State Pension Credit Bill [HL]

Part of the debate – in the House of Lords at 5:00 pm on 12 February 2002.

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Photo of Baroness Noakes Baroness Noakes Conservative 5:00, 12 February 2002

My Lords, I thank the Minister for her reply and for the cost estimates, which are indeed significant. In speaking to the amendment, I stressed the impact on future populations of pensioners and, in particular, the incentive effect on saving. Marginal deduction rates will not work only on those in work, who may see only 7p or 9p left from £1 of earnings. They may well have an impact on those considering the effect on their position for marginal extra saving—the sacrifice that they would make while they work to save for their retirement; or, indeed, their decision once in retirement whether to keep their savings or to start to draw them down and spend them.

We have constantly been talking about the effect of the Bill on the incentive to save because it is important that there should be a great incentive for individuals to save so that they do not become a long-term burden on the state. We have constantly asked about that future pensioner population, and have often received answers about the effect on the current pensioner population. Those are two distinct issues. However, I heard what the Minister said, in particular on cost. I beg leave to withdraw the amendment.