House Of Lords Climbs Down Over Pension Bill Amendment

by Robin Pilgrim, LawAndTax-News.com, London

24 November 2004

It emerged last week that the House of Lords has backed down over an amendment to the government's Pensions Bill which would have increased the age at which pensioners are obliged to convert part of their retirement savings to annuities from 75 to 80.

The House of Commons had previously rejected an effort by the House of Lords to raise the compulsary pension annuities age to 85.

Opposition peers, led by Conservative spokesman for pensions, Lord Higgins lost the upper house vote on the amendment by 119-96. Observers have suggested that the climbdown may have been influenced by Pensions Minister, Malcoms Wicks' warning that if the Pensions Bill failed, plans to bail out members of defunct final salary pensions schemes would fail with it.

Speaking to the Telegraph at the weekend, shadow secretary for work and pensions, David Willetts expressed the Conservative Party's disappointment at the vote, observing that:

"It is very disappointing. Ministers have been thoroughly obstinate. We thought they would at least strike a compromise (and) raise the annuity age to 80."

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