Clause 3
National Insurance Contributions Bill
5:45 pm
Jane Kennedy (Financial Secretary, HM Treasury; Liverpool, Wavertree, Labour)
You are absolutely right, and thank you for that guidance, Mr. Chope. With regard to the amendment, we have already put into legislation, as I have said repeatedly, the commitment to up-rate the pension credits standard minimum guarantee in line with earnings. Earnings up-rating is part of a package of complementary reforms that balance affordability with fairness, and that includes the abolition of contracting out on a defined, contribution basis and simplifying the state second pension. Trying to unpick the timing of this element with those reforms fundamentally changes that package.
We are bringing forward the introduction of the upper approval point only to keep us within the pension reform timetable. I accept that we have had a rousing debate on our commitment to restoring the link, but other issues have been in there as well. I hope that this has been helpful and that my hon. Member for Putney will not press the amendment to a vote.