Intergenerational Fairness

Debate between Baroness Laing of Elderslie and Marion Fellows

1st reading: House of Commons
Tuesday 28th February 2017 Commons Chamber

[Marion Fellows]

There certainly is recognition, but I totally disagree with some of the ideological truths held by those on the Government Benches. We have to look after pensioners just now and pensioners in the future. Indeed, Age UK told me to refer to the Pensions Policy Institute, which calculated that a younger person with lower earnings has a 63% chance of achieving an adequate retirement income if the new state pension is increased by the triple lock, but that could fall to 36% if it is linked to earnings. That is about future generations, not just me and my generation. Other parties should be united with the SNP on future protection. Notwithstanding the report’s importance, we must be clear that addressing the challenges for working-age individuals does not mean deprioritising the safeguards for future pensioners. The way to tackle intergenerational fairness is through inclusive growth, ensuring that all generations can live in security in retirement.

The report also looks at universal pensioner benefits such as winter fuel payments, which are not index-linked and have dropped in value over the years. The Committee’s opinion is that universal benefits should not be off limits when spending priorities are set by future Parliaments. However, some commentators have said that the cost of removing them from better-off pensioners could be more than the benefits themselves.

I have granddaughters and I might have grandsons one day, too—who knows? I want things to be better for them. I would like the UK Government to look closely at what can be done to improve matters for them. As I said, the UK Government have built an economy that offers no long-term security for future generations. The SNP’s vision of economic development is to build on the idea of inclusive growth based on equal opportunities, a fair and inclusive jobs market, and a safe and secure future for the younger generation.

The Scottish Government are building a safe and secure future for future generations. They believe that a fair and inclusive labour market that provides sustainable and well-paid jobs is key to a more equal society and a more resilient economy. To achieve intergenerational fairness, we need to tackle the legacy effects of the economic recession, such as youth unemployment and in-work poverty. The Scottish Government are ambitious in their aim to reduce youth unemployment and are now implementing the Wood commission’s recommendations through a youth employment strategy. Scotland has been a strong advocate of collective action at EU level and has supported initiatives such as the European youth initiative.

I might run out of time, but I will swiftly talk about home ownership and housing costs, which the Scottish Government have done a lot to improve. The Scottish Government will build 50,000 affordable homes, which will help the younger generation, and passed the Private Housing (Tenancies) (Scotland) Act 2016 to create simpler tenancies that offer stability and security to the 700,000 tenants who call the private rented sector home. The Act improves security for tenants, contains comprehensive and robust repossession grounds and includes an opportunity for local authorities to implement rent caps.

What we need for all generations is hope for the future and robust policies that do not pit one generation against another. My children and grandchildren do not begrudge what I have earned and paid for, and I want the best for them, too, but I have grave misgivings about their life chances under this Tory Government. Theresa May has indicated that the UK could follow down a road of deregulation.

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. The hon. Lady is fine for time, but I am sure she meant to say, “The Prime Minister.”

[Marion Fellows]

Yes. I beg your pardon, Madam Deputy Speaker.

A tax haven-style economy would deny opportunities and security to millennials and the generations to come. Finally, to pursue a deregulated tax haven charter is not only a futile race to the bottom that will affect businesses and harm the economy but a clear admission that the UK Government have not learned from mistakes made during the 2008 financial crisis and, more recently, the Panama papers.