Social Security Advisory Committee: Winter Fuel Payment
Lord Dodds of Duncairn Excerpts(1 month, 1 week ago)
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Baroness Sherlock (Lab)
I am grateful to the noble Lord, especially for the first half of that encouragement. The Government had to make some difficult choices. Deciding not to pay the winter fuel payment to people who do not need it was one of those choices. Inevitably, that causes some challenge and concern, particularly for those who are around the margins, as with any system of means testing. That has been challenging, but I take the advice of the noble Lord and we will look again to make sure that we are properly explaining to people what is happening and that those who need this most will still get help. I hope that they will not just get the help of the winter fuel payment, but potentially thousands of pounds in pension credit as well.
Lord Dodds of Duncairn (DUP)
Have the Government carried out any assessment of the differential impacts across the regions of England and the countries of the United Kingdom of this decision to axe winter fuel payments for most pensioners? There will be different impacts. Coming from Northern Ireland, we know some of the concerns there are, and the different levels of information that have been given out about people’s eligibility for pension credit and the campaign to encourage uptake.
Baroness Sherlock (Lab)
My Lords, the situation is different in different parts of the country. In Scotland, it is complicated by the fact that this is the first year it is devolved, so we have had to legislate in a different way to enable us to do that for Scotland but not for elsewhere in the UK. The Government have sought to make sure, by writing, across the piece, to 12 million pensioners, that we are directly engaging and that people are as aware as possible. There are also campaigns going on with partners in local government and voluntary organisations, as well as a media campaign on radio, television and social media. I will certainly check, go back and review that, and if I have any concerns that it is not being done appropriately in some parts of the United Kingdom, I will very happily come back to the noble Lord.
Pension Credit
Lord Dodds of Duncairn Excerpts(1 month, 2 weeks ago)
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Baroness Sherlock (Lab)
My Lords, when the costings on this policy were done, the Explanatory Memorandum made it clear that the expectation was that it would save £1.3 billion in this financial year and £1.5 billion a year after that. That saving was on the assumption that pension credit would increase by five full percentage points, and it was net of any other DWP benefits that might go with that. Until we exceed that point, the savings are still there. We will not know where this lands until all the claims are in and processed. I simply say, finally, that I want everybody who is eligible for this to claim it. If we end up with more people getting not just the winter fuel payment but the pension credit, that can be worth an awful lot of money. The average pension credit award for a single pensioner is around £72 a week. This is worth having.
Lord Dodds of Duncairn (DUP)
My Lords, the noble Baroness will be aware that these matters are devolved to the Northern Ireland Assembly and Executive, but we are affected as much as any other part of the UK by the cuts to the winter fuel allowance and short uptake of the pension credit. What has been done to liaise with the Northern Ireland Executive to ensure that pensioners in Northern Ireland will have the same advancements, encouragements and incentives to apply for pension credit?
Baroness Sherlock (Lab)
My Lords, my department is working very closely with the devolved Administrations, including with colleagues in Northern Ireland, to make sure that campaigns for take-up are out there. However, the core issues around, for example, state pension are reserved.
Women’s State Pension Age
Lord Dodds of Duncairn Excerpts(8 months, 3 weeks ago)
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Viscount Younger of Leckie (Con)
As I made clear earlier, the report came out only on Thursday. We have said very clearly that we want to have enough time to be able to look carefully at all the details in the report. This touches on some of the points that the noble Lord has made.
Could I just say that the story the noble Lord has presented is not entirely the actual story? For example, it is important to remember the state pension age changes were considered by the courts during the ombudsman’s investigation. In 2019 and 2020, the High Court and the Court of Appeal respectively found no fault with the actions of the DWP. The courts made it clear that under successive Governments, dating back to 1995—and I make the point about successive Governments—the action taken was entirely lawful and did not discriminate on any grounds. During these proceedings, the Court of Appeal held that the High Court was entitled to conclude, as a fact, that there had been
“adequate and reasonable notification given by the publicity campaigns implemented by the Department over a number of years”.
Just to add to that, to be helpful to the noble Lord, since 1995 the Government have used various methods to communicate the state pension age changes, including leaflets explaining the legislative changes, advertising campaigns to raise awareness and directly writing to those affected. So I would just make the point that that is one of the complexities and that it is not all as the noble Lord says. As I have made clear before, this is one of many complex issues that we need to look at as a result of the production of this report.
Lord Dodds of Duncairn (DUP)
I thank the Minister for the Statement. On the general issue of the state pension, I warmly welcome the commitment by the Government, through the Chancellor of the Exchequer at the weekend, to the maintenance of the triple lock. It is extremely important that that assurance is given. I remember when we negotiated the confidence and supply agreement with the then Conservative Government, this was one of our central demands and the Government committed to that. I am glad that it remains in place.
On this issue of the WASPI campaign, I congratulate the women and those behind it, who—over many, many years—have brought it to this point. I understand the complexities, I understand it was produced only on Thursday and I understand the need for a considered look at it. Both the Opposition and the Government take that position. But I do worry, along with others, about this continued repetition of “undue delay”. It has been five years, as the Minister indicated, since this was first referred to the ombudsman and many more years that this has been under consideration. Can the Minister give your Lordships’ House some kind of indication of when this is going to come back to Parliament? We know the timescale for the remainder of this Parliament. It might not be that long. We need action as quickly as possible. The women concerned deserve that. The action has to be one that entails a clear commitment to proper compensation.
Viscount Younger of Leckie (Con)
I thank the noble Lord, Lord Dodds, for his support and endorsement of our stance on the triple lock and our decision to include it in our manifesto. On the points on WASPI that he has mentioned, absolutely—I think I have said this before—I recognise the strength of feeling and I am aware of the urgency in dealing with many of these matters. I probably will not repeat it again, but just to say it briefly, I have highlighted very clearly the complexity of the issues. The noble Lord would not expect me to be in a position to set out a timetable, even if I could. So I am afraid that I will disappoint him by sticking to the line, which is that we will be coming back to Parliament without undue delay.
Disability Action Plan
Lord Dodds of Duncairn Excerpts(10 months, 2 weeks ago)
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Viscount Younger of Leckie (Con)
I thank my noble friend for not one but two questions. Perhaps I can answer the first one by saying, as I think my noble friend said, that the Government have set out their intention to mandate higher accessibility standards for all new homes by raising the minimum standard in building regulations in England. I am not sure that I can help with the date, but I will certainly take that back to my colleagues in DLUHC. We will consult further on the technical changes needed to mandate the higher M4(2) accessibility standard, on changes to statutory guidance and on our approach to how exceptions will apply. Making the M4(2) the new default standard will require additional features, including a living area at entrance level, step-free access to all entrance-level rooms and facilities, and wider doorways and corridors, as well as clear access routes to windows. I hope that helps my noble friend.
He asked about day nurseries and support for disabled children under five. I happened to hear the Secretary of State for Education say that she was confident about the demand for nurseries being in a better place. I had better write to my noble friend about this specific issue. I hope I can provide similar reassurances.
Lord Dodds of Duncairn (DUP)
My Lords, I welcome the repeat of the Statement and the launch of the Disability Action Plan. One of the action areas that particularly struck me was about making playgrounds more accessible for everybody. That is an extremely important issue that a number of my colleagues in local councils in Northern Ireland have very successfully made a priority. I very much welcome its inclusion here; I commend the plan on that.
The Minister referred to other areas of work that disabled people have told us are priorities. These include employment and welfare reforms. As the Minister will know, the newly reformed Northern Ireland Executive and Assembly have responsibility for welfare, although we follow the principle of parity across the board in social security and so forth, for the obvious reason that to depart from what happens in the rest of the UK would cost an enormous amount of money to the block grant. While this is devolved in Northern Ireland, in effect we have to follow the same rules. Can the Minister assure me that, when proposals and their impacts are considered, there will be the closest possible consultation and work with the relevant departments in Northern Ireland and with the people who will be affected?
Viscount Younger of Leckie (Con)
Absolutely. I start by saying how pleased I am that the Northern Ireland Assembly is up and running. I was a Government Whip for the Northern Ireland Office, so I am very aware of many of the issues.
On the second point, as the noble Lord said, the remit of the Disability Action Plan is very much within the competence of the UK Government. However, we have engaged officials in all the devolved Administrations. I am pleased to say that we will work together with our counterparts where appropriate to our mutual benefit. One example is the foresight research that we will undertake, on which the devolved Administrations have expressed interest in working with us. I am sure the noble Lord will know that we have had and continue to have more than cordial relations with senior officials in Northern Ireland in order to maintain the necessary stability during the past two years.
On the noble Lord’s first point, about playgrounds, I am very pleased that he applauds this approach. I reiterate what we are planning to do. The disability unit will create an online hub of information for local authorities on creating accessible playgrounds and will explore the most effective way of creating guidance on how to develop more inclusive and accessible playgrounds. This is on the back of stakeholders having highlighted a lack of funding for local authorities, which is often a big issue. Obviously, we are exploring this with families with disabled members and with service providers to see how we will take it forward.
Food Price Rises: Impact on Low-Income Families
Lord Dodds of Duncairn Excerpts(1 year, 6 months ago)
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Viscount Younger of Leckie (Con)
Of course, the noble Baroness is right. I said at the beginning that much work is going on with regard to interaction with the supermarkets. A number of supermarkets have some urgent initiatives on the go. For example, ASDA has invested £73 million, allowing it to drop and lock prices for over 100 household products. The prices of these products were dropped by 12% on average and will remain this way until the end of the year. Morrisons has similar initiatives: it has cut prices on more than 500 products. It is more than this, and the noble Baroness will know that it is not just the UK. There are other countries, including Germany, where food price inflation remains high, at around 18% or 19%.
Lord Dodds of Duncairn (DUP)
My Lords, have the Government made any assessment of the impact on the food industry, and therefore the impact on prices for consumers, of the new labelling requirements, which appear to be quite onerous and are required under the Windsor Framework? The Government are now saying that these will apply not just to goods going to Northern Ireland but right across the United Kingdom. Severe concerns have been raised about the impact on food prices of those requirements.
Viscount Younger of Leckie (Con)
I do not have any figures to support an answer to give to the noble Lord, but what I can say—to which I alluded earlier—is that, in terms of supermarkets and profits, looking at the money side, there is no reason to believe that supermarket profit margins have significantly increased recently. The overall profits of Tesco and Sainsbury’s fell by 51% and 62% respectively in 2022-23. On the link with Northern Ireland, I will certainly look at my answer, and I may well write to the noble Lord.
Unemployment: Over-50s
Lord Dodds of Duncairn Excerpts(3 years, 9 months ago)
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Baroness Stedman-Scott (Con)
As I said, I thought that the idea of the noble Baroness, Lady Meacher, was excellent. I can only concur with the noble Lord that we should explore that.
Lord Dodds of Duncairn (DUP) [V]
My Lords, the pandemic has been particularly difficult for older people in terms of job losses. Even in normal times, far too many are out of work well before retirement age. We must do more to acknowledge the contribution to society and the economy of people of all ages, so what more can the Government do to cut out age bias in recruitment and training and to get companies to recognise the importance of age inclusivity?
Baroness Stedman-Scott (Con)
This will be part of the important work of the over-50s champion appointed by the Government, Andy Briggs. I reiterate that older workers have skills and experience that employers are looking for. It is up to us to work with employers to encourage and influence them to secure vacancies for older workers.
Commonwealth Countries: Reciprocal Pension Agreements
Lord Dodds of Duncairn Excerpts(3 years, 9 months ago)
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Baroness Stedman-Scott (Con)
The state pension has been uprated in the EU as part of long-standing provisions in EU law before the UK left the EU. The withdrawal agreement ensures that state pensioners who had already moved to the EU to retire while the UK was a member state will continue to have their state pensions uprated.
Lord Dodds of Duncairn (DUP) [V]
My Lords, more than half a million people are affected by having their pensions frozen while living overseas. The Government have said on a number of occasions that they do not intend to change the overall policy. How can it be right that something so iniquitous and unjust continues to persist, discriminating in respect of which countries people emigrate to?
Baroness Stedman-Scott (Con)
The UK Government have continued to honour their legal obligations in relation to uprating pensions overseas. While I realise this will be disappointing, we have no plans to change that policy at the moment.
Social Security Benefits Up-rating Order 2021
Lord Dodds of Duncairn Excerpts(3 years, 10 months ago)
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Lord Dodds of Duncairn (DUP) [V]
My Lords, I want to highlight three issues. First, on pensions policy, I welcome the Government’s proposal to increase pensions by 2.5%, in line with the triple-lock policy. Despite criticism, that triple lock helps to redress intergenerational unfairness and keeps pensioners’ incomes higher than they would otherwise be, given the relatively low basic level of state pension in the United Kingdom compared to other countries.
Secondly, regarding the Guaranteed Minimum Pensions Increase Order, I want to highlight the unjust frozen pension policy that affects some 500,000 pensioners who, despite paying into the system—and in many cases serving their country—have had their pensions frozen since they moved to places such as Canada, Australia, South Africa and so on. This is a wrong that needs to be put right. Will the Government explain whether action will be taken at long last to pay these pensioners what they are entitled to?
Thirdly, I refer to the £20 a week uplift to universal credit and the working tax credit given last year. Of course, legacy benefits should also have seen the same uplift and the Government should explain why people on legacy benefits have not seen a similar increase. The extra £1,000 and more in universal credit has been very important in helping to support people facing terrible financial disruption from increased unemployment, as well as from increased food, utility and other unavoidable costs as a result of living and working from home. It is clear that the disruption and financial hardship due to Covid will continue beyond April. I urge the Government—I know that this is not a part of today’s instrument, but it is a very relevant issue when we are talking about the uprating of benefits—to announce as soon as possible that the uplift will be extended, rather than waiting nearly until April, when we are approaching a cliff edge.
State Pension Age: Women
Lord Dodds of Duncairn Excerpts(8 years ago)
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Mr Shailesh Vara (North West Cambridgeshire) (Con)
I think we all recognise that in the world of politics, there are very few easy solutions, and solutions are certainly never cheap. As far as the matter that we are debating is concerned, the cheap version—to undo the Pensions Act 2011—would cost some £30 billion, and to undo the Pensions Act 1995 would cost many billions more. We must recognise that any pension scheme that we have must be sustainable, and the Government have a duty to keep it so. It would be irresponsible for the Government not to act with a view to keeping the pension scheme sustainable.
Much has been said about transitional arrangements. It is important that colleagues realise that there have already been transitional arrangements. Those who take the trouble to read Hansard will find that on Second Reading of the Pensions Bill of 2011, the Minister speaking for the Government said,
“we will consider transitional arrangements”.—[Official Report, 20 June 2011; Vol. 530, c. 52.]
On Report, the Government delivered on their promise, because they made a concession worth £1.1 billion and reduced the time period from two years to 18 months. For 81% of the women affected, the increase in the time period will be no more than 12 months. It is fundamentally wrong to say, as the last line of the SNP motion does, that there should be transitional arrangements.
Mr Vara
Forgive me; I am mindful of the time limit.
If people want to seek a change to what has already been done, they should have the courage to say so. They should say that they do not accept the transitional arrangements that have been made, and that they want further changes. To say that no changes were made is, frankly, disingenuous. As far as notification and the 1995 Act are concerned, let us not forget that the Labour party was in government for 13 years and it did very little—in fact, it did nothing—in the way of notification, even though some 10 Pensions Ministers could have done so. In 2012, research by the DWP found that only 6% of women who were within 10 years of reaching their pension age thought that their state pension age was still 60.
There are, of course, a number of other factors that need to be taken into account. It is wrong that debates such as this focus solely on state pension age equalisation and its impact on the women concerned. We have to take account of life expectancy, which is increasing. [Interruption.] It is good news, but nevertheless we have to take it into account. Employment prospects for women are far better than they have been at any time since the state pension was introduced in 1940. There is record female employment and record employment for older women. The Government have worked hard to engage with stakeholders and employers to make sure that they recognise and value all the contributions that older workers can make. There are also our broader reforms. We have protected the winter fuel payment, permanently increased cold weather payments, created a new and simpler state pension system, abolished the default retirement age and extended the right to request flexible working.
Social Security
Lord Dodds of Duncairn Excerpts(8 years, 3 months ago)
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Mr Nigel Dodds (Belfast North) (DUP)
It is a pleasure to follow the hon. Member for Fermanagh and South Tyrone (Tom Elliott). I want to support what my hon. Friend the Member for East Antrim (Sammy Wilson) said very powerfully about why we are here today debating this statutory instrument. It is important to emphasise that this is not a situation that we on these Benches wanted to see. We want to see the Northern Ireland Assembly legislate in those areas that are devolved, although it should be noted that the Scottish Parliament, with the extensive powers it has, does not have responsibility for welfare. This is an area where Northern Ireland took responsibility, and those who negotiated the 1998 Belfast agreement decided it would be a good idea to devolve welfare to Northern Ireland, with the massive cost that comes with that, although the vast bulk of it, as my hon. Friend said, comes from direct payments and not out of the Northern Ireland block grant. As a former social development Minister back when devolution began in 1999, I remind the House that the understanding was that there should be parity, because if we deviated from that, then Northern Ireland would have to pay for it out of the block grant. Areas such as hospital spending, education, the environment and housing would all have to suffer cuts to pay for any deviation.
This comes to the crux of the arguments that took place in the Northern Ireland Assembly in recent times. People in certain parties—notably the SDLP, and at times Sinn Féin and others—would say, “Let’s deviate, let’s do our own thing—we’re not accepting these welfare cuts.” Their proposal to try to get something for Northern Ireland was to say, “Let’s set up a committee, go and knock on the door of the Treasury, and demand that Northern Ireland receives hundreds of millions of pounds extra,” which was never going to happen.
Had this measure not been introduced—had the “Fresh Start” negotiations that took place primarily between the DUP and Sinn Féin not had a successful outcome—then by now we would have had full, untrammelled direct rule from this place. That is the reality of it. We would have had welfare changes in Northern Ireland that were exactly the same as those in England and Wales. There would have been none of the mitigations—none of the changes that we implemented, and wanted to see implemented. So the consequence of the approach of members of the SDLP and others who opposed a sensible compromise would have been full, untrammelled welfare changes of the sort that they say they oppose.
Tom Elliott
Can the right hon. Gentleman enlighten us, because I have not got to the bottom of it, on why Sinn Féin has done such a somersault on this? It totally opposed it for years, and then all of a sudden it seemed to come to its senses and accept the principle of it. Can he shed any light on that?
Mr Dodds
It is for Sinn Féin to explain its own position. It is not for me to speak for it, especially when its Members do not come to this House. Certain Members are often seen about the corridors. They are here to collect their allowances—their political representation money and their constituency office allowances—but that is all they do; they do not take part in any other parliamentary processes. I will therefore leave it to them.
The reality had to dawn on people in Northern Ireland that we were facing the collapse of the political institutions. It is a bit like a local council in England or Wales, or anywhere else, being told, “Here’s your financial settlement—here’s what you’ve got to work within,” and the leading party there saying, “Sorry, we’re not going to accept that. We’re going to set budgets that are way beyond that, we’re going to just ignore the financial realities, we’re not going to make any compromises which will safeguard the most vulnerable”—
Mr Dodds
No. The hon. Lady had plenty of time to put her arguments to the House, and the fact that she was unable to put any convincing arguments is her responsibility.
In terms of financial responsibility, serious parties of government—parties that are serious about running countries and being in government—have to take difficult decisions within the financial parameters that they are set, especially in a devolved Government. If we simply say, “We’re not going to do that—we demand that you give us more,” it eventually leads to collapse.
Let us remember that the people of Northern Ireland had their say—
Mr Dodds
No, no—the hon. Lady has had her opportunity to speak, and I am not giving way.
The people of Northern Ireland have had their say. There was an election in May in which they delivered their verdict on the whole social security debacle and on how the DUP and other parties had performed. The SDLP and certain other parties had their worst ever result in Assembly elections. The DUP was returned with one of its best results ever and is back at the head of government in Northern Ireland. The people of Northern Ireland saw very clearly what was going on. They recognised that parties and politicians have to face up to their responsibilities. If they are not serious about that, they will be rejected at the polls.
I, too, welcome this order. I wish the DWP Minister, who has moved from the Treasury, well in his work. I hope that we come to a point where we do not need such legislation to come to the Floor of the House of Commons and can get back to dealing with it in the Northern Ireland Assembly.