No, I do not agree with the noble Lord. For a start, there is no surplus in the fund that can be simply drawn on. The Government Actuary’s Department recommends that a surplus is kept in the national insurance fund to cover day-to-day variations in spend and the surplus is lent to the Government while that happens. It cannot simply be spent again. The money is invested, it is ring-fenced and there is no question of the Government being in a position to use this facility to extract money from the fund as an extra source of revenue.
The Minister quoted what the Government Actuary said. The surplus in the fund will be heading towards 60% but the surplus recommended by the Government Actuary is 16%. That is a difference of more than 40% of the fund. There is the money there.
I have no answer to that but I will make sure I get one. I assure noble Lords that the fund cannot be used for the purposes that have been put forward.
(2 years, 11 months ago)
Lords ChamberThe time taken to answer calls is checked, and the target is 90%. As I said, those key performance indicators have all more or less been adhered to. There is also a performance indicator to ensure the investment in infrastructure is there, which is very important. DWP has gone in to help contractors where there are issues—in particular, recently, with staffing.
The department is addicted to outsourcing. The Government have allocated nigh on £3 billion to the Restart collection scheme for universal credit claimants, to be delivered by private companies under payment by results. Will the Minister tell us how she will ensure that previous mistakes will not be repeated—with financial incentives leading to so called “parking” and cherry picking, and hard-to-help claimants, many of whom were most in need of help, receiving little or no support?
My Lords, the DWP is working extremely hard on making sure that these underpayments are repaid. It is putting in a new team of 360 people to work through it, and we hope that all those underpayments will be paid by the end of 2024.
My Lords, I thank the Minister for her reply, although in truth it leaves us none the wiser. Does she agree that there is a pattern here that is not simply, in her words, historical, since it is still happening, and not just through the continued discrimination against women in employment? There is also the clear failure to offer any pension to women on lower levels of pay on top of the inadequate new state pension. This pattern needs urgent attention. Governments can defer legislation that everyone agrees is necessary, but women cannot defer when they need a decent pension.
I lost some of the noble Lord’s question there. The state pension underpayment that we are talking about affects both men and women. We will have estimated costs and data in the department’s annual report and accounts, which will be published shortly. It is important that those people are paid what is owed to them and that we continue to ensure that women are getting their fair share of pensions into the future.