Chancellor George Osborne sold the UK a ‘pup’ when he claimed the new state pension would help low earners, union Prospect has claimed.

The union for managers and professionals claimed the outgoing state pension system would have provided a higher pension to a low-paid individual who is contracted-in to the state’s second pension over a full working life.

“George Osborne sold the country a pup when he claimed that the new state pension would help low earners,” Prospect pensions officer Phil McEvoy said.

“Although simplifying state pensions was long-overdue, it is wrong that it is being used as a cloak that will see the taxman get more while paying less to future pensioners.”

The work and pensions select committee has recently launched an interim report on understanding the new state pension after recent inquiry found it to be ‘insufficiently clear’.

The report, which detailed evidence given to the committee as part of the inquiry, found that “at a crucial time of reform to the state pension and the state pension age, DWP statements are insufficiently clear.”

Prospect backed the government’s report and said people have been “continually under-informed” about the impact of the government’s changes.

The union said although the government has taken steps to ensure that most earned entitlements are protected, many future retirees with a GMP entitlement will see the value of this reduced as the Treasury will no longer meet the cost of annual increases to this benefit.

“All of this comes alongside the fiasco of state pension age reform that has left so many women aggrieved and could potentially see future generations having to work until they drop,” McEvoy said.

“Working people need to be aware of the impact of government’s changes on their retirements. We welcome the committee’s proposals to provide automatic, regular, individual statements.”

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