Funded Pensions — 2 Jul 2002 at 21:41

I beg to move,

That this House agrees with the Government's stated aim of increasing from 40 per cent. to 60 per cent. the proportion of pensioners' incomes that comes from the private sector, but condemns the Government for failing to pursue policies which would achieve this objective and instead imposing a massive £5 billion annual tax on pension funds, and for presiding over the lowest savings ratio since records began; notes that fewer than four in ten final salary schemes are now open to new members and is shocked by the Government's complacency in the face of widespread concern about the future of funded pensions; and therefore calls on the Government to cut the burden of regulation on pension funds, reverse the spread of means testing among pensioners, reform annuities and provide better incentives for people to save, so that they can enjoy a prosperous retirement.

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

'welcomes the Government's framework for pensions which will reduce pensioner poverty and encourage saving; recognises that pensions are best provided on the firm foundation of the sound economy the Government has put in place, with partnership between employees and employers, pension providers and Government; congratulates the Government on the extra £6 billion paid to pensioners from April of this year and its intention to bring in the Pension Credit which will increase the incomes of around half of all pensioners; further welcomes the introduction and progress of stakeholder pensions; recognises that there is still more to do and looks forward to receiving the Pickering and Sandler Reviews and consulting on proposals for reform in the Autumn.'.

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

The House divided: Ayes 140, Noes 381.

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