Oral Answers to Questions
Debate between Shailesh Vara and Kelvin Hopkins(8 years, 4 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Kelvin Hopkins (Luton North) (Lab)
5. What estimate he has made of the number of people who will receive a lower state pension under the single-tier pension.
The Parliamentary Under-Secretary of State for Work and Pensions (Mr Shailesh Vara)
Provided that people have at least 10 national insurance qualifying years, they will not receive a lower pension under the new state pension based on their own national insurance contributions than they would have already built up under the current system.
Kelvin Hopkins
The truth is that under the Government’s new pension system, substantial numbers of pensioners will lose money. Why did the Government turn their face against the obvious solution, which is to move to a much higher basic state pension, backed up by a compulsory state earnings-related scheme for all, with defined benefits?
Mr Vara
It is important that the hon. Gentleman appreciates that the new state pension is based on national insurance contributions. He will be aware that for many years many people have contracted out, and a small portion of their national insurance has gone towards a work pension or a private pension. If they add the new state pension to their other pension, which was paid for by national insurance contributions, they will find that in many cases they will be better off than they would be under the new state pension, which is £155.65.
Oral Answers to Questions
Debate between Shailesh Vara and Kelvin Hopkins(8 years, 7 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Vara
I congratulate my hon. Friend on her efforts in helping to spread the important message about this groundbreaking reform. I agree that small businesses need to advise their employees of the changes, which is why the Government have launched a new national communications campaign for small and micro-employers, as well as for individuals.
Kelvin Hopkins (Luton North) (Lab)
Would it not be much more sensible, financially secure and efficient and beneficial to pensioners to establish a compulsory state earnings-related pensions scheme for all, with defined benefits, in place of the Government’s auto-enrolment scheme?