State 'will not dig pensioners out of poverty'

From The Telegraph story written by George Jones

People will have to save more for their retirement and cannot expect the state to "dig them out of poverty" in their old age, David Blunkett, the Work and Pensions Secretary, said yesterday.

In his first speech since taking over the pensions portfolio, Mr Blunkett said he was looking at a "something for something" agenda.

It would transform the welfare state from the traditional view of a "safety net" to one that "enables and supports, but ensures people and families can take responsibility and key decisions for themselves".

Earlier, interviewed on BBC radio, Mr Blunkett said he wanted to build a "lasting consensus" for the next 50 years to tackle the pensions crisis. But he emphasised it would involve individuals saving for themselves.

"The issue is not tax versus saving, the question of how long people work. It is what people are prepared to do for themselves and how we as a Government support, enable, facilitate them doing it for themselves, so that we don't hand this over to the state and at the end of a working life say 'now dig us out of poverty'," Mr Blunkett said.

He said he would be approaching all groups including his parliamentary colleagues, opposition parties, industry and individuals to establish a consensus that would provide stability, certainty and fairness.

Reforming the welfare state was not just about tinkering with the nuts and bolts of pension payments. "It is about transforming its nature from a safety net to a trampoline or an escalator. Providing help and support as it always has done but also enabling people to take responsibility for themselves," he said.