The Work and Pensions Select Committee has urged the government to do more to explain its single-tier pension reforms to the general public, and has argued that effective scrutiny of the draft Pensions Bill has been hampered as a result of bringing the implementation date forward to 2016.

In its latest report concerning the single-tier state pension, the committee welcomed the overall improvements in retirement income that the new single-tier state pension will bring but stated that “it is not acceptable for governments to adopt such a cavalier attitude to the scrutiny role of select committees”. It stated that a further impact assessment of the reform proposals was needed.

The committee argued that as a result of bringing forward the implementation date, the government “will need to engage urgently with representatives of employers and pension schemes to ensure that their concerns about the accelerated timetable for reform are taken fully into account in the final legislation and draft regulation”.

Committee chair Dame Anne Begg said that despite the new system being “a much simpler system to understand” she stated that the transition period will be "long and complex".

“It is vital that the government decides on its high-level strategy for communicating the changes to the public by the time the finalised Bill comes before parliament in the summer. This should include how the internet will be used and what individualised information will be provided,” she added.

Barnett Waddingham consultant Malcolm McLean stated: “I am not sure the government has really thought through the almost herculean task it faces of calculating and establishing a foundation amount for all of 40 million people of working age at the start date in 2016. Or, indeed, what are the operational implications of running two completely separate systems side by side for the next 40 years or longer.

“The report highlights that the change in the implementation date has significant implications for pension schemes and employers, who now have one year or less to prepare for the ending of contracting-out. Employers who are providing defined benefit (DB) schemes for their workers will have a particular concern. The end of contracting-out will mean that both employer and employee national insurance (NI) contributions will increase.”

On the issue of the number of qualifying years, the report stated that the Bill should specify that the minimum number of qualifying years will be “not more than 10 years” and stated that for those women who did not build up their own NI record as they had the expectation that they would be able to rely on their husband’s contributions to give them entitlement to a basic state pension, the government should assess and publish the cost of allowing women in this position who are within 15 years of SPA to retain this right.

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