Pensions insult

It is why immigration remains such a toxic issue, even though the NHS would not be able to function without the contribution of workers from overseas, whether they be surgeons or hospital cleaners.

And it is why there was disbelief when it emerged that 220,000 people living outside the UK were entitled to a state pension – at a cost of £410m a year – because of their spouse’s work history in Britain before moving overseas.

Steve Webb, the Liberal Democrat pensions Minister, is right. These loopholes should never have existed and tomorrow’s Queen’s Speech will begin the process of closing them.

It remains to be seen whether Labour will support the coalition’s endeavours – it has previously been very critical of the Government’s reforms which will introduce a new flat-rate pension for individuals. The intention is to simplify this policy area and make people aware of the need to save for their eventual retirement. It also rewards women who work, or who spend the bulk of their lives caring for others, following the policy mess left by New Labour.

Yet the Government will have to do far more if it is to appease those senior citizens who did save for their retirement – and who now face the prospect of having “perks”, like a free bus pass or TV licence, being cut because of political mismanagement.

As such, the question is this: how long was Britain making pensions payments under false pretences before Mr Webb’s intervention, and why was this allowed to happen? After all, the country has never had a bottomless pit of money – despite Labour’s suggestions to the contrary.