Pensions

Lindsay Hoyle Excerpts

Wednesday 19th July 2017 Commons Chamber

[Mr Gauke]

Even by the standards of the Labour party, its approach to the state pension age is reckless, short-sighted and irresponsible. When the evidence in front of us shows that life expectancy will continue to increase by a little over one year every eight years that pass, fixing the state pension age at 66, as advocated by the Labour party, demonstrates a complete failure to appreciate the situation in front of us. Compared with the timetable set out by this Government, Labour’s approach will add £250 billion to national debt. Let us put that in context: it is almost twice as much as was disbursed into the financial sector following the financial crisis. Let us put it another way: spending in 2040 on the state pension would be £20 billion a year higher under Labour’s plans than under the plans we are setting out—that is almost twice the Home Office budget. Where on earth is this money coming from? Even the—[Interruption.]

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. In fairness, I want to hear both sides so that we can make a judgment, and I am finding it very hard to hear the Minister. This is in a reply to the shadow Minister, so we all ought to be able to hear the answer.

[Mr Gauke]

Thank you, Mr Deputy Speaker. Even the last Labour Government, who were not known for their fiscal rectitude, legislated to increase the state pension age to 68. Yet on top of a long list of unaffordable spending pledges, the Labour party now happily makes pledges on the state pension that it must know will cause unsustainable damage to the public finances.

The facts are, based on the most up-to-date evidence, and clearly set out in the Government Actuary’s report and John Cridland’s report, that life expectancy is going up. Healthy life expectancy at the age of 65 is also going up. The Government have to face up to this long-term challenge and not pretend that it does not exist. We should celebrate increased life expectancy, but it has consequences for fiscal sustainability that cannot be ignored. The Cridland review is a serious piece of work with a clear recommendation on the pension age. In contrast with the Labour party, we will act responsibly and accept that recommendation.