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Ahead of a review scheduled for next week, Jeremy Hunt hinted that the public pension age may need to be raised to cut pension costs and take into account increased life expectancy. .
The government is considering whether the age at which people receive their pension should be raised to 68, sooner than the current plan.
And the prime minister told parliamentarians that “fiscal sustainability” would play a key role in the decision, the strongest hint yet that tax increases could be accelerated.
He said in the House of Commons: taxpayer. ”
Asked if he could rule out the possibility of delaying the date of receiving pensions for current workers, Hunt said: Also look at life expectancy. ”
The decision, which by law must be announced within seven weeks, is understood to have caused tensions between the Ministry of Finance and the Ministry of Labor and Pensions over whether to prioritize finances or maximize the welfare of pensioners. .
The current national pension age of 66 will be raised to 67 in 2028, and again to 68 in the mid-2040s. Life expectancy is now growing slower than previously expected, prompting campaigners to hold off on raising the state pension age.
In a session of evidence before the House of Commons on Tuesday, Mr Hunt said the aging of the UK population would mean a smaller proportion of people working, and to explain that it needs to be done: It will be higher than expected,” he warned. Provide more services for seniors. But he added: “I don’t think it’s necessary to say that a smart approach to economic growth will inevitably result in a high-tax society.”
The prime minister also tried to allay concerns about the health of UK banks following bank failures in the US and Switzerland. He told MPs: Even before the financial crisis of 2008, we will continue to monitor the situation closely. ”
Asked by others whether the city is resilient enough in the face of global instability, Hunt said: higher interest rates. And that requires global coordination and we must remain vigilant. ”