20 million – mainly low-earners – to lose out under pension reform
Spoiler:Show“Within the private sector, it’s the low paid – those earning less than around £15,000 – that will be hit hardest. Gordon Brown made changes to the way the low paid accrue state pension, which resulted in employees with earnings below around £15,000 accruing relatively large amounts.
“Under the new rules, this population will be significantly affected. For example, for someone earning around £15,000 with a working life of 20 years, they will be looking at a drop of around £1,200 per annum. If that same person worked for 50 years they will be looking at £2,500 less per annum in state pension than they would have been entitled to under the old system.” Noon said more people would be affected than by cuts to tax credits. “With tax credits we’re seeing around three million people lose out, with a £4bn saving for the Treasury. With state pension changes, we’re seeing 20 million people lose, with an £8bn saving for the government.
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