Original pensions proposal remain firm favourite with government

The government still rates the Pensions Commission’s solution to the looming pensions crisis as the most favourable option, according to work and pensions secretary, John Hutton.

The National Pensions Saving Scheme (NPSS) is the most popular option because of the low annual management costs, Hutton told the Financial Times.

Last week, major pensions stakeholders, including the CBI, Association of British Insurers and National Association of Pension Funds, all met to offer alternatives to the NPSS.

However, Hutton said they had not convinced him.

“The invitation was: who can beat that? And I’m no sure anyone has beaten it,” he said.

He added that if the NPSS were to be chosen as the final option it could not go ahead without also considering a more generous state pension and a rise in the state pension age.

Hutton said that the commission’s proposals “were well put together… you mess with it at your peril”.

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