State Pension Reform

Lord Barwell Excerpts

Monday 14th January 2013 Commons Chamber

[Steve Webb]

My hon. Friend is quite right. The nightmare scenario under automatic enrolment would be people opening their newspapers and reading, “Don’t bother to save small amounts of money; the Government will just claw it back.” We are confident that by sorting out the state pension we will not only deal with the position of people at the bottom of the pile, but will make auto-enrolment the success that we all want it to be.

[Gavin Barwell (Croydon Central) (Con)]

I congratulate the Minister, who has demonstrated his mastery of a highly complex subject. In particular, I warmly welcome the decision to reduce means-testing significantly. Under this Government—unlike the last one—those of my constituents who put small sums away for their retirement will not find themselves little better off than those who do not save.

[Steve Webb]

I am grateful to my hon. Friend for his generous comments. Just as my right hon. Friend the Secretary of State is trying to make work pay through the universal credit, we want to make savings pay through the single-tier pension. I believe that if we can do both those things, we shall have done a good and important job.