During a debate on the Pensions Commission Report, Charles Walker asks the Secretary of State for Work and Pensions whether pensioners would be better off with the compounded £60 billion to £70 billion removed by the Chancellor's tax on pensions.
Mr. Charles Walker (Broxbourne) (Con): At the risk of incurring the Secretary of State's wrath, does he accept that pensioners would be better off with the compounded £60 billion to £70 billion removed by the Chancellor since 1997? If not, why not?
Mr. Hutton: I am afraid to say that the hon. Gentleman needs to learn a lot more about this subject before he makes another contribution. It is much more complicated than that, and if he wants to study it further he should perhaps look at the Pensions Policy Institute's recent work on the alleged £5 billion figure. It is complicated, in the first place by increases-[Interruption.] Well, the hon. Gentleman either wants to listen or he does not, and I suspect that it is clear to all of us on this side of the House that he does not. One of the issues is longevity, and it would be foolish for him and others to pretend otherwise. Another factor is what has happened in the stock exchange over the past six or seven years, and the low level of interest rates has also been significant. The announcement about tax dividend credits was welcomed by business because it formed part of a wider overall package, and it is important to bear that in mind. I know one other thing-that the Opposition are not proposing to reverse that tax credit.