Oral Answers to Questions

Debate between Julian Brazier and Steve Webb

Monday 31st March 2014 Commons Chamber

[Steve Webb]

The FCA will shortly announce details of plans to look at a raft of old pension and life assurance products, some of which have exit fees and high charges, and I think consumers will warmly welcome such an investigation.

[Mr Julian Brazier (Canterbury) (Con)]

I commend progress on this as well as the amazing wider package of pension reforms for which my hon. Friend is responsible. On the balance that trustees will look at, may I urge him to bear in mind existing people in the system, not just pensioners themselves, because with Sheerness Steel people who were still working were almost wiped out in order to protect those who had retired?

[Steve Webb]

My hon. Friend is quite right. As he knows, we have both the Pension Protection Fund and the financial assistance scheme to help those whose sponsoring employer has become insolvent. It is important that we make sure that sponsoring employers are in a robust position and that regulation is proportionate, which is why we are changing the remit of the Pensions Regulator so that it has regard, in its actions, to the sustainable growth of the sponsoring employer.

Oral Answers to Questions

Debate between Julian Brazier and Steve Webb

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.

Oral Answers to Questions

Debate between Julian Brazier and Steve Webb

Monday 23rd April 2012 Commons Chamber

[Mr Julian Brazier (Canterbury) (Con)]

Does my hon. Friend agree that the great advantage of his proposal is that it will help to restore incentives to save? Many people feel today that there are few such incentives in the benefits system.

[Steve Webb]

My hon. Friend is right. At present, the level of the basic state pension is so far below that of the means test that the first slice of savings is largely offset by means-tested benefits. My right hon. Friend the Chancellor has confirmed that whatever detailed proposition we present, the level of the single-tier pension will be clear of basic means-testing, and will therefore reward those who have saved rather than penalising them.

Oral Answers to Questions

Debate between Julian Brazier and Steve Webb

Monday 28th November 2011 Commons Chamber

[Steve Webb]

I am not sure whether the hon. Gentleman is aware of this, but under his party’s plans the roll-out of employers with one to 50 employees was already scheduled to go into 2016. I can confirm that the majority of the work force will be auto-enrolled during this Parliament. There was already a five-year roll-out for auto-enrolment, so it was already a phased process. Yes, we have changed the schedule, but, as he may be aware, his party changed it twice in a three-month period.

[Mr Julian Brazier (Canterbury) (Con)]

Does my hon. Friend agree that the difficulties and dilemmas involved in deciding what to do about the pension pot, particularly with regard to small businesses, should send a message out there to all those who can look forward to index-linked public sector pensions that they should be grateful?

[Steve Webb]

My hon. Friend is right that we do not want to see a levelling down in pension provision. We want quality pensions for our public servants, but we want to make sure that many more people in the private sector get quality pension provision as well, and auto-enrolment will help to achieve that.