News story

17th December 2002

Government Ducks Tough Choices on Pensions

Commenting on the publication of the Government’s Pensions Green Paper this afternoon, Steve Webb MP, Liberal Democrat Shadow Work and Pensions Secretary said:

“These measures are too timid, too slow and too little, too late. The Government continues to fiddle while pensions burn.

“Many problems remain unanswered. There will still be a huge savings gap, final salary schemes will continue to close, and key groups such as women and the self-employed will remain grossly under-pensioned. Hoping that incentives alone will lead people to save is wishful thinking. The time for keeping fingers crossed is over.

“The key element in tackling the pensions crisis effectively is compulsory pension saving. Employers, workers and the Government must all play a part. For those on middle or higher incomes, employers should be required to contribute into a company or stakeholder pension which would then be topped up by Government and individual contributions.

“This is the only way to ensure that everyone can be certain of a decent income in retirement.”

ENDS

Notes to editors

• The TUC, Help the Aged and the Consumers’ Association have formed an alliance calling for employer and employee compulsion.