Oral Answers to Questions

Julian Brazier Excerpts

Monday 1st July 2013 Commons Chamber

[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.

[Mr Julian Brazier (Canterbury) (Con)]

Does my hon. Friend accept that the proposed arrangements will greatly reduce means-testing in the long run and so restore incentives for people to save?

[Steve Webb]

My hon. Friend is right. The danger with the current system is that people who save find that the Government come along and say, “You’ve saved some money—we’ll take some money off you.” Our intention is to encourage, not penalise, saving. Paying a single, simple, decent pension just above the level of the basic means test will greatly enhance those incentives.