Pensions Strategy

Debate between Steve Webb and Penny Mordaunt

Thursday 20th March 2014 Commons Chamber

[Steve Webb]

We heard earlier that these are Labour policies, but now we hear that they were drawn up on the back of a fag packet. Perhaps both statements are true—I do not know. Just to be clear about what the Labour party has been demanding: it has been demanding not a guidance guarantee, but annuity brokers. It wanted everyone to buy an annuity. This is about freeing people up. That is why it will be good news for saving. Let me give the hon. Lady a brief example. Under auto-enrolment, the people most likely to opt out are the oldest—people in their 50s and beyond—partly because they do not want to tie up their money late in life. This will give them a guaranteed return, in cash, within a few years, and we think it will lead to more pension saving and that it will be a boost to savers.

[Penny Mordaunt (Portsmouth North) (Con)]

The older someone is, the higher their cost of living. Does the Minister agree that our reforms of the state pension and these new freedoms in private provision should result in increased income and opportunities for people in retirement, and that it is therefore vital that they get good quality financial advice?

[Steve Webb]

My hon. Friend is right. The key word she used was “opportunities.” If people want to take more of their pension wealth earlier in retirement—perhaps when they are more fit and able—they should be free to do so. As she says, however, they need to make informed choices, which is why the guidance guarantee is so important.

Oral Answers to Questions

Debate between Steve Webb and Penny Mordaunt

Monday 28th January 2013 Commons Chamber

[Steve Webb]

Given that the right hon. Gentleman mentions taxation, I will risk straying on to it, but quite why today’s millionaires would rather have our 45p rate than his 40p rate, or our 28% capital gains tax, rather than his 18% rate is beyond me.

On the right hon. Gentleman’s specific point, households will respond in a range of ways to the measure on under-occupation: moving is simply one of them; taking in a lodger or boarder, sub-letting, working or working more hours are others, and there are discretionary payments for those in most need.

[Penny Mordaunt (Portsmouth North) (Con)]

T7. Is the Minister aware that the Conservatives in Wales have introduced the post of shadow Minister for older people? In the light of that, will he update the House on the work of the UK advisory forum on ageing in getting a co-ordinated approach to older people’s issues across Whitehall?

[Steve Webb]

I am grateful to the hon. Lady for flagging up the work of the UK advisory forum, which I jointly chair with the Minister for care services at the Department of Health. It enables us to bring Departments beyond those two together with older people’s organisations, and we are looking to expand the role of that group.

Welfare Benefits Up-rating Bill

Debate between Steve Webb and Penny Mordaunt

Monday 21st January 2013 Commons Chamber

[Steve Webb]

My hon. Friend is absolutely right to remind the Committee of that. We have made our commitment to the triple lock on the state pension, which means that it will rise by an amount above inflation this April. We have passed cash on to the guarantee credit to ensure that the poorest pensioners get the full increase, protected the key disability benefits—disability living allowance and attendance allowance—and ensured that the support component of employment and support allowance is protected. We can be proud of achieving all those things despite the difficult financial situation.

[Penny Mordaunt (Portsmouth North) (Con)]

Is the Minister aware that in the city that I represent, which also happens to be the birthplace of Charles Dickens, 82,000 people will benefit from the tax cut in April and nearly 7,000 will have been lifted out of poverty altogether by the cumulative effect of tax cuts under the coalition? Is that not the best way of tackling poverty—to stop taking money off people in the first place?