Mark Garnier

Absolutely. The Government are really keen to get people to save for their futures and then they do everything they can to try to stop them doing that. The hon. Gentleman is absolutely right. We are just going to kick another problem down the road. By the way, when the Minister talks about hip replacements and so on, it is savers’ money. It is just that they are taxing them less. At the same time as the Government look to improve pensions adequacy, they will be taking £4.8 billion from savers and employers. They identify a problem, say they will work to make it better, and then make it worse. Surely, when they were writing the Budget—I know the Pensions Minister has been a significant penholder in that process—they must have seen the extraordinary contradictions in their proposals? The House would expect me to bang on about this—I am the shadow Minister and that is my job—but let us listen to the verdict from a few experts about the policy we are debating today. Pensions UK stated: “Any change to salary sacrifice would inject uncertainty into a system that needs long-term trust, not sudden shocks…Introducing a cap would weaken incentives to save when we are facing a generation retiring with inadequate retirement savings.” The Institute of Chartered Accountants in England and Wales stated: “This cap will make it more complex for employers to offer a simple and flexible solution for retirement savings.” The Institute and Faculty of Actuaries stated: “The decision to impose a £2,000 limit…will undermine current efforts to improve retirement outcomes for individuals. In doing so, the act of saving into a pension will now be more expensive, more complex and less attractive to both employees and employers.” Evelyn Partners stated: “Restricting this sensible tax benefit that makes private sector saving more attractive adds insult to injury in a two-tier pension system”. PwC stated: “In a bid to bolster the public purse…Budget risks reducing employees’ take-home pay while placing additional pressure on businesses through rising employment costs”. Hargreaves Lansdown stated: “Restricting salary sacrifice on pension contribution could cause long-term damage to people’s retirement prospects. We could see employees less likely to increase pension contributions beyond auto-enrolment minimums”. The Society of Pension Professionals—it goes on and on. Are the Government proud of this rousing endorsement by the industry? It is absurd. When I was quizzing the Minister about this last week at oral questions—he will remember it well—he proudly held up the report that was commissioned under the previous Government—