(1 day, 15 hours ago)
Lords ChamberMy Lords, it looks like we have the graveyard slot this evening. I am very sorry indeed that the House is so empty for such an important and serious subject. In fact, it feels more like a bilateral session—or perhaps I should say trilateral, if we bear in mind the Liberal Democrats. However, I thank the Minister for repeating this Statement made earlier in the other place. On this side, we are acutely aware of the long-running campaign by the WASPI women. The decision made today by this new Government will be a great, and in some cases devastating, disappointment for them.
We understand the strength of feeling on this. The Minister will not need reminding that in March the previous Government responded to the long-awaited report by the ombudsman, the PHSO, and I recall repeating the Statement in this House. The House should be reminded that it took well over five years for the ombudsman to produce its final report—the result of an investigation spanning over 30 years. When the report came, as the Statement outlines, the ombudsman took the unusual step of laying the report in Parliament and asking Parliament to make decisions in respect of remedy, instead of making recommendations itself. So here we are today with the remedy made by this Government.
I say at the outset that we take considerable offence at the right honourable Secretary of State for Work and Pensions in the other place politicising this. She said this afternoon that her Government would make the decisions in reference to the WASPI matter when the previous Government were not prepared to make them. This is unbecoming, and the Minister knows full well that it is simply incorrect. Will she agree that when the PHSO report was published in March, any Government would have needed the time to reflect on it? The election, she will know, was called in June, and back in March we said we would provide a report to the House once we had considered the findings. Where are we now? Is that not exactly what this Government have done? Will the Minister acknowledge this?
In making the decision that
“there should be no scheme of financial compensation to 1950s-born women”,
the Government have repeated their long-playing record on their economic inheritance, as I heard in the other place earlier today. Can the Minister confirm how much of today’s decision—her Government dismissing the significance that the ombudsman placed on the delayed letters sent to the women—was based on this, and how much was based on the Government’s own analysis, from the PHSO report, that the case of the WASPI women was weak?
I am glad that the Government have taken responsibility for the events that occurred on the last Labour Government’s watch—namely, for the decisions made between 2005 and 2007. They led to a 28-month delay in sending out letters, which the ombudsman identified as maladministration. As I said earlier, while I am sure that the Government’s Statement today will be a disappointment to many WASPI women, I understand why they have taken this decision. As the Minister said, paying a flat compensation rate to all women at a cost of up to £10.5 billion would not be a fair or proportionate use of taxpayers’ money.
On lessons learned, can the Minister tell us more about the action plan that the Government are working on with the ombudsman? What are the timings, and will it be published? That would at least give some comfort to those involved. If the Chancellor deems that future economic circumstances allow it, will the Government rethink their policy? Is this a temporary decision made in respect of the WASPI women, or is there a plan at any stage in the future to look to a financial remedy? That is a very interesting point.
Have the Government made any assessment of the number of women whose cases are strong? If not, why not? Why have they decided not to pay compensation to this cohort at least? Can the Minister explain how they are going to communicate this devastating news to the WASPI women individually, estimated to be in excess of 3 million, beyond the Statement issued today? What actions will the Government take to support the women, including some necessary pastoral or mental health assistance? Is there a plan? Given that the Government have not agreed with the ombudsman and have overridden some of its views in the report, such as disagreeing with the importance attached to the non-arrival of the letters, how much confidence do they now have in the ombudsman?
In a letter from the Minister to all Peers received today, for which I give thanks, she writes:
“Even taking the difficult decisions we are faced with in government, we feel a deep sense of responsibility to ensure that every pensioner gets the security and dignity in retirement that they deserve”.
I say quite so, and warm words indeed, but does she really mean this? I have to contrast it with the Conservative’s support for pensioners—the action on the ground. This includes introducing and protecting the triple lock, which has seen the state pension increase by £3,700 since 2010, meaning that there are now 200,000 fewer pensioners living in absolute poverty. The Conservatives introduced pension reforms, ensuring that everyone is automatically enrolled in a workplace pension scheme. The Conservatives introduced the winter fuel payment, ensuring that no pensioner has to live in a freezing cold home.
I suspect the House will know where this is leading. This announcement is another blow—one of many that have hit pensioners since 4 July. Regarding the Government’s decision to cut the winter fuel allowance, can the Minister update us on the actual numbers of pensioners who have taken up pension credit, not just percentages? Is she comfortable with the current pension credit uptake numbers? How is this affecting the £1.6 billion announced and the expected saving for the Treasury resulting from the cut in the winter fuel allowance?
With these myriad questions, I look forward to the Minister’s responses on another very difficult day for the Government.
My Lords, today will be a day of disappointment for many women. They will feel that this new Government, by ignoring the independent ombudsman’s recommendations, have turned their back on the millions of pension-age women who were wronged through no fault of their own. That has to be of concern.
Liberal Democrats have long backed calls for women born in the 1950s affected by the pension changes to receive proper compensation for the Government’s failure to properly notify them of the changes, and have long supported the ombudsman’s findings. Today’s announcement is a hammer-blow to these women, who have fought tirelessly for many years to be properly compensated. I appreciate that the Government have had to make difficult decisions, but have they chosen to ignore the PHSO’s recommendations because they disagree with the findings or because they do not want to find the money to rightly compensate these women?
The PHSO’s ruling in March recommended that some women should get a payout and an apology. Obviously today they have received an apology, but they will not receive a penny of compensation for the maladministration found by the PHSO. Will the Minister outline why the Government have chosen to accept one half of the recommendation but not the other?
One WASPI woman dies every 13 minutes while this appalling scandal continues. Today’s announcement will be devastating for the WASPI community, which has campaigned tirelessly to rectify the maladministration. Does the Minister really think that today’s announcement is a fair solution?
Finally, in her letter to us today, and in the Statement, the Minister promises that this Government will protect the pensions triple lock, so that the yearly state pension is forecast to increase by up to £1,900 by the end of this Parliament. I welcome this promise. The pensions triple lock was a Lib Dem policy adopted by the coalition Government and I am proud of it, but this will be advantageous to all pensioners, not merely the WASPI women. Sadly, it in no way compensates these women for their losses. My colleagues in the other place have promised that they will continue to press Ministers to give those affected the fair treatment they deserve.
To ask Her Majesty’s Government what progress they have made in implementing the Wales Act 2014.
The Wales Act 2014 took forward the vast majority of the recommendations of the independent Silk commission. Business rates have now been fully devolved to the Assembly. The Government are taking forward the devolution of stamp duty land tax and landfill tax in time for April 2018. The Act will make the Assembly and the Welsh Government more accountable to people in Wales and enable them to support stronger economic growth.
During the passage of the Wales Bill through this House, Members debated and agreed to the amendment tabled by my noble friend Lord German to allow the names of the first four candidates of each political party to appear on the ballot papers for the regional list in the Assembly elections in 2016. With fewer than seven months to go before those elections take place, can the Minister tell me by what means and by when this decision will be implemented?
My Lords, we intend to lay the draft order in Parliament later this autumn. The Government of Wales Act 2006 provides that parties may nominate 12 candidates for each Assembly region. Ultimately it is for the Secretary of State to determine how this is reflected on the new regional ballot paper. The order prescribing this has already been shared with the Electoral Commission—as is normal—and with administrators on an informal basis with a view to the final draft being prepared and shared very shortly.
(10 years, 6 months ago)
Lords ChamberWe know that some households, including those with children, are seeing the amount that they spend on food increase but there is much that the Government are doing to resolve this. The Government provide a number of schemes to help the most vulnerable to afford and have access to nutritious foods, such as the Healthy Start scheme and free school meals. However, we also recognise the extremely valuable work of civil society in supporting local communities. There has always been a tradition in this country of voluntary and charity organisations providing support to people, as the noble Baroness will know, in addition to the safety nets that the Government provide.
My Lords, many workers on minimum wage continue to be trapped on low pay. The Resolution Foundation recently suggested that some sectors of the economy and businesses in London could probably well afford to pay more than the minimum wage, and recommended that the Business Secretary ask the Low Pay Commission to publish an analysis of the situation. Do the Government endorse the foundation’s recommendation?
We encourage businesses to pay the living wage—indeed, the living wage or above. However, I say again that a mandated pay floor, completely detached from an affordable level, is likely to bring about job cuts. The National Institute of Economic and Social Research has estimated that increasing the national minimum wage to the living wage would cause a net job loss of 160,000.
The noble Lord makes a very good point about the living wage. It is good to note that 80% of all employers pay above the living wage, but I am the first to say that there is much more to do. The Government support employers who choose to pay the living wage. However, decisions on what wages to set are for employers and workers to agree, as long as employers pay at least the national minimum wage.
My Lords, in too many instances, the minimum wage has become the maximum wage that employers are prepared to pay, leaving many workers trapped on low pay. As the economic recovery begins, what encouragement and support can the Government give to employers, particularly small businesses, to redress the balance and ensure that their employees can also reap the benefits of our improving economic situation?
My noble friend may be alluding to the recent report from Professor Sir George Bain on the future of the national minimum wage. We are considering all the recommendations and their implications in advance of the 2015 LPC agreement. I agree with George Bain’s finding that the national minimum wage has been a huge success in improving low pay and reducing exploitation in the UK labour market. The Government, however, think that the simplicity of the national minimum wage and the independence of the LPC remain key to its success.