Splits over pensions policy could further erode public confidence -

6.06.34pm GMT Thu 1st Dec 2005

David Laws MP, Liberal Democrat Shadow Work and Pensions Secretary, today warned that continuing Cabinet splits over pension reforms could further erode public confidence in pensions sparking an even bigger future problem. Commenting, Mr Laws said:

"Lord Turner has provided an excellent blueprint for reform, but it is clear that there are still massive divisions within the Government on what to do with his proposals.

"The Treasury are rubbishing Lord Turner's report as unaffordable, while Pension Ministers are saying precisely the opposite. The Prime Minister has told the CBI that later retirement is essential, while the Treasury shows every sign of resisting a higher state pension age.

"The Government's reaction to Lord Turner's Report will have left people more confused than ever about the pension system. There is a real risk that public confidence in pensions will be further eroded causing an even bigger future problem.

"Gordon Brown's mean-minded, means-tested muddle of a pensions system is just not sustainable, and eventually Britain will have to move to the type of system which Lord Turner has proposed.

"Tony Blair must show some leadership and ensure that this golden opportunity is not allowed to be vetoed by the Chancellor."