Oral Answers to Questions — Stakeholder Pensions

Part of the debate – in the House of Commons at 12:00 am on 2 April 2001.

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Photo of Peter Lilley Peter Lilley Conservative, Hitchin and Harpenden 12:00, 2 April 2001

If the original purpose of the stakeholder pension was to enable those on low earnings to opt out of the state system into privately funded pensions, why does it discriminate in practice against those on low earnings? Will the right hon. Gentleman confirm that, whereas those with earnings of more than £10,000 will receive a rebate sufficient to buy a pension equivalent to the state pension that they forgo, those with earnings of less than £10,000 will receive only a partial rebate and, therefore, will be discriminated against? Is not that unfair, unnecessary and likely to lead to the sort of mis-selling that The Sunday Times said in an article was widespread as a direct result of the Government's policy?