Pensions Bill

moved Amendment No. 134: 134: Before Clause 107, insert the following new Clause— ““Announcement regarding link with earnings Within six months of the coming into force of this Act, the Secretary of State shall announce to Parliament his intention as to the timing of the implementation of section 5 of the Pensions Act 2007 (c. 22).”” The noble Lord said: This amendment, which would insert a new clause into the Bill, hides for me a real dilemma. For many years we have had annual uprating orders whereby the state pension has been increased by the rate of inflation pertaining in the previous October. The noble Lord has done several, and I did many more. Section 5 of last year’s Bill, now enacted, states that the Secretary of State would introduce an order for state pensions to be increased instead by the increase in the average wage. This concept was intrinsically linked in the Pensions Commission’s report with the introduction of what we now call personal accounts. The Government have said that they will be introduced in 2012, though recent statements by the chief executive of PADA have thrown some doubt on this. It seems to be merely an objective, not a promise. Furthermore, we do not yet know whether the Government regard the tying of this to the introduction of personal accounts as essential or not. The Government have been extremely vague about great chunks of the Bill. It is in essence a framework Bill, and the Minister’s attitude, as I said on Amendment No. 130EW, has been one of, ““Let’s have it in the Bill, and if necessary we’ll change it by order””. That is no way to legislate. If the Government are unsure of the final format for a particular clause in Committee, they should allow themselves time to think and bring the subject back on Report. As for this amendment, I believe that the Government need to be pinned down on the start date of restoring the link with earnings. For us on these Benches, to allow flexibility is one thing, but it does not extend to a vague promise to change things by the end of the next Parliament. Six months after the passing of this Bill, the Government should know when restoring the link will be possible. Indeed, if my great party had won the 2005 election it would have already happened, as we promised in our election manifesto. So it is time, or rather will be in eight or so months, for the Government to stop their dithering and come to a decision. On this matter at least, it is time for the Government to govern. I beg to move.