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LibDems claim Personal Accounts are ‘fatally flawed’

The LibDems say Personal Accounts are “fatally flawed” as long as mass means-testing remains part of the benefits system.
LibDem Shadow Work and Pensions Secretary David Laws says that for many people the scheme will be inappropriate and unfair because of the continuation of means testing in its cut down form.
He says some people on low incomes may keep as little as 15 pence for every pound they save because of means testing and calls for a citizens pension to act as a solid foundation for the scheme.
Laws says: “Personal Accounts will remain fatally flawed as long as mass means testing remains part of the benefits system.
Personal Accounts were meant to revolutionise pension savings for people on average and low incomes, but as the Government has failed to curb the growing tide of means tested benefits, it is clear that for many, Personal accounts will be both inappropriate and unfair.
If the Government want a genuine pensions consensus they must create a citizens’ pension set at a decent level for all, which acts as a solid foundation for private pensions saving.”

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