Oral Answers to Questions

Kelvin Hopkins Excerpts

Monday 1st February 2016 Commons Chamber

[Kelvin Hopkins (Luton North) (Lab)]

5. What estimate he has made of the number of people who will receive a lower state pension under the single-tier pension.

[The Parliamentary Under-Secretary of State for Work and Pensions (Mr Shailesh Vara)]

Provided that people have at least 10 national insurance qualifying years, they will not receive a lower pension under the new state pension based on their own national insurance contributions than they would have already built up under the current system.

[Kelvin Hopkins]

The truth is that under the Government’s new pension system, substantial numbers of pensioners will lose money. Why did the Government turn their face against the obvious solution, which is to move to a much higher basic state pension, backed up by a compulsory state earnings-related scheme for all, with defined benefits?

[Mr Vara]

It is important that the hon. Gentleman appreciates that the new state pension is based on national insurance contributions. He will be aware that for many years many people have contracted out, and a small portion of their national insurance has gone towards a work pension or a private pension. If they add the new state pension to their other pension, which was paid for by national insurance contributions, they will find that in many cases they will be better off than they would be under the new state pension, which is £155.65.