Pensions

Part of the debate – in the House of Commons at 8:46 pm on 31 January 2006.

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Photo of Philip Hammond Philip Hammond Shadow Secretary of State for Work and Pensions 8:46, 31 January 2006

The Secretary of State should talk to his right hon. Friend the Chancellor of the Exchequer. The Secretary of State for Trade and Industry said that the deal is done and that it is set in stone. However, according to the minutes recording the Chancellor's appearance at the Treasury Select Committee on 15 or 16 December, the Chancellor clearly suggested that that was not the case and that it was not set in stone. He said there was merely a framework in place and that negotiations are still to be conducted.

There is therefore a chink of light, and we need to understand what the Government's position is. Everyone needs to understand their position on this vital issue. [Interruption.] My position is that we are all in this together, whether we have a state, public, or private sector pension. A sometimes painful and difficult adjustment must be made if we are to achieve a sustainable settlement. May I tell the Secretary of State that it is not sustainable to say, before the debate begins, that any group in society should be excluded from facing up to the realities of demographic change, reduced investment returns and all the other factors—[Interruption.] The Secretary of State may talk about U-turns now that the election is over, but his Government took on the public sector unions only to back off for party political reasons when the election was called.