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Pensions Bill

My Lords, I am saying that some of the initial modelling shows that it would take a 50 per cent increase for the package to be cost-neutral. If you took away the adjustments for the class 3 contributions, the present net value of the cost would be about £600 million, which is about one-third of the figure that we talked about in relation to the original proposal. However, I stress that there will in any event be a need to adjust the class 3 price simply because the deal changes post-2010, and only the initially modelling has been done. There is more work to do and ultimately it is for the Treasury to deal with it. The noble Lord, Lord Skelmersdale, made the point that it will not be right for everyone to take up this opportunity. Those who have, or are heading for, pension credit could spend money but get just a net nil out of it. He is absolutely right about that, as he is with regard to the importance of an information campaign to ensure that people have the right information.