The Pensions Bill is making its passage through Parliament this week. I served on the committee for this piece of legislation and it is therefore of particular interest. Indeed the subject of pensions becomes of increasing interest as we get older!

Two of the key elements of this Bill are amending the timetable for increasing the State Pension Age to reach 66 in 2020 and amending the auto-enrolment provisions for workplace pension schemes.

Under the 2007 Pensions Act, the increase to 66 was due to take effect between 2024 and 2026. However, the 2007 Act was based on life expectancy projections in 2004, which by 2008 had increased by 18 months. Quite simply we are all living longer on average, which is good news, but it also puts a strain on the pension system and taxpayers.

It is interesting to note that had the state pension age risen in line with life expectancy since the first contributory pension was introduced in the 1920s, the age of retirement would now be over 75.

One of the most hotly debated issues in this Bill was bringing forward the timetable for equalising women's retirement age with men's to 65 and then 66, because an estimated 33,000 women would have to wait two years longer to receive their pensions. The Government always promised to look at transitional arrangements to help those in this group, and so I am very pleased it has now proposed to delay by six months the second rise in pension age to 66, for both men and women. This means the increase in state pension age for some women will be capped at 18 months. The cost of this amendment is one billion pounds and Age UK has welcomed the changes.

Labour wanted to go further, but their proposals would cost taxpayers an extra £10bn. They have neither been able to explain how they would fund this, nor guarantee they will reverse the changes should they form a government again. So much for a principled argument!

Under auto-enrolment proposals any employee earning over the personal allowance threshold will automatically be enrolled in a private pension scheme contributed to by the employer, the employee and with an element from government through tax relief.

Yes, there will be a cost to employers, but ultimately encouraging saving is a good thing and both the Coalition and the Opposition agree on the principle of auto-enrolment.