07 February 2006 - Debate Essential For Lasting Pension Reform - Hutton
John Hutton today revealed further plans to ensure people’s buy-in to future pension reform. Speaking at the Work Foundation, he announced that as part of this process of debate the National Pensions Day will be held on 18 March in six cities across the UK – Belfast, Glasgow, Birmingham, Swansea, Newcastle and London.
Mr Hutton also made clear that in his view an increase in the State Pension Age from 2020 is inevitable and that to ignore this fact will simply pass a greater burden onto future generations.
Mr Hutton said:
“ An increase in the State Pension Age will only be acceptable to people if it comes as part of package to improve pension provision in other key areas that Lord Turner’s report addresses. It can only be one part of the policy response. It needs to be accompanied by tailored support to help people back into work; by greater flexibility to help people plan a gradual move that breaks the cliff-edge between work and retirement.
“Ultimately, increasing the effective retirement age can only be achieved when it is underpinned by a broad consensus about whatever long term pensions settlement we need for the future; one that meets our goals of promoting greater personal saving as well as reducing financial hardship in retirement.
“Public attitudes are absolutely crucial – but they must be shaped by the reality of the challenges we face. Any change needs to be seen less as an imposition that forces people to change their behaviour and more as a reflection of the new expectations of individuals and communities in a changing society.
“That’s why we are having this National Pensions Debate. I look forward to hearing many different views over the coming weeks. Together we can build that enduring consensus and ensure that we take the right long-term decisions to deliver a lasting pensions settlement for our children and grandchildren - and for the generations to come."
John Hutton outlined the themes of upcoming events that will form part of the National Pensions Debate: the role of the State, the challenge for employers, the options for improving the position of women's pensions and the trade-offs and balances that will have to be struck to achieve long-term reform
Notes to Editors
- A joint event with Government and industry representatives will be held on 28 February to look at industry’s alternative proposals to the National Pensions Saving Scheme suggested in the Pensions Commission Report.
- The National Pensions Day will be the largest event of its kind ever undertaken in the UK. It will involve over 1000 people taking part in simultaneous, satellite-linked consultation events in six cities across the UK – Belfast, Glasgow, Birmingham, Swansea, Newcastle and London.
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National Pensions Debate webpage: www.dwp.gov.uk/debate/
Speech: www.dwp.gov.uk/aboutus/2006/07-02-06.asp