UK Parliament / Open data

Pensions Bill

Proceeding contribution from Baroness Hollis of Heigham (Labour) in the House of Lords on Wednesday, 18 December 2013. It occurred during Debate on bills and Committee proceeding on Pensions Bill.

Thank you. I would like to push the Minister on the comments made by my noble friend Lady Sherlock, who rightly warned against hindsight and applying modern attitudes to labour market decisions made some time back. That is a discussion will be repeated when we come on to widows in a moment. The Minister’s references to women being eligible in certain situations to claim pension credit precisely missed the point raised by my noble friend. If someone is in a couple with a husband who has acquired full contributory years, possibly with some minor additional savings, they will be floated off pension credit, so they will not be entitled to claim it, nor will she be entitled to claim it in lieu unless she is indeed solo.

I am grateful for the Minister’s help on “ordinarily resident”. I should like to see the legal advice, because I think it is arguable which side of the bridge it falls on. We have had plenty of debate on that in the past.

The Minister cited the four tests raised by my noble friend on Second Reading. I remind him of the tests in the impact analysis in October 2013: what are the policy objectives and intended effects? Four were offered. It stated that the intended effect of state pension reform was that,

“individuals have a better understanding of the state pension system,”

and how much they can expect to receive,

“and therefore engage more actively with planning for retirement”.

The people we are talking about understood the rules perfectly well. It is the Government who have changed the rules around them, not that they have failed to do anything that the Government think that they should have done at the time. We fail the first test in the impact assessment.

The second test is that the,

“inequalities of state pension outcomes within the current system are reduced”.

Some are reduced, but the Minister is substituting new ones, including those involving the green stamp and the women I am talking about. The third test is that,

“individuals have reduced interaction with means-tested benefits in retirement”.

That is highly doubtful, given discussion on previous amendments. The amount so far established is pretty trivial. The final test is that,

“the state pension system is more affordable and sustainable in the long-term”,

whereas the Minister has been arguing that it is cost-neutral. He failed to address the fact that there appears to be adequate money—£700 million—to introduce a

marriage allowance while taking away support for marriage when it comes to pension arrangements. It is a modern world when it comes to pensions; it is what I do not doubt that the Minister would call a Beveridge world when it comes to married women’s tax allowances. I noticed that he did not venture a comment on or pray the modern world in aid against the Beveridge assumptions behind the married women’s tax allowances, as he would no doubt have described them if we had proposed them and he was criticising them.

The Minister says that the present arrangements are an anachronism. I am sure that it will be a great comfort to those women who are going to lose their 60% entitlement virtually overnight to be told that they are an anachronism and that it is their fault that they cannot shape up in the limited time available to change their situation.

Women have always had a lousy pension deal; it has never worked for them. By refusing to permit a transitional arrangement, we are colluding in that lousy deal by picking off an easy, voiceless, vulnerable group. I have to say that I am disappointed by the Minister’s response, but I beg leave to withdraw the amendment.

About this proceeding contribution

Reference

750 cc344-5GC 

Session

2013-14

Chamber / Committee

House of Lords Grand Committee

Legislation

Pensions Bill 2013-14
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