§ Lord Jenkins of Putney
asked Her Majesty's Government:
Whether they intend to bring the state pension in the United Kingdom to the same levels as those in other countries in the European Union. [HL1513]
§ Baroness Hollis of Heigham
Unlike many member states where there is little private provision, the United Kingdom's pension system is a partnership between the state and the private sector. This ensures both sustainable public finances and sustainable social protection systems. The basic state pension provides the foundation for income in retirement. It has always been the case that people were expected to build up a second pension or other savings on top of their basic state pension and the Government encourage them to do so where this is appropriate. People have been retiring with increasingly good company or other private pensions, and as a result pensioner incomes have risen faster than the incomes of people at work.