of people between 65 and 69 years old in the labor market,” explains the Obr.
Experts in the field have urged the Government to clarify the timing and methods of changes to the state pension to give certainty to today’s fifty-year-olds, enabling them to plan how much to save. The Treasury’s announcement is currently a statement of intent that must be approved by Parliament to become law, amending the currently effective Pensions Act. The Government will have to present and have the law approved by 2027, as the rules require at least ten years’ notice for any change to the retirement age.
Read more Regione Lombardia funds the hiring of PhD graduates in SMEs with the Talenti call
