Age Concern's response to the Pensions Bill

Wednesday 29 November 2006

Responding to the Pensions Bill, Age Concern’s Director General, Gordon Lishman, said:

“This Bill is very good news for future pensioners but short-changes today’s.”

Link to average earnings

“It’s great news that the Government has put an end to the uncertainty and given a clear commitment to restore the link to earnings in the next parliament. This is fundamental to building a pensions system that will stand the long test of time. 

“Upholding the link between Pension Credit and earnings is also extremely welcome. But still more must be done to help today’s pensioners who are already struggling on a pitifully low state pension and missing out on vital benefits cash.”

Women & carers

“After years of campaigning, we are thrilled that the Government has finally listened to our calls for a better deal for women. Reducing the number of years needed for a full state pension to 30 and promising a more flexible carer’s credit will boost the pensions prospects of millions of women and carers. But these changes must be introduced retrospectively to help those already retired with incomplete records.”

State Pension Age

“If State Pension Age must rise to fund a better state pension, there has to be a significant transformation in the workplace to enable older people to continue to work if they want or need to. Mandatory retirement ages must be scrapped and targeted programmes must put in place to support those who need training and those who cannot work. The Government must ensure that this move does not worsen the inequalities between rich and poor.”

Ongoing pensions commission

“It is disappointing that the Government has failed to recognise the need for an ongoing pensions commission. We strongly support the idea of having an independent body to advise government on the success of the new measures, as well as any new steps needed to ensure everyone has the chance of a decent retirement income.”

Personal accounts (NPSS)

“We strongly support proposals for a new system of personal accounts and look forward to seeing the detail in next month’s White Paper. A national pensions saving scheme would give those without access to a private pension the chance to build up essential savings. Immediate automatic enrolment and compulsory employer contributions will have an important part to play if such a scheme is to work effectively.”