State Pension: Age Increase

Lord Watts Excerpts

Thursday 14th November 2024 Lords Chamber

[Baroness Sherlock (Lab)]

My noble friend raises an important point. One of the requirements on the Secretary of State when she comes to do the statutory review of the state pension age is to look at issues such as life expectancy. Every now and again, someone comes up with the idea of varying the state pension age by, for example, location or profession. The reality is that, whereas there are differences between regions or professions, in some cases the differences within them are as great as or greater than the differences between them, so trying to find a way of doing something that would be fair, other than a simple state pension age, is challenging. The real challenge for this Government, as for everyone, is that we should not have these regional variations in our country. We are one country, and we should be tackling those kinds of regional inequalities so that we do not end up in this position.

[Lord Watts (Lab)]

My Lords, is it not the case that we should move to when people start paying national insurance? People often start work at 16 in construction and other jobs, while others do not start work until 23 or 24. Should there not be some understanding about the different types of people, how long they are in work and what jobs they do?

[Baroness Sherlock (Lab)]

There are variations. One of the challenges is that, now we want to keep young people in education, training or employment until 18, we find that fewer people leave school and start work early. My noble friend is raising an underlying point that is really about fairness. We want to see everybody having the opportunity to study for as long as is genuinely helpful and suits them, then to move into fulfilling work and to be able to progress in it over time. I return to one of the challenges. The Secretary of State will consider all factors, but if we look at how difficult it is—and we know how hard we have had to work—to communicate a single state pension age, trying to communicate variable state pensions ages risks complicating it. But my noble friend raises an important point, and we will keep it under consideration.

Pension Credit

Lord Watts Excerpts

Monday 4th November 2024 Lords Chamber

[Baroness Sherlock (Lab)]

As I understand it, the staff are mainly being redeployed from within retirement services and the DWP. It is not uncommon for staff to get moved around to different areas of the department as the need moves and flows during the year. Some of those are already in place, and some are going straight in because they are already experienced in dealing with pension credit and need no training. Others who need specific training on dealing with those claims are being moved across—but we are already doing this.

[Lord Watts (Lab)]

My Lords, does the Minister agree with me that it is hard to take lessons from the Opposition, who in government oversaw the biggest increase in poverty and homelessness—and then they have the cheek to lecture this side about poverty?

[Baroness Sherlock (Lab)]

My Lords, it is true that the last Labour Government lifted more than 1 million pensioners out of poverty and that the number of pensioners in relative poverty has increased by around 300,000 since 2010-11. However, on the pension credit, I think we are all of one mind. We want to encourage everybody out there who is eligible for pension credit to claim the money and claim it as soon as possible. Please put the word out.

Pension Credit

Lord Watts Excerpts

Monday 9th September 2024 Lords Chamber

[Baroness Sherlock (Lab)]

My Lords, the noble Lord is talking about take-up. As I said, the best estimate of pension credit take-up as a whole is 63%: that is 63% of the number of people who could be claiming pension credit who we think are getting it. The amount of pension credit that is taken up is quite a bit higher than that, nearer to almost three-quarters of the total amount claimed. The challenge for us is to make sure that those who do not claim it do get it. However, the big difference this will make is this: if you are on the basic state pension and not claiming pension credit, you will get not just an extra £200 or £300 in winter fuel payments; you could get thousands of pounds in pension credit itself. Our job is therefore to make it as easy as possible for people not just to get this smaller amount, but to get the bigger amount as well, so let us all try to do that.

[Lord Watts (Lab)]

My Lords, many of us accept that the Government have inherited a black hole in the budget and need to take action on it, and we are also not against the principle of some form of means-testing. However, many of us also think that the threshold is too low. Will the Government look at the threshold again to ensure that poor pensioners are not excluded from the winter fuel allowance in the future?

[Baroness Sherlock (Lab)]

My Lords, I have had lots of very interesting suggestions from, and conversations with, Members from around the House, who have variously suggested trying different thresholds and creating a new, higher threshold. One of the challenges is that this is a single, once-a-year, one-off payment. There is already a means-testing process for pension credit. Creating a brand new means-testing system for a one-off payment would involve simply too much bureaucracy, complication and red tape for what is a once-a-year payment. So, we have ended up going for pension credit, which is already there. The great advantage is that, if somebody is on pension credit, we can pretty much automatically give them the winter fuel payment, so they will not have to apply for it, whereas, if we create a new special scheme, people will have to apply for it. We will continue to look at a range of alternatives, but this is clearly the only sensible way to do this in the short term. I stress again: everybody on pension credit is entitled to this money. Let us get them out and getting it.

Universal Credit

Lord Watts Excerpts

Tuesday 18th April 2023 Lords Chamber

[Viscount Younger of Leckie (Con)]

My noble friend makes a good point. I will add to what I said: we are still on track to deliver the Government’s pledge, with the OBR—it has to be the OBR—forecasting that inflation will reduce to 2.9% by the end of the year. In my newspaper today, I noticed that there are signs that food prices, which have been extraordinarily high, are beginning to slip, so I very much hope that this is going in the right direction.

[Lord Watts (Lab)]

Is it not correct that the Government have decided to increase pensions by 10%, for example, but not to do anything to change the system for families with more than two children? Is this not a direct choice of the Government? What are the implications for children living in those families?

[Viscount Younger of Leckie (Con)]

I think I made my position clear on the two-child limit, as I have over my three months in this role. Obviously, putting children first is extremely important, and that is why we have given huge support, as I said—a total of £94 billion over this year and the next—to help households and individuals. The focus on children is a very important point: that is key.

Local Housing Allowance Rates

Lord Watts Excerpts

Wednesday 22nd February 2023 Lords Chamber

[Viscount Younger of Leckie (Con)]

I would answer that by saying that it is not a question of justifying it but of looking at the whole way in which we are helping people at the moment. That is why it is worth reminding the noble Baroness that, for example, working-age and disability benefits will increase by 10.1% in 2023-24, which I will be speaking to later in the Moses Room. In addition, the benefit cap will be increased in line with CPI. We understand the pressures that people are under and that is why we will also deliver further cost of living payments worth up to £900 for claimants on means-tested benefits, £300 for pensioner households and, as I mentioned yesterday, £150 for those on disability benefits.

[Lord Watts (Lab)]

My Lords, the Minister seems to suggest that people should contact the local authority if they are in trouble. Has he contacted all local authorities to see whether they can help those people? If he has done so, can he publish the findings?

[Viscount Younger of Leckie (Con)]

I will see whether we are able to publish the findings, but perhaps I may reassure the noble Lord that there is continuous interaction between central government and local authorities in terms of the funds that we give them. As I said earlier, it is for them to prioritise the targeting of the funds but, equally, we want some feedback on how well those have been targeted. That is happening.

Carer’s Allowance

Lord Watts Excerpts

Thursday 17th November 2022 Lords Chamber

[Baroness Stedman-Scott (Con)]

Those who are on carer’s allowance receive the £400. Those who are on carer’s allowance but who are entitled to the carer’s element of UC, where they are not required to look for work, can get another £2,000. The Government are helping, and we are four minutes away from finding out what more they might do around energy costs. The stories and case studies that the noble Baroness read out are harrowing, but the Government are doing everything they can, within the limits of their financial position.

[Lord Watts (Lab)]

My Lords, have the Government given any thought to those people on carer’s allowance getting automatic increases rather than having to means test? We already know that means testing makes it more difficult for claimants to receive the money they need.

[Baroness Stedman-Scott (Con)]

I think the noble Lord is asking me whether people on carer’s allowance will automatically get means-tested benefits. There are other benefits which are means tested and cannot automatically be applied. I have no information that those rules are to change. I agree that the noble Lord is justified in his question.

Benefit Cap: Child and Family Well-being

Lord Watts Excerpts

Monday 30th April 2018 Lords Chamber

[Baroness Buscombe]

My Lords, I cannot assure the noble Baroness that we will consider this any further. It is right that I articulate the fact that we are already spending £95 billion a year on benefits for people of working age. We have a budget in our department of £200 billion, which is 25% of the whole of the budget for government. We have to think about affordability before we can continue to extend our policies, notwithstanding that each and every individual case is of great importance to us. Our concern is to ensure that we help those who are genuinely in need.

[Lord Watts (Lab)]

My Lords, is it not the case that children come out of poverty only if the two parents get excellent, well-paid jobs, and the vast majority in this category do not do that?

[Baroness Buscombe]

My Lords, perhaps I can also explain that, not only is universal credit giving so much further support and really making work transform lives that, in a family with three children, for example, the couple need only work up to 24 hours in total a week to be exempt from the cap. So the cap comes off and they receive benefits to the equivalent of a salary of £35,000 gross a year, and that does not include housing benefit. Noble Lords should accept that such a salary compares extremely favourably with the income of the many thousands of families who do not call upon the welfare system.

Universal Credit: Free School Meals

Lord Watts Excerpts

Wednesday 14th March 2018 Lords Chamber

[Lord Watts (Lab)]

My Lords, can the Minister explain why there is a different threshold in different parts of the union? Surely all children should be treated the same?

[Baroness Buscombe]

My Lords, the issue is actually about ensuring that children receive the right treatment. There is not an issue about—

Local Welfare Assistance

Lord Watts Excerpts

Monday 11th December 2017 Lords Chamber

[Baroness Buscombe]

My Lords, it is important to say that the national welfare system provides robust safeguards. These include: short-term benefit advances or universal credit advances for people in urgent financial need; Social Fund budgeting loans or universal credit budgeting advances to help with one-off and unforeseen expenses; and hardship payments for people who are sanctioned. But by abolishing the Social Fund crisis loans, which themselves had huge problems, we have now empowered local authorities to develop and deliver new provision to meet the needs of the most vulnerable people in their local communities.

[Lord Watts (Lab)]

My Lords, does the Minister think that it is irresponsible to delegate powers to local authorities and at the same time savage their budgets so that they cannot meet those responsibilities?

[Baroness Buscombe]

No, my Lords. The Government believe that councils are best placed to decide how to support local welfare needs. Local authorities in England will receive more than £200 billion to deliver those and other community services between this year and 2019-20, and will have the certainty to plan ahead through our four-year funding settlement.

Work Capability Assessment

Lord Watts Excerpts

Monday 9th October 2017 Lords Chamber

[Baroness Buscombe]

The noble Baroness will know that this is the fifth review of the work capability assessment since it was introduced in 2008. It is important to continually reassess and review the way the assessment is carried out. That is why since April, when we rolled out the new PSP—the personal support package for people with health conditions, which may include having one or more conditions—we have recruited 300 new disability employment advisers and 200 community partners, as well as introducing peer support job clubs in 71 jobcentres. We have allocated £15 million to the flexible support fund, made changes to the permitted work rules and have almost completed the rollout of the health and work conversation. This is in line with our ambition to provide a support system that can be tailored to individuals’ needs.

[Lord Watts (Lab)]

My Lords, the Minister will be aware that the Prime Minister has accepted that the system is still flawed. There have been five reviews. I follow on from the earlier question: do we not need a pilot to make sure that this review actually works?

[Baroness Buscombe]

My Lords, the Improving Lives Green Paper was published in October 2016. I am pleased that we received around 6,000 consultation responses supported by 166 accessible events across the country. That is good; it is all about us listening to people, to understand what is truly needed and how we can tailor support to meet the needs of different people. Since the Green Paper consultation, our officials have been working hard to analyse that fantastic response. We are working towards an autumn publication which will set out our response to the consultation and how it has informed what we are going to do next.