Main Content Jump to Footer

Older People and their Families

Evaluation of White Paper proposals for State Pension reform

Wed, 26 July 2006

The Pensions Policy Institute, an independent think tank, has published its commentary on the government’s proposals for reform of the state pension. The report, which is based on work supported by the Foundation, comments on some of the uncertainties in the proposals. It suggests that:

• Most people will have less than £135 a week from the reformed state
pensions - the level illustrated as the likely outcome in the White Paper.
• The White Paper proposals change the overall income distribution of
older people very little, but if anything give more to higher income
people than lower income.
• The White Paper’s estimate of the likely number of people eligible for
the means-tested Pension Credit in future (around one-third) looks to
be at the bottom of a wide possible range.

The PPI’s findings were debated at a recent seminar attended by the pensions minister, James Purnell, and the spokesmen for the two opposition parties. A copy of the press release outlining the report’s findings, and the report itself, can be found on the PPI’s website.

Click here to go to the PPI website page with the downloadable report

Last Updated Thu, 3 August 2006