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Latest NewsPay & benefitsPensions

Prime Minister set to pledge welfare reform

by Mike Berry 11 Oct 2004
by Mike Berry 11 Oct 2004

Tony Blair is set to promise major welfare reform ahead of a report setting out the full extent of the pensions crisis, according to newspaper reports.


Britons are saving £57bn a year too little, according to a leak from the Pensions Commission, due to publish its report tomorrow. That is double previous estimates of the shortfall.


It poses an “unpalatable choice” between higher taxes, a big increase in private savings or later retirement to plug the gap, according to The Sunday Times leak.


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New pensions secretary Alan Johnson has warned the findings will present “stark choices”.


The Prime Minister is expected to pledge fundamental welfare changes, including cutting spending on incapacity benefit, in his speech to the Institute for Public Policy Research in London.

Mike Berry

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