Clause 9 - Survivor’s pension based on inheritance of deferred old state pension

Pensions Bill – in a Public Bill Committee at 4:15 pm on 2nd July 2013.

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Question proposed, That the clause stand part of the Bill.

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

Again, very briefly, this clause has to do with the circumstances in which the deceased has deferred their old-scheme state pension, but when someone defers a state pension, they can take that money as a lump sum or an increment on their pension. Clause 9 sets out that a single-tier pensioner can inherit the increment from their late spouse or civil partner if the deceased had deferred their old-scheme state pension. Again, it just shows the complexity of the system that we are trying to deal with that people could defer and get increments and defer and get lump sums. People could then inherit the increments and inherit the lump sums. I hope that the Committee is starting to see why we thought that this was a system ripe for simplification.

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

I again thank the Minister for his explanation. Opposition Members think that clause 9 is eminently sensible. I have nothing further to add.

Question put and agreed to.

Clause 9 accordingly ordered to stand part of the Bill.

Schedule 5 agreed to.