Pensions

Baroness Sherlock Excerpts

Thursday 26th June 2014 Lords Chamber

[Lord Newby]

My Lords, the Association of British Insurers has produced a detailed response to the consultation that we are undertaking. Within that, it has underlined its commitment to help customers understand their options and enable them to make good decisions. I think that for many people, when the word “pension” is mentioned, a mist descends; so demystifying pensions is a big challenge already. That is why we are devoting £20 million over the next couple of years to getting the new guidance system up and running.

[Baroness Sherlock (Lab)]

My Lords, the mist may not be entirely accidental. I remind the House of my interest as the independent director of the Financial Ombudsman Service. The Telegraph reported on 13 June that officials are getting ready to tell more than 1 million people in their late 50s and early 60s that they will not get the full amount of the single new “flat-rate” state pension. The Pensions Minister, Steve Webb, told the Telegraph:

“I think I may have been guilty of oversimplifying the new flat rate state pension ... But as soon as you caveat this type of thing people switch off”.

Will we have the opportunity to scrutinise the communication plan for this scheme to make sure that more mist does not descend in future?

[Lord Newby]

My Lords, the provisions relating to the guidance will be in the pension scheme Bill when it comes before your Lordships’ House. I am sure that there will be plenty of opportunity to debate those provisions at great length, to which we on this side look forward.