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Flat-rate state pension to be linked to longevity

Flat-rate state pension to be linked to longevity

The government’s plans for a £140-a-week flat-rate state pension will include linking the pension age to life expectancy, according to the Financial Times.

The longevity link represents the price of chancellor George Osborne’s support for the flat-rate state pension, according to the paper.

It said Osborne had been wrestling with welfare secretary Iain Duncan Smith over the reforms, insisting they are cost neutral. A link between pension age and life expectancy would keep a lid on the long-term cost of the reforms.

A white paper on state pension reform had been promised this summer, but was delayed after concerns from Osborne and prime minister David Cameron over the cost of the plans. It is now expected to be published next month.

Osborne had promised a link between the state pension age and longevity in the Budget this year.

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