Stephanie Dearden
Liberal Democrat Parliamentary Spokesperson for Tooting
Tel: 020-7771-2551 or 07985649807
PRESS RELEASE
Thursday, 1st December 2005
Pension Row Leaves Cabinet Divided
According to reports, the government remains divided over how to proceed with
the overhaul of the pension system in light of Lord Turner’s recommendations
made public yesterday. Lord Turner told the Government action must be taken now
to prevent a pension’s crisis for people retiring in 15 years. He questioned
Gordon Brown's reliance on means-tested benefits, saying that by 2050, 75 per
cent of pensioners would be subject to tests unless there were reforms. The
Chancellor has made clear he believes one of the commission's central proposals
of restoring the link between pensions and earnings cannot be afforded.
Liberal Democrat Spokesperson for Tooting,
Stephanie Dearden said:-
Lord Turner has provided an excellent
blueprint for reform, but it is clear that there are still massive divisions
within the Government on what to do with his proposals. The Treasury are
rubbishing Lord Turner's report as unaffordable, while Pension Ministers are
saying precisely the opposite. The Government's reaction to Lord Turner's Report
will have left people more confused than ever about the pension system. There is
a real risk that public confidence in pensions will be further eroded causing an
even bigger future problem. Gordon Brown's mean-minded, means-tested muddle of a
pensions system is just not sustainable, and eventually Britain will have to
move to the type of system which Lord Turner has proposed. Tony Blair must show
some leadership and ensure that this golden opportunity is not allowed to be
vetoed by the Chancellor.
ENDS
Stephanie Dearden
Liberal Democrat Parliamentary Spokesperson for Tooting
Notes to editors