Household Support Fund: Children’s Bed Poverty

Baroness Ritchie of Downpatrick Excerpts

Thursday 21st March 2024 Lords Chamber

[Viscount Younger of Leckie (Con)]

The Government have kept the household support fund under review, as with all such schemes. Given the changing circumstances, including falling inflation, it was important to consider this in the round as part of the Spring Budget. The right reverend Prelate will know that this is now the fifth household support fund scheme and, following their experience of previous schemes, we know that local authorities and their partners are well placed to deliver support to those in need in particular areas.

[Baroness Ritchie of Downpatrick (Lab)]

My Lords, the Work and Pensions Select Committee in the other place has just published a report into benefit levels, clearly carried out on the basis of the evidence submitted, which showed that claimants are often not able to afford daily living costs and extra costs associated with having a health condition or disability. In view of those findings, will the Minister talk with his ministerial colleagues in the DWP and ensure a review of benefits and welfare based on the essential principle of need, which includes the operating of benefits commensurate with that level of need in our wider community, including the household support fund?

[Viscount Younger of Leckie (Con)]

Of course I will take that point back, but the noble Baroness will be aware that much thought and work is going into this area. In terms of targeted support locally, she will know that the Government have delivered a balanced package of funding through the local government finance settlement for this coming year, 2024-25, which makes available up to £64.7 billion for local authorities in England to target in the right place. I reassure her that this targets the deprived areas of England, particularly the upper decile of the index of multiple deprivation, and they will receive 18% more per dwelling in available resource than the least deprived areas.

Universal Credit

Baroness Ritchie of Downpatrick Excerpts

Thursday 7th December 2023 Lords Chamber

[Viscount Younger of Leckie (Con)]

I take note of the point raised by my noble friend. I am not able to comment directly on that, but I will take his points back to the Treasury.

[Baroness Ritchie of Downpatrick (Lab)]

My Lords, will the Minister give due consideration, along with his ministerial colleagues in government, for the need to reform the social security system to ensure that poverty, particularly food poverty and child poverty, is put at the centre of any new policy, to ensure that there is an elimination over the next number of years?

[Viscount Younger of Leckie (Con)]

Indeed, the noble Baroness is right that poverty is incredibly important. Absolute poverty is the Government’s preferred measure, as the poverty line is fixed in real terms. There is some debate over how one defines poverty; we are very alert to that, particularly in the field of child poverty. We take it very seriously, and although there is not time to go through all the measures we are taking, it is very important that as many children as possible—all children—are taken out of poverty.

State Pension Underpayment Errors

Baroness Ritchie of Downpatrick Excerpts

Tuesday 16th May 2023 Lords Chamber

[Viscount Younger of Leckie (Con)]

Allow me to look into that and provide an answer to the noble Lord. I think it is normally the case that the money goes back to the Treasury but, without knowing here, I do not want to stick my neck out on it.

[Baroness Ritchie of Downpatrick (Lab)]

My Lords, could the Minister indicate what corrective action will be taken to address the needs of the WASPI women, who have been underpaid for many years and are not entitled to their pensions from the age of 60?

[Viscount Younger of Leckie (Con)]

I am aware, as we all are, of the WASPI issue. The noble Baroness will be aware of the judicial review against the PHSO. We are aware of it, but I am unable to comment because of the judicial review.

Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2021

Baroness Ritchie of Downpatrick Excerpts

Thursday 25th February 2021 Lords Chamber

[Baroness Ritchie of Downpatrick (Non-Afl) [V]]

My Lords, I would also like to thank the Minister for introducing these regulations and it is a pleasure to follow my noble friend Lord Foulkes. Like him, I am also a member of the Common Frameworks Scrutiny Committee, and he raised two particular issues to do with Northern Ireland. As a former Minister with responsibility for benefits in Northern Ireland, I recall working with the Labour Government, and particularly the noble Lord, Lord McKenzie, in relation to the Pensions Act 2008. There is similar legislation in Northern Ireland, but Northern Ireland has always introduced its own social security legislation—that goes back to the date of partition, I think, in 1921.

I support this statutory instrument because I believe it provides an element of fairness and I support the principle of auto-enrolment. I suggest to the Minister that it could be built upon. It is worth noting that Age UK found that 1.9 million pensioners are still living in poverty in the UK. That means that over a quarter of pensioners, despite having worked all their lives, paid their taxes and contributed to our economy, are now living their later years facing more challenging decisions than they necessarily should; wondering whether they can afford to turn the heating on or pay their bills and watching how every penny is spent.

Returning to this statutory instrument and the general issue of auto-enrolment, I have several questions for the Minister. At this time of the pandemic, could she indicate what work has been undertaken about the impact of Covid-19 on workplace pensions? If so, could the Minister share those findings, any assessments and recommendations for the future with your Lordship’s House? Workplace pensions are important because almost 19 million are now involved in such schemes. What consideration have the Government given to putting money aside in a government savings scheme as a top-up to workplace pensions? I noted that the Minister in the other place, Guy Opperman, seemed to refer to the possibility of that in a debate on pensions on 10 December. Is that going to happen?

In many ways, furlough has probably meant that a lot of employees have retained their roles and pension contributions have had to continue as part of furlough. Is there a figure or an estimated figure for the UK in relation to this?

The fallout for pensions will become known only when we have a clearer picture of the impact on jobs. Some local pension experts in Northern Ireland have told me that there has not been a surge in people opting out during this period because of the government support schemes. A bigger worry would be those in the self-employed category—the noble Baroness, Lady McIntosh of Pickering, referred to this. I believe there has been a trend of owners of small to medium-sized businesses suspending or reducing their own contributions to protect cash flow within their business. What further protections and assurances can be provided for them to ensure that their pensions and entitlements do not collapse?

Universal Credit (Transitional Provisions) (Claimants previously entitled to a severe disability premium) Amendment Regulations 2021

Baroness Ritchie of Downpatrick Excerpts

Thursday 11th February 2021 Lords Chamber

[Baroness Ritchie of Downpatrick (Non-Afl) [V]]

My Lords, it is a pleasure to follow the noble Viscount, Lord Chandos. I congratulate the noble Baroness, Lady Sherlock, on her regret Motion and particularly on its content. I support that Motion because I am of the view that these new measures will result in claimants who are in receipt of the severe disability premium on legacy benefits moving on to universal credit without ensuring that they will all be fully compensated for the loss of the premium. That is the fear of many of the disabled organisations, as well as of Marie Curie, which has supplied many of us with a briefing paper on this particular issue.

When universal credit was introduced, I was a Member in the other place and opposed it at that particular stage. I saw and viewed it as a benefit measure that would heap further misery on people and push individuals towards food banks. With the pandemic, that has become a greater reality, and permanent financial measures are now required to help people who are increasingly in financial need.

As other noble Lords have referred to, it is worthy of note that the House of Lords Secondary Legislation Scrutiny Committee drew attention to the erosion rules, stating that:

“The Explanatory Memorandum did not make clear that these transitional payments will erode over time”.


I note that the Government revised those to include further information at the request of that committee. In addition, this committee noted the widening

“eligibility to the transitional SDP element to both ex-partners after a couple receiving SDP separate”,

and observed that the Department for Work and Pensions had estimated

“that this eligibility change will benefit a few hundred claimants overall.”

It is worthy of note that Disability Rights UK stated that, from October 2020, these transitional payments were no longer ring-fenced and separate from other universal credit elements. Under the new rules they were classed as a “transitional element” only. In such circumstances, a claimant will not, in fact, receive an increase. Disability Rights UK has stated that the new regulations will mean that,

“after transitional help is eroded after time, UC for disabled people will be significantly less generous than ESA and the other legacy benefits it has replaced.”

Marie Curie, which provides such strong support for cancer sufferers, believes that everyone nearing the end of their life should have the financial support they need for a decent quality of life. No one should spend the end of their life facing poverty or material deprivation. Marie Curie has particular concerns regarding the move to universal credit for people with terminal illness who live alone without a carer, and the impact that the loss of severe disability premium will have on that group. In that regard, will the Minister provide assurance that the disability Green Paper planned for publication this spring will review the financial support available to disabled people living alone and without a carer to look after them? What discussions have the Government had with the Ministry of Housing, Communities and Local Government to ensure that any new claimants for universal credit who would have been entitled to SDP under the legacy benefits scheme are able to afford all the care and support they need and are not left more socially isolated by the abolition of this component?

In summary, I support the regret Motion. I urge the Minister, as I urged her yesterday, to urge her colleague to undertake a root and branch policy review of the social security system to ensure that it is fit for the needs of this era, with all the accompanying problems that have been challenging us with the pandemic.

Social Security Benefits Up-rating Order 2021

Baroness Ritchie of Downpatrick Excerpts

Wednesday 10th February 2021 Grand Committee

[Baroness Ritchie of Downpatrick (Non-Afl) [V]]

My Lords, I thank the Minister for her explanation of the regulations. I accept that the Government have a statutory duty to review the rates of social security benefits annually. However, given the ongoing consequences of the pandemic, the rise in the levels of people unemployed and the growing number of people accessing food banks, there is a need for a root-and-branch review of social security and welfare policy.

We should be focused on the principles of the needs of the population. During various debates on social security matters in your Lordships’ House, I have raised this viewpoint. There needs to be a review through the lens of whether people have adequate or inadequate levels of income to live on, taking in poverty levels, the growing need for access to food banks and rising levels of fuel poverty. Like the noble Lord, Lord Dodds, I agree that the uplift in universal credit needs to be retained. It should also have been applied to legacy benefits. The very fact that it was introduced by the Government, albeit temporarily basis, surely pinpointed the need to uplift benefits and to have a complete review. I ask the Minister a simple question: when will the Government undertake this root-and-branch policy review of social security and welfare legislation to bring benefit to people, based solely on income and the needs of each individual in the UK?

Supporting Disadvantaged Families

Baroness Ritchie of Downpatrick Excerpts

Thursday 12th November 2020 Lords Chamber

[Baroness Stedman-Scott (Con)]

I can appreciate the noble Lord’s commitment to his three boys and the difficulties with their care caused by Covid. We have done as much as we possibly can to make sure that childcare stays in place, even paying for places when nurseries have been closed. As for enabling parents to look after their children, and not having to choose between earning money and not going to work, I think most employers have been very considerate about these circumstances and have been as flexible as they can. In relation to computers for schools and the disruption to education, the noble Lord’s point is very well made. I will ask my colleague in the DfE to write to him specifically about computers.

[Baroness Ritchie of Downpatrick (Non-Afl) [V]]

My Lords, while welcoming the contents of the Statement, I have to say that I agree with the right reverend Prelate the Bishop of Durham that there needs to be a child poverty commission. The Statement clearly highlights that there has been such a deficit in welfare and child welfare policy. Will the Minister talk to her Secretary of State to ensure that discussions get under way about an immediate review of welfare policy in light of the pandemic?

Secondly, could she provide an estimate of what amount of money under the Barnett consequentials or Covid winter grant scheme—£16 billion has been allocated to the devolved Administrations—has actually been allocated to Northern Ireland? Will she further ensure that that money is dedicated to disadvantaged families and does not go into the central pot of the Department of Finance?

[Baroness Stedman-Scott (Con)]

I will go back and speak to my Secretary of State about the points the noble Baroness raises. I cannot make any commitment further than that. As the noble Baroness says, £16 billion is given to the devolved Administrations to allow them to plan. Last week, in the Chancellor’s Statement, there was a recognition that, through the Barnett formula, every time we do certain different policies, the devolved Administrations want to do additional things. We have a mature relationship with the devolved Administrations. They have been set a guaranteed amount of funding, and I assure the noble Baroness that there is still more room in terms of Barnett consequentials. The Chancellor was right to make the decision he did, and I am glad she welcomes it.

Pension Protection Fund (Moratorium and Arrangements and Reconstructions for Companies in Financial Difficulty) (Amendment and Revocation) Regulations 2020

Baroness Ritchie of Downpatrick Excerpts

Wednesday 21st October 2020 Lords Chamber

[Baroness Ritchie of Downpatrick (Non-Afl) [V]]

My Lords, I thank the Minister for the explanation of the regulations. My understanding is that they extend the Pension Protection Fund’s rights as a creditor when co-operative and community benefit societies have a moratorium in place to protect them from creditor action.

My first question for the Minister relates to community benefit societies. The Pension Protection Fund is UK-wide and therefore applies to Northern Ireland, credit unions being a type of community benefit society operating there. There are two types of credit unions but the one that is widespread and of which I am most aware is the Irish League of Credit Unions, which operates in two jurisdictions. Given that it is headquartered in Dublin, would it benefit from the rights outlined in the regulations? Maybe the Minister could write to me if she did not have the answer to hand.

I take note of the remarks of the noble Baroness, Lady Altmann, when she said that the Pension Protection Fund, set up by statute in 2004, exist to protect people and provide compensation when required. As a former Minister for Benefits and Welfare in Northern Ireland, I am fully aware that we have a system there of parity with London, particularly on social security and pension issues.

The Northern Ireland Assembly and the Executive bring forward their own legislation which is exactly the same as that which exists in London. In fact, these regulations were enacted back in August. Can the Minister say what discussions have taken place with the Northern Ireland Executive on the potential impact of these regulations, taking into consideration that the pandemic will perhaps result in some insolvencies? Many people have already lost their jobs, so this is really about the ability of the Pension Protection Fund to discharge its responsibilities, particularly in a place such as Northern Ireland which does not have the inbuilt financial capacity and resilience to do that. That is particularly the case when confronted with an issue such as the pandemic, which brings its own financial pressures.

The issue of financial resilience was raised in the other place, so on a more general basis, I will ask the Minister this: is the Pension Protection Fund resilient enough? Other noble Lords who have already spoken have referred to that. Does it have the necessary resources to address the extraordinary potential problems that could ensue around insolvencies as a result of the pandemic? What measures will be taken to ensure that the fund is ready and capable of absorbing what could be potentially thousands more pension scheme members who will require security over the coming year? Perhaps the Minister could advise me in writing about what meetings have taken place between the Department for Work and Pensions and the Pension Protection Fund to review its performance.

Covid-19: Over-60s

Baroness Ritchie of Downpatrick Excerpts

Monday 12th October 2020 Lords Chamber

[Baroness Stedman-Scott (Con)]

I am pleased to be able to confirm to the noble Baroness and indeed to the whole House that, since late March, the Health and Safety Executive has had an extra £14 million in its budget. It has carried out a programme of interventions to check how businesses are implementing measures to reduce the transmission of Covid. Concerns are acted on quickly, and the HSE decides on what kind of enforcement there has to be.

[Baroness Ritchie of Downpatrick (Non-Afl) [V]]

My Lords, for the avoidance of doubt, will the Minister redouble efforts with colleagues to correct the pension injustice done to the WASPI women, which has been exacerbated by the Covid issues of this year, and ensure fair transitional arrangements for all women born in the 1950s who are affected by these pension changes?

[Baroness Stedman-Scott (Con)]

I understand the noble Baroness’s concern. However, both the High Court and the Court of Appeal have supported the actions of the DWP and, because that is being appealed, we are not able to comment on ongoing litigation.

Pension Protection Fund (Moratorium and Arrangements and Reconstructions for Companies in Financial Difficulty) Regulations 2020

Baroness Ritchie of Downpatrick Excerpts

Monday 14th September 2020 Grand Committee

[Baroness Ritchie of Downpatrick (Non-Afl) [V]]

My Lords, I thank the Minister for providing a detailed explanation of this statutory instrument, the details of which I welcome because they will act as a measure of protection for members who work for companies in financial difficulty which face restructuring.

It is important to remember that companies and those who work for them are not working in normal times. There is the Covid pandemic and the uncertainty around a possible no-deal Brexit, the news last week of a run on the pound and the potential impact of the United Kingdom Internal Market Bill on markets and businesses. References to the Chancellor’s potential raid on the coffers and reserves of businesses that pay for Covid financial measures can also precipitate further anxiety in the marketplace. Many companies have been the bulwark of our economy, as well as their employees, in both the public and the private sector.

As the Minister has explained, and was also explained by the noble Baroness, Lady Drake, these regulations will enable the Pension Protection Fund to participate in key decisions in the process by enabling it to exercise creditor rights that would otherwise be exercisable by the scheme trustees or managers. It provides compensation for eligible pension scheme members whose employer has become insolvent and cannot meet the scheme’s liabilities. I understand that it will be funded mainly by a levy collected from pension schemes.

In considering the impact and legislative effect of these regulations under the Corporate Insolvency and Governance Act, I have some questions for the Minister. Does she think that there will be sufficient money within those pension schemes to pay for a scheme’s liabilities? When the compensation is in payment, could it increase in such insolvency circumstances? If I am an employee, what happens if my scheme is potentially eligible for that but is facing all these difficulties as a result of insolvency? Will it be possible, in such circumstances, for the employee to contribute during the assessment period? Does the assessment period operate in such different circumstances? Is it possible to define the potential costs of such schemes? Will they reduce, bearing in mind that many people have left defined pension schemes? Will that categorisation apply in circumstances to do with restructuring and insolvency? What impact will that have on the Pension Protection Fund in its work with companies? Finally, what other benefits, including social security, are those pension scheme members eligible for if their employers have become insolvent and cannot meet the scheme’s liabilities other than those that may be provided for under the Pension Protection Fund?