Oral Answers to Questions

Debate between Steve Webb and George Hollingbery

Monday 23rd April 2012 Commons Chamber

[George Hollingbery (Meon Valley) (Con)]

1. When he plans to bring forward his proposals for a single-tier state pension.

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

With permission, Mr Speaker, I will answer this question together with Questions 6 and 20.

I can confirm that, as was announced by the Chancellor in his Budget, we will present further details about the single-tier state pension in a White Paper later in the spring. Final decisions on the detailed implementation of the policy will be made in the next spending review.

[George Hollingbery]

A number of my constituents have contacted me expressing concern about the transition between the old and new systems—in particular, a Mr Theo Stellakis, whose questions the Minister has answered on a number of occasions. Can the Minister tell us how the transition will affect two people, one reaching the age of 65—or reaching pensionable age—on the day before the changes are implemented, and the other doing so the day after?

[Steve Webb]

I recall corresponding with Mr Stellakis on a number of occasions. What concerns him is the idea of a cliff edge before and after 2016. Let me clarify the position. When people receive state pensions of less than the full amount because they were contracted out, as I believe the hon. Gentleman’s constituent was, we will continue to take account of that after 2016, so there will not be the cliff edge that he envisages. We will have to phase out the arrangement over time, but in 2016 we will continue to take account of past contracting out.