Pensions Reform

I will do so a bit later, if my hon. Friend will bear with me. In extending the financial assistance available in that way, we took proper account of the issues raised in the ombudsman’s report. The scheme will now cover some 40,000 people, and—as I said in response to my hon. Friend the Member for Sunderland, South (Mr. Mullin)—it represents a substantial additional investment, taking the total cash funding from £400 million to more than £2 billion. In making its recommendations, the Pension Commission acknowledged the progress that we had made since 1997. Its report was designed to build on that progress. The commission made clear that there was no immediate pensions crisis, but said that there would certainly be one if we did not act soon. It identified four principal challenges. First, there was the problem of undersaving, affecting perhaps as many as 12 million people. Secondly, by 2050 there would be 50 per cent. more pensioners than there are today. Over the same period, the ratio of people in work to those in retirement would halve. In fact, the latest research has revealed that during the last 20 years, life expectancy at the age of 65 has grown at the rate of about 15 minutes per hour.