Queen's Speech 2013: what was announced

The Government is to press ahead with planned changes to the State Pension, energy and water bills, and long-term care, the Queen has confirmed at the State Opening of Parliament.

The Queen’s Speech has set out the Government’s plans for the next Parliamentary year. Here’s a rundown of the bills planned that affect our finances.

Pensions

“My Government will bring forward legislation to create a simpler State Pension system that encourages saving and provides more help to those who have spent years caring for children.”

The Pensions Bill is designed to revamp and simplify the State Pension. Under Government plans, a flat-rate State Pension of £144 a week will be introduced from 2016. The State Pension age will also be increased from 66 to 67 between 2026 and 2028.

The Government also wants to abolish the Second (or Additional) State Pension.

There will also be a review of the State Pension age every five years, starting in 2015.

To qualify for the full State Pension, you will need a minimum of 35 years’ worth of National Insurance Contributions, an increase of five years on the current system.

In the Draft Pensions Bill, published in January, it says that the Government wants to introduce legislation “at the earliest opportunity”.

For more, read New £144 State Pension: all you need to know.

Energy and water bills

“My Government will continue with legislation to update energy infrastructure and to improve the water industry.”

There are concerns that the UK’s energy generation capability might lead to a ‘lights out’ situation in a few years’ time. The Government wants the Energy Bill to address this with a series of measures.

It has also pledged to force energy companies to limit the number of tariffs they offer, move customers automatically to cheaper tariffs and provide information about cheaper tariffs that are available to them.

The Water Bill wants to allow water companies to be able to trade supplies between regions to avoid future usage restrictions.

It’s also believed that it could include legislation on reasonably priced insurance for homes at high risk of flooding. However, as yet there is no future agreement between insurers and the Government on this issue beyond this July.

Long-term care

“My Government is committed to supporting people who have saved for their retirement. Legislation will be introduced to reform the way long-term care is paid for, to ensure the elderly do not have to sell their homes to meet their care bills.”

The Government wants to introduce a cap of £72,000 on the costs that people are expected to pay if they go into long-term care. Anything over this will be paid for by the state.

This is also planned to be introduced in 2016, a year earlier than initially announced.

For more, read George Osborne brings forward State Pension and care reforms.

Consumer rights

“A draft Bill will be published establishing a simple set of consumer rights to promote competitive markets and growth.”

This is partly in response to the growth in online technology and creating equal consumer rights for goods and services bought online.

Childcare

“Plans will be developed to help working parents with childcare, increasing its availability and helping with its cost.”

The Government has so far said that it plans to offer working parents the opportunity to claim back up to £1,200, or 20%, of childcare costs per child.

It will initially be available for each child until they reach the age of five, later increasing up to the age of 12.

If this goes ahead, the current system of Employer Supported Childcare (ESC), where employees can claim part of their salary in childcare vouchers, will gradually be phased out.

For more on this, read Parents can reclaim up to £1,200 under new childcare scheme.

More on Government plans

UK to end pensions for overseas spouses

How the Government spent your money last year

Tax and benefits changes 2013/14