Blunkett set for fresh battles

The pensions debate could come to a head

David Blunkett is famous for relishing a fight and his new role as work and pensions secretary looks set to involve battles over controversial policies.

Mr Blunkett will take charge of pushing through reforms of Incapacity Benefit - an issue which has provoked backbench Labour rebellions in the past.

Debate over the future of pensions policy is likely to come to a head in the next Parliament.

The Turner report on the issue is due to be published this autumn.

Compulsion?

Resolving what many believe is a pensions crisis is one of the biggest - and potentially most expensive - issues for the new government.

The interim report of the Turner commission showed there was a huge pensions shortfall, and highlighted the need for more spending on state pensions and more savings by individuals.

Its final report, expected in November, could recommend compulsory savings and an extension of the retirement age to 70.

Ed Balls, the advisor to the chancellor who is now an MP, said during the election campaign that any major decision on pension reform would need to be agreed across all the parties, and then put to the electorate in the next election.

Tony Blair has said he does not favour compulsory savings but has not ruled out the option completely.

Rebel risk?

The government announced in February that it wants to scrap the current Invalidity Benefit in name at least.

The benefit, which is paid to 2.7 million sick and disabled people, is to be overhauled to remove disincentives to return to work.

There would be a new scheme for those with the most severe illnesses and another to get about one million claimants back to work.

Sixty-five Labour MPs rebelled against planned reforms to Incapacity Benefit in 1999.

With Labour's majority slashed to 66, a rebellion by only 34 Labour backbenchers could derail future reforms.

The Child Support Agency is another problematic area which comes within Mr Blunkett's new remit.

The prime minister faced complaints about the agency, which supervises payments from absent parents, during the election campaign.

He said the system had long caused problems but Labour had made improvements.