Oral Answers to Questions

Graham P Jones Excerpts

Monday 1st July 2013 Commons Chamber

[Steve Webb]

My hon. Friend is correct: it is an intergenerational pension promise, although we hold to the notion that we pay bigger pensions to those who have made more years of contributions. Therefore, we believe that there is an insurance element to the scheme.

[Graham Jones (Hyndburn) (Lab)]

6. What assessment he has made of eligibility for the state pension following the rise in contributions to 35 years from 2016.

[The Minister of State, Department for Work and Pensions (Steve Webb)]

In the long term around 85% of people will get the full single-tier pension under the Government’s proposals.

[Graham Jones]

Does the Minister accept that as a result of the changes fewer people overall will qualify for the state pension by 2020? Does he agree that that is particularly unfair to people who, being so close to retirement, will not have time to make up the years?

[Steve Webb]

We have put in place special provision for the very people to whom the hon. Gentleman refers. When we value their pension rights at 2016, we will do so under the current rules, where 30 years are needed to qualify, and the new rules, where 35 years are needed, and we will use whichever of the two provides the highest number. The 2016 calculation will take whichever set of rules treats people most favourably and they will build upon that.