Oral Answers to Questions

Rehman Chishti Excerpts

Monday 23rd January 2012 Commons Chamber

[Maria Miller]

My hon. Friend is referring to the future of the personal independence payment. He will be aware of my firm commitment to ensuring that that payment is focused on helping those who need help the most. He will have seen from our recently published documentation that our initial work in that area shows that more of that money is going to people who really need it in order to live independent lives.

[Rehman Chishti (Gillingham and Rainham) (Con)]

13. What steps he is taking to protect the interests of people with small pension pots.

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

The problems associated with small pension pots can include higher charges, losing track of a pension or facing barriers to moving the pension and getting a decent annuity. That is why we published a paper last month that sets out some radical options for some form of automated transfer system to make it easier for people to build up one large pension pot.

[Rehman Chishti]

Does the Minister have evidence on the number of small pension pots that will be created after automatic enrolment?

[Steve Webb]

I am grateful to my hon. Friend for that question. There is a risk that without action, in an auto-enrolment world hundreds of thousands of new small pension pots will be created each year as people change jobs. That is why it is doubly important that we should have some mechanism to combine those pots so that they are a pension worth having.