Oral Answers to Questions

Debate between Jack Dromey and Guy Opperman

Monday 19th October 2020 Commons Chamber

[Guy Opperman]

I agree with my hon. Friend. The Government are setting a regulatory framework and enabling pension funds to make sustainable investments happen, whether that is through the Bill itself or through our illiquid investments proposals, which will see renewables, hydrogen and potentially new nuclear. We do not believe in divestment, but we welcome the change in investment practice that is already beginning to take place, although we want to see more.

[Jack Dromey (Birmingham, Erdington) (Lab) [V]]

With David Attenborough urging pension funds to move away from fossil fuels, it is hugely welcome that the Government have joined Labour to incorporate in legislation, for the first time ever, climate change commitments on pension funds. Now we must translate our ambitions into action. Previously, the Minister has received positively our proposal for a pension fund summit. Will he now agree to work with us—across party and bringing together the world of pensions to save our planet—to organise a cross-party climate change summit, because this is the biggest form of investment potentially worldwide in climate change pension funds?

[Guy Opperman]

As the hon. Gentleman knows, we are already working with a large number of pension funds and also with companies. We all want to see a safer, better and greener pension system. I am happy to work with him on an ongoing basis, and I am happy to reach out on a collaborative basis on this particular issue, which matters to all of us.

Oral Answers to Questions

Debate between Jack Dromey and Guy Opperman

Monday 14th September 2020 Commons Chamber

[Guy Opperman]

The hon. Gentleman knows that I cannot comment on live litigation, but he also knows that when the High Court heard the judicial review, it found for the Government on all the issues that he outlines. I point out that sections 24, 26 and 28 of the Scotland Act 2016 give the Scottish National party Government in Holyrood extensive powers to intervene, if they choose to do so.

[Jack Dromey (Birmingham, Erdington) (Lab) [V]]

Up to 130,000 women who have been denied their pension entitlements through pension underpayments are awaiting justice. An investigation is under way; when will it finally conclude so that those women, many of whom are in their twilight years, get the justice that they deserve? To make a bad situation worse, the Government pledged in their manifesto that they would honour the triple lock; we now hear that they are considering scrapping the triple lock when UK pensioner poverty is the worst in Europe. Will the Secretary of State commit today that her party will not add to its long list of U-turns by scrapping the triple lock?

[Guy Opperman]

I really think the hon. Gentleman needs to talk to his good lady wife, the right hon. and learned Member for Camberwell and Peckham (Ms Harman), because she was the Secretary of State for the Labour Government who so grievously underpaid state pensions such that the coalition Government and this Government have now transformed basic state pension so that it is more than £1,900 a year higher than it was a decade ago. That is thanks to the actions of the coalition Government and this Conservative Government. The House will be aware that the matters the hon. Gentleman raises in respect of category BL state pension were a result of the changes brought in by the regulations introduced under the Labour Government in 2008.

Work and Pensions

Debate between Jack Dromey and Guy Opperman

Wednesday 8th July 2020 Ministerial Corrections

[Guy Opperman]

I note the hon. Gentleman’s comments, and we invite anyone who thinks that they have failed to claim a state pension increase that they are eligible for to contact the Department through the Pension Service helpline. Alternatively, Pension Wise can assist.

[Jack Dromey (Birmingham, Erdington) (Lab) [V]]

Case after case is being uncovered of retired women being underpaid on their pension. To this day, many do not know about the Department’s mistake, and some have tragically died before learning of it. This must be properly investigated. Crucially, those women deserve justice. When will the Department work out how many women have been affected, and who they are? Will it bring forward a plan to contact them so that the women who built Britain get the justice in retirement that they deserve?

[Guy Opperman]

As the hon. Gentleman is aware, this dates from March 2008, when married women receiving a low-level state pension based on their national insurance record should have had their entitlement reviewed when their husband reached state pension age. The Department for Work and Pensions is looking into the matter, and we invite any individual who feels that they are affected to claim a state pension increase by contacting the Pension Service helpline or Pension Wise.

[Official Report, 29 June 2020, Vol. 678, c. 15.]

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 answers I gave to the hon. Members for Blaenau Gwent (Nick Smith) and for Birmingham, Erdington (Jack Dromey).

The correct answers should have been:

Oral Answers to Questions

Debate between Jack Dromey and Guy Opperman

Monday 29th June 2020 Commons Chamber

[Guy Opperman]

I note the hon. Gentleman’s comments, and we invite anyone who thinks that they have failed to claim a state pension increase that they are eligible for to contact the Department through the Pension Service helpline. Alternatively, Pension Wise can assist.[Official Report, 8 July 2020, Vol. 678, c. 4MC.]

[Jack Dromey (Birmingham, Erdington) (Lab) [V]]

Case after case is being uncovered of retired women being underpaid on their pension. To this day, many do not know about the Department’s mistake, and some have tragically died before learning of it. This must be properly investigated. Crucially, those women deserve justice. When will the Department work out how many women have been affected, and who they are? Will it bring forward a plan to contact them so that the women who built Britain get the justice in retirement that they deserve?

[Guy Opperman]

As the hon. Gentleman is aware, this dates from March 2008, when married women receiving a low-level state pension based on their national insurance record should have had their entitlement reviewed when their husband reached state pension age. The Department for Work and Pensions is looking into the matter, and we invite any individual who feels that they are affected to claim a state pension increase by contacting the Pension Service helpline or Pension Wise.[Official Report, 8 July 2020, Vol. 678, c. 4MC.]

Oral Answers to Questions

Debate between Jack Dromey and Guy Opperman

Monday 9th March 2020 Commons Chamber

[Guy Opperman]

We have the 2017 review, which we continue to monitor and will implement going forward. Automatic increases are not part of the Government’s present plans, but I am actively looking to learn from private sector companies that are carrying out similar initiatives. I welcome my hon. Friend’s interest and would be happy to discuss this in more detail.

[Jack Dromey (Birmingham, Erdington) (Lab)]

Auto-enrolment, the creation of the last Labour Government, has transformed the lives of millions, with 10 million more now saving into a workplace pension, but 5 million people are still not covered because they are too young, because they earn too little or because they are self-employed.

The hon. Member for West Worcestershire (Harriett Baldwin) is right that 8% cannot be the summit of our ambition to ensure security and dignity in retirement. Does the Minister agree that 8% cannot be right, and will he agree to cross-party talks on putting right that wrong?

[Guy Opperman]

As the hon. Gentleman knows, we frankly speak far too often—virtually on a weekly basis —to ensure a cross-party approach to pensions policy. He is right that automatic enrolment was conceived under a Labour Government, implemented under the coalition and brought forward by the Conservatives. I accept that 8% is not enough going forward, but we await the 2017 review, the implementation of that review and further discussions on an ongoing basis.

Oral Answers to Questions

Debate between Jack Dromey and Guy Opperman

Monday 27th January 2020 Commons Chamber

[Guy Opperman]

It is a pleasure to welcome my hon. Friend to the House. She obviously knows that Ken Clarke was a legend to us all, and I am sure that she will be a great champion on behalf of the citizens of Rushcliffe.

Sadly, too few schemes are making any form of disclosure about their environmental investments and their climate risk, and I am determined to change that. Every private occupational pension holder should be able to know, individually, how their fund is invested and be able to hold the trustees and asset managers to account.

[Jack Dromey (Birmingham, Erdington) (Lab)]

With Australia burning, South sea islands drowning, millions suffering from pollution and many dying, the world faces an unprecedented climate crisis. The power of pension funds is immense and, while I welcome the funds that have demanded that investment managers must, in the words of the Minister, “do the right thing”, so much more can, and should, be done. Will he therefore agree to cross-party, Front-Bench discussions, including on convening a pensions summit of all those with power, urging them to discharge their responsibilities to clean up our world?

[Guy Opperman]

I have been fortunate to work with the hon. Gentleman on a number of policies over the two and a half years that we have both held this portfolio. Clearly, I will wait to see the details of his proposals, but I would be delighted, subject to having read and considered them properly, to meet him and, at the very least, discuss how we take these matters forward.

--- Later in debate ---

[Jack Dromey (Birmingham, Erdington) (Lab)]

The Government have said that the aim of the Pension Schemes Bill is to support pension saving, putting the protection of people’s pensions at its heart. However, this weekend, we learned that the Financial Conduct Authority is preparing to write to just over three quarters of firms that advised individuals on pensions between 2015 and 2018 about “potential harm” in their defined benefit transfer advice. How can the Government claim to have a joined-up pension policy when pension freedoms can be exploited, giving licence to rogue financial advisers to put at risk people’s savings for retirement? Some have paid a terrible price, impoverishing them for years to come.

[The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)]

The hon. Gentleman will realise that FCA rules already require an individual to seek independent advice when making a DB transfer, but I urge the FCA both to crack down on transfer scammers and to ensure that the quality of advice is fit for purpose. I welcome the FCA’s action at this stage.