Latest news with #RMT
Daily Mail
11 hours ago
- Business
- Daily Mail
State pension age 'could have to hit 80' with warnings cost crisis is even worse than feared - as union threatens to take to streets if retirement handouts are delayed
Brits are facing a stark warning today that the state pension crisis could be even worse than feared. Concerns have been raised that estimates by the Treasury's OBR watchdog might be underplaying the challenges posed by life expectancy improvements. According to analysis by consultancy Barnett Waddingham, a more 'cautious' approach would be to assume the longevity gap closes between the poorer and wealthier ends of society. That suggests spending would be the equivalent of £8billion a year higher by the mid-2070s. Maintaining the cost of the state pension at around the current proportion of GDP would then require withholding the payments until people reach 80, rather than 74 as previously mooted. The grim calculations emerged as a union threatened to take to the streets if the government tries to increase the official retirement age more quickly. The Rail, Maritime and Transport union lashed out after a government review was launched this week - although it is not expected to report until the end of the decade. Speculation is mounting about the sustainability of the pensions triple lock, which means the state's old-age payouts rise by whichever is highest out of rates of inflation, earnings or 2.5 per cent every year. A government review published in 2023 indicated that if life expectancy returned to the trajectory expected in 2014 the state pension age could be 71 by the late 2050s The OBR warned earlier this month that the policy could cost three times as much as originally expected by the end of the decade, as the ageing population piles further pressure on public finances. The pension age is already slated to rise to 67 between 2026 and 2028. Currently the legal position is that it will reach 68 from 2044-46. But a previous report by former Tesco director Baroness Neville-Rolfe cautioned that might need to be accelerated. With the triple lock in place it has been estimated the level would have to hit 74 by 2065–67 in order to keep spending at around 6 per cent of GDP. But Jack Carmichael, senior consulting actuary at Barnett Waddingham, said there was a 'very real risk' that the situation would be even worse. 'The OBR's 'Fiscal risks and sustainability' report shows the cost of State Pension as a proportion of GDP doubling over the next 50 years, driven by a growing retirement population relative to the working age population,' he said. 'The OBR's modelling uses a high life expectancy scenario, based on the ONS's definition in their population projections, that results in an additional annual State Pension cost of c£2billion in today's terms. 'It assumes a long-term rate of 1.9 per cent, rather than 1.2 per cent. 'In reality, that sensitivity is too cautious and broad-brush, which underplays the degree of longevity risk in the State Pension system. Mr Carmichael suggested it would be more appropriate to assume 'a closing of the life expectancy gap between the individuals with the lowest and highest life expectancy'. 'Not only does this more accurately capture the financial impact of longevity risk in the UK State Pension system, it is also more likely to reflect healthcare spending priorities over the next 50 years if those living the longest at the moment are assumed to have almost reached the life expectancy cap,' he said. 'Under this alternative life expectancy sensitivity, the annual cost of the State Pension would increase by c£8billion - four times higher than the current model predicts. 'To keep the cost of the State Pension at a similar proportion of GDP would then require a massive increase in the State Pension Age, potentially up to the dizzying heights of age 80.' Dr Suzy Morrissey has been commissioned by Work and Pensions Secretary Liz Kendall to look at the 'factors government should consider' on state pension age. And the Government Actuary's Department has been asked to produce a report on the proportion of adult life in retirement. However, it is understood that final decisions are highly unlikely to be taken until the next Parliament, despite concerns about giving people enough time to prepare for changes. RMT general secretary Eddie Dempsey said: 'The UK state pension is already one of the worst in the entire developed world, which is a direct result of decades of governments transferring both our national and personal wealth to the super rich. 'Any decision to squeeze more out of working people by forcing us to work even longer would be a national disgrace.' He continued: 'Our members work in physically demanding, round-the-clock, safety-critical jobs. 'Many already struggle to reach retirement in good health, especially shift workers. 'Raising the pension age even further isn't just cruel and unnecessary, it's a slap in the face to the very people who keep this country running. 'If this government makes any move to drastically increase the retirement age, we intend to lead our movement onto the streets and will not hesitate to protest nationally and take co-ordinated direct action.'
Telegraph
14 hours ago
- Business
- Telegraph
RMT union threatens strikes if Labour raises state pension age
A rail union boss has threatened to launch national strikes if Labour raises the state pension age. Eddie Dempsey, general secretary of the National Union of Rail, Maritime and Transport Workers (RMT), warned the Government he would 'lead our movement onto the streets and will not hesitate to protest nationally and take coordinated direct action'. His threat came after Labour opened the door for the statutory retirement age to be raised by announcing a new pensions review on Monday. The move, unveiled by Liz Kendall, the Work and Pensions Secretary, raises the prospect that six million Britons could be forced to delay their retirements. On Thursday, Mr Dempsey warned: 'If this Government makes any move to drastically increase the retirement age, we intend to lead our movement onto the streets and will not hesitate to protest nationally and take coordinated direct action. 'The UK state pension is already one of the worst in the entire developed world which is a direct result of decades of governments transferring both our national and personal wealth to the super rich. 'Any decision to squeeze more out of working people by forcing us to work even longer would be a national disgrace.' Instead of raising the state pension age, Mr Dempsey said the Government should impose a wealth tax on assets of over £2 million. Although the RMT is not formally affiliated to Labour, the union commands a largely public sector membership numbering around 83,000 people. Under current plans, the state pension age is on course to rise to 67 by 2028 and to 68 by 2046. However, raising the retirement age sooner than planned is politically controversial, with previous plans to do so abandoned by Jeremy Hunt, the former Chancellor, amid concerns he would struggle to justify the change. The RMT strike threat comes after Nigel Farage also backed Labour's suggestions that the state pension age must rise. The Reform UK leader said on Tuesday: 'I don't think we can really afford to [wait to the 2040s], to be frank. If there is a sudden economic miracle, then it might change that. But it does not look to be happening any time soon.' Ms Kendall said this week she was 'under no illusions' about the scale of the challenges facing both workers and the public purse as the country ages. 'Many workers are more concerned about putting food on the table and keeping a roof over their heads than saving for a retirement that seems a long way away, and many businesses face huge challenges in keeping profitable and flexible in an increasingly uncertain world,' she said.
Yahoo
15 hours ago
- Politics
- Yahoo
RMT warns any raise to state pension age will be met with direct action
The biggest rail workers' union has warned that raising the state pension age would be met with protests and direct action. The Rail, Maritime and Transport union said a government review had sparked fears of a big increase in the pension age. RMT general secretary Eddie Dempsey said: 'The UK state pension is already one of the worst in the entire developed world, which is a direct result of decades of governments transferring both our national and personal wealth to the super rich. 'Any decision to squeeze more out of working people by forcing us to work even longer would be a national disgrace.' He continued: 'Our members work in physically demanding, round-the-clock, safety-critical jobs. 'Many already struggle to reach retirement in good health, especially shift workers. 'Raising the pension age even further isn't just cruel and unnecessary, it's a slap in the face to the very people who keep this country running. 'If this government makes any move to drastically increase the retirement age, we intend to lead our movement onto the streets and will not hesitate to protest nationally and take co-ordinated direct action.'
The Independent
15 hours ago
- Politics
- The Independent
RMT warns any raise to state pension age will be met with direct action
The biggest rail workers' union has warned that raising the state pension age would be met with protests and direct action. The Rail, Maritime and Transport union said a government review had sparked fears of a big increase in the pension age. RMT general secretary Eddie Dempsey said: 'The UK state pension is already one of the worst in the entire developed world, which is a direct result of decades of governments transferring both our national and personal wealth to the super rich. 'Any decision to squeeze more out of working people by forcing us to work even longer would be a national disgrace.' He continued: 'Our members work in physically demanding, round-the-clock, safety-critical jobs. 'Many already struggle to reach retirement in good health, especially shift workers. 'Raising the pension age even further isn't just cruel and unnecessary, it's a slap in the face to the very people who keep this country running. 'If this government makes any move to drastically increase the retirement age, we intend to lead our movement onto the streets and will not hesitate to protest nationally and take co-ordinated direct action.'
Scotsman
4 days ago
- Scotsman
Relocation of ticket office at Edinburgh's Waverley station leaves many readers unimpressed
A decision to relocate the ticket office at Edinburgh's Waverley station left many readers unimpressed. Sign up to our daily newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to Edinburgh News, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... The ticket office - or 'travel centre' - has been moved from the station's historic booking hall to a new home in what was the customer information office next to platforms 4 and 5. The space freed up by the move will be divided up to create a family lounge, a "passenger assist" lounge and more retail space. The RMT rail union said the relocation of the ticket office made no sense. | TSPL Advertisement Hide Ad Advertisement Hide Ad But, as the Evening News reported a few days ago, the Rail Maritime and Transport (RMT) union says the relocation 'makes no sense'. Scottish organiser Gordon Martin said: "The travel shop's central location was convenient for customers and safe for workers. Shifting it away from the station's main hub, and expecting staff to sell tickets on the concourse or relying on machines, is not a safe or reliable substitute for a properly staffed, centrally located booking office.' The story prompted many comments from readers. Mike S said: 'In a hurry last month I couldn't find the new ticket office. And three staff couldn't tell me!' Keith C posted: 'It means maximising retail rental revenue at any cost to the passenger experience.' Advertisement Hide Ad Advertisement Hide Ad Julia MacMillan suggested those behind the move were 'probably hoping it will be used so infrequently they can then close it for cost efficiency'. And she added: 'Buying online/at a machine with a card works for many but not all and there's often specific questions need answering in person - canny get that online/from a ticket machine.' Scott Reid urged: 'Stick with the humans. Managed to get cheaper tickets now and then than ones available via machines/online.' Dave Chalmers posted: 'Makes no sense at all. Trying to direct anyone there is a pain. Smallest office, never copes with any crowd. Spilling out. No direction. Poor planning and execution. And so noisy inside! Unable to hear clearly what tellers are saying.' Advertisement Hide Ad Advertisement Hide Ad LNER, whch runs the ticket office at Waverley, has said the move is to 'create fresh, new areas for customers'. And it said the new ticket office showcased some of the station's original historic features and was 'a much brighter and more inviting area' for customers to use.
