§ 22. Mr. QuinnTo ask the Secretary of State for Social Security if she will make a statement on the availability of value-for-money pensions for those on low income. [9050]
§ Mr. DenhamOccupational schemes provide good-quality second pensions for half of all employees, but some personal pensions can be poor value for those on low incomes and with intermittent patterns of work. As part of our pensions review, we will consult widely on how best to take forward our proposals for stakeholder pensions to ensure that those without good-quality occupational pension schemes have access to secure, flexible, value-for-money second pensions.
§ Mr. QuinnDoes my hon. Friend agree that what the people of Scarborough, Whitby and the nation need is 19 a flexible second pension, which will mean that they need not rely on a means-tested pension when they reach old age, and that they can have a proper standard of living and afford a proper existence in retirement?
§ Mr. DenhamMy hon. Friend is right. His constituents and many other people throughout the country want an end to the situation whereby, if they join a pension scheme for a few years and then have to leave work, a high proportion—in some cases 50 per cent. or more—of their savings can be eaten up by fees and charges and is not available to provide a pension when they retire. If that happens, they are likely to be in poverty on retirement and the state is likely to have to meet, through means-tested benefits, the cost of providing them with a basic level of financial support. That is why I believe that our proposals are so important and long overdue.