PLAN TO SCRAP UNIVERSAL STATE PENSION ‘DANGEROUS AND DEEPLY UNFAIR’

Later Life Ambitions (LLA) has criticised proposals from the Centre for a Better Britain to replace the universal State Pension, over time, with a means-tested safety net. The report says entitlements already accrued would be protected, while future retirees would become increasingly reliant on private investment accounts.

The report also proposes closing public service pension schemes to new entrants, including the Local Government Pension Scheme and schemes for teachers and civil servants. LLA believes these pensions recognise the contribution of public servants and form an important part of the employment offer that helps attract and retain them.

Eamonn Donaghy, Chief Executive Officer of the National Federation of Occupational Pensioners and a spokesperson for LLA, said: “Abolishing the universal State Pension would be dangerous. It would leave future retirees more exposed to the performance of their investments, without the dependable foundation of income people can plan around.

“It would be deeply unfair to those who have spent years in low-paid work or caring roles and had less opportunity to build substantial savings.

“Closing public service pension schemes to new entrants would be another serious mistake. These pensions help attract and retain people in essential roles.

“For the police, fire and rescue services, and armed forces, recruitment and retention also matter for operational capability and the protection of the public. That concern cannot be set aside in a discussion about pension costs.

“The report says existing entitlements would be protected, but that does not answer what younger people entering these careers could expect in retirement. They deserve a dependable State Pension and access to good occupational pensions.”

LLA calls on politicians across parties to protect the State Pension, maintain the triple lock and defend public service pension provision.