Conservative work and pensions secretary Iain Duncan Smith has reaffirmed the Government’s commitment to introducing a single-tier, flat-rate state pension.
Last month, reports surfaced suggesting prime minister David Cameron had called for a re-think of plans to introduce a single state pension payment worth around £140 a week for future retirees due to concerns the reform may not find favour with core Conservative voters.
Addressing the Conservative party conference yesterday, Duncan Smith said the flat-rate pension is “a great reform” which will be introduced.
He said: “Labour nearly destroyed pension saving in the UK. Their means test meant those who tried to save too often retired on less than those who never saved at all. The result now is 11 million people who don’t save enough for retirement.
“So our auto-enrolment reforms mean up to 9 million workers will be saving through a workplace pension. And we are creating a single-tier pension which will mean, if you contribute, you will receive a pension above the means test.
“The single-tier will also ensure that those, such as mothers, who have taken a break in work, will receive full contributions for that time giving them a chance of their own full pension, for the first time ever.”