Pensions

Lord McKenzie of Luton Excerpts

Thursday 5th May 2011 Lords Chamber

[Lord Taylor of Holbeach]

I remind my noble friend that, as the noble Baroness, Lady Hollis, clearly indicated, one group of people who are likely to benefit from this introduction are women pensioners who have not had the opportunity to accumulate benefit through the current pension system.

[Lord McKenzie of Luton]

My Lords, the noble Lord, Lord Dykes, described these proposals as far-reaching but, as the Minister himself has acknowledged, there is a lot of uncertainty about what the shape of this will be, and indeed about whether it will ever come to fruition. One thing is very clear from the consultation document; there will be no new money attached to it. There will therefore be not only issues of equity between existing pensioners and new pensioners but, among the new pensioners, clearly some element of redistribution. Will the noble Lord say something about that?

[Lord Taylor of Holbeach]

In an earlier answer I indicated that there would be high earners over a longer working life whose accumulation of benefit would be less as a result of these proposals. However, the whole programme is designed to benefit those who have not normally, under the existing system, had the opportunity to accumulate a basic state pension that is adequate for their retirement. That must be the strategy that we seek to address. Anything involving pensions is a long-term programme and must seek consensus across Governments if we are likely to succeed.