Select Committee Chair Debbie Abrahams has issued a warning to Andy Burnham's government over the state pension age change, highlighting that many people remain unaware of the planned increases. Speaking in the Commons, Abrahams addressed the Department for Work and Pensions (DWP) timetable for raising the state pension age.
Current Phased Increases
Abrahams stated: "Many—but not all—know, the state pension age has started to rise from 66 as of April this year, and will reach 67 by April 2028." The increase to 67 is being phased in. The first cohort affected, people born between 6 April and 5 May 1960, now have a state pension age of 66 years and one month. Those born between 6 March 1961 and 6 April 1977 will have a state pension age of 67.
Awareness and Concerns
She commented: "Not everybody is aware of the increase to 67, and we know from previous pension policy the impact that can have on people." Abrahams also expressed concern about what she termed "irresponsible rumours" of a potential acceleration of the further increase in the state pension age. She said: "That fear-mongering is unhelpful, to say the least, and is untrue." She urged the new Burnham Cabinet and administration to take action to address the issue.
Two Tiers of State Pension
There are two state pensions. The old State Pension applies to people who reached State Pension age before 6 April 2016 and had two tiers: the basic State Pension, a contributory flat-rate benefit based on National Insurance (NI) records. The full amount in 2026/27 is £184.90 per week. It also included the additional State Pension, which depended on earnings or deemed earnings over working life since 1978. Individuals could be contracted out of this into a workplace pension, in return for which they and their employer paid a reduced rate of National Insurance.
Government Response
Andy Burnham has confirmed that Pat McFadden and Torsten Bell will remain as DWP and pensions ministers respectively, with Sir Stephen Timms serving as one of the ministers for the pensions team. The government faces pressure to ensure clear communication and avoid further uncertainty for those approaching retirement age.
