Thousands of women who were facing a two year increase to the state pension age will have their wait cut by six months, promises Welfare Secretary Iain Duncan Smith.
After weeks of campaigning by charities and campaign groups for the over 55s, the government reportedly modified the pension proposals because Prime Minister David Cameron felt ‘uncomfortable’ at the ferocity of protests.
The government is now amending The Pensions Bill currently going through Parliament.
The bill proposes that the state pension age for women will rise to 65-years-old by November 2018 and rise to age 66 for both men and women by April 2020.
The amendment will now schedule that the state pension age for men and women should be 66 by October 2020.
Smith said: “We have listened to the concerns of those women most affected by the proposed rise in state pension age to 66 and so we will cap the increase to a maximum of 18 months. We have always made clear that we would manage any change fairly and ensure any transition is smooth.”
Two of the groups leading the protests against the state pension age changes for women welcomed the amendment.
AgeUK charity director Michelle Mitchell said: “They have listened to our concerns and we appreciate that it is a significant financial commitment from the government at a difficult time. This will give a much needed respite to all the women who would have had to work an extra two years.”
Spokesman for Saga said: “The equalisation of the state pension age is the right thing to do, as is giving people time to prepare and plan for retirement.”
The government wants to increase the state pension age to 66 because of a dramatic rise in life expectancy and the need to ensure that no unfair financial burden is placed on the next generation.
Minister for Pensions Steve Webb said: “We want to end the uncertainty for women waiting to learn what their state pension age is and we will be communicating with those affected so that they can properly plan for their future.”
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