Official estimates indicate that the annual cost of the state pension is projected to rise from £136.6 billion in 2024–2025 to £171.7 billion by 2029–2030. This represents a significant increase in government spending on pensions over the next five years.
The rise in expenditure equates to an additional cost of approximately £1,000 per worker. These figures highlight the financial implications of Labour’s proposed pension policies.
**Why this matters**
The increase in state pension costs will affect public finances and could influence taxation or government borrowing. Understanding these changes is important for workers and policymakers as they consider the long-term sustainability of the pension system.
Source: News Source