(1 year ago)
Lords ChamberTo ask His Majesty’s Government whether they intend to take steps to index United Kingdom state pensions to inflation for those entitled to them living in Canada, as requested by the government of that country in order to facilitate the proposed new free trade agreement.
My Lords, state pensions are not in the scope of the negotiations on a free trade agreement with Canada. The UK state pension is payable worldwide to those who meet the qualifying conditions, without regard to nationality. The amount is based on an individual’s national insurance record. UK state pensions are uprated overseas only where there is a legal requirement to do so. The Government have no plans to change this policy.
My Lords, the Canadian Government say that, over the past 30 years, they have made repeated efforts to persuade the UK Government to do what they do for their own citizens: to index the UK pensions of UK retirees who are resident in Canada. On what principle do the Government distinguish between our pensioners in Canada, Australia, New Zealand and certain Caribbean Commonwealth countries and those whose UK pensions are not frozen—in the USA, for example, and, as reinforced in the recent Brexit trade agreement, in the 27 countries in the EU?
The rate of contribution paid has never earned entitlement to indexation of pensions payable abroad. This reflects the fact that the UK scheme is designed primarily for those living in the UK. In drawing up expenditure plans for pensioner benefits, the Government believe that their responsibility is primarily towards pensioners living in this country. The UK’s current social security arrangements with Canada provide for individuals coming to the UK to use periods of residence in Canada for the purposes of entitlement to the UK state pension as well as certain other benefits.
(6 years, 4 months ago)
Lords ChamberMy Lords, I fear that the time for Back-Bench questions is up.
Yes, indeed, I make it clear to the House that the Wales Bill will appear here before too long, although there are no dates. The objective is that there is going to be a clearer settlement in terms of setting out reserved powers—a reserved powers model. It will be a strengthened settlement and will deliver a fairer settlement through the introduction of the funding floor alongside the spending review, with the expectation that the Welsh Government will work with us to progress.
The Minister will be aware that the requirement in Section 12 of the Wales Act for a referendum before the transfer of income tax-raising powers to the Welsh Assembly has been used as an excuse for delay. Will his Government use the forthcoming Wales Bill to remove this block and make the Welsh Government accountable for their gross failure in maintaining standards of education and health in Wales?
I cannot agree with the noble Lord in terms of delay because we think that it is right to get the agreement right. The Wales Act and the St David’s Day agreement empower the Welsh Government with the tools and levers that they need to grow the Welsh economy. We believe that the referendum is right as part and parcel of giving the Welsh people more say in terms of their powers.