EU: Trade in Goods (European Affairs Committee Report)

Baroness Wheatcroft Excerpts

Thursday 2nd February 2023 Lords Chamber

[Baroness Wheatcroft (CB)]

My Lords, I begin by adding my congratulations to the noble Baroness, Lady Chalker, not just on what was a wonderfully warm and heartening valedictory speech but on an extraordinary career in business and, of course, in politics. We all owe her a lot, particularly the women who have come along in her shadow. I wish her well. I think it typical of the lady that her retirement will see her teaching in the townships of South Africa; it does not sound like the sort of retirement that many people have in mind.

I thank the committee for producing such a detailed report and the noble Earl, Lord Kinnoull, for introducing it so thoroughly. It would be interesting—but not particularly heartening, I believe—to see a follow-up report. It is hard to believe that one could argue things have got better. One in four small businesses have stopped exporting altogether because of Brexit but this is not just a story about trade figures; this is about people who have really suffered and seen their businesses wrecked because of Brexit.

In his most eloquent speech, the noble Lord, Lord Berkeley, gave us a hint of just how bad things have been for people working in the music industries. It has hit freelancers, photographers and many others. Take John Hearn, whose business is wine importing and exporting. He rather surprised Jacob Rees-Mogg on “Question Time” in December last year when he said that his business and every business he knew in the wine sector was being suffocated by bureaucracy and paperwork.

Things got even worse for Simon Spurrell, who had set up the Cheshire Cheese Company and built a really successful business. In November last year he had to sell out because he faced a drop of £600,000 a year in his sales. He could not afford to keep the business he loved for himself. He is still working there, thank goodness, but under new ownership.

Last year the APPG on Fisheries produced a report that went into great detail about how that sector, which was promised so much from Brexit, was suffering. It contains heart-rending stories from the individuals interviewed, talking about how their businesses had been decimated.

The noble Lord, Lord Lamont, was a touch Pollyannaish when he wondered what the third anniversary could be. I can tell him: it is leather. To me this looks like old, unpliable leather, not the sort of Italian, soft nappa leather we might have wished for.

I declare an interest as chairman of the Association of Leading Visitor Attractions. We depend on tourism, which is this country’s fourth-largest earner. Tourism has been hit by Brexit. It will be hit harder when border controls come in that make life difficult for people coming into this country, but Brexit is already causing problems for my members and others in the tourism sector because of the lack of workers. They cannot get people in their kitchens. I heard yesterday of a hotel chain that has shut entire floors in some of its buildings because it cannot get cleaners. This is not benefiting our tourism industry.

Something that would benefit our tourism industry would be to bring back tax-free shopping, which, for reasons best known to themselves, the Government have done away with. This was the one good thing that the brief Truss Administration pledged to do. Instead, the Government have once again stuck to the idea of no tax-free shopping and just sending potential tourists elsewhere. Why would they come to the UK if they can do better in Europe? Yet again, I plead with the Government to revisit that and see whether it is a simple thing they could do to benefit the tourism industry and the whole UK economy.

Businesses crave certainty. At the moment they face more uncertainty over travel regulations and people being held up at ports. The noble Earl, Lord Kinnoull, went into detail about how the requirements are in theory coming in, first in November for ETIAS and then at that vague time “the end of the year” for fingerprinting. What will actually happen? Who will be ready to cope with it? We all know that the Port of Dover does not have the wherewithal to deal with backlogs of traffic. Five people in a car all needing to be photographed and fingerprinted will not make life easy for those who wish to use our ports.

Then let us add to the uncertainty and give business a bonfire of regulations. We will debate that next week. It is a crazy thing to do. When the Minister, the noble Lord, Lord Callanan, spoke about the Bill earlier this week, he said that there was certainty because the sunset clause would come in at the end of the year, but that does not give businesses any certainty at all. They need to know what the position will be at the end of the year and they need to know it now, because, as Tony Danker, the CBI’s director-general has said, the danger is that we are already shrinking our markets because our customers overseas do not know what we will produce and to what standards. We need certainty for our businesses if they are to survive and thrive.

At the moment the uncertainties are driving away inward investment. Only today, the Financial Times reported that Wolfspeed, a chip maker, has committed €3 billion to open a new plant in Germany. We could have done with having that plant here. Last year Intel committed €17 billion to open a chip-making plant in Germany, but we had Britishvolt, which was to be the battery maker that was essential to the UK’s motor industry. We know what has happened since: Britishvolt has collapsed. One former Minister commented that

“it’s a sad reflection probably on Brexit … So that’s part of the damage that’s been done by leaving the EU.”

That was not a rabid remainer; it was William Hague, the noble Lord, Lord Hague. He is absolutely right: we have done so much damage to this country.

I agree with others that we are not going to go straight back into the EU. There is not an appetite for it here, and neither is there yet one for it there. We must begin to rebuild relations with our nearest and largest trading partner. We need to get back into the Horizon programme immediately for the sake of our science and scientists. We then need to begin building single markets in sectors—not having one single market, but coming to arrangements with the EU, sector by sector, that will make trade easier for both sides. What could be more sensible than that?

I finish by asking a single question; I do not have a long list. I apologise to the Minister in advance, but can he tell me, in a single figure, what the direct trade benefit of Brexit has been?

Northern Ireland Protocol Bill

Baroness Wheatcroft Excerpts

Committee stage
Monday 31st October 2022 Lords Chamber

[Lord Frost (Con)]

I thank my noble friend for her comments; she is correct to say that the situation last year was different from this year. We did not invoke Article 16 in the end and many people were disappointed about that. Since then, the situation has moved on; it has deteriorated. I think this Bill is really the only way of resolving it.

Thirdly and finally, many noble Lords seem to believe that a negotiated way through this would be made easier by withdrawing the Bill. I profoundly disagree. It is very much the best way through to find a negotiated solution and that is what I wanted to do last year. The observed behaviour of the European Union, through last year and this year, is that it does not wish to negotiate about the fundamental core of the problem. The proposals it has put on the table are at the margin; they are not to do with the core of the difficulties in so many areas—not just trade but state aid, VAT and other issues that go into the depths of the protocol. I do not believe it will unless it is forced to engage with the fact that the UK Government have an alternative, which is to use the powers in this Bill. If we take the Bill off the table, we are removing such limited leverage as the UK Government have to deliver for their people, the people of Northern Ireland, a better outcome.

I will wind up there. It is very important that we do not show infirmity of purpose on this and that the Bill continues. I urge the Minister in winding up to make it clear that we intend to move forward with it.

[Baroness Wheatcroft (CB)]

I did not plan on speaking in this debate, but I think it is only right that somebody should thank the noble Lord, Lord Frost, for explaining to us how bad things have become in Northern Ireland as a result of the treaty he negotiated. I am very happy to do that. I will, however, keep my speech brief and not make a Second Reading speech.

Of course, I support these two amendments but hope very much that we will not get to vote on them. To echo the noble Lord, Lord Kerr of Kinlochard, we have been asked to put lipstick on a pig again. We have been asked to do that many times in the last couple of years, but to my knowledge, this is first time that the pig is not only ugly but illegal. On that basis, we should not get to vote on it. What we should do now, as others have said, is invoke Article 16. If negotiations are not working, as the noble Lord, Lord Pannick, said, there is a route open to us but passing an illegal Bill is certainly not it.

[Lord Hannan of Kingsclere (Con)]

My Lords, I had been planning to speak on the detail of the amendments. It seems to me to be quite unreasonable, as the noble Lords, Lord Dodds and Lord Bew, have already said, that the whole essence of the Belfast agreement, which was that important decisions would be made on a cross-community basis—a difficult principle for unionists to accept at the time—is now being abandoned the moment it becomes inconvenient. I say that as someone who was rather opposed, at the time, to the Belfast agreement—not on orange or green grounds but because I thought it was unhealthy to have all the parties in power all the time. I thought it would be healthier for democracy to have a more genuine competition. I lost that argument and we went down this road. It seems a little inconsistent that we should move to majoritarianism only when it suits people pushing one agenda.

Cost of Living: Pensioners

Baroness Wheatcroft Excerpts

Thursday 26th May 2022 Lords Chamber

[Baroness Stedman-Scott (Con)]

If the noble Baroness does not mind, I do not agree that the Chancellor has ignored things. He has had to deal with a pretty difficult set of circumstances. Due to legacy benefits, we can do an uprating only once a year, the reasons for which all noble Lords know. Since 1987, we have consistently used the September inflation figure and that will continue.

[Baroness Wheatcroft (CB)]

My Lords, one-third of the household support fund is earmarked for pensioners. The second tranche of £500 million, which is not a great deal, came into play on 1 April this year. Could the Minister tell us how much of that fund has already been exhausted, how quickly the first tranche was exhausted and what work has been done to evaluate the effectiveness of the household support fund?

[Baroness Stedman-Scott (Con)]

I confirm that the Department for Work and Pensions requires local authorities to provide management information returns detailing their spend and the volume of awards made for food, energy and water bills. MI returns for the scheme, running from 6 October 2021 to 31 March 2022, will also detail grant spend and the volume of awards made to families with and without children. This will be published in the coming months.

Pension Schemes (Conversion of Guaranteed Minimum Pensions) Bill

Baroness Wheatcroft Excerpts

2nd reading
Friday 25th March 2022 Lords Chamber

[Baroness Wheatcroft (CB)]

My Lords, I welcome the Bill and thank the noble Baroness, Lady Redfern, for introducing it. As a pensions amateur sandwiched between two pensions professionals—the noble Lord, Lord Davies, and the noble Baroness, Lady Drake—I will keep my remarks brief.

I wanted to speak about the Bill because it is about equalities, and I like equalities that work both ways: not just treating women equally but, on the occasions when they should be levelled up, treating men equally to women. It is not often that we have the opportunity to do that, but in this Bill we do. As the noble Baroness, Lady Redfern, pointed out, nobody will lose as a result of the Bill. People will only gain, and that is to be welcomed.

However, I have questions. The legislation that gives rise to this—the need for equal treatment—came about in 1990. It is fair to ask why it has taken quite so long to get to this position. During that period, there has been a question mark over survivor benefits which this Bill now finally seeks to deal with, but one of the important things about pensions is that there should be a degree of certainty. As people plan for retirement and old age, it is imperative that they be able to look ahead and see what their income might be. I am told that this Bill affects millions of people. As a result of this, they will still not be able to look at what their future pension is and plan for it.

So I ask the Minister whether there is a way in which a deadline could have been imposed to make it clearer for people, so that they can have some idea now of the effect that equalisation will have on the pension they are looking forward to—or should it remain that pension schemes just wait and wait, leaving people in limbo, unable to plan for their future?

Many times, as she introduced the Bill, the noble Baroness referred to how complex it is. That is true: you only have to look at it; it is a small Bill, but it is certainly not simple. So finally, I make a plea—I am not alone in this, and it has been done many times—for simplification of pensions. How can people look ahead and plan if the legislation is so complicated that even the professionals cannot make sense of it? Many pension professionals still scratch their heads about how the lifetime limit, for instance, will impact people, and we have seen how the tax issue can cause all sorts of unwanted anomalies to pensions. My final plea to the Minister is to please look at pensions simplification, and perhaps a little more effectively than we did with tax simplification.

Russia (Sanctions) (EU Exit) (Amendment) (No. 2) Regulations 2022

Baroness Wheatcroft Excerpts

Thursday 3rd March 2022 Lords Chamber

[Baroness McIntosh of Pickering (Con)]

My Lords, I congratulate my noble friend on all his efforts and those of Ministers in his and in other departments in both places. However, there is a concern in the country that the inevitable delay in passing the legislation which came into effect on 1 March has perhaps meant that a number of assets have been able to be moved. Are the Government concerned about this?

Looking at SI No.194—I hope I have identified it correctly—I understand that provision will be made for medicines and humanitarian aid to reach Ukraine. I want to press my noble friend as to what routes will be used. There are reports that pharmacies in Ukraine are already facing a shortage of medicines. There will need to safe routes in.

We can only imagine the level of injuries and casualties that are having to be dealt with at this time. Is there any way in which some of the casualties can be evacuated to neighbouring countries? Is it the Government’s desire to send teams of medically qualified people out from the United Kingdom to assist with this humanitarian effort?

[Baroness Wheatcroft (CB)]

My Lords, I congratulate the Government on having gone further and faster than they had originally planned once the gravity of the situation became clear. Although this may be the largest ever package of sanctions from the UK, can the Minister explain to the House why there are so few individuals on our sanctions list compared with the EU’s? Why, in a particular spirit of generosity, are we allowing 18 months from when the legislation comes into effect for those who wish to sell their houses and get the proceeds out of the country to do so?

[Lord Garnier (Con)]

My Lords, I agree with the noble Baroness’s last remark. I was on the Joint Committee on the Draft Registration of Overseas Entities Bill, which sat in 2019. Clearly, 18 months is far too long if Clause 3 of the Economic Crime (Transparency and Enforcement) Bill is to have any immediate effect.

Is there any possibility of having a look at the enemy aliens Act of 1914? Of course, this is not an exact parallel, but there may be suitable provisions within that old legislation, which was renewed in 1919 after the end of the First World War. Could my noble friend’s officials perhaps look at this legislation to see if there are any useful provisions which could be modernised and brought forward to be of value nowadays—accepting that the United Kingdom is not “at war” with Russia?

While the measures which my noble friend has just announced are hugely valuable, there are three groups of people on whom we need to apply pressure, given that the Ukrainians are actuarily unlikely to win a fighting war, brave as they are and incredible as their resistance has been so far.

First, when the ordinary Russian public are queuing for bread in Moscow because the Russian economy has collapsed, they will begin to wonder why and they will begin to ask why Russian state television and other state-controlled media operations have been less than candid about why the Russian army has gone into Ukraine, its level of success and the number of their children who have been killed. I understand that the Russian army moves, when it can, not just with armoured vehicles, artillery and infantry but with mobile crematoriums, so that the soldiers who are killed are immediately disposed of and the Russian public do not get to know about the huge numbers who have been killed.

State Pension Underpayments and Arrears for Women

Baroness Wheatcroft Excerpts

Monday 21st February 2022 Lords Chamber

[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.

[Baroness Wheatcroft (CB)]

My Lords, when more than £60 million that should have been paid has not been paid, surely somebody should be held responsible in the end for that error. In the private sector, the sum of £60 million would be taken very seriously. Can the Minister tell us, therefore, who was ultimately responsible for this failure to pay such a large sum of money?

[Baroness Stedman-Scott (Con)]

The shortfall or underpayment was identified as a result of a marker on the computer system not working correctly. We put it right and we are doing our best to pay people what they should have. It should not have happened, but ultimately the Government must take responsibility.

Social Security (Up-rating of Benefits) Bill

Baroness Wheatcroft Excerpts

Report stage
Tuesday 2nd November 2021 Lords Chamber

[Lord Rooker (Lab)]

My Lords, I had not intended to speak. I can see why there is a logic against the noble Baroness’s amendment in some ways, although if she puts the amendment to a vote, I will support her. There was a time—I am going back some years now—when the Government were committed to a link. The consequence of that was that I had to put forward a 75p pension increase. I remember saying to Alistair Darling, my boss, “Couldn’t we make a quid? It’ll be a lot easier to explain a quid than 75p.”. He said, “No, no. The formula’s there. The Treasury said this is what we do: we stick to the formula.” So we stuck to the formula. I was always able to defend it in a way because the supplementary pension, although people did not always apply for it, was worth three quid rather than 75p, but we know about the uptake. The Treasury factor in that people do not take up benefits.

However, here it looks as though pensioners are being treated unfairly. I do not think they are because, as I shall say tomorrow in the debate on the Budget, there are so many hidden tax increases, particularly for pensioners with a very small occupational pension who are at the moment outside the tax net but who will be sucked into it because of the freezing of the personal allowance over a five-year period. Substantial numbers will be paying tax without anybody announcing a tax increase, and that is unfair. I hope that some time, when he flies in, the noble Lord, Lord Lawson, will come to support me on the basis that he supported me and Audrey Wise in 1977 to make the system workable.

However, the noble Baroness has a point. I do not intend to speak on the other amendments because there is a point where logic says you cannot take account of the pandemic. I understand the long run. For a couple of years, I did the job that the Minister is doing and I understand that Ministers are presented with a 30-year run of the consequences of any change in the figures. That has got to be the case when you are talking about pensions.

If we had the second or third-best pension in Europe, we would not be having this argument, would we? However we have one of the poorest basic pension rates of any modern economic country, but we are, so called, one of the richest. Sometimes we have to say, “Hang on a minute: let’s take a stand,” and I think today is an opportunity to do that. I know the logic is against this, but when one looks at the figures, it is an opportunity to make a change. The Government could be forced to have a look at some of the long-run consequences of having such poor pensions, where they factor in low uptake of pension credit. One of the documents produced for the Budget on changes in household incomes mentions that they factor in that people will not claim benefits to which they are entitled. That is not very fair. Today is an opportunity for the little people to hit back.

[Baroness Wheatcroft (CB)]

My Lords, I have put my name to Amendments 1 and 7 in this group, as well as to Amendments 3 and 4 which will be debated later. I am delighted to follow the noble Lord, Lord Rooker. He spoke sanely about what these amendments would do and why they should do it.

The noble Baroness, Lady Altmann, made the case very clearly. There are 2 million pensioners living in poverty and 1 million in extreme poverty. Noble Lords need to know that this Bill would put more people in this position. We should not be passing it unamended.

I find the arguments against our amendments pitifully thin—I am sorry, but I do. I remind the House that, in Committee, the Minister, who wants to do the right thing, said:

“The Government’s triple lock manifesto commitment remains in place”.—[Official Report, 26/10/21; col. 738.]


I know that that is a reference to the fact that we are told that the suspension will be for only one year, but that is not good enough. If you suspend the earnings lock for one year, the cumulative effect goes on, so the commitment is lost.

The commitment was to keep the earnings lock in place because earnings might well be greater than inflation—particularly CPI inflation—and there is no doubt that that will be the case. After all, the Government keep telling us that they want a high-wage economy. But they do not seem to want higher increases for pensioners. We know that, in most cases, these people’s spending is very curtailed. It goes predominantly on fuel and on food. Those are constituents of the CPI, but they are not in the same proportion as they are in pensioners’ spending. Therefore, increases in fuel and food prices hit pensioners harder.

I am still bemused as to how, in Committee, the Minister was able to tell us that,

“we are not currently expecting widespread, significant and sustained increases in consumer food prices in the coming months”.—[Official Report, 26/10/21; col. 740.]

I do not know what she knows, but the supermarkets certainly are. These price rises are already coming through. They are not yet fully reflected in the CPI, but we know that prices in the shops are going up. And the more that wages go up in this new, high-wage economy where we are encouraging drivers of HGVs to demand more money—which the Government say they deserve—the more this will feed through into increased food prices.

We need to make sure that our pensioners can eat. I do not want to be responsible for pensioners going hungry —or even hungrier than they have been in the past—and I do not believe that the Minister does either. It is imperative that we do what should not be beyond the wit of any Government and come up with a number that approximates effectively to where underlying earnings have gone in the last year. I have every confidence that the ONS can do this. Indeed, CPI is not quite as robust as the Minister would have us believe; it is often adjusted after a few months, or even a year, because a lot of numbers have to be adjusted as new information comes through. We could come up with an adjusted earnings figure which would enable the Government to maintain their manifesto commitment, which I am sure it would really like to do. It would enable the rest of us to ensure that pensioners –those on pension credit, as well those on the basic pension—lead a slightly better life. This is all part of the levelling-up agenda.

[Baroness Lister of Burtersett (Lab)]

My Lords, in speaking briefly in support of Amendment 5, although I also support the other amendments in this group, I will spare noble Lords the full lecture on the use of relative and so-called absolute poverty measures that I gave in Committee. As the Minister completely ignored the point in her response to that group of amendments in Committee, I return to it now. In discussing an assessment of the Bill’s impact on pensioner poverty—which is certainly necessary—we should be clear how we measure poverty.

When mentioning poverty, the Minister constantly uses the so-called “absolute measure”, and no doubt she has been briefed to do so today. I say so-called because it is better described as an anchored measure, anchored to the poverty line in 2010-11 adjusted for inflation, but taking no account of changes in living standards in the intervening period. In doing so, she ignores what has happened using the more commonly used relative measure, which is part of the suite of official measures.

--- Later in debate ---

[Baroness Ritchie of Downpatrick (Lab)]

My Lords, I would first like to apologise to your Lordships’ House for being unable to speak on the Bill at Second Reading and in Committee due to direct participation in Select Committee work. I am very pleased to follow my noble friend Lady Lister and to congratulate the noble Baroness, Lady Altmann, on bringing forward these cross-party amendments.

Although we in Northern Ireland make our own social security legislation, in all instances it replicates legislation here because the money comes from here. I look across the Chamber at the noble Lord, Lord Dodds; he and I were former Ministers in the Northern Ireland Executive with responsibility for pensions and all social security matters. We may have had the flexibility to bring in slight amendments, but we had to adhere strictly to the principles and policies because of the issue of parity.

I am pleased to support these amendments because, like my noble friend Lady Lister, I believe that pensioner poverty is deepening. In Northern Ireland, I see it day in, day out; people—particularly pensioners, many of whom have paid in over their lifetime’s work through national insurance contributions and tax—now find themselves reliant on the use of food banks. To say the least, the pandemic has worsened their situation; it has made mental illnesses more acute and people are unwell, and they also have less money for important items such as foodstuffs, which they require to survive.

I support these amendments because they are important for protecting pensioners, including the poorest, in line with an earnings figure that is adjusted for pandemic distortions. Protecting women and those who are the poorest in our society should be a mandatory obligation on all of us. There is a duty of responsibility to reject the proposal to remove the triple lock pension system. I say to the Minister and the Government Front Bench that this decision will impact most on those women who find themselves in the greatest level of poverty, who have already been subject to their entitlement to a pension dropping from the age of 60 to the age of probably 66 or 67, as per the Pensions Act 1995 of this Parliament.

I am therefore very happy to support these important amendments. There is a duty of integrity to protect all parties’ manifesto commitments and to amend the uprating Bill to ensure that all pensioners—people who have provided for all of us—are duly protected in the best financial way.

[Baroness Wheatcroft (CB)]

My Lords, I put my name to these two amendments for all the reasons that have just been outlined by the noble Baroness, Lady Altmann, and others who have spoken. It seems absolutely the right thing to do, on behalf of 12 million pensioners, to ask the other place to think again, after it spent just two and a half hours considering how to penalise 12 million people in this country.

It is only right that the link to earnings which was part of the manifesto promises should be preserved. In 1979, the Government of Margaret Thatcher abandoned that link. It was restored again in 2011, but the effects live on and, today, pensions are still below their relationship to earnings in 1979. The argument that this is a one-off does not hold water.

I will not repeat the argument that I used in the first group of amendments, save to say that this is not the time when we should make our pensioners poorer; when we can afford, apparently, to make bankers richer, and enable them to drink more champagne as they fly on short-haul flights in the UK, we really need to think again about whether pensioners should be made poorer. Make no mistake about it: the way inflation is headed, pensioners will be poorer.

The Minister talked about the CPI, but she was looking backwards. It is no good telling pensioners what prices have been; when we are talking about the money they will get in the future, the conversation needs to relate to where prices are going. Prices are going up much faster than the rate by which we are talking about raising pensioner income. For those reasons, it is absolutely right that this House should ask the other place to think again.

[Baroness Greengross (CB)]

My Lords, I support the amendment in the name of the noble Baroness, Lady Altmann. I share with her the many years that we have been working on these issues, and I am anxious that we get the balance right on pension policy.

Amendment 3, which would restore the link between pension uprating and earnings, is essential. This link was removed back in 1980. It resulted in many years of pension rates failing to increase at the same rate as average earnings. At that time, I was at Age Concern England, where we ran campaigns calling for an end to pensioner poverty and for the link with wage movement to be restored. Sadly, when this link was finally restored, in 2011, it was done as part of the triple lock, whereby pensions would increase by average earnings increases, inflation or 2.5%, whichever of the three was the higher. For the last decade, wage movement has been stagnant, and the rate of inflation also quite low. At a time when wages were not increasing, we called on workers to pay for the triple lock, creating, in my view, intergenerational unfairness.

At Second Reading, I spoke about the Intergenerational Fairness Forum report, which made a number of recommendations, including that the triple lock be replaced with a double lock, whereby pensions increase at the rate of average earnings or inflation, whichever is the greater. I refer to my interests as stated in the register, and in particular to my role as president of the Pensions Policy Institute. In 2019, this organisation released a report entitled Generation veXed, which found that people born between 1966 and 1980, who entered the workforce before automatic enrolment and who have worked during a challenging economic climate, have poorer levels of retirement savings when compared with the generation that went before them. This Generation X cohort have been asked to fund the current triple lock, while their ability to save for their own retirement has been, sadly, rather poor.

Retirement policy requires a balance and should not change with each electoral cycle. The situation we find ourselves in today, with the Covid-19 pandemic, is that the Government expect significant wage movement. Of course, this is due not only to the pandemic; it is due also to rising prices caused by Brexit, which will put pressure on employers to increase wages.

Amendment 3 would ensure that the link between pensions and earnings was retained, but it would allow the Secretary of State to make adjustments in situations like the one we face this year. I support the amendment as a sensible solution to the situation we are facing at the present time, but I reiterate my belief that, in future, we should abandon the triple lock and specifically the 2.5% uplift, and instead have a double lock based on earnings and inflation. If in future there is concern that earnings are again not increasing, rather than implement a 2.5% increase for pensions the Government should instead look at their economic and employment policies to ensure that earnings and pensions are both increasing at a decent rate.

Nazanin Zaghari-Ratcliffe

Baroness Wheatcroft Excerpts

Wednesday 27th October 2021 Lords Chamber

[Lord Ahmad of Wimbledon (Con)]

My Lords, again I hear what my noble friend has said but I cannot say any more than I have already on the case and legal proceedings.

[Baroness Wheatcroft (CB)]

My Lords, when he was Foreign Secretary, the man who is now our Prime Minister misspoke about the reason for Nazanin Zaghari-Ratcliffe being in Iran. Should he not now take personal responsibility for getting her out, as those words undoubtedly worsened her position?

[Lord Ahmad of Wimbledon (Con)]

My Lords, my right honourable friend the Prime Minister takes the issue of Nazanin Zaghari-Ratcliffe, and indeed all detainees in Iran, very seriously and is personally engaging on this issue.

Social Security (Up-rating of Benefits) Bill

Baroness Wheatcroft Excerpts

Committee stage
Tuesday 26th October 2021 Lords Chamber

[The Deputy Chairman of Committees (Lord Russell of Liverpool) (CB)]

I should point out to the Committee that if Amendment 1 is agreed to, I cannot call Amendment 2 by reason of pre-emption.

[Baroness Wheatcroft (CB)]

My Lords, I have put my name to the first three amendments because I believe that doing away with the earnings link would be a really dangerous step. I am grateful to my noble friend Lady Altmann for doing such a lot of work on these amendments and providing the Government with a percentage, 3.8%, which should of course be acceptable. Nobody in this House knows more about pensions than the noble Baroness, and she has introduced this measure so effectively that I can be relatively brief.

Relying on CPI inflation, which would happen if we did away with the earnings link, will act to the detriment of pensioners, as it does not accurately reflect how those pensioners who rely most heavily on their state pensions spend their money. Last month, for instance, the greatest downward pressure on inflation came from hotels and restaurants. It is the basics of life which absorb pensioner incomes, though, not hotels and restaurants. Their money goes on food, fuel and housing, yet we know that the September CPI figure, which would be used to determine the inflation figure for pensions, does not and cannot take account of the increases that are going to dawn on food, fuel and housing prices over the next few months. Earnings are a good guide to where basic costs will go, and we should maintain the link for pensions.

Pensioner poverty is on the rise again. In June this year, Age UK reported that more than 2 million pensioners were living in poverty. We know that very many of those might qualify for extra benefits but do not apply for them, either through too little knowledge or too much pride, so it is crucial that the basic pension—currently, shamefully, the lowest in the OECD in relation to earnings—should rise significantly. There will be some who do not need the extra cash—members of that ever-reducing band with the benefit of a defined benefit pension, or those with an investment income—but the fact that they have more money does not mean that the basic state pension should not rise at a reasonable level: the tax system can claw back the excess. Would it not have been sensible to have made sure that the levy to pay for NHS and social care reform would come from income tax rather than from national insurance, which pensioners do not pay at the moment? I believe that those pensioners who are in work should pay.

However, these amendments make sense. They work as a package and therefore I support them.

Child Poverty: Nuffield Foundation Review

Baroness Wheatcroft Excerpts

Tuesday 19th October 2021 Lords Chamber

[Baroness Stedman-Scott (Con)]

The statistic shared by the noble Lord is sobering. Again, not wishing to sidestep the issue, I will need to go to the relevant department to make sure that he gets an answer. I will make sure that it is shared with noble Lords.

[Baroness Wheatcroft (CB)]

My Lords, the Minister is a kind and compassionate person. Can she tell the House how this Government felt comfortable taking away the £20 uplift in universal credit just as food and fuel prices are on the way up? How will that affect the children already living in poverty?

[Baroness Stedman-Scott (Con)]

That is the subject of the month so we should expect noble Lords to raise it. I must say that I have answered this question a number of times. The Government’s position is clear: the uplift was a temporary solution that we extended for six months, and it is to stop. We have the household support fund, of another £500 million, and we are doing everything we can in terms of energy to make sure that people have the support they need. I would be happy to write to the noble Baroness laying all that out, rather than taking time now, to make sure that people understand.