Pension pot plan to buy homes 'beyond bonkers'

Published by 24publishing for 24dash.com in Housing and also in Central Government, Communities, Local Government

Allowing parents and grandparents to use their pensions to help their children get on the housing ladder is "beyond bonkers", according to the deputy leader of the Labour party.

The idea was floated this week by the Liberal Democrats at their annual conference in Brighton.

Appearing on Question Time this evening, chief secretary to the Treasury Danny Alexander, explained: "We had an idea about allowing those mums and dads who don't have vast amounts of free cash to give their children but do have a pension fund they have built up to release their lump sum early or use it to guarantee a deposit. That's another way mum and dad could be freed up to help their kids buy a house."

However, Harriet Harman, deputy leader of the Labour Party, said the plan was "absolutely barmy". She said: "For a start only a very small percentage of people have got pension pots which are big enough, so already you'd only be helping a small number of people and the idea that people should gamble their pension pots on the property market I think is absolutley beyond bonkers."