Pensions minister Ian McCartney is in favour of compulsion for stakeholder pensions, telling delegat...
Pensions minister Ian McCartney is in favour of compulsion for stakeholder pensions, telling delegates at the recent Labour Party Conference that compulsion would be introduced if stakeholder is not taken up in sufficient numbers.
Speaking at a fringe meeting held by Age Concern, the minister said: 'We have no specific plans now to introduce compulsion but you can read between the lines and see that it's a possibility.'
Division in the Labour Party concerning stakeholder was brought to light at the conference when MP Helen Clark argued at a fringe meeting that there were serious problems publicising the product.
She said: 'The majority of my constituents don't know it exists. People have no interest in it, there is a complete lack of awareness.'
At another fringe meeting held by the National Pensioners Convention, the pensions minister was confronted by the audience which was angry at the Government's refusal to return the link between the basic state pension and average earnings.
McCartney said he would fight for the cause of pensioners within Government and asked to be given a chance.
The ABI's latest figures report that 63,585 stakeholder policies were sold in August bringing the total to 356,899. Employee designations have risen by 25,072 to 146,950.
The Government said that there were 400,000 companies that would need to be stakeholder compliant. The latest figures from stakeholder providers are reflecting a large rush of employers keen to comply with the 8 October stakeholder deadline. Standard Life reported 8,500 designations in the week leading up to the deadline with 4,800 the week before and 2,300 the week before that.
They are now reporting a steady stream of about 1,000 designations per day. Scottish Widows have 16,850 designations 4,000 of which have come in the last week.
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