State pension age change to 65 plan update as DWP issues statement | Personal Finance | Finance
DWP Secretary of State Pat McFadden (Image: Getty Images)
Backing has surged for a fresh campaign to overturn government policy and bring the State Pension age back down to 65. The State Pension age commenced its rise from 66 in April 2026 and is scheduled to hit 67 by April 2028.
The UK Work and Pensions Committee has put forward serious concerns regarding the consequences for people unable to remain in employment, emphasising considerable regional disparities in quality of life around the UK. A petition has been launched on the Parliament website and this week sailed past a crucial threshold that compelled the Department for Work and Pensions to provide an official response.
The DWP has now delivered its response – it brings disappointing news – but confirmed a review is presently ‘underway’.
Initiated by Michelle Gill, the petition has gathered 80,000 signatures. Should it reach 100,000 supporters, it will be examined for a parliamentary debate where ministers will be required to outline their stance and any prospective modifications.
The petition states: “Reduce the state pension age to 65. We believe this could mean people can retire with dignity and avoid hardship. We also think it could free up jobs for younger workers entering the labour market.”
“Many aged 65-67 face poor health, caring pressures, and limited work options, which we think is unfair.”
The Work and Pensions Committee has stated that substantial shifts in people’s health and wellbeing must be taken into account before the change is implemented. A report examining pension age rises released this summer noted: “These include: an increase in the percentage of people aged 60 to 64 reporting a work-limiting health condition (from 28% to 31%). And healthy life expectancy at birth – an indicator of changes in population health – fell by two years over the decade to 2024, with inequalities between the least and most deprived areas widening. In England, it is highest in Richmond upon Thames, where people can expect to live 70 years in good health, and lowest in Blackpool and Hartlepool, at around 51.”
The report highlighted that the previous government’s decision to increase the pension age had serious consequences: “In addition, we now have a clearer picture of the likely impact of the increase to 67. The last rise – from 65 to 66, between late 2018 and 2020 – caused the income poverty rate among 65-year-olds to more than double. The fact that those affected will be a year older, leads us to fear that the impact may be even greater this time. Half of pre-pensioners (aged 60 to 66) in the lowest income quintile are already frail, and so vulnerable to significant deterioration in their physical and cognitive functioning.”
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The committee warned that the government ‘must not allow to happen’ an extended period without financial assistance for 66-year-olds who are unable to continue working until the age of 67. It stated: “The government must not just allow that to happen. We heard an increase in the level of Universal Credit in the year before State Pension age would cost ยฃ600 million a year, a small proportion of the significant savings-ยฃ10.5 billion a year once the State Pension age is 67, compared to if it had stayed at 66.”
The committee argues that the Government ought to consider increasing universal credit for those aged 66 in order to shield them from financial hardship arising from the “lottery of life” as the state pension age climbs to 67. It highlighted that a growing number of 66-year-olds may find themselves dependent on the standard universal credit payment of approximately ยฃ425 per month for a significant period of time, even as their health deteriorates.
The DWP stated in response to the petition: “There are no plans to reduce State Pension age to 65. We are fortunate today that more people are reaching older ages: life expectancy has risen rapidly over the past century, driven by breakthroughs in medical treatments and generally healthier lifestyles. Office for National Statistics life expectancy projections show that in 2026, men aged 66 in the UK can be expected to live on average a further 19.3 years, and women aged 66 a further 21.9 years; by 2046, it is projected that this will have increased by an additional 1.6 years. State Pension age policy takes account of the fact that people are living longer and our society is ageing.
“There are no plans to reduce State Pension age to 65. We are fortunate today that more people are reaching older ages: life expectancy has risen rapidly over the past century, driven by breakthroughs in medical treatments and generally healthier lifestyles.
“Office for National Statistics life expectancy projections show that in 2026, men aged 66 in the UK can be expected to live on average a further 19.3 years, and women aged 66 a further 21.9 years; by 2046, it is projected that this will have increased by an additional 1.6 years. State Pension age policy takes account of the fact that people are living longer and our society is ageing.”
Addressing the review, it stated: “The Third State Pension age Review is underway and will decide what State Pension age is appropriate for future decades, balancing considerations of fairness and sustainability. It will consider a wide range of evidence, including ONS life expectancy projections, findings from the Government Actuary, independent reports from Dr. Suzy Morrissey and the Pensions Commission, and lessons from previous increases.
“The Government recognises people aged 50 and over can face a range of barriers to entering, remaining in, or returning to work, including ill health, disability, caring responsibilities, menopause, and outdated skills or qualifications.”
The petition can be viewed and supported, along with the complete DWP response, here.