Working Practices (International Agreements Committee Report)

Lord Hendy Excerpts

Thursday 19th May 2022 Lords Chamber

[Lord Hendy (Lab)]

My Lords, I too congratulate my noble friend Lady Hayter of Kentish Town on securing this debate and on the excellence of her introduction to it. I find it hard to see how anybody could disagree with anything she said—maybe that will be the case. I also congratulate the committee she chairs on its report. Again, I find it hard to see how anybody could disagree with its contents.

I am very conscious that most of the members of the committee are present this afternoon; perhaps they will forgive me if I draw attention to one passage, from paragraphs 94 and 95, of the report. There, the committee speaks of looking forward to the future and says:

“if a future administration is open to reforming the statutory framework, then priority should be given to ensuring the following three improvements:

(a) In respect of trade agreements, Parliament should be given a formal role in influencing the objectives when mandates are being set and this should be done transparently;


(b) In respect of all other agreements, Parliament should be provided with a final draft text, in advance of signature, so that any significant issues can be raised before the agreement is signed and the text is set in stone;


(c) That Parliament’s consent should be required, prior to ratification, for all trade agreements, and other significant treaties which are drawn to the special attention of either House.


Without such powers, Parliament’s scrutiny of agreements is extremely constrained.”


I find it difficult to see how anybody could disagree with those recommendations, but in its response, the Government did disagree. The basis of that disagreement is that those proposals were

“not suited to the UK’s constitutional settlement.”

I have two questions for the Minister. First, to what principles or provisions of the constitutional settlement are those proposals not suited? Secondly, given that we do not have a written constitution but merely a constitutional settlement, what can be the objection to adopting those proposals now? It will not do to say simply that they are not consistent with CRaG.

Social Security Benefits Up-rating Order 2022

Lord Hendy Excerpts

Wednesday 23rd March 2022 Lords Chamber

[Lord Shipley (LD)]

My Lords, I thank the noble Lord, Lord Davies, for his regret Motion, which I agree with.

It is estimated that one in five pensioners in the UK is living in poverty, that 1.3 million retirees are undernourished and that 25,000 pensioners die each year due to cold weather. As we know, the cost of energy has doubled, and older people are more susceptible to the cold, particularly if they are housebound or suffering from a disabling illness.

The Government failed to accept that inflation was going to rise at an alarming rate when benefits and the state pension were uprated for this April. They insisted on basing the uprating on September’s inflation figure of 3.1%, as usual. The Motion of the noble Lord, Lord Davies of Brixton, quotes the Bank of England’s prediction of 7.25%, but that is now being fast overtaken by events, and a figure of nearer 10% is now forecast during the year. It is unthinkable that poor pensioners, at the end of their lives, should have to experience such a sudden change in circumstances. Up to now, they have been protected by the triple lock but, because of what was seen as a one-off adjustment in incomes as a result of a recovery from the pandemic, the Government abandoned the triple lock. Had it still been in place, a rise of 8% would have equalled the predicted rate of inflation in April, when the uprating comes into effect.

Age UK has estimated that soaring energy prices will plunge 150,000 older households into fuel poverty this winter. It has said that the number of fuel poor older households could reach more than 1.1 million by the spring, unless the Government take urgent action.

We have one of the least generous state pensions of any country in Europe, and it is still below its 1979 value. The triple lock was introduced in 2010 in the light of a hugely devalued state pension. Some recovery has taken place since then, but the state pension still does not provide enough support to keep 2.1 million pensioners out of poverty.

For women pensioners, the situation continues to get worse, with one in five now in poverty. Analysis of government figures shows that, in 2012-13, 14% of female pensioners across the UK were living in relative poverty—that is, they were living in households with less than 60% of median average household income, after housing costs. By 2019-20, this had increased to about 20%. That increase comes despite increases in women’s state pension age, meaning that the number of female pensioners in the UK has fallen by about 800,000 since 2012-13.

On these Benches, we think it is essential to protect the poorest pensioners who depend on the state pension and that it is crucial to bring the value of the state pension to a realistic level in relation to earnings and living costs. It is vital to make sure that those already in poverty and dependent on benefits do not become poorer than they already are. As has been said, it is not enough to claim that an upward adjustment will be made next year, because the problem exists now.

[Lord Hendy (Lab)]

My Lords, I rise to make a short point. Noble Lords have set out the human cost of the cut to social security earlier in the year, the failure to uprate it and to maintain the triple lock on pensions. As I understand it, the Treasury has saved £12 billion in so doing. The Minister will correct me if that figure is wrong but, whatever it is, billions have been saved.

I want to look at the other side of the equation. Those billions that have not gone to the poor people who have been described this evening is money that would otherwise have been spent, because poor people spend everything they receive: on food, on heating, on rent, and so forth. None of it is sorted away in the Cayman Islands; it is all spent money, and spent in the places where poor people live.

Sick Pay

Lord Hendy Excerpts

Monday 17th January 2022 Lords Chamber

Asked by

[Lord Hendy]

To ask Her Majesty’s Government what assessment they have made of the report by the Chartered Institute of Personnel and Development What should an effective sick pay system look like?, published on 14 December 2021.

[The Parliamentary Under-Secretary of State, Foreign, Commonwealth and Development Office and Department for Work and Pensions (Baroness Stedman-Scott) (Con)]

The CIPD report makes a number of interesting points on SSP, many of which had been raised previously by other stakeholders and continue to be assessed by officials. Last year, the Government made clear that the pandemic was not the right time to introduce changes to the rate of SSP or its eligibility criteria. However, as we learn to live with Covid-19, we are able to step back and take a broader look at the role of statutory sick pay. I can confirm to noble Lords and the House that this work is ongoing, but I am not able to give a timescale for when it will be completed.

[Lord Hendy (Lab)]

My Lords, I am most grateful to the Minister for her Answer, but the fact is that nobody can live on £96.35 per week—the rate of statutory sick pay—and the lower earnings limit excludes 2 million workers from receiving even this. Both features pose a public health risk by disincentivising those sick or who should be self-isolating from staying away from work. The report of the CIPD, a highly respected body representing human resource professionals, is formidable. It finds that 62% of British employers think that SSP is inadequate. In the light of that, will the Minister agree to look into increasing the rate of SSP and at the other recommendations? There are too many to summarise now, but they include removing the lower earnings limit, improving employer compliance and including the self-employed.

[Baroness Stedman-Scott (Con)]

I understand exactly the sentiment the noble Lord raises his question with. I can confirm again that work is ongoing to look at the role of SSP and all the CIPD recommendations. As I said, I am not able to give a timeline for this, but I will go back to the department and stress the noble Lord’s keenness to do this work.

Social Security (Up-rating of Benefits) Bill

Lord Hendy Excerpts

Report stage
Tuesday 2nd November 2021 Lords Chamber

[Baroness Blower (Lab)]

My Lords, like the noble Baroness, Lady Ritchie, I was unable to join the debate on the Bill at an earlier stage. At this late stage, I will not, of course, be giving anything like a technical speech; I leave that to my noble friends Lord Sikka and Lord Davies. However, I have received a volume of correspondence on this matter. In this brief intervention, I will summarise the arguments in that correspondence.

All of the correspondence provides evidence, albeit anecdotal, that the removal of the triple lock will cause serious and significant financial problems. As my noble friend Lord Sikka has said, even if the triple lock is withheld only for this year, the fact is that it will have an effect in years to come. I made the point as general secretary of the National Union of Teachers that teachers’ pay being held down affects their future incomes. We know that that happens.

I will summarise the arguments, but using my own words. Growing old, many of them said, is hard enough, as we have seen from the impact of Covid-19, without having to find extra money for food and energy bills. Nationwide, millions of current and future pensioners are being condemned to a life of poverty and even, possibly, early death. Of course, these remarks do not apply to those of us above pension age in your Lordships’ House. But, as we all know, we are not typical of the pensioner population, many of whom will suffer in a very serious way if we do not uphold the triple lock; many will be faced with significant hardship. The triple lock was, after all, a guarantee, a promise, a manifesto commitment—and it ill behoves any politician to break manifesto commitments.

[Lord Hendy (Lab)]

My Lords, it is a pleasure to follow my noble friend Lady Blower. I support all the amendments that have been advanced today because they all have the object of protecting the level of state pensions. I particularly support Amendment 6, moved by my noble friend Lord Sikka.

I apologise that I was out of the country last week and so missed participation in Committee. However, I hope noble Lords will allow me to develop a short point that I made at Second Reading. Because, as a Member of your Lordships’ House, I have endeavoured to restrict my participation to the issues that arise from the rights and interests of workers, I want to emphasise two reasons why the state pension is of such concern to workers. The first is that pensions are the deferred wages that workers effectively earned while they were able to work. Once retired, their capacity to earn from their labour is exhausted and pensions are essentially what sustains them. Low earnings lead to low pensions, and the pay gaps manifested in earnings are duplicated in pensions—the gender pay gap in particular, but also differentials based on ethnic origin and disability.

The impact on pensioners of the failure of pensions to keep up with the costs that they face—as noble Lords and, in particular, noble Baronesses have pointed out—will be profound. Some 25,000 of our elderly already die of the cold each year, 2 million live in poverty and 1.3 million do not get enough to eat. Life expectancy is falling in the areas with the greatest poverty.

That leads to my second point. The second reason why present pensions are also of concern to those who are currently in work is this: my noble friend Lord Sikka reminds us that the Government estimate that, by the removal of the triple lock, they will save £5.4 billion from pensioners in the year 2022-23 and some £30.5 billion over five years. That is money that, were it left in the purses and pockets of pensioners, would be spent on food, clothing, heating, rent and so on. Pensioners’ incomes are spent in their local economies. There they help to sustain the jobs of current workers, particularly in shops and local services. Make no mistake: more high street shops will close and more jobs will be lost from the failure to maintain the triple lock, and it will hit the poorest areas the hardest. The impact may be indirect but the ending of the triple lock will affect current earners as well as current pensioners.

The Minister, who is rightly respected because of her sensitivity to the plight of the less well-off, knows that well. She was kind enough to write to me and other noble Lords after Second Reading explaining her position, but her Government have no answer to the two essential points made in the debates today. The abolition of the triple lock will mean that poor pensioners and the poorest local economies in the country will be made yet poorer. Such outcomes are far from necessary, as my noble friend Lord Sikka has repeatedly demonstrated through the progress of the Bill. I therefore support his amendment and all the others that seek to salvage something from the wreckage.

[Baroness Sherlock (Lab)]

My Lords, I thank my noble friend Lord Sikka for introducing his amendment, and all noble Lords who have spoken.

As I have said previously, many of us around this House share an underlying concern about the living conditions of pensioners, especially poorer pensioners. We have had lengthy debates about pensioner poverty in Committee and in debating my Amendment 5, so I am not going to revisit the issue at length at this stage of the Bill. However, I am pleased that the Government have agreed to publish information about the impact of the Bill, which I hope will help us to press the case for a fresh assault on the growing problem of pensioner poverty.

I explained in earlier debates our stance on uprating and what we think is the right way forward. We do not believe the Government have presided over earnings growth of 8%, much as they would like us to think they have. We think they should find a way to deal with the earnings data distortion caused by the pandemic and look for a way forward that maintains the earnings links and uprating and fulfils their manifesto commitment to a triple lock. That is the right way forward.

There is an additional issue in how this amendment is framed. The elected House has voted for the Bill and, since it has only two clauses and Clause 2 is simply the commencement, extent and name of the Bill, to delete Clause 1 would effectively completely eviscerate the Bill. I understand how strongly my noble friend feels about this issue; we all feel strongly. The question is not what we want to happen and what we think is the right thing but how this House can best achieve a result for those who most need our help.

So although we cannot support my noble friend’s amendment, that does not in any way mean that I believe the Government have got this right; I really do not think they have. That is why we on these Benches are very happy to throw our weight behind the amendment that is going to go back to the Commons and make them look at this issue again. I urge the Government to find some way in which they can fulfil their manifesto commitment, maintain that earnings link and make sure that people out there get the uprating that they need. I hope the Government can do that.

Social Security (Up-rating of Benefits) Bill

Lord Hendy Excerpts

2nd reading
Wednesday 13th October 2021 Lords Chamber

[Lord Hendy (Lab)]

My Lords, I rise to make a short point. The Treasury estimate is that the Government will save £5 billion next year by this change. That is to be added to the £6 billion that they save from not renewing the uplift to universal credit. That is £11 billion. Other noble Lords and noble Baronesses, in particular my noble friend Lady Lister, have described the impact that will have on the recipients of universal credit and pensioners.

I want to look at a point on the other side of the account book. This £11 billion is money that is spent by the recipients. It is spent in shops on goods and services. It is spent on food, clothes, heating and rent. It is all spent, every penny of it—or almost every penny of it. The names of the pensioners who are going to lose out on this are not names that you will find in the Pandora papers. This is not money that is stuck away, or invested in shell companies, banks or building societies. It is money that is spent in the local economy. What assessment have the Government made of the loss of these billions of pounds to the local economies in which people actually live?

Women’s Equality

Lord Hendy Excerpts

Tuesday 9th March 2021 Lords Chamber

[Lord Ahmad of Wimbledon (Con)]

My Lords, I have noted the suggestion made by the noble Lord and we will put it to the Gender Equality Advisory Council, which will be headed within the G7 mechanism by my right honourable friend Liz Truss.

[Lord Hendy (Lab) [V]]

My Lords, is the Minister considering, as an important step towards equality between women and men, the United Kingdom following Uruguay, Namibia, Fiji and Argentina in ratifying International Labour Organization Convention No. 190, which was adopted by the ILO on 21 June 2019? The convention is directed against violence and harassment at work, particularly gender-based violence and harassment, and stresses the importance of a work culture based on mutual respect and the dignity of a human being.

[Lord Ahmad of Wimbledon (Con)]

My Lords, perhaps I may write to the noble Lord on this.