Pensions Bill

I thank the hon. Member for The Wrekin (Mark Pritchard) for giving me some of his time, so that I could contribute at the very end of this debate, especially as the issue is so important. Often, because of the way that business is dealt with in the House, representatives from Northern Ireland do not have the same opportunities as other Members to express their views and make amendments. In the short time available to me, I would like to put it on record that we broadly support the legislation. We judge it on three points. First, we ask whether it re-establishes the link between earnings and/or prices and pension payments. Secondly, we ask whether it will encourage saving. Thirdly, we ask whether it will help vulnerable people, especially women and carers, who are often described as second-class citizens when it comes to pensions. As far as the re-establishment of the link is concerned, there is the promise—but it is only a promise—that the link will be re-established by 2012 or 2015. The concern that many Members have expressed is that a large number of people currently living in poverty will die in poverty, without having received the upgrade in pension, and without benefiting from the Government’s proposals. Indeed, in many cases, their poverty will increase as the real value of their pension falls between now and 2012 or 2015. On encouraging savings, I listened to the Secretary of State’s opening speech, in which he talked about moving away from, and relying less on, means-testing. Of course, means-testing provides a disincentive for people, especially those on low incomes, to save for their pensions. For such people, there was not much benefit to be had from forgoing some of their income for a pension later on, as means-testing would kick in anyway. I remain to be convinced that the reduction in means-testing will be as great as the Secretary of State says. There are proposals in the Bill, especially to do with personal savings accounts, that could encourage people to save and make more provision for their pensions. However, like many other hon. Members, I am not sure that there is enough confidence for people to be attracted to personal savings, given the way in which the Government have raided pension schemes and destroyed personal pension schemes. On help for women and carers—the people who do worse in the pensions system at present—some of the proposals, such as the 30-year qualifying period and the measures for those who provide care for 20 hours a week, go some way towards dealing with the problem, but as other hon. Members pointed out, there are still people who will fall through the net. Indeed, Carers UK says that about 15,000 people will still not be covered. I realise that time has run out, but I appreciate the opportunity simply to put on the record our support for the Bill’s general principles. We will examine the detail of amendments and other changes made during its progress through the House.