Orders of the Day — Rights of Savers Bill

Part of the debate – in the House of Commons at 1:06 pm on 28 October 2005.

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Photo of Stephen Timms Stephen Timms The Minister of State, Department for Work and Pensions 1:06, 28 October 2005

I shall not anticipate what Lord Turner might recommend. Certainly, if there was a change along those lines that would help, although it would not by any means remove the problem. Only about 10 per cent. of defined contribution pension pots hold more than £50,000. Of that 10 per cent., on the basis of some quick calculations, it looks to me as though only a minority could safely go down this road and be confident that they would still have money in their pot if they lived to their late 90s or thereabouts.

Even if someone was assured of an income of £109.45 a week, that would not be enough to keep them out of income-related benefits. There is also the question of housing benefit and council tax benefit, as well as the issue of savings credit, which, for a single person, can be available for an income of up to £151 a week. There are some real issues here involving how widely this mechanism would be attractive and valued.

I shall conclude by congratulating the right hon. and learned Member for Kensington and Chelsea and thanking him for making these proposals.