Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made, if any, of the degree of accuracy of the data from the Office for National Statistics on economic inactivity.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Recent data from the Labour Force Survey (LFS) is subject to significant uncertainty. LFS response rates fell from 49.3% in Q3 2013 [1] to 12.7% in Q3 2023 [2], which have led to a number of concerns about the quality of data based on the LFS.
As set out in its November 2024 Labour Market Overview [3], despite coherence challenges between LFS estimates and other data sources, the LFS continues to be the sole source of data for unemployment, economic inactivity and the self-employed. There are also a range of breakdowns that are only possible from LFS data.
The ONS is undertaking work to address these quality issues through improvements to its data collection and methodology [4]. The ONS is also continuing to develop the Transformed Labour Force Survey (TLFS) as the long-term solution for collecting labour market data [5].
While planned improvements are underway, LFS estimates remain volatile and will continue to be badged as ‘official statistics in development’ until further review. The ONS advise caution when interpreting changes in headline LFS rates and recommend using them as part of its suite of labour market indicators [6].
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether they have any plans to review the level of state contributions to public sector pensions.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The rate of employer contributions paid to the main unfunded public service pension schemes is assessed as part of scheme valuations every four years. The most recent employer contribution rates were implemented in April 2024.
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the long-term (1) cost, and (2) sustainability, of public sector pensions; and what assessment they have made of how such pensions compare to those paid in the private sector.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Independent Public Service Pension Commission led by Lord Hutton recommended in March 2011 that projected public service pension benefit payments as a percentage of estimated future GDP is the most relevant measure of their future affordability. This is because most public service pensions are financed through taxation, which is closely related to GDP.
The Office for Budget Responsibility forecast in 2022 that spending on public service pensions will fall from 2 per cent of GDP at present to 1.7 per cent by 2071-72. An updated forecast is expected to be published in the near future.
Remuneration in the main public sector workforces tends to be weighted towards pension relative to pay compared to packages typically available in the private sector. The total remuneration package needs to be considered when making any comparisons. The recommendations by the independent Pay Review Bodies for the main public service workforces take account of the total reward for each workforce, including the relevant pension scheme.
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the method for calculating financial support for the Northern Ireland Executive; and what consideration they have given to making changes to ensure equitable distribution of UK resources.
Answered by Baroness Vere of Norbiton
In the 2024 Northern Ireland Executive restoration financial package worth over £3.3 billion, the UK Government has committed to implement a 24% needs-based factor into the Barnett formula for the Northern Ireland Executive from 2024-25 onwards. The UK Government has no plans to replace the Barnett Formula. It is simple, efficient and provides a clear and certain outcome, which is why it has stood the test of time.
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the provision of finance to the three devolved administrations; and whether such provision is adequate to meet demand for public services in each area.
Answered by Baroness Vere of Norbiton
The devolved administrations are well-funded to deliver their devolved responsibilities.
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether the Northern Ireland Executive has requested more financial assistance for its budget for 2024–2025 to meet the growing demand for health services and pay settlements in in the health sector in Northern Ireland.
Answered by Baroness Vere of Norbiton
The Northern Ireland Executive (NIE) has responsibility for allocating its budget for 2024-25.
The NIE are well-funded to deliver their devolved responsibilities. As part of the 2024 Northern Ireland Executive restoration financial package, the UK Government committed to provide over £640 million of funding to the NIE in 2024-25. This includes £34 million to tackle health waiting lists in Northern Ireland.
The UK Government also committed to agree a Fiscal Framework for Northern Ireland as part of the Northern Ireland Executive’s restoration financial package.
On 21 May 2024, the Interim Fiscal Framework was agreed. This is an early and significant step in realising the commitment towards new funding arrangements for Northern Ireland. Included in this Interim Fiscal Framework is the application of the 24% needs-based factor in the Barnett formula for Northern Ireland.
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether the Northern Ireland Executive has requested additional financial assistance for their budget for 2024–2025; and if so, by how much, and for what purpose.
Answered by Baroness Vere of Norbiton
The Northern Ireland Executive (NIE) has responsibility for allocating its budget for 2024-25.
The NIE are well-funded to deliver their devolved responsibilities. As part of the 2024 Northern Ireland Executive restoration financial package, the UK Government committed to provide over £640 million of funding to the NIE in 2024-25. This includes £34 million to tackle health waiting lists in Northern Ireland.
The UK Government also committed to agree a Fiscal Framework for Northern Ireland as part of the Northern Ireland Executive’s restoration financial package.
On 21 May 2024, the Interim Fiscal Framework was agreed. This is an early and significant step in realising the commitment towards new funding arrangements for Northern Ireland. Included in this Interim Fiscal Framework is the application of the 24% needs-based factor in the Barnett formula for Northern Ireland.
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what discussions they have had with the Northern Ireland Executive pertaining to the budget for 2024–2025; and what was the outcome of those discussions.
Answered by Baroness Vere of Norbiton
The Northern Ireland Executive (NIE) has responsibility for allocating its budget for 2024-25.
The NIE are well-funded to deliver their devolved responsibilities. As part of the 2024 Northern Ireland Executive restoration financial package, the UK Government committed to provide over £640 million of funding to the NIE in 2024-25. This includes £34 million to tackle health waiting lists in Northern Ireland.
The UK Government also committed to agree a Fiscal Framework for Northern Ireland as part of the Northern Ireland Executive’s restoration financial package.
On 21 May 2024, the Interim Fiscal Framework was agreed. This is an early and significant step in realising the commitment towards new funding arrangements for Northern Ireland. Included in this Interim Fiscal Framework is the application of the 24% needs-based factor in the Barnett formula for Northern Ireland.
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether recurring financial provision will be made to implement the Windsor Framework; and, if so, what quantum they are expecting.
Answered by Baroness Vere of Norbiton
As set out in the Statement of Funding Policy, the UK Government will fund the direct costs associated with reaching the required level of compliance to implement the UK Government’s obligations under the Windsor Framework. Funding will continue to be provided to the Northern Ireland Executive for this purpose through the Estimates process.
Asked by: Lord Empey (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government which parts of the European Union Customs Code applies in the United Kingdom.
Answered by Baroness Vere of Norbiton
The United Kingdom left the EU on 31 January 2020.
The Windsor Framework, formally adopted by the United Kingdom and the European Union on 23 March 2023, and the ‘Safeguarding the Union’ Command Paper, published on 31 January 2024, set out the arrangements in respect of goods movements into and out of Northern Ireland.