Pension debate continues on government blog
James Purnell, minister for pensions reform, has responded on his weblog in the latest instalment of an ongoing debate regarding the government's pension credit scheme.
The weblog currently features a debate between the minister and Steve Bee at Scottish Life regarding the Pension Credit and government proposals for the National Pensions Savings Scheme.
In his latest post, Mr Purnell has stressed that Pension Credits give recipients more money, rather than taxing them, while he notes that under the scheme those that voluntarily save will be better off than if they had not.
"Under our proposals, the employer and the state will match the employee's minimum contribution," he said.
"That's why we think there's a clear incentive to save in personal accounts for the vast majority of people and why we think automatic enrolment will work," he added.
Mr Bee, however described the current means-testing of pension credits as "a system that taxes savers" in a letter to the Guardian.
He warned that the automatic enrolment of medium and low income earners in personal accounts would be "dangerous indeed".
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