Social Security (Contributions) (Amendment) Regulations 2010

The fact that I said I was sure there was one does not mean that I necessarily know what it is. I suspect that it might be one of those situations where dismantling the process may be more consuming of parliamentary time and taxpayer resource than maintaining the current approach. If there is an even more cunning answer to the noble Lord’s question, I will write to him and send a copy to the noble Baroness. We do not regard the proposed increase in NIC as a tax on jobs—far from it. Our approach to jobs has been commendably strong and effective, as evidenced by unemployment being so much lower than would have been anticipated—and, indeed, than we anticipated—given the way that the economy has gone through recession over the last couple of years. We have made many efforts and taken many steps to strengthen employment prospects through various allowances and schemes specifically targeted on benefiting small and medium-sized enterprises, which are the absolute rock of the UK economy. The noble Baroness referred to pension schemes. The decline in defined benefit provision in the private sector is a global phenomenon which is not limited to the United Kingdom. Put simply, the world came to understand that the defined benefit promise was a more expensive one than it had anticipated—something which it came to realise in part because of changes in accounting treatment. Throughout the developed world, where the defined benefit scheme was offered by private sector employers, it is increasingly being limited to existing members and not extended to new joiners. They go into a defined contribution scheme where the employer and employee jointly share the investment risk and there is ample provision for employees to increase their contributions if they wish. The noble Baroness referred to a 13-year war on defined benefit pension schemes. I believe that she has in mind the steps that the Chancellor of the Exchequer took to withdraw the tax credit benefit which was being received for no good reason by pension funds. It is worth reminding the House that that was the continuation of a policy step first taken by the noble Lord, Lord Lamont of Lerwick. The Conservative Party tends to wash over that fact when addressing this subject. I am delighted that these proposals have received the support of the Tory and Liberal Benches. I commend the regulations to the House for approval. Motion agreed.