Charles Kennedy, Leader of the Liberal Democrats, today asked Tony Blair at Prime Minister’s questions whether he would ‘acknowledge that if we are seriously to tackle the ongoing discrimination against women in the operations of our pensions system then the best way to tackle that would be to establish automatic entitlements for women to pensions’.
Mr Kennedy went on to ask the Prime Minister why he didn’t ‘see the merit of front-loading for those aged over 75 in the pensions system an extra £25 pounds a week - £100 a month - which will tackle this degree of inequality much more effectively than is the case at the moment. Now that’s what we are arguing, why won’t he argue it as well?’
Notes to Editors: Below are figures published in September 2004 outlining the Liberal Democrat’s saving and spending plans (correct at time of publication) pertaining specifically to the £5bn per year Lib Dem savings that the Prime Minister raised in his response to Mr Kennedy. These figures will be updated after the Budget on March 16th
Note: All figures given in £billions
ENDS
Text of PMQ exchange follows:
Mr Kennedy: Mr Speaker, would the Prime Minister acknowledge that if we are seriously to tackle the ongoing discrimination against women in the operations of our pensions system then the best way to tackle that would be to establish automatic entitlements for women to pensions, based on residency not based on National Insurance contributions, because so many women lose out because they have to take time out of the labour market to bring up children or to care for elderly relatives?
Prime Minister: The my Right Honourable Friend, the Secretary of State, has said there is, of course, a case for that. On the other hand we’ve got to make sure we can afford it because the bill will run into several billion pounds.
Mr Kennedy: Would the Prime Minister also acknowledge, of course, that all the indications show that it is the oldest pensioners who often tend to be the poorest pensioners, and given women’s longevity - clearly 2/3rds of those poorest pensioners are women. Now why doesn’t he see the merit of front-loading for those aged over 75 in the pensions system an extra £25 pounds a week - £100 a month - which will tackle this degree of inequality much more effectively than is the case at the moment? Now that’s what we are arguing, why won’t he argue it as well?
Prime Minister: First of all I should just point out, obviously, that as a result of the additional sums of money that we have put into helping pensioners there’s around about I think almost 2 million pensioners that used to live in acute hardship that don’t. For example, the poorest pensioners in 1997 were expected to live on only £70 a week. The Pension Credit Guarantee is at least £110 for single pensioners, £167 for couples. It’s also correct that we introduced the winter fuel payments and free TV licences for 75’s so we have done a lot… now I’m about to answer the question thank you very much. But if we were to do what he suggests we would also have to explain where we got the money from. And his proposal, as I understand it, is to take that money from top rate tax payers by raising it to 50%. No? Where is it from then? It’s £5bn from where? From savings? Well I think I’ll come back to him on that. That sounds a little bit too simple and glib to me. I think if we are going to make promises to pensioners we have to an awful lot more money to those people who are pensioners. We do actually have an obligation to explain responsibly where that money comes from otherwise, frankly, he and the party opposite are making promises they can’t possibly keep.
END OF EXCHANGE
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