Pensioner Poverty: State Pension Age

2. What assessment he has made of the potential impact of increasing the state pension age on trends in the level of pensioner poverty.

My review of the state pension age is under way. The review will consider a wide range of evidence, including two independent reports, to assess whether the rules on pensionable age remain appropriate.

I hope that the evidence that the Secretary of State examines includes analysis by Age UK that 1.5 million pre-state pension age households have no savings at all. Age UK warns that accelerating the rise of the state pension age

“will condemn millions to a miserable and impoverished run up to retirement”.

Instead of risking that increase in pensioner poverty, should he not establish an independent pensions and savings commission to ensure that pension policies are fit for purpose and reflect the demographic needs of different parts of the United Kingdom?

The two reports to which I have just referred are independent—from the Government Actuary’s Department, on matters such as life expectancy; and from Baroness Neville-Rolfe, on the metrics that should be taken into account in determining when the next increase in the state pension age should occur. We certainly take into account issues such as pensioner poverty, on which we have an excellent record. In fact, relative pensioner poverty before housing has halved since 1999, and there are 400,000 fewer pensioners in absolute poverty—that is before or after housing—compared with 2009-10.

Is it realistic to continue to expect people to spend a third of their lives on a pension?

I have great respect for my right hon. Friend, but I am afraid that although he tempts me to answer that question, I cannot prejudge the decisions that I will take in the review.