This is a vastly important issue, and I genuinely want to work with the Government on it. All of us in this place have a collective responsibility to get pensions right. I will accept that there is a shared concern across the House, with a recognition that pension saving is not at a sustainable level in this country.
My problem with the lifetime ISA proposal is that it undermines what should be the best route for all, which should be saving through the new auto-enrolment, with the incentives that are there. Of course, that will be discussed when the plans are presented to Parliament, but I say to the Government that they should be very careful with what they are doing, because we all share the ambition to get this right. I make the offer to the Government that we are prepared to work together to make sure that we get the best mechanisms to increase pension savings in this country.
Pension saving is at a crisis point, and no amount of regulation will right that problem—[Interruption.] I can hear some guffawing; I will try to wrap up my remarks, but I have been very generous in taking interventions from across the Floor. We need a fundamental overhaul of the pensions system. The Tories need to be more ambitious on pension reform and find real solutions that incentivise pension saving. The SNP has long called for the establishment of an independent pension commission to look holistically at pension reform, focusing on existing inequalities and paving the way forward for a fair, universal pensions system.
We must also prioritise fraud and scam prevention. Kate Smith, head of pensions at Aegon UK, commented that fraud and shams that pensioners are vulnerable to should really have been tackled in the pensions Bill. She said:
“I’m extremely disappointed that the government has failed to use the Queens Speech as an opportunity to tackle the ever-growing threat of pensions fraud via legalisation.
We still need to look at ways for the industry, regulators and pension industry to work together to raise the profile of pensions fraud to stamp it out and protect savers.”
I am going to wrap up my remarks, Madam Deputy Speaker, but let me just say that nearly 1 million people aged over 75 live in poverty and need more help from the Government, according to a report by City University London and Independent Age. It also suggests that the income of those aged over 75 is, on average, £3,000 a year less than that of younger pensioners. Those figures suggest the vital need for a sustainable income in retirement to be available for our older generation, and the Government must do more now to address that. There is so much that needs to be addressed to give confidence to savers and pensioners.
Our alternative Queen’s Speech proposed a universal pensions Bill to support a more progressive pensions system. Such a Bill would establish an independent pensions commission to investigate the inequalities in current and future proposed pension policies; fund transitional arrangements for WASPI—Women Against State Pension Inequality Campaign—women affected by the rapid pace of increases in the state pension age; and allow for further development of access to automatic enrolment and further options to incentivise pension saving. The complexity of the pension system is a real turn-off for savers, preventing them from shopping around or making sound savings choices. Just last week, the Bank of England’s chief economist, Andy Haldane, said that the British pension system was so complicated that even he failed to understand it, and he warned of the damaging consequences that that presents for consumers as they approach retirement. Conversations with countless experts and independent financial advisors have confirmed for me only one thing: they have no clue either.
That comment about having no clue could equally be made about the Government in the Queen’s Speech. We have outlined an SNP alternative, delivering a message of hope and vision for the people of Scotland. It is not too late for the Tories to open their ears and, indeed, their minds to a different direction. If the Government seriously want to increase the life chances of our children, they must return to the drawing board on social security cuts and admit that they have got it wrong, as they have done on the economy. Instead of the promised assault on poverty, we have been left with a Government plan that has a poverty of ambition. There is a different way, and I appeal to the Government to make the right political choice and abandon austerity.
5.10 pm