Pensioners' Incomes — 10 Mar 1998

I beg to move,

That this House notes with concern the Government's refusal to rule out means testing the basic state pension; believes the Government Actuary's advice to change the National Insurance rebates for those contracting out of SERPS is a direct result of the Chancellor's decision to abolish the ACT dividend tax credit in his July Budget, placing a huge burden on future pensioners, creating turmoil in the pensions market and confusion over pension reform; and calls upon the Government to apologise for devaluing long-term savings and creating fear amongst the most vulnerable members of society.

I beg to move, To leave out from "House" to the end of the Question, and to add instead thereof:

"welcomes the Government's commitment to maintain the basic state pension as the foundation of pension provision and to uprate it at least in line with prices; welcomes the tough action which is being taken to ensure that victims of pension mis-selling are compensated; welcomes the action the Government has already taken in giving a Winter Fuel Payment to all pensioners with fuel bills to pay and fulfilling its promise to Britain's pensioners by cutting VAT on fuel to five per cent.; welcomes the Government's progress in developing pensions policy which will benefit today's and tomorrow's pensioners; welcomes the widespread consultation the Government is undertaking and notes that the Government's Pension Review has received over 2,000 submissions from pension providers, employers, trade unions, pension experts and pensioners' organisations; notes the widespread support for the Government's proposals for Stakeholder Pensions; and deplores the previous administration's policies on pensions, their imposition of VAT on fuel and their attempt to increase VAT on fuel to 17.5 per cent."

So much for the Financial Secretary's words:

"The measure is good for pensions and pensioners, not bad for them . . . People should understand that our reforms will benefit pension funds."--[ Official Report , 3 July 1997; Vol. 297, c. 507.]

Question , That the Question be now put, put and agreed to.

Question put accordingly, That the original words stand part of the Question:--

The House divided: Ayes 161, Noes 294.

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