HC Deb 06 July 1998 vol 315 cc735-6
18. Mr. Julian Brazier (Canterbury)

What representations she has received on the subject of individuals being required by law to make additional pension contributions into private sector funds. [47486]

The Parliamentary Under-Secretary of State for Social Security (Mr. John Denham)

Many submissions to the pensions review have argued that compulsory second-tier pensions should be extended to groups not covered, and that the minimum second-tier contribution should be raised from current levels. We are looking at these proposals seriously, and will publish our response in a Green Paper on pensions later this year.

Mr. Brazier

The previous Government were rightly proud of the growth in private sector pension provision and the rise in living standards for millions of pensioners which that has provided and will provide. Will the Minister none the less accept that if any Government went further than encouraging such provision, and coerced people by the force of law to engage in it, they would be morally obliged to stand behind any such fund which failed?

Mr. Denham

As I said earlier, we are considering these issues carefully, and the type of pension vehicle that might be suitable for second pension savings is an important part of our consideration. It is certainly true that, whatever we do on pension policy, we need more cost-effective, value-for-money and flexible second pensions than are currently available, especially for those who cannot join an occupational pension scheme. We must not, under any circumstances, have a repeat of the pension mis-selling scandal for which the previous Government were so clearly largely responsible.

Madam Speaker

Dr. Iddon.

Dr. Brian Iddon (Bolton, South-East)

Thank you, Madam Speaker. On a previous occasion—[HON. MEMBERS: "Question 19."] I beg your pardon, Madam Speaker; Question 19.

Mr. Stephen Pound (Ealing, North)

My hon. Friend has a speech for every occasion.