Pensions Reform

I am grateful to my hon. Friend, who makes my point even more concisely than I had hoped to do. He is right. Some of young people’s spending is about living for today. Some of it, however, is about accepting that they must buy a home and provide for their families. At the same time, under our pay-as-you-go pension scheme, they must pay for the pensioners of today while hearing some pensioner groups say that they do not want to pay any taxes, that they have done their bit and worked all their lives and that, despite having had tax-free savings, they do not want to pay tax now. When young people hear that, they think, ““Hang on a minute. I’m still paying, and earning less than they receive in their pension, yet I’m being asked to pay taxes, save, pay my mortgage and look after my children.”” We must ensure a generational balance. Both generations—the oldest and the youngest—must feel that they are being treated fairly. We cannot build consensus without agreement between the generations. Not all pensioner groups feel exactly the same, because they have children and grandchildren and do not want an excessive burden placed on them.