Oral Answers to Questions

Kelvin Hopkins Excerpts

Monday 23rd June 2014 Commons Chamber

[Mr Duncan Smith]

I am in discussions with colleagues from various countries in the European Union. Many of them, including the Dutch and the Germans, have made it clear that they essentially support our direction of travel and that some kind of change must be made to the regulations. The German Chancellor made Germany’s position clear, saying that the EU is “not a social union” and there cannot be de facto immigration into other EU social systems.

[Kelvin Hopkins (Luton North) (Lab)]

19. What estimate he has made of the number of people who will receive face-to-face guidance at the point of retirement in 2015-16.

[The Minister of State, Department for Work and Pensions (Steve Webb)]

From April 2015, we expect over 300,000 individuals who retire each year to be able to take advantage of the new pension flexibilities and access the offer of free guidance. The Government have recently consulted on the delivery framework for the guidance, to ensure that it is designed to give consumers the support they need to make informed choices in the way they choose to access it.

[Kelvin Hopkins]

How will the Government ensure absolutely that retirees who cash in their annuities are not exploited by private sector financial vultures in the guise of advisers?

[Steve Webb]

The hon. Gentleman raises an important point. We already hear anecdotal examples of people getting cold-calls that say, “This is your Government guidance offer.” We want to make it clear that that is not based on Government guidance, because that has not started yet. We are trying to make sure that instead of people making retirement choices with no information or advice, which often happens, they will have a right to go to a reputable provider and get information and guidance from someone who does not have a commercial interest in selling them something.