Families with Children: Accommodation
Debate between Baroness Scott of Bybrook and Baroness Altmann(1 year, 6 months ago)
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Baroness Scott of Bybrook (Con)
The noble Baroness brings forward a very interesting point, but I am not aware of any work that has been done on that issue. I will certainly go back to the department and ask whether any has been done by either the department or the Treasury; I will write to the noble Baroness.
Baroness Altmann (Con)
My Lords, following on from the earlier question, will my noble friend the Minister look into the issue of councils being able to buy housing that can then be offered for social rent to the clearly increasing number of people who need housing and are unable to find it? Will my noble friend also consider, with the Treasury, the opportunity for pension schemes to take over such properties and rent them out on social housing rents, which deliver a reliable income? In that way, we could also address some of the housing problems.
Baroness Scott of Bybrook (Con)
The issue of local authorities buying houses is already being dealt with through the £500 million for local authorities that was agreed by the Treasury around six months ago. As far as pension schemes are concerned, that is an interesting issue. It has been discussed many times before. I will take it back and discuss it again.
Leasehold Enfranchisement
Debate between Baroness Scott of Bybrook and Baroness Altmann(1 year, 7 months ago)
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Baroness Scott of Bybrook (Con)
The noble Earl brings up a very interesting point. Commonhold, as he knows, allows home owners to own the freehold of a unit, such as a flat, within buildings and it is commonplace in places such as Australia, New Zealand, the US and Canada. Unlike leasehold, commonhold does not run out, there is no third-party landlord and owners are in control of the costs and decisions affecting the management of their buildings. Commonhold was introduced in this country in 2002, but for some reason it has not taken off and, as the noble Earl says, there are currently fewer than 20 commonhold developments. In 2020, the Law Commission recommended reforms to reinvigorate commonhold as an alternative to leasehold ownership, and the Government are looking at this and will respond in due course.
Baroness Altmann (Con)
Would my noble friend agree that, with the shortage of leasehold properties and the extensive number of good landlords that there are across the country, it is important, when we have the new legislation, to ensure that not only are tenants protected—because of course, rightly, they must have protection in their own homes—but we are careful about the balance around putting too much burden on landlords to the extent that we may drive good ones out of the market? I declare my interests as set in the register.
Baroness Scott of Bybrook (Con)
My noble friend is absolutely right: this is a balance. There are a lot of exceptionally good landlords in this country, but there are a few that are not good—in fact, you could probably call them rogue. It is important that whatever legislation we put through gets that balance right, protecting tenants and good landlords but ensuring that we get rid of those rogue landlords.
Housing: Cost of Living
Debate between Baroness Scott of Bybrook and Baroness Altmann(2 years ago)
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Baroness Scott of Bybrook (Con)
I cannot say exactly when, but it remains the top priority for this Government, as I have mentioned many times before. We will bring forward that important legislation as soon as we can within this Parliament.
Baroness Altmann (Con)
My Lords, looking to the longer term, it is clear that there is a shortage of housing across the economy, particularly social housing. We have trillions invested in pension funds. Rather than the leveraged LDI products, would it not be sensible for the Government to facilitate and encourage more investment by pension funds in social housing, which can deliver a reliable income as well as benefiting the housing supply over the longer term?
Baroness Scott of Bybrook (Con)
My noble friend brings up a very interesting point. I have looked at that in the past from a local authority point of view. I will certainly take that point back and would like to talk to her more about it.
Outsourcing: DWP Telephone Services
Debate between Baroness Scott of Bybrook and Baroness Altmann
Baroness Scott of Bybrook (Con)
No—nothing below the performance indicators is acceptable. That is why we continually challenge the delivery of all our systems.
Baroness Altmann (Con)
My Lords, clearly the lack of training seems to have led to many claimants receiving incorrect answers when, for example, querying their state pension. Could my noble friend explain to the House whether the department has done any mystery shopping of its externally sourced claim lines, and what happens if suppliers do not meet their key performance indicators?
Baroness Scott of Bybrook (Con)
My noble friend brings up the very important issue of training. All staff working for outsourced companies get the same training as DWP, and they will continue to get that. If they are looking after particularly vulnerable clients at any time then they will get specialist training. As for mystery shopping, yes we do: the DWP continues all the time to check out those call lines and make sure that they are being regularly performance managed.
Pensions: Gender Gap
Debate between Baroness Scott of Bybrook and Baroness Altmann
Baroness Altmann
To ask Her Majesty’s Government what plans they have to narrow the gender pensions gap; and what assessment they have made of (1) the under- payments of state pensions to married women, and (2) the reduced private pension contributions associated with female work patterns, in the development of those plans.
Baroness Scott of Bybrook (Con)
This Government recognise the challenge of the gender pensions gap resulting from historical differences in labour market participation. Through automatic enrolment and the new state pension, we are enabling more women to build up pension provisions in their own right, reducing historical inequalities in the pensions system. We are fully committed to addressing the historical state pension errors and ensuring that the individuals affected receive the state pension they are rightfully due in law.
Baroness Altmann (Con)
I thank my noble friend for her Answer but, given the gender pensions gap of 40%, which Prospect says has not improved over five years, what specific workstream is there with targets for reducing the number of women with lower state and private pensions and for publishing up-to-date numbers—including for women in multiple part-time jobs, who are excluded from the state pension and auto-enrolment and lose out in net pay schemes, category D pensions and pension credit? Secondly, can my noble friend explain why married women did not receive automatic state pension uplifts after 2008? Will she agree to meet to discuss improving women’s pensions?
Child Trust Funds: Children with Learning Disabilities
Debate between Baroness Scott of Bybrook and Baroness Altmann
Baroness Scott of Bybrook (Con)
I am not going to make a promise of extra time, but I can say that the working group has now been put together involving the MoJ, the Treasury, the DWP, the charities and the Court of Protection to make sure that all the accessibility issues are sorted out, that it is a much more streamlined process and that it will not cost the parents any money.
Baroness Altmann (Con)
My Lords, I am delighted that the Government have established a working party and congratulate them on the decision about the fee remission. However, with the numbers involved here, there could be 25,000 court cases a year on this issue over the next eight years or so, with Covid delays and capacity issues at court. Given that these parents are trusted by the Department for Work and Pensions to manage their child’s benefits, would it not make sense to ask the department to take seriously the suggestion of my noble friend Lord Young of Cookham to use an established procedure?
Baroness Scott of Bybrook (Con)
We absolutely will and are looking at my noble friend Lord Young’s ideas and, as I say, the DWP has just joined the working party, which is starting straight away and will report back to the Minister in early January. We are not stopping on that but looking at the best way of dealing with these issues.
Pension Protection Fund (Moratorium and Arrangements and Reconstructions for Companies in Financial Difficulty) Regulations 2020
Debate between Baroness Scott of Bybrook and Baroness Altmann(4 years, 3 months ago)
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Baroness Altmann (Con)
My Lords, I thank my noble friend the Minister for laying these amendments and for the excellent way in which she introduced them. I also support the amendments and believe that many of the points made by the noble Baroness, Lady Drake, are particularly relevant. It is clearly important that the Pension Protection Fund has some recognition—or as much as possible, if you like—in the new environment that has created the moratorium and various super-priorities. It is important that the Pension Protection Fund retains creditor rights where it can to avoid gaming of the fund, which otherwise could be overwhelmed with extra liabilities that are picked up by other pension schemes.
I agree with my noble friend that it is important to ensure that these regulations are able to act in the interests of the Pension Protection Fund and to balance that against the need to preserve functioning and ongoing sponsors during the current emergency. Can my noble friend help the Committee understand what powers this grants to the Pension Protection Fund? I recognise, and we discussed through the passage of the Corporate Insolvency and Governance Act, that there is a limit on the power of the Pension Protection Fund. I appreciate the Government’s amendments, which have introduced some representation, but, for example, if trustees, as was suggested by the noble Baroness, Lady Drake, prefer to approve a high-risk restructuring strategy but the board of the Pension Protection Fund believes the risk is too high and would result in higher costs to it when the company fails—as the board believes would be most likely given the balance of risks that that restructuring would entail—would it have the power to override the trustees and to refuse to agree the proposed course of action and, ultimately, ensure that the company fails sooner rather than later, or would that not be within its powers under the new system?
Equally, if the management of the company wishes to try to sell assets that have already been pledged to the pension scheme and apply to a court to permit this—I understand the corporate insolvency Act permits the authorisation of the sale of such assets and the PPF must be informed or consulted—does the PPF have powers to protect itself against such a transaction on which the funding of that defined benefit scheme had previously been based? What representations might it be able to make in the court environment? Does it have the power to demand detailed information or to conduct its own investigations into the financial position of the company when it is aiming to restructure or undertake some asset sales? Does the Pension Protection Fund have the power to investigate the impact of any loans or other restructuring agreed in a moratorium that might be beneficial to favoured lenders or, ultimately, to the owners of the company, who might end up taking over a restructured operation, having jettisoned the pension fund to the detriment of the funding of the pension scheme when it goes into the PPF?
How do the Government plan to deal with schemes when banks or other lenders to a company during a moratorium attempt to leapfrog ahead of the pension scheme on insolvency, should that occur. At what stage does the Pension Protection Fund have any power to prevent this happening or to be able to intervene to represent its interests if it believes such loans are suspect or may be intended to game the PPF? I have given prior notice of these questions to my noble friend and was grateful to hear that Ministers have some ability to override some of the potential risks to pension scheme members and to other pension scheme members.
I know that it is important to make sure that the Pension Protection Fund—
Pension Schemes Bill [HL]
Debate between Baroness Scott of Bybrook and Baroness AltmannWednesday 4th March 2020
(4 years, 9 months ago)
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Baroness Altmann
I echo that praise for the Pension Protection Fund. It has been a marvellous success story and has rescued so many people. It is run efficiently and with care for those who claim on it. I cannot praise it highly enough.
Baroness Scott of Bybrook (Con)
My Lords, let me begin by thanking the noble Lords, Lord Balfe and Lord Sharkey, and the noble Baroness, Lady Altmann, for this amendment. I believe that the intention is to improve member protection in the event of employer insolvency. The amendment would remove the Pension Protection Fund compensation cap currently applied to payments for members who were under their scheme’s normal pension age when their employer became insolvent.
It might be helpful if I first explain that the Pension Protection Fund is a compensation scheme and, as such, was never intended to meet the full pension promise made to every member of a failed scheme. Members over their scheme’s normal pension age and those who were in receipt of survivors’ benefits or an ill-health pension broadly receive full protection. Everyone else receives broadly 90% of their scheme benefits, subject to an overall cap. This means that the cap applies to early retirees as well as deferred members, ensuring that Pension Protection Fund compensation is calculated on the same basis for members of the same age in the same scheme.
It is worth mentioning that the Government are defending the cap before the domestic courts. Their position in this litigation, and current policy, is that the cap meets important objectives and should be retained. First, the cap helps to give greater protection to those who have reached their scheme’s normal retirement age at the time of employer insolvency. These members are likely to have fewer opportunities to supplement their income in other ways. Secondly, the cap helps to control the costs of the fund—costs that may otherwise fall on levy payers. Finally, as we have heard, the cap is intended to encourage people with influence over the schemes to fund them responsibly and to discourage excessive risk-taking. Key decision-makers have an incentive to ensure that their schemes stay out of the Pension Protection Fund because the cap is likely to have a direct impact on the compensation that they would receive.
The level of the cap was set after much research and analysis. The current full amount is around £40,000 at the age of 65. Members under their scheme’s normal pension age initially receive 90% of the capped amount, which equates to around £36,000 at the age of 65. Nevertheless, this far exceeds the estimated average defined benefit pension of around £8,000. Only a few members of the Pension Protection Fund are affected by the cap. The nature of the cap means that it affects predominantly high earners; abolishing it would, therefore, mainly benefit those high earners.
In conclusion, the cap is a necessary and proportionate means of achieving a number of significant policy aims in relation to the Pension Protection Fund compensation scheme. I hope that this provides sufficient reassurance to noble Lords, and I urge the noble Lord to withdraw his amendment. At the same time, we would be more than happy to add this issue to the agenda for our meeting, which has been arranged for Thursday 12 March at 10 am.