Pensions

Lord Dykes Excerpts

Thursday 5th May 2011 Lords Chamber

Asked by

[Lord Dykes]

To ask Her Majesty’s Government what representations they have received on their plans for a single state pension with an estimated value of around £155 at current prices.

[Lord Taylor of Holbeach]

My Lords, the Government’s consultation paper, A State Pension for the 21st Century, published on 4 April 2011, sets out two high-level options for state pension reform. Following the consultation process, the Government will be considering all the responses to our options for delivering a simpler and fairer state pension. The media reports of a £155 a week pension are based on speculation of how much this single-tier state pension could be worth if it is introduced in the future. However, no decisions have been made on how to change the state pension system.

[Lord Dykes]

My Lords, I congratulate the coalition on this far-reaching decision, which will help many pensioners in the future at whatever level the figure starts. What specific mechanism will the Government deploy to ensure equal treatment between the existing recipients and the new entrants to the state pension at the commencement date?

[Lord Taylor of Holbeach]

My Lords, the reform is based on future pensions rather than on existing pensions. We will seek to protect existing pensioners during the period of transition, but the future reform depends on the consultation exercise, and the mechanisms that we will use will be those arising as a result of that.