Baroness Coffey (Con)

My Lords, one of the challenges of speaking so late in the debate is that many brilliant points that you thought you might cover have already been made, and the noble Lord, Lord Best, just made one of them. It is one of my biggest concerns about the increasing costs and one reason I kept trying to encourage the Government to abandon their ideology about not being able to buy your own home from housing associations or councils. We are reaching the tipping point, where costs are going to rise significantly as we see less home ownership. I appointed my noble friend Lady Neville-Rolfe to do the previous report looking into pension age. We have to reach some kind of consensus on what is an acceptable proportion of pension income compared to earnings to reach a proper settled way that we can take forward. It was the 2007 Act, brought in by the then Labour Government and enacted by the coalition Government in 2011, that reinstated the link to earnings. We have a variety of views on what the ideal pinch point should be. That is the sort of thing that I hope the Pensions Commission will settle. Sometimes, the triple lock gets blamed for a lot of things. To some extent, I would prefer some kind of double lock. At the time, the 2.5% probably seemed right to achieve the policy outcome of getting pensions as a proportion of earnings up more quickly. It has achieved that, by and large. As a consequence, however, it has been used about four times—though only twice in an artificially high way—compared to some of the other changes on earnings and inflation. Indeed, I was the Cabinet Minister at the time, and we took the proactive decision on two occasions: one was when the earnings link legislation would have frozen the state pension. We changed that for a year. We also changed the earnings link, removing it for a year. That, just in one year, saved £4.5 billion, and about £30 billion over the next five years. It shows that some quite modest changes can have significant benefits to the public finance. The other element of this very interesting report that I thought was useful was thinking about working. The best employers are a lot more flexible. I want to encourage the Government to think again, as they bring forward their regulations and guidance, about what they are doing. We removed the default retirement age. Again, this was designed to make life more flexible for people. The other key element—I saw it with my late mother—is that Covid had a massive impact on old people, as they just did not get moving. I saw her muscles atrophy. We need a proactive occupational health service, and I would welcome health visitors for pensioners, not just for children.