How much State Pension are you entitled to?
In a new analysis released by the Department for Work and Pensions (DWP) on Friday, the government has estimated the total cost of reversing the state pension age changes for women back to 60 between now and 2025/26.
The estimated cost, rounded to the nearest £100 million and represented in 2018/2019 price terms, stands at £188.4 billion for women.
It would also cost £9.9 billion for the changes for women to be reversed in other pensioner benefits.
This would be offset by savings of £16.9 billion in working age benefits, bringing the total estimated cost to £181.4 billion.
It would cost a total of £33.8 billion for the changes to the state pension age for men over the period of 2010/11 to 2025/26 to be reversed.
A previous cost estimate by the DWP, published in 2016, said that the cost of undoing the changes for women between 2010/11 and 2020/21, would be £77 billion.
State pension age: The estimated amount it would cost to reverse changes for women has been updated
The DWP said the reason for the difference is due to the different time periods assessed, it did not include pensioner benefits, such as Pension Credit and Winter Fuel Payment, nor any savings from working age benefits, and didn’t assume any uprating of state pension payments.
Additionally, the former figure was calculated before the new state pension was introduced, was estimated in 2015/16 price terms, and the latter estimations are based on updated data and assumptions.
The campaign group Backto60 sought a judicial review into the changes to the state pension age for women, which took place last week at the High Court in London.
Michael Mansfield QC told the hearing: “Although the object of the exercise was intended to be equalisation of treatment, in fact what has happened is the reverse.”
Sir James Eadie QC, representing the Department for Work and Pensions (DWP) argued that the changes had been intended to “equalise the state pension age between the sexes” and “to ensure intergenerational fairness as between those in receipt of state pensions and the younger taxpayers funding them.”
He added that the aim to increase the state pension age for both men and women to 66 was to “make pensions affordable … and to control government expenditure at a time of great pressure on public finances”.