Just over a week ago, the Chancellor of the Exchequer, Philip Hammond delivered the Budget – a statement made to the House of Commons on the nation’s finances and the Government’s proposals for changes to spending. Later Life Ambitions has analysed the key announcements and what they mean for you.
The old State Pension (the basic state pension) and new State Pension increase by 2.6% from 6 April 2019, a cash increase of £3.25 a week and £4.25 a week respectively.
State Pension Age
From November 2018 the state pension age will be 65 for both men and women. From 2019, the State Pension age will gradually increase for both men and women to reach 66 by October 2020. State Pension age will then increase from 66 to 67 between 2026 and 2028. There will also be reviews every 5 years after that to look at State Pension age.
The Chancellor pledged £650 million of additional funding for English local authorities in order to tackle the on-going crisis in social care funding. While the funding has been broadly welcomed by cash-strapped councils, Later Life Ambitions urges the government to replace its annual injections of emergency funding for social care with a long-term plan in the forthcoming Social Care Green Paper.
The Budget confirmed the Prime Minister, Theresa May’s announcement in June of extra funding for the NHS until 2023-2024. The additional funds will begin next year and will only rise to the headline figure of £20.5bn in 2023/2024. We welcome the additional funding for the NHS – this is crucial to ensure patients and their families receive the care they need.
Banning pensions cold calling
To help protect people from fraudsters, the Chancellor pledged to implement legislation to make pensions cold calling illegal. Later Life Ambitions welcomes this important step to protect sometimes vulnerable older people from pension fraud.
In 2016, the Government pledged to ensure the pensions industry designs, funds and launches a pensions dashboard where an individual can view all their retirement savings in one simple, digital interface. Later Life Ambitions has long-supported the pensions dashboard and has been disappointed to hear that it’s progress has stalled over recent months. We therefore welcome the Chancellor’s pledge in last week’s budget to consult later this year on the detailed design for Pensions Dashboards.