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Pensions Bill

I am not sure that that is an argument in favour of the scheme. Presumably all Members would want people to claim the benefits to which they are entitled, and using the fact that some do not as an argument in favour of the scheme seems wrong. It does however reinforce the importance of a basic state pension that raises people above the poverty line and forms the firm foundation that is needed to make the personal accounts workable for everybody. The Pensions Policy Institute analysis shows that the people who run a high risk of personal accounts being unsuitable are likely to receive back less than the value of their contributions. The institute has highlighted several groups, including single people who are likely to rent in retirement and have no additional savings. Those people are likely to qualify for less means-tested housing benefit as a consequence of saving in a personal account. In 2005, 20 per cent. of pensioner households were eligible for housing benefit, which is likely—according to the PPI—to place them in the high-risk group. The latest projection suggests that that figure could fall to 15 per cent. if current home ownership trends continue, but the interaction between personal accounts and housing benefit is a critically important part of the argument that must not be lost in the debate.