View more on these topics

LibDems accuse Tories of means-test U-turn

Opposition parties have clashed over means-testing, with the Liberal Democrats claiming Conservative pension plans to reverse its spread will make the problem worse.

LibDem Shadow Work and Pensions Secretary Steve Webb says a policy U-turn by the Conservatives will mean that a quarter of a million more people will be pushed into means-testing in contrast to the Tory pledge to reverse the spread of means-testing.

In October 2003, the Conservatives pledged to relink the basic state pension with earnings while the means-tested top-up would be increased with prices. This would take one million pensioners away from means-testing. But in a recent reply to a question in Parliament from Webb, Conservative Shadow Work and Pensions Secretary David Willetts said he accepted that the pension credit should rise with earnings according to the current Government timescale.

Webb says this means the Tories can no longer claim that they will reverse meanstesting. Instead, they can now only claim to slow the growth compared with Government projections that half a million more pensioners will be eligible for credit by the end of the next Parliament.

Webb says: “Since this U-turn, they need to come clean and admit that means testing would grow under a Conservative Government.”

A Conservative spokesman says: “It is like turning an oil tanker. The crucial thing is to get the process under way so the younger generation receive a clear message that it pays to save.”


Green takes over PMI chair

Penny Green takes over as president of the Pensions Management Institute from July, replacing outgoing chief Roger Cobley.

Why your clients need some tough love

In any relationship that matters, professional or personal, you should be upfront with someone if you think they’re making a decision or doing something they might later regret. Being honest with someone and having their best interests at heart, however hard the message, is key to building trust in any relationship. So how does this […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm