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Pensions Bill

I am happy to write and provide any stats we have. However, I reaffirm the principle that if we aligned to the upper earnings limit in the primary threshold—and those are generally uprated by inflation Rooker-wise and by everything that went with it—there would be a potentially growing divergence, on the assumption that earnings are generally ahead of prices. Over time and the longer term, there could be a considerable divergence between those thresholds and the thresholds that we are considering when they are updated by earnings. I do not have data for the top end, but as regards the lower threshold, in 2012—these are in 2006-07 earnings terms—the amount would be £5,035. It would be the same in 2030-40 in current earnings terms. If we uprated that band by prices, by 2040 the £5,035 would have reduced to £2,890 and we would be back with the problem of potentially incentivising people into pensions for whom the state was providing a better replacement rate. That is why we think the link with earnings is particularly important. I am happy to share the data with my noble friend and other noble Lords.