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Pensions Bill

Indeed. That implies that people who save money in personal accounts will start by going on an up escalator in relation to the value of their contributions, because they will get the employer contribution, the money from the taxpayer and, they hope, the investment returns that are no doubt built into the Government’s figures, but will then start on a down escalator because they will lose the charges, lose the income tax on the pension when they draw it out and, in some cases, lose pension credit, council tax benefit or housing benefit, while those who are self-employed will not get the employer contribution at all. The great aspiration originally set out by Lord Turner—that every £1 that goes in should be worth at least £2—seems to have turned into the rather modest expectation of £1 for £1. Even more worrying is the apparent confusion about the issue. I will happily give way to the Secretary of State if he can clarify it, because it is pretty important. Unless I have misunderstood him, he is saying that the vast majority of people are going to gain £2 for every £1, yet his report says that it will be £1 for £1.