Housing: Pensions and Deposits

Lord Kennedy of Southwark Excerpts

Wednesday 5th June 2019 Lords Chamber

Asked by

[Lord Kennedy of Southwark]

To ask Her Majesty's Government what plans they have to allow individuals to use accrued pension savings to fund first time home deposits.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Buscombe) (Con)]

My Lords, the Government have no plans to change access to accrued pension savings. Automatic enrolment has transformed pension participation, with over 10 million people enrolled in workplace schemes. We will build on these reforms. We are also committed to helping people realise their aspiration to own their own home. Since 2010, over half a million people have been helped to purchase a home through government-backed schemes including Help to Buy.

[Lord Kennedy of Southwark (Lab Co-op)]

When I read about this proposal, I thought it was ill-thought-out and damaging. Does the noble Baroness agree that people need to plan carefully for their retirement, to ensure they have an adequate income? If this idea ever came to fruition, it is likely that it would push up house prices and leave people worse off regarding their expected retirement income.

[Baroness Buscombe]

I entirely agree with the noble Lord that we must think carefully about how we encourage and support people to save for the long term and their retirement. That is why we are so pleased about the success of auto-enrolment. Our priority remains establishing long-term savings behaviour, so that people are enabled to save for greater security. Automatic enrolment has already reversed the decline in workplace pension savings seen in the decade prior to its introduction, and the number of first-time home buyers is at its highest level for 11 years.