Minister for Pensions Steve Webb has no regrets about the end of the so-called ‘state second pension’ or S2P under single-tier reforms, arguing that it was about reaching “that point of simplicity”.

Speaking at the Work and Pensions Committee’s final evidence session of its scrutiny of the draft Pensions Bill, Webb stated that the complexity of the previous system needed to be addressed. Whilst acknowledging MP Dame Anne Begg’s statement that the S2P was “very very generous to those on low pay”, Webb said that changes had to be made now.

Webb said: “When I looked at the state pension system, we had two separate state pensions. One triple locked, one price indexed. One accrued over 30 years, one accrued over 49 years, one with some credits and another with a different set of credits and one that was becoming flat rate and one that was flat rate.

“Given that the state second pension was going to turn into an additional flat rate pension eventually, I would rather do that now and get on with it rather than let it glacially move into a single flat rate decades down the track.”

Share Story: