Pensions Bill

So what of married women who run off with some toy boy who is American and has never paid national insurance contributions? Just because someone is resident in the country does not mean that they are paying national insurance contributions, so we are back to the same problem. Part of the reason for the Bill is that not everyone was qualifying under the contributory principle. What Lord Turner proposed was not the citizen’s pension as devised by the other political parties, but one as an element of a universal pension. It was not based on the contributory principle. The two are different. To return to my earlier point, as we expand the net of qualification under the contributory principle through national insurance contributions—or, indeed, through credits, which should satisfy my hon. Friend the Member for Birmingham, Selly Oak (Lynne Jones)—it may become sensible in future for residence to become an easier means of identifying those who should receive a basic state pension. At the moment, that is not possible and it will continue not to be possible in future unless at some stage the Government begin to collect the data that would allow people to prove their residency. If that were part of the Bill, it would allow future Governments to decide whether to change the basis in years to come—without having to redesign the architecture of the basic state pension. If we are talking about a pensions system that will last well into the century and for the next 50 years, it may make sense to give future Governments the flexibility to make that choice if they so want. I urge the Government to look further into that. [Interruption.] I am pleased to hear the agreement of the hon. Member for Yeovil about that; it may be one of the few things that we agree on. My proposals are practical, but unfortunately the introduction through the Bill of the citizen’s pension tomorrow would not be possible and I accept the Government’s reasons why it would not. I have spoken much longer than I intended to. My final point is a matter of concern to me, which is why I tried to intervene on the hon. Member for Bournemouth, West. The hon. Member for Angus (Mr. Weir) has already put forward the arguments that I would have made if I had been able to intervene. I had serious concerns about the raising of the state retirement age. It may be because I was born in 1955 and, as a female, will be the first of my generation not to receive her state pension until she is 65. Perhaps that concentrated my mind. I suspect that the hon. Member for Bournemouth, West is slightly older, so perhaps that is why he suggested raising the retirement age much sooner. It may be easier, as it will not apply to him or his generation. I had serious concerns, as do a number of the trade unions, about the raising of the state retirement age simply because of the different demographics throughout the country. Where many men have worked in heavy industry and lived in the most industrialised parts of the country—Glasgow is a good example—the average life expectancy can be as low as 59. People die before they even reach the current state retirement age. I have to say that that is not just a matter of geography or education, but more a consequence of poverty. Unless the Government can ensure that the next generations do not live in poverty—the Government’s avowed aim to lift children out of poverty by 2020 is crucial—the children born in poverty today will not enjoy the same longevity as those born to middle class parents. We must ensure that we lift those children out of poverty so that they can live as long as their more affluent neighbours—and the job has to start now. The package of proposals from Lord Turner included the raising of the state retirement age, and part of building a consensus is that individuals involved in the process have to accept some things that they like less than others as part of that overall package. That is what consensus building is all about—recognition that some parts of the population do not like certain aspects, but they should nevertheless agree to them if they are acceptable and will work for the vast majority of the population. I have thus swallowed my objections to raising the state retirement age, though the long lead-in time is absolutely right and it is dependent on the Government getting their public health policies and their anti-poverty strategy right. It will affect only people younger than 47, who will have the chance to enjoy the same benefits after retirement as everyone else. I have taken up quite a long time. I welcome the Bill and I look forward to the following Bill on savings accounts. I raised the issue of the trivial commutation level with Secretary of State. Getting that level right will be important in answering some of the concerns that the Liberal Democrats have expressed about whether it will always be right to save and whether there will be some—again they will predominantly be women—who may not benefit as a result of small amounts of saving. If we get the trivial commutation level right, being able to take a lump sum, without affecting means-tested benefits, would help to answer some of the questions. This is a good Bill and I am delighted about the change that it will make in the lives of women. They will be able to contribute to, and will qualify for, a basic state pension and they can look forward to a level of income that means that they will be able to enjoy their old age and the years that they have to live beyond retirement age.