David Willetts speaks to local Conservatives
18 Jul 2003
Addressing a capacity audience in Abbotts Ann, David Willetts MP - Shadow Secretary of State for Work and Pensions - spoke of the collapse in the value of savings and the need to restore the incentive to make provision for retirement.
"Since we left office, someone saving a fixed monthly sum over ten years will have found the value of that pot of saving worth 70% of what is was worth in 1997. And when they buy an annuity, they will get 70% of what they would have got in 1997. In effect, their savings have halved in value - so people are asking themselves - why save? There has been a collapse in the value of funded pension schemes - one of this country's most successful innovations since the second world war.
And with 50% of pensioners now eligible for means-tested benefits, the incentive to save has also been hit."
The Conservative Party is committed to a Life-time Savings Account - a more flexible form of saving.
"We would also lift the cap on the value of pension funds - so long as every employee in that firm could join the scheme. Fat cats are OK so long as there are fat kittens as well."

The event was organised by Andover Business Forum, Chairman Brian Hutchins and Abbotts Ann Conservatives. 150 people attended
Brian Hutchins, Margaret Milner-Williams, Chairman of NWHCA, David Willetts and GY
Brian Hutchins, Margaret Milner-Williams, Chairman of NWHCA, David Willetts and GY
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David Willetts, MP for Havant, in full flow
David Willetts, MP for Havant, in full flow
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Copyright Sir George Young Bt. 2015