Oral Answers to Questions

Philip Hollobone Excerpts

Monday 25th June 2012 Commons Chamber

[Chris Grayling]

Let me give the right hon. Gentleman one piece of data: 80,000 fewer people are on out-of-work benefits today than when his party was in power.

[Mr Philip Hollobone (Kettering) (Con)]

2. What steps he is taking to introduce a flat-rate state pension for new pensioners.

[Peter Aldous (Waveney) (Con)]

17. What steps he is taking to introduce a flat-rate state pension.

[The Minister of State, Department for Work and Pensions (Steve Webb)]

The Chancellor confirmed in Budget 2012 that the Government will introduce a simpler, single-tier pension for future pensioners set above the basic level of the means test to better support saving for retirement—and I am pleased to say that the Prime Minister has reiterated that commitment today.

[Mr Hollobone]

Will the Minister assure the House that, were such a scheme to come in, existing pensioners would not be permanently disadvantaged relative to new pensioners? If that is the case, is it possible to explain it in plain and straightforward language so that everyone can understand it?

[Steve Webb]

I am grateful to my hon. Friend. We need to explain what are often very complex matters in simple language. The simple truth is that today’s pensioners have got the best deal in a generation through the restoration of the earnings link, which will be real cash in their pockets year after year, and that the new system will cost no more than was going to be spent in any case. We are taking a planned budget, simplifying the system, but not treating anyone adversely.