A new contract for welfare: partnership in pensions

The government's Green Paper proposes reducing state pension costs whilst encouraging private sector provision. The success of the proposed ‘stakeholder pension schemes’ depends on regulation. However, regulation can penalise those it is intended to protect. This is a sensitive issue, since stakeholder pension schemes are expected to attract financially vulnerable, lower paid, employees. Whilst the flat rate accrual of the state second pension confers some benefit, certain groups are put in a difficult position by the retention of means‐tested benefits.