Young families to pay price for bad Govt pension plans

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17 Jul, 2017

Young families to pay price for bad Govt pension plans

Britons face even more raises to the official Government retirement age or their children will be hit with higher taxes and fewer benefits, the head of the Work and Pensions committee has warned.

Speaking to the Daily Express, MP Frank Field raised the prospect of select committees having greater powers, including to introduce bills, as he blasted the Government’s decision to maintain the state pension triple lock.

There is “no free ride” stated the chair of the influential pensions committee, after the Conservative and DUP deal kept the state pension triple lock, which guarantees income rises by at least 2.5% each year.

The ever-increasing costs of Government-backed retirement payouts will have to be paid by either pushing back the official retirement age, or by lowering welfare benefits of working age people, according to the MP whose reappointment as the chair of the pensions committee was confirmed last week.

Despite Jeremy Corbyn's campaign promise to keep the triple lock, the Labour MP said he is "very happy" to keep pushing for the state to drop the guarantee.

He said: "I'm sure pensioners would prefer to retire earlier rather than those who are retired to keep the triple lock - this has never been explained to them."

Mr Field said there should be a double lock – where income rises either with inflation or average earnings – a policy that was expected to be introduced by the Theresa May’s Government, yet never came through.

The growing expenses required to maintain the current trajectory for state pensions could force the retirement age above life expectancy in parts of the country by 2060, according to an analysis released by the work and pensions committee earlier this year.

The MP is expected to maintain scrutiny on state pensions’ lack of sustainability.

According to Mr Field, the scheme “is not fair”, as instead of addressing the retirement age conundrum, it’s likely the Government will pass on the costs to younger families.

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