News story

22nd November 2002

Government's Stakeholder Strategy has Failed

Steve Webb MP, Liberal Democrat Shadow Work and Pensions Secretary, commenting on a report from the Association of British Insurers (ABI) that the Government's flagship stakeholder pension is failing to attract the public, said:

"The Government's stakeholder strategy was never an adequate response to the lack of pension provision among people on modest incomes.

"Few stakeholder providers find it worth their while dealing with the people in the target group because of their limited incomes.

"Millions of people in Britain have no private provision. It is time the Government admitted that its stakeholder strategy has failed.

"The way to rescue the failing stakeholder policy is through mandatory employer contributions, which would bring millions into the scheme."

ENDS