TUC urges shelving of State Pension age rise to 67

The Trades Union Congress has called for the legislated increase in the State Pension age to 67, due between 2026 and 2028, to be shelved, in its response to the government's second State Pension age review, published on 30 June 2022¹. The TUC also recommends that the State Pension age "should be frozen at its current level of 66" and that responsibility for recommending future changes should pass to a Pensions Commission with commissioners drawn from employers, trade unions and independent experts¹.

The submission argues that slower improvements in longevity make the current timetable incompatible with the government's stated aim of keeping the proportion of adult life spent in receipt of the State Pension stable at one third¹. It cites ONS central projections showing that projected life expectancy at 67 in 2038 has fallen from 23.1 years to 20.7 years between 2014 and 2020, and that projected life expectancy at 68 in 2055 has fallen from 24.0 years to 21.2 years¹. According to analysis from LCP cited in the response, maintaining the one third ratio would require delaying the increase from 66 to 67 scheduled for 2026-28 by 23 years¹.

The TUC points to differences in life expectancy between areas, saying life expectancy at birth fell by 6 years for men and 4.8 years for women in the most deprived decile, and that women in the second, third and fourth most deprived deciles saw falls of 1.2 years¹. It contrasts the value of working age benefits with Pension Credit, noting that Job Seekers Allowance is £77 a week while Pension Credit for a single person is £182.60¹. It also says individuals should get at least 10 years' notice of any increases to their State Pension age¹.

On work, the TUC estimates there are now 3.6 million people in insecure work in the UK, and says workers only have the right to request flexible working after 26 weeks with an employer, with one in three requests turned down¹. It cites an ONS study of older people who left the labour market during the pandemic, in which flexible working was the most important aspect of choosing a new job (36%), followed by working from home (18%) and something that fits around caring responsibilities (16%); 69% wanted a part time job and just 9% wanted a full-time job¹. It also cites Department for Education figures showing almost half (48%) of all teachers accessing the Teachers' Pension Scheme for the first time in 2020/21 retired before the State Pension age, up from 43% in 2018/19¹.

The response also covers workplace pension saving, recommending that the auto-enrolment earnings threshold be removed, the Lower Earnings Limit phased out and the age threshold lowered to 18, and that the government set out a plan to increase minimum employer contribution rates from the current rate of 3%¹. It says the link between the State Pension age and the normal retirement age in public service pensions, and the minimum normal retirement age for all workers, should be broken¹.

Why it matters for households

The State Pension age is currently 66, and the increase to 67 is legislated to take effect between 2026 and 2028¹. Anyone born in the affected cohorts would see the date they can claim a State Pension move if the timetable is changed, and the TUC's proposal would leave it at 66¹. The submission also proposes early access to an unreduced State Pension for those unable to work to State Pension age because of ill health, caring responsibilities or long-term unemployment, and a lower eligibility age for Pension Credit¹. The gap between working age benefits and Pension Credit that the TUC sets out, £77 a week against £182.60, is the difference in income it says people face if they must claim working age benefits for longer¹. The TUC's own figures on life expectancy by deprivation decile indicate that the effect of any increase would not be felt evenly¹. The response is a consultation submission, not a government decision, and no change to the State Pension age has been announced.

What happens next

The TUC's response was published on 30 June 2022 as part of the second State Pension age review¹. The government's response to the review, and any decision on the 2026-28 increase, has not been reported in the material available.