Oral Answers to Questions

Baroness Chapman of Darlington Excerpts

Monday 25th June 2012 Commons Chamber

[Steve Webb]

I am pleased to say that the early evidence from auto-enrolment—firms are already choosing schemes —is that average charge levels are coming down very dramatically, compared with the stakeholder charge caps that used to be in force, for example, with a norm of around 0.5% for last firms, which is radically below the levels we have seen in the market in the past. However, we need to keep this under review and have reserve powers to cap charges if we think they are becoming a problem as auto-enrolment is rolled out.

[Mrs Jenny Chapman (Darlington) (Lab)]

In their efforts to get people back into work, will Ministers please make more of an effort to work with colleagues in the Treasury on tax credits? Constituents of mine are taking three-month contracts, ringing up to get the forms, which then take six or seven weeks to arrive, and when they are returned they are being refused the tax credit because there is only four weeks of the employment left. This is putting people off taking temporary work and really is—I use the word again—a shambles.

[Mr Duncan Smith]

The hon. Lady knows that we are not yet responsible for tax credits, although under universal credit they will eventually come in. I will certainly relay her comments to the Treasury and ensure that that does not happen. I agree with her that everything we do to promote work, even part-time work, is very important.