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Blunkett keen on pensions reforms

Blunkett keen on pensions reforms

The Government is prepared to think the unthinkable to solve the apparent pensions crisis, newly-recruited Work and Pensions Minister David Blunkett said on Sunday.

In an interview with the BBC, the former Home Secretary said no solution was “off-limits” during the course of the next parliament, including forcing people to save more for retirement.

Mr Blunkett – a key ally of the Prime Minister – told the BBC: “I made it clear when I talked to the Prime Minister on Friday evening that there are no off-limits here.

“We need to be able to address quickly, decisively where we are going.”

He said he was looking for lasting solutions to pensions “for the decades ahead”, not just a “quick fix”, adding he was keen to find ways to use legal immigration to plug holes in the market and ensure 80 per cent of people of working age found meaningful employment.

Westminster watchers predict clashes between the plain speaking Mr Blunkett and the Chancellor of the Exchequer, Gordon Brown, over pensions and welfare reforms such as incapacity benefit.

Labour’s majority in the election was cut to 67 seats from 161 on Thursday.

Mr Blunkett succeeds Pensions Secretary Alan Johnson, who was moved in Tony Blair’s cabinet reshuffle.