Pensions Bill

It is understandable that the financial assistance scheme and the way in which we might help those who have been cheated of their pensions have dominated today’s proceedings. I certainly hope that the Government will come back with proposals that are more generous than those on offer. However, the Bill should be setting a solid foundation for the next 50 or so years, so it is most unfortunate that there has been such little time to debate some of its fundamental aspects. I was disappointed that all the concerns that I raised on Second Reading were not addressed in Committee and that they were not even discussed, let alone voted on, on Report. Although there are many welcome provisions in the Bill, especially those relating to pensions for women, I cannot see how the Bill, as it stands, will be a firm foundation for the future. My hon. Friend the Minister mentioned Barbara Castle. I am sure that she would have welcomed the provisions for women in the Bill, but I do not think that she would have been proud of the continuation of the means-testing that is still inherent in our pension system and the disincentives for people to save so that they can provide better for themselves than the state can do. Although it is good that the Government have accepted the recommendation of restoring the link to earnings, it will be some time before that happy event takes place. In the meantime, the disparity between the basic state pension and the means-tested pension credit will continue to grow, not narrow. That will mean that more people will be subject to means-testing, which will be counter-productive to our fundamental aims. Sadly, many people will thus be automatically enrolled into the new pension scheme when they would be better off using their money in other ways to save for their future. It is unfortunate that we have not been able to have an adequate debate. I ask the Government to bear that in mind when they set out in future the arrangements for the Report stage of such complex and important legislation. For obvious reasons, the Minister talks about affordability when addressing the aim of reducing means-testing and improving the basic state pension. However, we have not been able to debate today the amount of taxpayers’ money that is spent on tax relief and the fact that the majority of that money goes to the 5 per cent. of people in our society who are the most wealthy. We are shortly to have a new Prime Minister. I hope that this is an issue to which the Government will want to return because if we are really concerned about creating a fair society and encouraging people to do more for themselves, we have to address it. We have to look at ways of ensuring that more resources are directed to those on lower incomes. If that means taking money away from those on higher incomes who have the ability to provide for their old age without substantial largesse from the taxpayer, that is something that a Labour Government should want to do. I remain dissatisfied with the Bill, and I hope that there will be an opportunity in the other place to improve on it. I hope that I will be able to be more enthusiastic in supporting it when it comes back to this House.