Pensions

Lord McFall of Alcluith Excerpts

Thursday 5th May 2011 Lords Chamber

[Lord Taylor of Holbeach]

My noble friend makes a very good point. We would expect people who traditionally do not build up significant amounts of additional pension, such as women and low earners, to gain under a single-tier pension. Conversely, those who expect to build up much more significant amounts of additional pension, such as higher earners and those with longer working lives, will no longer be able to do so under a single tier. So there will be a redistribution within the pensions system which the single tier will be able to operate.

[Lord McFall of Alcluith]

Given that two-thirds of those in occupational pensions presently face a life of poverty—that affects 20 million out of the present UK working population of 30 million—how confident are the Government that means-testing will be eliminated from the new state pension system? Have they any estimates for how many will still be means-tested after this policy is introduced?

[Lord Taylor of Holbeach]

We will publish full costings on the whole programme. I think the House will accept that the current situation has arisen over a period of several Governments. I hope the noble Lord will consider that the Government are doing the right thing in seeking to address the issue, but I cannot answer his question in detail.