The House of Lords has rejected an amendment to ensure increases to the state pension age (SPA) do not exceed one year.
Lords yesterday rejected an amendment submitted by Labour peer Lord McKenzie which would have ensured nobody will have more than one year added to their SPA.
However the Lords voted instead for the government's amendment, which ensures the rise will extend the SPA by no more than 18 month.
Originally, the government proposed to raise the age at which people can start withdrawing their state pension to 66 by 2020, beginning the rise in March of that year. Instead, it will begin the rise in October 2020.
Lord McKenzie's amendment would have delayed raising the SPA until after 2020, so it would have reached 66 by 2022, and cost an additional £11bn.
The government's amendment will cost the Exchequer around an extra £1.1bn.
Lord Freud, the minister for welfare reform at the Department for Work and Pensions (DWP), said: "We have listened, we did reconsider, and we have done what is right."
The Lords haved approved the bill in its final format. It can now receive the Royal Assent.
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