Treasury and Work and Pensions

The old means test was an unpleasant and undignified process, but the means of claiming benefits that people have to claim was very straight forward. I am sure that the hon. Gentleman would not propose a blanket high level of pensions throughout the whole community, as that would be completely wrong. Targeting the money where it was most needed was absolutely the right thing to deal with the problem of ending pensioner poverty and, although I do not have the statistics on that written on this piece of paper, they are extremely good. I am glad that the proposals that are coming forward will not be about the universal or citizen’s pension. That is the Liberal Democrats’ proposal, although the Scottish National party also referred to it. Although superficially it looks attractive because everybody receives it, there are two objections. The obvious one is cost. I understand that to do what is wanted—that is, to get a universal pension up to the pension credit level—would account for some £60 billion a year by 2050. The second problem is to do with a deeply ingrained sense of justice among my constituents that if people make more effort, that should be recognised. It is important to keep that, albeit with a contributory principle, although one that is not quite as onerous as what we have now. Although I was initially attracted to the idea of a universal pension, it is right that we should retain a pensions process that recognises the contributions that people have made during their working lives, be that at home, through caring or in work. I also welcome the proposed improvements to home responsibilities protection and the fact that more women will have much longer full-time working records when that is introduced. Some of the problems that women have faced previously because of the restrictions on part-time work—partly because they could not get child care, as they can now—will, I hope, have worked their way out of the system. Finally, I ask my hon. Friend the Minister for Pensions Reform please to ensure that he addresses the problem of building women’s confidence in pensions when those proposals are brought forward. A lot of women paid the national insurance stamp all their working lives, but received nothing. They took out private pension plans because they did not have occupational plans, but those plans were mis-sold. Women have also seen the state earnings-related pension scheme widow’s pension largely disappear through changes that were made. It is important that women have the sense that if they pay into the system, it will pay out to them as well, and that it is worth putting money into their pension, so that they can see it as something for them, not just for their husbands or their partners. Apart from that, I look forward to seeing the proposals online, because they will address a burning sense of injustice that many of my constituents feel about the lack of pensions for them.