A radical third-term overhaul of the welfare state was signalled by Tony Blair on Monday as he set the stage for Tuesday's long-awaited report from the Pensions Commission.
The prime minister underlined his determination to tackle employment, pensions and benefits while extending choice and diversity through an "opportunity society".
Stakeholder Response: Help the Aged
Mervyn Kohler of Help the Aged said: "The prime minister's speech on the opportunity society had no detail on the future direction of pension policy. That is being left to the reports tomorrow and next year from the Pensions Commission. These, with tomorrow's focus on where things are going wrong with our present pensions systems, will be helpful, but the whole process is being conducted at a leisurely pace when the problems are serious and worsening.
"Something from the prime minister today more than the observation that 'decisions taken today may take decades to mature' would have signalled the government's appreciation that confidence has drained from our pension systems."
Stakeholder Response: Age Concern
Gordon Lishman, director general of Age Concern England, said: "The current system of voluntary private savings and low state pensions is not working. One in five of today's pensioners live in poverty, and millions of tomorrow's pensioners face hardship in retirement due to under-saving.
"Women, particularly carers, full-time mothers and low paid workers, are most at risk of poverty in retirement because of an outdated state system that was created in the 1940s.
"The government must commit itself to a radical overhaul of the pension system. A higher basic state pension, of at least £105 per week, is the best way to ensure that no-one is forced to live on an inadequate income.
"Compulsion through the state system, rather than private or occupational savings, is the fairest way to fund a higher state pension for those of all income groups."
Stakeholder Response: Leonard Cheshire
Lorna Reith, Disability Benefits Consortium spokesperson, said: "Today's figures clearly illustrate that Pathways to Work is having a real impact, both for those eligible in the pilot areas and for the many disabled people volunteering onto the scheme of their own accord. The scheme is an excellent example of evidence-based policy initiatives achieving successful outcomes.
"We know many people in receipt of Incapacity Benefit want to work yet we also know that disabled people continue to face discrimination in the workplace. We welcome government initiatives such as Pathways to Work and the New Deal for Disabled People that support them into employment. We believe this will be more effective in the long-term in reducing the numbers of disabled people on benefit than restrictions in benefit entitlement. Given the positive feedback from disabled people on the Pathways to Work scheme the Disability Benefits Consortium would like to see government make a long-term commitment to the scheme and expand it across the country at the earliest opportunity."
