State pension celebrates 100th birthday
Friday, 01 Aug 2008 00:06
State pension is 100 today
It is the 100th anniversary of the state pension and the government says new reforms mean it will still be going strong in another 100 years.
However, research suggests only half of people surveyed believe the state pension will still be around when they retire, with 44 per cent sure it won't be.
James Purnell, Secretary of State for Work and Pensions, said: "Today the challenges are very different from 1908 when just one in four survived to collect the first state pension. In contrast, one in four babies born today will go on to live to 100.
"The impact of this is stark. Current trends suggest the UK will have its first 120 year old in the early 2060s, if not before. That means she is already drawing her state pension and will do so for half her lifetime."
The government believes its plan to restore the earnings link to the basic state pension means that by 2050 it will be worth about double what it is today (in 2008-09 prices). However, the state pension age would be gradually increased to 68 by 2046 to pay for this.
The Conservatives also believe the state pension needs reform.
Shadow Secretary of State for Work and Pensions, Chris Grayling said: "The state pension is an essential part of modern life in Britain. Our plan is to restore the earnings link and improve the level of payments to our pensioners."
The government admitted that increasing food and fuel prices were putting pressure on many of today's pensioners and said tackling poverty amongst today's pensioners continued to be a top priority.
Mr Purnell said: "From October, we will be making it simpler and more automatic to claim pension credit, housing benefit and council tax benefit in one call.
"We have amended the current Pensions Bill to allow secure data-sharing with energy suppliers to help reduce the bills of older people receiving pension credit. And in winter 2008-09 there will be an extra £50 on top of the winter fuel payment for households with someone over 60, and an extra £100 for over-80s households."