Pension Credit

Debate between Baroness Stedman-Scott and Lord Empey

Monday 8th March 2021 Lords Chamber

[Baroness Stedman-Scott (Con)]

I assure the noble Baroness that the Government are committed to action that helps to alleviate levels of pensioner poverty. I regret that I cannot confirm a backstop date, but I can confirm that we will meet Peers and that we will use all the tools available to us for innovation to try to help this group access pension credit.

[Lord Empey (UUP) [V]]

My Lords, this is not a new phenomenon. While the Question specifically refers to pension credit, we know that successive Governments have not been able to achieve adequate take-up of benefits generally. Will my noble friend suggest to her colleagues that a fundamental review of how benefits are rolled out needs to take place, because public policy is defeated if there is not adequate take-up? Secondly, will she tell the House whether her department takes into account non-take-up amounts in the budget, so that there is a regular build-in of non-take-up by her department?

[Baroness Stedman-Scott (Con)]

I will certainly take the suggestion of a review of benefits back to the department. I am afraid that I will have to write to the noble Lord about the issue of non-take-up as far as the budget is concerned.

Arcadia Pension Fund

Debate between Baroness Stedman-Scott and Lord Empey

Tuesday 8th December 2020 Lords Chamber

[Baroness Stedman-Scott (Con)]

My noble friend is not alone, as witnessed by the endorsement of his points on how pension schemes should invest their money. However, the accounting standards ensure that a standard, objective measure applies to pension liabilities on company balance sheets. This is very different to the role of trustees when deciding on an investment strategy. It is up to trustees to have an investment strategy that suits the specific nature of their schemes. While gilts and bonds have lower returns, they are much less volatile than equity and can be useful as part of a diverse investment portfolio.

[Lord Empey (UUP) [V]]

My noble friend will be aware that the high street has been under pressure for a long time. We also know that Philip Green has form when it comes to pensions. There will be great disquiet at the fact that this deficit has been allowed to build up. Can my noble friend give me a sense of the Government’s liabilities in this regard? What steps we are going to take to ensure that these funds are not again left in a vulnerable position, when we know well in advance that sectors are in severe difficulty?

[Baroness Stedman-Scott (Con)]

There is no government liability, as the Pension Protection Fund is funded by the assets taken into it from schemes, topped up by a levy on eligible schemes. The PPF plans for the long term and, as at 31 March 2020, it had a healthy reserve of more than £6 billion.