State Pension

Debate between Baroness Altmann and Baroness Wheatcroft

Thursday 28th April 2016 Lords Chamber

[Baroness Wheatcroft]

To ask Her Majesty’s Government how many people they expect to benefit from the new state pension, and what will be the average increase per person.

[The Minister of State, Department for Work and Pensions (Baroness Altmann) (Con)]

My Lords, by 2030 the new state pension will result in higher state pension payments for 6 million future pensioners, who will receive on average £10 a week more state pension, with 3 million women receiving on average £11 a week more and 3 million men receiving £9 a week more.

[Baroness Wheatcroft (Con)]

I thank my noble friend the Minister for those encouraging numbers. The old system was complicated and confusing, and many people were left uncertain of what their income would be in retirement. Does my noble friend think that the new system, which is not just higher but clearer, might encourage more people to save for their retirement?

[Baroness Altmann]

My noble friend is absolutely right. The aim of the new state pension is that people will have a much clearer idea of how much they can get from the state pension without extensive means testing so that it is clear and safe for them to save as they can on top of it.