24 November 2005 - Hutton – Pensions reform must meet five key test
Any plan to reform the pensions system must pass five key tests that will secure its longevity and sustainability said Secretary of State for Work and Pensions, John Hutton at a speech to the Institute for Public Policy Research in London today.
Mr Hutton said the reforms must meet the following tests:
- Does it promote personal responsibility?
- Is it fair?
- Is it affordable?
- Is it simple?
- Is it sustainable?
Mr Hutton said:
“As my predecessors have made clear, the primary responsibility for security in old age must rest with the individual and their family. The state must provide a floor below which no-one should fall but it must also allow everyone the opportunity to build a decent retirement income.
“If we are to achieve a lasting pensions settlement for the 21st century then I believe that any long-term package must be fair and simple to understand. But it must also be affordable to the tax payer and therefore sustainable.
“Any new arrangements must stand the test of time and be flexible enough to adapt to the changing needs of tomorrow’s society. We do not want to be in a position where what is implemented today is uprooted and changed by different governments tomorrow.”
Mr Hutton reiterated that the Government would approach the forthcoming report from the Pensions Commission with an open mind and seek to secure a consensus across all parties in the future.
He added:
“We approach this debate with a genuinely open mind. This is the start of the debate, not the end of it.
“Generations of progressive politicians have risen to the challenge of ensuring that the State provides a foundation for security in old age.
“I believe it is now our turn - to see the scale and depth of the challenge and to rise to it. Government cannot solve the pensions challenge on its own.
“Instead we must work together to build proposals which will pass the tests of personal responsibility, fairness, affordability, simplicity and sustainability. And ultimately pass the most important test of all – securing our future with a lasting pensions settlement.”
Notes to Editors
- John Hutton was speaking at the IPPR event ‘Securing our future: the pensions challenge’ at the Chancellor’s Hall, University of London. The speech is available at: http://www.dwp.gov.uk/aboutus/speechesindex2005.asp
- The Pensions Commission will publish its report on November 30. Further details are available on its website: http://www.pensionscommission.org.uk
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