This is another slightly “techie”, or technical, point, but we think that it is an important one. It ties in with another Bill that is going through Parliament at the moment, the National Insurance Contributions Bill, and also with the question of flat-rating of the state second pension, or S2P.

In fairness, the Government have always made it clear that it is their intention in the long run that S2P should cease to be earnings-related and instead will become a flat-rate scheme, based on earnings at the low earnings threshold. In its report, the Pensions Commission said that, as part of the “package”—I think that it is very important to keep that word “package” at the forefront of our minds—that it recommended, that this process should be accelerated and that S2P should become flat-rate by around 2030.

I am trying to deal with this issue as briefly as I can, but some of it is a bit complicated. The Pensions Act 2007—I am sure if the Minister keeps up, he will get there in the end.