Flat Rate State Pension Reforms

Last week, it was reported that David Cameron, Prime Minister, has personally intervened in the reform of the State pension system, which would see a flat-rate system adopted.  He was reportedly said to be concerned that millions, many of whom are core Conservative voters, would not benefit from the reforms or, indeed, would be worse off.  Fearing ‘Granny Tax 2’, an article in The Financial Times reported that a rethink had been ordered on a reform that he had previously referred to as ‘the best thing since sliced bread’.

However, later in the week on 20 September 2012, Pensions Minister Steve Webb told BBC’s Daily Politics show that plans for the White Paper in the Autumn were still going ahead.  He mentioned that he had spoken with the Prime Minister and George Osborne, the Chancellor of the Exchequer, and it was ‘going to happen’.  This was a tone he reiterated on Radio 4 when he said that the planned £140.00 per week flat-rate pension would be delivered ‘early in the next Parliament’.

Comment

As we have said before, we look forward to the publication of this White Paper and the opportunity to be able to comment as part of the payroll profession.

Further Information

• Payroll Help 28 August 2012 – The Flat Rate Pension