(3 years, 9 months ago)
Commons ChamberWith the leave of the House, we will debate motions 5 and 6 on social security together.
I beg to move,
That the draft Pneumoconiosis etc. (Workers’ Compensation) (Payment of Claims) (Amendment) Regulations 2021, which were laid before this House on 14 January, be approved.
With this we shall consider the following motion:
That the draft Mesothelioma Lump Sum Payments (Conditions and Amounts) (Amendment) Regulations 2021, which were laid before this House on 14 January, be approved.
These statutory instruments will increase the value of lump sum awards payable under the Pneumoconiosis etc. (Workers’ Compensation) Act 1979 and the diffuse mesothelioma scheme established by the Child Maintenance and Other Payments Act 2008. As many hon. Members will know, these two schemes stand apart from the main social security benefits uprating procedure. While there is no statutory requirement to increase rates, I am happy to maintain the position and increase the amounts payable by the September 2020 consumer price index of 0.5%. This is the same rate that is being applied to industrial injuries, disablement benefits and other disability benefits under the main social security uprating provisions. These new amounts will be paid to those who satisfy all the conditions of entitlement for the first time on or after 1 April 2021.
The Government recognise the great suffering of individuals and their families caused by the serious and often fatal diseases resulting from exposure to asbestos or other listed agents. The individuals affected and their families may be unable to bring a successful claim for civil damages in relation to their disease. This is mainly due to the long latency period of their condition, but they can still claim compensation through these schemes. These schemes also aim, where possible, to ensure that sufferers receive compensation in their lifetime, without first having to await the outcome of civil litigation. While improvements in health and safety procedures have restricted the use of asbestos and provided a safe environment for its handling, the legacy of its use is still with us. That is why we are ensuring that financial compensation from these schemes is available to those affected.
I will briefly summarise the specific purpose of the two compensation schemes. The Pneumoconiosis etc. (Workers’ Compensation) Act 1979, which for simplicity I will refer to as the 1979 Act scheme, provides a lump sum compensation payment to individuals who have one of five dust-related respiratory diseases covered by the scheme who are unable to claim damages from employers and who have not brought any action against another party for damages. The five diseases covered by the 1979 Act scheme are: diffuse mesothelioma; bilateral diffuse pleural thickening; pneumoconiosis; byssinosis; and primary carcinoma of the lung if accompanied by asbestosis or bilateral diffuse pleural thickening.
The 2008 mesothelioma lump sum payment scheme, which I will refer to as the 2008 scheme, was introduced to provide compensation to people who contracted diffuse mesothelioma but were unable to claim compensation under the 1979 Act because, for example, they were self-employed or their exposure to asbestos was not due to their work. The 2008 scheme allows payments to be made quickly to people with diffuse mesothelioma at their time of greatest need. Under each scheme, a claim can be made by a dependant if the person with the disease has died before being able to make a claim.
The rates payable under the 1979 Act scheme are based on the level of disablement assessment and the age of the sufferer at the time the disease is diagnosed. The highest amounts are made to those diagnosed at an early age and with the highest level of disablement. All payments for diffuse mesothelioma under the 1979 Act scheme are automatically made at the 100% disablement rate, the highest rate of payment, reflecting the serious nature of the disease. Similarly, all payments for this condition under the 2008 scheme are made at the 100% disablement rate and based on age, with the highest payments going to the youngest people with the disease. In the last full year for which data is available, April 2019 to March 2020, 3,220 awards were paid under the 1979 Act, totalling £42.7 million, and 450 people received payments under the 2008 scheme, totalling £9.7 million. Overall, 3,670 awards were made across both schemes in 2019-20 and expenditure was £52.4 million.
I am keen to address the impacts of the covid-19 pandemic on sufferers of pneumoconiosis and mesothelioma. While this uprating debate is an annual event, this has been far from a normal year. We took the difficult decision at the outset of the pandemic to temporarily suspend all face-to-face health and disability assessments, including for the industrial injuries disablement benefit to protect the health of claimants and staff. We have continued, where possible, to process and qualify under SRTI rules—special rules for terminal illness—where a claim can be processed through paper-based review, and have recently explored telephone and video options in line with wider disability benefits to start to clear the backlog.
We are committed to working with our agencies and arms-length bodies to improve the lives of those people with respiratory diseases. People suffering from occupational lung diseases are likely to face a higher risk of complications resulting from covid-19 and it continues to be a distressing time for sufferers of the diseases we discuss today. As of Sunday 14 February, all those identified as clinically extremely vulnerable have been offered a vaccine.
Returning to these important regulations, I am sure we all agree that while no amount of money can ever compensate individuals and families for the suffering and loss caused by diffuse mesothelioma and other dust-related diseases covered by the 1979 Act scheme, those who have them rightly deserve the financial compensation that these schemes can offer. I am required to confirm that the provisions are compatible with the European convention on human rights and I am happy to do so. I commend the increase of the payment scales for those schemes and ask approval to implement them.
I thank hon. Members for their helpful contributions to this debate, which is a rare case of cross-party support. The debate was hugely enriched by the very personal stories and experiences that were shared, which highlight the importance of these annual uprating regulations. The Government recognise that these two schemes form an important part of the support available to people with dust-related diseases, and these draft regulations will ensure that the value of that support is maintained. I wish to echo the comments about the charities and organisations that both support claimants and families to secure a diagnose and provide ongoing support. This House recognises what an invaluable role they play for people in such challenging times.
Hon. Members raised a number of points, and I will try to cover the key ones. First, on the delays, due to covid we understandably had to suspend traditional face-to-face assessments. We have now been able to start with paper-based reviews and, as we have seen with wider disability benefits, we have looked to use telephone and video technology where possible. As quickly as we are allowed safely to return to face-to-face assessments, those for whom we have not been able to do a paper-based review or a telephone or video assessment will be a priority in this area.
The Chair of the Work and Pensions Committee, the right hon. Member for East Ham (Stephen Timms), asked for an update on stats. They are published quarterly, and those he quoted are the last published ones. We will share the stats as soon as they come forward. However, we absolutely understand the importance of getting the backdates cleared. He also mentioned the issue whereby, for some claims made under the 1979 Act, due to the suspension of face-to-face assessments the amount of compensation a claimant can receive is based on their age on the date the IIDB was awarded, not the date of the claim. The Department is actively considering what we can do for those claimants who, through no fault of their own, have received a reduced amount as a result of the delays. We acknowledge that, we are looking to address it, and I very much welcome the right hon. Gentleman highlighting the issue in a proactive, constructive spirit. We do get that.
I turn to the quirk of why this debate is held annually. It was set in place in 2004, and Ministers—including me—have done it each year. A change to make this measure part of the wider statutory uprating would require primary legislation. However, aside from requiring legislation to make the change, this is an opportunity for us to focus on the scheme and the wider support, and the quality and merit of the speeches today shows why we have the debate annually. As ever, these things are kept under review, but it is one of those situations where there are gains, and it is about whether a change is needed.
A number of hon. Members raised the principle of equalising the levels of payments made to dependents. I listened carefully to the concerns raised, but the Government remain of the view that available funding should be prioritised to those people who are currently living with the disease.
A number of hon. Members spoke about the importance of research, which is crucial, particularly in our fight against cancer. I very much welcome the fact that the Department of Health and Social Care invests £1 billion a year in health research through the National Institute for Health Research. We have been working actively for several years to stimulate an increase in the level of mesothelioma research, and I thank organisations such as Cancer Research UK, the British Lung Foundation and the Medical Research Council that are proactively trying to stimulate additional crucial research in that area. We will welcome any more work that is done.
A number of hon. Members addressed the HSE, which is a wonderful organisation. I welcome the fact that it secured an additional £14 million for the financial year 2021-22 to continue to support the Government in the national response to the global covid-19 pandemic. That will fund spot checks and inspections, including those enforced by local authorities, to ensure that workplaces are covid-secure for workers and the public. That is in addition to the HSE’s regular Government funding to deliver its wide-ranging regulatory functions.
To be clear, the HSE does not only rely on direct Government funding; it also generates income. Rightly, a key part of its work is raising awareness, and its health and work strategy delivers a strategy for occupational lung disease that includes raising the profile of occupational lung diseases through activities such as facilitating the Healthy Lung Partnership to provide direction of co-ordinating stakeholder activity on occupational lung disease, in addition to targeted intervention activity. When I was responsible for the HSE as a DWP Minister—it is no longer part of my responsibilities—I was incredibly impressed with how well it engaged with businesses of all sizes to give them the best knowledge, support and guidance in all areas of health and safety, and that part of its work is crucial.
Moving on to the very important issue of cancer patients, it is imperative that people can get tested for cancer and that cancer patients continue to receive the treatment they need. While the covid-19 pandemic has presented major challenges for all healthcare systems, overall cancer treatment services have been maintained throughout the pandemic. The NHS has published a cancer service recovery plan that aims to prioritise long-term plan commitments, including respiratory disease, as a clinical priority, and that will support recovery. This includes the delivery of targeted lung health checks and the roll-out of rapid diagnostic centres. As of the end of 2020, there were 53 live rapid diagnostic centre pathways across hospitals in England, compared with just 12 in March 2020, with a further 63 pathways in development. In October 2020, NHS England, NHS Improvement and Public Health England launched the latest “Help Us, Help You” campaign to urge people with potential symptoms of cancer to see their GP. The lung cancer campaign will focus on the key symptom of a cough for three weeks or more and encourage anyone who has had this symptom to speak to their GP. I am sure we would all echo the importance of that message.
On dependents and gender imbalance, we have not conducted an impact assessment, but a valid point has been raised and I will take it away to look at it.
I commend the uprating of the payment scales for these schemes and ask for approval to implement them.
Question put and agreed to.
Resolved,
That the draft Pneumoconiosis etc. (Workers’ Compensation) (Payment of Claims) (Amendment) Regulations 2021, which were laid before this House on 14 January, be approved.
Resolved,
That the draft Mesothelioma Lump Sum Payments (Conditions and Amounts) (Amendment) Regulations 2021, which were laid before this House on 14 January, be approved.
I will now suspend the House for three minutes to make the necessary arrangements for the next business.
(3 years, 11 months ago)
Commons ChamberI find it astonishing that the hon. Member for Heywood and Middleton (Chris Clarkson) and other Government Members do not understand the fury that has been unleashed across this country by the measures that the Government are failing to take and the callous way that they have treated so many millions of people. It is clear to me and the constituents of Ilford South that the Government should be hanging their heads in shame. They should not have even been forced to come to this Chamber or to have this debate.
This is a Government who have spent billions of pounds of taxpayers’ money on contracts with friends linked to donors, and hundreds of millions of pounds on a failed test and trace system and, in my constituency, unusable personal protective equipment. It is an absolute disgrace that the Government cannot stump up an extra 20 quid to put food on the table of some of the most vulnerable people in this country.
We are in the midst of the worst recession ever. Millions of families, many in work but reliant on Government support to supplement poverty wages, are on the brink. This is not a time to let them sink below the poverty line; it is time for the Government to stick their hand in their pocket and do what is right.
Instead, the Government’s cruel and callous decision will have an impact on more than 6 million families across the country, and risk plunging more than 300,000 children into poverty. In my constituency of Ilford South, more than 19,000 people rely on universal credit to make ends meet. That is more than double the national average.
Worse, that decision comes just days after we learn that the Government are only setting aside £5—five measly pounds—to feed our children. Let us be under no illusion: this is an attack on Britain’s workers by a Government who represent the 1% of this country, intent on cutting tax rates for their mates and handouts for the poorest.
We are struggling through a devastating pandemic and—I think that people on both sides of this House agree—perhaps the biggest challenge for our country since the second world war. Due to the unprecedented nature of this crisis, we have all had to adapt rapidly, so it is little surprise that living costs have risen in recent months. Indeed, research by Save the Children and the Joseph Rowntree Foundation found that 86% of families with children on universal credit and tax credits have been faced with additional costs since the crisis began.
The increase in Government support previously was rightly welcomed. It eased the burden on millions of families up and down the country. However, it will be many months, unfortunately, before we are out the other side of this awful pandemic, and millions more will lose their jobs and be at risk of unemployment when the furlough scheme comes to its end. It is completely the wrong time to end that vital piece of support.
The Government have tried to spin their one-off payment of £500 as a positive, something that so many people have seen through. As my hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds) pointed out, in real terms that means the lowest level of unemployment support for 30 years, at a time when redundancies are going through the roof.
I am afraid we now have the last speaker, who is Jacob Young.
This is an unprecedented crisis that demands an unprecedented level of Government support. Our Conservative Government have been there for the most vulnerable at every turn. Never have any Government in our history done so much to support those in need, with more than £280 billion spent on measures prioritising the people on the lowest incomes. While the Labour party squabbles over whether that should be £281 billion or £282 billion, our determination to help the lowest paid and most vulnerable in our society continues.
The Chancellor, in his autumn statement, accepted all the recommendations of the Low Pay Commission and increased the national living wage, worth £345 to those who work a 40-hour week. In the public sector, we have had to take the difficult decision to freeze pay for many public sector workers, but we have again shielded the lowest paid: those in the public sector with below the median income will see their wages rise this year by at least £250. Since 2010, we have raised the personal tax threshold to £12,500—something that benefits the least well-off the most. We have paid 80% of people’s wages and provided the self-employed income support scheme designed for those earning less than £50,000. We have protected renters, helped with mortgages, and are delivering the targeted support needed to help families with their council tax, food and energy bills. We have continued to prioritise the least well-off.
Meanwhile, the leader of the Labour party characteristically offers only division and indecision. Last week, he said that he wanted more restrictions on our economy, but he will not tell us what they could be. He has told us that he wants to scrap our Brexit deal and to do his own, but he will not tell us what that will include. Now he says he wants to scrap universal credit, but he will not tell us what would replace it.
Sadly, since the first lockdown in March, the number of people claiming universal credit has doubled. Yet the system has not fallen over under the weight of all that additional pressure, and I pay tribute to those outstanding DWP staff, especially those at my local jobcentres in Redcar, Eston and Middlesbrough, who have worked so hard to ensure that.
The Labour party can criticise universal credit and the DWP all it likes, but it knows that the legacy system it left behind would not have been able to cope with this increase in demand, and while we have invested in universal credit by doubling the number of job coaches to provide the necessary one-to-one jobseeker support that we know works so much better, it would throw it all away rather than admit it is delivering exactly on the priorities of those who need it most. Work is the best route out of poverty, which is why we have taken such extraordinary measures to protect as many jobs as we can. This Government are rising to the immense challenge presented by a crisis like no other in our history. We are all in this together, and together is how we will beat this virus.
I am sorry we have not been able to fit everybody in to this debate. It was heavily over-subscribed, and we had a statement earlier and we do have another heavily subscribed debate, so I am now going to the shadow Chancellor, Anneliese Dodds.
On a point of order, Madam Deputy Speaker. My apologies to the right hon. Member for Warley (John Spellar) and the hon. Member for Sheffield, Brightside and Hillsborough (Gill Furniss) for not being able to give them prior notice of my point of order because they were on telling duty. I was concerned, at the calling of that Division, that the advent of face masks in the Chamber may have disguised a member or two of the Opposition Whips Office shouting opposition to their own motion, thus rendering redundant the idea that the vote should follow the voice. Could you advise me further on that, Madam Deputy Speaker?
I thank the hon. Gentleman for that point of order. Nothing disorderly has happened. There was a shout of “Aye” and a shout of “No”, and Tellers were put in when I put the question again. I am sure that he is not questioning my judgment. Nothing disorderly has happened, and the vote took place in the proper manner.
I will now suspend the House for three minutes in order to enable the arrangements necessary for the next business to be made.
(4 years, 1 month ago)
Commons ChamberI beg to move, That the clause be read a Second time.
With this it will be convenient to discuss the following:
New clause 2—Pensions Advisory Commission—
“(1) The Pensions Regulator shall establish a committee to be known as the Pensions Advisory Commission.
(2) The Commission shall consist of—
(a) members of the Regulator as provided under section 2(1) of the Pensions Act 2004, and
(b) five other persons appointed by Her Majesty on the recommendation of the Secretary of State.
(3) A person appointed under subsection (2)(b) shall exercise only functions in pursuance of the duties in subsections (5) and (6).
(4) The Commission shall be chaired by a person appointed under subsection (2)(b).
(5) It shall be the duty of the Pensions Advisory Commission to submit to the Secretary of State each calendar year, beginning with the year 2022, a report setting out the Commission’s views on—
(a) the impact of provisions in Parts 1, 2 and 4 of this Act on—
(i) persons in different parts and regions of the United Kingdom,
(ii) equal treatment of men and women in access to pension provision, and
(iii) persons with a protected characteristic under section 4 of the Equality Act 2010; and
(b) the effectiveness of the powers in Parts 1 to 3 of this Act in enabling the Pensions Regulator to achieve its objectives under section 5 of the Pensions Act 2004.
(6) It shall also be the duty of the Commission to report to the Secretary of State by 31 October 2021 its views on when commercial operators should be able to enter the market for provision of a pensions dashboard service.
(7) The Secretary of State must lay before Parliament a copy of every report received from the Commission under this section.”
New clause 3—Pension accounts—
“(1) A jobholder to whom section 3 of the Pensions Act 2008 applies may by notice require an employer to arrange for the jobholder to receive into a pension account any contribution which would otherwise be made by the employer into an automatic enrolment scheme.
(2) A contribution by a jobholder or by their employer into the jobholder’s pension account shall be invested in a pension scheme offered by an approved pension provider.
(3) The Secretary of State may by regulations make provision—
(a) about the form and content of a notice given under subsection (1), or
(b) about the arrangements that the employer is required to make.
(4) The Secretary of State may make regulations to set criteria by which a pension provider may be approved for the purposes of subsection (2).
(5) Regulations under this section shall be made by statutory instrument and may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.”
New clause 4—Employer debt: trustees’ discretion—
“(1) The following changes are made to the Occupational Pension Schemes (Employer Debt) Regulations 2005 (SI 2005/678).
(2) In regulation 2, in the definition of “scheme apportionment arrangement”—
(a) in sub-paragraph (f)(ii), after “apply”, insert “but not if the circumstances in paragraph (h) apply”;
(b) at end insert—
“(h) the consent of the remaining employer or employers shall not be required under (f)(ii) above where all of the following conditions apply—
(i) the departing employer’s debt was treated as becoming due prior to the coming into force of this provision; and
(ii) the departing employer’s debt was less than 0.5% of the scheme’s overall liabilities, as estimated by the trustees or managers on advice of the scheme actuary, as if the whole scheme had been winding-up at the time the debt was treated as becoming due; and
(iii) the employer in question was operating as an unincorporated business during his participation in the scheme; and
(iv) the trustees or managers consider that, in the context of the scheme overall, taking into account factors such as the scheme’s assets, liabilities and the trustees’ or managers’ most recent assessment of the overall employer covenant, there would be no material benefit to the scheme and its members in seeking recovery of the employer’s liability share from the departing employer.”
(3) In regulation 9, after paragraph (14B), insert the following new paragraph—
“(14C) Condition L is that a debt was treated as becoming due from him under section 75 of the 1995 Act but is excluded under this Condition because—
(a) the employer’s debt was treated as becoming due prior to this Condition coming into force; and
(b) the employer’s debt was less than 0.5% of the scheme’s overall liabilities, as estimated by the trustees or managers on advice of the scheme actuary, as if the whole scheme had been winding-up at the time the debt was treated as becoming due; and
(c) the employer in question was operating as an unincorporated business during his participation in the scheme; and
(d) at or before the applicable time, the trustees or managers have made a determination not to pursue the debt on the grounds that, in the context of the scheme overall, taking into account factors such as the scheme’s assets, liabilities and the trustees’ or managers’ most recent assessment of the overall employer covenant, seeking recovery represented a disproportionate cost to the scheme and would be of no material benefit to the scheme overall.””
This new clause would enable pension scheme trustees to exercise discretion not to pursue employer debt following an employer’s exit from a pension scheme where such debt is below a de minimis threshold. This aims to support unincorporated employers who are now retired for business and for whom the current regulation allows no easements.
New clause 5—Employer debt: deferred debt arrangement—
“(1) The following changes are made to the Occupational Pension Schemes (Employer Debt) Regulations 2005 (SI 2005/678).
(2) In regulation 6F—
(a) in paragraph (1), leave out “A” and insert “Subject to the provisions of paragraph (8) below, a”;
(b) at end insert—
“(8) In relation to a frozen scheme, the trustees or managers of the scheme may agree to a deferred debt arrangement where the employment-cessation event occurred at a time prior to the scheme becoming a frozen scheme, providing the conditions of paragraph (3) are met at the time the deferred debt arrangement is entered into.””
This new clause would permit employers in a pension scheme closed to future accrual to apply for a deferred debt arrangement, providing they meet the other statutory tests. This aims to support employers who are still trading but were not able to use the existing deferred debt easement.
New clause 6—Regulation of pension superfunds—
“(1) The Secretary of State shall publish a statement on proposals for primary legislation in relation to a duty on the Pensions Regulator to regulate pension superfunds.
(2) For the purposes of this section, a pension superfund is a defined benefit pension scheme that allows for the severance of an employer’s liability towards a defined benefit scheme and one of the following conditions applies—
(a) the scheme employer is replaced by a special purpose vehicle (SPV) employer, or
(b) the liability of the employer to fund the scheme’s liabilities is replaced by an employer backed with a capital injection to a capital buffer.
(3) The statement under subsection (1) shall be laid before Parliament before the end of a period of six months from the day on which this Act receives Royal Assent.”
This new clause would require the Secretary of State to publish within six months of Royal Assent proposals for primary legislation to place a duty on the Pensions Regulator to regulate pension superfunds.
Amendment 15, in clause 118, page 104, line 19, at end insert—
“(3) Requirements prescribed under subsection (2) must include a requirement that a pensions dashboard service may not include a facility for engaging in financial transaction activities.”
This amendment ensures that a pensions dashboard does not include a provision for financial transaction activities.
Amendment 9, page 105, line 20, at end insert—
“(6A) A requirement under subsection (6)(d) may require the provider of a pensions dashboard service to ensure that the needs of people in vulnerable circumstances, including but not exclusively—
(a) persons who suffer long-term sickness or disability,
(b) carers,
(c) persons on low incomes, and
(d) recipients of benefits,
are met and that resources are allocated in such a way as to allow specially trained advisers and guidance to be made available to them.”
This amendment would require that specially trained advisers and guidance are made available to people in vulnerable circumstances and would provide an indicative list of what vulnerable circumstances should include.
Amendment 10, page 105, line 20, at end insert—
“(6A) A requirement under subsection (6)(d) may require the provider of a pensions dashboard service to communicate to an individual using the dashboard the difference between—
(a) provision of information,
(b) provision of guidance, and
(c) provision of advice.”
This amendment would require the provider of a pensions dashboard service to ensure that users are made aware of the differences between “information”, “guidance” and “advice”.
Amendment 11, in clause 119, page 108, line 18, after “scheme,” insert—
“(iva) the total cost of charges incurred for the administration of the scheme”.
This amendment would add information about the total cost of charges incurred for the administration and management of occupational pension schemes to the list of information displayed on the dashboard.
Amendment 13, in clause 121, page 112, line 42, after “scheme,” insert—
“(iva) the total cost of charges incurred for the administration of the scheme”.
This amendment would add information about the total cost of charges incurred for the administration and management of personal and stakeholder pension schemes to the list of information displayed on the dashboard.
Amendment 8, in clause 122, page 116, line 37, at end insert—
“(2A) Before any other pension dashboard services can qualify under section 238A of the Pensions Act 2004 (qualifying pensions dashboard service)—
(a) the pensions dashboard service under subsection (1) must have been established for at least one year, and
(b) the Secretary of State must lay before Parliament a report on the operation and effectiveness of the pensions dashboard service under subsection (1) in its first year.”
Amendment 14, page 116, line 37, at end insert—
“(3) Before any other pension dashboard services can qualify under section238A of the Pensions Act 2004 (qualifying pensions dashboard service) the Secretary of State must lay before Parliament a report on the operation and effectiveness of the pensions dashboard service, including the adequacy of consumer protections.”
This amendment would require the Secretary of State to report on the operation and effectiveness of the public dashboard service (including consumer protections) before allowing commercial dashboards to operate.
Amendment 7, in clause 123, page 117, line 34, at end insert—
“(2) In exercising any powers to make regulations, or otherwise to prescribe any matter or principle, under Part 3 of the Pensions Act 2004 (scheme funding) as amended by Schedule 10, the objectives of the Secretary of State must include ensuring that schemes that are expected to remain open to new members, either indefinitely or for a significant period of time, can adopt funding and investment strategies which are suited to the characteristics of such schemes.”
Amendment 1, page 117, line 34, at end insert—
“(2) In exercising any powers to make regulations, or otherwise to prescribe any matter or principle, under Part 3 of the Pensions Act 2004 (scheme funding) as amended by Schedule 10, the Secretary of State must ensure that—
(a) schemes that are expected to remain open to new members, either indefinitely or for a significant period of time, are treated differently from schemes that are not;
(b) scheme liquidity is balanced with scheme maturity;
(c) there is a correlation between appropriate investment risk and scheme maturity;
(d) affordability of contributions to employers is maintained;
(e) affordability of contributions to members is maintained;
(f) the closure of schemes that are expected to remain open to new members, either indefinitely or for a significant period of time, is not accelerated; and
(g) trustees retain sufficient discretion to be able to comply with their duty to act in the best interests of their beneficiaries.”
This amendment seeks to ensure that open and active schemes which are receiving regular, significant cash contributions and closed schemes are treated differently, in accordance with their differing liquidity profile.
Amendment 6, page 117, line 34, at end insert—
“(2) The Secretary of State must, on or before 30 June 2021, lay before Parliament a comprehensive impact assessment of the effect on the charitable sector of changes to defined benefit schemes made under Schedule 10.”
This amendment would require the Government to produce an economic impact assessment of the changes to defined benefit schemes upon the charitable sector.
Amendment 16, in clause 124, page 118, line 45, leave out subsection (8) and insert—
“(8) In this section and in sections 41AA, 41B and 41C—
(a) “the Paris Agreement goal” means the objectives set out in Articles 2 and 4.1 of the agreement done at Paris on 12 December 2015; and
(b) “other climate change goal” means any climate change goal approved by the Secretary of State, but does not apply to a climate change goal which fails to meet the objectives of the Paris Agreement goal.
41AA Alignment with the Paris Agreement goal
(1) Trustees or managers of occupational pension schemes of a prescribed description must develop, set and implement, and from time to time review and if necessary revise, a strategy for ensuring that their investment policy, objectives and practices (including stewardship activities) are aligned with the Paris Agreement goal or other climate change goal.
(2) Such a strategy is to be known as a “Paris-alignment strategy”.
(3) The objective of a Paris-alignment strategy must be to achieve net-zero greenhouse gas emissions by 2050 or sooner, consistent with the Paris Agreement goal or other climate change goal.
(4) Provision may be made by regulations—
(a) requiring the trustees or managers of a scheme, in determining or revising a Paris-alignment strategy, to take into account prescribed matters and follow prescribed principles—
(i) as to the level of detail required in a Paris-alignment strategy; and
(ii) as to the period within which a Paris-alignment strategy must be developed, set and effected;
(b) requiring annual reporting on the implementation of the Paris-alignment strategy and progress against the objective set out in subsection (3); and
(c) requiring a Paris-alignment strategy to be reviewed, and if necessary revised, at such intervals and on such occasions as may be prescribed.”
This amendment enables regulations that would mandate occupational pension schemes to develop a strategy for ensuring that their investments and stewardship activities are aligning with the Paris agreement goals, and include an objective of achieving net-zero greenhouse gas emissions by 2050 or sooner.
Amendment 17, page 119, line 7, after “scheme” insert
“and alignment with achieving the objectives of the Paris Agreement goal or other climate change goal”.
This amendment is consequent on Amendment 16.
Amendment 18, page 119, line 8, leave out “section 41A” and insert “sections 41A and 41AA”.
This amendment is consequent on Amendment 16.
Amendment 19, page 119, line 19, after “41A”, insert “, 41AA”.
This amendment is consequent on Amendment 16.
Amendment 20, page 119, line 21, after “41A”, insert “, 41AA”.
This amendment is consequent on Amendment 16.
Amendment 21, page 119, line 22, at end insert—
“(za) provide for the Authority to undertake a review of, and report publicly on, the extent to which the activities under sections 41A and 41AA are achieving effective governance of climate change risk and alignment of pension schemes with the Paris Agreement goal;”.
This amendment enables the regulator to publicly assess the progress and development of schemes’ strategies to achieve alignment with Paris agreement goals.
Amendment 22, page 119, line 25, after “41A”, insert “, 41AA”.
This amendment is consequent on Amendment 16.
Amendment 23, page 119, line 30, after “41A”, insert “, 41AA”.
This amendment is consequent on Amendment 16.
Amendment 24, page 119, line 37, after “41A”, insert “, 41AA”.
This amendment is consequent on Amendment 16.
Amendment 2, in clause 125, page 120, line 32, at end insert—
“(e) the results of due diligence undertaken by the trustees or managers regarding the intended transfer or the receiving scheme.”
This amendment enables regulations under inserted subsection (6ZA) of section 95 of the Pension Schemes Act 1993 to prescribe conditions about the results of due diligence undertaken in relation to a transfer request such as to determine that the statutory right to a transfer is not established if specific “red flags” are identified in relation to the transfer or intended receiving pension scheme. Amendments 3, 4 and 5 are related.
Amendment 3, page 121, line 27, at end insert—
“(e) the results of due diligence undertaken by the trustees or managers regarding the intended transfer or the receiving scheme.”
This amendment enables regulations under inserted subsection (5A) of section 101F of the Pension Schemes Act 1993 to prescribe conditions about the results of due diligence undertaken in relation to a transfer request such as to determine that the statutory right to a transfer is not established if specific “red flags” are identified in relation to the transfer or intended receiving pension scheme. Amendments 2, 4 and 5 are related.
Amendment 12, in schedule 9, page 178, line 14, after “scheme,” insert—
(iva) the total cost of charges incurred for the administration of the scheme”.
This amendment would add information about the total cost of charges incurred for the administration and management of occupational pension schemes in Northern Ireland to the list of information displayed on the dashboard.
Amendment 4, in schedule 11, page 192, line 20, at end insert—
“(e) the results of due diligence undertaken by the trustees or managers regarding the intended transfer or the receiving scheme.”
This amendment enables regulations under inserted subsection (6ZA) of section 91 of the Pension Schemes (Northern Ireland) Act 1993 to prescribe conditions about the results of due diligence undertaken in relation to a transfer request such as to determine that the statutory right to a transfer is not established if specific “red flags” are identified in relation to the transfer or intended receiving pension scheme. Amendments 2, 3 and 5 are related.
Amendment 5, page 193, line 15, at end insert—
“(e) the results of due diligence undertaken by the trustees or managers regarding the intended transfer or the receiving scheme.”
This amendment enables regulations under inserted subsection (5A) of section 97F of the Pension Schemes (Northern Ireland) Act 1993 to prescribe conditions about the results of due diligence undertaken in relation to a transfer request such as to determine that the statutory right to a transfer is not established if specific “red flags” are identified in relation to the transfer or intended receiving pension scheme. Amendments 2, 3 and 4 are related.
I rise to speak to new clause 1, together with amendments 2 to 5, and I am grateful to those from my party, the Conservative party and the SNP who have added their names to them.
New clause 1 addresses a serious flaw in the implementation of the pension freedoms that George Osborne announced in his Budget speech in 2014 and that were implemented the following year. This is what George Osborne said in that Budget speech on 19 March 2014:
“Let me be clear: no one will have to buy an annuity. We are going to introduce a new guarantee, enforced by law, that everyone who retires on these defined contribution schemes will be offered free, impartial, face-to-face advice on how to get the most from the choices they will now have.”—[Official Report, 19 March 2014; Vol. 577, c. 793.]
That was a recognition that there could be pitfalls in allowing people to do whatever they wanted with their pension savings—for many people, the largest sum of money they would ever have access to—and that the Government would have to ensure that everybody had access to guidance to help them make the best decisions.
The outcome of George Osborne’s promise is the Pension Wise service operated by Citizens Advice, and it is an excellent service. It is free and it is impartial, as George Osborne promised, and it gets very high satisfaction ratings from those who use it. The problem is that hardly anyone does use it, and new clause 1 is intended to fix that. The latest figures show that about one in 33 of those eligible for Pension Wise actually use it. Last month, the Department for Work and Pensions published a document entitled “Stronger Nudge to Pensions Guidance: Statement of Policy Intent”. That proposed the adoption of new nudges, which, according to the trials, would increase the take-up from one in 33 to one in nine. Well, that is not enough.
I am very grateful to my hon. Friend for his intervention. I agree that the Bill is sufficient in its current form to be able to achieve what we all want to achieve, which is to get pension funds to invest in a climate-aware way.
The last point that I will make in concluding is around this point on focus. In my experience, it is not the fund managers or the trustees whom we need to persuade or to make do anything, but the middle men and women—the gatekeepers, the investment consultants —who typically require a five-year track record and £100 million in assets held by fund managers and managed by fund managers. In my experience, that was always the issue. We were running money in a way that was really pushing things forward in terms of our climate targets. We knew that the pension clients really wanted to invest with us, but, because we could not meet the requirements of the investment consultants, we could not marry the two together. If we use the combined intellect, passion and energy of this House, from all parties, to come up with a solution to that, we could make great progress.
Order. I am going to suspend the House for a short time—probably five or 10 minutes—to allow some extra cleaning to take place. Could Members leave the Chamber, so that the cleaning can take place? The bell will ring a minute before we are due to resume.
On a point of order, Madam Deputy Speaker. I wonder if you could tell the House why there was the necessity for the further cleaning of the Chamber. I understand that this is the first time that this has ever happened. Is there anything in particular that the House needs to be informed about because of that arrangement?
I thank the hon. Gentleman for that point of order. We were asked to suspend the House just to ensure that there was a little bit of extra cleaning. I do not have any further information other than that, but I am sure that it is precautionary, and if there is anything further that Members need to be informed of, I am sure that they will be.
First, let me thank all those who have made contributions, which have been excellent. I thank the Minister for his response and the hon. Member for Grantham and Stamford (Gareth Davies) for the contribution he made just before me. It is a pleasure to speak on this issue. Although I know that this is not the purpose of this Bill, I cannot in all good conscience let the occasion go without raising the issue of the WASPI—Women Against State Pension Inequality Campaign—women, who still want their pension scheme. Once more, I look to the Minister for a response on that.
I want to speak to new clause 1 and some of the other amendments, ever mindful of the fact that the Bill provides for territorial extent, as set out in clause 117 and schedule 8, clause 120 and schedule 9, clauses 118, 119 and 129 and schedule 11. Pensions are a devolved matter in Northern Ireland, but this is an area where Northern Ireland has long maintained parity with Great Britain. There is, in effect, a single systems of pensions across the UK, with many pensions schemes, and indeed the regulator, the pensions ombudsman, the Pension Protection Fund and so on operating on a UK-wide basis.
Devolved government has now been restored in Northern Ireland, and we are pleased to have it in place. On 1 June, the Northern Ireland Assembly approved the legislative consent motion on the Bill, as introduced, and a further LCM will be necessary to cover amendments to the Bill, which the Northern Ireland Minister for Communities has agreed will be done and should extend this to Northern Ireland. So some things are positive on that.
I have been in contact with a number of pensions bodies that have expressed concern about the proposals in the Bill. We all know how essential a good pension is, and it is becoming more important with each month. I am sure that I am not the only one to have seen the losses in pensions in this year’s statement. I have a decent understanding of how my pension pays out, but I was listening to the girls in my office and it is clear that, although my staff members in their 40s and 50s have a grasp on their pension, the two staff members in their 20s and 30s do not and they do not seem to be able to understand just how it works. The older girls say, “I wouldn’t swap my pension but I like to see what is in it,” and they have already had a look at their pensions to know what they have. Many people are wise and astute enough to do that, but others are not and they have no understanding of what can be done. There is more to doing our best to secure our financial future than simply opening a letter—there has to be more than that.
The right hon. Member for East Ham (Stephen Timms) referred to new clause 1, which underlines the importance of an easily accessible, easy to navigate pensions dashboard that is easier to understand than an annual statement. The Association of British Insurers has said:
“Pensions Dashboards are a necessary addition to Automatic Enrolment. More than 10 million people have now been automatically enrolled into workplace pensions through inertia, and will need to find their pension pots and make decisions about them.”
We are all probably at that age, Minister, when we have to think about our pension pots, and if we are not doing so, there is something seriously wrong, because we should be. The ABI went on to say:
“Already 1 in 5 adults admit to having lost a pension pot and latest PPI research suggests that there is at least £19.4bn held in pots that consumers have lost track of.”
It is horrendous to hear that.
(4 years, 1 month ago)
Commons ChamberIt is nice to see my hon. Friend back in the House after her maternity leave. She speaks with appropriate compassion and she recognises some of the local organisations in her area. I encourage her to work with them and her council to help to ensure that the £170 million funding can be effectively distributed, so that the most disadvantaged children and families are truly helped. We want to make sure that that activity continues to support similar children through the holiday activity fund.
In order to allow the safe exit of hon. Members participating in this item of business and the safe arrival of those participating in the next, I am suspending the House for a few minutes.
(4 years, 2 months ago)
Commons ChamberBefore I ask the Clerk to read the title of the Bill, I should explain that although the Chair of the Committee would normally sit in the Clerk’s chair, in these exceptional circumstances, in order to comply with social distancing requirements, I will remain in the Speaker’s chair, although I will be carrying out the role not of Deputy Speaker, but of Chairman of the Committee. We should be addressed as Chairs of the Committee, rather than Deputy Speakers. Excellent.
Clause 1
UP-RATING OF STATE PENSION AND CERTAIN OTHER BENEFITS FOLLOWING REVIEW IN TAX YEAR 2020-21
I beg to move amendment 1, page 1, line 10, leave out from “State” to the end of line 15 and insert—
“shall lay before Parliament the draft of an order which increases each of the amounts referred to in subsection (1) above by a percentage no less than—
(a) the difference between the general level of earnings at the beginning of the period under review and the general level of earnings at the end of that period, or
(b) the difference between the general level of prices at the beginning of the period under review and the general level of prices at the end of that period, or
(c) 2.5%,
(none) whichever is the greater.”
This amendment would require the Secretary of State to up-rate the benefits to which this Act applies in accordance with the “triple lock” of the higher of increases in prices, increases in earnings or 2.5%.
With this it will be convenient to discuss the following:
Amendment 2, page 1, line 23, at end insert—
“(2C) No draft order laid before Parliament under section (2A) above may be made in the form of the draft until the Secretary of State has laid before Parliament a report containing an assessment of the impact of its effect on levels of poverty.
(2D) The assessment required by paragraph 2C shall, in particular, consider the impact on levels of poverty in—
(a) Scotland, and
(b) Wales.”
This amendment would require the Secretary of State to lay before Parliament an assessment of the impact of the up-rating on levels of poverty, including in Scotland and Wales.
Amendment 3, page 1, line 23, at end insert—
“(2C) No draft order laid before Parliament under section (2A) above may be made in the form of the draft until the Secretary of State has laid before Parliament a report containing an assessment of its impact on persons not ordinarily resident in Great Britain, including the impact of exempting any such persons from entitlement to up-rating increases granted by the order.”
This amendment would require the Secretary of State to lay before Parliament an assessment of the impact on those overseas pensioners whose pensions are frozen in accordance with Government policy.
Amendment 4, in clause 1, page 1, line 23, at end insert—
“(2C) No power may be exercised under this or any other Act so as to exempt persons not ordinarily resident in Great Britain from entitlement to up-rating increases granted by an order made by virtue of section (2A) of this Act.”
This amendment would ensure that this up-rating applied to all overseas pensioners, including those whose pensions have previously been frozen in accordance with Government policy.
Amendment 5, page 1, line 23, at end insert—
“(2C) No draft order laid before Parliament under section (2A) above may be made in the form of the draft until the Secretary of State has laid before Parliament a report containing an assessment of its impact on those affected by the changes in the state pension age made by the Pensions Act 1995 and the Pensions Act 2011; and that assessment shall, in particular, consider the impact on women born between 6 April 1950 and 5 April 1960.”
This amendment would require the Secretary of State to lay before Parliament an assessment of the impact of the up-rating on those whose state pension age was changed by the Pensions Acts 1995 and 2011, including in particular the group known as the “WASPI women”.
Clause stand part.
Clause 2 stand part.
It is good to see that social distancing is being applied at all times. It was remiss of me not to welcome the Pensions Minister back to his place. I did send him a private message, and thoughts of him and his wife and family are very much with us all in this House. I do welcome him back.
These are five non-controversial amendments, which I hope— [Interruption.] We seem to have a laugh already from the Minister. I do not know why. He has obviously not read these non-controversial amendments. We have tabled some probing amendments and look forward to his response.
The first amendment is a theme that was picked up on Second Reading by the hon. Member for North East Fife (Wendy Chamberlain), which is to ensure that the triple lock is applied in legislation. The Government would have to give an explicit commitment to maintain the triple lock for the year ahead. The amendment seems to speak very much for itself.
Amendment 2 asks for an assessment on poverty, which again was picked up on Second Reading. It is certainly our view that the Government are overseeing some brutal benefit cuts, which have exacerbated poverty, and we require a proper impact assessment of the proposed uprating and the impact that has on poverty levels in each of the devolved nations.
Previous UK Budgets have introduced some fairly punitive cuts to social security—certainly the most punitive in recent memory—and we are starting to see an active reversal of reducing and fighting poverty. The Social Metrics Commission report, which was referred to at an earlier stage, notes that prior to the outbreak 14.4 million people in the UK were already living in poverty, including 33% of children, 22% of all working-age adults and 11% of pension-age adults. The largest employment impacts of covid have been felt by those in the deepest poverty, with many at risk of falling deeper into poverty as a result of job losses, reduced hours or reduced pay. We have tabled amendment 2 to provide for that impact assessment.
Amendments 3 and 4 deal with the issue of frozen pensions. UK pensioners deserve a full uprated state pension, wherever they choose to live. Due to the historical arbitrary bilateral agreements between the UK and other countries around the world, some UK pensioners who live overseas do not have their state pension payments uprated every year. That means that their pension is frozen at the level at which they first received it for the rest of their lives abroad. As of August 2019, that affected over 5,110 UK pensioners, who we believe are being adversely affected by the UK Government’s frozen pension policy. Pensioners who have paid the required national insurance contributions during their working lives in expectation of a decent basic pension and retirement find themselves on incomes that fall in real terms year on year. Pensioners will now face ending their days in poverty because they choose to live in the wrong country, in most cases without any knowledge of the implications of their choice for their pension.
In our view the state pension is a right, not a privilege. UK pensioners who have paid their fair share of national insurance contributions should not have to suffer simply because successive Governments have failed to establish bilateral agreements with certain countries. Therefore, we are asking that amendments 3 and 4 be agreed. I also refer hon. Members to the frozen pensions campaign, of which many hon. Members are members.
Amendment 5 relates to 1950s-born women, an issue that I am sure the Pensions Minister would be disappointed if I did not mention. As a previous Speaker of this House advised in 2015, persistence is not a vice. The amendment would require the Government to publish an assessment of the impact of uprating on those whose state pension age was changed by the Pensions Acts 1995 and 2011, including in particular 1950s-born women, or WASPI—Women Against State Pension Inequality Campaign—women, as they are known.
The numbers of ’50s-born women and men claiming working-age benefits has rocketed, and they should have been receiving their state pension. This is a double whammy, with those with occupational defined-contribution pensions to fill the gap being squeezed even further. Those claiming benefits find themselves having lost Government support in many cases, excluded either due to gaps in national insurance contributions, because of low-paid, precarious work, or because of other parts of household income. We are very aware of the history of 1950s-born women and the inequality they have faced throughout many parts of their lives. They now find themselves discriminated against on the basis of so-called equality, while those losing their jobs or seeking work are being further disadvantaged by an unequal playing field and a shrinking job market.
I look forward to hearing the Minister’s response to our amendments.
(4 years, 10 months ago)
Commons ChamberThank you, Madam Deputy Speaker, for granting an Adjournment debate on such an important issue.
The first duty of any Government is to keep its citizens safe, particularly the most vulnerable among us. This evening, I want to discuss the deaths of vulnerable social security claimants since 2014. That those deaths have been linked to the actions of the Department for Work and Pensions is a matter of grave concern. It shows abject failure on the part of not only the Department, but the Government. Ministers set policy and the Department implements it, so both are culpable. However, this is not just about what policies are implemented but about how they are delivered, and that relates to the culture in the Department. [Interruption.]
Order. May we have a little bit of quiet? We cannot hear what the hon. Lady is saying.
Thank you, Madam Deputy Speaker. I shall speak up.
As I was saying, the leadership determines the culture in an organisation. In a Department, that culture is determined by Ministers. It is a question not just of the policies and their implementation, but of the tone and culture that are related to their delivery.
We know that the Government’s health assessment process and sanctions regime leave sick and disabled people in fear and dread as they wait for the inevitable envelope to drop on their doormat inviting them to participate in a work capability assessment or a personal independence payment assessment, or possibly both. More than three quarters of claimants who appeal against assessment decisions telling them that they are fit for work have those decisions overturned, and that is because these are poorly people. We also know that in 2013 the death rates among people on incapacity benefit or employment and support allowance were 4.3 times higher than those in the general population, an increase from 3.6 times higher in 2003. That showed the level of sickness and ill health in that group of people.
Peer-reviewed research published in the Journal of Epidemiology and Community Health estimated that, between 2010 and 2013, work capability assessments were independently associated with an additional 590 suicides, 280,000 cases of self-reported mental health problems, and 725,000 antidepressant scripts. Not only are those assessments not fit for purpose; they are actually doing harm.
(4 years, 10 months ago)
Commons ChamberBefore I call the Minister to move motion 4, I should alert the House to the fact that the published Order Paper states, incorrectly, that the instruments referred to in motions 4 and 5 have not yet been considered by the Joint Committee on Statutory Instruments. In fact, they have been. The online version of the Order Paper has been corrected. I call the Minister, Will Quince, to move motion 4.
(5 years, 5 months ago)
Commons ChamberI inform the House that Mr Speaker has not selected either of the amendments listed on the Order Paper.
Order. This is a well-subscribed debate, as is the next one. I do not want to impose a formal time limit at this point, but if colleagues could take eight minutes or less that would be very helpful.
(5 years, 6 months ago)
Commons ChamberOrder. As colleagues will see, a good number of them wish to speak in the debate, and there is a further debate after it, so I am imposing a six-minute time limit, of which I was able to warn Members.
(5 years, 10 months ago)
Commons ChamberOrder. As colleagues can see, a number of speakers wish to contribute to this debate and to the debate after it. They are both very well subscribed. I am therefore going to impose a seven-minute time limit. I was able to warn the next speaker that that would happen.
Indeed, we have heard about the higher needs block; that is yet another area where there is cost-shunting.
On the twin-track system, what we need to do is look beyond: is one system better than the other? Actually, we have a lot to learn from the sorts of innovations that we are seeing in schools, but I am not convinced from the evidence we have seen in the Public Accounts Committee that we have a handle on the data. In our recommendations to the Department we have asked it to look at, for example, different types of multi-academy trusts—is there a difference between those that are locally based and those that are spread out or between the rural and the urban? Is there a north-south divide when it comes to academy trusts? What can we learn from the data? At the moment, when the accounts are produced, we do not have that data.
I very much echo what the right hon. Member for Harlow (Robert Halfon) was saying earlier. I firmly believe that this is not just a question of more money for schools. More money is welcome to get them working as they hope to now, but the issue is also about driving efficiency and spreading best practice. Without the data, how will we know what is working best?
Order. I gently remind colleagues that if they are going to intervene, it is important that they should have been in the Chamber for the whole speech and a little bit of the debate as well.
Order. There are still a number of Members who wish to speak, so after the next speaker I will reduce the limit to six minutes.
Order. In order to be able to get everybody in, I am going to have to cut the time limit to five minutes.