Public Service Pensions

Stephen Williams Excerpts

Wednesday 2nd November 2011 Commons Chamber

[Danny Alexander]

I think the hon. Lady may have been trying to welcome the protection of accrued rights, in which case I am grateful for her comments. She is right that the switch from RPI is a change to public service pensions that will reduce the benefits over the long term, although that will depend on the scheme and the individual involved. However, it is the right thing to do, because we are talking about the measure of inflation used by the Bank of England to set rates. The answer to the hon. Lady’s question will depend on the individual scheme and the individual person.

[Stephen Williams (Bristol West) (LD)]

Both the Liberal Democrat manifesto, which my right hon. Friend authored, and the coalition agreement committed the Government to an independent review of pensions, and one cannot get more independent than the former Labour Secretary of State, Lord Hutton. Will my right hon. Friend confirm that what he has set out today is more generous to future pensioners and current employees than Lord Hutton recommended, while maintaining fairness for the taxpayer?