Social Care Strategy

Lord Davies of Brixton Excerpts

Thursday 10th October 2024 Lords Chamber

[Lord Davies of Brixton (Lab)]

I thank the noble Baroness, Lady Tyler of Enfield, for introducing this debate and for her fantastic introduction. I congratulate my noble friend Lady Keeley on her excellent maiden speech and add that I would really like to give my noble friend Lady Donaghy a virtual hug.

I want to make a joint or double point: carers deserve pensions—decent pensions. I am talking here about paid carers and unpaid carers. As far as paid carers are concerned, we had this great promise in the Labour manifesto of a fair pay agreement in the care industry. It would be a sector-collective agreement that would set fair pay terms and conditions along with training standards. That has to include decent pensions. I suspect that, because of the nature of employment within the care sector, relying on existing automatic enrolment provisions will not be sufficient. I hope that, in establishing the arrangements for the fair pay agreement, the need to consider pensions is built in and not there simply as an afterthought.

The treatment of unpaid carers and their lack of decent pensions—I have addressed this issue many times before—is one of the prime reasons for the gender pension gap. Whatever we may say about shared responsibilities, in practice it is women who end up undertaking the great majority of unpaid care. They do not get any pension, yet we have a pension system which relies on people earning. The basic state pension is not enough; they need a pension in addition, but do not get one because they are not being paid. Well, the state needs to provide them with additional pension top-up. I am not going to set out too much detail now about how that should be done but, for me, the most attractive option is some form of pension credits. In addition to the normal state pension, for the years that you provide unpaid care, whether for children or parents, you should receive additional credits for additional state pension. I hope that my noble friend will acknowledge these issues, which we will need to discuss.