Liberal Democrats set out principles for pension reform

12.00.00am BST (GMT +0100) Tue 21st Jun 2005

David Laws MP, Liberal Democrat Shadow Work and Pensions Secretary, speaking at today's Pensions Commission Experts' Conference on the future of UK pensions, will say:

"There is an emerging consensus within the country on how the reform of pensions should proceed, but at the moment this consensus does not seem to include the Government.

"The current pensions system is unsustainable, relying on complex means-testing to provide what should be a minimum state pension, and lacking in incentives to save.

"We are keen to work with other parties and pensions experts to forge a consensus for change, and we have set out the ten principles which we believe should underline reform.

"Nevertheless, we have serious concerns that the lack of any agreement within the Government will undermine any attempts to deliver a wider consensus. In particular, the Chancellor, Gordon Brown, seems determined to hang on to the complex means-tested mess of a pensions system.

"What we need to hear from Mr Blunkett is whether he will commit the Government to urgent reform - and urgent must mean legislating for reform in this Parliament."