Public Service Pensions

Debate between Chris Williamson and Danny Alexander

Tuesday 20th December 2011 Commons Chamber

[Danny Alexander]

I am not sure that I would accept the description of having time on my hands. The hon. Gentleman’s point is a serious one, however, particularly on the charging structure. This has been looked at by the Minister of State, Department for Work and Pensions, my hon. Friend the Member for Thornbury and Yate (Steve Webb) in the context of the new National Employment Savings Trust scheme, and the Financial Secretary has been considering it. If we can find things to help reduce those costs, we will certainly go ahead with them.

[Chris Williamson (Derby North) (Lab)]

The truth is that this Government are indulging in a race to the bottom on pensions. The fact is that the 11% of private sector workers currently in a defined benefit scheme will find pressure being brought to bear to reduce the benefits of those schemes as a result of the Minister’s forcing down of public sector pensions. Will he tell the House how it can possibly be in the national interest to force more pensioners into poverty, resulting in hundreds of thousands if not millions of pensioners in the future having to rely on means-tested benefits?

[Danny Alexander]

I have to say that that is the most shameful scaremongering about what we are offering that I have heard. What we are offering public service workers are the best pensions available to any work force in the country. Most public service workers will continue to have a very good pension in retirement. People on low and middle incomes will in most cases receive a better pension at their retirement age than they could under the current schemes. I hope that, on reflection, the hon. Gentleman will join us in explaining and selling this deal to the many hard-working public servants in his constituency rather than misrepresenting it.

Oral Answers to Questions

Debate between Chris Williamson and Danny Alexander

Tuesday 1st November 2011 Commons Chamber

[Mr Kevin Barron (Rother Valley) (Lab)]

12. What assessment he has made of the effects on unemployment of the outcome of the comprehensive spending review.

[The Chief Secretary to the Treasury (Danny Alexander)]

The independent Office for Budget Responsibility published its forecast for unemployment in March. Unemployment is a serious problem for the UK, with about 1 million people continuously on out-of-work benefits for more than a decade. This Government have introduced a number of reforms to the welfare system, including the Work programme—the biggest single payment-by-results employment programme this country has ever seen, which is expected to help 2.4 million claimants over the next seven years.

[Chris Williamson]

The Chief Secretary should stop being so complacent about long-term unemployment. The truth is that this Government are spending more to keep people on the dole and they are losing income from tax revenues that would otherwise be paid on income tax and VAT. Is it not time that the Government adopted a plan for jobs and growth to get the economy moving again? The right hon. Gentleman could do worse than adopt Labour’s five-point plan for economic growth and avoid the spectre of stagflation for years to come.

[Danny Alexander]

I am not sure that Labour’s five-point plan would help the British economy, given that it involves spending an extra £20-odd billion, putting at risk the fiscal credibility that is so important to maintaining employment in this country. Nor do I think the hon. Gentleman should be so critical of the Work programme, which after all is designed to tackle the legacy of 1 million people who have been out of work for more than 10 years—a legacy for which his party is responsible.