New Flat-Rate pension could be some time say Government



Pensions

Pensions

The Government has revealed that the new legislation required to bring in a new flat-rate pension isn’t likely to come in before the next general election.

Steve Webb, pensions minister, explained that a consultation on the new scheme had now been completed, and the flat rate pension would pay £140 a week, based on current prices.

Lord Taylor, from Holbeach explained at a question time in the House of Lords, “The programme for this is not of a rushed implementation. This is not likely to be something that will be legislated for in this Parliament but in some future Parliament,” in response from a question from Labour’s Lord Tomlinson, which asked, “If we have two different levels of state pension – one for existing pensions and one for new pensioners – that is exactly the sort of injustice that, in other circumstances, were it challenged at judicial review, the challenge would be upheld.”

Lord Taylor added that the current Government would “clearly seek to avoid such a situation – that is the reason for the consultation”.

“This is a necessary reform and one that needs to be addressed by the Government, which is wanting to take things forward,” he added.

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