Firefighters’ Pension Scheme (England)

Debate between Baroness Laing of Elderslie and Penny Mordaunt

Monday 15th December 2014 Commons Chamber

[Penny Mordaunt]

No, the House should be clear that no alternative scheme is available. If the regulations were revoked, a new scheme would have to be designed and consulted on and then introduced in April, and there is very little time to do that. [Interruption.]

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. The Minister must be heard. We have a short time for this debate, and Members must not waste time by jeering and laughing.

[Penny Mordaunt]

To refute the Opposition’s position is a straightforward job, but it is not the one I will focus on this afternoon. The fire service has had three years of wrangling over the arrangements, and there have been many changes to the scheme since it was originally proposed. Firefighters still have concerns, and we should remember that this is their debate. Many have taken the time to lobby Members and to write to me and meet me, and we owe it to them to focus on the outstanding issues, the facts of the matter and their concerns for the future. This is an opportunity to air their worries and their suggestions as to what should be done.

I thank all hon. Members who have put in to speak, raised their views with me or approached me with genuine concerns and in search of solutions. I am here to listen, and I will do all I can to address those concerns and provide reassurances, either today in the House or in the future. Let this debate be of the calibre that firefighters deserve, and let us remember that loose talk has potentially damaging consequences for those in the scheme, if they believe it. Many firefighters will be making financial decisions about their families’ future based on the messages that they take away from today’s debate. Let us remember that what we do today has far-reaching consequences.

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[Madam Deputy Speaker (Mrs Eleanor Laing)]

The hon. Lady will appreciate that that is not a point of order for the Chair; it is a contribution to the debate, and I am sure that the Minister will put her view or correct the record if she wishes in due course. [Interruption.] Perhaps the House will be quiet and allow the Minister to speak. There has been quite enough.

[Penny Mordaunt]

The retirement age of 60 was introduced in the new firefighters pension scheme 2006—a scheme that the shadow fire Minister, the hon. Member for West Ham (Lyn Brown), helped to introduce as Parliamentary Private Secretary to the then Minister. It is the same age that Lord Hutton said should apply to members of the armed forces and the police, but it is well below the retirement age set for most public sector workers, recognising the unique nature of the occupation. Lord Hutton also proposed actuarially fair early retirement terms, and that pensions should be calculated on a career average arrangement. He found that the firefighters pension scheme 1992 is the most expensive public service pension scheme, at 37.5% of pensionable pay. Currently, for every £1 a firefighter pays into the scheme, the taxpayer pays an extra £5.

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[Madam Deputy Speaker]

Order. Mr Lammy, the Minister is not giving way.

[Penny Mordaunt]

Thank you, Madam Deputy Speaker. I will take interventions, but I want to make some progress.

Those costs are being met by taxpayers, many of whom have no expectation of enjoying such a generous pension. That is why we ask firefighters, like other public servants, to pay more towards their pensions and rebalance the cost to the taxpayer. There have been three years of negotiations and many changes to the scheme. The notion that there has not is plainly untrue.

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[Madam Deputy Speaker]

That is not a point of order. The Member who has the Floor can answer interventions as he or she wishes. [Interruption.] Order. We will have order in this House. This is a serious debate, not a matter for squabble. Now stop the noise.

[Penny Mordaunt]

Thank you, Madam Deputy Speaker. I know many Members wish to speak and make interventions. I am trying to take as many interventions as I can, but if people want me to take fewer I will consider that.

The Opposition and the FBU have two main issues: working until 60, and the impact that that might have on a firefighter’s ability to have a full career and, consequentially, a full pension in the service. I have already mentioned that the normal pension age for firefighters has been 60 since 2006. That was introduced by a Labour Administration. It is the same age for members of the armed forces and the police under the reforms. More than a third of firefighters currently in the service are members of the 2006 scheme and have the expectation that they would retire at 60. A natural consequence of the 2006 scheme is that all firefighters would, in due course, have a normal pension age of 60 without any further action by the Government. No strike was called in 2006, and nothing was done by the previous Administration—nor by the national joint council, which is made up of the employers and the FBU to oversee firefighters’ terms and conditions—to ensure that firefighters would get the support needed to work until 60. It is clear that this was not a particular area of concern to either the previous Government or the FBU in 2006, but it appears that it has become one now. I want all firefighters, whichever scheme they are on, to be confident that they will be able to work until their normal pension age and achieve a full pension.

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[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. The Minister is not giving way. Members must allow her—[Interruption.] Order. The House must allow the Minister to conclude her speech.

[Penny Mordaunt]

Thank you, Madam Deputy Speaker.

Given that time is short, I am going to turn to the issue of redeployment opportunities, which many Members raised. Let me be frank that the availability of other redeployment opportunities is a matter for the employers, but the situation today cannot be compared with what may be the case in 2022, just as it cannot be compared with the roles that applied a decade ago when fire and rescue services were responding to twice as many incidents. Increasingly, firefighters are doing different jobs, working more closely with their communities to prevent fire or developing more specialist rescue capabilities.

What I can say is that if firefighters are prepared to extend their roles away from those prescribed in the national joint council conditions of service—the “grey book”— more alternative roles may be possible. That in turn may allow the service to develop a more diverse work force that will benefit from the experience and skills of older workers, more women, and members of other communities who remain under-represented. I think that would be a good thing.