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Cross-party condemnation for &#39unworkable&#39 pension credit

The Government has been subjected to an attack from MPs of all parties over its pension credit plans which they claim extends the principle of mass means-testing of pensioners.

In a joint statement from Labour MP Frank Field, Shadow secretary of state for work and pensions David Willetts and Liberal Democrat pension spokesman Steve Webb, the Government is criticised for creating a new era of state dependency.

The credit has been called “unworkable” and “eye-wateringly complicated” by Webb while former welfare reform minister Field says the Government needs a longer-term strategy to provide a pension policy which makes sense.

In a statement released last week, Willetts says the money would be better spent on the basic state pension, particularly for older pensions.

He says further means-testing will only increase the complexity of the pension system to the detriment of both today&#39s pensioners and savers.

All three MPs took part in the second reading of the Pensions Credit Bill in the House of Commons this week, where they argued against the proposed legislation.

Webb said: “No one will have the faintest idea what the pension credit means. It is eye-wateringly complicated. The Government has already admitted that one in three of those entitled to it will not claim it.

“The Government needs to think again about its misguided pension strategy.”


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