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Pensions: the UK Pension Credit

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Pensions: the UK Pension Credit .In Autumn 2001, the UK government finalised its proposals for the introduction of the Pension Credit in 2003. Since the initial plans, the Government has significantly changed the way in which pensioners' savings will be treated by the new benefit, and has also decided to couple the reform to significant increases in the generosity of housing benefit for pensioners. This paper asks who is likely to gain, and assesses the likely effect on pensioner poverty, on savings incentives and on the public finances. Tom Clark concludes that modifications to the reform leave the policy better able to reward saving and fitting in better with the rest of UK pension policy. In the longer-term, however, there large questions about the eventual cost and effects of the reform that remain unanswered. "Rewarding Saving and Alleviating Poverty? The Final Pension credit Proposals" is published by the Institute for Fiscal Studies.

 

By Institute for Fiscal Studies , UK .

Welfare and Social Security Policy Resource.