Member

This order applies to those with a guaranteed minimum pension accrued between 1988 and 1997. As in previous years, the increase is capped at 3%. Noble Lords will know that I have form on speaking to these instruments. My memory tells me that the Minister of State for Social Security and Disability, Stephen Timms, previously criticised this very feature of the order. In opposition, he argued that the 3% cap risks eroding the real value of guaranteed minimum pensions during periods of higher inflation. I recall that similar concerns were raised by some of his colleagues in debate across the Labour Party.