Occupational Pensions (Hansard, 17 December 1990)

§ 8. Mr. Cran
To ask the Secretary of State for Social Security what has been the change in real terms since 1979 of the value of income from occupational pensions.

§ Mr. Newton
Pensioners' incomes from occupational pensions grew by 77 per cent. in real terms between 1979 and 1987, the last year for which figures are available.

§ Mr. Cran
Does my right hon. Friend agree that pensioners are among the most deserving of groups and, alas, among the least powerful in our society? Does he agree further that, in financial terms, those who have occupational pension cover have done extremely well, but that, by definition, people with only state pension cover have done somewhat less well? Therefore, is not the way ahead for the Government and employers to continue to encourage occupational pensions and, for that matter, portable pensions, and in the interim to be particularly generous at the next uprating of the state retirement pension?

§ Mr. Newton
It is the aim of our policies–they have been successful—to encourage the continued development of occupational and personal pensions. In referring to the substantial growth in pensioners' average incomes that has taken place, largely as a result of increased occupational pensions, I have never shied away from acknowledging that quite a number of pensioners still have not benefited. That is precisely why, in October 1989, we steered additional help to those least well-off pensioners through the income support system; we shall do so again next April.

§ Rev. Martin Smyth
Does the Secretary of State agree that some people on fixed occupational pensions have not benefited from the increase of latter years and that they may have been penalised most in the pension scheme? Has any study been done of that sector?

§ Mr. Newton
Some of that group will be among those, depending on how small their occupational pension is, who may benefit or have benefited from increases in income support rates. We sought to tackle the underlying problem in last year's Social Security Act, as the hon. Gentleman will remember, by extending the provisions requiring in many more circumstances the uprating of occupational pensions.

§ Mr. Favell
The group that suffers most from a high community charge is pensioners with small occupational pensions who are just over the capital or income limit. Those people are patently honest and nothing hurts them more than seeing others refuse to pay their community charge. Has not the time come to ensure that everybody registers for the community charge and to say that, unless they can prove that they are registered, they should not receive social benefit of any kind, whether it be child benefit, income support or any other?

§ Mr. Newton
My hon. Friend takes me a little wide of the responsibilities that bring me to the Dispatch Box today, but I have no doubt that suggestion will be noted in the appropriate quarters.

§ Mr. Campbell-Savours
Who will pick up the £5,900 million bill for the Government's error in forecasting the 12 costs of switching from the state earnings-related pension scheme to private occupational schemes? Will it be the taxpayer?

§ Mr. Newton
There is no such error. Perhaps the hon. Gentleman will tell me who in the next century would pick up the bill for the unsustainable promises made by his party.