Public Service Pensions

David Mowat Excerpts

Tuesday 20th December 2011 Commons Chamber

[Danny Alexander]

I would have welcomed from the Scottish National party—as from the Labour Front-Bench team—a recognition that opposition to these reforms was wrong and a welcome of the fact that we have reached agreement. Sadly, Salmond and Serwotka are the duo who continue to reject public service pension reform. The position of Unite is more nuanced, as it has signed up to the agreement in the local government sector and reserved its position on the health sector, pending consultation with some of its lay members. If that proves to be positive, the union would be welcome back at the negotiating table.

[David Mowat (Warrington South) (Con)]

An inflation-proof pension of £20,000 a year taken at the age of 67 would cost about £500,000 to purchase on the open market, yet the average pot in the private sector is about £30,000 for those people who have any provision at all. This difference is exacerbated by the charging structure in the UK fund management industry, which cripples private provision. Now that the Chief Secretary has more time on his hands, having concluded these negotiations, will he address this issue with colleagues because it is a disgrace?

[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.