Oral Answers to Questions

Charlie Elphicke Excerpts

Monday 1st July 2013 Commons Chamber

[Steve Webb]

I agree with the hon. Gentleman to the extent that there is mistrust of private pensions, which is why we have taken strong action,: for example, we have banned consultancy charges, which were a source of concern. On savings incentives, if he looks at our analysis, he will find that low earners in particular will have much smaller withdrawal rates when they save. Therefore, the return on savings, particularly for low earners, about whom I am sure he is most concerned, will be enhanced by the proposals.

[Charlie Elphicke (Dover) (Con)]

Does the Minister anticipate making pensions the subject of a cap at any stage?

[Steve Webb]

I think my hon. Friend might be referring to the idea of a total welfare cap, and while the Chancellor of the Exchequer has explicitly ruled out the idea of capping state pensions, I understand there are others in this House who are prepared to cap state pensions.