Local Government Finance — Statement

Part of the debate – in the House of Lords at 3:14 pm on 17th December 2015.

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Photo of Lord McKenzie of Luton Lord McKenzie of Luton Shadow Spokesperson (Work and Pensions) 3:14 pm, 17th December 2015

My Lords, the Minister will be aware that in April next year we have the introduction of the single-tier state pension and with it the end of contracting out. In Budget 2013 it was recognised that, from April next year, that would garner the Government an extra £5 billion a year. It was said at that time that those funds would be used to help fund the costs of the lifetime care cap, which was to be set at £72,000 and introduced in April 2016. That of course has been deferred, so what is happening to those resources if they are not going to be applied to that?