Will Labour means test the state retirement pension?

 

Labour and the Conservatives have talked about means testing the State Retirement Pension (SRP). They claim that it's not affordable or sustainable in the long run. How true is this?

The British SRP, is one of the least generous state pensions in Europe. People who reached the state retirement age before April 2016, receive the old state pension of £176.45 a week, hardly enough to cover the rent these days. People who receive the full new state pension are entitled to £230.25 a week, which is less than half the annual salary of someone aged over 21 and in receipt of the National Minimum Wage.

The state retirement age is to increase to 67 next year. Many people will not live enough to claim the SRP and this includes people who have worked in manual occupations. Not very long ago, women retired at the age of 60 and we're entitled to the SRP. How much money did the British government save by increasing the state retirement age for women? Women now have to be 66 years old before they qualify for the SRP. 

Most social security spending in the UK goes on the SRP, but according to the National Institute of Economic and Social Research, the UK ranks among the least generous of OECD countries for welfare generosity. According to the Institute, the poorest UK households are worse off than those in Slovenia and Malta.