Enterprise Bill [Lords]
Debate between Chris Philp and Kevin Brennan
Kevin Brennan
Yes. I will briefly touch on the inadequacy of the consultation later.
Amendment 15 is about workers earning less than £27,000 a year. As I mentioned, it was the right hon. Member for Witham (Priti Patel), when she was at the Treasury, who said a year ago:
“those earning less than £27,000 will be exempted to protect the very small number of low earning, long-serving public servants.”
She was commenting on the Government’s plans to create the public sector exit payment cap.
Chris Philp (Croydon South) (Con)
Did the Minister for Small Business, Industry and Enterprise not take the Committee through a number of worked examples demonstrating that the Bill would not have the adverse effect on pensions that is suggested? For example, a prison officer earning £28,000 a year with 34 years’ experience could still retire at as young as 52 without being affected. Does that not illustrate that the hon. Gentleman’s concerns are not terribly well founded?
Kevin Brennan
My hon. Friend is absolutely right. I hope that the Government will have a last-minute change of heart. Why is a privatised banker not given the fat cat treatment under these provisions?
Kevin Brennan
I will in a moment, but first I will repeat my question, just in case Members did not hear it: why is a fat cat banker not being given the same treatment as nuclear decommissioning workers?
Chris Philp
The shadow Minister well knows that the Government have capped the pension contributions of higher earners at £44,000 a year, and that those on the highest incomes of more than £200,000 have had their contributions capped at £10,000 a year. The Government have taken a lot of action in this area, as the shadow Minister well knows.
Kevin Brennan
What the hon. Gentleman may not realise is that the workers of the banks that have been taken into public ownership will be specifically excluded from the exit payments cap under the Government’s plans. That might change his mind, so he might like to join us in the Lobby later. Yet again, it seems to be “Up with the bankers and down with the workers.” What a shocking value-free zone this policy is, if the Government stick to it.