DWP told to introduce state pension ‘means test’ to ‘guarantee its survival’

Craig Mackinlay, writing in the Telegraph, called on the Labour Party government and the DWP to make changes.

DWP told to introduce state pension ‘means test’ to ‘guarantee survival'(Image: )

The Department for Work and Pensions has been told to “means test” the state pension to “guarantee” its survival. Craig Mackinlay, writing in the Telegraph, called on the Labour Party government and the DWP to make changes.

Mackinlay of Richborough is a member of the House of Lords. He was previously the MP for South Thanet and served on the DWP and Public Accounts Select Committees. He is also a chartered accountant and tax adviser.

He explained: “My solution was a “less for longer” system that would give early access to the state pension but at a lower level, based on actuarial life expectancy.”

READ MORE Four groups of state pensioners not getting £575 Triple Lock hike in April

He went on: “Without question, retirement poverty has significantly reduced under the operation of the “triple lock” and the new, post-2016 state pension. The effect of auto-enrolment, building private provision for millions, is yet to be felt.

“Can the increasingly top-heavy population age pyramid – which is heading towards two workers per pensioner (vs 4:1 in the 1960s) – generate enough tax to support the retired?

“Is the current plan for a retirement age of 68 beyond 2046 enough? What about the escalating cost of healthcare across an ageing population?

“So what will Rachel Reeves do? She’s currently facing the conundrum of what to do about tax from April 2027 when the state pension will exceed the frozen personal allowance of £12,570 a year.

“After 100 years of universality, perhaps means-testing will be her wizard solution. Doing so could become another uniquely bad British incentive to drop out and rely on the state.”

Your State Pension amount depends on your National Insurance record as it stands.

You can check your State Pension forecast to find out how much you could get when you reach State Pension age. It also shows your National Insurance record.

The full rate of new State Pension is £230.25 a week.