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Pensions Bill

It is the case that the DWP has within its funds sufficient money to be able to match fund the amounts that may come forward. It is a matched funding commitment and we expect that the Young review will identify some extra funding that will enable us to increase the amount of funding available for the pensioners. We have said that we will look at that issue, and our view is that we will be in a position to match demand in the approaching comprehensive spending review period and deliver the increase from existing departmental assets. In terms of the Conservatives’ approach, let us consider amendment No. 17, which would launch the Conservative lifeboat—it is in many ways an opportunistic attempt to generate party political controversy on this issue. The interim report of the Young review has, essentially, debunked the notion propagated by the Conservatives that there are large amounts of unallocated assets in pensions and insurance accounts waiting to be plundered. That means that the increased costs of the proposal—the Conservatives want to go right up to Pension Protection Fund levels—would inevitably fall on the taxpayer. That is a potential cost of almost £2.7 billion over the next 60 years or £640 million net present value. The Conservatives have made no real provision for that. They told us that it would cost the taxpayer nothing and could all be paid for by the supposed unclaimed assets. It is worth reminding ourselves that the Conservatives were repeatedly warned by, for example, Lord Turnbull, who said that using unclaimed assets would represent"““a flagrant departure from the principle of evidence-based policy making.””—[Official Report, House of Lords, 6 June 2007; Vol. 692, c. 1168.]" We now have the evidence from the Young review that shows this to be an uncosted amendment.