Asked by: Damien Moore (Conservative - Southport)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what assessment he has made of the potential implications of the state pension rise from April 2024 for the sustainability of pension funding.
Answered by Paul Maynard - Parliamentary Under-Secretary (Department for Work and Pensions)
The new State Pension was introduced in April 2016 with the aim of providing a clearer, sustainable foundation for State Pensions for decades to come.
Each year, the Government Actuary’s Department publishes a report showing the impact of uprating decisions on the National insurance Fund. The most recent report in January this year took into account the 8.5% increase in the basic and new State Pensions which will come into force from 8 April. The assessment was that the Fund would have enough money to self-finance for at least the next five years. HM Treasury has the ability to top up the National Fund from the Consolidated Fund when needed, even if receipts do not match expenditure. The report said that a Treasury Grant would not be needed in the next five years.