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Government delays universal state pension paper

The Government’s green paper outlining proposals for a universal, flat-rate state pension has been delayed.

In October, the Government announced plans to introduce a universal pension and said a green paper would be unveiled this year. However, the Department for Work and Pensions will now not commit to a publication date.

A DWP spokeswoman says officials need to write to the economic affairs committee before the paper is brought forward. However the EAC, a House of Lords investigative committee charged with considering economic affairs, has yet to be contacted.

A DWP spokeswoman insists the Government remains committed to delivering the reform, which will see a universal pension introduced above the current level of pension credit. However, she refused to confirm when the consultation will eventually be published.

When the reforms were announced, industry experts suggested the Government would need to introduce proposals to deal with individuals who have contracted out. Money Marketing understands the Treasury is still grappling with the implications this will have for public sector workers and other funding issues associated with the reforms.

In a response to a question from Labour MP Kate Green in November on whether he would introduce a flat-rate state pension as quickly as possible, Chancellor George Osborne (pictured) replied: “Yes, absolutely. The Treasury is working with the Department for Work and Pensions on potential pension reform that could simplify pensions and provide a boost to pensioners for many years to come.”

Saga director general Ros Altmann says: “We absolutely need this radical state pension reform. I do not see how we can go ahead with auto-enrolment and Nest without it.”

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. We absolutely need from this radical state pension reform the repeal of the policy which confiscates the annual uprating of half the expatriate pensioners and shames Britain – the only country to practise this bare-faced robbery – before the whole world.

  2. How long must we wait for this Green Paper?
    It should be Dec 10, but why the delay?

  3. Richard Brown, Managing Director, Moneynotion Limi 26th December 2010 at 1:42 pm

    As a result of the post-WWII baby boom, the “grey” vote is very powerful now. Rattle your MP’s cage and demand to know why it’s being delayed! I can tell you first-hand (from when I was a County Councillor) letters to one’s elected representative are heeded, especially when they arrive in numbers.

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