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Proceeding contribution from Lord McKenzie of Luton (Labour) in the House of Lords on Monday, 31 October 2011. It occurred during Debate on bill on Pensions Bill.


Pensions Bill

My Lords, I thank noble Lords who have contributed to the debate on my amendment. I will comment first on the Minister’s response. I agree that there is broad agreement on the need to have changes to the state pension age that reflect changes to longevity, and that they must be sustainable. However, part of that judgment surely has to be the notice periods that people are given—that must be part of the equation. But otherwise, even taking account of that, we have a consensus on that issue. The noble Lord responded to the noble Lord, Lord German, in respect of future changes to the pension system, and we still await that. The noble Lord, Lord German, tends to hide behind the prospects that come from that in defence of everything that the Government do. The noble Lord said that he was perplexed because this proposition has been defeated twice; he is absolutely right, it was defeated, and quite narrowly last time, but there is more joy in heaven and earth over a sinner who repents. Here is the Minister’s opportunity to do that. My noble friend Lady Hollis made a telling point about the equality directive, if one listens to what the Minister said. She also made a point, for example, about higher rate tax relief. The noble Lord, Lord Boswell, I think, said that we wanted a medium-term strategy as well as a short-term deficit reduction strategy. I absolutely agree with that. Our proposition is that these issues of whether it is £30 billion or £20 billion should be very much part of that consideration of the medium-term strategy, together with issues such as the costs of tax relief, rather than to isolate and look at a juxtaposition of two propositions, to see if one has greater savings than the other, and therefore to condemn the one with the lesser savings. I very much agree with my noble friend Lady Drake; we are not against raising the state pension age, nor against accelerating the time when that happens, but there are issues around the manner and timing of any change. The noble Baroness, Lady Howe, said that there was more to be done for the group of women we are considering here, particularly in view of their caring responsibilities, and I very much agree with that. The right reverend Prelate the Bishop of Bath and Wells said that this was an issue of fairness and a moral imperative, and that is absolutely the issue here. The noble Lord, Lord German, has argued that this is an issue of affordability—and of course, affordability is part of it—but does affordability always have to trump fairness? I would contend not, by this amendment. The noble Lord, Lord German, referred to intergenerational issues. If we look at the impact assessment and the difference of the intergenerational factors between our proposition and the Government’s, there is very little difference between the two. The noble Lord referred to the noble Lord, Lord Turner, going ““further and faster””; yes, but one of the propositions of the noble Lord, Lord Turner, was that proper notice should be given to people. The noble Lord, Lord German, and the noble Baroness, Lady Greengross, acknowledged that the Government had moved—the term ““compromise”” was sprinkled around the debate. It does not seem an incredibly big compromise to remove just the period between 18 months and two years for those affected, and shift those people into the ““up to 18 months”” category. It is some movement, and I am sure that it will be welcomed by the beneficiaries, but it does not address the fundamental problem. I do not think that we will not have a meeting of minds on this issue—the Minister has made his position clear—and I would like to test the opinion of the House on this matter. Division on amendment to the Motion Contents 183; Not-Contents 235. Amendment 1A disagreed. Motion agreed. Moved by


Secondary information

Type
Proceeding contribution
Reference
731 c994-6 
Session
2010-12
Chamber / Committee
House of Lords chamber
Subjects
Age Annuities Women Equality Insolvency Workplace pensions Pensions Consumer prices index Retail prices index State retirement pensions Retirement Occupational money purchase schemes
Legislation
Pensions Bill (HL) 2010-12
Link
View this Proceeding contribution on www.publications.parliament.uk