Oral Answers to Questions

Debate between Duncan Hames and Sajid Javid

Tuesday 11th December 2012 Commons Chamber

[Duncan Hames (Chippenham) (LD)]

I thank Ministers for listening to the pleas of MPs explaining the plight of pensioners with self-invested pension plans that were affected by the cap on drawdown. Will the announcement in the autumn statement to lift that cap come into force in time to protect their pension income in this financial year?

[Sajid Javid]

I thank my hon. Friend for that question; I remember that he raised this issue last time at oral questions. He has been a great campaigner on it, and I commend him for that. I am pleased that he welcomes the decision to raise the cap to 120%. That will be in the next Finance Bill. We are consulting with stakeholders about the easiest way to bring it in, and we will try to do so as soon as possible.

Oral Answers to Questions

Debate between Duncan Hames and Sajid Javid

Tuesday 6th November 2012 Commons Chamber

[Duncan Hames (Chippenham) (LD)]

Some pensioners with capped draw-down and self-invested pension plans have seen their retirement income halve as a result of decisions by the Government Actuary’s Department. How would the Minister suggest those pensioners cope in retirement with such a sharp fall in access to what is, after all, their own money?

[The Economic Secretary to the Treasury (Sajid Javid)]

My hon. Friend is right to point out that pensioners are facing pressure because of low interest rates and longevity. The Government Actuary’s Department makes recommendations to the Government and we must take them seriously—we keep the matter constantly under review.