Paul Rowen and Danny Alexander speak for the Liberal Democrats during report stage and third reading debate on the Pensions Bill

Liberal Democrat Paul Rowen spoke in support of an amendment that would have forced the Government to announce when they will link the state pension back to earnings rather than inflation.

Mr Rowen said:

“It is high time that the Government restored the link and got the value of the pension back to what it should be. I know that the Minister will reiterate, because we hear it whenever we raise this issue, “Well, there’s pension credit,” but as he knows, 40 per cent. of all eligible pensioners do not claim that. It is also far more expensive to administer. It is much easier to give people what they are entitled to, and have earned, without making them go through what many of them perceive to be a demeaning process of being means-tested to get what they have worked for all their lives.”

The amendment was not passed, with 195 voting for and 269 voting against.
The Liberal Democrats voted for the amendment
Click here to read Paul Rowen’s speech in full

Liberal Democrat Shadow Secretary of State for Work and Pensions, Danny Alexander, spoke on the importance of the Personal Accounts Delivery Authority complying with UN principles on responsible investment.

Mr Alexander said that there was a great deal of public concern in respect of the use of environmental green funds and about the operation of other funds of responsible investment.

“One of the interesting facts to emerge from the briefing and other material that has been provided for this debate - other analyses also confirm this - is that developing a capability to monitor and manage environmental, social and governance issues, all of which are covered under the UN principles, can also increase both returns and financial security.”

“In many areas, in both the public and private sectors, the UK is seen as a world leader in responsible investment. I am sure that is why the Pension Protection Fund, among others, has signed up to the principles. Many would consider it to be very strange if a flagship scheme established by legislation - as we hope personal accounts will be - did not sign up to the principles. I look forward to hearing from the Minister why it is that he is not willing to push the issue a bit harder with PADA at this stage.”

The amendment was not passed, with 173 voting for and 290 against.
The Liberal Democrats voted for the amendment
Click here to read Danny Alexander’s speech in full

At third reading, Paul Rowen said the Liberal Democrats supported the Bill, and that it would benefit many people. However, he said:

“I am disappointed that the Government have failed, in the centenary of the introduction of the old age pension, to say categorically that they will reintroduce, from next year or whenever, the link with earnings. The hon. Member for Epsom and Ewell (Chris Grayling) quoted the Chancellor’s statement that many pensioners who are entitled to pension credits do not claim them. We want pensioners to have a guaranteed income, and all the issues about means-testing would be much better for that. Nevertheless, I welcome the Bill, which is a step in the right direction. I look forward to my noble Friends in the other place tabling amendments that we can perhaps consider on another date.”

The Bill passed its third reading and moved to the House of Lords
Click here to read Paul Rowen’s speech in full