State Pension Changes: Women

Alan Brown Excerpts

Tuesday 12th March 2024 Westminster Hall

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Like everybody else, I thank the hon. Member for Strangford (Jim Shannon) for bringing this debate forward, and also for sponsoring my private Member’s Bill—the State Pension Age (Compensation) Bill—which is aimed at compelling the UK Government to bring forward a compensation framework for the 3.8 million women affected by the state pension increase without proper notification, including 13,000 in my constituency.

Given that the ombudsman concluded at stage 1 in July 2021 that the DWP was guilty of maladministration, we in this place should not be having to force this issue. Would it not have been comforting to see, for once, our Government care to step in and do the right thing by way of remedying an injustice? Of course, as have others said, as with the infected blood scandal, the postmasters scandal and the green deal mis-selling, they do nothing and hope the issue just goes away. They have ignored this issue for nine years, but at least it still has not gone away, even if too many politicians have already given up for my liking.

We are talking about women who did not have maternity rights back in the day, who were paid less than men, who were more likely to work part time, and whose private pensions, if they had them, were smaller than men’s. In reality, the pension age equalisation was a further prejudice against these women, especially the many who had already retired before they got the bombshell notification that they needed to wait six years before they could access their state pension.

They then found out that the number of national insurance-contributing years required to receive the full pension had been increased, so many did not even have the opportunity to contribute enough NI to receive the full pension. That is another double whammy for these women. It really is time that the Government accepted the WASPI call for fair and fast compensation—for money that can be paid out to these women. That money will eventually be clawed back for the Government in taxes anyway, but it will also provide a local spending boost.

We also need to hear today from the Labour Front-Bench team what their position is. For too long, they have been quiet on this topic. For too long, we keep hearing that Labour is going to stick to Tory spending plans, which means austerity 2.0, including £19 billion of future departmental cuts. I hope that the Labour Front-Bench team commit to providing fair and fast compensation for the WASPI women if the Government do not step up to the plate. Let us not be kidded: we cannot have any faith in this fag-end Government stepping up to the plate.

When I presented my ten-minute rule Bill, I put a number of personal testimonies on the record. I hope the Minister will look at some of them, because they show what life is like for many people affected by the state pension increase. Unfortunately, I do not have time to go through those testimonies right now, but they talk about people losing their homes, being dependent on partners, being forced to try to get back into work, struggling on benefits to get by, and struggling on small private pensions because they did not have enough money or enough warning from the Government. Yet again, I say, pay that compensation and step up to the plate.

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[Gill Furniss]

However, I can say that I have been meeting the WASPI women regularly since I took this role just a few months ago. I am honoured to be in what I believe is a friendly and honest dialogue with them, and I will continue to do that throughout the coming months and beyond, should I be in the same position.

[Alan Brown]

If the hon. Member’s dialogue is a friendly and honest one, she should be able to say whether the Labour party agrees with the principle of compensation for the WASPI women.

[Gill Furniss]

I believe I have already answered that. I am not here to announce our manifesto. I am here to debate like those who have already and I am here to listen, but I cannot announce our manifesto.

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[The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)]

It is a pleasure to serve under your chairmanship, Sir Gary. I thank the hon. Member for Strangford (Jim Shannon) for securing this debate and all Members who have contributed to it.

This has been a valuable and constructive debate focused on the issues of compensation for 1950s-born women affected by state pension age changes. I recognise that there is a huge strength of feeling among 1950s-born women about the increase to their state pension age and the way in which it was communicated. We have heard today about people who have had difficult personal circumstances to manage, and their struggles are regrettable in the extreme. I am grateful to all Members who have participated. It is important that Members on all sides are able to tell the stories of so many of their own constituents. Indeed, I pay tribute to many of my own constituents whom I have sat with and listened to on a number of occasions as they explained their circumstances. It is important that such testimony is uppermost not just in my mind as the Minister, but in the mind of Government more widely.

I note that the Member in charge of the debate, the hon. Member for Strangford, is a Northern Ireland MP. For the record, I will set out how Northern Ireland manages its own system for dealing with complaints such as this; as he will know, such matters are for the Northern Ireland Public Services Ombudsman to address. Any question relating to Northern Ireland must be directed to the relevant authorities in Northern Ireland. All DWP policy areas are transferred in Northern Ireland, including pensions. However, the equivalent Department in Northern Ireland, the Department for Communities, historically has maintained parity with the DWP on matters of social security, child maintenance and pensions.

As House is aware, the Parliamentary and Health Service Ombudsman’s investigation into state pension age communication is not complete. The date of publication is a matter for the ombudsman. As the investigation remains ongoing, I cannot comment on it, as the ombudsman’s investigations are confidential. The privacy rules extend to all parties involved in the investigation.

[Alan Brown]

The Minister is right about probity and the fact that the ombudsman’s investigations are to remain quiet. Does he accept that after stage 1 it is still in the Government’s hands to bring forward compensation? They do not have to wait until the conclusion of further stages.

[Paul Maynard]

I will come on to the sequencing and the importance of the different stages shortly, but I am reminded that the Parliamentary Commissioner Act 1967 states that ombudsman investigations that are not complete

“shall be conducted in private”.

The ombudsman has made some information about the investigation public via its website. It published the final version of stage 1 of its report on the website in July 2021. The report said that

“these women should have had at least 28 months’ more individual notice of the changes than they got.”

These findings relate to a specific window of time between August 2005 and December 2007. The report also found that

“between 1995 and 2004, DWP’s communication of changes to State Pension age reflected the standards we would expect it to meet.”

I know that there is frustration among Members of this House and their constituents about how long the investigation has been ongoing, and about the fact that the ombudsman has yet to publish his final report. It is a complex investigation that spans over 30 years, as equalisation of the state pension age was enacted in 1995. The ombudsman provides an independent complaint handling service for complaints that have not been resolved by UK Government Departments and the NHS in England. The ombudsman is managing the investigation in stages, and publication of the final report is entirely a matter for the ombudsman.

Oral Answers to Questions

Alan Brown Excerpts

Monday 13th November 2023 Commons Chamber

[Guy Opperman]

It is good to welcome the hon. Lady to the Dispatch Box; I have not previously had the chance to answer her questions. We have undertaken TV campaigns, internet campaigns and campaigns on the radio, in print and on social media—the great Len Goodman assisted us in that regard before his passing—so there is fantastic support across all aspects. The hon. Lady should be aware that pension credit applications were up 75% in the year to May, and we have never had so many people as we are now seeking to encourage to apply. Absolutely, the Government are fully behind the pension credit campaign.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

15. Whether he has made an assessment of the potential impact of proposed reforms to work capability assessments on the (a) financial and (b) mental wellbeing of people with Parkinson’s disease.

[The Minister for Disabled People, Health and Work (Tom Pursglove)]

The Department has developed estimates of the number of claimants impacted by options considered in the work capability assessment consultation. Estimates are not based on specific conditions, because the work capability assessment is based on how a person’s condition affects them, not the condition itself.

[Alan Brown]

The proposed changes to the work capability assessment could actually see half a million people forced to look for work they are not cut out for and then at risk of sanctions. The proposed changes on continence, mobility and social engagement are putting thousands of Parkinson’s sufferers at risk of being denied the benefits they need, causing needless stress and financial pressures. Will the Secretary of State meet me and Parkinson’s UK to discuss the impacts on those suffering from Parkinson’s? Hopefully the Government will then change their mind on these cruel proposals.

[Tom Pursglove]

What I can say to the hon. Gentleman is that no decisions have been made. It is right and proper that the consultation responses are properly considered in the normal way. I would be happy to meet with Parkinson’s UK again; I met it previously, and it is an important stakeholder for the Department. We do think it is right that we look at the work capability assessment and review it periodically, not least because of the changes we have seen in homeworking and flexible working in recent years.

State Pension Age: Review

Alan Brown Excerpts

Thursday 30th March 2023 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the SNP spokesperson.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

I thank the Secretary of State for advance sight of his statement. The Work and Pensions Committee called on the Government to publish the reports by Baroness Neville-Rolfe and the Government Actuary, which have been used to inform the review of the state pension age, and it is regrettable that that did not happen in good time. I am sure that many of us are left wondering why the Government did not publish those reports earlier to allow proper parliamentary scrutiny and a more informed decision. Is it not the case that this is a political decision because this Government, who are at the end of their days, do not want another fight before the next general election?

We in the SNP oppose further increases to the state pension age. We are glad that life expectancy is now finally being factored into the wider consideration of what is an appropriate state pension. The reality is that Tory austerity, followed by covid, has caused an overall reduction in average life expectancy figures. The UK has one of the worst state pensions in western Europe; too many pensioners in Scotland live in poverty, which is a damning indictment in what is supposed to be the sixth largest economy on the planet. Is the Secretary of State not embarrassed that pensioners on these islands have to choose between heating and eating in 21st century Britain? He talks about a reduction in poverty rates, but that is because the Government are using lagged data to analyse poverty rates and ignoring the cost of living crisis that is on us now. With 7 million households in fuel poverty, the Government cannot talk about poverty rates decreasing.

There is evidence that increasing the state pension age from 65 to 66 caused absolute poverty rates to rise. Has the Secretary of State seen the Institute for Fiscal Studies report on that and, if so, has it been part of the decision-making process? What lessons has he learned from the Women Against State Pension Inequality Campaign about raising the state pension age for women born in the ’50s? When will they see some compensation?

Finally, we look forward to an independent Scotland being the best place to grow old in prosperity, not in poverty with a Westminster Government we did not vote for.

[Mel Stride]

The hon. Gentleman raises several points. First, on the publication of Baroness Neville-Rolfe’s report, I have always been clear that we would publish that at or around the time that my report of the review was released, and that is precisely what we have done, including by giving advance sight of my report and her report to the Opposition.

I believe that the hon. Gentleman’s remarks about pensioner poverty are misplaced. Pensioner poverty has fallen since 2009-10, as has poverty across other cohorts of the economy. He will, of course, be aware of the huge amount that this Government have been doing by way of intervention to ensure that we support low-income households, and pensioners up and down this country—many millions of them—with billions of pounds of targeted transfer payments, which will be going out over the coming months.

Finally, the hon. Gentleman mentioned the WASPI women. He will know that I am not able to comment on that matter as it is subject to a current inquiry by the parliamentary ombudsman.

State Pension Triple Lock

Alan Brown Excerpts

Tuesday 8th November 2022 Commons Chamber

[Jonathan Ashworth]

My hon. Friend has described with great eloquence the real-life impact that this cut will have on our constituents. Although I do not know the particular circumstances of the family she refers to, they may well be reliant on other social security payments, and we have no clarity from the Government about whether they will also be cut in real terms.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Does the right hon. Gentleman agree that those other social security payments also need to be uprated in line with inflation? If so, should Labour not have made the motion wider to include that?

[Jonathan Ashworth]

Today’s debate is about the triple lock, but we do agree that payments such as universal credit should be uprated in line with inflation and not suffer a real-terms cut.

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[Mel Stride]

My hon. Friend is entirely right. That is precisely the point I am making. It would be entirely irresponsible for any member of the Government to prejudge or give a running commentary on anything that may appear in that statement.

[Alan Brown]

Can the Secretary of State outline why it would be irresponsible to confirm that the Government are keeping a manifesto commitment and promise?

[Mel Stride]

As I have set out, we are facing what is being called a Budget. It is a major fiscal event and many decisions will be taken within it. It would not be right for a member of the Government at the Dispatch Box to prejudge what may be included in it.

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[Mel Stride]

The hon. Lady asks from a sedentary position why poverty is going up, and I will come to poverty in a moment. There is no doubt that my hon. Friend the Member for Gloucester is right: for a long time the Government have stood up for the interest of pensioners as one of our prime priorities, and we know why. Many pensioners are particularly vulnerable. When economic conditions are difficult—as they are at the moment—it is hard for them to adjust their economic circumstances, to re-engage with the workforce and so on, so it is important that we have that duty.

I turn to poverty. Since 2009-10, 400,000 fewer pensioners are in absolute poverty—before or after housing costs—and the proportion of pensioners in material deprivation has fallen from 10% in 2009-10 to 6% in 2019-20. Over the much longer sweep since 1990, relative poverty has halved, but there is still more to be done.

[Alan Brown]

Does the Secretary of State accept that poverty analysis figures lag real time and that poverty figures are going up? We only have to look at how an estimated 6.7 million households are in fuel poverty. Will he remember that when he stands at the Dispatch Box and talks about figures coming down?

[Mel Stride]

Those figures are simple facts about what has happened to absolute poverty across the period that I quoted.

I turn to an important issue: the economic circumstances in which the country finds itself.

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[Mel Stride]

Mr Speaker, you are a man after my own heart. We are on the same page and I could not agree with you more. Thank you very much indeed for that timely intervention.

That brings me to my closing remarks.

[Alan Brown]

Will the Secretary of State give way?

[Mel Stride]

I will not.

I respect the fact that the right hon. Member for Leicester South brought forward the motion and, to the extent that it underlines the absolute importance of standing up for our pensioners, I welcome it. Government Members will always be there to support pensioners. We always have been in the past, we are now and we always will be.

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[Alan Brown (Kilmarnock and Loudoun) (SNP)]

I will pick up some of the Secretary of State’s comments. He started off by trying to claim that there was not much illumination from the shadow Secretary of State’s speech, but we got absolutely no illumination from his speech, either. There is still no clarity on what the Government are going to do. As I said, it is just not adequate to say, “It’s irresponsible to come forward and provide clarity on what is going to happen on the triple lock.” The Secretary of State kept talking about being honest with the public, so he should be honest and tell us what will happen with the triple lock.

The Secretary of State attacked Labour with the old trope about Labour doing borrowing. I am sure that, not that long ago, he was backing the mini-Budget that was all about borrowing to give tax cuts to the rich. That was economic madness. Does he want to come back to the Dispatch Box and apologise for that?

I am happy to support the motion. It is simple and, as it references the Tory manifesto, it should win the entire House’s support—hopefully without the chaos that we witnessed in the Opposition day debate about fracking. I note that that was also the day when the former Prime Minister was questioned at the Dispatch Box by my right hon. Friend the Member for Ross, Skye and Lochaber (Ian Blackford); she did her 55th U-turn and said that she would protect the triple lock, so it should be easy for the Government to further confirm that, rather than holding on to the line about waiting until next week.

Last year’s breaking of the triple lock cost each pensioner £520 on average during the cost of living crisis, and the Red Book shows that it will take £30 billion in total from pensioners by 2026-27. At least uprating the state pension this year in line with September’s 10% inflation rate would give certainty of income to its recipients.

However, we should also look at the reality. If the triple lock is reinstated and pensions are uplifted, we are actually almost celebrating not cutting pensions in real terms in the Budget. That is how desperate things are. If that is the measure of compassionate conservativism—not making further cuts to pensions—then it shows the reality of where we are with this Government.

In terms of inflation in the here and now, we know from the Office for National Statistics that tea is up 46%, pasta is up 60% and bread is up 38%. The price of budget food in supermarkets is up an astonishing 17% in the year to September. On energy costs, the average bill, based on the previous cap, was £1,100 a year just a year and a half ago. Now, with the so-called energy guarantee, we are supposed to be pleased that bills are now, on average, £2,500 per year during the winter period.

For the Energy Prices Act 2022, the Government’s own figures estimated that energy bills would go up on average to £4,400 without the support package. That is almost 50% of an average state pension. Given that it is perfectly obvious that pensioners are more likely to use more energy than an average household, it is not just the triple lock that needs to be reinstated; we need this Government to come forward with confirmation of what the future energy support package will be for those who need it. The Secretary of State talked about protecting the most vulnerable. Well, they need to know what is happening with energy going forward as well.

In Scotland, average usage already means that bills are in the order of £3,300 per annum even with the current energy support package, so for people on fixed incomes it really is unaffordable.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I am grateful to my hon. Friend, who is telling it like it is for people in their homes just now. He is talking about energy costs. That does not include those people, including pensioners, who live off the gas grid and are therefore paying far, far more than those he is quoting.

[Alan Brown]

I agree wholeheartedly with my hon. Friend. The £100 payment to those off gas grid is almost an insult, because it does nothing to help them fill their oil tanks.

In a similar vein on inflation, petrol prices are still massively up compared with recent years. I drive an Insignia, which is not a huge car, but last week it still cost me over £100 to fill the petrol tank. That is clearly unaffordable for those on a fixed income, and it would account for 55% of one week’s full pension.

When we look at the UK in the round, we see that it is one of the most unequal countries in the world. Unfortunately, that inequality continues during retirement. The Gini coefficient shows that the UK is 14th out of 14 north-west European countries. It is the same for the S80:S20 quintile share ratio; when we compare the ratio of the poorest to the richest, the UK has by far the worst ratio and is again 14th out of 14. Scandinavian countries—all small, independent countries—lead the way on these measures.

Poorer pay and lower incomes for those struggling also means that later on in life they are less likely to have private pensions and so are reliant on the UK state pension. Again, the UK state pension fails in comparison with those of other countries. When we look at the proportion of earnings derived from state pensions, the UK sits 30th out of 37 OECD countries. I understand that there is an argument that it can be good to move away from dependence on state pensions, but the UK is clearly among outlier countries near the bottom of the pile, and way below the OECD average. Many people are using occupational pensions and capital as sources of income, but that increases inequality in pension age for those without access to such means.

If we look at the UK’s flat pension rate and compare it with other countries that pay a flat rate—Ireland, Denmark and the Netherlands—we see that the UK rate is again lower and fails in comparison. If we look at state pension expenditure compared to a country’s GDP, we see that the UK is again way below the OECD average and is ranked 28th out of 38 countries. Ministers might say that those measures can be somewhat subjective, but the UK trails in each one, so there is a common theme. One other measure is the replacement rate that compares all sources of pension income versus previous earnings. On this measure, the UK, with an average over 10% less than those of the EU27 and the OECD, is ranked 19th out of 37, so still in the bottom half of the table.

As I have stated, this means that inequality in the UK continues into retirement and the UK has the 12th highest pensioner poverty rate out of 35 countries measured by the OECD. What that means, if we turn that around, is that in terms of disposable income to support a standard of living for those aged 66-plus, the UK is ranked 24th out of 35 countries, while Iceland, Denmark and Norway occupy the top spots. Ireland is in eighth place. And those statistics are based on comparisons before the UK broke the triple lock and the link to earnings last year. It is absolutely critical that the triple lock is restored. Independent Age emphasises that:

“With more than 2 million pensioners already living in poverty and the cost-of-living crisis hitting hard, we know people are being forced to make impossible choices on how to cut back to be able to afford heating, electricity and food”.

One additional income support measure is pension credit, but we know that take-up levels are still too low—the Secretary of State acknowledged that. Previous research commissioned by Independent Age estimated that full take-up of pension credit could lift 440,000 older people out of poverty. So when will that be tackled by the Government? The unclaimed £4 billion in pension credit could make the lives of hundreds of thousands of pensioners more bearable. It is also money that would then be recirculated within local economies as it is spent on vital household needs.

[David Linden]

Does my hon. Friend think that banks have a role to play? Given that the vast majority of pensioners receive their pension payments from the Department for Work and Pensions into their bank accounts, banks have the ability to identify where payments are coming from and the amount. Does he agree that there is an opportunity for banks to play a role in promoting pension credit?

[Alan Brown]

That is a very good point. I agree with my hon. Friend that that is an ideal way of managing that. I urge the Secretary of State to take heed of that intervention and work with banks and other organisations to try to increase pension credit take-up.

In terms of pension policies, of course I have to refer to the WASPI—Women Against State Pension Inequality Campaign—scandal and the fact that the Government are still not moving forward on fast and fair compensation, given that the Parliamentary and Health Service Ombudsman found there was maladministration. The PHSO made it clear that the Government do not have to wait for the end of its investigation to take action to remedy this injustice.

There is also the frozen pensions scandal, whereby whether your pension gets uprated or not is arbitrary, depending on which country you reside in. It is also scandalous that the UK Government have yet again rejected offers from the Canadian Government to enter into reciprocal arrangements. I urge the Secretary of State to reconsider that and engage in meaningful talks with the Canadian Government.

All those aspects show that the state pension in the UK is not the safety net we are told it is. It shows clearly that the Better Together mantra of staying in the UK to protect pensions in Scotland was a cruelly false premise. Indeed, with private pensions nearly collapsing after the Tory mini-Budget, that claim looks even more ridiculous. It also shows that when Gordon Brown, at a Better Together event, said:

“Our UK welfare state offers better protection for pensioners, disabled and the unemployed”,

he was, frankly, lying.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. It would be better if the hon. Gentleman found other words—perhaps a little gentler—rather than those he has just used.

[Alan Brown]

I take your point, Madam Deputy Speaker, but of course I was not referring to any hon. Member in this place.

[Madam Deputy Speaker]

Order. I fully appreciate that and the hon. Gentleman is technically correct, but I take the view that anyone who has been a right hon. Member, and held a most senior position in this place, should be treated with respect even after they have left. A different form of words would therefore be appreciated.

[Alan Brown]

Thank you, Madam Deputy Speaker. I respectfully say that his comments were misleading because, as I have outlined, the UK pension is not as good as it is made out to be and is one of the poorest in north-west Europe.

Moving on, it is little wonder that the Scottish Government have been publishing papers comparing the UK to comparator countries for an independent Scotland. Scotland has a lower pensioner poverty rate than the rest of the UK at present, but we want to do much better than that. We want to match or better the comparator countries, reduce inequality during working life, and allow a more dignified and enjoyable retirement for all. We no longer want to be left here hoping, yet again, that Westminster will make the right decisions on such measures as the triple lock. We want to do things for the betterment of the citizens of Scotland.

[Kevin Foster (Torbay) (Con)]

This is my first Opposition day speech in a while and I welcome the opportunity to speak on an issue that is so important for Torbay. It will perhaps be unlike some of my previous speeches in that, first, I am not following the hon. Member for Strangford (Jim Shannon), and secondly—I see the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Mid Sussex (Mims Davies), on the Front Bench—this will not be quite as thorough an analysis of the issue as some have occasionally enjoyed from me on a Friday. It is a particular pleasure to see the Secretary of State on the Front Bench; I know that he will be a doughty champion for our beautiful county and its people, and that he will ensure that the most vulnerable are protected.

Turning to the motion, it is fascinating to see the huge enthusiasm from Labour Members for our 2019 manifesto. I cannot remember the same enthusiasm three years ago, when they were not that enthusiastic to have a general election in the first place. This measure was a key part of the pledges that we made. We have heard some knockabout today, but we have to remind ourselves that the pension triple lock was introduced in 2010 and not before. For the 13 years prior to that, pensions had been linked to the rise in inflation and in prices, rather than the position adopted under the triple lock.

We know why we introduced the triple lock. As has been referred to, the inspiration came from the 75p increase some years earlier. It aimed to give a clear sense of the direction in which state pensions would go. It would either be in line with prices, as was done previously, or earnings—by reinstating a link to those—or it would be a minimum of 2.5%, providing clarity for those looking ahead to their retirement. As that was done in a simple way, it meant that pensions would be protected against price shocks and that they would keep pace with earnings as they went up. Since 2010, the level of the basic state pension has gone up by £2,300.

The measure also has to be seen in the light of other changes, such as the end of opting out and the introduction of the new state pension, which is clearer about what people will get when they retire. As has been touched on, it allows more years in which, for example, someone is bringing up children to count towards the state pension. The changes were about making what people have clearer and simpler so that they can plan in their retirement.

That was very welcome in Torbay. Those commitments were probably a reason why a seat that was held by another party for 18 years is solidly Conservative again. Most pensioners and those who vote in Torbay are realistic people. They recognise the impact of the pandemic last year and the odd outcomes it produced for earnings—for example, in the previous year when earnings went down, and last year when earnings jumped up. The double lock was therefore introduced for one year last year, using the CPI rate for the increase in the state pension.

Some people say, “If inflation was good enough to be the rate of increase last year, it should be good enough this year, not least given the impacts we are seeing on prices.” I accept that there is a need for balance and the Secretary of State’s point that he cannot pre-empt what will be said next week. We cannot have a running commentary in the run-up to a fiscal event, with a different Department every day ruling something in or out, or putting something in or out. I take his point, but those of us who are not on the Front Bench can make our comments more freely about the outcome that we would like next week.

On the position in Torbay, the Secretary of State was right to highlight other benefits and support that is being offered to pensioners. The second cost of living payments are starting today, not just for pensioners; I think 16,300 families in Torbay will start to get that payment, taking the total up to £650. Members have rightly touched on the energy price guarantee, which helps to cap the price being paid for energy. On top of that, there were such things as the council tax rebate earlier this year. Councils have discretionary funding to apply that to those in band E and above when they have particular pressures. Therefore, when we discuss the triple lock and the state pension, we have to consider some of the other support. Of course, I have not mentioned the £400 per household energy bill discount from which pensioners will innately benefit.

It is interesting to hear people making comparisons with other countries and talking about wanting to emulate some of them. I would be interested to hear whether SNP Members would like to emulate the situation in many European countries whereby, although the position on the pension might be different, pensioners have to pay certain medical charges and there are social care levies applied to pension income and taxes that would not be paid here. Certainly, many services that are provided free at the point of use and point of need under the NHS are charged for in other jurisdictions. If we make comparisons and say we want to emulate other countries, we need to be conscious of what we are arguing we should emulate. We can do more to help people to get pension credit.

[Alan Brown]

I used a whole suite of comparators to make my point, and the key thing is that the UK has the 12th highest poverty rate out of 35 countries. That is shameful, is it not?

[Kevin Foster]

The hon. Gentleman made the point in his speech that he was looking to emulate the packages given to pensioners in other countries. If he wants to emulate them, he should look at what those packages include, such as charges for medical services and tax rates that we do not charge here. The council tax rebate of £150 did a lot for my constituents. As for whether that applies in Scotland, that is a devolved matter.

On the triple lock, the rise in prices has hit many people. Many people over the state retirement age are unlikely to have the type of options that others may have to meet some of the rising costs. It is therefore vital that we look to honour our pledge to them. I accept that that pledge cannot be made immediately today, but I look forward to hearing further clarity on that next week.

About £4.7 million of pension credit went unclaimed in Torbay last year. That could have gone to some of the poorest households in the bay. When the Minister sums up, I would be interested to hear about the Government’s thoughts on that issue, particularly when so much data is available. The era of people filling in paper forms or going to a post office with a pension book is long gone. The vast majority of that is done through electronic means. This is about what could be done to fill the gap so that more people can get the support to which they are entitled, not least because once someone is assessed as being eligible for pension credit, it opens the door to a range of other benefits and support.

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[The Parliamentary Under-Secretary of State for Work and Pensions (Laura Trott)]

I thank all hon. Members for their valuable contributions to the debate.

Since 2010, pensioner incomes have gone up, absolute pensioner poverty has gone down and we have corrected the historic inequalities towards women in the state pension. That is a record that we on the Government Benches can be proud of. The decision on how to uprate state pension for this year is taken by the Secretary of State at the same time as the uprating decision on all benefits for those of working age and over state pension age.

[Alan Brown]

The Minister is repeating what the Secretary of State said earlier about pensioner poverty going down. The reality is that it is down only on old statistics. Pensioner poverty is increasing. Fuel poverty is increasing. So will the Government update the House on what the true figures on poverty are in the UK?

[Laura Trott]

We absolutely recognise that this is a very difficult time for pensioners. That is why we put a substantial package of support in place, which I will come on to later.

The Secretary of State set out, when opening the debate, that the results of his uprating review will be announced alongside the autumn statement on 17 November. To nobody’s surprise, I will not be pre-empting the outcome of that review today. However, reflecting the debate this afternoon, it is important to highlight how pensioners have been supported since 2010.

The yearly amount of the basic state pension has risen by over £2,300 in cash terms, rightly highlighted during the debate by my hon. Friends the Members for South Cambridgeshire (Anthony Browne), for Torbay (Kevin Foster) and for Heywood and Middleton (Chris Clarkson). Average weekly pensioner incomes have increased by 12% in real terms and as a result absolute pensioner poverty has fallen by 400,000 since 2010.

We are forecast to spend over £134 billion on benefits for pensioners in 2022-23. That amounts to 5.4% of GDP.

--- Later in debate ---

[Laura Trott]

I will make a bit of progress; I have been quite generous on interventions.

We know that the coming months will be tough for everyone, but especially for pensioners. I thank all hon. Members who have raised cases on behalf of their constituents. The Government fully understand the difficulties that pensioners will face this winter and will stand by those in the most need. That is why the Government have made substantial support available for pensioners struggling with the cost of living this winter. As my hon. Friends the Members for Wantage (David Johnston) and for Gloucester (Richard Graham) pointed out, we have not heard much from the Labour Front-Bench team today about what their plan would be for this winter.

We have a plan that includes the £650 cost of living payment for those on pension credit to help with the rising cost of living. There is a £400 reduction on energy bills for all domestic electricity customers over the coming months and the £150 council tax rebate received by 85% of all UK households. Those on state pension will also receive an increased £500 winter fuel payment if they are under 80 or a £600 winter fuel payment if they are 80 or over. In total, that will mean that all pensioners receiving the state pension could receive up to £850 of additional support in the coming months and that pensioners on the lowest income who are claiming means-tested benefits will receive up to £1,500.

[Alan Brown]

Will the Minister give way?

[Laura Trott]

I will make a bit of progress and then come back to the hon. Gentleman.

Pension credit was raised by a number of Members, including the hon. Member for Kilmarnock and Loudoun (Alan Brown), my hon. Friend the Member for Torbay, the right hon. Member for East Ham (Sir Stephen Timms), the hon. Member for Birmingham, Erdington (Mrs Hamilton), my hon. Friend the Member for Rother Valley and the hon. Members for Arfon (Hywel Williams) and for Wirral West (Margaret Greenwood). My predecessor—the Minister for Employment, my hon. Friend the Member for Hexham (Guy Opperman)—put in a huge amount of work to increase awareness of pension credit. We have seen a significant increase in the number of claims, peaking at a 275% increase year on year during pension credit awareness week in June. We know, however, that only seven out of 10 people who are eligible to claim it do so. That means that £3,300 of additional support is not being claimed by around 850,000 households. Clearly, it would make a significant difference if even some of that money—totalling £1.7 billion—made its way into the pockets of the poorest pensioners.

The benefit of pension credit is that, as many Members have mentioned, it passports to an array of additional support, even when a person’s entitlement is very small. A pension credit recipient will receive a TV licence if they are over the age of 75 and get access to housing benefit and council tax support. The second half of the Government’s cost of living support—worth £324—will also be paid to all pension credit recipients. However, time is running out for those who have not yet claimed pension credit. The crucial date is 18 December. If someone claims pension credit by then and is eligible for the maximum three-month backdating, they will receive £324 of support to which they are entitled. It is therefore essential that all of us here urge our constituents to visit the pension credit page of gov.uk or to call the number listed to check eligibility of claim.

On automatic enrolment, the right hon. Member for East Ham and my hon. Friend the Member for Torbay raised an interesting idea. From the information that I have, the Government do not have the data to be able to do it, but I will definitely explore further the point about local government and what more we can do with data.

[Alan Brown]

The Minister spoke about the extra support for pensioners—I think she said it was £850. Does she realise that that does not even cover the increase in the average energy bill, which has gone up from £1,100 to £2,500? More importantly, what does she think energy bills will be when the Government’s support ends come April?

[Laura Trott]

That does not include the energy price guarantee.

As the Secretary of State set out to the House and as I said at the start of my speech, we cannot pre-empt the fiscal statement, but it is the Conservatives who have increased the state pension, it was the Conservatives who introduced automatic enrolment and it is the Conservatives who have reduced absolute pensioner poverty. This Government have always protected and will always protect the most vulnerable: that has been our track record since 2010, and that is what we will continue to do.

Question put.

Oral Answers to Questions

Alan Brown Excerpts

Monday 31st October 2022 Commons Chamber

[Mr Speaker]

I call the Scottish National party spokesperson.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

The Minister knows that in July 2021 the Parliamentary and Health Service Ombudsman found the DWP guilty of maladministration regarding state pension age increases. The PHSO also suggested that the Department could consider being proactive in remedying the injustice suffered by 3.8 million women, rather than waiting for its final conclusions. Given the ongoing cost of living crisis, does the Minister agree that now is the time for the Government to step up to the plate and agree fair and swift compensation for the women suffering that injustice?

[Laura Trott]

I am sorry to disappoint the hon. Gentleman but I must repeat that I cannot comment where there is an ongoing investigation.

Oral Answers to Questions

Alan Brown Excerpts

Monday 11th July 2022 Commons Chamber

[Mr Speaker]

We now come to SNP spokesperson, Alan Brown.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

The reality is that even before the Pensions Minister scrapped the triple lock, taking £500 out of the pockets of pensioners, the UK had pensioner poverty rates higher than small independent European countries. We now know that the Chancellor is reviewing the corporation tax rates, which were intended to raise £50 billion over the lifetime of this Parliament. How can he guarantee that the triple lock will not be sacrificed once more, trapping pensioners in poverty just to pay for Tory tax giveaways?

[Guy Opperman]

As the hon. Gentleman will be aware, the United Kingdom Government have provided £37 billion-worth of support—[Interruption.] Oh, we most definitely have. That takes the form of four different payments over the next six months and is a real support to the most vulnerable in our community. Without a shadow of a doubt, we will continue to support those most vulnerable.

Oral Answers to Questions

Alan Brown Excerpts

Monday 6th June 2022 Commons Chamber

[Mr Speaker]

I call the SNP spokesperson, Alan Brown.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

The removal of the triple lock is costing pensioners £500 this year alone, and come October energy bills will have risen by £1,700 compared with April 2021. The £300 winter fuel payment does not come close to plugging that gap, let alone addressing the other inflationary pressures that pensioners are dealing with. Then we have the WASPI women, who have been struggling for years. Following the findings of the parliamentary and health service ombudsman, surely now—this time of crisis—is the time for the Government to agree fair and fast compensation for the WASPI women.

[Guy Opperman]

There was a lot in that question. In respect of the full package of support, most pensioner households will receive £850 via the additional winter fuel payment, the council tax rebate and the energy bills support scheme. Pensioners who receive means-tested benefits and are most in need of support will receive £1,500, including payments in July and September.

The hon. Gentleman will be aware that the matter of the WASPI women is a subject of and decision for the Court of Appeal, where the matter was decided in favour of successive Governments—this and the previous Labour Government—and that the ombudsman process is an ongoing one, on which we do not comment.

Working Tax Credit and Universal Credit: Two-Child Limit

Alan Brown Excerpts

Thursday 21st April 2022 Westminster Hall

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

It is a pleasure to serve under your chairmanship, Mr McCabe, and I commend my hon. Friend the Member for Glasgow Central (Alison Thewliss) for having secured this debate. More importantly, I thank her for the tireless campaigning she has done on this two-child policy, which victimises and stigmatises families and children. It is worth putting on the record that my hon. Friend was the first Member to identify the pernicious rape clause, on Budget day in July 2015, and her speech shows just how much she has immersed herself in highlighting the unfairness of this policy and the ludicrous exemptions that go with it. As she has said, it is a poverty trap. The fact that children born beyond the midnight deadline are not deemed worthy of support, and that we now have two tiers of families—two families might be the same size, but by virtue of when one child was born, one family gets more support than the other—is absurd.

I also pay tribute to all other hon. Members who have contributed or made interventions. As the hon. Member for Cynon Valley (Beth Winter) said, this is about the need to support all children and ensure basic fairness; why do this UK Tory Government find it all too easy to breach human rights? The hon. Member for Arfon (Hywel Williams) made a powerful speech, talking about his own circumstances and how political attitudes have changed. The example he gave about the moral condemnation in the past of people stuck in mental institutions, and how we are returning to moral judgments of people having children, should make the Minister sit up, because it certainly made me sit up.

Then, of course, we had a fantastic contribution from the hon. Member for Strangford (Jim Shannon). It did start with his “better together” comparison, but apart from that, I agreed with every word he said. When the hon. Member for Strangford uses such strong language and condemns a policy so much—I genuinely think that was the best speech I have heard from the hon. Gentleman; that says a lot, but it was a really powerful speech—if the Minister does not take note, something is far wrong. The hon. Gentleman gave the example of the Chinese limit, and how it would have impacted families and people here had such a policy been implemented, but he also spoke about the dark perspective of this policy. It is morally wrong, and not just that: it has been an abject failure in its aims. That really summed it up, so I pay tribute to the hon. Gentleman for his speech.

It is disappointing that there are no Tory Back Benchers here to back up the policy. Maybe that says how bad the policy is, or maybe they are just choosing to back the corrupt Prime Minister in the “other place.” The point is that agreeing to provide welfare support for only two children is a horrible policy, backed up by dog-whistle politics. The concept clearly was that people should be able to afford children, just like those who rely solely on work for their income and therefore do not need additional welfare support. That is language designed to imply that anyone on benefits is a scrounger, and that people have children just to screw the welfare system. It is truly awful, and it actually puts a price on children.

As we have heard, in affected families, who suffers the most? The children. Hungry kids cannot learn in school. They will be disadvantaged and less likely to have a positive outcome, so whatever circle the Tories think they are breaking, they might be condemning more people to underachieve and have a higher chance of unemployment, and to be less likely to participate in higher and further education and more likely to end up in lower-paid, semi-skilled work. As the hon. Member for Strangford said, if some children suffer, others do. It is not just the ones directly affected.

Worst of all, the entire concept is based on politics and prejudice and not evidence. What we now have, clear as day, is evidence of how the policy works for those affected by the two-child policy. The Library briefing confirmed that of the 317,500 families affected in April 2021, 56% had somebody in the household working. The majority, also 56%, were in dual-parent households, so the majority of families affected are dual-parent households with somebody in employment. That is proof that the policy is based on falsehoods and proof that the bigger issue is that too many people are in low-paid, insecure jobs, and that is the issue that should be tackled.

What about the people who have lost jobs or faced reduced income due to covid? They now find that the so-called safety net of the welfare state is a lot smaller than they would have anticipated. The Tory Brexit has also impacted jobs, too. The Tories deny that, but I have a meeting tomorrow with somebody who runs a haulage company, and he is close to going under, which will take other jobs with him, because of the ludicrous cabotage rules that the Tory Government signed up to.

Covid unfortunately gave us fire and rehire—another policy that the Tories have done nothing to eliminate, but a policy that is vastly reducing the incomes of thousands of workers or seeing them sacked. Workers that the Tories might otherwise have seen as model families who were able to afford their children without welfare support will now need that support, and it might not be there for them. Families and people who have lost jobs are now having to readjust their outgoings accordingly, and now find that they have been categorised as scroungers by the Tory Government.

Another key issue of the two-child policy is that, as others have said, it disproportionately affects orthodox Jewish and Muslim families who may have religious or ethical views on family size. I agree with the intervention by the hon. Member for Strangford that the religious aspect in terms of discrimination has possible human rights implications as well.

We have heard that some women have considered abortion because they worry about not being able to afford a child. There are debates about how many women have actually undertaken an abortion because of that, but the reality is that women are having to face that choice, and they should not have to. Again, that is something the Minister needs to look at and review.

[Carol Monaghan]

There are debates about that, but the statistics are clear. The National Audit Office numbers show that since 2016, since the policy came into being, there has been a 24% increase in the number of abortions in England and Wales.

[Alan Brown]

I thank my hon. Friend for that. I will not disagree. The hon. Member for Strangford also referred to evidential work done by the LSE. This is evidence that the Government should look at. We are discussing a Government who talk about family values. How can they talk about family values when they are forcing women to consider abortion?

That takes us to other evidence of the impact of this policy. Since 2013-14, child poverty among larger families has risen dramatically; almost half of all children living in families that have more than two children live in poverty. Also, recent research for the report “Benefit changes and larger families” by largerfamilies.study shows that most of the recent rise in child poverty overall has been driven by rising poverty among those larger families.

Sara Ogilvie of the Child Poverty Action Group has said:

“The two child limit is a brutal policy that punishes children simply for having brothers and sisters. It forces families to survive on less than they need, and with soaring living costs the hardship and hunger these families face will only intensify.”

Also, according to CPAG:

“Removing the policy would lift 250,000 children out of poverty”,

doing so immediately. So, surely the Minister must review the evidence, act accordingly and take that action to

“lift…children out of poverty”.

Then, if we look at the rape exemption clause, it is apparent that it was thought up on the hoof at the time. It was probably some loose nod by the Government towards thinking that they were adding a moral, even noble, exemption to support children born after their mother’s traumatic experience of being raped. However, it is no wonder that Ministers at the time could not even explain how the policy would be implemented, because it was so absurd. No thought was given to the traumatic psychological effects of a woman having to relive such an experience and being asked to fill in forms to justify financial support for her child. Also, the bizarre logic of the exemption only applies for subsequent children, beyond the two-child limit, born of rape. So, as if the clause in itself is not abhorrent enough, it is somehow seen as being morally okay to decide which child born from rape is worthy of support, which is truly disgusting.

The other big thing aligned with this policy and other policies at the time was the whole “balancing the books” mantra. This debate made me revisit the 2015 summer Budget Red Book. I looked back at that and honestly it is truly horrifying to see how evil that Budget was. The two-child clause was estimated to save £3.4 billion by 2021; freezing benefits, £11.3 billion; benefit cap reduction, £1.7 billion, clawed back from the poor; and increasing the tax credits taper to 48% while reducing income thresholds for tax credits and work allowance was estimated to save—astonishingly—nearly £20 billion by 2021. So, there was a complete and utter hatchet job on the welfare state, and there were also incoherent policies, given the attack on some of the job-related welfare support—so much for “making work pay”. That was an awful Budget and I have to point out that it was shameful that Labour abstained on it.

However, what about the “balancing the books” mantra? Clearly, as I have just illustrated, it is “balancing the books” on the poorest, the most infirm and the lowest-paid in society. But what it also allowed in subsequent Budgets was tax giveaways to those who the Tories deemed worthy of benefiting from them.

Previously, I had the Library conduct analysis on some of the key Budget decisions that were implemented from 2016 to 2018. The Library extrapolated those figures, which were based on figures that were presented in the Budget books, up to 2025, and it estimated that, up to 2025, the Treasury was giving away £80 billion. Increasing the higher rate threshold was estimated to be a giveaway worth £5 billion; changes to individual savings accounts, or ISAs, £7 billion; inheritance tax changes, a £6 billion giveaway; and the personal allowance increase and further raising of the higher threshold to £50,000 of income was estimated to be an £11 billion giveaway by the Tories. There was also a £50 billion giveaway in corporation tax, although at least they realised the error of their ways on that one. All of that shows that plenty of money was found for giveaways, rather than for continuing to balance the books properly. And those figures show that the Tories could easily afford to reverse this two-child policy, if the political will to do so was there.

Returning to the here and now, another issue with universal tax overall is of course the removal of the uplift, or—more appropriately—a cut of £1,040 a year. As the hon. Member for Cynon Valley said, if the pandemic merited an uplift to allow people a more dignified life, then surely—with inflation running at 7% to 8%, the energy cap up 75% compared to April 2021 and petrol at record prices—there is a clear need for a permanent increase in universal credit.

I cannot finish without comparing this with what is happening in Scotland with the Scottish Government, just as my hon. Friend the Member for Glasgow Central did. The Scottish Government introduced the game-changing child payment, doubling it to £20 a week, and it will increase to £25 a week when the benefit is extended to under-16s at the end of this year. As that has been done on a fixed budget in the Scottish Parliament, it cannot have the positive impact it otherwise would have had because we are still living with the impact of Tory austerity. That is proof that whatever the Scottish Government do is undertaken with one hand behind their back. It is interesting that there was a strong theme earlier in the debate about the Welsh Government needing more powers too, so Tory policies are clearly having an impact on the Union, which should make the Minister take note.

Will the Minister pledge to review the effects of the impact of the Scottish Government’s child payment policy and the support it has received from charitable organisations? The Scottish Government have shown that they are treating all children equally. That should not be too much to ask of any Government, and surely it is time for the UK Government to think again.

--- Later in debate ---

[David Rutley]

The point that I am trying to make is that the benefits system is important—it provides support—but it is not the only thing that we are trying to do for people and for claimants.

As the hon. Member for Westminster North (Ms Buck) has highlighted, many of those people are working while on benefits. We want them to get into work and, when they are in employment, to progress. As has been debated long and hard in this Chamber, we have recently introduced work coaches who focus on in-work progression; we have 37 champions across the country who are helping to push that agenda forward. That is vital so that people can progress. People do not depend just on the benefits system; we want them to see more in their wage packet, and we have provided work incentives to do that, be it through the UC taper rate changes that have been put in place or through the increased work allowances. Those are vital incentives.

[Alan Brown]

rose—

[Ms Buck]

rose—

[David Rutley]

I will give way to the SNP spokesperson, but then I will make some progress, because others have made many points and I have several to make myself.

[Alan Brown]

I thank the Minister for giving way. On the point about helping people’s wage packets and making work pay, does he not agree that the minimum wage should reflect the national living wage so that people get a proper, fair wage?

[David Rutley]

As I think the hon. Gentleman knows, the national minimum wage has gone up to £9.50—[Interruption.] There is a bit of head-shaking going on; it is very disturbing. The national minimum wage is now £9.50 and is projected by many to reach £10. The £9.50 figure is a 6.6% increase, which is very welcome. I am sure that the hon. Gentleman will join me in welcoming that significant increase.

A few things have been said about the non-consensual conception exemption. We recognise that it is a difficult and sensitive issue, and we have put in place procedures that are mindful of the sensitivities involved. Third-party professionals include healthcare professionals, registered social workers and relevant specialist charities, which can also signpost claimants to further support, so claimants will get the support that they need and be assisted through the light-touch processes in challenging circumstances. The hon. Member for Glasgow Central made a point about rape conviction rates. I reassure her—I think she knows this, but let me put it on the record—that the criteria for the non-consensual conception exemption is much wider than just conviction. The third-party professionals can assist in those circumstances as well.

The hon. Member for Strangford (Jim Shannon), who I think everybody in this Chamber loves, highlighted many situations—nearly all of them, actually. I agree with him that there are a few exceptions, but clearly, we will have differences of opinion on this point. He and I share a love of ensuring that people can express their faith freely—that is a fundamental part of our democracy—and the policy does not seek to get in the way of that vital democratic right and freedom that we all cherish. The Government have published an impact assessment noting that ethnic minority households may be more likely to be impacted by the policy because they are, on average, more likely to be in receipt of child tax credit or universal credit, or to have larger families. That could also be the case for households of a particular religion, but the DWP has insufficient data to confirm that. I highlight that the Supreme Court found that the two-child policy was lawful and not in breach of the European convention on human rights.

Points have been made about abortion and fertility rates. The Nuffield Foundation’s research consortium on larger families has this month published a report outlining that fertility rates for those claiming, or eligible to claim, benefits have changed very little since the introduction of the policy. That would seem to refute the evidence from the British Pregnancy Advisory Service that was discussed earlier. The policy was never designed to affect fertility rates; it is fundamentally about seeking to provide fairness with those who are unable to access benefits, when it comes to the choices that they have to make.

The hon. Member for Glasgow Central also asked the question—

Cost of Living Increases: Pensioners

Alan Brown Excerpts

Monday 21st March 2022 Commons Chamber

[Jonathan Ashworth]

The hon. Lady anticipates the meat of my speech and has put her point on the record with typical aplomb and eloquence.

Martin Lewis of Money Saving Expert has warned that he simply has no tools left to advise people on how to manage their finances; he said that people are literally going to have to “starve or freeze.” Let us look at the facts: 2 million pensioners in poverty and the number rising; 200,000 more pensioners falling into poverty in the last year; one in five people of pension age now living in poverty; and 1.4 million older people in England in fuel poverty, with tens of thousands more likely to be pushed into fuel poverty. As we also know that pensioners spend a significant proportion of their income on energy and food and the basic necessities of life, this is the moment when the Government should be helping the Maureens and Alberts in all our constituencies with extra help with the cost of living. But instead of helping those pensioners in every constituency, Ministers broke their promise on the triple lock and are forcing through deep real-terms cuts in the value of the basic state pension. When I meet and speak to pensioners across the country—older people who are struggling—there is deep despair, and indeed bewilderment, that the Government have abandoned them, having promised them so much.

In the general election campaign, the Prime Minister said:

“We will keep the triple lock, the winter fuel payment, the older person’s bus pass”

to help retirees with the cost of living. Yet just at the moment when pensioners are shivering in the cold, skipping hot meals and anxious and worried about paying the bills, rather than helping retirees with the cost of living, Ministers abandoned the triple lock, a broken promise that the former Conservative Pensions Minister, Baroness Altmann, warned would

“plunge more elderly people into poverty”.

She said:

“With rising energy costs, I fear many of the poorest will be even less able to afford to heat their homes adequately over the winter…To take away their much needed and promised protection, knowing inflation pressures are rising, seems unjustifiable”.

The former Conservative Pensions Minister was absolutely right.

I read recently—in the money section of The Daily Telegraph, no less—that

“pensioners will be worse off after the Chancellor capped the rise in the state pension…this will equate to pensioners taking a real terms cut of £7.45 a week, or £388 a year.”

That is a cut of around £30 a month. These are significant sums of money. Given that the state pension is the biggest source of income for most pensioners, and given that retired women in particular rely on the state pension and other benefits, such as pension credit, for over 60% of their retirement income, it will be retired women again who are disproportionately hit by this deep cut to the basic state pension.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

The right hon. Gentleman is absolutely right that it is a disgrace that the Government have broken their triple lock promise. The Red Book shows a transfer of £31 billion over this Parliament from the pockets of pensioners to the Treasury—a disgrace. Given the point he is making, should the Labour motion not have demanded the immediate reinstatement of the triple lock? That is the one thing that I am concerned is missing from the motion we are debating.

[Jonathan Ashworth]

We are making clear our commitment to the triple lock in the remarks that I am making at the Dispatch Box.

--- Later in debate ---

[Alan Brown]

Of what the Secretary of State calls the £9 billion package, how much is provided by the Treasury and how much is a loan to consumers that has to be paid back?

[Dr Coffey]

It will depend to some extent on the individual circumstances. I fully accept that the £200 rebate on energy bills is a phasing of support and I recognise that it is not an entire grant, unlike the £150 council tax discount.

--- Later in debate ---

[Dr Coffey]

The hon. Lady asks a valid question. As I have said to the House before, tackling the cost of living and poverty more broadly is shared across Government. Although that may come under our umbrella—recognising our general role in support through the welfare system—my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy leads particularly on items to do with energy and fuel poverty more broadly. I will ask him to contact her.

That leads me on to pension credit, which has been highlighted as a passport to a range of other benefits, including free TV licences, help with council tax and NHS dental treatment. Together, those are making a real difference, reflecting the Government’s commitment to supporting pensioners and continuing the work of successive Governments since 2010—when the Conservatives took office—to tackle and alleviate pensioner poverty.

The facts speak for themselves. The latest figures show that 200,000 fewer pensioners are in absolute poverty than in 2010, with levels of material deprivation having fallen from 10% to 6%, a record low. It is because of our commitment over that time and policies such as the triple lock that, from next month, the full yearly basic state pension will be more than £2,300 higher in cash terms than it was in 2010. In fact, no Government have paid more to pensioners than we will this year: £105 billion alone through the state pension. When we include all the other pensioner benefits, that rises to £129 billion a year.

Our aim over the two years of the pandemic has been to give fairness to pensioners and taxpayers, recognising what has happened with covid. For 2021-22, we protected the value of the state pension by legislating to secure and increase the state pension by 2.5%, despite a decline in earnings and inflation rising by just 0.5%. Had we not acted, the state pension, by law, would have remained frozen. Again, through the Social Security (Up-rating of Benefits) Act 2021, which Parliament passed last November, we legislated to temporarily suspend the earnings part of the triple lock in 2022-23 for one year. As I outlined at the time, that was in response to exceptional circumstances caused by the distorting effects of the pandemic on the earnings statistics.

Pensions will still rise by 3.1% next month. That reflects the inflation index that has been used consistently for many years, so over the past two years, pensions will have risen by a total of 5.6%. Next year, we will return to implementing the triple lock in the usual way for the remainder of the Parliament. I reinforce that full commitment, and whatever the right hon. Member for Leicester South may suggest—he may be trying to score points on politics, which, as the shadow Secretary of State he is absolutely entitled to do—I want to make sure that he avoids scaremongering.

[Alan Brown]

I welcome the Secretary of State’s commitment to reinstating the triple lock. Given that the Chancellor said this time that 8% was unaffordable and that that was £30 billion that we could not afford, is she saying that if inflation is at 8% when the Government do the measurement, they suddenly can afford to pay the £30 billion to pensioners?

[Dr Coffey]

I am not aware of any Minister trying to say to people that we did this because it was unaffordable. As a result of the pandemic, there was a statistical anomaly relating to earnings. We also understand the balance relating to intergenerational fairness, as has been outlined. At the time, however, we very much highlighted the statistical anomaly.

As a result of our actions, I believe that the state pension continues to be a strong foundation from which people can build additional savings for their retirement. We are seeing a thriving private and workplace pensions market, fuelled by the success of automatic enrolment, which transformed pension savings for more than 10.5 million workers. That is creating even firmer foundations for a robust pension system to ensure that not just today’s pensioners, but those of future generations are protected and supported. I know that, as a country, we will continue to build on the progress that we have made over the last 12 years under Conservative Governments, so that in the next 12 years, and in decades to come, pensioners will be able to enjoy a secure and dignified retirement.

We also know that a minority of pensioners choose to stay working beyond the standard retirement age. They do not pay the standard employees’ national insurance on their earnings, even though employers do if they earn above the threshold. As for the NHS and social care levy being introduced through national insurance, it is appropriate for anyone working at all, including pensioners, to contribute, bearing in mind that they will do so only if their earnings are at or above the regular threshold. I believe that will be about £190 a week, which is close to nearly £10,000 in earnings a year.

--- Later in debate ---

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

It is kind of a pleasure to follow the Secretary of State, but I have to say, not for the first time, that I am a wee bit puzzled, because she seemed to be responding to a different debate from the one we are having. The shadow Secretary of State, the right hon. Member for Leicester South (Jonathan Ashworth), set out some clear and harrowing examples of people who are really struggling, yet the Secretary of State gave a pre-prepared speech about a secure and dignified retirement tomorrow, ignoring the here and now.

Talking about how this Government have paid the most in pensions ever does not cut it. Those statistics are fine, but they do not help pensioners who are really struggling. That point needs to be taken on board. I asked about the £9 billion package that the Secretary of State cited, but she was not sure how much of it was Treasury-funded and how much was a loan to bill payers. I can tell her that out of that £9 billion, roughly £5.6 billion is just a loan to bill payers that will have to be paid back—bill payers who include struggling pensioners.

On pension credit, the Secretary of State picked up on what the pensions Minister—the Under-Secretary of State, the hon. Member for Hexham (Guy Opperman)—said earlier, bragging about how the Government are writing to local papers. When the shadow Secretary of State called them out on it, however, the Minister shouted, “Oh, we’ve done that for years!” If it has been done for years and there is still £4 billion of unclaimed pension credit, it is clearly not working. It is quite clear that another strategy is needed to make sure that there is a far greater uptake of pension credit, which can then be a passport to other benefits.

I welcome this debate. The motion combines the key issues for pensioners in the ongoing cost of living crisis: rising energy costs, real-terms cuts to pensions and, for older people in work, the health and social care levy. Where I disagree slightly with the shadow Secretary of State, which is why I intervened on him, is that I think that the motion could have been stronger in explicitly demanding the reinstatement of the pensions triple lock.

Earlier today, the pensions Minister stated that pensioner poverty has fallen, but as I tried to point out, the Government’s own statistics on households below average income show that UK pension poverty has risen to a 15-year high under Tory rule. Some 2.1 million UK pensioners—18%—are now living in poverty after housing costs, an increase of 200,000 people on 2018-19. Sadly, that was the figure before the latest energy cap rise was announced, so it will massively increase unless there is proper Government intervention. It is worrying that the Minister is trying to argue something different; either he is ignorant of the facts or he does not care. The Government really need to pay attention and start intervening.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

My hon. Friend is making a terrific point about the poverty that is affecting pensioners just now. Does he agree that the effect is disproportionately felt by pensioners living in off-gas grid households? Last year, heating fuel was 42p a litre; it is now £1.25 a litre and rising. There is going to be a really dramatic effect on pensioners in those areas.

[Alan Brown]

I completely agree. I thank my hon. Friend for highlighting that point; he has been at the forefront of the campaign to highlight the effects of increased energy costs on those who are off the gas grid. That threefold increase in fuel costs is completely unsustainable and really does lead people to the choice between heating and eating.

Let us look at conventional households covered by the energy cap. Next month, the cost of energy for the average household will have increased by 75% compared with April 2021, a rise of more than £800 a year. Pensioners spend more time in their homes and are more likely to feel the effects of cold or damp, so increased energy costs disproportionally hit the elderly. Not being able to afford to heat their homes puts their health more at risk. There are already something like 10,000 premature deaths a year due to fuel poverty, and that was before the huge energy cost increases. It is truly shameful that in an energy-rich country, or group of nations, people are dying prematurely because they cannot afford to heat their homes.

National Energy Action has estimated that the cap increase will have caused a 33% increase in fuel poverty rates. If this rise continues without Government interventions, come October we will be looking at some 8 million fuel-poor households in the UK, with perhaps between 2.5 million and 3 million of those households containing pensioners. When we look beyond the phrase “heating or eating”, we see that the grim reality for people faced with that choice is starving or freezing or suffering in damp houses, and that brings us back to the possibility of more people dying prematurely. It is truly shameful.

The interventions that the Government have announced to date clearly do not go far enough. Even worse, the removal of the triple lock is taking more than £500 a year from the pockets of pensioners, as the Government’s own Red Book demonstrates. Earlier today and this evening, Tory Ministers were arguing that wage increases were a false measurement owing to the partial recovery from covid. They have used that to justify breaking the triple lock. Just four months on, however, we have evidence that a much larger pension increase than 3.1% is required. The facts are clear: the spring statement in two days’ time will provide the one opportunity to reinstate the triple lock, or at least, as a bare minimum, to introduce a mechanism for increasing pensions by 6.1% in line with the current rate of inflation and what the Scottish Government are doing with benefits.

It was good to hear the Secretary of State guarantee that if inflation is at 7% or 8% later in the year, at the point when calculations are being made for the purpose of future uprating, pensions will rise by that amount. I hope that the Government stick to that, and it is not just bluster at the Dispatch Box. We all know who pulls the strings; it tends to be the Chancellor, so I hope that the Secretary of State is lobbying the Chancellor, because we know that inflation is not going to go down any time soon.

While I am talking about inadequate measures, let me point out that the £150 rebate on council tax will not catch all pensioner households in terms of bandings; and, as the shadow Secretary of State said, many pensioners living alone or in receipt of pension credit already receive a full or partial council tax discount, and are therefore unlikely to benefit from the new council tax rebate measure unless the Government do something about it. Making others who have avoided debt all their lives take out a £200 loan to pay back later is also morally wrong. That loan should be converted to a grant for all, and certainly, as the bare minimum, for pensioners and those on benefits.

The Secretary of State spoke about the warm home discount, but, as she knows, the Government put no money into that scheme, although too many Ministers do not even understand that; it is actually paid for by other bill payers. While I welcome the extension of the discount to 3 million households, only 10% more pensioners will receive it. The Government should extend it further, but, in doing so, should provide some direct funding rather than imposing the funding on other bill payers. They should also consider extending the energy company obligation scheme so that more homes become energy-efficient, but that too should involve direct funding rather than other bill payers having to foot the bill.

Apart from the £150 funded rebate, the only direct Government intervention to date on energy has been the allocation of £1.7 billion for the development of Sizewell C. Not content with Hinkley Point C being the most expensive power station in the world, the Tories are determined to build another more expensive one. In their own impact assessment for the Nuclear Energy (Financing) Bill, the upper estimate of the capital and financing costs of the Sizewell C development is £63 billion. How will that help people who need energy costs to come down? And why did Labour vote to commit bill payers to that amount for a new nuclear power station? The money could be spent so much more wisely. There really needs to be a rethink on this nuclear policy.

There are other cost increases to be considered. For instance, the cost of food is rocketing.

[Jerome Mayhew (Broadland) (Con)]

I note the hon. Gentleman’s opposition to the gaining of low-carbon energy from nuclear. He has also told us that this is an energy-rich country. What does he think the Government should do with the Cambo oilfield? Should we open it up to reduce energy prices for pensioners?

[Alan Brown]

The hon. Gentleman is not comparing like with like. Cambo means more fossil fuel extraction, and there needs to be a proper assessment to establish whether this could be done in a way that is compatible with net zero. That is a test that the Government are refusing to apply. Apart from that, they should be investing much more in floating offshore wind, in tidal stream, in which Scotland leads the world, and in pumped- storage hydro, which is a dispatchable low-carbon technology. That scheme is ready to go, but the Government have not agreed a pricing mechanism. Then there is carbon capture and storage at Peterhead, in which respect Scottish customers have been let down again. So much more could be done in energy, and it would not cover even a portion of that £63 billion that has been allocated to nuclear. More energy efficiency reduces demand, and therefore reduces the need for new power generation. I hope I have answered the hon. Gentleman’s question.

[Jerome Mayhew]

Yes.

[Alan Brown]

Yes!

Returning to fossil fuel, obviously petrol and diesel prices have increased massively at the pump. They have gone up by between 35p and 40p a litre compared with a year ago—a 30% increase. That also means that while people struggle to run their cars, VAT returns to the Treasury have increased massively. The current rates compared with last year mean that the Treasury is getting something like £3 billion a year extra in VAT returns, but that should be recirculated to support hard-pressed people, especially pensioners. It seems that the Chancellor may respond to calls to cut fuel duty, but if he does, he will be demonstrating the folly of a 12-year duty freeze. When we had lower prices, that was the time when bolder action could have been taken to raise fuel duty, so that when fuel prices increased in the way they have, fuel duty could have been decreased. That would have created a much smoother curve, instead of peaks and troughs, and the Treasury would have had a far more stable income as well.

[The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)]

I am just trying to understand the hon. Gentleman’s policy. Is it genuinely his policy to raise fuel duty? That is the impression he has just given.

[Alan Brown]

I repeat that the time to be bold and increase fuel duty would have been when fuel prices were at a record low. That would not have had the same impact on people’s pockets. The current rise is unsustainable—[Interruption.] The Minister did not listen to what I said. This here-and-now policy from the Government is unsuitable; it should involve bolder long-term planning. Had they raised fuel duty earlier when prices were lower, they could have reinvested the revenue in public transport and in creating money for a rainy day, like right now.

[Drew Hendry]

Is it not a fact that pensioners and other people could have been helped greatly in this fuel crisis, had the Government listened and introduced a fuel duty regulator, which would have regulated the price and ensured that fuel was affordable for people just now?

[Alan Brown]

Absolutely. My hon. Friend has made my point much better than I was making it myself, and I appreciate that. A fuel duty regulator is exactly what would have given better stability for the Treasury and for people’s pockets.

Looking at other windfalls the Treasury receives, we see a VAT windfall from the £800 increase in average household bills. That is well over another £1 billion coming into the Treasury coffers. The Treasury is also benefiting from increased oil and gas revenues. The last Budget predicted an extra £6 billion in oil and gas revenues in this Parliament compared with the March 2021 Budget, but given the sustained period of increased prices, that £6 billion will prove to be an underestimate. That is more money that should have been reinvested.

I know that Labour has targeted a windfall tax on the oil and gas companies, but that sounds a wee bit like raiding the one traditional cash cow. Why do we not, as the SNP motion suggested last week, look at this in the round? Why do we not target all sectors or companies that have benefited disproportionately from the pandemic, and in particular the new-start companies and the Tory crony companies that were awarded PPE contracts and that have realised record profits since? That is a real obscenity that should be targeted. Anyone who has read Private Eye and seen the eye-watering sums that those companies have made should be truly horrified.

I want to highlight some additional measures in Scotland where the SNP Government are providing mitigation for pensioners, but even the powers the Scottish Government have are nowhere near enough to make the transformational changes that we want. Older people in Scotland get their bus passes at the age of 60, instead of having to wait until the state pension age. They also have universal free prescriptions and are more likely to have had targeted energy efficiency measures for their homes. All charitable organisations in this sector, as well as the energy companies themselves, want the UK Government to follow the lead of the Scottish Government in making energy efficiency a national infrastructure programme. The low-income winter heating assistance will give around 400,000 low-income households a guaranteed £50 payment every winter instead of the complicated UK cold weather payment of just £25.

[Guy Opperman]

I am just trying to understand the hon. Gentleman’s speech. Is it still SNP policy that, post-independence, the rest of the UK would have to pay for Scottish pensions? He seems to be unclear on that, and I just want to be utterly clear.

--- Later in debate ---

[Alan Brown]

I am not sure how I can have been unclear when I have not mentioned it. The Minister is listening to a different speech—that is simply not what I have in front of me. This is very interesting. First, on day one of independence, Scotland can afford pensions. Right now, we collect about £11.5 billion in national insurance contributions. Pension payments are about £8.5 billion, so that is a £3 billion surplus right away to cover other payments from national insurance contributions. On day one, we can afford it. If we are supposed to be a Union of equals, it is very strange that we are being told not, “Stay with us because we value you,” but, “Stay with us because we are threatening you.” A DWP official publication from 2014 says that there is an historical precedent for dealing with this, with historical credits being built up in pension payments. So in 2014 the DWP actually stated that there is a solution, but obviously the Minister has conveniently forgotten that.

Perhaps this is a good time to finish. The Minister’s intervention shows that after 315 years of the Union, Scotland needs full independence as a means of counteracting this present-time dystopia, which Labour has also recognised and sought to address today.

--- Later in debate ---

[Guy Opperman]

My hon. Friend is right to raise the issue. A bit like with the jab, we are all responsible for making the case to our constituents that there is huge benefit in what is in reality a passport to several hundred pounds a month—potentially £3,000-plus a year. The stats are extraordinarily good. When we took office in 2010, the take-up was 70%; it is now up to 77%. Obviously we want it to go higher. The take-up figure for guarantee credit is up to 73%, and internal management information suggests that in the 12 months to December 2021, the number of new claims for pension credit was about 30% higher than the figure for the 12 months to December 2019.

My hon. Friend specifically asked what the Government could do. There are a number of things that we have been doing for some time. We set up the pension credit taskforce to work with key stakeholders such as charities—including Age UK, which many Members rightly mentioned and whose representatives we have met several times—the Local Government Association, Virgin Money, and several of the banks. The energy company Centrica is involved, and ITV and the BBC have a key role to play in raising awareness, ensuring that we have greater knowledge of pension credit and that our constituents are aware that the opportunity is out there.

As the Secretary of State said, 11 million letters about the state pension uprating were sent out—that has never been done before—along with copies of the pension credit information factsheet containing information for pensioners so that they could apply. That, too, seems to be making a difference. There was a pension credit awareness day last June, when we worked with the BBC throughout the country. We also worked with the other stakeholders, including Age UK, with which we formed a specific partnership. We have been making the case to local papers: we wrote to all of them on three occasions last year, we did it again this year, and we will continue to do it. Individual Members of Parliament can do a fantastic amount in making the case to their local communities, working with their citizens advice bureaux and Christians Against Poverty groups. Mention has been made today of the older persons fairs, which have been very successful in individual constituencies and have made a big difference to pension credit take-up.

[Alan Brown]

Will the hon. Gentleman give way?

[Guy Opperman]

I will give way to the hon. Gentleman, because he allowed me to intervene on his speech.

[Alan Brown]

How much extra money do the Government set aside each year on the assumption that there will be a greater uptake of pension credit, and what happens if that sum is not used? Does the Minister agree that any money that is not used for pension credit should be recirculated to support elderly people?

[Guy Opperman]

I can answer that question easily. There is no limit whatsoever. This is a means-tested benefit which was set up by Gordon Brown. If there were a 100% take-up, the Government would pay. If the take-up is 70%, the Government pay.

I was going to address some of the comments made by the hon. Gentleman in his interesting speech. I genuinely felt that it was the policy of his party to raise fuel duty, which is certainly an interesting approach to cost of living difficulties. He made no mention of the powers conferred by sections 24, 26 and 28 of the Scotland Act 2016 and the capability of his Government to intervene if they should choose to do so—which, to be fair, they have done. The hon. Gentleman shrugs his shoulders and heaves a sigh, but he probably does that when he tries to analyse and understand the policy of that humble merchant banker-crofter the right hon. Member for Ross, Skye and Lochaber (Ian Blackford), whose approach to the state pension is something that we all struggle to comprehend.

I did test the hon. Gentleman by asking him what genuinely was the Scottish National party policy on the state pension in the unlikely event that the Scottish people were unwise enough to choose independence. Is it the old policy that was agreed previously, or is it the new policy of his leader in Westminster that the rest of the UK should pay for this? I genuinely do not understand, and I think one of the reasons why the popularity of independence is falling in Scotland is the fact that the leadership that the hon. Gentleman so strongly supports are not making the case in any way whatsoever.

The arguments of the hon. Members for Cynon Valley, for Liverpool, West Derby (Ian Byrne) and for Leicester East (Claudia Webbe) centred on the issue of the state pension age. Let me say, with respect, that that is a matter that has been determined by successive Governments. As I pointed out earlier, this Government continued, as did the coalition Government, the policy of the Labour Government under Tony Blair and Gordon Brown. I realise that no one is a Blairite any more, but those 13 years saw exactly the same policy. The arguments put forward on that issue were comprehensively rejected by the Court of Appeal.

The situation in respect of energy prices has been addressed in detail by the Secretary of State, but it is right to make the point that the key intervention was announced by the Chancellor on 3 February with a £9.1 billion energy bill rebate, and there is in excess of £12 billion of support over this financial year and the next to ease cost of living pressures. We have set out in sufficient detail the £200 rebate for households, the £150 non-repayable council tax rebate for all households in bands A to D, and the fact that local authorities will in addition have access to £144 million of discretionary funding to support households in need, regardless of their council tax band.

Oral Answers to Questions

Alan Brown Excerpts

Monday 21st March 2022 Commons Chamber

[Mr Speaker]

I call the SNP spokesperson, Alan Brown.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Despite what the Minister says, the Government’s last-published figures show that there are 200,000 more pensioners in poverty compared with 2018-19, and it is going to get worse. Next month, pensioners will face an increase in their heating bills of over £800 a year compared with this time last year, and at the same time, due to breaking their triple lock promise, the Government will have taken £500 a year out of the pockets of pensioners. It is shameful. Does he agree that Wednesday represents the one opportunity the Chancellor has to reverse the breaking of the triple lock and to do something to help pensioners?

[Guy Opperman]

I wish the hon. Gentleman a swift recovery from the trip or fall that caused his injury.

It is definitely the case that pensioner poverty is declining. [Interruption.] The hon. Gentleman’s statistic is manifestly wrong on that: pensioner poverty is down in relation to 2009-10. Of course, there are conversations with the Chancellor, but it is absolutely the case that state pension has increased year on year on year, and we have never paid a higher state pension than we presently do.