Particle.news
Download on the App Store
15 ARTICLES
·
5d ago

DWP Issues Cohort Letters for State Pension Age Rise as New Commission Begins Work

The roll-out comes as the revived Pensions Commission starts its statutory review of future age increases; the Treasury has cited cost and complexity in refusing to exempt state pensions from income tax.

Image
Image
Image
Image

Overview

  • DWP has begun sending letters to those born between April 1960 and March 1961, notifying them that their state pension age will phase in at 67 and delaying some payments until 2028.
  • Current legislation sets the state pension age to rise from 66 to 67 between 2026 and 2028 and from 67 to 68 between 2044 and 2046, with another review of the 68 threshold required within two years of the next Parliament.
  • Work and Pensions Secretary Liz Kendall has relaunched the Pensions Commission and initiated the third statutory review to determine how and when to raise the pension age, explicitly excluding the triple-lock guarantee from its scope.
  • The commission’s analysis will draw on independent reports by Dr Suzy Morrissey and the Government Actuary, as well as Baroness Neville-Rolfe’s 2022 recommendations on potentially raising the age to 69 or beyond.
  • HM Treasury formally rejected a petition backed by over 14,000 signatures to make state pensions tax-exempt, warning that exemption would be costly and would complicate the income tax system.