UNICEF: Child Poverty Rankings
Debate between Viscount Younger of Leckie and Baroness Altmann(9 months, 2 weeks ago)
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Viscount Younger of Leckie (Con)
I come back to the point that it is important to have statistics that are grounded. The noble Baroness will know that, over many years, we have used our own statistics for poverty, which are cross-government. The Government prefer to look at absolute poverty, as the noble Baroness knows, rather than relative poverty, as the latter can provide counterintuitive results. The absolute poverty line is fixed in real terms, so it will only ever worsen if people are getting poorer and will only ever improve if people are getting richer.
Baroness Altmann (Con)
My Lords, I know that my noble friend, who is an excellent Minister, is very concerned about this issue. I apologise for questioning him further, but it remains a struggle for unpaid carers of working age, who perhaps have children as well, to stay in or find work. What more can the Government do to support this important group?
Reducing Parental Conflict
Debate between Viscount Younger of Leckie and Baroness Altmann(1 year, 4 months ago)
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Viscount Younger of Leckie (Con)
Very much so. The noble Lord may know that we had a first challenge fund, and we now have a second challenge fund with eight interesting initiatives as part of RPC. For example, one of the challenge funds is looking at the digital side. This has a particular focus on ensuring that those who are not particularly digitally aware can be. The results of that will come out in due course, but I hope that answers directly the noble Lord’s question.
Baroness Altmann (Con)
My Lords, I am delighted to hear about all the work that my noble friend and the department are doing and that they have recognised how important the role of stability and the family unit is in creating family cohesion. Does my noble friend agree that it is also important to include the role of grandparents and intergenerational aspects? What are the Government doing in this respect on policy and actions?
Viscount Younger of Leckie (Con)
My noble friend makes an excellent point about the role of grandparents because I think, and I am sure that the Government think, that for stability within families—which now come in all shapes and sizes, and we must recognise that—the role of grandparents is incredibly important to feed down to their grandchildren certain lessons in life. The family test, which the House will know about, was introduced by the Government in 2014. It aims to bring a family perspective into policy-making, and various tests are used. This is something for which we are responsible in my department, particularly looking at the guidance and the raising of awareness about this initiative.
Pension Funds: Investments and Tax Relief
Debate between Viscount Younger of Leckie and Baroness Altmann(1 year, 5 months ago)
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Baroness Altmann
To ask His Majesty’s Government, further to tax relief provided to pension funds, what assessment, if any, they have made of the actions taken by pension trustees to ensure their investments (1) effectively manage climate risk, and (2) comply with treaties on human rights.
The Parliamentary Under-Secretary of State, Department for Work and Pensions (Viscount Younger of Leckie) (Con)
My Lords, the Government have introduced legislation and published guidance alongside the TCFD requirements to help pension schemes improve the quality of governance and manage climate risk. DWP committed to review the requirements in late 2023. These reviews will utilise insights from the regulator’s review of early reports and will also consider clarifications of fiduciary duty. DWP also launched an industry-led task force on social factors, which aims to produce a guide for industry by this November.
Baroness Altmann (Con)
I congratulate my noble friend the Minister and the Government on their work so far, but as at least 25% of all pension fund assets originated from taxpayer reliefs, does he agree that the Government have ample justification to expect pension funds to invest responsibly, supporting national objectives? Does he share my concern that this seems not to be happening? For example, Corporate Adviser magazine’s February 2023 ESG report shows that the three largest pension providers invest in cluster munitions, even though the UK is recent president and signatory of the international agreement to end their use, and that investment in domestic companies and green projects has been weak. Will the Government encourage or ensure that more of the taxpayer contribution to all pension funds helps UK markets and supports UK sustainable growth and climate and nature protections, to meet social or national objectives?
Viscount Younger of Leckie (Con)
I hope I can answer a number of the points that my noble friend made. On her general push, she is right: there is a lot more we need to do to encourage pension funds to invest in net zero. The introduction of the TCFD reporting requirements for pension schemes was pioneering; these regulations are still relatively new and it would be premature to judge their effectiveness, but a lot more is happening in this space, as my noble friend will be aware. As well as the task force, we have a stewardship review, which will assess the effectiveness of the guidance, and alongside this the Financial Reporting Council, which works alongside the FCA, my department and the regulator.
State Pension Underpayment Errors
Debate between Viscount Younger of Leckie and Baroness Altmann(1 year, 7 months ago)
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Viscount Younger of Leckie (Con)
Of course they are important. Any underpayment is incredibly important, as I am sure the noble Baroness would agree. The department became aware of issues with state pension underpayments in 2020 and, as mentioned earlier, the issues go back several decades and through different Governments. We have taken immediate action to investigate the extent of the problem and are carrying out highly complex scans of computer systems. Correction activity commenced on 11 January 2021; I say again that this is an important matter and we are moving at pace.
Baroness Altmann (Con)
My Lords, as the exercise is focusing on women, and women’s state pensions are still noticeably lower than those of men, are those who are entitled to arrears also entitled to some kind of compensation or consolation payment? How is my noble friend’s department prioritising the work?
Charitable Sector: Food Provision
Debate between Viscount Younger of Leckie and Baroness Altmann(1 year, 8 months ago)
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Viscount Younger of Leckie (Con)
I fully understand that some people prefer to use cash, and that is certainly possible. I will have to write to the noble Baroness on the spread of where cash can be used.
Baroness Altmann (Con)
My Lords, I do congratulate the Government on all the work that they have done in this area to try to help the most disadvantaged. I know that my noble friend cares deeply about these issues. Of course, the working poor have a real need, but can my noble friend tell the House what evidence there is that pensioners are using food banks, and what action the Government are taking to address pensioner poverty?
Viscount Younger of Leckie (Con)
My noble friend will not be surprised to hear me say that we are committed to action that helps alleviate levels of pensioner poverty. In answer to one of her questions, the HBAI statistics recorded that fewer than 100,000 pensioners were living in households where a food bank had been used. However, despite those figures, there is more to do.
The figures show that there are 200,000 fewer pensioners in absolute poverty than in 2009-10. Pension credit provides a vital financial support to pensioners. This is one of the actions that has been and is being taken by the Government, and it is proving to be very successful, with a 73% uptake in the last 12 months.
Pension Schemes: Guidance
Debate between Viscount Younger of Leckie and Baroness Altmann(1 year, 9 months ago)
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Baroness Altmann
To ask His Majesty’s Government, further to the report by Pensions For Purpose One year on—TCFD reporting for pension funds, published on 1 February, whether they intend to produce guidance for pension schemes in relation to their fiduciary duties.
The Parliamentary Under-Secretary of State, Department for Work and Pensions (Viscount Younger of Leckie) (Con)
My Lords, by October 2022 occupational pension schemes with assets above £1 billion fell into scope of DWP’s requirements to report in line with the task force on climate-related financial disclosures, the so-called TCFD recommendations. The department published guidance alongside the requirements to help pension schemes improve the quality of governance and manage climate risk. DWP committed to review the requirements in late 2023 and will consider whether pension schemes require additional guidance in relation to their fiduciary duties.
Baroness Altmann (Con)
My Lords, I thank my noble friend for that Answer and declare my interests as set out in the register. The Pensions for Purpose report highlighted a dilemma, in which some say that considering the real-world impacts of pension fund investments, including green or net-zero assets, infrastructure and housing, could be portrayed as trading off risk-adjusted returns against doing good. But does my noble friend agree that this is a false dichotomy? A failure to consider the climate and nature impacts of investments is likely to increase long-term risks and reduce returns, as opposed to pension funds that typically look at short-term performance measures. Can my noble friend ask relevant Ministers in the Treasury whether they will consider accepting relevant amendments that have been laid to the Financial Services and Markets Bill?
Viscount Younger of Leckie (Con)
Well, I will not be drawn on that by my noble friend, but the comments that she makes are broadly correct. It is very important that pension schemes, particularly those for purpose, encourage investments that align with the environment and society, and that includes climate change. I believe that the report, One Year On, outlines some pointers, insights or challenges. For example, most funds are using their investment consultants, while some are not yet using or including carbon offsets in their TCFD reports, but nothing in the findings so far is unfamiliar to DWP. We know there is work to do to improve the reports and build an element of expertise across the industries more generally.
Employment: Disabled People
Debate between Viscount Younger of Leckie and Baroness Altmann(1 year, 9 months ago)
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Viscount Younger of Leckie (Con)
Yes, indeed, I am aware of the question. Although I do not have an answer to that point, I will certainly write to the noble Baroness about it. I am not sure that she has asked it three times, but maybe she did so with my predecessor.
Baroness Altmann (Con)
My Lords, employment figures show that a significant number of older people have left the labour market. There is a large differential in healthy life expectancy across the country. Many people in their fifties and sixties are not well. Some may have left work due to ill health or disability but would be able to work part time. What more can the Government do to encourage flexible working to provide more help in this area?
Viscount Younger of Leckie (Con)
As my noble friend will know, all employees have the legal right to request flexible working provided they have worked for the same employer for at least 26 weeks. As she will know, under the Equality Act, employers must make reasonable adjustments to ensure that workers with disabilities are not substantially disadvantaged when doing their jobs. This could include a flexible working arrangement; for example, a change to the timing, hours or location of work. I assure her that in December 2022 the Government responded to a consultation that considered changes to this legislation to provide employees with better access to flexible working arrangements.
Pensions Tax Relief: Employment and Retention
Debate between Viscount Younger of Leckie and Baroness Altmann
Viscount Younger of Leckie (Con)
I note what the noble Baroness has said, but, on her point about flexibility, one of the actions that we have taken is extending partial retirement; for example, by allowing more NHS staff to take part of their pension while continuing to work and build further pension rights. We have also extended flexibilities enacted in response to the pandemic by suspending the 16-hour rule, which requires some pension scheme members to work no more than 16 hours per week if they return to NHS employment. So I reassure the noble Baroness that we have taken action, and I am sure that there is more that we can do.
Baroness Altmann (Con)
My Lords, I urge my noble friend to go back to the department and look again at the tinkering that has happened to the NHS pension scheme—this will not sort out the problem. The fundamental issue is the way that the annual and lifetime allowances deter extra work and drive early retirement. Although the Government have made commendable efforts to make some adjustments, those underlying problems persist. My noble friend said that this affects only the highest earners, but of course, within the NHS, these are often the most valuable members of staff, whom we need to keep.
Viscount Younger of Leckie (Con)
Indeed. The subject of the question was to do with higher earners, but I will broaden my response a little. Public service pensions are a key part of the overall renumeration in the public sector and I acknowledge that it is important to get this right for retention. Reference has been made to nurses. A typical NHS nurse will retire after 30 years with a pension worth over £24,000 per year in today’s money. This compares quite favourably to a private sector employee with similar earnings receiving less than £10,000. As I have said, there is more to do, and we will keep this under review.
Economic Situation
Debate between Viscount Younger of Leckie and Baroness Altmann
Baroness Altmann (Con)
My Lords, can my noble friend confirm that the Bank of England itself has played a role in what has been happening in the markets? Are there discussions between the Treasury and the independent Bank of England to urge it to extend, if necessary, the emergency measures that it has brought in, which are meant to expire tomorrow, to give the Chancellor an opportunity to restore confidence in the fiscal policy by 31 October with his Financial Statement and Budget Report? If this does not happen, the lack of action by the Bank of England that led to the currency turmoil the day before the mini-Budget, coupled with the loss of confidence in the Bank of England’s policy because it was about to unload £80 billion-worth of gilts in the market, will continue to unsettle the markets. The Bank of England needs to take some responsibility here.
Viscount Younger of Leckie (Con)
The Treasury is working with the Bank of England to monitor the implementation of the operations that the Bank has decided to undertake and the potential risks that it may pose, as well as continuing to monitor wider market conditions. It is thought that the announcements on Wednesday 28 September and the very recent ones on Monday 10 October and Tuesday 11 October will allow enough to be done. As I say, this is to settle the markets and to ensure that there is an orderly exit, as planned, from this Friday.
Transport for London: Funding
Debate between Viscount Younger of Leckie and Baroness Altmann
Viscount Younger of Leckie (Con)
I regret that I am not able to give an announcement on funding beyond tomorrow, but the noble Lord is right that investment in London benefits the economy and supply chain outside London. The Government recognise the need for certainty and stability in Transport for London’s capital investment programme, and remain committed to supporting London. But TfL’s income for 2021-22, including revenue from fares, road user charging, business rates and council tax—and our emergency support—is about the same as it was in the last year before the pandemic.
Baroness Altmann (Con)
Will my noble friend join me in congratulating the staff of, and those working in, Transport for London on keeping the service going so brilliantly during the pandemic, and on the way on which it has been recovering?
Viscount Younger of Leckie (Con)
Most certainly. My noble friend is absolutely right: about 26,000 staff work for TfL, and they work extremely hard on our behalf. As she pointed out, the difficulties that have arisen over the pandemic have been quite extraordinary, and I pay tribute to the staff on behalf of the Government.
Coronavirus Grants: Fraud
Debate between Viscount Younger of Leckie and Baroness Altmann(2 years, 10 months ago)
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Viscount Younger of Leckie (Con)
That is a very fair question and of course the sort of detailed question that I cannot answer. In terms of the fraud that we are looking to identify as part of the loan book, as of 17 December 2021 some £67 million worth of claims had been settled for the loan scheme. Of those, £13 million for 337 facilities had been flagged by lenders as suspected fraud. That is the sort of detail that we want to get into.
Baroness Altmann (Con)
My Lords, I too have sympathy with my noble friend the Minister, but will he reassure the House that the Government are looking seriously at the remarks and observations made by our noble friend Lord Agnew yesterday, particularly at any recommendations that he has for improving the situation and lessons learned at both BEIS and the British Business Bank, as well as at HMRC?
Viscount Younger of Leckie (Con)
I am aware that my noble friend has much experience in this area, linked to her work on pensions and in respect of HMRC. She is absolutely right: preventing fraud is incredibly important. We designed the schemes to prevent as much fraud as possible before any payments were made, while still quickly supporting those who needed them in unprecedented circumstances. For example, the first furlough payments went out within six days of being announced. We had to move quickly but, clearly, as she said, lessons will be learned.
Victims of the Troubles: Payment Scheme
Debate between Viscount Younger of Leckie and Baroness Altmann
Viscount Younger of Leckie [V]
The noble Lord is right in so many ways, but neither the Northern Ireland Office nor the UK Government will step in, because this is the responsibility of the Northern Ireland Executive. That is why these urgent talks, led by the Secretary of State and including all parties, are being conducted to take this matter forward.
Baroness Altmann (Con) [V]
My Lords, I recall the sense of relief when the Government legislated for the compensation scheme for those severely disabled, physically or psychologically, in Troubles-related incidents, and I know that my noble friend and the Government are eager for these payments to start. Are there any other avenues for those who desperately need the money to pursue at this time, especially those for whom there is no doubt that they are entitled to this compensation?
Viscount Younger of Leckie [V]
I have every sympathy with what my noble friend has said. We are urgently waiting for the victims who apply for payments to have a so-called acknowledgment payment, which is likely to be decided on a sliding scale relating to the severity of their injuries. To answer my noble friend’s question, some may already have received criminal injuries compensation or money through the Victims & Survivors Service, but we urgently need this acknowledgment payment.
Pension Schemes: Universities
Debate between Viscount Younger of Leckie and Baroness Altmann(7 years, 3 months ago)
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Viscount Younger of Leckie
I should just point out to my noble friend that the Government are not making statements about how much they should be paid. My honourable friend in the other place, Jo Johnson, made a speech this morning reiterating his point that universities should exercise great restraint in deciding how much to pay vice-chancellors and other staff and has set out a series of guidance. Furthermore, the Office for Students, which has been set up as part of the Act, will also be given greater powers and encouragement to set a remuneration code.
Baroness Altmann (Con)
My Lords, does my noble friend agree that there seems to have been quite a lot of scaremongering about this particular pension scheme? The assets of the scheme have performed well; it is well governed, has already adjusted its benefits in relation to the deficit that opened up in the 2014 valuation, and is now negotiating with universities and unions as to further adjustments that will be required. However, it is important to stress that student fees are set by the Government, and universities have sources of income that go well beyond the fees they receive from students. Much of the problem is caused by the exceptional policies that the Bank of England faces. This is an open scheme with strong cash flow and strong governance.
Viscount Younger of Leckie
My noble friend knows more than I do how complex managing pension schemes is. There are lots of variables and issues to consider. She is right that there was a review in 2014. In fact, there is a review of the scheme every three years and a recovery plan is in place. My noble friend is right: the recovery plan, we believe, is robust and will offer a good degree of stability for the next 30 years.
The DWP is publishing a Green Paper in February to build on the ongoing discussions on pension schemes in general. We will publish a response to the consultation in a White Paper this winter.