View more on these topics

Rebel MP bids to link pension with earnings

Rebel Labour backbencher Kate Hoey is proposing an early day motion urging the Government to link the state pension to earnings.

The EDM has gained 77 cross-party signatures, including 55 Labour MPs, backing the proposal.

It supports the call for the restoration of the earnings link set out in the Pensioners&#39 Manifesto drawn up by the National Pensioners&#39 Convention after consultation with 800 organisations. The manifesto was set out at the Pensioners&#39 Parliament convention of retirement sector organisations in Blackpool in the summer.

MPs backing the EDM say the views of the UK&#39s 11 million pensioners are not being addressed. They call on the Government to endorse the key points in the manifesto, in particular linking the basic state pension to earnings, a policy put forward by the Conservatives this year.

At that time, the independent Pensions Policy Institute criticised the move as doing nothing for low-income women – the poorest pensioners – because they are less likely to be entitled to basic state pension because of lower levels of National Insurance contributions.

Hoey, MP for Vauxhall and a former sports minister, has challenged the Government line on a number of issues from hand guns to fox hunting. Her decision to back calls from the Opposition to link the pension to earnings is a further indication of party division over pension policy.

Conservative pensions spokesman Nigel Waterson says: “I have already expressed my backing for linking the state pension to earningsthis is central to my party&#39s policy. We have got a bizarre situation here where ministers are still backing the Government&#39s policy but I suspect that if there were an open vote a large number of Labour backbenchers would not support it.”


Piecing together pension jigsaw

As a fan of Fawlty Towers, I have many favourite lines and scenes but when Adair Turner published his paper, only one sprang to mind. Pension strategy in the country has resembled dodgems, where contact is neatly avoided by judicious spins of the wheel. Just as the actuarial brethren avoid decisions by pushing items on […]

Abbey shareholders vote for Santander takeover

Abbey has got the go-ahead for a takeover by Spain&#39s biggest bank Banco Santander Central Hispano despite a stormy shareholders&#39 meeting last week. The support of major shareholders brought 94.6 per cent backing for the takeover, based on share value but, counting one vote per shareholder, only 64.8 per cent approved the deal. Deutsche Bank […]

Smee ends speculation over ABI role

Outgoing Aifa director general Paul Smee has ruled himself out of the running for the role of director general at the Association of British Insurers. Smee announced in September that he will be stepping down from Aifa and joining the Association for Payment Clearing Services as chief executive in December. He says he is committed […]

MCCB calls for reasons-why letters to be retained

The Mortgage Code Compliance Board has identified key issues for the industry after the FSA takes over the regulation of mortgages. Its final annual report published last week, the MCCB recommends that in all non-advised sales, consumers should be given a warning of the consequences of not obtaining advice. It also stated that the title […]

Keep calm and carry on?

We British are known for our stiff upper lip and just getting on with things. It’s part of our quirky cultural behaviour – like forming orderly queues, or saying sorry when it’s not our fault. Many of us just aren’t that great at talking about what’s bothering us. But if someone feels that the stresses […]


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