The government has responded to the House of Lords Select Committee on Intergenerational Fairness regarding its report on ‘Tackling intergenerational unfairness’.
In relation to pensions, the government rejected the recommendation that the triple lock for the State Pension should be removed and that the State Pension should be uprated in line with average earnings to ensure parity with working people. The government said it is committed to the Triple Lock for the remainder of this Parliament and that the Triple Lock should not be looked at in isolation, with the government having implemented other pension reform measures which seek to ensure fairness between the generations (eg the new State Pension).
The government also rejected the Committee’s recommendation that individuals over State Pension Age should pay National Insurance. The government said that National Insurance Contributions (NICs) operate based on a contributory principle, with individuals contributing during their working lives to help fund the National Health Service (NHS) and support those out of work. Over the State Pension Age, individuals can no longer increase their entitlement to contributory benefits, and the government said that it was therefore fair that it did not charge them NICs.
For further information, see: Government’s response to recommendations.