Blunkett hints at introduction of compulsory pension schemes

Blunkett hints at introduction of compulsory pension schemes

David Blunkett yesterday refused to rule out the introduction of compulsory pensions, potentially placing himself at odds with Gordon Brown.

In an interview on BBC1's Breakfast with Frost, the new work and pensions secretary declared that there were "no off limits" when he was asked whether compulsion was an option. "I made it clear, when I talked to the prime minister on Friday evening and in the release I put out, that there are no off limits here," Mr Blunkett said. "We've got to be able to address, quickly, decisively, where we're going."

Beaming with delight after returning to the cabinet five months after resigning as home secretary, Mr Blunkett made clear that he is prepared for radical so lutions once Adair Turner, the former head of the CBI, publishes his long-awaited report in the autumn.

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"I want to build a consensus so I want, with Adair Turner, to be able to reach out to the other major political parties because we need a lasting solution for the decades ahead - not a quick fix," he said.

Mr Blunkett's intervention may place him at odds with the chancellor, whose supporters recently dismissed compulsory pensions as "years away". Ed Balls, the former Treasury chief economist who was elected as Labour MP for Normanton in West York shire, said during the campaign: "Any changes in pensions policy will be fully debated and won't come in for many, many years because we need to make sure people's legitimate expectations can be fulfilled."

Mr Blunkett showed he is prepared for radical ideas when he said that immigration may help solve Britain's pensions timebomb, which is due to explode within 50 years, when he said there would be two people in work for every retired person.

Mr Blunkett said: "I don't want to get back into the immigration debate that was really messy in the general election. But I do want to face people with this: you can bring people in through legal migration, for a period of time, to fill particular vacancies, and to help fund the services of the future, including those in retirement."

Guardian Unlimited © Guardian Newspapers Limited 2005