Expert: Pensions policy is recognising reality

Friday, May 28th 2010

The Basic State Pension (BSP) increase put forward by the new coalition government is a welcome measure, it has been said.

A potential increase in the state pension age has also been suggested by the Conservative-Liberal Democrat alliance, a proposal well received from independent policy adviser Dr Ros Altmann.

Pensions were an important topic during the run-up to the election and Dr Altmann stated reform is required for a sustainable future, including re-building the link between BSPs and earnings.

She asserted if this link had not been broken more than 30 years ago and "the BSP had increased each year in line with earnings, instead of just price inflation, it would now be worth over £140 a week".

This is above the Pension Credit level of £132.60 and "far better than the current mass means-testing regime".

Other measures put forward by the government included the Welfare Reform Bill, which strives to simplify the benefits system and the Financial Services Regulation Bill, which makes the Bank of England a more regulatory force.