BRITAIN WOULD face a pensions crisis unless the government restored the earnings link to the basic state pension by 2012, John Hutton, the work and pensions secretary, warned yesterday, reports The Financial Times .
According to the paper, Hutton’s remarks ahead of the publication of a white paper on pensions reform, expected on Thursday, will be seen as an attempt to firm up an agreement by ministers to restore the link to average earnings before the end of the next parliament. Tony Blair and Gordon Brown have reached a deal to restore the earnings link - one of the central recommendations of Lord Turner's Pensions Commission - from 2012 instead of 2010 to help to meet the Treasury's concerns about affordability. Under the deal, the date could slip to 2015 if the Treasury still deemed it to be too...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
