UK – The Pensions Commission’s proposals for a state-run second-tier pension fund for those not covered by work-place schemes have been dismissed by the opposition Conservative Party.

Speaking ahead of a government white paper on pensions expected next week, shadow Chancellor George Osborne said he was not convinced about the ability of government to deliver such a “vast” project.

The National Pensions Savings Scheme is one of the key proposals of the Commission, chaired by Lord Turner.

Osborne wondered whether an industry-based solution might not be better option. “My instincts go against such a government agency.”

Osborne also believed the Turner report vindicated the approach of David Willetts, the former Conservative pensions spokesman, when it came to the question of basic state pensions and means testing. Willetts’ policy was winning the argument, Osborne claimed.

Referring to the Chancellor Gordon Brown’s move some years ago of abolishing the tax credit on equity dividends, he did not believe that there would be scope to put the clock back on this count.

He acknowledged that Brown’s action may well have been the “straw that broke the camel’s back” when it came to corporate support for company-sponsored pensions arrangements.

But he said enquiries among corporate finance directors of the FTSE 100 had indicated that things had moved on since and that to bring back the tax credit would not necessarily restore the fortunes of company pension plans.

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