Oral Answers to Questions

Jo Swinson Excerpts

Monday 28th March 2011 Commons Chamber

[Steve Webb]

Obviously, this idea is at a very preparatory stage, but my right hon. Friend the Chancellor has made it clear that pensioners will not simply face an increase in overall tax as would be the case if the two tax rates were simply added together. The idea is in its very early stages, a lot of preparatory and consultative work is going on, and I am sure that the Chancellor is entirely mindful of the points that the hon. Lady raises.

[Jo Swinson (East Dunbartonshire) (LD)]

15. What assessment he has made of the potential effects on women of his proposals on pensions.

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

My hon. Friend will be aware that the Chancellor announced in the Budget that the Government will shortly consult on various options, including one for a simpler state pension. In looking at these options one of our key priorities will be to consider how we deliver improved outcomes for women. Under proposals for a single-tier pension we would expect many women to benefit and we will publish more details of our proposals shortly.

[Jo Swinson]

I thank the Minister for that reply, and I warmly welcome the single-tier pension, which bears a striking similarity to the citizen’s pension on which he and I have campaigned. May I bring him back to the answer he gave to my hon. Friend the Member for Torbay (Mr Sanders) about the injustice faced by women born in 1953 and 1954, which he said there was no simple way of dealing with? The Minister is widely respected for his great expertise on the intricacies of the pension system, so even if there is not a simple way of dealing with the problem, may I urge him to look hard to find a complicated way of tackling it?

[Steve Webb]

I am very grateful to my hon. Friend. The issue, unfortunately, having dealt with the one-month cohort about whom I understand there is particular feeling, is that it is not only that group who face an increase of more than a year. When one looks at the neighbouring months, an obvious way of dealing with the problem is by delaying until 2020, but if we did that, we would soon rack up a £10 billion bill. That is the sort of difficult trade-off we have had to face.