---

Raising of the Pension Age

That is certainly my fear. Many of the lowest paid workers, including those with a couple of part-time jobs, will not be in the scheme at all. Many employers will encourage their workers to opt out so that they can save money. Although the scheme is set up by the state, there is no state guarantee to back the fund. If the stock market collapses, the fund could be devastated, as could individuals' pension pots. I argued in the Work and Pensions Committee that it would be perfectly feasible and reasonable for the Government to guarantee fund growth of at least 1 or 1.5 per cent. a year. It is claimed that stock market investments grow at a significantly higher rate than that over time, so it would be relatively easy for the Government's extra commitment in the bad years to be made up in the good ones. However, there is no such guarantee. This is not the bold scheme that was needed from a Labour Government to replace our overall employer-based set-up. That set-up is very good when it comes to the operation of pension funds, although that is true mainly for wealthier, well-organised workers. As we know, however, occupational pension schemes are collapsing in all sorts of ways and do not cover enough workers by a long way. The personal accounts fund will be left to wither under the Tories, however much they bluster now. It will be ripped off by consultants and pension fund managers who charge a high rate of interest. At the end of the day, it is likely to be inadequate for many workers. That, then, is the diminishing of the benefits side of the deal that brought in the raising of the pension age, but we should also look at what the Tories are signalling for the raising of the pension age to 66. As the hon. Member for Castle Point (Bob Spink) said, they are rushing it forward to 2016 for men and to 2020 for women.