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back to press release pageVIGGERS QUESTIONS CHANCELLOR ON PENSIONS

MP for Gosport, Peter Viggers, yesterday raised the issues of means-testing for pensioners and the collapse of final salary schemes, during the Chancellor’s Pre-Budget statement.

He asked the Chancellor, “…will the Chancellor tell us what part he thinks that he, personally, played in the collapse of final salary pension schemes? And as a former opponent of means-testing, what pride does he take in the fact that 40 per cent of the population, and well over 50 percent of the pensioner population, are now subjected to means-tested benefits from the state?”

In response to Peter the Chancellor Stated stated, “Pension credit goes to 3.3 million people. It is easy to claim; it can be done by telephone. It is claimed for a period of years, not just for one year. He should be encouraging his constituents, rather than declaiming pension credit, because it is a proper way forward. As for the reform of pensions generally, I hope that he will support the pensions Bill that will be brought forward in the next few months to get a framework that we can agree across parties for the development of pensions for the future”.

Speaking afterwards, Peter said, “The Chancellor does not seem to understand damage he has done to the pensions industry by imposing a £3bn tax upon it at a moment when pension funds had underestimated the longevity of people in pension schemes and at a time when the Stock Exchange was weak, leading to underinvestment in pension funds.

“The Chancellor was not the prime cause of the problems, but the damage happened when he in charge and he made it much worse. The result will be that millions of 30 to 40 yr olds will not enjoy standard of living of today's pensioners.

“Gordon Brown promised to rid country of the scourge of means-testing and has in fact increased it - 55% of pensioners and rising are dependent on the state for means-tested benefits and some workers on high salaries are subject to means testing if they have children: workers earning up to £60,000 are subject to means-testing.

“This is a pernicious example of the socialist government making people dependent upon it”.


 
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