Prime Minister Andy Burnham has been urged to introduce a new perk for state pensioners who sacrifice their state pension, with a Labour-affiliated think tank proposing an honour for wealthy retirees who give up their payments for at least three years.
Compass, backed by Mr Burnham's close ally Neal Lawson, has suggested a new Pensions Sacrifice OBE scheme as part of a report containing 100 recommendations for the Prime Minister's first 100 days in office. The proposal comes as Mr Burnham and his Chancellor John Healey prepare their first Budget on October 28.
Pensions Sacrifice OBE scheme details
The scheme would allow wealthier pensioners to voluntarily forgo their state pension for a minimum of three years in exchange for an honour, according to Compass. The think tank said the policy would be "modelled on the altruism of groups like Patriotic Millionaires" – which describes itself as a "nonpartisan organisation of high-net-worth individuals who advocate for higher taxes on the wealthy, better wages for workers, and a reduction in economic inequality".
Patriotic Millionaires' mission is to "leverage the voice of wealth to build a more just, stable, and inclusive economy and to accelerate the end of extreme wealth", the organisation says.
Public reaction to the proposal
The proposal has drawn mixed reactions from the public. One Brit responded: "A load of think tanks have done the math and proposed fully costed ways to make the SP sustainable. The cowards in government just refuse to take action because they know they will take a kicking by the electorate for ditching the 'triple lock'."
A second person said: "40 years ago we all believed the state pension wouldn't be there as well. That belief caused some people I know to just not bother saving for a pension, yes, I realise that's ridiculous. Anyway, the state pension will be there when you retire. What you can't say for sure is what it'll look like. My guess is they will eventually remove the triple lock completely and let the pension erode away. When we get too many pensioners starving they'll introduce a means tested pension."
Context and next steps
The Compass report is one of several policy documents circulating as Mr Burnham's government prepares its first Budget. The Prime Minister and Chancellor have yet to respond publicly to the Pensions Sacrifice OBE proposal. The scheme would require legislative changes to the honours system and the state pension framework, and its feasibility remains uncertain. The Budget on October 28 is expected to address broader fiscal challenges, including the sustainability of the state pension amid demographic pressures.
