Clause 1 - Entitlement
State Pension Credit Bill [Lords]
6:30 pm
Mr James Clappison (Hertsmere, Conservative)
I am grateful to the Minister for that contribution, which covered a number a points that I will study in detail. He says that it will pay to save as a result of the pension credit, but he will be aware that it is the existence of the minimum income guarantee that made it not worthwhile to save in the first place. It is common ground that anybody, whatever their background, in the appropriate thresholds will be aware that losing 100 per cent. of their savings from their benefit is not an incentive to save. The whole purpose of the savings guarantee that the Bill will put in place is to remedy the problems that the minimum income guarantee is creating by way of disincentives. That is the nature of the problem.