Categories: Pensions General
Topics: pension reform| state pension| Womens Pensions
Ministers have delayed the rise in the state pension age (SPA) to 66 by 2020 for women after widespread protest against the reform.
After months of campaigning from Labour and trade unions, the Department for Work and Pensions (DWP) has presented a compromise.
Under the new proposals, the SPA will still rise to 65 for men and women in 2018.
However, the second rise to 66 will be delayed by six months, from April 2020 to October 2020.
This means no women will have to wait longer than 18 months extra to claim their pension, instead of the potential two-year delays created by the original reforms.
The delay will cost the government around £1bn.
Iain Duncan Smith, secretary of state for pensions, pictured said: "We have listened to the concerns of those women most affected by the proposed rise in state pension age to 66 and so we will cap the increase to a maximum of 18 months.
"We have always made clear that we would manage any change fairly and ensure any transition is as smooth as possible."
Pensions ministers Steve Webb said: "We want to end the uncertainty for women waiting to learn what their State Pension Age is and we will be communicating with those affected so that they can properly plan for their future."
The compromise comes after a group of six Liberal Democrat MPs tabled amendments that would delay the rise by six months.
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