Chancellor must not be allowed to break pensions consensus - Davey

06.12.05

Edward Davey, Liberal Democrat MP for Kingston and Surbiton, today warned the Chancellor, Gordon Brown, against blocking pension reform away from the means-tested model following this week’s publication of the Turner report.  Commenting, Edward Davey said,

“The Turner report represents an unmissable oppportunity to secure much-needed reform of Britain's complex and inadequate pensions system. Lord Turner has reflected a very broad national consensus by proposing a simpler and improved state pension, linked to earnings, rather than the current reliance on means-testing and complexity.

“The Prime Minister must not allow one man, Gordon Brown, to veto pensions reform. It is simply unthinkable that we could end up with 75% of pensioners on means-tested benefits, as Gordon Brown seems to think acceptable.  In addition, the spread of means-testing can only erode incentives for private saving.

“We must campaign to stop the Chancellor standing in the way of these essential reforms, so we can win the prize of a simpler and fairer pensions deal for all.”