Tories £11bn 'Tax and Spend' Pension Plans Will Hit Pay of Millions of Workers - Webb

2.55.49pm BST (GMT +0100) Wed 8th Oct 2003

Steve Webb MP, Liberal Democrat Shadow Work and Pensions Secretary

The Conservative's pension policy announced today amounts to 'pure tax and spend' and will 'hit the take home pay of millions of workers', Steve Webb MP, Liberal Democrat Shadow Work and Pensions Secretary said today.

By scrapping the National Insurance rebate (currently 1.6% of salary of employees and 3.5% for employers), the Conservative policy announced today would burden workers and employers with the full rate of National Insurance and reduced take-home pay.

Tory plans to use the £11Billion, taken by the tax hike, to match the money that people save could disproportionately benefit the better off. Only those with the spare cash to invest in the first place would be able to take full advantage of the Tory pledge to match the money.

Steve Webb MP said: "The Tories need to be honest about their pension policy. The Tories can not claim to be a tax cutting party when, by scrapping the National Insurance rebate, they are hitting workers and bosses alike with a tax hike."

"The Tory policy is pure 'tax and spend' and will reduce the take-home pay of millions of workers."