State Pension Reform

Andrew Stephenson Excerpts

Monday 14th January 2013 Commons Chamber

[Steve Webb]

We do envisage that there will be a system of voluntary contributions. We will have to examine issues such as the price for a year of voluntary contributions, because obviously the pension is bigger, but we envisage that the idea that someone can fill gaps will still be a part of the system.

[Andrew Stephenson (Pendle) (Con)]

I very much welcome today’s statement that a single-tier pension is going to apply to new pensioners after 2017. On Sunday, I met a constituent at my supermarket advice surgery in ASDA in Colne who is in receipt of the basic state pension and pension credit but is unsure whether, as part of wider reforms, pension credit would be replaced by the new universal credit and other pensioner benefits. Will the Minister give clarification on that point?

[Steve Webb]

There will be knock-on effects when the universal credit is introduced: because housing benefit will no longer be paid for people of working age, we will have to incorporate housing benefit for pensioners in the pension credit system. There will be knock-on changes, but we envisage, certainly for the foreseeable future, a continuing separate pension credit system.