Is Blunkett targeting property windfalls?
DAVID Blunkett hinted yesterday that state pension entitlement could be affected by inheritance. The Work and Pensions Secretary suggested help should be targeted at those who had not benefited from inherited wealth.
Mr Blunkett insisted claims that he was planning a 'pincer movement' on those who get a windfall in retirement by inheriting a house were wrong. But he said the fact that some are left 'very substantial assets' might have to be taken into account in some way.
His remarks will increase concern that one option being considered by the Government in response to the pensions crisis is taking into account capital, as well as income, when determining entitlement to the pension credit 'top-up' or similar future benefits.
Addressing the Pensions Commission conference, Mr Blunkett said: 'We are going to see an even bigger divide in terms of assets than we see in terms of income in the future.'
He said individuals in 'some parts of the country and in some socio-economic groupings' inherited 'very substantial assets' which would have to be taken into account.
'We will need to work out how we assist people who do not have assets,' he added. 'How do we help those people build assets?'
Mr Blunkett repeated his backing for the idea of workers being automatically enrolled in occupational pension schemes, but giving them the right to opt out.
