Pensions

Lord Tomlinson Excerpts

Thursday 5th May 2011 Lords Chamber

[Lord Taylor of Holbeach]

My Lords, the reform is based on future pensions rather than on existing pensions. We will seek to protect existing pensioners during the period of transition, but the future reform depends on the consultation exercise, and the mechanisms that we will use will be those arising as a result of that.

[Lord Tomlinson]

Does the noble Lord accept that two different levels of state pension—one for existing pensioners and one for new pensioners—are exactly the kind of injustice for which, in other circumstances, were it challenged at a judicial review, a challenge would be upheld?

[Lord Taylor of Holbeach]

The Government will seek to avoid such a situation. Indeed, that is the reason for the consultation. I think all noble Lords will agree that this is a necessary reform that needs to be addressed by the Government, who want to take things forward. The programme for this is not one of rushed implementation. It is likely to be legislated for not in this Parliament but in some future Parliament.