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Scotland Has More to Gain from Pension Reforms - Donald Dewar

15/12/1998

Scottish Secretary Donald Dewar emphasised the importance of the Government's pension reforms for Scottish pensioners when he commented on the statement made today in the House of Commons by the Social Security Secretary Alistair Darling.

Mr Dewar said:

"The problem of pensions is one that has been ignored for far too long. State spending on pensions is due to fall dramatically while the number of pensioners will continue to rise. Doing nothing is not an option. Particularly not in Scotland where the share of the population who are of pensionable age is rising faster than in the UK overall.

"It is estimated that by 2021 there will be nearly one million Scots who will be of pensionable age - an increase of almost seven per cent. If the Government had not acted then many Scottish pensioners would face poverty in retirement and this is not something we are prepared to tolerate.

"The reforms announced today by the Alistair Darling will make life better for Scottish pensioners.

"The new Minimum Income Guarantee means that around 130,000 existing Scottish pensioners will benefit by almost £400 a year from April next year.

"The plan to replace the second-tier pension with a new State Second Pension (SPP) will give around 350,000 recipients in Scotland a second pension of almost £50 a week.

"These and the other proposals announced today are designed to tackle a UK problem but it is one which is particularly relevant to us in Scotland."

News Release: 2653/98
15 December, 1998

Page updated: Monday, July 30, 2007