Asked by: Lord Bourne of Aberystwyth (Conservative - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what steps they are taking to promote savings, particularly in pensions.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
Automatic Enrolment has succeeded in transforming pension saving with over 22 million employees participating in saving in 2023, an increase of over 10 million since its roll out in 2012. However, there is more to be done to build on this success as many people are still not saving enough for a financially secure retirement. This is why the government have relaunched the Pensions Commission which will explore how to improve retirement outcomes, especially for those at the greatest risk of under saving.
In addition to supporting pension saving, the government is committed to supporting people of all income levels and at all stages of life to save for their future goals and build greater financial resilience. This includes saving via Individual Savings Accounts (ISAs), which allow individuals to save up to £20,000 each year, and any savings income and gains within an ISA is tax free. Separately, the Help to Save scheme also aims to promote financial resilience among working households on low incomes. The existing Help to Save scheme has been extended until April 2027 and in April 2025 eligibility was extended to all Universal Credit claimants who are in work.
Through its MoneyHelper service, the Money and Pensions Service also offers practical tools such as savings calculators and budget planners to support people in developing regular saving habits, alongside specialist pensions guidance on how to grow their retirement pot. In addition, the government is working with the Financial Conduct Authority to roll out targeted support for consumers by early next year. This represents the biggest reform of the financial advice and guidance landscape in more than a decade and will represent a step change in the support that consumers receive to invest.
Asked by: Lord Bourne of Aberystwyth (Conservative - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what has been the increase in the uptake of pension credit since the announcement that winter fuel payments will be means-tested; and what estimate they have made of the likely cost of this to the Exchequer next winter.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The latest take up figures were published in October 2024. They showed that in financial year 2022/23, 65% of those entitled to Pension Credit claimed the benefit.
Data on Pension Credit claims and awards was published in November. It showed that there has been a 145% increase in Pension Credit claims received by DWP in the 16 weeks following the Chancellor’s Winter Fuel Payment announcement on the 29 July, compared to the number received in the 16 weeks prior to the announcement.
Benefit expenditure and caseload forecasts are regularly made publicly available by the Department. The latest published forecasts estimate that Winter Fuel Payments will cost £330m in nominal terms, for financial year 2025/26.
Asked by: Lord Bourne of Aberystwyth (Conservative - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what steps they are taking (1) to encourage the take up of Pension Credit, and (2) to simplify the application process.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The Department is running a national uptake campaign to encourage the estimated up to 880,000 citizens who may be entitled to Pension Credit apply for it. The Department is in the process of modernising the Pension Credit delivery and has previously undertaken an assessment of the application process and introduced online claims in addition to telephone and paper claims. DWP Agents and third-party organisations are available to support customers with the application process.
Asked by: Lord Bourne of Aberystwyth (Conservative - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what assessment they have made of the likely resilience of food banks during the upcoming winter.
Answered by Baroness Stedman-Scott - Opposition Whip (Lords)
There is no consistent and accurate measure of foodbank usage at a constituency or national level, including any assessment on foodbank resilience.
The Department for Work and Pensions introduced a set of questions into the Family Resources Survey (FRS) to measure and track foodbank usage in April 2021. The first results of these questions are due to be published in March 2023 subject to usual quality assurance.
Our commitment to include questions in the Family Resources Survey show how seriously we take this issue; the data is vital to ensure we understand the full picture