Andrew Bingham (High Peak) (Con): What steps he has taken to increase the number of younger workers subscribing to pension schemes.
The Parliamentary Under-Secretary of State for Work and Pensions (Mr Shailesh Vara): The Government continue to roll out the programme of automatic enrolment of all eligible workers into workplace pensions. Of those eligible workers, approximately half are under 40, and the largest increase in pension membership in 2015 was among those aged 22 to 29.
Andrew Bingham: Will my hon. Friend agree that the new state pension provides clarity for younger workers, who will now know what to expect from their state pension when they reach pensionable age? Will that not have a positive impact on how much they choose to save in a private pension, because, with this clarity, will come understanding and an ability to plan?
Mr Vara: I most certainly agree with my hon. Friend. The previous state pension system was extremely complex—it was difficult for people to know how much state pension they would get before they reached the state pension age—whereas the new state pension provides clarity from an early age as to what they can expect. In future, they will know that they can expect over £8,000 a year from the state—a solid foundation upon which to plan their own retirement savings.
Andrew Bingham (High Peak) (Con): If he will make a statement on his departmental responsibilities.
The Secretary of State for Work and Pensions (Stephen Crabb): As part of our reforms to give people greater confidence and certainty about what they will receive in retirement, we are improving the help on offer to people with keeping track of their previous workplace pension pots. I can inform the House that our new online Pension Tracing Service goes live today. This new service will make it simpler and quicker to reunite people with information about their lost pension pots; it will take a matter of seconds, rather than days, as under the old system.
Andrew Bingham: I welcome enabling people to find their old pension pots, but what more can the Secretary of State do, and we do, to enable people to understand how much they are likely to receive from those pension pots, when they have found them?
Stephen Crabb: My hon. Friend asks a good question. Many of our reforms of the state pension are designed to make things simpler and less confusing for people. Since the new state pension was introduced in April, everyone has been able to get a personalised state pension statement, based on the new rules, and there is a new online service, “Check your State Pension”, which offers a quick and accessible way for people to access information about their state pension.