I am glad to be given the opportunity to speak in this debate.
There have been a few comments, particularly from Opposition Members, suggesting it is a rather thin Queen’s Speech, containing not many Bills, but one of its meatier measures is the pensions Bill, which will set up a single-tier state pension. I hope you do not mind, Mr Speaker, if I spend all my time talking about that Bill, partly because my Select Committee, the Work and Pensions Committee, was asked to carry out the pre-legislative scrutiny. It is the one Bill in the Queen’s Speech that is greatly relevant to my Committee’s work,
and I understand it will be published tomorrow, so today is my last chance to record some of the Committee’s observations. I understand that the Government’s response to our report will be published as a Command Paper at the end of the week. I suspect that both the Bill and the Command Paper have already gone to the printer, so what I say this afternoon will probably not change the Government’s intention, but it is worth rehearsing some of the arguments that my Committee found important enough for the Government to take into account during the deliberations on the Bill in both Houses.
Why is the Bill so important? Anybody who is under state pension age as of April 2016 will be affected by it. The only people who will not be affected by the introduction of the single-tier state pension are those who will have already reached their pensionable age. The fact that 2016 is the year in question is a bit of a bone of contention, because when my Committee undertook its scrutiny and asked for evidence from a range of people, including the industry, individuals and anybody who wanted to have a say, we thought that the starting date would be April 2017. When we took oral evidence, including from the Minister of State, Department for Work and Pensions, the hon. Member for Thornbury and Yate (Steve Webb), at the end of our inquiry, we still thought that the implementation date would be April 2017. It came as a bit of a shock, and was a wee bit to our annoyance, that the Chancellor announced in the Budget that the implementation date was to come forward a year to April 2016.
We interrogated the Minister thoroughly about whether even April 2017 was an achievable time scale or would slip, because we thought it was a pretty tight time scale in which to implement the changes. It therefore came as a bit of a shock to discover that the Government hoped to do it a year sooner. We had not been in a position to ask the industry and employers, in particular, whether they would be ready to implement the changes in 2016.
Notwithstanding the fact that we generally welcome the introduction of a single-tier state pension, it is inevitable and obvious that the Government have continued to roll out auto-enrolment, for which they should be commended. Given that more and more people will have their own second-tier occupational pension, some kind of reform of the first-tier basic state pension has become almost imperative. However, it will not be easy to get from the extremely complicated and convoluted pensions landscape of today, which has a second tier through the state earnings-related pension scheme or the state second pension as well as occupational pensions, to something straightforward and simple. That is what the Government are attempting to do in the pensions Bill.
As the Government have brought forward the implementation date by a year, the Committee thinks it is even more important—we thought it was important anyway—that a proper impact assessment of the changes is done sooner rather than later. We hope that when the Government publish their response to our report at the end of this week, there will be a promise to that effect.
Different sectors will be affected differently, and some groups will inevitably lose out. In any major change there are bound to be winners and losers, but it is not yet clear who they will be under these changes. I hope
that a further impact assessment will be performed because we need to know how the changes will impact on individuals, the pensions industry, and particularly employers.