Shortage of Workers
Baroness Altmann Excerpts(3 years ago)
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Baroness Stedman-Scott (Con)
I will leave that to my noble friend to make the suggestion.
The SAWs visa scheme makes sure that people can have a visa if employers promise to pay them over £20,000. I am pleased about that, because then the “cheap labour” heading goes. One swallow does not make a summer, but today I spoke to one of the biggest fruit providers in Kent and it has managed quite well in getting in seasonal workers. If you pay and treat them well, and give them good accommodation, it seems they will come.
Lord Lilley (Con)
My Lords, does the Minister accept that a general shortage of labour is a symptom of excess demand? You cannot assuage that by importing labour from abroad for the simple reason that workers not only produce but consume goods and services. The extra demand they create exactly equals the extra demand they assuage.
Noble Lords
Baroness Altmann (Con)
Thank you, my Lords. I commend the Government on protecting jobs and preserving high employment levels, but I put in a plea regarding the immigration situation. Health and care workers are put into the same bracket when we talk about special visas, but the majority of care workers—more than 90%—earn less than the £20,000 limit. Would it be possible to have a special channel for overseas care workers in the current emergency situation where so many vulnerable and elderly people are left without care and homes are having to close?
Baroness Stedman-Scott (Con)
We are working with the DHSC and the DfE to promote opportunities and routeways into adult care. We are using our sector-based work academies to get people skilled, but the health and care visa is available to qualified professionals looking for work in the sector as long as they meet the minimum eligibility criteria, which includes a salary minimum of £20,000.
Gender Pensions Gap
Baroness Altmann Excerpts(3 years ago)
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Baroness Stedman-Scott (Con)
Carer’s credit is a national insurance credit available to people who provide care for one or more individuals for at least 20 hours a week. It can help individuals gain qualifying years that count towards the new state pension. Under new state pension reforms, carer’s credit has equal value to that of someone who pays national insurance contributions. In addition to carer’s credit, as I have already said, there is a wide range of other national insurance credits available to help people maximise their state pension entitlement.
Baroness Altmann (Con)
My Lords, does my noble friend agree that there is a particular problem in this area with the situation for women on divorce? Although the Government have introduced pension sharing orders for divorce, do they have a figure for how many or what proportion of divorcing couples actually share the pension? Many men will say to their partner, “Oh, my pension is not worth terribly much”; it is then ignored and solicitors do not always get involved or advise women. Will my noble friend join me in commending the MoneyHelper service, Pension Wise, which has just established a helpline for women on divorce and encourage take-up?
Baroness Stedman-Scott (Con)
Pension sharing on divorce is an option that can help women when their marriage or civil partnership breaks down. It enables part or all of a person’s pension to be transferred from the former spouse as part of a settlement. This can help couples divide what might be one of their largest assets. I fully take on board my noble friend’s point about the extra effort to make sure that women—and, indeed, men—know about the helpline. To ensure that divorcing couples are aware of that option, the Government are looking to improve signposting to information about pension sharing on divorce when implementing the reforms to divorce law.
Cost of Living: Pensioners
Baroness Altmann Excerpts(3 years, 1 month ago)
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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(3 years, 1 month ago)
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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(3 years, 3 months ago)
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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(3 years, 4 months ago)
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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(3 years, 4 months ago)
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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(3 years, 4 months ago)
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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(3 years, 5 months ago)
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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(3 years, 7 months ago)
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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.