Pensions Bill

When I retired from the opposition Front Bench as spokesman for work and pensions after eight years, I was clear that I was leaving that responsibility in the talented and admirable hands of my noble friend Lord Skelmersdale. I congratulate him on how he has continued to fulfil that role so diligently. It is a very onerous task. At the same time, I resolved not to take part in debates on work and pensions. I should have known better than to sit in the Chamber this afternoon. Like my noble friend Lord Fowler, I was astonished by the speech of the noble Lord, Lord Oakeshott. I moved amendments very similar to those that we are debating now in the debate on the Pensions Bill on15 November 2004, as reported in Hansard atcol. 1224. On that occasion, the noble Lord, Lord Oakeshott, seemed very clear that he was in favour of raising the limit—indeed, of abolishing the limit entirely—and he voted accordingly at col. 1236. Your Lordships’ House has carried similar amendments with suitable safeguards—provided in 2004 and today—to ensure that people did not spend the lot and become dependent on the taxpayer. We have carried such provisions on three occasions, the third being the date that I mentioned. If I was astonished by the speech of the noble Lord, Lord Oakeshott, I was even more astonished by that of the noble Baroness, Lady Hollis. She also spoke in the 2004 debate, when I had to point out that removing this limit or even raising the age limit—and I am in favour of getting rid of it altogether—would benefit not only the rich. People on lower incomes also would benefit from not drawing their annuity at a particular age and could well take the view that they could get a better annuity if they delayed than if they were forced into it on a particular date. I have taken the view for some time that interest rates will continue to rise and that annuity rates will be higher than they were when we debated the matter in 2004. However, that advantage, that choice, would benefit not only those with relatively large pension funds. I welcome the noble Baroness on this road to Damascus; it is good that she can now recognise that. Nevertheless, it is very difficult to reconcile her speech today with the one she made in 2004. This has been going on far, far too long. Your Lordships’ House has agreed to amendments of this type three times, and I very much hope that the Committee will agree to them again today. This matter needs to be resolved. It is absurd that people should continue—subject to the point made by the noble Lord, Lord Turner, about the tax treatment arrangements—to be denied that choice and forced to take an annuity at a moment that is disadvantageous to them, with absolutely no benefit to the Treasury. I hope very much that your Lordships will support this amendment, moved so admirably by my noble friend Lord Hunt.