HC Deb 01 July 2002 vol 388 cc82-4W
22. Sandra Osborne

To ask the Secretary of State for Work and Pensions what plans he has to simplify the administration of private pensions. [63407]

Mr. McCartney

We are continually looking for ways to improve the pension system. As the hon. Lady will know, we have already made good headway in improving access to private pensions. For exmple, we have introduced stakeholder pensions which are a straightforward way for people to save for their retirement. So far, over 800,000 stakeholder pensions have been sold. We have also improved the way the minimum funding requirement operates in advance of its replacement.

But, of course we can do more. The current pensions regime is too complicated and that is in no-one's interest. So the Government have commissioned a number of reviews to look for ways of simplifying and improving pension provision and regulation. The Pickering review is looking at how we can cut red tape whilst making sure that scheme members are properly protected. Linked to this is the Quinquennial review of the Occupational Pensions Regulatory Authority (Opra) which is looking at how we can ensure that the regulatory rules we put in place are clearly understood by those who need to administer them and are well policed to ensure increased security and confidence. In addition, there is the Sandler review which is looking at how the commercial retail savings market might be made to operate more effectively and efficiently, to the benefit of consumers. The Inland Revenue is also carrying out a review of the tax treatment of occupational pensions and they will consult on proposals later in the year.

The Sandler and Pickering reviews will be published in the next few weeks with the Opra review publishing later in the year. We will consider the proposals in these reports once they are published as part of our deliberations on how best to simplify the administration of private pensions.

20. Mr. Luff

To ask the Secretary of State for Work and Pensions what recent assessment he has made of the adequacy of private pension provision in the working population; and if he will make a statement. [63405]

27. Mr. Swire

To ask the Secretary of State for Work and Pensions what plans he has to extend private pension provision in the UK. [63413]

Mr. McCartney

The introduction of stakeholder pensions has extended access of private pension provision. It is clear, however, that individuals are not saving enough and more action is needed. We have already made clear the Government's recognition of the importance of this issue and the actions we are taking to address is.

We have already extended access to private pensions in the UK with the introduction of stakeholder pensions and the requirement of employers to designate a scheme. Around 322,000 employes have already designated a stakeholder scheme and over 800,000 stakeholders have been sold. We are removing the disincentive to save for retirement that existed in the Social Security system with the introduction of the Pension Credit. We are also ensuring that individuals have the right information to make informed choices through the introduction of combined pensions forecasts, money purchase illustrations and our ongoing pensions education campaign.

There is a need to ensure that the regulatory system for pensions is appropriate and not unnecessarily complicated and that the retail savings market operates as it should. That is why we commissioned Alan Pickering to review pensions regulation and Ron Sandler to review the retail savings market. Both of these reviews are due to report shortly and we will respond to any proposals in the Autumn.