State Pension Reform

Margot James Excerpts

Monday 14th January 2013 Commons Chamber

[Margot James (Stourbridge) (Con)]

I greatly welcome the simplification of the existing scheme, the introduction of a flat-rate state pension, and the credits for people who have undertaken caring responsibilities and women who have taken career breaks. My hon. Friend has corresponded with me about current pensioners and people who will retire before 2017. What more can he say to reassure my constituents who fall into those categories that they will not lose out terrifically to people on the new system?

[Steve Webb]

My hon. Friend has raised a crucial question. There is some anger and some suspicion that somehow we are throwing money at future pensioners and ignoring today’s, but I can give a categorical assurance that that is not what we are doing. The budget for the new system is the same as the current budget. It is important to note that we are not simply taking the basic pension of £107, sticking 30-odd quid on it, and ignoring all today’s pensioners. We are combining the basic pension, the state second pension and the savings credit into a single flat payment. It is not comparing like with like just to compare the current basic pension with the £144 pension; it is a much more complex process.