Oral Answers to Questions

Debate between Paul Burstow and Steve Webb

Monday 1st September 2014 Commons Chamber

[Steve Webb]

We are actively engaged in making those preparations, but we entirely accept that the time scale is tight. I contrast our proposals with the current situation, in which hundreds of thousands of people reach an age at which they choose whether or not to buy an annuity and get no guidance, advice or help whatever. This will be free. The guidance will be independent and will be face to face if people want that. It will be a vast improvement on what currently happens.

[Paul Burstow (Sutton and Cheam) (LD)]

Given that this decision is one of the most important that people make, and that one point they will consider is how they might meet the costs of their long-term care later in their old age, will the Minister take the necessary steps to ensure that this advice covers how to make the right decisions on paying for long-term care?

[Steve Webb]

My right hon. Friend has a strong track record on long-term care and making it affordable—he and our right hon. Friend the Minister of State, Department of Health, have introduced legislation on that. On the guidance guarantee, I have to be slightly wary of trying to jemmy in large numbers of different topics, but it is clear, as my right hon. Friend says, that retirees need to think about financial liabilities later in retirement. The guidance conversation offers an opportunity to start that process and to signpost people to places where they can find further information.

Pensions Strategy

Debate between Paul Burstow and Steve Webb

Thursday 20th March 2014 Commons Chamber

[Steve Webb]

As the hon. Gentleman knows, we are taking steps to make sure that charges in the pension sphere are made much more transparent. Any new products, particularly if they are sold, will be regulated by the FCA. The guidance is simply a conversation, as it were, with someone who will enable people to get basic information. People will still be able to take regulated independent financial advice, and that will be a regulated process.

[Paul Burstow (Sutton and Cheam) (LD)]

The Minister has rightly championed the triple lock, making sure that the pension goes up by whichever is highest: earnings, prices or 2.5%. That is making a huge difference to pensioners in my constituency and, I suspect, the constituencies of hon. Members across the House. Will he confirm that it is the Government’s intention to make that very important change a permanent feature of the pension landscape so that it gives people certainty for the future? As part of the guidance guarantee, will he ensure that a linkage is made to the duty in the Care Bill to provide information and advice in respect of care?

[Steve Webb]

I am grateful to my right hon. Friend for making the crucial point about the link between this new freedom and the level of the state pension. If we are able to keep the triple lock going, what will happen with a means-tested earnings-linked pension credit is that there will be more and more clear blue water between the means test and the triple-locked pension, which will greatly reduce the risk of anyone falling back into means testing in retirement. I would certainly like to see that continue beyond this Parliament.

On guidance on care, we will liaise with our colleagues at the Department of Health to make sure we are taking best advantage of this conversation.