Intergenerational Fairness in Government Policy

Lord Hunt of Kings Heath Excerpts

Thursday 26th October 2017 Lords Chamber

[Lord Hunt of Kings Heath (Lab)]

My Lords, at times I have felt a little lonely today. None the less it has been an absolutely fascinating debate, and I congratulate the noble Baroness on it and on the way she opened it. I commend noble Lords who have spoken because of the tone of our debate. We have had a forensic analysis of some of the huge challenges facing us if we accept the premise of an intergenerational crisis on fairness, but there is a conclusion among noble Lords that we are not talking about warfare. Every day, we see so much support, caring and co-operation between the generations and that is what we have to build on as we develop policies in the future.

The noble Baroness, Lady Smith, was right to draw attention to what is a real conundrum: the short-term political horizon versus the need sometimes for long-term planning and decision-making. She mentioned climate change, which was a very good example, but clearly noble Lords have mentioned other examples in domestic policy where, for instance, we see proposals that might impact some of the benefits that older people receive but then get short shrift. The Government’s experience in relation to the funding of long-term care in the last election—which mirrored our own experience of when Mr Cameron attacked us for the “death tax” in 2010—does not always encourage politicians in terms of proposing policies which they deem to be in our interest in the long term.

The noble Lord, Lord Wallace, wondered whether we should have a Select Committee on this matter, and I think that is worth suggesting. It did strike me that, on climate change, through thick and thin, there has been a general consistency over many years now. I wonder whether having the Committee on Climate Change—a statutory advisory committee to Government —has been helpful. I wonder whether that is some kind of model we might think about in dealing with some of these very difficult issues.

Clearly, the demographics show us that we will have a growing number of older people in our population. Many of them have benefited from the benefits that noble Lords have mentioned and which they now question. Certainly the last Labour Government presided over a halving of the number of pensioners in poverty, not least through the introduction of pension credit. But our health and social care system is under considerable strain. Every year, the number of patients requiring treatment is going up, and there is clearly a huge problem. Our hospitals are unable to discharge patients because of the lack of care, community and care homes—we debated that this morning. So far there has been precious little idea about how we will meet this ever-growing problem, which we know will be with us for at least 30 years.

On the other hand, in our debate today we have had some very concrete suggestions about a way forward in many of these areas. It would be wrong to be negative by thinking that we are in such a state that there is no way through. I warmed to the suggestion of the noble Lord, Lord Best, that in relation to the imbalance in housing, the concept of rightsizing in accommodation and help-to-move packages—which would then release housing stock—deserves attention. Particularly because of the way he presented it, that could be seen as an incentive to older people, rather than a cutback in their benefits, or putting their home ownership under threat because of care bills. I agree with the noble Baroness, Lady Stowell, that one of the very difficult issues is how, for instance, we could release equity in people’s homes or ensure that the distribution of housing stock was more equitable than it is.

Certainly, the housing situation is bleak: the waiting list for council accommodation is long; housing rental costs for young people are high; and the number of home owners under the age of 25 has halved. Your Lordships’ Economic Affairs Committee said that the root of the crisis in housing is in the restriction of land supply and of the planning system, the failure to replace council houses bought under the right-to-buy scheme and the lack of incentives for private companies to build more affordable homes. None of this is insurmountable; it needs the political will. I hope that we can see housing rise much more to the top of Governments’ priority order in the next few years.

The noble Lord, Lord Willetts, referred to the issue of young people’s expectations. The fact is that the younger workforce will be earning less than their parents’ generation in comparison and younger people are increasingly reliant on their parents and grandparents for support. Alongside that, the world of work has become much more insecure, with fewer full-time and reliable jobs. We have seen an explosion in part-time jobs and, in particular, insecure work, such as the introduction or development of zero-hours contracts. All of these lead to a very insecure position for many young people. The noble Lord, Lord Bird, asked where the new industries are, and that is a very good question, as was his second question: where is the investment coming from to invest in those jobs which provide the kind of stability and satisfaction that we need to see?

Education and skills are very important. I do not want to go into this debate about tuition fees, save to say that the noble Lord, Lord Willetts, has received a gentle push-back from noble Lords. I particularly warmed to the comments of the right reverend Prelate the Bishop of Salisbury that, however you define student loans, to many young people they are a debt—a psychological barrier. I was also interested in what the noble Baroness, Lady Stowell, said about our parents’ attitude to debt. We are in a position where, in a sense, the Government embrace debt and tell young people that it is a good thing—I wonder whether that is wise.

There are so many experts here on pensions, but I agree that the position is precarious. Having a son whose employer is now putting 1% into the pension scheme makes me feel such anguish about what those people will get when they retire in terms of a decent pension package. The noble Lord, Lord Filkin, talked about its precariousness. On the other side, the noble Lord, Lord Bird, talked about unleashing the power of pension funds in order to invest in the kind of infrastructure that we will require. I cannot help feeling that on pensions we have a huge amount of unfinished business.

Clearly, there is no magic wand to wave. But we could adopt a coherent set of policies to help young people in relation to housing, education and greater security at work. This does not need to be at the expense of the chipping away at hard-earned protections for older people. Of course we face hard decisions about public expenditure, the role and level of taxation and the distribution of public finances, and some tension is inevitable, although the noble Lord, Lord Turnbull, indicated that we have some flexibility, which I hope that the Government will listen to, given the distinguished experience that he brings to your Lordships’ House.

The key message from this debate is that we would like the Government to focus more on intergenerational fairness. I agree with the noble Lord, Lord Wallace, that it is a debate for the whole of society. I also agree with the noble Lord, Lord Tugendhat, that, building on the experience of 2017, the more that younger age groups vote, the better. I, too, would go for votes at 16, and I suggest to the noble Lord, Lord Young, that, having encouraged so many more young people to vote, it is a great pity that the electoral register that his Government are so determined to bring in will not reflect that increase in young voters’ interest in elections.