Pensions Bill [Lords]

Susan Elan Jones Excerpts

Monday 20th June 2011 Commons Chamber

[Priti Patel (Witham) (Con)]

I am intrigued by the debate thus far. A range of hon. Members have followed a number of themes. The hon. Member for Edinburgh East (Sheila Gilmore) and others argued that the poorest will be affected by the changes that the Government are making, but they are already affected by the lack of good, sustainable state pension provision, which is one of the major issues that the Bill addresses.

I welcome the Bill and congratulate the Government on it. In my view, it will transform the pensions landscape. As we have heard, in recent years, there have been significant increases in longevity and changes in how we lead our lives. Things are changing at a dramatic pace. That will not stop, and nor should it; frankly, we should celebrate it. Not only are we living longer, but our expectations of quality of life in retirement are changing beyond all recognition compared with those of previous generations, as is how people spend their retirement. With increasing life expectancy, it is vital that our state pension age increases.

[Susan Elan Jones (Clwyd South) (Lab)]

The hon. Lady rightly makes the point that we are living longer, which is of course something to celebrate. However, we are not living that much longer than we were when the coalition agreement was formed.

[Priti Patel]

I thank the hon. Lady for her remark. It is a fact of life that we are living longer. At the end of the day, there are serious pressures on public finances and on funding for our state pensions. The Government are seeking to address that serious issue. Ultimately, this is about the future of a sustainable state pension. The Bill is not about today or tomorrow, but about future generations. It is right that the Government tackle this fundamental, serious issue in the way that they are. Furthermore, we have all seen from Department for Work and Pensions figures that more than 10 million people in the UK can expect to live to see their 100th birthday. This reform is therefore clearly long overdue.

People are living longer and healthier lives, but we simply cannot ignore the pressure that this puts on the state pension system. In my view, increasing the state pension age is the only fair and sustainable option. We have heard a range of quotes in the Chamber today from various organisations. There are experts in our society who understand how our pensions are funded, and it is worth noting that the chief executive of the National Association of Pension Funds said:

“Our ageing population means increases in the State Pension Age are unavoidable. This rise in the State Pension Age to 66 from 2018 to 2020, as implemented in the…Bill, is a sensible move.”