Unemployment Figures

Debate between Baroness Janke and Baroness Stedman-Scott

Thursday 20th October 2022 Lords Chamber

[Baroness Stedman-Scott (Con)]

I sometimes worry about using the term “older workers”, but rising economic inactivity in the over-50s is contributing to shortages in the labour market. We are working with employers: one example in terms of technology and skills is the STEM returners work task force that we have introduced. In that way, we are trying to upskill people who have left the workforce and get their skills back on STEM so they can go into high-paid work.

[Baroness Janke (LD)]

My Lords, with job vacancies at record levels—for care workers it is 52%, the highest level since records began—what are the Government doing to invest in the supply of much-needed care workers? Is it not time that the Government addressed the pay of care workers, currently less than that of supermarket workers, rather than trying to find solutions by recruiting workers from the poorest countries in the world, where they are desperately needed at home?

[Baroness Stedman-Scott (Con)]

We are cognisant of the vacancies in the care industry. We are promoting work, in partnership with the Department of Health, but we want employers to pay the right rate for the job. The Government cannot subsidise employers, so that is what we will encourage them to do.

Older Persons Commissioner for England

Debate between Baroness Janke and Baroness Stedman-Scott

Wednesday 19th October 2022 Lords Chamber

[Baroness Stedman-Scott (Con)]

I know that noble Lords like to get me into trouble but the fact of the matter is that the Government’s position, as it stands, is that there is no plan to introduce a commissioner. I have read the brief of the Welsh commissioner and tried to familiarise myself with her role. I suggest the noble Baroness joins the campaign of her noble friend Lord Foulkes. I will meet and I will listen.

[Baroness Janke (LD)]

My Lords, does the Minister agree that many of the issues facing older people, such as lack of affordable care, poor housing, pensioner poverty and isolation, require a cross-cutting approach if they are to be resolved? Would she agree that a strong independent voice for older people is needed at the highest level? If they do not appoint a commissioner, what will the Government do to make cross-departmental working a priority, end the marginalisation of older people and champion their needs?

Out-of-work Benefits

Debate between Baroness Janke and Baroness Stedman-Scott

Monday 17th October 2022 Lords Chamber

[Baroness Stedman-Scott (Con)]

That was the exam question. As my noble friend knows, the Restart scheme gives jobseekers out of work for nine months more intensive support to find a job. It has achieved more than 226,000 starts. The issue my noble friend raised concerning whether they are still in work six months later is really important. I do not have those statistics but I will go back to the department, find out whether we have them and, whether we have them or not, I will write to her and put a copy of the letter in the Library.

[Baroness Janke (LD)]

Does the Minister believe the Government are doing enough to remove the barriers that prevent people working? For example, carers are finding it more and more difficult to get any support, and when they do, they are faced with huge bureaucracy. Childcare is unaffordable even when it is available, which is not much of the time. Transport can be very expensive and inaccessible to certain groups of the population. Does the Minister agree that getting people back to work is much more about removing barriers, rather than imposing more punitive conditions on the already poor and vulnerable?

[Baroness Stedman-Scott (Con)]

Let me start by saying that the intention behind our efforts is not to issue punitive measures. Let us clear this up right now: as I have always said, sanctions are imposed only if there is no good reason for people not to take up an opportunity offered to them and they can do it. Some 98.9% of sanctions are down to the fact that people fail to turn up for interview, and the minute that they ring up to book the next appointment, the sanction is reviewed. At the DWP we do not go to work in the morning saying, “How many people can I sanction today?” That is just not the line. The noble Baroness raised a point about childcare, and it is number one on my list. I have just come back from the G7 where I spoke to my colleagues in Australia and Canada who have made enormous strides in improving childcare. The noble Baroness can take it from me that I am on the case.

Occupational Pension Schemes (Governance and Registration) (Amendment) Regulations 2022

Debate between Baroness Janke and Baroness Stedman-Scott

Tuesday 12th July 2022 Grand Committee

[Baroness Stedman-Scott (Con)]

The CMA found among pension schemes that there was a low level of engagement by trustees and a lack of clear and comparable information on which to assess value for money. Trustees were being steered by consultants towards their own higher-cost fiduciary management services, giving them an incumbency advantage. Ultimately, trustees were more likely to pay higher prices for these services than they should. Overall, the CMA found that this was having an adverse effect on competition for these services and likely bringing financial detriment for employer sponsors of defined benefit pension schemes and savers in defined contribution pension schemes.

It is important to note that both services were said to influence decisions affecting pension scheme assets worth over £1.6 trillion and the retirement incomes of millions of people. Any negative impact on scheme outcomes will be significant, and will accumulate and compound over the long term in which pension assets are invested. The CMA’s report proposed recommendations and remedies to encourage better trustee engagement when buying services, and better disclosure of fees and performance. The CMA made it clear that some of these remedies would be implemented by an order. That order was made in June 2019 and came into effect later that year.

The CMA also recommended that the Department for Work and Pensions take forward legislation to bring into pensions legislation the provisions of the order for two specific remedies: first, the requirement to carry out a competitive tender in certain circumstances before appointing, or continuing to use, a fiduciary manager; and secondly, the requirement to set objectives for, and review the performance of, investment consultants appointed by the trustees.

The CMA also recommended that legislation should provide for the Pensions Regulator to oversee these new duties on trustees, rather than leave long-term enforcement action against occupational pension scheme trustees to the CMA. The DWP, on behalf of the Government, committed to do this in early 2019 and consulted on its proposed legislation in summer 2019. However, because of necessary reprioritisation brought on by the Covid-19 pandemic, work on this was delayed until this year.

The regulations before the Committee fulfil the commitment the Government made in 2019 to accept the CMA’s recommendation and to integrate the requirements in the CMA’s order that apply to trustees of occupational pension schemes into pensions legislation. Subject to approval, this instrument will require trustees of occupational pension schemes to set objectives for persons who provide them with investment consultancy services, to review those objectives at intervals of no more than three years, and to annually review the performance of those providers against those objectives. This setting of objectives will enable trustees to monitor the performance of their advisers.

The regulations also require trustees to carry out a qualifying tender process when continuing to use existing fiduciary management providers, or appointing new ones, if the scheme meets the asset management threshold. The threshold is met when fiduciary managers covered by the regulations manage 20% or more of in-scope assets. The regulations also set out what the qualifying tender process is and when it must be carried out. Additionally, through the regulations the Government have defined “investment consultancy provider”, “investment consultancy services”, “fiduciary management provider” and “fiduciary management services” for the first time in pensions legislation.

The Government believe that these duties will encourage trustees to become more engaged with the way services are bought, monitored and evaluated, or to consider more efficient consolidation options. In turn, this will lead to better outcomes for scheme members and employer sponsors of schemes.

For the most part, the regulations replicate the effect of the relevant provisions in the CMA’s order. However, there are some small differences that reflect government policy. One such difference is about the type of schemes that are exempt from the requirement to set objectives. The CMA excluded trustees of schemes that are sponsored or funded by providers of investment consultancy and fiduciary management services from setting objectives for their investment consultant and from tendering for fiduciary management. The regulations bring these schemes back into scope of the requirement for trustees of such schemes to set objectives for their investment consultant. It is government policy that members of such schemes should still benefit from a well-governed, high-performing investment consultant, despite the trustees and the investment consultant being part of the same organisation.

The regulations also do not make any provision about local government pension schemes. This is a matter for the Department for Levelling Up, Housing and Communities and the devolved Administrations in Scotland and Northern Ireland to bring forward their own legislation. As such, for local government pension schemes, the CMA’s order, to the extent that it imposes requirements relating to investment consultants, will continue to remain applicable for the time being.

Finally, this instrument does not create any exceptions from the requirement to tender for fiduciary management services in cases where parties are connected only because they are participating in a joint venture. This is to avoid the risk that, where a scheme sponsor and a fiduciary manager had a joint venture, they would not be required to run, or bid for, a tender. The CMA order contains a limited exception for joint ventures. This change has been made to disincentivise firms from creating joint ventures to circumvent this duty.

As stated earlier, the regulations bring the monitoring and enforcement of these trustee duties into the regulatory remit of the Pensions Regulator. Trustees will be required to provide certain information about the use of investment consultancy and fiduciary management providers in the scheme return which they must complete each year and return to the Pensions Regulator. The information enables the Pensions Regulator to monitor compliance with the duties set out in the regulations. The regulator has said it will update its published guidance to reflect the final regulations ahead of them coming into force.

In conclusion, these trustee duties concerning the way investment consultancy and fiduciary management services are bought and evaluated will facilitate good governance, which will ultimately mean services that are better value for money, benefiting members and the employer sponsors of pension schemes. Of significant importance is that the regulations bring compliance, monitoring and enforcement of the duties under the remit of the Pensions Regulator. I therefore commend this instrument to the Grand Committee and beg to move.

[Baroness Janke (LD)]

My Lords, I thank the Minister for her presentation and explanation of why the Government are introducing this statutory instrument. The Explanatory Memorandum states that it

“will encourage better trustee engagement, transparency and governance when buying investment consultancy and fiduciary management services. It will require trustees of occupational pension schemes … to set objectives for their investment consultant and carry out a tender exercise in certain circumstances before appointing a fiduciary manager. It will also enable The Pensions Regulator … to oversee the remedies which apply to such trustees and ensure compliance.”

The problem that the regulations are designed to address is focused mainly on smaller occupational pension schemes which need to take advice on their investment strategy. The investigation by the CMA of advice to pension schemes found that there was a low level of engagement with trustees, a lack of information for assessment of value for money, and that customers were steered by consultants towards their own higher cost fiduciary management services giving them incumbent advantage.

The remedies proposed by the CMA are to become part of the new regulations, with TPR ensuring compliance. We are broadly supportive of the measures in the SI but have a few issues for the Minister to address. First, can she reassure us that the new process is not onerously bureaucratic and time-consuming for small schemes? Certainly, the introduction of competitive tendering has in some cases led to a very time-consuming process, so I would like her assurances on that.

What about the cost to smaller pension schemes? The impact assessment has detailed calculations but, probably because it is very long and detailed, I did not find a great deal on the need to empower and train trustees and managers to introduce the new system.

Also, the DWP has a strong view that bigger is better as far as pension schemes are concerned. These regulations are needed to improve the quality of advice to smaller schemes with less experienced trustees. Will the Minister say how the consolidation of DB and DC schemes is going? The Minister urges consolidation and the Government are starting to put in place a “comply or explain” duty on small pension schemes to show that they are providing value for money for members or, if not, to merge into something bigger. Has this been successful? How has it been evaluated? Can she say something about what the Government are doing about the barriers to consolidation? For example, what is the cost of legal advice and consultation with members to wind up a scheme and merge into something bigger? In small schemes, costs could be high relative to the gains from consolidation, so what are the Government doing about that?

We support the proposals and look forward to best-quality advice and higher transparency for members of the scheme. I look forward to the Minister’s response to the points that I have raised.

Senior Citizens: Means-tested Benefits

Debate between Baroness Janke and Baroness Stedman-Scott

Monday 23rd May 2022 Lords Chamber

[Baroness Stedman-Scott (Con)]

When the benefit uprating comes, based on the September figures for that year, the triple lock will be restored.

[Baroness Janke (LD)]

My Lords, what has been done to improve the application process for pension credit and make it simpler and more easily accessible to many pensioners, particularly those on their own and older pensioners who may not have easy and quick internet access?

[Baroness Stedman-Scott (Con)]

The noble Baroness’s question prompts me to go back and have a look at the application process. Perhaps I can come back to her on that. I am not sure that I can answer her other question about the internet, but I will go back and see what we are doing in particular to encourage and help people to claim via that.

Social Security System

Debate between Baroness Janke and Baroness Stedman-Scott

Tuesday 22nd March 2022 Lords Chamber

[Baroness Stedman-Scott (Con)]

These matters are discussed in all our ministerial meetings. I can confirm to the noble Baroness that I will redouble my efforts in the department to raise these issues. The Government want to do what we can to support people in these difficult times—please do not think that we do not want to.

[Baroness Janke (LD)]

My Lords, the report provides testimony from claimants that they are not always treated with respect by DWP staff. Will the Government introduce measures to improve the relationship between claimants and the DWP; for example, by providing a single point of contact or caseworker, including people with lived experience in staff training, and ensuring that staff understand the impact of disabilities, domestic abuse and racism on claimants?

[Baroness Stedman-Scott (Con)]

I am very disappointed to hear that there are claimants who feel they are not treated properly. I can confirm that the single point of contact—the one person—is the work coach. We have been expanding their role and training them to deal with the issues that the noble Baroness raises. We are giving them reasonable case loads and we are making sure that they address and help people with the dignity that they should receive. One of the most important points the noble Baroness made was on including first-hand experiences. It is in speaking to clients and spending time with them to find out how their experience has been that we are able to learn and make changes to the system.

Occupational Pension Schemes (Collective Money Purchase Schemes) Regulations 2022

Debate between Baroness Janke and Baroness Stedman-Scott

Wednesday 23rd February 2022 Grand Committee

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

My Lords, this statutory instrument will implement the authorisation and supervisory regime for collective money purchase schemes. These are commonly known as collective defined contribution, or CDC, pension schemes. These will be the first schemes of their type in the United Kingdom pensions market. A further statutory instrument, the Occupational Pension Schemes (Collective Money Purchase Schemes) (Modifications and Consequential and Miscellaneous Amendments) Regulations 2022, will be laid shortly to implement further consequential amendments required for existing pensions legislation to accommodate CDC schemes. These further regulations will be laid using the negative procedure.

Before I move on to the detail of this instrument, I will remind noble Lords of the purpose of this new type of pension. The United Kingdom pensions market we see today has been built around defined benefit schemes, where the employer underwrites the pension benefits paid to employees, or defined contribution schemes, where individual members bear all the investment and long-term risks and where there are no employer guarantees regarding what the member might receive at retirement.

CDC schemes provide an alternative approach in which member and employer contributions are pooled and invested with a view to delivering benefits at the level to which the scheme aspires. They offer potential benefits in economies of scale and the opportunity for greater investment in higher-returning assets than are usually associated with defined contribution occupational pension schemes. Their collective nature means that investment and longevity risks are shared across the whole membership, and as these schemes provide an income for pensioner members there is no need for members to make complex financial decisions at the point of retirement. The Government believe that this new type of pension provision will be more sustainable for employees and employers alike, and has the potential to offer better outcomes for pension scheme members.

I turn now to the statutory instrument itself. Noble Lords will appreciate that this is a necessarily detailed set of regulations. As a new type of pension scheme, it is critical that employees and employers can have confidence in CDC pension schemes. These regulations set out requirements for the process of applying for authorisation and further detail on the criteria that need to be met by CDC schemes in order for them to be authorised to operate.

The authorisation criteria include that the design of a CDC scheme must be sound and that it has sufficient financial resources to operate and deal with particular issues that may arise. There is also a requirement that only fit and proper persons are involved in particular capacities to do with making key decisions about the scheme. If the Pensions Regulator is not satisfied that all the authorisation criteria are met, it cannot authorise the scheme.

These regulations also set out requirements relating to the Pensions Regulator’s supervisory role. It can withdraw authorisation if it is no longer satisfied that the authorisation criteria are met. The regulations set out further detail on information to be provided to the regulator while the scheme is running, which will help it consider whether it is satisfied that the authorisation criteria for schemes continue to be met.

These regulations also provide more detail about the actions trustees must take if a scheme experiences a “triggering event”. These are certain events, set out in the primary legislation, that can pose a threat to the future of the scheme and the interests of members. If a triggering event occurs, the trustees must take certain actions or continuity options. A triggering event may lead to a scheme being wound up. Schedule 6 provides a detailed framework for winding up a scheme.

These regulations amend the Occupational and Personal Pension Schemes (Automatic Enrolment) Regulations 2010 to allow for an alternative automatic enrolment quality requirement for CDC schemes. They also amend the Occupational Pension Schemes (Charges and Governance) Regulations 2015 to implement an annual charge cap set at 0.75% of the value of the CDC fund, or an equivalent combination charge. Finally, they amend the chair’s statement requirements in the Occupational Pension Schemes (Scheme Administration) Regulations 1996 to reflect that CDC schemes will not have a default arrangement.

I now wish to acknowledge the considerable interest expressed in both Houses on CDC schemes during the passage of the Pension Schemes Act 2021. Many valuable contributions were made at that time regarding aspects of CDC schemes. A key concern was ensuring that CDC schemes treat their members fairly and, in particular, respect the interests of different generations. To help achieve this, Regulation 17 sets out requirements for CDC scheme rules to ensure that there is no difference in treatment when adjusting benefits between different cohorts or age groups of scheme members, or between members who are active, deferred or receiving a pension.

The importance of good communications to members of these new schemes was debated here and in the other place. Concerns were expressed that members should be given access to enough information to give them confidence to make informed decisions about their savings. Much of this is provided for in the negative regulations which have been published in draft and will be laid shortly. Alongside the regulations we are debating today, these will provide for transparency to allow for scrutiny of how a CDC scheme is operating.

The forthcoming negative regulations package will set out the disclosure requirements for scheme providers, with requirements to provide information relating to target benefits, including the actuarial valuation and a statement informing members and prospective members that benefits may be adjusted based on the actuarial valuation and are not guaranteed. CDC schemes will also be required to publish their scheme rules, including details of benefit design.

Debates on the Act also covered the powers of the Pensions Regulator to specify the requirements that should be met in respect of the financial sustainability of the scheme. Schedule 3 to the regulations sets out in detail the financial sustainability requirements for new 213CDC schemes, including the information required on application for authorisation and what the regulator must take account of in deciding whether it is satisfied that a CDC scheme has sufficient financial resources to meet the costs of establishing and operating the scheme, as well as sufficient resources to deal with the costs, as required by the Act, if a triggering event occurs.

Finally, concerns around the diversity of trustee boards, and what may be done to improve diversity, were raised during the passage of the Act. The Pensions Regulator has published a draft code of practice, which sets out that trustee boards should have policies on diversity and inclusion, including objective selection criteria, and that they should demonstrate that they have the ability to capture and monitor data on diversity and inclusion. I beg to move.

[Baroness Janke (LD)]

My Lords, I thank the Minister for her presentation, which was clear and to the point. I would like to raise two issues for consideration.

The first is the possibility of widening the scope for CDCs to smaller companies and how the Government view that. The current legislation has been written very much with Royal Mail in mind but if the CDC scheme goes well, others might want to follow suit, including smaller employers. But they would want to join something bigger; for example, a multi-employer or industry-wide CDC scheme or master trust CDC scheme. Will this require new primary legislation to allow multi-employer schemes, or does the Pension Schemes Act give the DWP sufficient power to do this? If it would require new secondary legislation, how long does the Minister think this might take? Does she share the view that multi-employer schemes are key to unlocking CDC? Not everyone has the resources or scale of the Royal Mail to do it for themselves. Please can she explain the process for multi-employer CDCs?

Secondly, can the Minister say something about retirement-only or decumulation CDCs and the position of the DWP on these? One of the discussions over the new pensions freedoms is that individuals take all the risk of managing a DC pot for themselves, including the longevity risk. In a pooled CDC retirement scheme, this is shared with others, so it is an attractive option for people to join at retirement. What is the scope for these and what is the position of the DWP on this? NEST has hinted that it might be prepared to look at it, but it would be helpful to know whether the Government look on these suggestions favourably. I look forward to the Minister’s response.

State Pension Underpayments and Arrears for Women

Debate between Baroness Janke and Baroness Stedman-Scott

Monday 21st February 2022 Lords Chamber

[Baroness Stedman-Scott (Con)]

My Lords, I have no idea about underpayments to men. In terms of underpayment to women, we are doing an exercise; we are going through the whole system to work out who should have had the money and we will get it to them as quickly as possible.

[Baroness Janke (LD)]

My Lords, the Government have explicitly ruled out divorced women from this exercise, yet divorced women’s pensions are really complex and the scope for error is huge. Does the Minister agree with me that to discriminate against divorced women in this way is indefensible? When will the Government act on this, as the Public Accounts Committee recommends, and put an end to such obvious injustice and discrimination?

[Baroness Stedman-Scott (Con)]

Even if somebody is divorced, their ex-husband’s contributions to NI will still be taken into account when deciding their pension award. That has always been the case and it will be the case on this.

Underpayment of Benefits: Compensation

Debate between Baroness Janke and Baroness Stedman-Scott

Tuesday 18th January 2022 Lords Chamber

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

I will go back to the department and check the first point that the noble Baroness raised. This situation is appalling and awful, and I apologise to all those affected on behalf of the Government and the department. I can confirm that Ms U has had a £7,500 compensation payment and a further payment of interest on the benefit arrears payment of £19,832. There is little more that I can say about her, other than that we have complied completely with the PHSO’s point.

On others affected—and I understand the depth of feeling on this—the department has a discretionary scheme that allows special payments to be made to customers to address any hardship or injustice caused by DWP maladministration. Consistent with other large-scale LEAP exercises, special payments under the DWP discretionary scheme will not routinely be made. There is no legal requirement to make special payments as the scheme is discretionary. However, as the Minister for Welfare Delivery said in the other place on Thursday, if anybody believes that they are a special case, they are quite free to make representation to the department.

[Baroness Janke (LD)]

My Lords, as has already been said, this woman has suffered appallingly through maladministration. The Minister did not really address the point about compensation, which the ombudsman’s report specifically asked the DWP to reconsider. Would she look at that again and perhaps come back to us on it? The report also points out that the DWP has put aside its own guidance in the remedy it is offering—so it does seem that the DWP needs to look at this report again.

The noble Baroness, Lady Sherlock, mentioned the very many others affected by these circumstances. Mention was made in the other place of the DWP not having had time to consider this report fully. Will the Minister take back the points we have made here and address in particular the point about compensation, and will she come back to us with a considered response from the DWP to the recommendations in the ombudsman’s report?

[Baroness Stedman-Scott (Con)]

I really thought that I had confirmed the situation about Ms U. She has had an unreserved apology. We made a £7,500 compensation payment. We paid the benefit arrears of £19,832.55 and gave money for interest. I think that I have been very clear about that. On the issue of compensation to others, again, it is a discretionary scheme, but I re-emphasise that if anybody believes that they have a special case, they can make representation. I think that clears the way.

State Pension Age

Debate between Baroness Janke and Baroness Stedman-Scott

Tuesday 18th January 2022 Lords Chamber

[Baroness Stedman-Scott (Con)]

I will not argue with logic; that would not get me anywhere. On the noble Lord’s point about the state pension age, I know that people are sceptical of government reviews, but I ask all noble Lords to approach it in a positive way, make their points—particularly the one raised by the noble Lord—and get them into the review.

[Baroness Janke (LD)]

My Lords, around 1.5 million low-paid workers pay a 25% penalty for their pension savings. When will the Government publish the outcome of their call for evidence on pensions tax administration to enable low-paid workers, who are typically women, to receive pensions tax relief on their contributions?

[Baroness Stedman-Scott (Con)]

Many noble Lords have made this point, including the noble Baroness, Lady Drake, and my noble friend Lady Altmann. The truth is that I do not know when they will do it, but I will go back and find out, and will write to the noble Baroness.

Sick Pay

Debate between Baroness Janke and Baroness Stedman-Scott

Monday 17th January 2022 Lords Chamber

[Baroness Stedman-Scott (Con)]

I completely agree with the noble Baroness that people should not be forced to go to work when they are sick, especially with Covid, given the danger of it spreading. I know it probably will not go down very well, but I can confirm that this is in train, and I am dreadfully sorry that I cannot say when it will be done. When I go back and talk to the department about the keenness and urgency of Lord Hendy, I shall certainly add that to the shopping list.

[Baroness Janke (LD)]

My Lords, could the noble Baroness tell us her response to the postcode lottery of the test and trace support payment, revealed in the CIPD report, where 75% of Camden applicants received payments but only 23% did so in Liverpool and just 16% in Sandwell? Could she comment on whether she thinks people in hard-pressed poorer areas are being doubly disadvantaged by the Government’s scheme?

[Baroness Stedman-Scott (Con)]

I can confirm to the noble Baroness that there is no intention on the Government’s part to penalise anybody for where they live. The noble Baroness has asked quite a detailed question and, if it is acceptable to her, I will go away and find out the answer and write to her with it.

Benefit Cap: Review

Debate between Baroness Janke and Baroness Stedman-Scott

Wednesday 3rd November 2021 Lords Chamber

[Baroness Stedman-Scott (Con)]

We understand there are around 190,000 households in both universal credit and housing benefit that were capped in May 2021—about 2.8%. There are some exemptions to the cap, as the noble Baroness well knows, and some grace periods. I will need to go back to the department to ask the question about the impact. I cannot answer it now, and rather than give a wrong answer, let me write to the noble Baroness.

[Baroness Janke (LD)]

My Lords, evidence to the House of Lords Economic Affairs Committee states that the benefit cap is putting abused women

“in situations where they may have no choice but to return to the abuser or take out payday loans.”

Is it not time that the Government took action to address the injustices of the benefit cap and its effect on hardship and poverty?

[Baroness Stedman-Scott (Con)]

As I said, the benefit cap will be reviewed at a time to be determined by the Secretary of State, but we have a range of measures designed to support people who flee abusive and violent households, as it is quite unacceptable that they should have to do this. We have provisions in housing benefit and universal credit, and I can assure the House that, where necessary, we arrange split payments for people in order for them to be able to maintain an independent life.

Social Security (Up-rating of Benefits) Bill

Debate between Baroness Janke and Baroness Stedman-Scott

Committee stage
Tuesday 26th October 2021 Lords Chamber

[Baroness Janke (LD)]

My Lords, I thank the noble Baroness, Lady Sherlock, for her amendments and for the information she has drawn to our attention. I share her concern at the lack of impact assessments of the proposed uplift on the most affected groups. The increasing pensioner poverty that we are all aware of and the poor take-up of pension credits, which are important as a passport to other benefits, are matters we are all extremely concerned about. I agree that pension increases are fast outstripped by rising costs, and I certainly fear a winter crisis, with increased energy prices and their effect on those who most need heat to keep their homes healthy and warm.

We heard from the noble Baroness, Lady Boycott, about how poor pensioners do not want to claim food —they do not want free food, they would rather starve than do that—and I believe that that is certainly an element in the uptake of pension credit. Again, we all worry that we are going to see more and more food banks and people unable to feed themselves as costs rise. The noble Baroness, Lady Drake, raised the whole issue of regional poverty and inequality. Certainly, when you look at the statistics across the regions, they are quite breath-taking. I believe we need much more information, as the noble Lord, Lord Davies, said, particularly about regional inequality. I wonder why we do not have this information when the Government have such a strong levelling-up agenda. How will they address these issues without adequate information on which to base decisions?

My amendment in this group highlights the unfairness experienced by many women as result of the pension gender gap. I will point out the current situation. The average pension pot for a woman aged 65 is one-fifth of that of a 65 year-old man. Women receive £29,000 less state pension than men over 20 years and this deficit is set to continue, closing by only 3% by 2060. Many women are wholly dependent on the state pension and as a result of this situation, we should take a particular interest in conducting impact assessments on the uprating of pensions on poverty. I support the measures proposed in this group and look forward to the Minister’s response.

[Baroness Stedman-Scott (Con)]

My Lords, I thank the noble Baronesses, Lady Sherlock, Lady Drake, Lady Boycott, Lady Altmann and Lady Janke, for raising important issues through these amendments and I reassure the Committee that we are committed to ensuring economic security at every stage of life, including when one reaches retirement.

On Amendments 5 and 8, tabled by the noble Baronesses, Lady Sherlock and Lady Janke, on publishing a poverty impact assessment, the department collects and publishes a wide range of data on income and poverty which are released annually in the reports in the households below average income series. Noble Lords raised the issue of pension credit take-up. Time does not allow me to go into the detail, but I undertake to have a further pension credit update when we can have more time to discuss and answer the questions that noble Lords wish to have answered.

In the absence of actual data, the only way to provide an assessment in advance of those dates would be to forecast and model how many pensioners might have their income lifted above the various low-income levels under an earnings uprating versus an inflation uprating. Assumptions would need to be made about how each individual pensioner’s income would change in future under each scenario. This would require making assumptions about, for example, how each pensioner might change their behaviour around other sources of income, such as drawdown of income from investments or a change in earnings, when faced with different amounts of state pension, which is virtually impossible to do.

Those projected incomes would then need to be compared with projections of the various income thresholds, which are themselves extremely uncertain. For absolute poverty, the threshold is increased each year by inflation; and for relative poverty, the threshold is determined by changes in median income across the whole population. Given the volatility in the economy and labour market, this is impossible to do accurately. There is a very high risk that any analysis seeking to forecast the number of pensioners moving above or below these projected poverty thresholds would be misleading due to uncertainty about both the economy and pensioners’ behaviour in response to various levels of state pension.

I turn to Amendment 6 and the specific request of the noble Baroness, Lady Sherlock, for a review of the impact of the Bill on mixed-age couples, and point to some practical concerns. Mixed-age couples in receipt of universal credit are a very small group, and data sources are limited. It is therefore not possible to identify these couples and analyse changes in health inequalities and homelessness for this group.

Further, the Government believe it is important for both individuals and wider society that people below state pension age remain in the labour market and continue saving for their own retirement. That is why, where a member of a couple is below state pension age and the couple are on a low income, support is provided through universal credit rather than pension credit. Providing support where it is needed through universal credit ensures that the same incentives to work and save for retirement apply to the younger partner in a mixed-age couple as apply to other people of the same age. Where the younger partner is unable to work because of disability or caring requirements, they may qualify for additional amounts and will not be subject to any work-related conditionality.

This approach is based on clear evidence about the importance of employment, particularly where it is full-time, in substantially reducing the risks of poverty and in improving long-term outcomes for families and children. In 2019-20, adults below state pension age in households where all adults were in work were six times less likely to be in absolute poverty, after housing costs, than adults in a household where nobody works.

As our economic recovery gathers pace and with vacancies at record levels, the focus of our expanded multi-billion-pound Plan for Jobs is helping people who can work to move into and to progress in work wherever possible. However, recognising that some people continue to require extra support this winter, we have announced the new household support fund.

On Amendment 7, tabled by the noble Baroness, Lady Sherlock, to publish an assessment of the impact of the Bill on those receiving the state pension, with reference to their ability to pay energy bills, energy prices are one of the factors built into the CPI measure, which is used in the assessment of annual uprating of benefits not covered by this Bill, such as personal independence payments and jobseeker’s allowance. In aggregate, where benefit rates are increased in line with CPI, the increases in those prices are reflected over time in the increases in benefit rates. The energy price cap will continue to protect millions of customers this winter, saving 15 million households up to £100 a year. Additionally, suppliers are prohibited from disconnecting customers of pensionable age between October and March, ensuring that pensioners have continuous supply during the coldest months.

I ask the noble Baroness, taking account of the points I have made, to withdraw her amendment.

--- Later in debate ---

[Baroness Janke (LD)]

My Lords, I support the triple lock and its effect of keeping the value of the state pension, which has been lost over very many years and has not yet recovered. I share the point made by the noble Baroness, Lady Sherlock, that we accept that these are special circumstances. The Minister has assured us that this is just for one year, so we take her at her word and will judge her on future actions next year.

[Baroness Stedman-Scott (Con)]

I assure the noble Baroness, Lady Sherlock, and the whole Committee, that the Government take the issues of living conditions and the standards of pensioners seriously. As I have relayed in previous contributions to this debate, we have done an enormous amount to try to help, but I have no doubt that that will not be enough for some. It is a work in progress, and we will see where that goes.

This clause requires the Secretary of State to review the rates of the basic state pension, the new state pension up to the full rate, the standard minimum guarantee in pension credit, and survivors’ benefits in industrial death benefit, by reference to the general level of prices in Great Britain. Under this clause, if the relevant benefit rates have not kept pace with the increase in prices, then the Secretary of State is required to increase them at least in line with that increase or by 2.5%—whichever is the higher.

This is a two-clause Bill. If the noble Lords, Lord Sikka and Lord Davies, and the noble Baroness, Lady Bennett, successfully oppose Clause 1, the Bill will fall and, as a result, these pension rates will be increased by 8.3%, which is the average weekly earnings index for the year May to July 2021. This means that, if the Bill does not achieve Royal Assent in good time, there will be an increased cost to the Exchequer of between £4 billion and £5 billion.

Taking into account the points raised, I ask the noble Lords to withdraw their opposition to the question that Clause 1 stand part of the Bill.

Child Poverty: Nuffield Foundation Review

Debate between Baroness Janke and Baroness Stedman-Scott

Tuesday 19th October 2021 Lords Chamber

[Baroness Stedman-Scott (Con)]

Yes, they have: they have had to take difficult decisions to stabilise the economy and build a welfare system that works for those who use it as well as those who pay for it. I can say only that I will meet the right reverend Prelate, and I am happy for the noble Baroness to join us. We will see what comes from that conversation.

[Baroness Janke (LD)]

My Lords, the children’s commissioners of Wales, Scotland and Northern Ireland state that the two-child limit is a clear breach of children’s human rights. Will the Government act on this, or continue to sweep aside widespread evidence that this vicious policy is increasing poverty and damaging children?

[Baroness Stedman-Scott (Con)]

I can add nothing to the answers I have already given. The Government have no plans to change the policy.

Social Security (Up-rating of Benefits) Bill

Debate between Baroness Janke and Baroness Stedman-Scott

2nd reading
Wednesday 13th October 2021 Lords Chamber

[Baroness Janke (LD)]

I have a question. First, the Minister mentioned Sir Steve Webb, a former Minister. He too has pointed out that, since the Commons discussed this issue, the circumstances have changed and the indicators are that price rises will be much higher—something that the Minister did not address when she replied on that part of the Bill. Secondly, could the Minister write to me and tell me why exactly this Bill must have its Third Reading by November?

[Baroness Stedman-Scott (Con)]

I thank the noble Baroness for pointing out the clarification on her previous colleague, Steve Webb. I will certainly write to her and, later, I will come on to the issue of gaining Royal Assent by November.

Let me turn to my noble friends Lord Freud and Lady Stroud. I thank my noble friend Lord Freud for the passion and knowledge with which he speaks. I pay tribute to his achievements as Minister for Welfare Reform. I must, however, reiterate that the Bill does not concern benefits linked to prices, such as universal credit—but thank God we had universal credit when the pandemic came. We will be for ever in the noble Lord’s debt for making that happen. If I may say so, we will also be for ever in the debt of Baroness Hollis for the challenge that she provided in that; we all miss her.

In answer to my noble friend’s question, making the uplift payment permanent would cost £6 billion; this is the equivalent of adding 1p to the basic rate of income tax, in addition to an increase of 3p in fuel duty.

I have been really pleased to engage with my noble friend Lady Stroud. We have worked together on many projects, and I have found our conversations really useful and helpful. I know that she has strong views on the universal credit uplift, and that dialogue will continue. As I said, the Bill is very short and not concerned with benefits—I do not say that to annoy people—so the Government would not encourage her to try to draw a false link between the two separate matters. Again, the universal credit uplift was always intended to be temporary.

Lastly, I remind noble Lords of the need for Royal Assent by 22 November. This will allow the Secretary of State to conduct a statutory review using the new powers in time for the DWP to meet its hard deadline of 26 November for reprogramming its computer systems, to ensure that the new rates of benefit and pensions are payable from April 2022. Any delay to this Royal Assent deadline will result in the review being completed under existing legislation committing the Government to uprate by at least 8.3%, which would not be fair to the current and future generations of taxpayers.

Cost of Living

Debate between Baroness Janke and Baroness Stedman-Scott

Tuesday 12th October 2021 Lords Chamber

[Baroness Stedman-Scott (Con)]

My Lords, the right reverend Prelate makes the very good point that at the time of Covid, the Government responded very well and made the terms of that response very clear. On the unintended consequences, I think I said in a previous answer that assessment of the universal credit uplift has not been made because it was a temporary change and facility, so we were not required to do that. I know that that answer will not please many people.

[Baroness Janke (LD)]

My Lords, circumstances have changed significantly in the past few months, as others have said. The Bank of England is predicting inflation of 4% for the fourth quarter of this year and above 4% for the first and second quarters of next year. Pressures such as those, the national insurance increase, the public sector pay freeze and rising food prices from energy costs all squeeze the poorest, so, in the light of them, does the Minister agree that the Government are gambling with family finances by ending the £20 uplift? If she does not, will she assure us that they will come forward with a comprehensive package to address those pressures, including reinstatement of the £20 uplift?

[Baroness Stedman-Scott (Con)]

The commitment I can give to the noble Baroness is that on a daily basis, these things are being assessed and discussed—they really are. I cannot give any other commitment, and I certainly cannot give any commitment that the £20 will be reinstated.

Pensions Regulator (Employer Resources Test) Regulations 2021

Debate between Baroness Janke and Baroness Stedman-Scott

Monday 6th September 2021 Grand Committee

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

My Lords, I am pleased to introduce this instrument, which was laid before the House on 28 June 2021. Subject to approval, these regulations provide essential details on the new employer resources test that was introduced by the Pension Schemes Act 2021 in connection with changes to the contribution notice regime.

The new employer resources test will enable the Pensions Regulator to overcome existing challenges of assessing the “act” or “failure to act” that has affected the financial strength of the sponsoring employer, and therefore its ability to support the scheme, rather than damaging the scheme directly.

These regulations outline that the profit before tax measure will be used to assess the resources of the employer. This measure is widely known and understood by the industry and gives the most appropriate picture of net profits available to provide support for a defined benefit pension scheme. The regulations set out specifically how the value of the resources of the employer is to be determined, calculated and verified.

I am satisfied that the provisions in the regulations are compatible with the European Convention on Human Rights.

Part 3 of the Pension Schemes Act 2021 strengthens the powers of the Pensions Regulator. It fulfils our manifesto commitment to take action against those who think they can plunder the pension savings of hard-working employees. These regulations provide essential details on the new employer resources test which forms part of the Pensions Regulator’s contribution notice regime. This regime enables the Pensions Regulator to demand that money is paid into a pension scheme from those found to have caused it detriment. A recent example is Dominic Chappell, who was ordered by the Pensions Regulator to pay £9.5 million into the British Home Stores pension scheme.

The new employer resources test, which these regulations relate to, will enable the Pensions Regulator to overcome existing challenges of assessing the “act” or “failure to act” that has affected the financial strength of the sponsoring employer and therefore its ability to support the scheme rather than damaging it directly.

With these new provisions, we will also avoid the associated challenge of having to project into the future to assess the likelihood of members receiving their accrued benefits. The purpose of the employer resources test is to provide the Pensions Regulator with a tool to make a simple snapshot assessment of the impact of the act or failure to act on the employer at the time. This allows for the act or failure to act to be assessed on its own terms, relative to the employer’s current potential exposure to the scheme, rather than an assessment of what could happen in future. Assessing whether the act or failure to act has reduced the value of the employer’s resources is just one part of the wider employer resources test. The Pensions Regulator, in addition to looking at the health of the employer, also has a focus on the scheme, where it is required to assess whether the reduction of the employer’s resources was material when compared to the scheme’s estimated Section 75 liability.

On the specifics of these regulations, what constitutes the resources of the employer is determined as being the employer’s profits before tax. This is a widely known and understood measure used by the industry and gives the most appropriate picture of net profits available to provide support for a defined benefit pension scheme. How the value of the resources of the employer are determined, calculated and verified are set out in these regulations. The general approach assesses the annual profit before tax position of the employer had the act or failure to act not occurred, which is then compared to an assessment including the act or failure to act. An adjustment is then applied to the profit before tax position that represents the impact which is expressed as a pound figure. The calculated figure would then be assessed against the scheme’s Section 75 debt immediately before the act or failure to act occurred. When the employer resources test has been met, the Pensions Regulator will follow the existing contribution notice process, whereby it will consider other factors, including the reasonableness of issuing a contribution notice.

Working in tandem with these regulations is the Pensions Regulator’s code of practice, which aims to provide further clarity to the industry on how it will interpret and use the powers. The Pensions Regulator launched a consultation in May 2021 on its contribution notice code of practice, which included clear examples covering scenarios of how the different tests would apply. The consultation concluded in July, and the Pensions Regulator is reviewing the responses with a view to publishing the code later in the year.

In closing, we remain committed to ensuring that there should be no hiding place for those who put workers’ retirement savings at risk, and these regulations will play a vital role in enhancing the Pensions Regulator’s ability to take action to protect pension scheme members. I commend this instrument to the Committee and beg to move.

[Baroness Janke (LD)]

My Lords, enabling the TPR to use contributory notices more widely to correct any detrimental action or failure to act is very welcome. However, I have a few questions about the method chosen for defining employer resources.

The Explanatory Memorandum refers to other methods being considered— EBITDA, or earnings before interest tax depreciation and amortisation, and a holistic measure based on covenant strength—but they were dismissed. Can the Minister explain why they were rejected, particularly the holistic assessment based on covenant strength? She will be aware that in very large university superannuation schemes, the level of contributions is affected by covenant strength. Can she explain why a snapshot of net income or profit before tax provides a better approach than this? If the snapshot route is to be followed for defining employer resources, what about the strength of employer assets? What part do they play in any assessment? I also question whether it is reasonable to allow the TPR absolute discretion in determining what are or are not exceptional or non-recurring items. I would welcome the Minister’s clarification on these points.

Occupational Pension Schemes (Administration, Investment, Charges and Governance) (Amendment) Regulations 2021

Debate between Baroness Janke and Baroness Stedman-Scott

Monday 6th September 2021 Grand Committee

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

My Lords, I am pleased to introduce this instrument, which was laid before this House on 21 June. Subject to approval, these regulations will continue the Government’s reform of occupational defined contribution—DC—pension schemes and prepare them for the opportunities that lie ahead.

With more than 10 million workers now saving for retirement in an occupational pension thanks to the success of automatic enrolment, we want these savers to achieve the best possible outcome in retirement. These regulations put improved member outcomes at the centre of the defined contribution occupational pensions market in the UK and ensure that the best interests of pension savers are driving the administration, governance and investment strategies of schemes.

By introducing a new “value for members” assessment for schemes with less than £100 million in assets and which have been operating for at least three years, we will ensure that members are not languishing in poorly governed and under-performing schemes. By requiring the trustees of certain occupational DC schemes to publish information on the performance of their investments for the first time, we will ensure that competition on overall member value replaces a narrow focus on cost.

By allowing occupational DC schemes to smooth performance fees over a multi-year period within the charge cap, we will make it easier for trustees of such schemes to pay higher fees for products where they have evidence that this will provide greater returns to members.

The Government are committed to building on the success of automatic enrolment with a consolidated, innovative, member-focused market for saving in occupational DC pension schemes. These regulations take significant action to this end. I am satisfied that the Occupational Pension Schemes (Administration, Investment, Charges and Governance) (Amendment) Regulations 2021 are compatible with the European Convention on Human Rights.

Occupational defined contribution schemes, or DC schemes, are the future of occupational pension saving. The Government are committed to ensuring that the DC market in this country can continue to grow and deliver the best possible outcomes for the millions of workers now saving in a DC scheme. These regulations take forward several measures which amend a number of existing sets of regulations. The first of these, which is made by Regulation 2 of this instrument, is the introduction of a new “value for members” assessment for occupational DC schemes with less than £100 million in assets. While there is currently more than £100 billion of pension savings in occupational DC schemes, this is split among more than 3,000 schemes. This system risks inefficiency and creating inequality. For example, some people, as a result of the scheme their employer chose, possibly years ago, may be getting a lower return on their savings, paying higher charges or having a worse customer experience, therefore limiting their engagement with their pension and outcomes in retirement. We aim to change this.

That is why this instrument amends the Occupational Pension Schemes (Scheme Administration) Regulations 1996 to require trustees of relevant schemes, a term which covers most occupational DC schemes, with less than £100 million in assets and which have been in existence for at least three years to conduct an annual assessment of the value that the scheme offers to its members. The regulations specify the criteria that must form part of this assessment. They include the quality of the scheme’s record-keeping, the promptness and accuracy of administration and the extent to which existing requirements in the Pensions Act 2004 concerning trustees’ knowledge and understanding are being met.

However, the most important aspect of this assessment is the comparison between the scheme’s net investment returns, ie the performance of its investments less costs and charges, relative to three larger schemes. Larger schemes are likely to be better governed and to achieve greater investment returns than a smaller scheme with limited expertise, capacity and budget. We expect that the majority of schemes will not perform favourably in this test.

Regulation 3 of this instrument requires schemes to report to the Pensions Regulator the outcome of this “value for members” assessment. If schemes in scope determine that they do not offer value for members, Regulation 3 of the Register of Occupational and Personal Pension Schemes Regulations is amended by these regulations to require such schemes to inform the Pensions Regulator of whether they intend to wind up the scheme or to explain the reasons for not doing so and the immediate improvements that will be put in place. These measures will encourage a quicker pace of consolidation in the occupational DC pension schemes market and help members who are stuck in schemes that are delivering sub-optimal retirement outcomes for them. Scheme consolidation is a priority for DWP so that members are able to benefit from the economies of scale and access to a diverse range of asset classes that larger schemes bring.

The other measures in this instrument aim to broaden the range of asset classes available to occupational DC schemes. At present, occupational DC schemes are primarily invested in traditional assets such as listed equities and bonds. Only a small number of the largest schemes are accessing so-called illiquid assets, such as infrastructure, property, private credit and private equity. These illiquid assets have the potential both to diversify an investment portfolio and deliver greater returns. As a result, Regulation 2 of this instrument amends Regulation 23 of the Occupational Pension Schemes (Scheme Administration) Regulations 1996 to require occupational DC schemes to report, for the first time, the return on investments after deduction of any charges or transaction costs, known as net investment returns. We believe that members deserve to know how their investments are performing and how they fare relative to other schemes.

This will also catalyse competition between pension providers not just on cost but on overall value. Employers, consultants and members should be able to assess a scheme based on this metric, and competition should incentivise trustees of occupational DC schemes to explore illiquid assets and other innovative investment strategies. This is essential given that net investment returns have a much greater effect on retirement outcomes than whether a scheme charges its members 0.3% or 0.4%.

Both these measures, the new “value for members” assessment and net investment returns reporting, have been introduced alongside statutory guidance entitled Completing the Annual Value for Members Assessment and Reporting of Net Investment Returns, which will help trustees of schemes that are in scope to meet these requirements.

Finally, this instrument makes additional changes to regulations to improve governance of occupational DC schemes. All occupational pension schemes will be required to report on the total assets of the scheme annually to the Pensions Regulator at the scheme year end.

The changes to regulations in this instrument will also require schemes to produce costs and charges illustrations for all funds and not just those currently available. They will exempt wholly insured schemes from some governance requirements and ensure that occupational DC schemes “with a promise”—a small number of schemes that contain a commitment to members—report on their statement of investment principles to those members.

In conclusion, the measures in this instrument offer opportunities to improve member outcomes and help prepare the occupational pensions market for the challenges that lie ahead. I therefore commend the instrument to the Committee and beg to move.

[Baroness Janke (LD)]

My Lords, we certainly agree with the policy aims and mechanisms of this instrument and endorse the Government’s actions to make sure that

“members do not languish in sub-optimal arrangements that do not meet governance requirements and are unable to take full use of investment opportunities, to the benefit of the end saver’s eventual retirement outcome”,

as the Explanatory Memorandum states.

As the Minister has said, paragraph 7.6 of the Explanatory Memorandum explains that Regulation 2 requires that schemes holding assets worth less than £100 million and which have been operating for three or more years are to compare charges, transaction costs and the return on investments with three other schemes. We are not clear how those schemes are to be selected and who is to select them. Is it the trustees, for example? Are there selection criteria other than that they have assets of more than £100 million and are personal pension schemes? If it is not the trustees, who selects the comparator schemes?

Paragraph 7.8 states:

“Where the trustees have reported that the scheme does not provide good value for members, they are also required to report whether they propose to wind up the scheme and transfer the members’ rights into another scheme or explain to TPR why … not … and what improvements they are planning to make.”


What happens if these improvements are not acceptable to the Pensions Regulator and what powers does the regulator have based on compliance or non-compliance with Regulation 3?

We would probably all agree that it is a good idea to encourage smaller funds to transfer rights or improve if Regulation 2 comparisons show poor performance, but what about larger funds? Should there not be a requirement for them to undertake the same comparisons and take the same actions if their schemes show poor value for money for their members? It is easy to see why small funds should be encouraged in this way but hard to see why larger firms are not similarly encouraged. I would welcome the Minister’s clarification on these points.

Covid-19: Work-related Cases

Debate between Baroness Janke and Baroness Stedman-Scott

Monday 5th July 2021 Lords Chamber

[Baroness Stedman-Scott (Con)]

The Health and Safety Executive guidance, with advice from the Government Legal Department, does not exclude the reporting of cases of workers whose job involves dealing with the public. RIDDOR places a duty to report on the employer, and they must make a judgment based on the information they have. The Health and Safety Executive has never publicly stated that Regulation 9(b) or its supporting guidance has been misapplied.

[Baroness Janke (LD) [V]]

Does the Minister recognise that the severe cuts to the HSE have led to fewer inspections and, as a result, more underreporting? What plan do the Government have to reinstate the HSE budget?

[Baroness Stedman-Scott (Con)]

I am pleased to say that the Health and Safety Executive has had additional funding throughout the year along with enormous staff increases. This will continue to be worked on, and the HSE and the DWP continue to review and revise the resourcing arrangements as necessary.

Armed Forces: Transition to Civilian Life

Debate between Baroness Janke and Baroness Stedman-Scott

Tuesday 15th June 2021 Lords Chamber

[Baroness Janke (LD) [V]]

Can the noble Baroness say what specific support is provided for families—particularly children—of members of our Armed Forces to enable their transition, given that many of them will have spent time in different schools and different locations and may find it difficult to transition after their families leave the services?

[Baroness Stedman-Scott (Con)]

The effect on children living in different parts of the country and the world, and the number of schools they have attended, is well known. It is for the MoD to carry out this activity in its resettlement programme. I will ask my friends in the Ministry of Defence to write to the noble Baroness with more detail.

Unemployment: Over-50s

Debate between Baroness Janke and Baroness Stedman-Scott

Tuesday 9th March 2021 Lords Chamber

[Baroness Stedman-Scott (Con)]

To help and support carers to remain in work or return to work, we have been working with employer organisations, the CIPD, the British Chambers of Commerce and LEPs to host a series of webinars, with content delivered by the business champion for older workers. We absolutely agree with the noble Baroness about the role that carers play. We want flexibility from employers, flexibility in hours and flexibility in the roles that those people can provide.

[Baroness Janke (LD) [V]]

My Lords, older workers have valuable experience and life skills but are twice as likely as younger workers to be out of work for 12 months or more. What opportunities for financially supported training and education will the Government make available to this age group to enable them to develop their skills and, if necessary, change their career paths?

[Baroness Stedman-Scott (Con)]

Again, the noble Baroness makes an important point about the value that older workers can add to the workforce. The UK Government are investing £2.5 billion in the national skills fund to aid the lifetime skills guarantee. This is a great opportunity for older workers.

Pension Credit

Debate between Baroness Janke and Baroness Stedman-Scott

Monday 8th March 2021 Lords Chamber

[Baroness Stedman-Scott (Con)]

On the last point that the noble Baroness raises, I am happy to go back and find out the information. I will write to her and place a copy of my letter in the Library. I emphasise that our meeting with stakeholders in early May will include energy companies. I will certainly take her idea back to the department.

[Baroness Janke (LD) [V]]

Does the Minister believe that take-up campaigns fully involve local agencies, such as the charitable and voluntary sector and more particularly local government, which provide many essential services for older people? What plans are there for further involvement of such local agencies in future take-up campaigns?

[Baroness Stedman-Scott (Con)]

I reiterate that we continue to make best use of all the available channels to make sure that we can reach those people and confirm to them their eligibility, particularly family and friends. I am not aware at the moment of anybody making a suggestion about local agencies, but through our stakeholder engagement we have certainly raised this point. I will take back the local government issue to the department.

Covid-19: Universal Credit

Debate between Baroness Janke and Baroness Stedman-Scott

Tuesday 2nd March 2021 Lords Chamber

[Baroness Stedman-Scott (Con)]

Legacy benefits and the £20 uplift have been the subject of lengthy and great discussions in the department. To be absolutely straight and truthful, the only thing I can say is that the Government have no plans to extend the temporary £20 uplift. I know that that will be a disappointment.

[Baroness Janke (LD) [V]]

My Lords, further to the question of the noble Baroness, Lady Primarolo, I draw to the Minister’s attention the fact that many people still on legacy benefits have had their finances hit hard by the pandemic. The need to reduce health risks, such as by taking taxis to appointments to avoid public transport, purchasing more PPE for those with respiratory conditions and using more heating to reduce the risk of complications from Covid-19 all incur high costs. In previous questions, we have heard that the costs of disability and sickness are considerable, particularly to people who have little at the moment and are on legacy benefits. I know that the Minister has answered by saying that the Government have no commitment to add the £20 uplift to legacy benefits, but will she commit to looking into the circumstances of people on legacy benefits and their carers—disabled people, particularly—to see what action can be taken to improve their circumstances?

[Baroness Stedman-Scott (Con)]

I give an assurance to the noble Baroness that I will speak to her in more depth about the points she raises. Once I have done that, I will of course go back to the department and talk to those there.

Commonwealth Countries: Reciprocal Pension Agreements

Debate between Baroness Janke and Baroness Stedman-Scott

Monday 1st March 2021 Lords Chamber

[Baroness Stedman-Scott (Con)]

The noble Lord is as impatient as ever, and so are we, to resolve this issue. The Government received a request from Canada in November 2020 to conclude a reciprocal agreement to include indexation of pensions. We will be responding shortly.

[Baroness Janke (LD) [V]]

My Lords, people with frozen pensions have often lived abroad for more than 15 years and have also lost their vote. Is it not time that the Government restore democratic rights to these citizens, many of whom still pay their taxes in the UK?

[Baroness Stedman-Scott (Con)]

The decision to move abroad is voluntary and a personal choice dependent on the circumstances of the individual. For many years now, advice has been provided on the GOV.UK website that the UK state pension is not uprated overseas, except where there is a legal requirement to do so.

Covid-19: Youth Unemployment

Debate between Baroness Janke and Baroness Stedman-Scott

Tuesday 2nd February 2021 Lords Chamber

[Baroness Janke (LD) [V]]

My Lords, businesses in the creative, media and digital industries are typically very small and do not have the resources to support apprentices, internships and work experience. What plans do the Government have to support and enable these businesses to provide skills, training and experience to young people in this essential area?

[Baroness Stedman-Scott (Con)]

The creative industries are very important to our economy. I was in a meeting only yesterday with some people who are very significant in the industry and they told us about the number of jobs they need to fill, which is quite significant. We were talking about getting people skilled, not just in the big cities but across the board, so that we can meet our levelling-up agenda. This is another thing that we are focusing on.

Extreme Poverty

Debate between Baroness Janke and Baroness Stedman-Scott

Tuesday 15th December 2020 Lords Chamber

[Baroness Stedman-Scott (Con)]

I am pleased that the noble Lord recognises that being in good, well-paid work is a good route out of poverty. On collective bargaining, I will need to come back to the noble Lord in writing.

[Baroness Janke (LD) [V]]

The noble Baroness will be aware that many people in poverty and destitution do not have access to computers. They are often deprived of support and advice as well as crucial referrals to such services as food banks. Often, they do not pick up DWP instructions, and they end up being sanctioned through no fault of their own, adding further insult to injury. What plans do the Government have to bridge the digital divide and ensure access for the poorest and most deprived to such essential services?

[Baroness Stedman-Scott (Con)]

The noble Baroness raises a really important point. As we move to more online activity, access to technology will be critical for people to get the information they need. I can confirm that our department is looking at how we can increase digital access as part of the work the Secretary of State is conducting across government on the cost of living. Indeed, this is one of the things the flexible support fund exists to help with. When people see their work coach and explain their difficulties with access to IT, the flexible support fund can help.

Supporting Disadvantaged Families

Debate between Baroness Janke and Baroness Stedman-Scott

Thursday 12th November 2020 Lords Chamber

[Baroness Janke (LD) [V]]

Local authorities are to receive £160 million, to be added to the previous sum of £63 million which was distributed earlier in the year. This is to be paid as a one-off government grant. I would like to understand more about the basis of these measures. What consultations have taken place with local government and what were their outcomes?

The issue of conditionality was raised. How is that to be achieved and demonstrated? Are there to be target numbers of families or children? Are levels of participation to be measured, or perhaps there are measures of improved well-being that are to be reported upon?

What exactly is the basis of these sums of money? We are told that funding will be dispersed according to an authority’s population, weighted by a function of the English indices of multiple deprivation, so presumably we are looking at a sum per head. Can the noble Baroness say how much per head and for how many people?

Does the noble Baroness feel confident about the number of families that are to be helped, given that local authorities have had financial cuts of £16 million over the last 10 years and that their capacity is significantly reduced? Many important services for disadvantaged families no longer exist in many areas, such as family support schemes and community facilities such as libraries, sports and recreation, and local health promotion, and many of those may be required to implement the scheme. Does the noble Baroness feel that the sums of money here will be enough to achieve the objectives she describes in the Statement?

The noble Baroness talked about the importance of nutritious food. Has any financial assessment been made of the cost of providing this to the numbers involved? If so, it would be good to see it. The Food Foundation has established that, to pay for the Government-recommended “eatwell plates”, people on universal credit would need to spend around two-thirds of their non-housing income on food. It would help to understand the analysis that underpins these measures.

We all welcome the expansion of holiday activities for disadvantaged children. Can the Minister clarify how these children are to be identified? Who is eligible for these provisions? Existing criteria exclude many children, particularly in low-paid working families. We have welcomed the temporary measures that have been introduced during the current crisis. Can the Minister assure the House that these will remain in place?

We welcome the £16 million for charities to help those struggling to afford food, but surely this is no more than a sticking plaster. We must ensure that families’ income is sufficient so that they can afford to provide nutritious food for themselves and their children. Removing the benefit cap and the three-child limit would help. If the Government do not intend to do that, what longer-term policies are being considered to ensure that families and children will no longer have to depend on short-term fixes and will have enough income to provide their own food and care for their families without depending on charities?

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

My Lords, I will respond first to the points raised by the noble Baronesses, Lady Sherlock, and then cover the points from the noble Baroness, Lady Janke. I am sorry that the audio of the noble Baroness, Lady Janke, was not at all good. If I do not answer all her questions, I will go through Hansard tomorrow and make sure that she receives a written answer.

I am grateful that both noble Baronesses welcomed the Statement. Let me say right at the start that the Government much admire Marcus Rashford’s passion and commitment and are proud to have provided this invaluable support. I note the hopes of the noble Baroness, Lady Sherlock, for Marcus Rashford’s next campaign.

She also mentioned the comments about parents who use their benefits for purposes other than we would wish. We do not associate ourselves with those remarks. We are only too aware and appreciative of the difficult circumstances in which some parents find themselves at the moment. We are delighted that the hospitality industry came into its own and are glad that it was in a position to give extra help.

I am well aware that earlier at Questions, the noble Baroness was underwhelmed by my response about legacy benefits. I will try to be a little more helpful. Back in March, when there were no arrangements such as the furlough in place, UC had to take the strain until those schemes came online. The Government were trying to cushion those who had had a fall in income because they were made unemployed, or their earnings dropped, due to Covid-19. They were not trying to provide a general uplift in benefits. Those who were newly signed on to universal credit did so because they had seen a significant drop in their income, whereas those on legacy benefits had not seen the same fall.

Moving on to what we have done, we have announced a £170 million Covid winter grant scheme, to make sure that families get the help they need. We are giving this to councils because they are best placed to understand their communities. They know the most vulnerable children and families who need this money. As the noble Baroness, Lady Janke, said, this is being done on a per-head-of-population basis, according to the deprivation indices.

We are also investing £220 million more than existing funding allocated to the programme. This will mean that children eligible for free school meals will have the option to join a holiday time programme that provides healthy food and funds activities during the summer, Christmas and Easter holidays. I am afraid I am not able to comment on more than that timeframe. I will write to the noble Baroness about why the Healthy Start payments will not start until April 2021.

On the holiday activities and food programme, much has been said about the speed at which it has been introduced and whether it was a reaction, but I will say that we have been piloting this initiative and trying to work out how best to deliver it. This was not a knee-jerk response or something we thought we had better get on and do; it was something we piloted and tested. We made sure that, when we announced it, we knew that it would work. Since the summer, 50,000 children have benefited from the holiday activities and food fund, and a further 2,500 additional breakfast clubs have been started.

Will all children in England be eligible for a place on a HAFF programme? The programme will make free places available to children eligible for free school meals in their local authority for a minimum of four hours a day, four days a week, six weeks a year. This will cover four weeks in the summer and a week’s worth of provision in each of the Easter and Christmas holidays. As I have said before, local authorities have the flexibility to decide how to do this and how to use the money.

As I expected and I understand, there has been a call for the £20 uplift to be extended to legacy benefits, and I have been very clear about the Government’ position on this. The noble Baroness, Lady Sherlock, raised the issues of the savings threshold, the two-child limit, the benefit cap and advances into grants. I have made clear that the Government do not have any plans at the moment to change those things, and, as my Secretary of State said in the other place,

“advances are actual grants to people—they are just the phasing of universal credit payments over the year”—

and they are repayable within a year—

“and soon to be over two years if that is what claimants want.”—[Official Report, Commons, 9/11/20; col. 642.]

We are listening and extending the time.

Where we have been doing the local pilots, there has been extensive discussion on interfacing with local authorities. I understand that the Government have written to all the chief executives of the local authorities, and, at this stage in the proceedings, the announcement and commitment have gone down very well. I am afraid I cannot tell the noble Baroness, Lady Janke, how much it is per head because it will be up to local authorities to say where the money goes and spend it most effectively.

Understandably, the noble Baroness, Lady Janke, raised the point about local authorities and underfunding. We are giving councils unprecedented support during the pandemic: a package of £6.4 billion so far. We recognise that there will be individual councils with unique circumstances, and we encourage them to approach MHCLG to discuss their future financial position.

Before I close this part of the questioning, I will make the point that Covid has certainly made life very difficult for people—nobody is trying to ignore that—but, underlying this, we believe that parents are responsible for their children. It is not the state’s job to take that responsibility, other than in these very difficult times, where we are trying to do everything we can. One of the areas I have responsibility for is the Child Maintenance Service. You would not believe the extent to which people try to get out of their responsibilities to pay for their children. We are working very hard to get this money back. As it stands, there are 130,000 children who are owed £381.3 million, and I am doing everything I can to get that money to children because it would make a huge difference to their lives.

Universal Credit

Debate between Baroness Janke and Baroness Stedman-Scott

Thursday 12th November 2020 Lords Chamber

[Baroness Stedman-Scott (Con)]

The noble Lord acknowledges the significant increase in universal credit claimants, and I understand the importance of the issues he raises. He also acknowledged the key people at the DWP, not least Neil Couling and the whole executive team that works with him, who have done a sterling job and will continue to do so.

[Baroness Janke (LD) [V]]

I, like other noble Lords, welcome the retention of the £20 a week increase, which will indeed help many people. However, is the Minister aware of the report by the charity Scope on disability and the coronavirus, which found that many disabled people are feeling forgotten and experiencing isolation, a lack of access to basic essentials, delays in receiving benefits and medical care, and poor access to care and support? Will she assure us that the Government will meet with disability charities to ensure that all people with disabilities, and their families, receive the care and support they need during the coronavirus? Will she report back to Parliament on this?

[Baroness Stedman-Scott (Con)]

The noble Baroness is absolutely right to raise the issue of disabled people and the challenges they face. The noble Baroness will also know that my natural way of working is to agree to these things and to report back. The only thing I can offer her today is that I will talk to the Minister for Disabled People and let him know what it is she would like to do. I will report back to her.

Pension Credit

Debate between Baroness Janke and Baroness Stedman-Scott

Monday 26th October 2020 Lords Chamber

[Baroness Stedman-Scott (Con)]

The noble Baroness makes the point that there are, I think, 1.1 million people who could have pension credit if they made a claim and were eligible. I know of no plans at the moment to uprate the other benefit to which the noble Baroness referred, but I will go away and find out and respond to her in writing.

[Baroness Janke (LD) [V]]

Does the noble Baroness agree that many pensioners who do not claim pension credit feel stigma and shame in submitting to means testing? If so, will the Government consider revisiting auto-enrolment, to ensure that the poorest pensioners receive their full entitlement to financial support?

[Baroness Stedman-Scott (Con)]

The noble Baroness raises a very important point about the reasons why people do not claim pension credit. Some believe that they are not eligible; others think that they have too many savings; others think that there is a stigma to it; and others think that they might get only a small amount, so it is just not worth the effort. The noble Baroness raises valid points about the vulnerable; we must do all we can to make sure that those people are aware of pension credit and that they make a claim where appropriate.

Youth Unemployment

Debate between Baroness Janke and Baroness Stedman-Scott

Thursday 15th October 2020 Lords Chamber

[Baroness Stedman-Scott (Con)]

I thank the noble Baroness for that constructive idea; I will certainly take it back to the department. However, we are holding what are almost local job summits around the country and people are working closely in geographical areas to achieve exactly what she challenges us to achieve.

[Baroness Janke (LD) [V]]

Sixteen to 24 year-olds suffer discrimination through universal credit in that they do not receive the full amount. What steps will the Minister take to ensure that these young people receive a fair, realistic and just entitlement under universal credit so that they can meet their essential living costs and support themselves in seeking new work?

[Baroness Stedman-Scott (Con)]

On young people on universal credit receiving help to get work, I say that we do not compartmentalise any age groups. We are doubling the number of work coaches and we have the job finding support service. We have a £150 million support fund that can be used flexibly to meet the needs of people going into work. The support that young people will get will be second to none and we will turn every stone to get them into work. The noble Baroness will know that lots is being said about universal credit at the moment. I will not add to that but it is being looked at all the time to see how we can make life better for people.

Pension Scams

Debate between Baroness Janke and Baroness Stedman-Scott

Wednesday 14th October 2020 Lords Chamber

[Baroness Janke (LD) [V]]

What plans do the Government have to improve support for victims of pension scams? The measures outlined in the report are criticised as inadequate. Can the Minister say what the Government plan to do about it?

[Baroness Stedman-Scott (Con)]

I apologise to the noble Baroness; I had trouble hearing her question. Perhaps I may read Hansard and write to her directly with a reply.

Children Living in Poverty

Debate between Baroness Janke and Baroness Stedman-Scott

Wednesday 15th July 2020 Lords Chamber

[Baroness Janke (LD) [V]]

My Lords, in her first reply the noble Baroness referred to children in two-parent families. I point out that many of the working poor are single parents and that half the children in one-parent families are in poverty. They are doubly disadvantaged. What are the Government doing to ensure that these children’s futures are not blighted by the scourge of poverty in their early years?

[Baroness Stedman-Scott]

In my original Answer, I said it was very clear that people in work have a much better opportunity not to be in poverty. The noble Baroness raises the issue of lone parents, who have enormous issues to overcome. The Government are doing everything they can to make sure that people are supported, and the best route out of poverty for this group is to be in work.

Universal Credit: Court of Appeal Judgment

Debate between Baroness Janke and Baroness Stedman-Scott

Monday 29th June 2020 Lords Chamber

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

I can advise the noble Baroness that, during our consideration of the outcome of the court’s verdict, we will consider any necessary retrospective payments.

[Baroness Janke (LD) [V]]

Will the Minister confirm that as many as 85,000 claimants are affected by this judgment? Will she confirm that the Government will publish an action list, detailing when and how the claimants affected by this ruling will cease to be subject to these wild fluctuations in income? Will she also undertake to look into the support available to people in arrears with their rent, or suffering from other financial penalties, as a result of this “irrational and unlawful” action, to use the words of the judge who delivered the verdict, Lady Justice Rose?

[Baroness Stedman-Scott [V]]

I am pleased to say that the figure of 85,000 that the noble Baroness refers to is not one that resonates with us. We believe that the number of people impacted by this judgment is in the region of 1,000. We are assessing the situation. We got the judgment only on Monday, but we will keep the House fully up to date with decisions made in relation to it.

Covid-19: Child Poverty

Debate between Baroness Janke and Baroness Stedman-Scott

Monday 15th June 2020 Lords Chamber

[Baroness Stedman-Scott [V]]

I am aware of the letter and the Trussell Trust figures the noble Baroness refers to, but we have put more money into helping with food poverty, as I have said before. We had an all-Peers briefing about universal credit at which the two-child limit and benefit cap were talked about at great length. I am sorry that I cannot add anything to that at the moment.

[Baroness Janke (LD) [V]]

Half the total number of children in one-parent families are in poverty; the pandemic is disproportionately affecting these families. What specific measures will the Government take to improve the circumstances of these doubly disadvantaged children?

[Baroness Stedman-Scott [V]]

My Lords, our current focus is on supporting people financially through these unprecedented times. We are actively reviewing all measures at our disposal to identify how we can best support the economic recovery and ensure that the best possible employment support is in place. We will continue to look at these things. We understand the impact on single parents and lone parents, and I assure the House that the Government are doing everything they can at the moment to help in these difficult times.

Universal Credit

Debate between Baroness Janke and Baroness Stedman-Scott

Tuesday 2nd June 2020 Lords Chamber

[Baroness Stedman-Scott]

Non-repayable advances cannot be implemented without significant changes to the system; this is not currently our policy intent. Funding to do it would be needed from the Treasury, costing an estimated £2 billion to £2.7 billion. With an advance, there are 13 payments over a year instead of 12, and as of next year the period over which advances have to be repaid will be extended from 12 months to 24 months.

[Baroness Janke (LD)]

People who are suddenly faced with zero income are unable either to wait five weeks for funds or to repay an advance by receiving lower payments, as required by universal credit. Will the Government consider providing an additional dedicated hardship fund via local authorities to provide immediate relief for people in urgent need?

[Baroness Stedman-Scott]

The issue of a local hardship fund has been raised and there is a recommendation for it to be put in place. I am afraid that we will have to wait for the outcome of those deliberations.

Unemployment: Support

Debate between Baroness Janke and Baroness Stedman-Scott

Thursday 21st May 2020 Lords Chamber

[Baroness Stedman-Scott]

As it stands, the Government are not going to change the benefit cap, but it will be reviewed at some point. The noble Baroness’s point about people’s circumstances in terms of loss of income and not being able to move house is a very fair one; I thank her for raising it and I will take it back to the department. Tomorrow we have the all-Peers briefing with the Minister for Welfare Delivery, and I urge the noble Baroness to raise this point yet again.

[Baroness Janke (LD)]

What will the Government do to address the needs of under-25s and care leavers who find themselves on zero income and are currently treated unfairly under universal credit?

[Baroness Stedman-Scott]

The issue of care leavers is very important. We are providing a range of support. I am not aware of any changes to our position on universal credit regarding them, but I will take the matter back to the department and write to the noble Baroness.

Universal Credit

Debate between Baroness Janke and Baroness Stedman-Scott

Wednesday 13th May 2020 Lords Chamber

[Baroness Stedman-Scott]

I draw the noble Baroness’s attention to the fact that, in a repeated Oral Statement and at Oral Questions, the Secretary of State was absolutely clear that this benefit will not be changed. I agree with her that things are very difficult at the moment. That is why we have tried to be as flexible as we can by introducing this £7 billion package which gets to the people who are in the most difficult group, removing the minimum income floor, increasing UC, pausing deductions for historic debts, introducing statutory sick pay from day one and increasing working tax credits from over £1,000 to £3,000. I cannot give her any other answer than that, but I can make a commitment to take her question back to the department and again ask what she and others would like me to ask.

[Baroness Janke (LD)]

Is the Minister aware that 85% of those who have had benefits capped are single parents, many of whom have lost jobs through the current crisis? To ease the severe hardship these families are suffering, will the Government at least consider suspending the benefits cap pending a future review?

[Baroness Stedman-Scott]

The benefit cap is reviewed once in every Parliament. The Secretary of State will do this, although I cannot tell noble Lords when. Until that happens, I am not aware of any intention or plan by the Government to remove the cap.

Household Income

Debate between Baroness Janke and Baroness Stedman-Scott

Tuesday 10th March 2020 Lords Chamber

[Baroness Stedman-Scott]

Suicide is a terrible thing in any circumstances. We have all been reminded recently of its impact on various groups in our society. I can tell the noble Baroness and the whole House that the administration of universal credit is reviewed on a daily basis. We have a terrific director, Neil Couling, who looks after the system, and I know for a fact that he is trying to do everything he can to simplify the process without losing the administrative needs within it.

[Baroness Janke (LD)]

My Lords, does the noble Baroness accept that automatic sanctions cause huge stress not only to unemployed people but to working families who are on benefits? What assurances can she give that work coaches will be given sufficient flexibility to take into account the often appalling and tragic circumstances that lead to this action, and will she reassure those families that they will be listened to?

[Baroness Stedman-Scott]

I can assure the noble Baroness and the House that our work coaches receive regular training and development in respect of sanctions, and that sanctions are a last resort. Recent changes have been made to the length of sanctions and they will be used only when absolutely necessary.

Universal Credit

Debate between Baroness Janke and Baroness Stedman-Scott

Monday 2nd March 2020 Lords Chamber

[Baroness Stedman-Scott]

Like all noble Lords in the House, I am only too well aware of the size of the problem of homelessness and people sleeping on the streets. I normally agree with the noble Lord, and I do agree that universal credit may have added to some people’s anxiety and their issues. Many of them have had issues for a long time that we have not done what we should have done to deal with—but I do not think they are 100% attributable to universal credit.

[Baroness Janke (LD)]

My Lords, is the Minister aware that a large body of evidence supports the case that benefits sanctions have a devastating effect on claimants’ mental health and could even result in suicides? In the light of last week’s report in the Lancet, when will the Government conduct a comprehensive assessment of the impact of benefits sanctions on claimants, as the DWP pledged to do in 2013?

[Baroness Stedman-Scott]

I have read the report in the Lancet, and the Government’s response is that we have no concerns surrounding the general thrust of the methodology. However, it is difficult, in that it says it would not have caused the issue but would have contributed to it—a point I tried to make in answering the prior question. I am not aware of the commitment the Government made then, but that will be down to me, not them. However, if the noble Baroness agrees, I will go back to the department, get an answer to that question and write to her.

Bereavement Services

Debate between Baroness Janke and Baroness Stedman-Scott

Thursday 13th February 2020 Lords Chamber

[Baroness Janke (LD)]

My Lords, the noble Baroness mentioned the charity Cruse Bereavement Care. Is she aware that in October 2019, Cruse commissioned research from YouGov about people’s experiences on being bereaved? Some 44% described their experiences as time-consuming, 39% stressful, 30% upsetting, 24% complicated and 16% traumatic. In the light of this and the experience of my noble friend Lady Ludford, will the Minister commit to taking a lead on addressing the needs of bereaved people? Will she provide some form of practical support for Cruse, a charity with very limited resources, in its campaign to treat bereaved customers first?

[Baroness Stedman-Scott]

I thank the noble Baroness for reminding us of those statistics, which should give us cause for concern. I have already pledged to go with the noble Baroness, Lady Ludford, to talk to Cruse; we will take up the points that the noble Baroness raised.

Universal Credit

Debate between Baroness Janke and Baroness Stedman-Scott

Tuesday 4th February 2020 Lords Chamber

[Baroness Janke (LD)]

My Lords, I do not know whether Ministers are aware, but Macmillan Cancer Support has observed that the five-week wait is preventing cancer patients taking up their entitlement to universal credit. It is not that they would not have a loan—of course they would—but, as a result of their circumstances, they do not have the savings and resources to pay the money back when they have to. People lose a lot of money when they have cancer. They would like to know what the Government will do to look into the causes of this delay, what they will do to look into the five-week wait, what evidence they will provide us of the need for it, and what analysis has been done on the rollout of the universal credit managed migration period altogether. I would be grateful for her answers.

[Baroness Stedman-Scott]

I accept that people with cancer have enough on their minds without having fiscal worries. If the noble Baroness could give me the details of someone at Macmillan, the best I can do is invite them to the department to have a full and frank discussion about the issues. We will incorporate the remaining questions that she raised. All I can say again and again is that the department is reviewing these matters daily. I know that it cannot come quick enough for people, but we are listening and really researching the points the noble Baroness made, which are valid.

Low-income Families: Benefits Freeze

Debate between Baroness Janke and Baroness Stedman-Scott

Monday 13th January 2020 Lords Chamber

[Baroness Stedman-Scott]

My noble friend makes a point about tax credits. While I have no doubt that they did a lot of good, some of their ramifications caused difficulty, in that we had an annual rather than a monthly reconciliation, as we are trying to have under universal credit. I believe that the monthly reconciliation under universal credit, while not perfect, is much better than waiting until the end of the year. On child poverty and family breakdown, obviously there are families who have great difficulty fiscally, and we have to try to help them, but the evidence shows that helping parents to move into and remain in work is the best option for moving them out of poverty. We want to see child poverty fall and remain determined to tackle it. My door is open for further discussion on this; I will do anything I can to move things forward.

[Baroness Janke (LD)]

My Lords, is the Minister aware that in August 2018, two-thirds of those who had benefits cut were single parents? Single parents in the bottom 20% income bracket will have lost 25% of their 2010 income by 2021-22. Ending the benefit freeze will not restore this, and half of the total number in single- parent families are in poverty. Does the noble Baroness agree that children in single-parent families are doubly disadvantaged as a result of government policies? What plans do the Government have to end this glaring injustice and to ensure that these children get a fair deal?

[Baroness Stedman-Scott]

Again, I understand the points that the noble Baroness makes. We can all recall incidents in our families—I can in my own; my niece is a single parent, and life is a challenge at the best of times. The benefit cap levels were put in place to try to restore some fairness to the system. Due to the election taking place, the levels were not reviewed in the last Parliament, but there remains a statutory duty to look at them, which will be done at an appropriate time.