X

This is not a paywall.

Register for free to continue reading.

The news sucks. But your reading experience doesn't have to. Help us improve that for you by registering for free.



Please create a password or click to receive a login link.


Please enter your password or get a login link if you’ve forgotten


Open Sesame! Thanks for registering.

First Thing, Daily Maverick's flagship newsletter

Join the 230 000 South Africans who read First Thing newsletter.

A South African Hero: You

There’s a 99.7% chance that this isn’t for you. Only 0.3% of our readers have responded to this call for action.

Those 0.3% of our readers are our hidden heroes, who are fuelling our work and impacting the lives of every South African in doing so. They’re the people who contribute to keep Daily Maverick free for all, including you.

We need so many more of our readers to join them. The equation is quite simple: the more members we have, the more reporting and investigations we can do, and the greater the impact on the country. We are inundated with tip-offs; we know where to look and what to do with the information when we have it – we just need the means to help us keep doing this work.

Be part of that 0.3%. Be a Maverick. Be a Maverick Insider.

Support Daily Maverick→
Payment options

UK pushed 100,000 people into poverty by lifting pensio...

Business Maverick

Business Maverick

UK pushed 100,000 people into poverty by lifting pension age

WALSALL, ENGLAND - SEPTEMBER 08: A pensioner holds his walking stick on September 8, 2014 in Walsall, England. Britain is facing multiple problems stemming from an increase in the elderly proportion of its population, including increasing health care costs, strains on its social security system, a shortage of senior care workers and challenges to the employment market. (Photo by Christopher Furlong/Getty Images)
By Bloomberg
20 Jun 2022 0

Britain raised its state pension age to 66 from 65 between late 2018 and the end of 2020. That meant about 700,000 people on the brink of receiving benefits missed out on income of about £142 ($174) a week.

The UK’s decision to raise the age at which people can claim pension benefits pushed almost 100,000 more people into poverty – one-in-seven of those affected by the change.

The finding, in a study by the Institute for Fiscal Studies and the Centre for Ageing Better, puts pressure on the government to extend the social safety net for those who are hit hardest.

It showed that people with lower levels of education and living in rented accommodation were most likely to suffer the biggest living standards decline and adds to broader concerns about a cost-of-living squeeze on household incomes.

“These statistics are shocking and show that the number of 65-year-olds in absolute poverty rose from one-in-10 before the state pension age increased to almost one-in-four just two years later,” said Emily Andrews, deputy director of the Centre for Ageing Better.

Britain raised its state pension age to 66 from 65 between late 2018 and the end of 2020. That meant about 700,000 people on the brink of receiving benefits missed out on income of about £142 ($174) a week.

About 9% of those people, or 60,000, decided to stay in their jobs longer. The government saved about £4,9 billion a year as a result of the change through higher tax revenue and lower benefit payouts, which is about 5% of annual government spending on pensions, the IFS said.

“Increasing the state pension age is a coherent government response to increasing life expectancy,” said Laurence O’Brien, research economist at the IFS. “But it does weaken household budgets.” BM

 

 

 


Gallery

Comments - share your knowledge and experience

Please note you must be a Maverick Insider to comment. Sign up here or sign in if you are already an Insider.

Everybody has an opinion but not everyone has the knowledge and the experience to contribute meaningfully to a discussion. That’s what we want from our members. Help us learn with your expertise and insights on articles that we publish. We encourage different, respectful viewpoints to further our understanding of the world. View our comments policy here.

No Comments, yet

Please peer review 3 community comments before your comment can be posted