State Pension Reform

Glenda Jackson Excerpts

Monday 4th April 2011 Commons Chamber

[Steve Webb]

My hon. Friend is absolutely right. There is a clear link between the major reforms that the Department is introducing for people of working age and those that it is introducing for those who will reach pension age in the future. “It pays to work” and “it pays to save” must be the right combination.

My hon. Friend asked about pensioners’ savings. In a world in which we will enrol people in workplace savings, we need them to be confident that they will be better off when they save, and that is one of the specific purposes of the reforms. If my hon. Friend wishes to raise any further points, I will certainly respond to them.

[Glenda Jackson (Hampstead and Kilburn) (Lab)]

Given that the introduction of a single-tier pension will be available only to new pensioners, will the safety nets to which the Minister referred in his answer to my hon. Friend the Member for Aberdeen South (Dame Anne Begg) include all the existing passported benefits, and will claimants still have to go through a means-tested system in order to obtain them?

[Steve Webb]

We are not changing the system for current pensioners at all. It will continue as previously budgeted. As for new pensioners, we need to think what paying a pension above the guarantee credit implies for passported benefits, and what sort of system we need. I should be interested to hear people’s ideas, because the issue is important. Hitherto, we have simply assumed that pension credit means poverty and that we must therefore make all the extra payments. We may need a more sophisticated system now, but the role of passported benefits is important, and I am grateful to the hon. Lady for raising it.