Single-tier Pension

Oral Answers to Questions — Work and Pensions – in the House of Commons at 2:30 pm on 24th February 2014.

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Photo of Lorely Burt Lorely Burt Liberal Democrat, Solihull 2:30 pm, 24th February 2014

What steps he has taken to help those reaching retirement age before the introduction of the single-tier pension.

Photo of Steve Webb Steve Webb The Minister of State, Department for Work and Pensions

For those who will reach pension age before the introduction of the new state pension, we have introduced a new class of national insurance contributions, which will allow those pensioners the opportunity to increase their state pension in retirement. More details of the scheme will be announced later this year.

Photo of Lorely Burt Lorely Burt Liberal Democrat, Solihull

I am grateful for that answer and it is extremely encouraging. Can my hon. Friend the Minister say what the Government have done to ensure that pensioners in my constituency are able to manage the cost of living rises in this Parliament?

Photo of Steve Webb Steve Webb The Minister of State, Department for Work and Pensions

As my hon. Friend knows, the manifesto on which she and I stood proposed a triple lock, which was implemented by this coalition Government. It means that each year the pension will rise by the highest of the growth in average earnings or prices or by 2.5%, so the state pension is now a higher share of national average earnings than at any time in more than 20 years.

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No point in him mentioning proposed triple lock when he is taking away increases on a persons contracted out pension (GMP) for people who were contracted out prior to 6 April 1997 who reach state pension age after 5 April 2016...

Submitted by Chris Thompson Continue reading (and 1 more annotation)

Photo of Gregg McClymont Gregg McClymont Shadow Minister (Work and Pensions)

The Minister has today laid before the House a pensions written ministerial statement that intimates that following a year-long Labour campaign the Government intend to ensure that pension fund managers in the City disclose the fees that they charge for trading all of our pension assets. That is welcome, but of course the devil will be in the detail. On that basis, can he confirm today that that disclosure will include the number of times that fund managers churn our pension assets for a fee?

Photo of Steve Webb Steve Webb The Minister of State, Department for Work and Pensions

I know that the Opposition like to bluster a lot to cover their embarrassment at taking no steps at all on this in 13 years in government. By contrast, this week this Government are legislating to shine a light in the murky corners of the pensions industry, so that value for money is finally achieved for pension savers.