Cost of Living: Pensioners

Baroness Altmann Excerpts

Thursday 26th May 2022 Lords Chamber

[Baroness Stedman-Scott (Con)]

The noble Lord understands that I cannot make that commitment. We understand that people are struggling—we really do—with rising prices of energy and other things. The Chancellor is clear that, as the situation evolves, so will our response, with the most vulnerable being his number one priority. He will set out more details today. All noble Lords and I will have to wait to hear what he says.

[Baroness Altmann (Con)]

My Lords, what are the Government doing to help pensioners with the cost of living crisis? This is an emergency. Age UK has just released the report It Doesn’t Add Up, which quotes single pensioners who are

“anxious and depressed. I only shower once a fortnight and use the oven once a week. I do not know what else I can do”.

There is more the Government can do. I know my noble friend cares deeply about this issue; would she urge the Treasury to look at issues such as reducing the standing charge that single pensioners pay, increasing the value of the warm homes discount, which after 10 years is still just £140, and perhaps increasing pension credit, by £20 a week, for this emergency situation?

[Baroness Stedman-Scott (Con)]

I thank my noble friend for making those points. I have no desire to wind up noble Lords, but please can we wait and listen to what the Chancellor says? Perhaps then we can speak again about your question.

Senior Citizens: Means-tested Benefits

Baroness Altmann Excerpts

Monday 23rd May 2022 Lords Chamber

[Baroness Stedman-Scott (Con)]

I thank the noble Baroness for that contribution and suggestion. As I said, it is important that we do everything we can. I cannot commit to a dedicated support service but, as I have done on many occasions, I will take it back to the Minister for Pensions and will write to the noble Baroness in due course.

[Baroness Altmann (Con)]

My Lords, it is of course important that people entitled to pension credit get it, but what are the Government doing to help the poorest pensioners? The winter fuel payment is lower than it was in 2009 and cold weather payments and warm home discounts have not increased for over 10 years. Given that in the pandemic the Government considered that a £20 a week addition to universal credit was needed, perhaps current emergency situations require consideration of similar measures for the state pension, or at least pension credit.

[Baroness Stedman-Scott (Con)]

I reiterate what the Prime Minister has said: no option is off the table. We will do what we can but noble Lords will have to wait a little longer for those announcements to be made.

Social Security System

Baroness Altmann Excerpts

Tuesday 22nd March 2022 Lords Chamber

[Baroness Stedman-Scott (Con)]

I must pay tribute to the community organisation to which the noble Lord refers and many others with which noble Lords will have contact. We are aware of the work that food banks and other such organisations do. Our best way to help people through these difficulties is to get them into work, where they can, and to ensure that they earn enough to survive.

[Baroness Altmann (Con)]

My Lords, my noble friend may not be surprised when I ask whether there is any update on the issue of pensioner poverty and increasing the take-up of pension credit, to which so many pensioners are entitled but do not receive.

[Baroness Stedman-Scott (Con)]

I am not in the least surprised that my noble friend raises this issue. I commend her, and I was rather hoping that the noble Lord, Lord Foulkes, would be in his seat if this issue was mentioned. At DWP Oral Questions in the other place this week, my Secretary of State made some very good pronouncements about pension credit and our plans for a campaign to get take-up increased, which we will do. I am going to hold an all-Peers briefing on pension credit to bring all noble Lords up to date with the excellent work the department is doing.

Women: Cost of Living

Baroness Altmann Excerpts

Thursday 10th March 2022 Lords Chamber

[Baroness Stedman-Scott (Con)]

I am not aware that the information the noble Baroness suggests we should have is there. She makes a good point, and again, I shall go back, talk to my colleagues and try to get that information.

[Baroness Altmann (Con)]

My Lords, many single women are older—including mothers—and in poorer health, and they are also at greater risk of long-term unemployment. What are the Government doing to address that issue?

[Baroness Stedman-Scott (Con)]

The Government are doing an awful lot in this area. Despite the unacceptable rise in the cost of living and all the impacts on people, we are working morning, noon and night to get people back to work—into a job, a better job and a career, so that they can be self-sufficient. The Restart programme really helps them to do that. It is intensive tailored support, which I am sure will have great benefits for some people.

Older Workers: Job Market Opportunities

Baroness Altmann Excerpts

Thursday 3rd March 2022 Grand Committee

Asked by

[Baroness Altmann]

To ask Her Majesty’s Government what steps they are taking to ensure that older workers can secure new opportunities in the jobs market.

[Baroness Altmann (Con)]

My Lords, I first thank the House of Lords Library staff for their excellent help with the background statistics for this debate. I also thank the Centre for Ageing Better for its helpful briefings. I declare my interest as a board adviser to the not-for profit community interest company Bravestarts, which is already helping many older people to find ways to return to work in later life. I am also an adviser to the International Longevity Centre. I also thank all noble Lords who have attended this short debate today.

For many decades now, average life expectancy has been rising and people have had longer periods in retirement. Recognising the dangers that this would pose to future public finances and growth in a rapidly ageing population, Governments have pursued policies of increasing state pension ages, abolishing mandatory retirement ages and encouraging longer working lives. Indeed, this House is a live example of the value added by the experience, maturity and energy of older people who are still working. Older workers bring valuable talent, skill sets, patience and wisdom, which are often lost when recruitment focuses only on the young.

The ideal scenario for many, as they enter their 60s and even 70s, may be to reduce working hours from full-time to part-time, which is why the trends towards more flexible employment are most welcome. They will allow people to build extra income both now and in the future, as well as boosting their pensions and overall economic growth.

The employment rate for over-50s and over-60s, especially women, had been steadily increasing, boosting the economy. The National Institute of Economic and Social Research showed that people retiring just one year later than previously can add one percentage point to economic growth each year. However, if more older people pull out of employment altogether, this source of economic growth disappears, the economic activity will remain permanently lower and the pension savings of those who are no longer working will be unable to last as long.

This is why there is a concern that, since the pandemic started—since December 2019—the indications are that the employment rate for those aged between 50 and 64 fell from 72.7% to just 70.9%, reversing a well-established long-term trend. Indeed, I argue that the jobs statistics released recently suggest that perhaps the single biggest challenge in the labour market at the moment is how we help older people to stay in or return to work. Despite record numbers of job vacancies—1.3 million—and with labour supply currently lagging behind demand, 600,000 fewer people are in work now than two years ago, and economic inactivity has risen in the past months, largely driven by the over-50 age group, particularly women.

The largest proportion of the economically inactive are the older women who are less likely to have private pensions or have much less private pension. That indicates that the pandemic may be having more worrying knock-on impacts than perhaps have yet been factored into economic forecasts, if it has reduced the ability and perhaps desire of people over 50 to stay in work and may have increased health inequalities in the population, which were already stark, with a 20-year differential in healthy life expectancy across the country. The employment gap for older workers relative to the average in the population and the disability employment gap have both widened. Once again, those trends of concern are reversing the positive gains seen up to 2020. It will be important to see whether those trends will reverse after Covid. I certainly hope so.

I commend the Government on their October 2020 Plan for Jobs programmes offering financial incentives for employers who are considering hiring new staff. I welcome the Restart scheme and the October 2021 expansion of support packages, with the lifetime skills guarantee, the national skills fund, skills bootcamps for adults and the over-50s champions in jobcentres.

We are seeing a potential that needs to be carefully observed by the Government. In our ageing population, commitments to encouraging longer working lives are important for long-term economic growth as well as individual well-being. The coalition Government asked me to be their older workers’ business champion. The plight and needs of the over-50s in employment or wishing to return to work were made clear in my report, A New Vision for Older Workers, with recommendations based around helping employers and individuals with what I called the three Rs: retain, retrain and recruit, which are all the essential ingredients of a successful strategy for increasing jobs, labour force participation and opportunities for the over-50s in the labour market.

Indeed, as work becomes physically less demanding, having the opportunity for people to enjoy working in later life is important. I know that it is also important to my noble friend the Minister and her department. I ask her to take back to her department the need for published evaluation and evidence on the effectiveness of schemes that have commendably been introduced and specifically designed to help the over-50s back into work. What works best? Is her department working on any detailed research projects, perhaps in collaboration with a university or the excellent departmental officials, to understand the interventions that can best assist in retraining, retaining and recruiting older staff who might otherwise be at risk of leaving the workforce?

Might the Government consider incentives for employers to create specific programmes to ensure that older people are seriously considered rather than overlooked when it comes to in-work training? Many older people are willing to accept lower pay in order to participate in training programmes or programmes to help them change career but find that they are not widely available for older applicants. With a number of employers, I organised schemes for older apprenticeships, but older people often did not seem to believe that they should apply because “apprenticeship” relates, in their minds, to younger people. Might the Government consider the same kind of principle but maybe calling such schemes “career changer” incentives or “new career” programmes, to ensure that employers are encouraged to offer opportunities for training to new recruits at older ages? Individuals may be more likely to apply.

I also hope that my noble friend will consider whether companies might be required to report on what they are doing to ensure they are providing an age-friendly environment at work, one that offers the flexibility for part-time, but also includes in retraining those of all ages and career stages, fairer consideration of older applicants when recruiting and proper age audits as part of their diversity, training and recruitment strategies.

Making older workers feel valued is really important for all our futures. In the context of pensions, I have concerns about people pulling out of the labour market early. Are they just using their private pensions to bridge themselves from age 55 to 65, until their state pension starts, but have nothing left later? Will my noble friend encourage the Treasury to monitor and conduct research into what is happening when people are taking money out of their pensions? Making workers feel valued is important. Benefiting from the wisdom that comes with age and being part of a successful workforce can help with our Covid rebuilding programme.

State Pension Underpayments and Arrears for Women

Baroness Altmann Excerpts

Monday 21st February 2022 Lords Chamber

Asked by

[Baroness Altmann]

To ask Her Majesty’s Government what progress they have made in correcting State Pension underpayments and arrears for women; what is their latest estimate of (1) the number of women who have had their State Pension increased so far, and (2) the proportion of the total affected by underpayments that this represents; and what steps they are taking to ensure such errors do not occur again.

[The Parliamentary Under-Secretary of State, Foreign, Commonwealth and Development Office and Department for Work and Pensions (Baroness Stedman-Scott) (Con)]

Between 11 January 2021 and 30 September 2021, 38,507 cases were reviewed, 9,491 underpayments identified and arrears of £60.7 million made. We cannot break this down by gender. A further update will be published around the time of the next fiscal event. The department has undertaken steps to prevent future error, including changes to the checking approach, additional learning for staff and, as a failsafe, regularly running a scan to pick up any cases that may have been missed.

[Baroness Altmann (Con)]

I thank my noble friend for her helpful response and for her department’s work. I have two questions: please could she explain why interest is not being added to back payments, as it was earlier for women whose underpayments were corrected after these official errors? Also importantly, I understand that the poorest women are at risk of losing benefits or social care funding when an arrears lump sum exceeds, for example, the £23,250 social care capital disregard. Most of these pensioners probably needed higher pensions and would also almost certainly have spent the money in past years but now risk the arrears being taken back in care fees straight after finally receiving the money. Will the Government consider introducing regulations—as happened after the Manchester bombing—requiring local authorities, to disregard these specific state pension back payments, not future higher pensions, from financial assessments for social care funding or means testing?

[Baroness Stedman-Scott (Con)]

Consistent with other large-scale LEAP exercises, special payments under the DWP discretionary scheme are not routinely made to those who have been underpaid state pension. However, under exceptional circumstances, such as where severe distress has been caused by the way an individual case has been handled, a case may be referred for consideration of a special payment.

On the point that my noble friend raises on social care and the impact of back payments, where a local authority charges a person for their care and support, regulations set limits below which a person’s income and capital must not be reduced by changes. Local authorities may take most of the benefits people receive into account unless it is specifically required to be disregarded by regulations. The responsibility for interpreting and applying the regulations and guidance tests rests with local authorities. I will take the point about legislation back to the department and write to my noble friend.

State Pension Age

Baroness Altmann Excerpts

Tuesday 18th January 2022 Lords Chamber

[Baroness Stedman-Scott (Con)]

I hope that, during the review, the devolved Administrations will be consulted. I will certainly go back to the department and speak to the Secretary of State to make sure that that is included in the review. The review will then report, and the noble Baroness will get the answers that she is looking for.

[Baroness Altmann (Con)]

My Lords, I am delighted that my noble friend Lady Neville-Rolfe will be leading an independent inquiry. Can my noble friend the Minister assure the House that some flexibility in state pension age will be considered for those who are not healthy and wealthy enough to wait for the ever-rising state pension age? With a significant, 20-year difference in healthy life expectancy across the country, perhaps very long national insurance records might be considered for early access to the state pension.

[Baroness Stedman-Scott (Con)]

As I have said many times, I cannot give any guarantees, but I am absolutely sure that the points my noble friend raises about flexibility and age will be included in the review. I urge her to take part in that consultation.

Rivers and Coastal Waters: Sewage

Baroness Altmann Excerpts

Monday 29th November 2021 Lords Chamber

[Lord Goldsmith of Richmond Park (Con)]

My Lords, we have made it clear to the water industry, including Southern Water, that it needs to reduce the adverse impacts of all sewage discharge discharges, whether treated or untreated, as a matter of urgency. In addition, the sector will need to demonstrate year-on-year progress in meeting those targets. Where the targets are not met, the Government will have no hesitation whatever in stepping in and using all the tools at our disposal.

[Baroness Altmann (Con)]

My Lords, I thank my noble friend, his department and his officials for all the support that they have given on this issue during the passage of the then Environment Bill and the amendment from the noble Duke, the Duke of Wellington, that was finally accepted. I welcome the investigation into the sewage discharges. Does my noble friend agree that a ban on wet wipes would significantly improve the ability of water companies to manage sewage treatment more effectively and, if he does, when any such measures could be anticipated?

[Lord Goldsmith of Richmond Park (Con)]

The noble Baroness makes a really important point. There is no doubt that wet wipes can be a serious contributing factor to overflows at treatment works. Defra has already announced a call for evidence, which will explore among other things a possible ban on single-use wet wipes—or at least those that contain plastics. I assure the noble Baroness that, whatever the outcomes of that call for evidence, we are absolutely determined and willing to do whatever is necessary.

Gender Pay Gap

Baroness Altmann Excerpts

Tuesday 23rd November 2021 Lords Chamber

[Baroness Stedman-Scott (Con)]

I completely agree with the noble Baroness. You can sit in front of an employer and tell them what your salary is, and then they think they can get away with paying you just a little bit more. That is not on. I share the noble Baroness’s concerns, and I will feed those back into the policy-making process.

[Baroness Altmann (Con)]

I declare my interest as in the register, and I echo the birthday wishes to my noble friend. Following on from the question from the noble Lord, Lord Davies, I am delighted that Her Majesty’s Treasury will introduce measures to top up the pensions of those women who are receiving lower net pay each week due to the pension choice of their employer. The gender pensions gap is an urgent issue; it is twice the size or more of the pay gap. What measures are the Government taking to ensure employers help to close the gender pensions gap?

[Baroness Stedman-Scott (Con)]

My noble friend has been a long-term campaigner on the gender pensions gap and the net pay issue, and I am glad that we have some good news on the horizon. It was a Conservative Government who introduced mandatory gender pay gap reporting, in 2017, which means that all large employers—those of more than 10,000 employees—have to calculate it publicly. This has placed the gender pay gap at the top of the agenda and prompted conversations with business. Employers are now focused on understanding and tackling the causes of the gaps in their own organisations.

Environment Bill

Baroness Altmann Excerpts

Consideration of Commons amendments
Tuesday 9th November 2021 Lords Chamber

[Baroness Quin (Lab)]

My Lords, I shall also speak to Motion C. I begin by giving my renewed congratulations and thanks to the noble Duke, the Duke of Wellington, for all his efforts, which have not only caused the Government to concede in various ways but highlighted the issue to the wider public, so that many of our citizens who were previously unaware of the extent of sewage discharges are now very much engaged and determined to see that these large-scale problems are addressed. It is a pleasure to have been involved in the cross-party work with the noble Duke, the noble Baroness, Lady Altmann, and the noble Lord, Lord Oates. I wish the Government had included all the elements of the noble Duke’s amendment, but I recognise some of the commitments that have been included, and which represent a considerable improvement.

I will make three brief points which I think have not been fully covered so far. The first point is about cost. There is a lot of controversy about the costs of the clean-up, and the Government’s estimates of the costs have been challenged by many people as being far too large. I hope that the Government, in determining the costs as they move forward, will consult widely—not just with the water companies but with all stakeholders and communities—particularly looking at the claims of some people who believe that much more can be done quickly and relatively more cheaply than the Government claim.

For example, the Thames tideway scheme is claimed to be able to eliminate 90% of storm overflows at a cost of £20 to £25 on London water bills a year, which is not a huge cost, given some of the figures that have been bandied around. Many individuals and environmental groups think that a substantial reduction of spills can be achieved in the short term without, for example, having to replace wholescale networks of Victorian sewers. We need to look at what can be achieved with a fairly modest increase in water bills.

Secondly, I still believe that we need improved take-up of technology by the water companies. For example, when looking at the figures on smart meters and comparing what is happening in this country with the United States, we can see the introduction of technology in a much more widespread way in the United States.

Thirdly, we need a holistic approach to particular rivers and coastal waters. It makes no sense to upgrade—as sometimes happens—one treatment works on a river but not another one just a few kilometres downstream, which means that the environment for aquatic life improves only for the distance between the two and there are no proper, fundamental effects. Within an overall approach, there must also be priorities. I believe that the chalk streams and the SSSI areas—particularly sensitive coastal areas and places where there is an effect on health—should still be very high priorities.

I share some of the frustrations expressed by the noble Baroness, Lady Jones of Moulsecoomb, particularly when she talked about European battles of the past. I remember campaigning, a long time ago, and feeling ashamed that our own country was so far behind in, for example, the clean-up of waters around our beaches and coastal areas. It is very depressing that we need to once again express shame for what is happening in our rivers and coastal waters today.

In conclusion, I welcome the progress that has been made during the course of the Bill’s passage, but the issue remains a crucial one. I hope that the Government will find themselves under close scrutiny from all parties, across both Houses, to ensure that they deliver on their promises, and that we will see an end to the appalling amount of sewage discharges which have occurred in recent months and years.

[Baroness Altmann (Con)]

My Lords, on Motion C, I too congratulate my noble friend the Duke of Wellington on all his amendments throughout the passage of the Bill to which I have added my name. It has been a pleasure to work co-operatively across the House, including with the noble Baroness, Lady Quin, and the noble Lord, Lord Oates.

Indeed, noble Lords’ scrutiny has achieved many important improvements. I therefore thank our excellent Ministers—my honourable friend Rebecca Pow in the other place and my noble friend the Minister—my noble friend Lady Bloomfield, and the entire Bill team for their engagement, hard work and willingness to be persuaded to finally accept the need to place duties on the water companies. I also commend the work of my honourable friend Philip Dunne in the other place, who did so much to move this forward.

At last, the Bill places a direct legal duty on the water companies. The government amendment seems to me to produce what we and my noble friend the Duke of Wellington were aiming to achieve with the most recent amendment. There is considerable public concern that the Environment Agency is not using its existing powers, has relied too much on self-reporting and has consistently tolerated repeated illegal discharges which damage our waterways and public health. I am grateful to the Government that they have now specified both the environmental and human health aspects.

It will also, as other noble Lords have said, be important to monitor and oversee sewage discharges far more rigorously and to track and reduce such unacceptable discharges so that companies do not rely on not being caught as the most cost-effective way to proceed. I have sympathy with the frustrations of the noble Lord, Lord Adonis, and the noble Baroness, Lady Bennett, but I believe that, although in an ideal world we would not want to start from here, we are not dealing with the situation that we would all wish to see. After years of neglect and companies having behaved so egregiously, I do not believe that this can be addressed instantly. Therefore, it will take time to undo the neglect. I believe that the Government must and will take the necessary actions, but of course we will see over time.

Currently, we have two excellent Ministers who are committed to the aims of the Bill, for which I am most grateful. I also briefly congratulate the noble Lords, Lord Krebs and Lord Anderson, on the pressure they have put on to improve the independence of the OEP. Overall, I believe that this House has achieved a significant amount. We have pushed the Government as far as we possibly can, and I hope that we will now accept the government Motions and be rightly proud of this landmark Bill.

[Baroness Butler-Sloss (CB)]

My Lords, I have rightly stayed silent up to now, having been content with listening, as I have done throughout. I think noble Lords are hugely to be congratulated for encouraging and indeed pushing the Government into a much more favourable position which I think, as the noble Baroness has just said, we ought to accept. I remain particularly concerned about one thing: the discharge of sewage into rivers and chalk streams. How on earth will the Government really see that this is properly monitored? Because if it is not monitored, it is a waste of time.