Oral Answers to Questions
Guy Opperman Excerpts(5 years, 2 months ago)
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Martyn Day (Linlithgow and East Falkirk) (SNP)
The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)
Universal credit ensures that support goes to those who need it, allowing 700,000 more people to receive benefits than did previously—this is worth approximately an extra £2.4 billion. Those who move to UC from legacy benefits and whose circumstances remain the same will be eligible for protection of their entitlement at the point of transition.
Patrick Grady
This is Challenge Poverty Week, and plenty of people are challenged by UC. They face what Citizens Advice Scotland describes as an “acute dilemma” between enforced hardship for five weeks, while there is no income whatsoever, and ongoing hardship if they choose to take out a loan and have to face reduced monthly payments while they pay back that loan for the first five weeks.
Guy Opperman
The situation is that this is an assessment period and no one has to wait to receive a UC payment; an advance of up to 100% is available to those in need, and significant funding has gone to Citizens Advice Scotland.
Martyn Day
Some 700,000 households yet to move to UC have insufficient savings to cover that five-week wait, which clearly proves that UC is not working. Will the Minister consider making that advance payment to claimants a non-refundable first UC payment?
Guy Opperman
As the hon. Gentleman is aware, there is a managed migration pilot in Harrogate, where we are learning lessons, and I take on board the points he makes. That completes at the end of 2020 and, obviously, everyone not in the pilot stays on the legacy system as it currently runs.
Stephen Crabb (Preseli Pembrokeshire) (Con)
One important way for people on UC to build their financial resilience is through regular saving, although that can feel incredibly difficult for those on lower incomes. Does the Minister agree that the Government’s Help to Save scheme, which is precisely for people on tax credits and UC and which provides a 50% bonus on their savings, is a really important tool?
Guy Opperman
Just today, I met Toynbee Hall and other organisations that are championing the idea of Help to Save. It is making a massive difference, and it is linked to automatic enrolment and to various other schemes we are trying to pioneer in order to ensure that people have savings as well as UC.
Michael Tomlinson (Mid Dorset and North Poole) (Con)
I visited my local jobcentre, and it is very positive about the effects of UC. Specifically on financial resilience, how many people have been helped into work and the security of a regular pay packet as a result of UC?
Guy Opperman
My hon. Friend makes the good point that hundreds of thousands of people have been helped into work, but more particularly this is about the difference between the current system and the legacy system: we now have a dedicated work coach and personalised support; we have scrapped the 16-hour cliff edge; there is more help with childcare; and we have given additional support that was never there under the legacy system.
Rachael Maskell (York Central) (Lab/Co-op)
Guy Opperman
If the individual case is sent to the Minister with responsibility for UC, they will take that up and respond accordingly.
Kevin Hollinrake (Thirsk and Malton) (Con)
If people are paid on a four-week cycle, once a year they get paid twice in the same month, which disrupts the UC payment for two months. Will the Minister meet me to see what we can do to prevent these cash flow issues?
Guy Opperman
I take the point that my hon. Friend makes, in his usual astute way, and I know that the Minister concerned will be happy to have a meeting with him.
Ruth George (High Peak) (Lab)
Guy Opperman
As we discussed before the start of questions, the hon. Lady knows that I will soon write to her in great detail on those particular points. The individual issue is being addressed so that there is a much gentler way forward. We are reforming the way that advances are made so that there is no fraud involved in the process.
Heidi Allen (South Cambridgeshire) (Ind)
I hope the Minister will forgive me, but I was hoping to address my question to the new Secretary of State. I am interested to know what she has learned so far about the five-week wait and the damage it does. People have more debt when they come on to universal credit than they had on legacy benefits, and the advance payment is another debt that must be repaid from a meagre amount of benefit, frozen for three years. When is the Secretary of State going to look into getting rid of the five-week wait so that people get non-repayable money into their pockets more swiftly? They cannot wait for five weeks.
Guy Opperman
I am sure the Secretary of State looks forward to appearing before the Select Committee on Work and Pensions, of which the hon. Lady is a member, next week.
An advance is available to people in the usual way. Supported by the Treasury Committee and the Work and Pensions Committee, we have brought in the Money and Pensions Service to provide debt advice and budgeting support for claimants. There is no doubt that the extra money for Help to Claim, which is administered by trusted providers—whether that is the citizens advice bureaux or Citizens Advice Scotland—is very much helping the process.
Brendan O’Hara (Argyll and Bute) (SNP)
As my hon. Friend the Member for Glasgow North (Patrick Grady) said, it is Challenge Poverty Week in Scotland, and 400 events will take place to highlight the reality of living in poverty. One of the most significant push factors that take people into poverty has been the five-week waiting time between applying for universal credit and receiving it. Today, three quarters of a million households are unable to cover their outgoings during those five weeks and are trying to repay their universal credit advance. We know it, the public know it and I suspect the Department knows it; when will the Minister do something about it?
Guy Opperman
The hon. Gentleman will understand that it is an assessment period and no one has to wait to receive a UC payment. On migration, there will be a two-week run-on for both housing benefit and employment support benefits.
Brendan O’Hara
As part of Scotland’s Challenge Poverty Week, the Joseph Rowntree Foundation has published a report that shows that the Scottish Government’s actions—such as the building of 87,000 affordable homes and the introduction of specific child poverty legislation—are making a real difference in tackling poverty. Given the fact that there is at least one Government on these islands who are determined to tackle the scourge of poverty in our society, is it not time for social security to be devolved fully to the Scottish Parliament?
Guy Opperman
There is much that I could say about the Scottish Government and their approach to welfare, but I will pass on that. The point is surely that this Government have introduced childcare changes, more employment and support on an ongoing basis, including through lower taxes. It is obvious that there is a benefit from the changes and advances we have made.
Maria Caulfield (Lewes) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)
We have extended the right to request flexible working, abolished the default retirement age, and introduced and financed the returner programme. I have seen the success of the returner programme through the company Release Potential, which is based in my Hexham constituency and which I have seen help many people back into work.
Maria Caulfield
If WASPI women were successful in appealing last week’s Court ruling, would the Government abide by that judgment and compensate women accordingly?
Guy Opperman
I spent 20 years as a lawyer, and my last client was a Mr Ed Balls, when he was Secretary of State for Education. I can assure my hon. Friend that this Government will abide by court decisions and follow the law. If there are any changes—two independent High Court judges heard the case and made the decision— clearly the Government will obey that decision.
Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)
I have been contacted by my constituent, who said:
“I have to work as a cleaner and it is hard physical work. I am nearly 63 and getting health problems. Our retirement age has been changed and we have had little time to plan for this so have little alternative but to keep working.”
Does the Minister not get that the real injustice here is that so many women have had no time to plan their pensions, no time to plan their savings and no time to plan for their families, and were told in their late 50s that they would have to work for so much longer? The WASPI women are not going to go away, so when will the Minister give them a fair deal?
Guy Opperman
I say with great respect and gentleness that the right hon. Lady, I believe, served in the Department for Work and Pensions as a Minister during the period when the state pension age was raised by successive Labour Governments. The Court in the judgment last Thursday—[Interruption.] She asked me a question, and she should let me finish. The Court in the judgment last Thursday indicated that the state, including the Labour Government of 13 years, acted appropriately by giving due notification in the way that it did.
Several hon. Members rose—
Guy Opperman
With great respect to my right hon. Friend, I refer him to the judgment in last Thursday’s case, a copy of which I will place in the Library of the House of Commons—in particular, paragraph 118 and the successive paragraphs in which the High Court outlines the exact work that was done in copious detail.
Jack Dromey (Birmingham, Erdington) (Lab)
Some 3.8 million women born in the 1950s who built Britain face hardship as a consequence of pension changes by this Government. Before the Court, they were told with cavalier disregard that they had no right to be consulted on the change of retirement age. Labour has already committed to some preliminary measures—early retirement and pension credit—and we will now consult with the women concerned about how much further we can go to bring justice to them. Thus far, the Government have committed to nothing. However, the Prime Minister said during the Conservative leadership contest that he is committed to doing “everything” he can to bring justice to the 1950s women. Can the Minister update the House on progress, or will this be another cynical broken promise on the part of the Prime Minister?
Guy Opperman
This is the matter of a court case which may be the subject of appeal. With great respect to the hon. Gentleman—who is, to his discredit, a friend of mine—the honest truth is that he should be consulting with a 1950s-born woman who was Secretary of State at the Department for Work and Pensions: the right hon. and learned Member for Camberwell and Peckham (Ms Harman), who is also his wife and who was responsible for the continuation of the self-same policy that he now objects to. For 13 years, the Labour party did the perfectly proper thing of taking due account of equality and the rises in life expectancy, and it should stick to that, having made those decisions for 13 years.
Jack Lopresti (Filton and Bradley Stoke) (Con)
Ronnie Cowan (Inverclyde) (SNP)
There are over 5,700 WASPI women in Inverclyde. Many have worked their entire adult lives. They have paid their dues and they were expecting a pension, not a benefit. If we mucked around with MPs’ pensions in the same fashion, many Government Members would be standing and asking questions. Will the Secretary of State commit to undertaking an impact assessment for all women affected by changes in the state pension age and, once completed, offer a payment acknowledging any disadvantages caused?
The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)
I am sure that the hon. Gentleman will be speaking to his own Government, who have the power under sections 24, 26 and 28 of the Scotland Act 2016 to take interventions and address the problem that he has raised.
Cat Smith (Lancaster and Fleetwood) (Lab)
Why are the Government not tracking young people when they leave the youth obligation? As such, how do they know whether the scheme works? [Interruption.]
Mr Jim Cunningham (Coventry South) (Lab)
One way that the Government could start to put right the injustices done to the women born in the early ’50s who were denied their pensions is to have a discussion with their colleagues in the Department for Transport and local authorities and provide free bus passes. That would help them a lot.
Guy Opperman
I refer the hon. Gentleman to the judgment given by the High Court on Thursday and, obviously, any individual local authorities that wish to address that point in a particular way.
Mr Speaker
The hon. Member for Edinburgh West (Christine Jardine) is being addressed by her leader, which is a very solemn matter. Nevertheless, I intrude, in the hope that she still wishes to ask a question.
Access to Pension Credit
Guy Opperman Excerpts(5 years, 5 months ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)
It is a pleasure to serve under your chairmanship, Ms Buck.
I congratulate the hon. Member for Ogmore (Chris Elmore) on securing this important debate, which I accept addresses significant and real issues. I must also congratulate him on his marriage. He will agree with the Prime Minister—bear with me—when she made the point at Prime Minister’s Question Time today that those who choose to marry a Member of Parliament do so with great bravery. It is an honour and privilege to get married, but choosing to marry a Member of Parliament is a bold thing. I wish Mrs Elmore well, and I wish them both well for the future.
It is also a great privilege and pleasure to welcome the hon. Member for Newport West (Ruth Jones) to this place. This was the first time I have heard her speak; she spoke most eloquently. I congratulate her on her win, and wish her good fortune and enjoyment of this great privilege to hold a position in this House, where she will hold Government to account and possibly, in about 30 years, have a Labour Government—obviously under a new leader, as everyone in the House of Commons seemed to agree today.
Before I get into the nuts and bolts of the debate, I will make a point that is fair across the board and yet matters. It is entirely right for the hon. Member for Ogmore and the Opposition parties generally to hold Government to account, but it is also right that we all celebrate, support and talk glowingly about the various voluntary and charitable organisations that do such great work in all our communities.
Alex Chalk
I am grateful to the Minister for making that point. Does he agree that organisations such as the Gloucestershire Older Persons’ Association, which helps with everything from digital technology to benefits and so on, are precisely the ones that Government ought to be supporting to ensure that those who are entitled to pension credit or any other benefit get them? Supporting those charities is something that, respectfully, the Government could do.
Guy Opperman
I will not necessarily make fresh policy on Government support for charities—
Guy Opperman
Much though I am urged to do so by the hon. Gentleman. The hon. Member for Glasgow South West (Chris Stephens) asked if my phone was turned on, but it is most definitely turned off—with respect and due deference to the Chair—and it is not for me to make new tax or incentives policy.
A perfectly legitimate point, however, can be made in two ways in answer to my hon. Friend the Member for Cheltenham (Alex Chalk) and several other speakers. Voluntary organisations do a fantastic job of explaining to our older community—some of whom are digitally challenged and some fully up to speed online—the opportunities to claim and the things out there that the Government will provide, and that applies to any Government down the years. Basically, those organisations should have all our support, and anything that individual Members of Parliament, local authorities and local organisations can do to assist their efforts is entirely right. In my constituency, I have visited the Men’s Shed in Hexham and various support organisations, such as Age Concern in Corbridge. I fully accept that they do a fantastic job, as similar organisations do in Cheltenham and as does my hon. Friend. If we have the ability to use them more, I am happy to take any suggestions on board.
I accept that Government actions are criticised and I understand that it is for us to make our case, but I make a further point that the pension credit toolkit that we reissued in April, with two versions this year, provides copious advice not only to the individual who wishes to claim but to the voluntary organisations out there. I urge any voluntary organisations without access to the pension credit toolkit—which gives guidance, advice, assistance and recommendations of how to disseminate vital information to our constituents—to take it up, because it is of great importance.
All those things having been said, I want to make it clear that part of our case is that we would love pension credit take-up levels to be higher. The benefit is specifically intended to provide support to some of the poorest and most vulnerable pensioners in our community, and there is no question but that we are already committed to ensuring economic security for people at every stage of their life, especially when they reach retirement.
We are forecast to spend more than £120 billion on benefits for pensioners in 2019-20, which includes £99 billion on the state pension. As a result of the triple lock, from April 2019 the full yearly amount of the basic state pension is about £675 higher than if it had been uprated just by earnings since April 2010. That is a rise of more than £1,600 in cash terms.
In respect of pension credit, the value of the standard minimum guarantee this year is the equivalent of more than £1,800 per year higher in cash terms for single people, and more than £2,700 for couples, than it was in 2010. As a Government, we also spend £2 billion a year on winter fuel payments, which are payable to all pensioners, including those on pension credit.
The overall trend in the percentage of pensioners living in poverty has been a dramatic fall over recent decades. Rates of material deprivation for pensioners are at a record low. In fact, between 2009-10 and 2017-18, material deprivation for pensioners has fallen from 10% to 7%, and rates of relative pensioner poverty before housing costs have halved since 1990. We want to maintain that achievement. It is important that hon. Members understand that more than 1.6 million people already claim pension credit. That equates to £5.4 billion of claims. Indeed, as of November 2018, there were 2,450 pension credit claimants in the constituency of the hon. Member for Ogmore, and over 100,000 in Wales as a whole.
Moving on to the point about the BBC—
Guy Opperman
I am going to answer several of the hon. Lady’s points, but I will give way.
Patricia Gibson
Before the Minister talks about TV licences, will he tell us whether he will investigate the concerns brought to me by constituents about the claim line not being properly staffed?
Guy Opperman
I was going to come to that at a later stage, but I will address it now. I am told that there is no evidence that not enough people are manning the phone line, which is a freephone number. However, if the hon. Lady provides me with the specific information by letter, I will look into it and respond to her. She also raised the issue of the ability to communicate by post. Anybody can make an application by post; it is not restricted to Northern Ireland, as I think she seemed to suggest. There is a difference because Northern Ireland is a devolved Administration and is dealt with in a different way, but 20% of the population make a paper claim by post. As I understand, postal applications are possible—I will be corrected if I am wrong.
Guy Opperman
I will not give way again, because I have a lot of points to cover.
I want to deal with the point that the hon. Lady and other Members made about the state pension age increase. The hon. Member for Birmingham, Erdington (Jack Dromey) is married to a former Minister, now Mother of House, the right hon. and learned Member for Camberwell and Peckham (Ms Harman), who was in favour of the state pension age in the dim distant past in 1997, when she was Secretary of State for Work and Pensions. Hon. Members will understand that I am the latest in a long line of Ministers who have continued the policy of successive Governments to increase the state pension age by reason of equality legislation and the increase in life expectancy, which is light years away from the three score years and ten of our grandparents.
The hon. Member for North Ayrshire and Arran (Patricia Gibson) raised the situation of the Scottish Government in answer to my hon. Friend the Member for Cheltenham; I refer the House to the letter of 22 June 2017 from my opposite number Jeane Freeman to my hon. Friend the Member for Watford (Richard Harrington), in which she explains the section 26, 28 and 24 powers under the Scotland Act 1998, which provide opportunities for the Scottish Government to intervene should they so choose, particularly in respect of the section 26 discretionary payments.
I now turn to the issue of the BBC. Its decision to limit free TV licences only to those aged 75 and over and in receipt of pension credit is disappointing. We expected it to continue the concession, and we want it to look at other options to help more elderly people who rely on TV to stay connected to the world. The BBC has indicated that it will write to all existing TV licence holders, advising them of how the new policy will work and when they need to act.
The Government look forward to hearing more from the BBC about its detailed plans for communicating and implementing that change. That is clearly a matter for the Department for Digital, Culture, Media and Sport; Government officials continue to engage with the BBC, but it would be wrong not to point out that in 2015, when the decision was made, the director-general at the time stated:
“I think we have a deal here which is a strong deal for the BBC. It gives us financial stability...The government’s decision here to put the cost of the over-75s on us has been more than matched by the deal coming back for the BBC…I think being in control of our income…is a very grown-up response for the BBC and a grown-up response for any organisation”.
The House can draw its own conclusions from what Lord Hall said in 2015 and the consequent decision that it has made. I hope that the BBC will think again once it has reflected on the comments that it made in 2015 and the nature of the pushback that there has been.
Jack Dromey
Is the Minister seriously suggesting that the Government bear no responsibility whatsoever for the BBC’s decision? Does that not sound like the Government are washing their hands of responsibility?
Guy Opperman
No; I was quoting what the BBC said about the fiscal settlement, which made it clear that it was a strong deal that gave the BBC financial stability, and that the decision to put the cost on the BBC had been
“more than matched by the deal coming back for the BBC”,
which it then decided to take a differing approach to. Officials will continue to monitor the position.
I want to talk briefly about historical activity. Successive Governments have tried to promote pension credit, yet the take-up has remained stubbornly at around 60% for some considerable time. When pension credit was launched in 2003 there were higher figures, of up to 74%, but the Office for Budget Responsibility’s fiscal risk report from May 2008 stated that
“experience from 2003 to 2008, suggests that very large increases in take-up are unlikely”.
The Department for Work and Pensions under the Labour Government commissioned and examined that report. Successive Governments have put forward a variety of innovative approaches, but research in 2010 indicated that the most common reason given by those identified as eligible, for not claiming pension credit was that they believed they would not be entitled, typically because they had savings or other sources of income.
Guy Opperman
I will not give way because I only have a minute before the hon. Member for Ogmore will make his closing remarks. There are other reasons, and I urge hon. Members to publicise pension credit. I urge the voluntary organisations, which are the most trusted organisations in a community, to support the processes. We use a variety of channels to communicate information about benefits, whether pension credit or other benefits. People can check whether they are likely to be entitled using the online calculator on gov.uk, or they can make a claim by calling a freephone number.
We engage with people who may be eligible for benefits at pivotal stages, such as when they are approaching state pension age. An accompanying leaflet contains information about pension credit and advice on how to check eligibility, and a freephone telephone number if they wish to discuss their pension credit entitlement. We also target those who report a change of circumstances. We know that the best way to reach eligible customers is through trusted stakeholder organisations, which may be best placed to understand the local circumstances and needs in their communities. That is why I strongly recommend the online toolkit for the agencies and individuals, but I welcome the opportunity to discuss this matter.
The Government are committed to increasing the number if at all possible. I thank the hon. Gentleman for raising the debate, and I wish him very well in his future married life.
Chris Elmore
I thank all hon. Members who have taken part in the debate today. There seems to be a bit of a Celtic theme coming from across the Scottish and Welsh nations, but I also thank all those colleagues from across the House who represent seats in England.
I thank the Minister for his response—it would be churlish of me not to—but it is disappointing, because there is a real need not just to rely on the voluntary sector to increase the use of pension credit.
Chris Elmore
I can see the Minister nodding, and I am sure he would acknowledge that. The reality is that pensioner poverty is increasing. The Government need to do more, not only in advertising; they need a constructive way, through other DWP benefits such as housing benefit, which I mentioned, to try to increase the uptake. They should be talking to Independent Age about how the Government can finally start to increase the access to pension credit.
I do not think it is just a case of the Minister’s saying that he wants to do this; the next Minister or the next Secretary of State, whoever they may be in the rolling hours, needs to take this on as a real task, to ensure that pensioners get the benefits that they are entitled to. As my hon. Friend the Member for Birmingham, Erdington (Jack Dromey) said, those pensioners built this country; they deserve our support and it is crucial that they get the benefits they are entitled to. I am grateful to everyone who made a contribution, and to the Minister and various hon. Members for their congratulations on my recent marriage on Saturday. I can confirm that my wife is a good advocate for marrying an MP; she ensures that I behave myself and everything else.
Work and Pensions
Guy Opperman Excerpts(5 years, 5 months ago)
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Martyn Day
Does the Minister think it right that the UK has the lowest state pension in the developed world?
Guy Opperman
The reality of the state pension in this country is that it has risen by £1,600 in real terms through the triple lock. It also needs to be looked at in the context of the significant high private pensions that, thanks to automatic enrolment and other reforms, show that this is comparable to many other European countries.
[Official Report, 1 July 2019, Vol. 662, c. 913.]
Letter of correction from the Under-Secretary of State for Work and Pensions, the hon. Member for Hexham (Guy Opperman).
An error has been identified in the response I gave to the hon. Member for Linlithgow and East Falkirk (Martyn Day).
The correct response should have been:
Martyn Day
Does the Minister think it right that the UK has the lowest state pension in the developed world?
Guy Opperman
The reality of the state pension in this country is that it has risen by £1,600 in cash terms through the triple lock. It also needs to be looked at in the context of the significant high private pensions that, thanks to automatic enrolment and other reforms, show that this is comparable to many other European countries.
Survivor Pension Benefits
Guy Opperman Excerpts(5 years, 5 months ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)
I would like to make the following statement on behalf of myself and the Chief Secretary to the Treasury, my right hon. Friend the Member for South West Norfolk (Elizabeth Truss).
Supreme Court judgment in Walker v. Innospec and others
The case concerned a challenge in the Supreme Court to paragraph 18 of schedule 9 to the Equality Act 2010, which allows defined-benefit occupational pension schemes to restrict access to survivors’ benefits for survivors of a civil partnership or same-sex marriage to benefits based on accruals from December 2005 onwards. The Secretary of State was joined as an interested party. The challenge was made under EU directive 2000/78/EC (Directive establishing a general framework for equal treatment in employment and occupation).
The judgment was issued on 12 July, with Mr Walker winning his appeal. The Supreme Court decided that the exception in schedule 9 should be dis-applied and that Mr Walker’s husband is entitled on Mr Walker’s death to a spouse’s pension for the whole of Mr Walker’s service, provided they remain married (Mr Walker had accrued a pension from 1980 until 2003).
The Government respect the decision of the Supreme Court. It is now clear that same-sex civil partners or spouses are entitled to survivor benefits in the same way as opposite-sex spouses.
Impact of the judgment on public service pension schemes
Following the Court ruling, the Government have decided that in public service schemes, surviving male same-sex and female same-sex spouses and civil partners of public service pension scheme members will, in the majority of cases, receive benefits equivalent to those received by widows of opposite-sex marriages. The exception to this may be in specific schemes where, in the past, improvements in female members’ survivor benefits have led to increased contributions. Departments will consult on and take forward changes as soon as possible. Schemes will notify their members of changes and any actions they need to take.
All same-sex survivors of a public service pension scheme member will benefit from this change. How much they benefit by will be determined by a combination of factors, including when the deceased was employed, their pensionable earnings, the length of any pensionable service and the specific benefits of the scheme to which the deceased belonged.
Impact of the judgment on private pension schemes
While the Government are responsible for public service pension schemes, private sector schemes are individually responsible for ensuring that they are compliant with the judgment.
It is therefore not for the Government to direct private sector schemes in this instance, and any action taken by the Government in respect of public service pension schemes should not be interpreted as the minimum requirement for private pension schemes in considering how they respond to this judgment. These schemes will need to take their own advice to ensure that they are legally compliant with the judgment going forward.
The Government’s response to the review of survivor benefits in occupational pension schemes
During passage of the Marriage (Same Sex Couples) Act 2013 the Government committed to undertake a review of differences in survivor benefits in occupational pension schemes. A duty to conduct this review was duly enacted in section 16 of the Act.
The review was conducted jointly by the Department for Work and Pensions (DWP) and HM Treasury (HMT), which are the Departments with policy responsibility for private and public service pension schemes respectively, and was published on 26 June 2014.
The review considered the differences in survivor benefits in occupational pension schemes between different categories of member and the costs and other effects of eliminating those differences by the equalisation of survivor benefits. The review investigated the differences between:
same-sex survivor benefits and opposite-sex survivor benefits provided to widows;
same sex-survivor benefits and opposite-sex survivor benefits provided to widowers; and
opposite-sex survivor benefits provided to widows and opposite-sex survivor benefits provided to widowers.
The review considered the extent to which same-sex survivor benefits are provided in reliance on paragraph 18 of schedule 9 to the Equality Act 2010 and the extent to which same sex survivor benefits and opposite sex survivor benefits are calculated by reference to different periods of pensionable service.
The review further considered survivor benefits provided to same-sex civil partners and those provided to same-sex married couples. The law treats same-sex civil partners equally to same-sex married couples for the purposes of survivor benefits in pension schemes because these relationships provide comparable rights and responsibilities. There is no significant difference between them. As such, any differences in the benefits provided to survivors of same-sex civil partners when compared to same-sex spouses would be difficult to justify. The review therefore gave no further consideration to differences between these two groups.
The review demonstrated that there are a variety of differences in treatment in survivor benefits in occupational schemes in respect of rights built up in the past. These differences reflect the change in social attitudes over the last 60 years and the subsequent introduction of new forms of legal relationships. As new groups have been brought into survivor benefit provision, changes have generally been applied prospectively to benefits built up from the point of that change.
The Government support equal treatment of survivors of all legal relationships, and Parliament provided that survivor benefits must be built up equally for all these groups on accruals from 5 December 2005 (when the Civil Partnership Act 2005 came into force).
The Walker judgment has clearly changed the legal position relating to survivor benefits in respect of same-sex unions, and the Government have acted; public service pension schemes will now implement changes to provide that survivors of registered same-sex civil partnerships or same-sex marriage will be provided with benefits that replicate those provided to widows of opposite-sex marriages, with the exception of specific schemes where survivor benefits depend on making the correct contributions. As was made clear earlier in this statement, private pension schemes must take advice and act accordingly in complying with the judgment.
Following careful consideration of the review’s findings, the Government have concluded that, aside from those changes brought about by the Supreme Court judgment, they will not make any further retrospective changes to the existing provisions in respect of occupational pension schemes to equalise survivor benefits. While this means that the differences in survivor benefits for accruals in past periods will remain for some, these will work their way out of the system in time.
[HCWS1690]
Oral Answers to Questions
Guy Opperman Excerpts(5 years, 5 months ago)
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Martyn Day (Linlithgow and East Falkirk) (SNP)
The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)
The overall trend in the percentage of pensioners living in poverty has fallen dramatically over recent decades. Relative pensioner poverty rates before housing costs have halved since 1990 and rates of material deprivation for pensioners are also at record lows. We want to maintain this achievement.
Joanna Cherry
On Friday, I met constituents and campaigners from Women Against State Pension Inequality Campaign Scotland. Those women told me that they are suffering poverty, distress and significant inequality as a result of a pension decision taken in the name of equality. At a time when the Tory leadership candidates are promising billions of pounds of public spending, those women would like to know why the Government cannot find the cash to right the wrong done to the WASPI women.
Guy Opperman
It is not the Government’s intention to change the Pensions Act 1995, the Pensions Act 2007 or the Pensions Act 2011. There was a £1.1 billion concession in 2011. The policy was conceived in 1993, continued under the Labour Government for 13 years, continued under the coalition and will continue under this Government. I should also point out that a judicial review is pending. I cannot comment any further than that.
Martyn Day
Does the Minister think it right that the UK has the lowest state pension in the developed world?
Guy Opperman
The reality of the state pension in this country is that it has risen by £1,600 in real terms through the triple lock. It also needs to be looked at in the context of the significant high private pensions that, thanks to automatic enrolment and other reforms, show that this is comparable to many other European countries.[Official Report, 9 July 2019, Vol. 663, c. 2MC.]
Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)
Free TV licences for older pensioners used to be a proud part of DWP policy. Ministers were warned that they would go under the Government’s TV licence plans, so please do not tell us that pension credits are the answer when thousands of pensioners in our area have small occupational or widows’ pensions, which mean that they are just above the threshold but are still on tight budgets. They will be hit by the free TV licence being taken away. What are the Government going to do to support those pensioners and to reverse this unfair plan?
Guy Opperman
The right hon. Lady will be aware that this is a matter for the Department for Digital, Culture, Media and Sport. In the 2015 funding settlement the Government agreed with the BBC that responsibility for the concession would transfer to the BBC after June 2020. I reassure the House that the Government recognise the importance of this, but we are very disappointed with the BBC and we expect it to continue the concession.
Mr Speaker
The hon. Member for Birmingham, Erdington (Jack Dromey), who is a keen young pup in the House, is perched as though he is about to expatiate. However, I had him down as coming in on the next question. [Interruption.] He wishes to expatiate now. Well, our delight is unanimous.
Jack Dromey (Birmingham, Erdington) (Lab)
The pensioners who built Britain deserve nothing but the best in retirement, yet there are 1 million households in poverty because, according to research conducted by Independent Age, the Government have held on to a staggering £7 billion since the general election in unclaimed pension credit, increasing to over £17 billion by 2022— £10 million a day. What has been the Government’s response? An online toolkit used by 2,000 people last year. How do the Government begin to justify plunging 1 million pensioners into poverty? What will they do to ensure that all pensioners get the security and dignity they deserve?
Guy Opperman
The hon. Gentleman will know that, actually, pension credit applications are up significantly. It is also the case that successive Governments have attempted to promote pension credit. I share the frustration of colleagues that it is not higher than it presently is, but I want to emphasise that the DWP uses a variety of means to communicate and we urge all pensioners to apply for pension credit through the usual manner, whether through trusted third parties, jobcentres, local authorities or the like.
Eddie Hughes (Walsall North) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)
Due to automatic enrolment, 10 million workers have been automatically enrolled into a workplace pension, including 17,000 in my hon. Friend’s Walsall North constituency. In addition, the Government’s commitment to the triple lock has meant that the full basic state pension is now worth about £1,600 a year more in cash terms than it was in 2010.
Eddie Hughes
I thank the Minister for that answer, but 3,440 households in my constituency will lose their free TV licence as a result of the BBC’s recent decision. Can he assure my constituents that pensioners with increased costs will be at the forefront of the Department’s decision making during the comprehensive spending review?
Guy Opperman
Clearly, I cannot comment on the specifics of the comprehensive spending review—I suspect that will be for the new Prime Minister—but the reality of the situation is that the triple lock and the various reforms we have introduced have meant that pensioners have done considerably better. We spend £120 billion on pensioners, of which £99 billion is on the state pension. That is a record sum.
Kate Green (Stretford and Urmston) (Lab)
Pensioners who apply for disability living allowance after the age of 65 are not eligible for the higher mobility component and are therefore not able to access the Motability scheme. The regulations are not new—they date to 1991—but our understanding of what it is to live a good life in retirement has changed in the intervening three decades. Will Ministers reconsider the regulations, so that pensioners continue to have the opportunity for full social participation?
Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)
The Department does not publish statistics on the number of people who receive a state pension below the full new state pension amount. As of November 2018, the average amount of the new state pension that people received, including any protected payments, was £154.91 per week.
Gareth Snell
I thank the Minister for that answer. While he may not have that figure, I can tell him that two of the people who do not receive that amount are Bob and Hilary Heyes from my Stoke-on-Trent constituency. Had they started to claim their state pension under the new state pension, they would have received the full amount because they had 35 qualifying years, but because they were born before 1951 and 1953 respectively, they receive considerably less. What would the Minister have me tell Mr and Mrs Heyes when they come to constituency surgery next?
Guy Opperman
It is hard for me to comment on the specifics of the particular case. If the hon. Gentleman writes to me in advance of the forthcoming constituency surgery, I will write back to him and he can hand over the letter.
John Mann (Bassetlaw) (Lab)
The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)
I met plumbing representatives from Lancashire recently, and those in Angus and Perth last year. We also debated this matter in the House last year. There are nearly 1,000 last man standing multi-employer schemes. Most respondents to the Green Paper on defined-benefit pensions felt that the current buy-out basis was a clear and fair way in which to calculate an employer debt.
Guy Opperman
I cannot speak on the specifics of the individual scheme, but the majority of the employers in these schemes are incorporated and are not personally liable for any debt. The flexible apportionment arrangement can be used to help unincorporated employers who wish to incorporate, and the plumbing pension trustee has a streamlined flexible apportionment arrangement process that employers can use. Alternatively, where the employer debt arises in multi-employer schemes as a result of an employer cessation event, there are a number of mechanisms in the occupational pension schemes employer debt regulations that can be of assistance.
Nic Dakin (Scunthorpe) (Lab)
The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)
I saw the report, which was published last week, and noted the findings on page 15 and the four recommendations, many of which we are already doing. Whether through jobcentres, third parties, local authorities or our various other communications, we want more people to be claiming pension credit, and we are trying to do everything possible to make that happen.
Andrea Jenkyns (Morley and Outwood) (Con)
Last week I had a meeting with a Parkinson’s support group in my constituency and was told about the many struggles that sufferers face. Will the Minister review the 20-metre rule, so that more people with Parkinson’s who have mobility problems can qualify for essential support, such as the blue badge scheme?
Hoover Pension Fund Deficit
Guy Opperman Excerpts(5 years, 6 months ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)
I congratulate the hon. Member for Merthyr Tydfil and Rhymney (Gerald Jones) on his speech, and the hon. Member for Strangford (Jim Shannon) on his intervention in this debate. It is a pleasure to serve under your chairmanship, Mr Robertson.
I accept entirely that this is a sensitive and important matter that the House should debate in the context of the long-term viability of defined-benefit schemes—a matter of concern to the House and to our individual constituents up and down the country. In this particular case, we are concerned with the constituents of the hon. Member for Merthyr Tydfil and Rhymney and the members of the Hoover pension scheme, who feel very strongly about this issue. I hope that I will be able to reassure hon. Members that the Pensions Regulator has done everything in its power to achieve the best possible outcome within the current legislative framework.
I will start with defined benefit generally, and make the simple point that the majority of defined-benefit pension schemes in this country are run effectively. We are fortunate to have a robust and flexible system of pension protection in the United Kingdom. The Pensions Regulator, which is based out of Brighton and is obviously independent of Government—although I meet with it on a regular basis—has a range of powers to protect pension schemes and works closely with all involved.
For schemes where the employer goes insolvent, the Pension Protection Fund is there to help to protect the members. Anybody already in receipt of their pension will continue to be paid and other members will receive at least Pension Protection Fund compensation levels. However, we are in the process of reviewing the defined-benefit system; the hon. Gentleman will be aware of the defined benefit White Paper issued a little while ago and the proposals put forward for a future private pensions Act, which we hope to bring forward in this House in due course.
In respect of the Pension Protection Fund itself, I want to ensure that hon. Members fully grasp that the Pensions Regulator has done everything in its power as an independent regulator to achieve the best possible outcome for scheme members. The employer, the Pensions Regulator and the Pension Protection Fund have considered different solutions to address the scheme’s funding deficit. On 31 March 2016, that deficit was approximately £500 million. Given that that funding deficit was putting the solvency of the company and its pension scheme members at risk, the Pensions Regulator intervened.
Turning to the Pensions Regulator’s intervention, on 30 May 2017 it approved a proposal by the 1987 Hoover pension scheme. The approved plan, known as a regulated apportionment arrangement, helped to secure the future for UK employees and gave protection to the pension scheme. The Pensions Regulator agreed to the regulated apportionment arrangement only after ensuring that Hoover had met its very strict criteria. The agreed arrangement between the company and the Pensions Regulator secured a £60 million payment from Hoover into the Pension Protection Fund in May 2019. That lump sum is significantly higher than what it would have received had Hoover fallen into insolvency. In addition, as part of that arrangement the pension scheme would also receive shares representing a 33% stake in Hoover.
That balanced approach addressed the need to protect scheme members’ pensions while preserving jobs in the sector and in the hon. Gentleman’s constituency—a matter that I know he is passionate about. The trustees of the scheme acknowledged that it secured a significantly better outcome for the pension scheme than it would have received through the normal insolvency process, and the best achievable solution for the pension scheme given the circumstances.
Matters proceeded, and I will address the protection for pension scheme members. The Hoover pension scheme left the Pension Protection Fund assessment period and transferred into the Pension Protection Fund itself in May 2019. The hon. Gentleman will be aware that the Pension Protection Fund is effectively an independent lifeboat. It is a fund established to provide a meaningful level of compensation to members of private sector occupational defined-benefit pension schemes who have lost their pension as a result of employer insolvency or impending insolvency.
Crucially, the Pension Protection Fund is funded by a levy on all other defined-benefit schemes. The framework under which the Pension Protection Fund operates means that favouring any one group will place a corresponding burden and risks on other levy payers and Pension Protection Fund members. I accept that the hon. Gentleman sought to persuade me that we should make radical change to the Pension Protection Fund as a whole, but he and I need to agree something: the previous Labour Government, who were in charge between 1997 and 2010, had opportunities to correct many things, and one of the corrections they made was the creation of the Pension Protection Fund.
We must have a very robust discussion that makes it clear that, were the Pension Protection Fund not in existence, the situation for any scheme member facing this situation would be considerably worse. The Pension Protection Fund, set up in 2005, has transformed the landscape for many people who would otherwise have been left desperately vulnerable and considerably impoverished. It pays a guaranteed level of compensation that was not previously available to pension scheme members in similar circumstances.
Pension Protection Fund compensation guarantees 100% protection to members who are over their scheme’s normal pension age at the date of the employer’s insolvency or to members under normal pension age who retired on ill-health grounds. All other scheme members are paid compensation based on 90% of their pension, subject to a cap.
The Pension Protection Fund is largely seen as a success across all Governments, with respect, and has received strong cross-party support. While the hon. Gentleman is clearly right to champion his constituents’ cause, it is right that the House should celebrate the fact that, without the Pension Protection Fund, things would be considerably worse. Setting it up was a success of the last Labour Government, and it has been endorsed and supported by all other Governments since.
Gerald Jones
I appreciate the Minister’s point about the Pension Protection Fund and how different the situation would have been had it not intervened. However, the central point I was trying to get across was whether there is any opportunity to review the position of surpluses taken under that Finance Act by a previous Conservative Government, maybe not to fully reinstate what the pensioners have lost but to go some way towards defraying some of the difficulties that pensioners now face, in my constituency and beyond.
Guy Opperman
I will answer that with three points. The first is slightly political but has to be made, given the way that the hon. Gentleman put his case. There was an opportunity between 1997 and 2010 to make such a reform if that Labour Government wished to.
However, perhaps it would be appropriate to explain why we got into this situation. Clearly, this is a tax issue. The hon. Gentleman will understand that I am answering on behalf of the Department for Work and Pensions, but I will endeavour to do my best impersonation of Her Majesty’s Treasury and address this. The Treasury’s view is that the Finance Act 1986 addressed what were then considered to be excessive pension scheme surpluses, as there was an absence of clear rules on how surpluses should be dealt with. Pension schemes with funding in excess of a certain amount could reduce certain surpluses in a number of ways, including by suspending employer or employee contributions, making taxable payments back to the employer, improving member benefits or providing new benefits to members.
It was entirely a matter for the trustees and employers to decide which method of reducing the surplus to use. If, and only if, they chose to make a refund, the employer was liable to tax at 40% of the amount refunded, so as broadly to recover the tax relief previously given. Those laws on pension scheme surpluses were repealed in 2006, with the introduction of a new pensions tax regime. As to whether the Government can commit to reviewing the terms of the Act and possibly returning the money to the schemes, Her Majesty’s Treasury is clear that it is right and fair that everyone, whether individuals or businesses, must pay the tax that is due.
Before 1986, some employers could use surpluses as a way to avoid tax. They could pay contributions into the pension scheme and receive tax relief, then apply for a return of a surplus. There were no provisions for tax repayments on the return of a surplus. The 40% tax on a return of surplus was introduced in 1986 so as to broadly recover the tax relief previously given. It was not mandatory to return the surplus; a company could instead have a contribution holiday or improve member benefits.
To answer the hon. Gentleman’s point, it is not Her Majesty’s Treasury’s present intention to reform or reinstate anything relating to the situation under the Finance Act 1986, as he sought to persuade me to do. However, I will briefly explain the changes to improve scheme funding. The Pensions Regulator can track pension scheme funding and will react appropriately when there is a large funding deficit. The scheme funding measures proposed in our White Paper will ensure that trustees put in place a more robust plan to ensure that the statutory funding objective is achieved. We intend to use new and existing powers to be clearer in legislation about what is an appropriate length for the recovery plan when there is a funding deficit.
We will take steps to require trustees to explain to the Pensions Regulator their funding and investment strategy, how they intend to mitigate risks to the scheme funding position and how they are complying with funding standards in legislation. The changes are intended to support trustees in their decision making and to strengthen the Pension Regulator’s enforcement regime, to protect members, sponsors and the Pension Protection Fund from future shocks or events such as these. The system will retain some flexibility to ensure that sponsoring employers can balance their obligations to the pension schemes with business needs. The reality is that the Pension Protection Fund is a significant organisation with more than £30 billion of assets and responsibility for more than 236,000 pension scheme members, more than half of whom are current pensioners. It is able to cope with these schemes.
However, the hon. Gentleman and the hon. Member for Strangford, who has now left the Chamber, made points in respect of other cases, including British Coal, British Steel, BHS and others. I will return to those before I finish, because while the constituents of the hon. Member for Merthyr Tydfil and Rhymney would like to receive 100% of whatever they thought they were going to receive—no one disputes that—without the changes that successive Governments have brought in, their position would be considerably worse.
The reality of the situations that the hon. Gentleman outlined is that the difficulties that those companies have got into have been addressed, by and large—there have been some tweaks or changes to the way they have been treated, particularly in respect of British Steel—by the Pension Protection Fund stepping in, by way of introducing a levy on the defined-benefit schemes out there and ensuring that a substantial payment is made from a pension that otherwise would have been lost under the old law. That has been addressed by successive Governments. Clearly this is a matter of great import to his constituents, and I thank him for bringing it to the House. I hope I have addressed some of the points raised.
Question put and agreed to.
Pension Funds: Financial and Ethical Investments
Guy Opperman Excerpts(5 years, 7 months ago)
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Sir Edward Davey
I totally agree. Indeed, analysis by the Grantham Institute shows that if someone had not held fossil fuels in their portfolio for the last 50 years, their overall returns would not have been any different. The idea that we have to invest in fossil fuels to have a return was not true in the past, and it is not going to be true in the future.
The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)
I am grateful to the right hon. Gentleman for giving way. I thought I would intervene at this stage to try to frame the debate, because I think some colleagues will not be aware of the Pension Protection Fund (Pensionable Service) and Occupational Pension Schemes (Investment and Disclosure) (Amendment and Modification) Regulations 2018, which the House passed in September last year. Those regulations require environmental, social and governance matters to be taken into consideration as part of the statement of investment principles, and require individual pension fund trustees to take into account ESG factors when considering their strategic process to invest. I suggest that is one of the reasons why BP, the parliamentary scheme and others are beginning to change their approach. Those regulations will come into force in October.
Sir Edward Davey
I am grateful to the Minister for his intervention. Those new ESG guidelines are helpful, but I am afraid I do not think they are quite up to the scale of the task we face. I will come to that in a second.
We have this carbon bubble; the question is how we are going to deflate it. How will we move from where we are now, with this big risk to our economy, to the low-carbon economy we need? One option is to say, “Well, it will sort itself out. We don’t need to worry now. We can delay it all and it will be all right. We can allow the fossil fuel companies to keep investing in exploring and getting even more fossil fuels, and inflate that bubble even more.” How risky would that be? That is one scenario that some people seem to think is possible. I reject it entirely.
Another approach is to say, “Let’s reduce, and ultimately stop, exploration for further fossil fuels. Let’s not inflate that bubble any more. Let’s gradually deflate it, so we can have an orderly transition for our economy, our energy sector and all the communities, towns, cities and people who depend on it.” That is the solution, and that is why I have concluded that we must disinvest and reinvest in a thoughtful, careful way. If we do that, we can tackle the climate emergency and avoid a financial and economic catastrophe.
That brings me to the Minister’s point. There are three possible approaches to disinvestment and investment. One is what I would call the gentle, market-led approach, which says, “If you have a bit more transparency and disclosure and a few ESG guidelines, it will all take care of itself.” I am in favour of all that stuff, but it is nowhere near up to the task. It is not urgent enough. We have people talking about voluntary disclosure. No, we need mandatory disclosure now, regulated by this House. I applaud the ESG guidelines, but they are a little woolly and poorly defined. They are little nudges when we need more than a nudge, because this is an emergency.
There is a second, state-led approach advocated by at least one Front-Bench team, involving wholesale nationalisation and dismantling capitalism. That would be the wrong approach, because it would delay action and not enable us to take the power of capitalism, with market forces, innovation and competition, to help us solve the problem.
We need to make capitalism our servant, not our master, and that comes from laws and regulations in this House. I propose a five-point plan systematically to decarbonise capitalism and tackle the disinvestment and investment challenge of the pension funds. First, there should be mandatory disclosure from all fossil fuel companies on how much carbon their business plans would see emitted and how much carbon is in their reserves. That should be coupled with a legal requirement to show how they will become compliant with the Paris treaty, with timed targets, so that fossil fuels can unwind the pollution they cause.
Secondly, there should be new climate accountancy rules for accountants and auditors on fossil fuels and pension funds, which would require accountants and auditors to produce Paris-compliant accounts, where assets and activities not aligned with the Paris treaty are written down to zero by 2050 at the latest. I think that would change the valuation of a number of companies. We would see a lot more transparency, really know what was going on, and be able to take better decisions.
Thirdly, there should be new, mandatory requirements on all pension fund managers and trustees to report on whether their portfolios of investments are aligned with Paris or not—really strong transparency and disclosure. Fourthly, there should be new powers for pension regulators, and the Bank of England if required, to challenge funds and other investment operations on their climate risk management. Where that is found wanting, the regulators should be able to take action to ensure proper alignment.
Fifthly, we need to develop a register—probably Government-led—of all the low carbon, green and zero carbon investment opportunities for the capital to go to. We cannot just say disinvest; we must show where investments and that capital should go. The good news is that there are a huge number of very attractive low carbon and zero carbon investment opportunities in this country and around the world, so we can ensure that our pensioners of the future get the pensions that they need and that those pensions are far less risky because they will be based on climate-friendly assets.
Dr Whitehead
I agree with the hon. Gentleman that some pension funds are beginning to take a different view. Indeed, that different view is becoming more possible, but the general consideration of the fiduciary duty remains a short-term gain for pensioners in the funds. Of course, the people setting out on their working lives will not get the benefit of those pension funds for 30 or 40 years. During that time inevitably we have to move to the net zero carbon economy. It is therefore essential that pension funds have a duty to look at the long term.
Guy Opperman
I want to help the hon. Gentleman on one point. He needs to understand that the ESG regulations are not voluntary, as the right hon. Member for Kingston and Surbiton (Sir Edward Davey) suggested. They are mandatory. If the trustees fail to follow them, specific sanctions follow.
Dr Whitehead
My understanding of the 2018 regulations is that it is mandatory for people to look at such things, but not mandatory for people to do things. That is the difference. In fact, I welcomed the regulations.
Pension funds should in future have a duty to protect the long-term value of the funds as well as consider the short-term issues of making money for their pensioners. We therefore need to clarify in law the fact that pension funds have a duty to protect the long-term value of the funds. Indeed, a recommendation that the Environmental Audit Committee made in its 2018 report has not been acted on, even though those regulations were introduced. That is something we need to move to urgently.
Having said that pension funds tend to invest in bonds and various other things that are primarily about energy bonds, on the assumption that there will be value, which we know will not be there in future, there is then the question of moving towards investment in things that do make a difference to climate change. Pension funds have a genuine problem in terms of the Solvency II regs, which tend to guide pension funds away from investing in the schemes that are capital-intensive up front and revenue less intensive behind, that are at the heart of the green investment revolution.
We need to do two things: first, make it much easier for pension funds to invest in long-term schemes, and secondly, ensure that they have a duty to ensure that they do not invest in short-term schemes. I have addressed the practical aspects of what pension schemes have done. I have not touched on the moral aspect. We simply have to leave dirty energy in the ground. We have got to invest in clean energy for the future, and pension funds ought to be at the front of that. If pension managers take that view in addition to the legal responsibilities that they have, I am sure they will go a long way to helping the green revolution succeed.
The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)
This Parliament accepts that there is a climate emergency, and this debate, which I am delighted so many colleagues have embraced this afternoon, has focused on the following key issues: the change that clearly is taking place in our climate; the role of the consumer; the choices that are available to the individual parties that we are dealing with; and, ultimately, the role of capitalism and its ability to assist in addressing these particular problems.
We should trumpet the success of successive Governments of different persuasions, leading up to the coalition and this Government, in leading the way in the G20 and reducing our CO2, and we should celebrate the quadrupling of our renewable capacity, but we clearly must do more. We should celebrate the fact that, as my hon. Friend the Member for St Ives (Derek Thomas) said, on the May bank holiday Britain had burned no coal for electricity for a week—the longest period without coal since the industrial revolution.
Although we celebrate these good things, they are patently not enough. Although we will plant more forests, recycle more and, crucially, try to engage our consumers, our citizens, our constituents to change their behaviour, we do, I suggest, need capitalism to save the day. I agree with my hon. Friend the Member for Truro and Falmouth (Sarah Newton) that we need to urge local authorities to focus on the clean growth strategy that has been set out by the Government to address the way we do housing and the way we do energy on a localised basis. I believe very strongly—any Conservative will make the case—that capitalism is a force for good, because we need technological innovation to solve the climate change issues, and innovative start-ups will be needed to address the access to capital and the changes that are required.
David Duguid
Many hon. Members have spoken about the need for transparency regarding the kinds of companies that are being invested in. Does the Minister agree that that transparency should include the work already done by large oil and gas companies to invest in the innovation he is talking about? It is not only small start-ups that do this innovation; the large companies with large resources behind them are already investing in it heavily. As the right hon. Member for Kingston and Surbiton (Sir Edward Davey) mentioned, the 1.3% invested by the 13 or so companies that are part of the oil and gas climate initiative works out at approximately $100 million a year. That is a very large number, even though the percentage sounds small.
Guy Opperman
I accept my hon. Friend’s point. The crucial point is that natural gas had been one of the biggest parts of reducing carbon dioxide in the electricity sector. Hydrogen derived from natural gas will decarbonise heating for homes and transport. The large companies are leading the way on carbon capture and storage. We must work with them to ensure that the successes, which we all want to see, continue.
We can see the changes that are taking place. Individual companies must answer for themselves. Last year, Shell, one of the largest companies that we are debating, agreed to link its executive pay to its carbon emission targets, in direct response to particular shareholders. The Minister for Energy and Clean Growth, my right hon. Friend the Member for Devizes (Claire Perry), would be here if she could, to make the case for the Government’s clean growth strategy and the green agenda. Like her, I urge individual consumers—anybody who has a particular pension—to make the case to their trustees as to how that is being invested.
Several hon. Members rose—
Guy Opperman
I am going to make some progress and then I will try to take the greatest hits—bear with me one second.
I accept that the technological changes require capital, long-term thinking and a lack of political agenda. I strongly believe that the pension industry has those attributes. I urge the House to accept that the Government’s regulations—namely the ESG regulations, which come in this year, but were passed in September 2018—which require a pension fund to update its statement of investment principles and take into account environmental, social and governance regulations, are key to the change to the strategic progress of investment.
To address the point made by the hon. Member for Norwich South (Clive Lewis), those occupational pension schemes regulations require that trustees must—the emphasis is on “must”—set out their policies on environmental, social and governance matters, including climate change, and how they engage with the companies in which they invest. Those regulations also introduced a requirement for trustees of DC schemes, where the member bears the financial risk of poor investment decisions, to report on how their investment policies are being put into action and make all of that information publicly available online.
For too long there has been a perception by too many trustees—I am happy to clarify this as a Government Minister—that the environmental practices of the firms they invest in are purely ethical concerns, which they do not need to worry about: that is utterly wrong. Aside from the ethical considerations, there are real financial risks resulting from climate change. With the long-term horizons of pension investing, trustees must now consider that when they set out their investment strategies. Trustees who do not consider those matters will be breaching their statutory and potentially their fiduciary duties not only to current but future members.
Guy Opperman
I will give way to the hon. Gentleman, who has not had a chance to speak.
Ben Lake
There is consensus that divestment from fossil fuels makes both financial and environmental sense. Further to the point that the Minister has just made, does he think that those changes will be sufficient to ensure that the industry actually makes that transition, or does he envisage further measures in the future?
Guy Opperman
I will come on to some of those particular points. In terms of regulatory guidance, which has been raised by several hon. Members, there is no doubt that the Pensions Regulator is planning to publish further guidance on managing the climate change risk in advance of those regulations, which come in to place in October. A key point is that non-compliance with those regulations can potentially lead to sanctions from the Pensions Regulator, which is acutely mindful of its obligations and what it needs to do to address this particular point.
As a Government, we will respond shortly to the advice from the Energy and Climate Change Committee on the target for net zero emissions by 2050. That advice was only published two weeks ago. Colleagues will be aware of the 25-year environmental plan, which has been set out in detail. It commits to using resources from nature more sustainably and effectively, and achieving a clean air, water and wildlife approach.
Alex Sobel
The Minister began by saying that Parliament has declared a climate emergency. Do the Government also recognise and declare a climate emergency? His remarks on the recent report from the Energy and Climate Change Committee indicate that the Government must declare a climate emergency.
Guy Opperman
The hon. Gentleman and I went into the same Lobby when we voted on that matter. He has heard that the House gave universal support to the debate that was taking place. I am not here to make policy on behalf of the whole of the Government, but the Government will respond formally to the 2 May report shortly. He will have to bear with us until that stage.
Guy Opperman
I will not give way again, because I have very little time left.
I want to address a couple of points made by the right hon. Member for Kingston and Surbiton (Sir Edward Davey). He asked whether we are creating a coalition of the willing. I strongly suggest that we are. We are working with the Institutional Investors Group on Climate Change, ClientEarth, ShareAction—which I have met on several occasions—and the UK Sustainable Investment and Finance Association. There is a serious amount being done to ensure we are aligned with the Paris agreement. The widespread global commitment to the Paris agreement suggests that trustees have a responsibility to align their investment strategies with its aims.
However, it is fair to say that there is no definitively agreed consensus on what being aligned to those aims of being below 2° mean for a specific pension fund and its asset allocation. That is why I am delighted to see the initiative of the Institutional Investors Group on Climate Change, which is developing a common understanding of what such alignment means for pension schemes, and the Government will work with it on that point.
Green finance is a key priority for my right hon. Friend the Minister for Energy and Clean Growth, who set up the green finance taskforce which, with the clean growth strategy, will drive economic growth as part of industrial strategy, to ensure that the UK remains a driving force in enabling the global transition to a low-carbon economy. A green finance strategy paper will be launched later this year, which will set out the Government’s green finance objectives on an ongoing basis.
I want to talk about consumers. It is absolutely the case that members can make individual choices. They can choose to move their individual pension into a self-selected fund that aligns with their own objectives, such as an ethical fund. We massively support such an approach and feel that it is the right thing to do.
On transparency, which my hon. Friend the Member for Banff and Buchan (David Duguid) mentioned, the Government intend to announce further transparency measures on the topic of responsible investment in the coming weeks, in respect of the shareholder rights directive. This Government absolutely accept that there is a climate emergency and we are addressing this. I thank the right hon. Member for Kingston and Surbiton for bringing forward this vitally important debate, which all of us have engaged with and embraced as the right way forward. I look forward to updating the House on further developments, particularly in October after the regulations kick in.
Work and Pensions
Guy Opperman Excerpts(5 years, 7 months ago)
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Ruth George
When the changes were debated back in 2012 as part of the Welfare Reform Act, universal credit was still a similar level of benefit to tax credits. Since then, following the 2015 budgetary changes, universal credit has been worth significantly less, and increased numbers of people on universal credit are in poverty. Does the Minister not agree that that should be a reason for Parliament to debate again the changes that will affect hundreds of thousands more, often vulnerable, households, in the light of the changed circumstances?
Guy Opperman
With respect, Parliament has debated the matter and made a decision. The hon. Lady will be aware of the 2011 equality impact assessment, the 2012 risk assessment, the universal credit impact assessment, and the ad hoc statistical analysis that was published on 28 February, which outlined the number of people affected, as the hon. Gentleman mentioned—approximately 115,000 mixed-age couples in the United Kingdom.
[Official Report, 24 April 2019, Vol. 658, c. 315WH.]
Letter of correction from the Under-Secretary of State for Work and Pensions, the hon. Member for Hexham (Guy Opperman):
An error has been identified in my response to an intervention from the hon. Member for High Peak (Ruth George).
The correct response should have been:
Guy Opperman
With respect, Parliament has debated the matter and made a decision. The hon. Lady will be aware of the 2011 equality impact assessment, the 2012 universal credit impact assessment, and the ad hoc statistical analysis that was published on 28 February, which outlined the number of people affected, as the hon. Gentleman mentioned—approximately 115,000 mixed-age couples in Great Britain.
Oral Answers to Questions
Guy Opperman Excerpts(5 years, 7 months ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)
We spend more than £120 billion on benefits for pensioners, including the state pension, which is now worth £1,600 more than in 2010. Means-tested benefits are adjusted according to changes in circumstances, and it is not possible to say how many pensioners have had an increase or reduction, but it is the case that this Government spend more on pensioners than any Government have ever done before.
Stephen McPartland
More than 750,000 pensioners are in receipt of disability living allowance, and those who turned 65 after April 2013 are being kicked off DLA and are forced to apply for personal independence payments. Many of them are not applying, and of those who do, some are not receiving PIP. Why are we not transferring these pensioners across automatically?
Guy Opperman
It is right to say that 75% of all reassessed claimants receive a PIP award, and nearly 67,000 more people aged 65 or over are on either DLA or PIP than when PIP was first introduced in 2013. I take my hon. Friend’s point, though, and the Minister for Disabled People will be happy to meet my hon. Friend. I am sure he would make the point that the Government spend more than £20 billion on DLA and PIP, which is up from £15 billion in 2012.
David Hanson (Delyn) (Lab)
The inquest for my constituent Joy Worrall took place last Thursday. Joy was 82 years old. It was confirmed that she had committed suicide after the DWP wrongly stopped her benefits and her winter fuel allowance for a period of 15 months before her death. At the time of her death, Joy had £5 in her account. Will the Minister and his right hon. Friend the Secretary of State undertake, for the family, who have asked me to do this for them, an urgent inquiry into why Joy was not paid her pension or her winter fuel allowance for that period? Will he ensure that nobody will ever again commit suicide because of poverty?
Guy Opperman
The right hon. Gentleman rightly raises his constituent’s case; I have already spoken to him on two occasions. Our thoughts are with Mrs Worrall’s family and friends. The Government apologise unreservedly for the clerical error—it was a clerical error—that led to Mrs Worrall’s pensions payment being stopped. We have urgently reviewed our processes and acted so that benefits are no longer linked on our systems, to try to ensure that this does not happen again. There is an internal process review; I undertake to write to the right hon. Gentleman in the short term with what we know and with more detail when the urgent process review has taken place. I am including Mr Worrall in that process.
Sir Peter Bottomley (Worthing West) (Con)
It would be helpful if every member of DWP staff were able to get to a Minister if something absurd was happening, rather than getting stuck in bureaucracy.
May I take the Minister back to his £1,600 extra? Will he review House of Commons briefing paper 01457, on the history of frozen overseas pensions for half our overseas pensioners? It is absurd that an agreement with New Zealand in 1948 and a written parliamentary answer in July 1955 should determine that people who leave this country to retire abroad do not get pension increases in half the countries around the world but do so in the other half. It is time that we had a proper debate and a proper decision, and got past the legalistic approach taken by this Government and previous ones.
Guy Opperman
My hon. Friend raises several points, but unquestionably the situation in relation to overseas pensions has been consistently enforced by every Government of every persuasion since the second world war, and there is no anticipation of changing that.
Of course, we will ensure that individual members of DWP staff up and down the country are able to go to their line managers and then to Members of Parliament or individual members of the Government on an ongoing basis.
Jack Dromey (Birmingham, Erdington) (Lab)
Pensioner poverty halved under the most recent Labour Government; it has increased by 400,000 under this Government, with one in six pensioners living in poverty. Having broken one manifesto pledge on TV licences, Ministers are now breaking a second one, as mixed-aged couples are no longer being paid pension credit if one of them is under retirement age. How can the Government begin to justify the breaking of a solemn promise, particularly in circumstances where it will cost the couple concerned a staggering £7,320 a year?
Guy Opperman
The hon. Gentleman will be aware that the overall trend in the percentage of pensioners in poverty is a dramatic fall over several decades. The rates of material deprivation for pensioners are at a record low at this stage.
On the hon. Gentleman’s second point, couples who currently receive pension credit or housing benefit will not be affected by the change, as long as they remain entitled to either benefit. Claimants who would be eligible for pension credit or housing benefit for pensioners under the current rules but have not claimed before 15 May have until 13 August to make a backdated claim.
Jack Dromey
From Carillion to BHS, workers’ pensions are being put at risk by bad bosses, sloppy practices and poor enforcement. We have campaigned against that injustice. The defined benefit White Paper has proposed stronger powers and penalties. Ministers have promised to introduce such legislation, which we would support. Will the Government keep at least this promise so that we can send out a joint message that says, “Never again a Philip Green”?
Guy Opperman
We are agreed across the House that there must be action on defined benefits so that we stop what took place with Philip Green, and to address that the Secretary of State has brought forward proposals in the defined benefit White Paper. We propose to bring forward a Bill, when parliamentary time allows, to address the DB White Paper, collective defined contributions, Dashboard and a number of other matters, and I look forward to working with the hon. Gentleman on a cross-party basis to make that happen.
Tom Pursglove (Corby) (Con)
Tonia Antoniazzi (Gower) (Lab)
The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)
The hon. Lady knows that the policy pursued by this Government is the same policy that was pursued during the 13 years of the Labour Government and all other Governments since the second world war. It is a consistent approach that is absolutely endorsed by the present Government, and I am afraid there are no plans to change the policy at present.
Mrs Sheryll Murray (South East Cornwall) (Con)
Paul Masterton (East Renfrewshire) (Con)
What progress is being made to support more people in East Renfrewshire into an occupational pension scheme through auto-enrolment?
Guy Opperman
It was a great pleasure to visit Barrhead with my hon. Friend and meet his outstanding credit union, which is one of 1,290 employers providing 5,000 employees across his East Renfrewshire constituency with automatically enrolled pensions. It is a cross-party success story, with 10.4 million people now automatically enrolled.
Stephanie Peacock (Barnsley East) (Lab)
If it is true that work is the best route out of poverty, why did food banks in Barnsley give out more than 1.5 million food parcels last year, many to people in work? Why is it that in the Secretary of State’s own constituency low income has overtaken benefit delays as the biggest reason people are referred to Hastings food bank?
Stephen Kerr (Stirling) (Con)
For clarity, can the Minister confirm that the Scottish Government have power under section 24 of the Scotland Act to top up reserve benefits, including for anyone affected by future changes to mixed-age couples’ benefits?
Guy Opperman
I thank my hon. Friend for giving me the chance to clarify that sections 24 and 26 of the Scotland Act enable the Scottish Government to make top-up or discretionary payments to any person in Scotland who is in receipt of any reserved UK Government benefit. Put simply, the ball is in the Scottish Government’s court.
Christine Jardine (Edinburgh West) (LD)
A constituent of mine is being passed from pillar to post by the DWP and the Scottish student loans group, both of which say she is entitled to support. She wants to start studying full time in September but, as a single parent, cannot do so without appropriate financial support. Will the Secretary of State or one of her Ministers meet me to see whether we can find a way out of this Catch-22 situation and ensure that my constituent and other single mothers like her, who want to improve their families’ opportunities, have the support to do so?
Rachael Maskell (York Central) (Lab/Co-op)
According to the Joseph Rowntree Foundation, 1.9 million pensioners now live in poverty, which is a complete disgrace. Given that 46,000 pensioners died prematurely last year, why has the winter fuel allowance not been increased for more than a decade?
Guy Opperman
It is not specifically the case that pensioners are in poverty compared with previous records, which show that pensioner poverty is coming down. I will write to the hon. Lady in respect of her specific point about the winter fuel allowance.
Mrs Emma Lewell-Buck (South Shields) (Lab)
I listened carefully to the Minister’s earlier answer to my hon. Friend the Member for Birmingham, Erdington (Jack Dromey). It was simply not good enough because in just two days’ time changes by this Government to mixed-age couples’ benefits will make them ineligible for pension credit and force them both to apply for universal credit, which will result in many losing thousands of pounds. With one in six older people already living in poverty, is it not time that the Minister rethought the changes, or is he determined to increase those shameful levels of poverty?
Guy Opperman
Pension credit is intended to provide long-term support to economically inactive pensioner households. It is not intended to support working-age claimants. This change ensures that people cannot access pensioner benefits before they have reached state pension age, so taxpayer support is directed to where it is needed most.
Carol Monaghan (Glasgow North West) (SNP)
Earlier this year I met representatives of those who carry out work capability assessments and representatives from the previous disability Minister’s office. I was assured that those carrying out capability assessments were well aware of unseen conditions such as ME, but since then I have been overwhelmed with correspondence saying that people with ME are being declared fit for work. What work is the Minister doing to ensure that the assessors are aware of conditions such as ME?
Working at Height: Safety
Guy Opperman Excerpts(5 years, 7 months ago)
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David Hanson (Delyn) (Lab)
I support the hon. Member for Glasgow Central (Alison Thewliss) in commending the APPG report to the Minister and to the House as a whole. I have played a small part in the group, but was able to attend a number of sessions and helped to sign off the report’s recommendations. I have done so because it is self-evident and important that we must try to reduce still further the number of deaths and injuries caused by falls from height.
My first memory of my dad was visiting him in hospital after he had suffered an industrial injury and was off work for six months. It is important to remember that it is not just the individual who is affected by an injury at work, but their family, as the hon. Lady said. Although my dad was not injured by a fall from height, the Health and Safety at Work Act 1974 and the Work at Height Regulations 2005, which were both passed by a Labour Government, are critical pieces of legislation. They ensure that those who work at height, either for big businesses or when self-employed, come home safe, contribute at work safely and are free from injury or—in some cases, sadly—death, as a result of their efforts at work.
We have a responsibility not only through business, central Government regulation and legislation passed by this House, but through the exploitation and promotion of good practice, to ensure that we do all we can to make that happen. The report shows that in the last year for which we have figures, 18% of people who died at work died as the result of a fall from height, so inroads the Government make in tackling that challenge will help to reduce the overall number of deaths at work. Our figures are very good compared with other European countries, partly because of the legislation passed to date, but as the hon. Lady said, the report mentions some important ways we can not only build on the regulations that place duties on employers, self-employed people and any individuals who contract people to work at height, including building owners, facility managers and householders, but rise to the challenges set out in the report. I look forward to hearing what the Minister thinks the challenges will be.
The hon. Lady mentioned the importance of reporting. There is now a reporting mechanism, but the APPG’s report asks for enhanced reporting to examine still further, and at a minimum, the scale of the fall, the methods used and the circumstances—to get as much information as possible about the fall, so that we can learn and help to prevent future injuries. Is the Minister happy with the current level of reporting and with the demands put on it? Is there scope to improve reporting, as the hon. Lady and the report have requested? If so, as Minister, he has a duty to improve reporting and prevent future injuries and deaths.
The hon. Lady mentioned that our report asks for an independent body to ensure that we allow confidential, enhanced digital reporting of near misses. Reporting a number of near misses that could have resulted in death or serious injury is crucial to oblige good practice and to ensure that we reduce the potential danger and the threat of poor behaviour. What is the Minister’s view on an independent body? Does he think it worthwhile or would it be an additional burden on business? I do not think it would be, but I would like some clarity on that, because it is important that we have that level of support.
The hon. Lady mentioned the Working Well Together campaign and the Working Well at Height safety campaign for industries outside the construction sector. Many businesses regard that as a critical part of their work for training, assessments and so on. For some businesses, however, working at height might be occasional and not central to their daily work. What is the Minister’s view on the Working Well Together Campaign? Can it be improved? He has the ability to make changes if his good team of officials assess them and support him in doing so.
The hon. Lady mentioned Scotland’s fatal accident inquiry process, and I think that there is merit in that. If I get nothing else from the Minister today, I would welcome confirmation of whether he has even looked at Scotland’s fatal accident inquiry process. If he has, what is his assessment of it? I am not asking him today to expand it; I am just asking whether he has looked at it. Have his officials looked at it? Will he be reviewing it? Will he bring to the table an assessment of whether lessons from Scotland could improve safety at work?
The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)
I want to help the right hon. Gentleman. Perfectly legitimately, he is making, as did the hon. Member for Glasgow Central (Alison Thewliss), a number of particular points. It may also help colleagues who have yet to speak if I make this brief point in an intervention. Clearly, this matter requires the Health and Safety Executive to report back to the Government on it. The Government would rightly be criticised if they were too definitive without first receiving a specific response from the HSE. I assure the right hon. Gentleman that I will attempt, within the bounds of what I am able to say, to answer the points raised by the hon. Lady and by him, but obviously we are subject to the formal response by the HSE.
David Hanson
I am grateful to the Minister for putting that on the record. He knows that I acknowledge that relationship, but the key point is that, as the Minister, he can commission work, ask for reviews and, if he has not already, ask the Health and Safety Executive to look at the Scotland fatal accident inquiry process to assess whether any improvements have been made.
Finally, the report also suggests a review of working-at-height culture. Potentially, with the great modern technology we have, that includes mechanisms that the hon. Member for Glasgow Central mentioned, such as drones and other activities. We do not wish to put people out of work, but the threats and dangers of certain aspects of work can be minimised by advancing technology. Again, the Minister has the overview to work with the Health and Safety Executive, that great Labour Government invention, to reduce the number of deaths and injuries at work.
I support what the hon. Lady said, and I want to put on record my support from the Labour Back Benches for the recommendations. I hope that our discussions over 18 months to two years will result in some changes that prevent injury and loss of life, and give some people the opportunity to go back to work the following day, contributing to our economy without threat to their life or their family’s future.
Chris Stephens (Glasgow South West) (SNP)
It is a pleasure to see you in the Chair, Mr McCabe. When I saw your good self and the Minister sat there, I thought that I was in a Select Committee. I was ready to ask him impertinent questions—
Chris Stephens
I will perhaps have to quote the Minister’s comment back at him during a future inquiry.
I congratulate my constituency neighbour, my hon. Friend the Member for Glasgow Central (Alison Thewliss), on all her work on working at height, which is particularly prevalent in sectors such as construction. I come from a trade union background and was a Unison activist in Glasgow, and we were very aware of such issues, in particular those around whether workers should get additional payments for the context in which they work—at height, for example—and so on. We should remember that in some sectors of the economy, blacklisting by employers was prevalent, often of individuals who expressed the health and safety concerns of workers. That is a real problem and it is still happening. Blacklisting is illegal, but some evidence presented to the Select Committee on Scottish Affairs last year suggested that the practice continues. I refer Members to the early-day motion in my name that calls for a public inquiry into blacklisting.
Every fall from height can have life-altering consequences for workers and their families. The working-at-height culture needs to improve, as the APPG report demonstrates clearly, but sadly the issue does not yet appear to be at the top of decision-making agendas. Lack of data prevents us from understanding the causes of falls from height, which is compounded by a cultural obstacle to supporting people to report unsafe practices.
This excellent report looks at the issues that the right hon. Member for Delyn (David Hanson) talked about, in particular the four primary recommendations: the enhanced reporting system; the appointment of an independent body to allow confidential, enhanced and digital reporting of all near-misses, to be shared with Government and industry to inform health and safety policy; the extension of the Working Well Together programme; and the extension of the Scotland fatal accident inquiry process to other parts of the United Kingdom.
Another concern to share is that, under the coalition Government, the HSE suffered cuts and job losses. Many of us from a trade union background and those Members in Parliament at the time had real concerns about the deregulation of health and safety and the reporting of it. I hope that the Minister will tell us what the existing staffing levels are at the HSE, because I would be concerned had the numbers reduced over the past 10 years. Clearly, we should not be cutting jobs at the Health and Safety Executive.
In Scotland, under section 29 of the Inquiries into Fatal Accidents and Sudden Deaths etc. (Scotland) Act 2016, Ministers are required to report on fatalities. Fatal accident inquiries are the legal mechanism through which deaths in the workplace are investigated. Inquiries are mandatory for deaths occurring in the workplace, as well as in custody, or when the circumstances are deemed to be in the public interest, and they are usually held in the sheriff courts. The outcomes of all fatal accident inquiries since 1999 are publicly available and can be accessed online via the Scottish Courts and Tribunals Service. The all-party group calls for an equivalent system to be introduced in the rest of the UK, to ensure that employers are held to account for fatal injuries occurring as a result of workers falling from height, and that incidents are reported with sufficient information.
The Scottish Government are looking at the law on culpable homicide and considering proposals made by Members of the Scottish Parliament. For example, Claire Baker MSP launched a consultation, which ran from 7 November to 23 April this year, on how the law on culpable homicide can be tightened, and the related Bill appears to have cross-party support.
Companies can be prosecuted under the UK Government’s Corporate Manslaughter and Corporate Homicide Act 2007. We support the Act, but have concerns about the lack of prosecutions under it. Will the Minister talk a bit about that when he responds to the debate? Individual directors can also be charged with the common law offence of culpable homicide or with offences under health and safety legislation, but the SNP position is that if existing legislation can be improved by devolved legislation, we will consider what further steps should be taken.
In the 2018-19 programme for government, the Scottish Government committed to establish in spring this year a new support service—developed and delivered with Victim Support Scotland—to give families bereaved by murder and culpable homicide dedicated and continuous support. That is an important part of the Government’s programme. Wider work to look at the law of homicide is also under way. The Scottish Government asked the Scottish Law Commission to consider that law, and examination commenced in February 2018. Our view is that every fatality at a place of employment in Scotland should be investigated, and that the nature of the deaths requires a detailed and often lengthy investigation involving complex, technical and medical issues and expert opinion. The law already allows individual directors to be charged, which of course is necessary.
I congratulate my hon. Friend the Member for Glasgow Central. Clearly, Scottish National party Members are leading the way in this Parliament in promoting the rights of workers. My hon. Friend the Member for Glasgow East (David Linden) is campaigning against discrimination against young people in the living wage; my constituency neighbour, my hon. Friend the Member for Glasgow South (Stewart Malcolm McDonald), is producing legislation on unpaid work trials; and I am promoting—this debate is another opportunity to do so—the Workers (Definition and Rights) Bill, which touches on issues such as a worker’s status. People in industries such as construction believe that they are workers or employees, but later find out that they are somehow self-employed. We need to get on top of the issue of precarious work.
Thank you, Mr McCabe, for chairing this debate. I commend to the House the report of the all-party parliamentary group on working at height.
The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)
Thank you for being in the chair in today’s debate, Mr McCabe. The hon. Member for Glasgow South West (Chris Stephens) is right that it feels a little like a reunion of the Work and Pensions Committee, but it is certainly a privilege to respond on behalf of the Government to a worthy and important report, and I will attempt to address as many of the points as I can.
I should explain from the outset that I am not the specific Minister with departmental responsibility for this matter. I convey the apologies of the Minister for Disabled People, Health and Work, my hon. Friend the Member for North Swindon (Justin Tomlinson), who will ultimately respond to the report on behalf of the Government. Departmental officials have briefed me on the report to allow me to respond to many points, which I will do to the best of my abilities. I reiterate the point that I made to the right hon. Member for Delyn (David Hanson)—that the HSE needs to feed the Government its views on the report as a whole and on the specific recommendations.
It is right and proper to thank all colleagues for attending; I think the hon. Member for Glasgow South West made the fair point that today, many constituents will enjoy the pleasure of their Member’s company at the local elections and the like. Otherwise, I am certain more would have been here. I put on the record the Government’s acceptance and acknowledgment of the cross-party working that went into the production of the report. That is to the credit of all colleagues who have worked together. I also thank the Access Industry Forum and all the witnesses. Sadly, we will have to discuss Brexit briefly in a moment, but it is often said that this Parliament is solely focused on thing, unaware that there are many other things that Members are doing. The issue we are talking about is of great worth and merit and is part of an ongoing process.
I will push back slightly on the right hon. Member for Delyn, who seemed to suggest that it was solely the Labour Government who were interested in these matters on an ongoing basis. He will be aware of the Factories Act 1961 and the Workplace (Health, Safety and Welfare) Regulations 1992. Successive Governments, of whatever shape or form, have attempted to address health and safety at work in a multitude of ways, to try to reduce the number of accidents and increase the degree of ongoing safety.
I spent 15 years representing claimants who had suffered similar injuries to those described by the hon. Member for Glasgow Central (Alison Thewliss) in her opening speech. I worked on approximately 200 or 300 personal injury cases concerning falls from height, sometimes union-backed. I endorse the comments of the hon. Member for Glasgow South West that there have been many examples where unions have been very supportive of members and have ensured that they got the best possible representation and compensation. I was lucky enough to represent many unions on an ongoing basis in cases in the past.
This issue affects a whole host of different industries. It is easy to say that it affects only scaffolders and roofers, but it can also affect farmers and, self-evidently, people who work in the oil and gas industry. Bluntly, it also affects the mum or dad who chooses to fix their own windows or roof, or to mess with their television aerial. There are many examples of individuals working from height without necessarily understanding the consequences of what they are getting involved with.
I welcome the debate. Let me say, for the avoidance of doubt, that this is an extremely important issue. I shall make a few preliminary points. First, the Health and Safety Executive has informed the Government that it will respond formally to the APPG’s report in due course. I have pressed for a specific timetable. I do not want to inscribe this in stone, but I am told that a response will be made within 60 working days at the very latest, and cover all the points raised in the report and any other issues raised in this debate that are outstanding. I assure the House that the HSE’s response will be deposited in the Library.
It is right to note—I do so not to make a party political point, but because we cannot discuss health and safety at work without putting this on the record—that Great Britain has lower levels of accidents and injuries at work than most nations. The report states fairly at page 6 that, since the introduction of the 2005 regulations,
“the UK has consistently had some of the lowest workplace fatality and serious injury rates in the European Union.”
The report cites the 2014 statistics for the UK and similar countries: the UK had 0.55 fatalities per 100,000 employees, compared with 3.14 in France and 0.81 in Germany. We all agree that one fatality is too many, but that should not detract from the fact that successive Governments have done good work in this field. I also recognise, if it needs to be recognised, that falls from height are a major cause of serious and fatal injuries. The right hon. Member for Delyn fairly made the point, with the poignant tale of his father, that this issue affects each and every person in our communities.
As a practising barrister, I was involved in cases concerning scaffolders and the like both before and after the Work at Height Regulations 2005 were introduced. The report rightly makes it clear that it is agreed that the regulations are fit for purpose and fundamentally appropriate. The HSE has indicated that it welcomes the report and the desire for action. A key strand of the “Helping Great Britain Work Well” strategy for health and safety is acting together, and it is pleasing to see the work at height industry coming together in this way. The HSE undertakes to continue working with stakeholders to promote better working practices in the industry to try to protect workers in the workplace.
The report recommends that the Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 1995—RIDDOR, as we all know them—should include enhanced reporting, so that additional intelligence is available. When those regulations were amended in 2013, the key change for work at height was the removal of the high fall—2 metres and above—and low fall categories. However, the free text box on the current reporting form where the reporter includes information about the incident remains the same, and can still be used to record additional information about any work at height incident. That text box can be used to record information about the height of a fall.
The report suggests that enhanced reporting would help to identify the causes of falls from height. It is not for me to come to that conclusion at this stage, but we will listen to the HSE before the relevant Minister comes to a view on that issue. The HSE and industry have already undertaken plenty of excellent work in investigating work at height accidents, and they have established the main reasons behind such falls. Much good guidance is already available from the HSE and industry that addresses this important topic. The Government feel that it is fundamentally more important to place emphasis on the need to follow existing guidance and good practice to prevent falls wherever practicable, or to mitigate their effects should a fall occur.
Another recommendation in the report is that an independent body should be appointed to allow confidential reporting, and that that reporting should include near misses and other non-RIDDOR accidents. The HSE is fundamentally supportive of efforts in this area, but wishes to respond in more detail. However, it is right to put it on the record—this addresses points that several Members made—that the HSE operates a complaints advisory team, to which employees and the public may report concerns about work at height and dangerous practices in the workplace. Crucially, people may make such reports anonymously, and that can lead to the HSE inspecting areas of concern. The Government believe it is important that near misses are reported first and foremost to the employer as soon as possible. It is the employer who needs to investigate and introduce controls.
The report further suggests extending Working Well Together beyond the construction sector. The Access Industry Forum already helpfully provides financial and resource support to Working Well Together, so its groups around Great Britain can run “Working Well at Height” safety and health awareness days. The HSE already works with the Access Industry Forum and Working Well Together. It will continue to promote them and will explore whether there is an appetite for extending the campaign outside the construction sector. The agriculture sector is well known for similar incidents, so the HSE will discuss with the Access Industry Forum how it might also support that sector. As a representative of a very strong farming community, I will be looking to the National Farmers Union in my area to see how it wishes to address this point locally.
A couple of colleagues mentioned Brexit. I wish to make it very clear that we agree with the statement on page 10 of the report that the Government must ensure that no change is made as a result of Brexit that makes individuals who work at height less safe. On that point, the Prime Minister has committed to protecting workers’ rights as the UK leaves the European Union. That includes specific health and safety protections. The Prime Minister has said that there will be no lowering of standards after Brexit.
Hon. Members mentioned the approach in Scotland, where fatal accident inquiries are reported on and then entered on a publicly accessible database. I accept that the report recommends that a similar process should be introduced for England and Wales. I do not want to give a politician’s answer, but I will do so, to a degree. This is an issue for the Ministry of Justice. To be fair to the Ministry of Justice, it is aware of the issue and is looking to respond as part of the HSE response and the Government’s response.
The Ministry of Justice will certainly come back to the hon. Member for Glasgow Central and the APPG on this matter, but I have been asked to make a couple of points in the interim. In England and Wales, the coroners’ courts make findings and reach conclusions. Although those are not routinely made available, they are read out in public at the hearing, and there is a system where the coroner will write to ask relevant bodies and organisations to take action if they believe there is a continued risk to life. Those reports and responses are published in “prevention of future deaths” reports by the Chief Coroner and are publicly available. On that particular issue, the Government at present have no plans to change the proven process, but we will wait to see what the HSE says.
Several colleagues spoke about the causes of falls. I think it is fair to say that there is a fundamental view that the causes of falls are already well known from the many HSE and industry investigations. It is questionable whether gathering additional information would reveal new causes, given the extensive work over decades to identify what causes falls. I endorse entirely the benefits of enhanced data and of drones providing better preliminary assessments of the proposed height at which one would be working. There is absolutely an ongoing desire to ensure that there are fewer injuries in the long term.
I am grateful to the hon. Member for Glasgow Central for her efforts, both in terms of the report and in bringing this important matter before the House. I hope Members are assured that there is a plan to take this matter forward. The Government will continue to support the work of the HSE and industry in reducing the number of serious injuries and fatalities, and we will provide a response shortly. The Minister with responsibility for this area looks forward to meeting the APPG and having an opportunity to set out the Government’s position following the HSE’s response.
Alison Thewliss
I thank everyone for coming and contributing to the debate. I appreciate what the Minister said about not perhaps being the correct Minister to cover this debate, but I appreciate the way in which he responded and the expertise he brought to the debate, which is important. I am glad that the HSE will provide a comprehensive response to the report, and that that will be made available in the Commons Library for others to see. That is useful.
I also look forward to receiving the reports on how fatal accident inquiries might be widened or used. I appreciate that that is a Ministry of Justice issue, but the implications of such inquiries, where we have seen them in Scotland, have been quite useful in their process and in making public recommendations. There is currently a much delayed and much publicised one going on about the Clutha helicopter crash in Glasgow. That has involved a huge evidence-gathering process. People will be able to go and watch, and in time the findings will come out. It is a good process for finding out where something has gone wrong and putting it right for the future.
The Minister is correct about the farming sector. The NFU was a keen contributor to the report. I had a conversation with the hon. Member for Strangford (Jim Shannon)—unusually, he is not in his place—who said he was away to fix something on the roof of his farm with a ladder and then he realised, “What am I doing? I am on my own here. Why would I go up on the roof with a ladder? Something could happen.” The House would be much poorer for the loss of him, so I am glad that he saw that. That story shows how easily decisions can be made that cause people to take risks without thinking them through and end up injured or worse. More can be done on educating the public about that.
There is still a need for enhanced reporting, so I urge the Minister to look at that. While there is the free text area within the reporting, it does not go far enough to gather the right information. We therefore do not know whether someone using equipment was trained, had particular qualifications or was part of any organisations that might have given advice. It would be useful to have as much background detail as possible to get to the bottom of what went awry to cause the accident.
Guy Opperman
I am interrupting the hon. Lady’s final peroration to add two points. First, I accept that that is a live issue; to pretend otherwise as to how we do that would be wrong. She has also reminded me that I failed to respond to a point raised by the hon. Member for Glasgow South West (Chris Stephens) about blacklisting, which is a loathsome practice. It is quite right for a Government Minister to make it absolutely clear that we wholeheartedly oppose such a process. Employers have a legal duty to consult employees and their representatives on HSE complaints. Blacklisting is absolutely not acceptable in any way, and full support will be given to those, of whatever shape or form, who bring forward cases of such heinous behaviour.
Alison Thewliss
I thank the Minister for adding that—I was about to come on to blacklisting and the risk that some workers feel on reporting when things are not right. Employees in precarious employment in particular feel that if they become a whistleblower, they could quickly and easily lose their job, with the issue going unresolved for the next worker to come up against as well. I urge him to consider whether the anonymous reporting scheme that he mentioned covers that eventuality. There may be a time lag between someone’s reporting and an investigation; investigating needs to be done more efficiently and quickly, so that there can be a resolution without that worker being put at individual risk of losing their employment.
I was glad to hear what the Minister said about workers’ rights. We will hold the Government to that—he had better believe that we will. Working at height is increasingly complex, because buildings and the employment spectrum are more complex. It is right that the regulations are looked at again to ensure that they are entirely fit for purpose, because things have changed dramatically since they were written and we need to ensure that they are always effective in protecting workers.
Question put and agreed to.
Resolved,
That this House has considered preventing serious injury and fatalities while working at height.