Written Statements

Thursday 6th September 2018 Written Statements

Thursday 6 September 2018

Energy Consumers Support Update

Thursday 6th September 2018 Written Statements

[The Minister for Energy and Clean Growth (Claire Perry)]

In line with the commitment we made in the clean growth strategy, the Department has been working alongside the implementation of the Each Home Counts review to develop a digitally led consumer energy efficiency advice service. I am committed to ensuring that all consumers are able to access trusted impartial energy efficiency advice in order to reduce their bills, make their homes warmer and cut their homes’ carbon emissions. A key element of this will be a call centre to assist those unable to use the website.

The Department is procuring this call centre presently. The selected supplier, Sitel UK Ltd, has indicated that it requires an indemnity in respect of liabilities that it may incur if employees of a former subcontractor providing telephone-based services bring employment law claims against it in light of the alleged application of the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE).

In relation to this, I am writing to inform you of a departmental minute which will be presented to Parliament today, giving notice of the Department incurring this contingent liability in the form of indemnity protection provided to Sitel UK Ltd.

We believe it is appropriate to incur this contingent liability, to ensure that trusted impartial energy efficiency advice can be provided to all consumers without further delay. We consider the provision of this liability as the best value for money option to ensure the new service is available to all.

[HCWS937]

Informal ECOFIN

Thursday 6th September 2018 Written Statements

[The Chancellor of the Exchequer (Mr Philip Hammond)]

An informal meeting of the Economic and Financial Affairs Council (ECOFIN) will be held in Vienna on 7 and 8 September 2018. The Council will discuss the following:

Working lunch—The European Investment Bank: achievements and future challenges

Based on a presidency issues note, the Council will discuss the achievements and future challenges of the European Investment Bank (EIB).

Working Session I

The Council will then be joined by central bank governors for the first working session.

Financial stability implications of increasing interest rates

Following a presentation from the Centre for European Policy Studies, the Council will discuss the financial stability implications of increasing interest rates.

The economic potential and risk of crypto assets

Following a presentation from Bruegal, the Council will discuss the economic potential and risks of crypto assets.

Working Session II

MFF 2021-27: Deeping of the economic and monetary union

The Council will discuss issues in the context of the multiannual financial framework (MFF) for the period 2021-27 and deepening of the economic and monetary union. Specifically, the Council will exchange views on proposals in relation to the InvestEU programme and the approach for strengthening structural reforms and macroeconomic stabilisation in the eurozone.

Working Session III

Fair taxation of the digital economy

The Council will exchange views in regards to fair taxation of the digital economy.

[HCWS942]

National Insurance Contributions

Thursday 6th September 2018 Written Statements

[The Exchequer Secretary to the Treasury (Robert Jenrick)]

The Government are announcing today that they will not proceed with the abolition of class 2 national insurance contributions (NICs) during this Parliament.

This change was originally intended to simplify the tax system for the self-employed. We delayed the implementation of this policy in November to consider concerns relating to the impact on self-employed individuals with low profits. We have since engaged with interested parties to explore the issue, and further options for addressing any unintended consequences.

A significant number of self-employed individuals on the lowest profits would have seen the voluntary payment they make to maintain access to the state pension rise substantially. Having listened to those likely to be affected by this change we have concluded that it would not be right to proceed during this Parliament, given the negative impacts it could have on some of the lowest earning in our society.

Furthermore, it has become clear that, to the extent that the Government could address these concerns, the options identified introduce greater complexity to the tax system, undermining the original objective of the policy.

The Government remain committed to simplifying the tax system for the self-employed, and will keep this issue under review in the context of the wider tax system and the sustainability of the public finances.

The Government still intend to legislate for reforms to the NICs treatment of termination payments and income from sporting testimonials, which were set out in the draft NICs Bill published on 5 December 2016. These are important changes to ensure the NICs treatment is consistent with the treatment of income tax in previous Finance Acts. We will set out further details in due course.

[HCWS944]

Public Service Pension Schemes: Quadrennial Valuations

Thursday 6th September 2018 Written Statements

[The Chief Secretary to the Treasury (Elizabeth Truss)]

We undertake valuations of the public service pension schemes every four years. This is the first time that a full assessment of the pension schemes has been undertaken since the Government introduced reformed schemes in 2015. The reform of the schemes addressed the rising cost of pensions, rebalancing taxpayer and member costs to ensure that public pensions were put on to an affordable and sustainable footing. The valuations are important as they ensure that the full costs of the schemes are understood and fully recognised by Government.

Today I am publishing a document that sets out how the valuations are to be conducted this year. The document sets a range of assumptions that Departments and the Scottish and Welsh Governments must use in finalising their valuations of public service pension schemes. Our initial results show that the protections in the new cost cap mechanism mean public sector workers will get improved pension benefits for employment over the period April 2019 to March 2023. This test, known as the cost control mechanism, was introduced to offer taxpayers and employees protection from unexpected changes in pension costs. Where the value of the pension scheme to employees has changed from the levels set when reformed pension schemes were introduced in 2015, steps must be taken to return costs to that level.

There are currently more than 5 million active members of the public service pensions schemes, which cover the NHS, teachers, the armed forces, the police, firefighters, local government workers, judiciary and civil servants. The outcome of the valuations and the cost control mechanism will be confirmed later this year. Secretaries of State, and Scottish and Welsh Ministers, will then consult the appropriate scheme advisory board, which consist of member and employer representatives for each of the pension schemes, to reach agreement on the steps to be taken to return costs to their target level. Where it is not possible to reach agreement, the legislation provides that remedy will be delivered by increasing the rate at which pension benefits accrue. Changes will be implemented with effect from April 2019. An additional process operates in the Local Government Pension Scheme (LGPS) (England and Wales) run by the LGPS England and Wales Scheme Advisory Board. In accordance with stated policy, this will be allowed to complete before the HM Treasury cost control mechanism is tested.

We committed to keep the cost control mechanism under review. I will therefore be asking the Government Actuary to undertake a review of the mechanism to check whether it is working as intended and delivering the Government’s objective to protect taxpayers and workers from unforeseen changes in pension costs. We are committed to fairly remunerating public sector workers and to implementing the results of the valuations, but it is right that we examine whether the mechanism is operating appropriately and in line with the original policy intentions. The scope of the review will be limited to the design of the cost cap mechanism. The review will conclude in time for the next four-yearly round of valuations.

In addition, early indications are that the amount employers pay towards the schemes will need to increase. This is because of proposed changes to the discount rate, which is used to assess the current cost of future payments from the schemes, to reflect the Office for Budget Responsibility’s long-term growth forecasts. Further details will be known later this year. Some increase in costs was anticipated at Budget 2016, which Departments and the devolved Administrations will need to meet in full. The Treasury will be supporting Departments with any unforeseen costs for 2019-20. Further discussions will be taken forward as part of the spending review.

The document is being published in draft form to allow employee representatives, public service employers and Departments time to comment. Decisions will be confirmed later in the autumn, following statutory consultation with the Government Actuary.

[HCWS945]

Appointments

Thursday 6th September 2018 Written Statements

[The Secretary of State for Digital, Culture, Media and Sport (Jeremy Wright)]

I am today laying two statements before Parliament to fulfil my statutory duty under paragraph 9 of schedule 1 of the Development of Tourism Act 1969 and paragraph 5(2) of the schedule to the British Library Act 1972.

I am the appointing authority for 23 current board members for the British Library Board, the British Tourism Authority Board (VisitBritain) and the English Tourist Board (VisitEngland). The legislation for these bodies determines that statements should be laid before Parliament for all board appointments and sums payable for these appointments as soon as possible after the first appointment is made.

As a consequence of an historic oversight this statutory duty has not been fulfilled for 16 of these appointments. These statements are now being laid to correct this error.

The Department accepts full responsibility and apologises to the House and I have taken action to ensure my Department fulfils the statutory duty for all future appointments to these boards.

Attachments can be viewed online at: http://www. parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2018-09-06/HCWS939/.

[HCWS939]

Hong Kong: Six-monthly Report

Thursday 6th September 2018 Written Statements

[The Secretary of State for Foreign and Commonwealth Affairs (Mr Jeremy Hunt)]

The latest six-monthly report on the implementation of the Sino-British joint declaration on Hong Kong was published today, and is available online. It covers the period from 1 January to 30 June 2018. The report has been placed in the Library of the House. A copy is also available on the Foreign and Commonwealth Office website (www.gov.uk/government/organisations/foreign-commonwealth-office). I commend the report to the House.

Attachments can be viewed online at: http://www. parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2018-09-06/HCWS943/.

[HCWS943]

Counter-Terrorism and Border Security Bill

Thursday 6th September 2018 Written Statements

[The Minister for Security and Economic Crime (Mr Ben Wallace)]

I am today placing in the Libraries of both Houses the Department’s analysis of the application of Standing Order 83L of the Standing Orders of the House in respect of the Government amendments tabled for Commons Report stage of the Counter-Terrorism and Border Security Bill scheduled for 11 September 2018. The analysis should be read alongside annex C to the explanatory notes to the Bill.

[HCWS941]

Migration Policy

Thursday 6th September 2018 Written Statements

[The Secretary of State for the Home Department (Sajid Javid)]

The Secretary of State for Environment, Food and Rural Affairs, my right hon. Friend the Member for Surrey Heath (Michael Gove) and I are pleased to announce that our Departments will implement a nationwide pilot to bring non-EU migrant workers to UK farms, commencing in early 2019.

The pilot will mean fruit and vegetable farmers are able to employ migrant workers for seasonal work for up to six months. 2,500 workers from outside the EU will be able to come to the UK each year, alleviating labour shortages during peak production periods.

Soft fruit production in the UK has grown dramatically, by 130% in the last 20 years. To ensure that this growth continues and the UK is at the forefront of the next agriculture revolution, farmers must also look at ways that technology can reduce demands for labour.

However, automated harvesting solutions are not universally available and so in the short term this pilot will support farmers during peak production periods.

The seasonal workers pilot will be run by two scheme operators, who will oversee the placement of the workers. The arrangements for selecting these will be announced in due course.

The pilot will run until the end of December 2020 and will be monitored closely by the Home Office and the Department for Environment, Food and Rural Affairs.

[HCWS940]

Disability Update

Thursday 6th September 2018 Written Statements

[The Minister for Disabled People, Health and Work (Sarah Newton)]

This Government’s vision for disabled people is to create a society that works for everyone, where all can participate fully, and be included. This vision aligns with the UN convention on the rights of persons with disabilities (the convention), which protects and promotes the rights of disabled people.

In the UK everyone’s rights are protected, including the rights of disabled people. The Government are always making improvements that reflect the intent of the convention. The UK has achieved a great deal and has been at the forefront of developments in equality and disability rights. But we are clear that more needs to be done. We are delivering improvements to ensure disabled people have the same opportunities for inclusion as people who are not disabled.

Our newly created inter-ministerial group on disability and society will drive forward co-ordinated action across Government to jointly tackle barriers to disabled people’s full participation and inclusion in society, ensuring we drive through progress against the implementation of the convention. And we are strengthening our engagement with disabled people through constructive dialogue and collaboration.

Today I will place a copy of the report and letter that we have submitted to the UN outlining the UK’s progress on protecting the rights of disabled people in a number of areas as set out under the convention in the Library of the House. Last year the UN reviewed the UK’s implementation of the convention, and made a number of recommendations, asking us to respond to some of those within 12 months. This is a standard process for signatories. The recommendations covered independent living and being included in the community, work and employment and adequate standard of living and social protection, as well the UN’s optional protocol inquiry that we responded to in 2016.

The response describes positive actions that we are taking in each of these areas, including:

We have made available a further £9.4 billion funding for social care in England between 2017-18 and 2018-19 to ensure that councils can increase the capacity of the social care system—an 8% real-terms increase over the current spending review period (2016-17 to 2019-20);

We are supporting more people whose health affects the way they do their job through Access to Work—over 25,000 people in 2016-17, an 8% increase on 2015-16, spending £104 million, up from £96 million. We also introduced a new tech fund under Access to Work to help disabled people to benefit from the latest advances in assistive technology; and

We will be spending an estimated £54 billion in 2018-19 on benefits to support disabled people and those with long-term health conditions, up from £44.7 billion in 2010-11—the highest ever.

We have made great progress, but there is always more we can do. Disabled people still face barriers to full inclusion, and we will continue to break these down, working with disabled people, the public, private and third sectors until everyone can participate in their community and achieve their aspirations.

[HCWS938]