Oral Answers to Questions

Kelvin Hopkins Excerpts

Monday 18th July 2011 Commons Chamber

[Steve Webb]

I enjoyed my visit to my hon. Friend’s constituency, when we discussed pension issues with local employers. The important consideration is fairness, as he says. We have no problem with people transferring out of such schemes in a fair exchange, but because these are complex and difficult financial transactions we must ensure that people have the proper advice and information on which to make such choices.

[Kelvin Hopkins (Luton North) (Lab)]

The reality is that most occupational schemes are disappearing, private pension schemes are often not good value and are subject to stock-market vagaries, and millions of people will not be in any kind of pension scheme in the future. Is not the real long-term solution a compulsory state earnings-related pension scheme for everyone?

[Steve Webb]

We believe that both the state and the private sector have an important part to play. We have published Green Paper proposals for state pension reform that would provide a firmer foundation, perhaps of the sort that the hon. Gentleman has in mind. We also believe that many people could be in decent-quality workplace provision with an employer contribution and that is why we will begin auto-enrolment as planned next year.