Welfare Reform Bill

Alan Reid Excerpts

Tuesday 21st February 2012 Commons Chamber

[Chris Grayling]

Let me give my right hon. Friend an assurance that we will work closely with him on the process of reviewing the impacts and over the coming months we will continue our dialogue with him, which has been very helpful and constructive, to make sure that we make him aware of the approach that we are taking and that we seek his input in that approach. I give him that assurance.

[Mr Alan Reid (Argyll and Bute) (LD)]

I am pleased to hear my right hon. Friend say that there will be discretionary housing payments to take into account particular circumstances. I draw his attention to the particular circumstances of islands and very remote communities where, because of the nature of the housing stock, there may be no alternative for people to move to. When funds are allocated to local authorities, will the position of islands and remote communities be taken into account?

[Chris Grayling]

We will certainly look very carefully at that. I give the hon. Gentleman that assurance, and again we will talk to him in detail about those issues.

This latest amendment looks to protect certain groups from the size criteria measure where they have one spare bedroom and no suitable offer of alternative accommodation has been made. However, I remind hon. Members that we have already committed to providing extra help—£30 million—to some of those groups, particularly foster carers and disabled people living in adapted accommodation. That money can help around 40,000 claimants. We are not ignoring the fact that some people will find it hard and have sought to put safeguards in place. Our aspiration is to protect the most vulnerable in society while also dealing with the broader challenge of under-occupation. There are a number of responses that individual households can choose to make to this measure.

Welfare Reform Bill

Alan Reid Excerpts

Wednesday 1st February 2012 Commons Chamber

[Maria Miller]

I thank the hon. Lady for that intervention. Again, I understand the thoughtful comments that have been made. We are not making anybody move. The average reduction will be about £14 a week, but for many it will be about £12. Given the amount of notice that we are giving individuals and families, we want people to be able to consider the available options.

[Mr Alan Reid (Argyll and Bute) (LD)]

In many islands or remote villages, there is simply no alternative accommodation; the turnover of social housing is so slow that it could take many years for a smaller house to become available. What support will be available for people on islands and in remote villages so that they can stay in their own communities?

[Maria Miller]

My hon. Friend and I have spoken about these matters and I understand the very individual problems that his constituency faces. It is because of those very individual situations that we have put in place significant support so that local authorities can consider different ways to support families living in rural areas some distance from other communities and make sure that they are not dislocated from their support networks.

Pensions Bill [Lords]

Alan Reid Excerpts

Tuesday 18th October 2011 Commons Chamber

[Gregg McClymont]

We are clear that we cannot have constant changes in pensions legislation. One of the problems that we face is precisely that— constant chopping and changing of the timetable, so we will vote for our amendments tonight in the hope that in their wisdom the Government will accept them. In that case we will all be happy, or at least those of us on the Opposition Benches.

[Mr Alan Reid (Argyll and Bute) (LD)]

Having been born in 1954, I need to declare an interest in the debate. The hon. Gentleman has argued for the spending of an extra £10 billion, but he cannot come to the Dispatch Box and argue for that without saying where the money is coming from. Is he going to put taxes up, cut some other spending programme or borrow more money? Will he please tell us?

[Gregg McClymont]

To make the position clear to the hon. Gentleman, we are proposing savings of £20 billion. The Government are proposing savings of £30 billion. These savings will come into effect from 2016. No sensible Opposition or indeed Government would set out a spending plan for the next Parliament five years before it would come into effect. If the hon. Gentleman considers his position to be credible, the difficulties that the Liberal Democrats are facing become a little easier to understand.

Pensions Bill [Lords]

Alan Reid Excerpts

Monday 20th June 2011 Commons Chamber

[Mr Byrne]

I do not know how much attention the hon. Gentleman has been paying to this debate, but we championed this issue before it came to the House of Lords and as it went through the other place. We will champion it through the House of Commons as well, until this bad Bill has been thrown out.

[Mr Alan Reid (Argyll and Bute) (LD)]

I agree that, for a small group of women, the Bill is unfair. However, I was pleased that the Secretary of State said that he would be happy to look at transitional arrangements. The right hon. Gentleman has been very good at criticising the Government, but will he please tell the House what the Labour party’s plans are?

[Mr Byrne]

I am grateful to the hon. Gentleman for decoding the Secretary of State’s remarks and putting on record that there will be transitional arrangements. I heard about that only by looking this morning at certain blogs written by Liberal Democrat Members, who also expressed great confidence that there would be a compromise on this. We look forward to hearing a lot more about what that compromise will be. It is a shame that it is not in the Bill in time for this Second Reading debate. We would all understand the logic of this if we heard a little more from the Secretary of State about why the Government are introducing this measure.

The truth is that the Secretary of State used as a justification for his argument the idea that women in this position will somehow be living that much longer to enjoy their new pension. Well, they will draw cold comfort from that. The point is that it is simply not realistic for women in their late 50s, who are truly fearful about being given no time to adjust to their loss of income. Surely that is the critical point for us this afternoon. Women in their later 50s will have earned less over their lifetime; they have lower state pension and private savings than men; many have been unable to join a workplace pension and have interrupted their careers to look after their family; many will have stood down from jobs on the understanding that they would get that state pension early.

These are not simply my assertions; they are the Government’s own facts. The Pensions Minister was forced to tell my hon. Friend the Member for Leeds West (Rachel Reeves) that 40% of women aged 56 have no private pension wealth:

“The proportion of women aged 56-years-old who have no private pension wealth”,

he told the House on 10 March,

“is estimated to be 40%.”—[Official Report, 10 March 2011; Vol. 524, c. 1266W.]

What on earth are those women supposed to do with the measures in the Bill? On 4 February he admitted that the median pension saving of a 56-year-old woman is six times lower than that of a man, yet he tells us not to worry because he has a plan. He has a word of reassurance—[Interruption.] The Secretary of State should listen to the plan of the Pensions Minister. I think he will be rather pleased with it, as we were offered words of reassurance and comfort. On 14 February, the Pensions Minister said:

“One reassurance I can offer is that those women…will be eligible to apply for jobseeker’s allowance”.—[Official Report, 14 February 2011; Vol. 523, c. 681-82.]

They might, I think, call that the final insult.

There is not much that unites the House these days, but concern about this Bill is fast becoming one of those causes. I understand that even the Department for Work and Pensions Whip, the hon. Member for Norwich North (Miss Smith), who is not in her place on the Treasury Bench has said:

“I’m pressing Ministers on this because a number of women have raised it with me, and it so happens that members of my own family are in this group. It’s certainly an issue I sympathise with greatly.”

Her concern is widespread. I believe that the hon. Member for Cardiff Central (Jenny Willott) has told no less than the Deputy Prime Minister:

“I agree with the Age UK protestors: these changes should be reconsidered.”

Nearly half the Liberal Democrat MPs have signed an early-day motion that says that the Government should

“rethink its retirement timetable in the Bill so that these women have a fairer chance to plan and save for their retirement.”

Tonight, there is a chance to put a vote behind those words.

Who will vote to support the Pensions Minister? Once, he never tired of telling the Tories about the error of their ways. He was the man who once said:

“Pension policy needs to be stable and predictable years ahead, not made up on the back of a cigarette packet.”

That was still there on his website, www.stevewebb.org, on 6 October 2009. Alongside it, I found another rather apposite quote:

“It is typical of Tory policy to hit the poorest the hardest.”

That is still there on his website. This is the Pensions Minister who said:

“As ever when it comes to pensions, it is as if women are an afterthought. That is clearly not the way in which to change state pension ages.”—[Official Report, 9 March 2010; Vol. 507, c. 33WH.]

That was not on his website. That is what he said in the House of Commons in March last year. Tonight, we have the chance to help the Pensions Minister stand by his words and his record. I think that we should help him with his honour.

This is a Second Reading debate. We are supposed to be debating the principles of the Bill and we are then asked to vote on those principles. We are being asked to do this when it is perfectly clear that the Government no longer believe in the Bill. We are privy to reports in the newspapers that the Government might be working on another U-turn. I am not sure whether it is Conservative or Liberal Democrat Members who are behind it, although I know who will claim the credit. The Secretary of State told the Financial Times today that there are “issues and concerns” that need sorting out, while senior Ministers, says the Daily Mail,

“are telling the Chancellor he must think again.”

The Secretary of State, it says, is “sympathetic”. I have to ask, then: why are we voting on a Bill that the Government do not believe in? The Chief Secretary does not believe in it; the Pensions Minister does not believe in it; half of the Liberal Democrat Members do not believe in it; the Tory Whips do not believe in it. What on earth are we doing going into the Division Lobbies to vote to punish half a million women through a Bill that no one believes in? Will the hon. Gentleman answer that question now?

Welfare Reform Bill

Alan Reid Excerpts

Wednesday 15th June 2011 Commons Chamber

[Fiona O'Donnell]

I thank the hon. Gentleman for his support.

Let me talk about a few of the other people who lived at Upper Springland. David had no voluntary movement of his arms and legs, and a little movement of his head. He had no verbal communication. He was completely dependent but he had an incredibly active mind. He was able to communicate through an auxiliary voice and communication system. When he asked to have some swear words programmed into his computer, it caused some discomfort for the rather old-fashioned manager of the residential home as David wandered around the corridors telling everyone to “Eff off!”

David had come from Edinburgh to Upper Springland because of its excellent reputation. He would love to return home on visits to see his family. I personally accompanied David on his last visit to his father before his father died and also to the funeral. I have genuine concerns about that. The Secretary of State shakes his head, but unless we get a definition of what the overlap means, how can we have any confidence? The organisations out there representing people with disabilities do not have confidence in the proposal, so the Secretary of State has no reason to shake his head.

There was another young woman called Joyce who was not only active—she played a sport called boccia and travelled around the world—but had a job for a few hours a week so that she did not lose her benefits, and volunteered in various organisations. To support her to do that, she needed the flexibility to be able to book her own taxi to go to work and to participate in the other activities. There was Maggie, who refused to travel in the transport available at the centre because there was a great big sign up the side of the vehicle which said “Capability Scotland” and she did not see why she should be branded, but going to church every Sunday was very important to Maggie.

These are people I cared about and people I cared for. I fear greatly for what will happen to them and what their future lives will be like if the House does not support the amendments.

I have been critical of the Minister and other Members on the Government Benches, saying that they do not understand what disability and residential care mean. I heard the Prime Minister in one session of Prime Minister’s questions talk about people in residential homes. Then, it was an anomaly between them and people in hospital. Now the Prime Minister seems to acknowledge that residential care is a social model, not a medical model. He has said that the DLA mobility component is not being removed, but the evidence in the Red Book is that it will disappear, so I am not reassured even by a six-month stay of execution.

We must ensure that people continue to have the same choices as people living outside residential care homes. I do not like to talk about people living in the community, because people who live in residential care homes are also part of our community. What evidence is there of an overlap there? Charitable organisations provide access to vehicles, so is the Minister going to assess whether there is an overlap there as well?

People in residential care make the same choices as we do. How many of us do not need a car? We could use public transport, but for those people to buy an outdoor electric wheelchair, which they would not be entitled to under the NHS assessment, makes all the difference to their lives. Why should they not have that choice? It is not just about Motability cars. It is also about people who have entered into contracts and loans to pay for those electric wheelchairs. All these months on from the Westminster Hall debate, we still do not have an answer from the Minister about what will happen to those people.

A further topic that the Minister has not addressed—the hon. Member for Cardiff Central had great hopes that she would talk about it today—is the situation in respect of the devolved Governments of the United Kingdom. If the Minister has any expectation that there will be regulation of residential care homes or a duty placed on them to provide a service to people with disabilities, if she thinks she can compel the NHS to start providing more mobility adaptations to people with disabilities, and if she believes in the universality of the benefit, how can she ensure that people in Scotland will always retain the same benefits as people in the rest of the United Kingdom? She did not clarify that, so I would like to give her the opportunity now to intervene and answer that question. [Interruption.] No?

[Mr Reid]

Will the hon. Lady give way?

[Fiona O'Donnell]

All right; someone else will speak.

[Mr Alan Reid]

(Argyll and Bute) (LD): Surely the hon. Lady, as a Scottish Member, knows that it is up to the Scottish Parliament to decide on devolved matters. That is what devolution is all about. It is up to the Scottish Parliament to decide whether it provides that benefit or not.

[Fiona O'Donnell]

I know that. I am questioning whether the Minister understands that that is the situation we find ourselves in and the impact it will have. Will the review include Scotland and the other devolved areas of the United Kingdom?

[Fiona O'Donnell]

I absolutely take heed of that and apologise if I have taken too much of the House’s time, but I feel passionately about this issue. I will bring my remarks to a close by saying that I hope hon. Members will walk through the Lobby with us to vote in favour of the amendments that my colleagues and hon. Friends on the Front Bench have tabled.

[Mr Reid]

I had wanted to speak tonight on my concerns about the proposal not to make any personal independence payment for the first six months, but I will speak about that later. Further to what the hon. Member for East Lothian (Fiona O'Donnell) has just said, my understanding of the Government’s position is that there is an overlap, and it is perfectly correct that where an overlap has been identified we ought to have a review. It is also important to stress that we are not abolishing the mobility component for people in care homes by voting against the amendment tonight; we will be voting to give the Government the power to make regulations.

[Margaret Curran]

Will the hon. Gentleman give way?

[Mr Reid]

I am sorry, but there is no time.

What concerns me about the Bill as it stands is that those regulations will be made by the negative procedure, which does not give Parliament the absolute right to scrutinise and vote on them. I have put my name to amendment 74, tabled by my hon. Friend the Member for Cardiff Central (Jenny Willott), which proposes that the regulations should be made by the affirmative procedure.

[Maria Miller]

Given the strength of feeling on this matter, from my hon. Friend and others, I am happy to give a firm undertaking that the regulations will be made under the affirmative procedure to ensure that we get the debate that I know the House wants on the matter.

[Mr Reid]

I am extremely grateful to the Minister for that—I wish that every time I spoke for a minute I could bring about a change in Government policy.

In the few minutes remaining, I want to talk about the proposal not to pay any PIP for the first six months. What concerns me is that that will impact severely on people who have a sudden onset of a very disabling condition, such as a stroke, cancer or the loss of a limb. Thankfully, that happens only to a relatively small number of people of working age, which means that any savings the Government would make would be very small. However, for someone in that unfortunate position the first six months is often when the costs are greatest. They and their families have to adjust to the sudden reality of coping with a disability. During those months, people are often faced with extra costs such as special aids, adaptations to their homes or frequent trips to a specialist hospital that might be far from where they live. Adaptations to the home are up-front costs that need to be paid within the first six months. Depending on their condition, those people might face many other costs.

Another relevant issue is that until PIP is awarded, other benefits such as carer’s allowance are not available. Therefore, I urge the Government to look carefully at ways of taking those circumstances into account and see whether they can find a way to make financial help available for people in that position so that they can cope with the extra costs they face in the six months after the onset of the condition.

[Sheila Gilmore]

I want to speak briefly to the question of three and six months, because the Government have said that people will be able to find other forms of assistance. What they mean by that is means-tested assistance, but many people will not qualify for it, because their partner might earn as little as £7,500 a year or have—

Welfare Reform Bill

Alan Reid Excerpts

Monday 13th June 2011 Commons Chamber

[Maria Miller]

I thank my right hon. Friend for that comment. I am not aware that the research will cover that at this time, but perhaps I could consider that in more detail. He has raised that point in the past.

[Mr Alan Reid (Argyll and Bute) (LD)]

Will the Under-Secretary give way?

[Maria Miller]

Would my hon. Friend mind if I made a tiny bit more progress on the amendment, and tried to deal with some of the others?

In that spirit, we are considering the most effective way of monitoring and evaluating the housing support measures. That will enable us to understand the effectiveness of the measures in the same way as we will understand the 2011 measures. However, reviewing the operation of the changes in the first year will be too soon—something that I have also considered in relation to other measures in the Bill. We need to ensure that the measures have time to mature and bed in, so that their effectiveness can be properly evaluated. I am not sure that I agree with my hon. Friends that conducting such a review after the first year would be the best way to assess the effectiveness of our policies. Therefore, I cannot commit to the timetable that they propose, even if we are attracted to the idea of conducting comprehensive research. However, I can reassure them that we are looking at ways of funding an external review—this time on the measures in the Bill—and that we will consider that in some detail in the coming months.

Amendment 32 was also tabled by the Opposition. I am sure that Members are aware of the pressures that we face in social housing; indeed, there are some facts that we have to consider before we can look at the amendment in any detail. We know that less than 5% of social tenants in England move each year in the social housing sector. That is not helpful, given the 250,000 overcrowded households waiting for a suitable property to meet their needs. There is also limited social housing stock, with waiting lists of 5 million people, 250,000 tenants in overcrowded housing and almost 1 million spare bedrooms being paid for through housing benefit. There is a mismatch in the market. I am quite astonished that the hon. Member for Westminster North spent no time talking about that or showing her support for the action that we are taking to put it right.

[Maria Miller]

It is absolutely not fair that we have 1 million spare bedrooms being paid for by housing benefit. It is not right—many taxpayers would never be able to afford a spare bedroom in their properties—nor is it fair for those living in overcrowded or poor housing conditions, waiting for long periods for the opportunity to live in a home that is decent or that actually reflects the size of their family. I would ask the hon. Lady to consider that.

Amendment 32 would provide an exemption from the social sector size criteria measure for disabled people living in adapted accommodation. The intention is to ensure that where people have significant or extensive adaptations, they do not have to move and have a new property adapted, which would result in additional costs. I assure the House that I fully understand those arguments. I agree that it might not make sense to move someone from their home if they have already had significant adaptations. Replicating such changes would impose unnecessary costs. We are not interested in shifting costs from one budget to another. However, as we previously set out, we cannot take the broad-brush approach that amendment 32 would allow for. The amendment talks about a property that is

“specially adapted or particularly suited to…the needs of that person.”

This means that the provision would be drawn very widely drawn indeed, covering any adaptations.

Some adaptations, such as a handrail in a bath, may be so minor that exempting the tenant on the basis of that adaptation alone would simply not be justifiable. The provision would also cover a property that had been adapted for someone’s past needs, and would require local authorities to exempt those whose accommodation was particularly suited to meet their needs—perhaps those in a ground-floor flat or a property with a limited number of stairs to climb. We do not have the data on how many such cases there are, but it seems likely that many would fall into such a broad category. Again, that would prove very expensive—something that the hon. Member for Westminster North seemed to ignore. It is not clear what evidence would be required or who would be responsible for the decision. The amendment refers to the provision of

“certificates, documents, information or evidence”,

which, as the hon. Member for Westminster North said, also suggests a degree of administrative intervention. She made a valid point in Committee, but I am surprised that she is pushing it even further. I think that many stakeholders would rightly be concerned about the potential cost of her proposals and about the additional burdens such bureaucracy could load on to landlords and others.

The National Housing Federation estimates that about 108,000 tenants in adapted accommodation are likely to be affected by the introduction of the size criteria to restrict housing benefit. The NHF has kindly shared its data with us and I understand that our officials have met the federation since Committee and are continuing to explore the data in some detail. However, as well as looking at the available data, we want to talk to housing providers, but that will take some more time.

Funding for adaptations can come from a number of sources, one of which is the disabled facilities grant. Some 44,000 awards were made in 2009-10 in England and the average award was some £7,000. However, many of these are paid to owner-occupiers, not to those living in social rented houses. Research published by the Office of the Deputy Prime Minister in 2005 showed that about 70% of all adaptations were for less than £1,000 and that only 19% were wholly funded from the disabled facilities grant. In England, the maximum grant is £30,000, but there are discretionary powers to enable local authorities to meet costs in excess of that. Adaptations of this magnitude would be substantial, potentially involving the construction of a single-storey or double-bedroom extension, together perhaps with the installation of a toilet or en-suite shower. Figures from the same source indicate an average cost of about £2,000 for the installation of a stairlift. We will consider the evidence further, but it is important for the House to look at the facts and realise that many of these adaptations are at a much lower level than the hon. Lady indicated in her comments.

As I said in Committee,

“it is not our intention to put something in place that would have a disproportionate impact on disabled people. If someone has had their property adapted because of their disability, it makes no sense to move them to a different property and spend more money on costly adaptations.”

I concluded that a “blanket exemption” was not the best approach and that we would need to consider

“how we can best target the help at people, while keeping in mind the practical difficulties of identifying…where accommodation has been adapted”.––[Official Report, Welfare Reform Public Bill Committee, 3 May 2011; c. 687.]

We acknowledge the concerns that have been highlighted, but this amendment goes much further than was suggested even by the sector itself. I hope that, in the light of my comments, hon. Members will look again at the amendments and agree to withdraw them.

[Mr Reid]

I shall have to be brief. Much of the Bill will be implemented through regulations. Much of the debate has been about London and big cities, but I want to draw the Government’s attention to another part of the country—the highlands and islands of Scotland, where communities live large distances apart. My right hon. Friend the Member for Bermondsey and Old Southwark (Simon Hughes) referred to community, and if people live on an island, the island is the community, yet it often has limited housing stock.

As a result of this Bill—either because of the 30th percentile provision or because they are under-occupying—some people might have to move house. When the regulations are being drawn up, I urge the Government to take the sparsely populated parts of the country into account. If people are going to have to move, they should be able to do so within their community. If they live in mainland villages, the next village might be 10 or 20 miles up the road; if they live on an island, the community is the island.

The regulations are to be subject to a negative resolution, but I urge the Government to use the affirmative resolution so that they can be properly scrutinised here. I urge the Government please to take into account the needs of the sparsely populated parts of the country as well as the cities.

Oral Answers to Questions

Alan Reid Excerpts

Monday 13th June 2011 Commons Chamber

[Mr Alan Reid (Argyll and Bute) (LD)]

The coalition agreement talks about equalising the state pension in 2020. Bringing forward the date to 2018 will not help to meet the Government’s target of getting the public finances in balance by 2015, but it will adversely impact a large number of women at very short notice. Will the Government think again and revert to the coalition agreement?

[Steve Webb]

My hon. Friend has raised this issue with me before in debate, and although he is correct that the savings do not fall in the comprehensive spending review period, I would draw his attention to one number. Under previous projections, the national debt at the end of this Parliament was £1.4 trillion. If we were to delay the change, we would have to add another £10 billion. Someone has to get a grip on the national debt.

Post Office Card Account

Alan Reid Excerpts

Tuesday 24th May 2011 Westminster Hall

[Mr Alan Reid (Argyll and Bute) (LD)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. I congratulate my hon. Friend the Member for Truro and Falmouth (Sarah Newton) on securing this debate on the important issue of the Post Office card account and on presenting a good case on behalf of our communities. After spending nine years in opposition to a Government who were clearly urban based, it is a pleasure to be part of a Government who understand rural communities.

The coalition agreement includes a commitment to post offices and to making them the front office of government. For that to happen, they have to be financially underpinned so that they can provide a large number of basic services, including the Post Office card account. The importance of POCA to post offices derives not only from the income that sub-postmasters and sub-postmistresses get from it, but from the fact that customers collect their money from the post office and then spend it in the shop. In rural villages in a constituency such as mine, there is often just the one shop and the post office is an important part of that shop. Without the post office, the shop would not be sustainable.

My hon. Friend talked about the need for joined-up government and for all Departments to support the post office. Given the structure of government in this country, there is clearly a temptation for Ministers to engage in silo thinking and to be concerned only about their own Department. Although the Government inherited a terrible financial mess from their predecessors and the pressure is on Ministers to make savings in their own Departments, it is important that our Ministers do not pat themselves on the back for making savings in their own Department at the expense of other Government Departments. The Post Office is a case in point. We need all Government Departments to support the Post Office.

When I came back to Parliament after the election, I was unpleasantly surprised to find that the previous Government had issued tenders to replace green giros, which brought in a lot of money to post offices. People in rural areas were particularly dependent on such a service because it meant that they had a place in their own community to cash their green giros. When the new Government came in to office, they had to deal with the fact that the tender had been drawn up by the previous Administration, which greatly restricted their room for manoeuvre. I was further disappointed when the contract was awarded to PayPoint. Although there are a lot of PayPoint outlets in my constituency, they are all in the towns, and large rural parts of my constituency have no PayPoint outlet. There is no PayPoint outlet in the rural parts of north Argyll. There are about half a dozen in shops in Oban, but nothing outside.

[Sarah Newton]

I can echo my hon. Friend on that point. We have the same problem with access to PayPoint in parts of Cornwall. However, does he not agree that we should take some reassurance from the fact that the Government have said that people who currently receive the green giros will be given advice on their options, including signing up for a Post Office card account? I will work with my rural post offices to put up posters in branches so that as people cash in their green giros for the last time, they are encouraged to apply for a Post Office card account.

[Mr Reid]

My hon. Friend makes an important point that customers who use the green giros must be given the option of using POCA and must be encouraged to do so. I hope that this Government’s attitude towards POCA will be very different from that of the previous Government. Those of us who were MPs in the 2001 Parliament were inundated with complaints from constituents who were badgered and bullied by the Department for Work and Pensions call centre to move away from POCA to the banks. As I say, I hope that this Government will have a completely different attitude to POCA and that its use will be marketed positively rather than actively discouraged, as was the case under the previous Government.

There is a lack of PayPoint outlets in the rural parts of north Argyll, and there are several islands in my constituency that do not have a PayPoint outlet. Every time I mention PayPoint in a debate, I am conscious of the fact that a few days later a letter comes in from PayPoint saying what a wonderful service it provides. I say now to the person from PayPoint who will read the Hansard report of this debate that PayPoint still does not have outlets in rural north Argyll or on several of the islands in my constituency.

As we are discussing green giros, it is important to remember that many people who use them are people who were unable to use POCA for disability reasons. When my hon. Friend the Minister responds to the debate, I hope that he can tell us what facilities will be made available to people with disabilities who were previously deemed unable to use POCA to make it easier for them to access POCA. For example, if they live on a small island without a PayPoint outlet, what are they to do?

One of the lessons to be learned from the green giro contract is the importance of Government consultation before contracts go out to tender. When some of my hon. Friends and I attempted to lobby Ministers to give the green giro contract to the Post Office network, we were told the standard line that all Ministers in any Government use—that once a contract is out to tender and a legal process is under way, Ministers cannot engage in discussions about it. It is therefore important that we consult before contracts are put out to tender rather than, as was the case with the green giro contract, only finding out after the contracts have been put out to tender.

Of course, my hon. Friend the Minister has a responsibility to run his Department as efficiently as possible and to save as much money as possible. However, any savings that are made should not be at the cost of making the problems of financial exclusion worse. I understand that one of his remits is to be the Minister with responsibility for financial inclusion. If the only place in a rural community where people can access cash is a village post office and that post office closes, we will see real financial exclusion. Although pensioners may have bus passes that allow them free bus travel, in a rural community in the highlands there are not that many buses. Even on the days on which the buses run, it is often the case that there is only one bus from a village to a town at 9 am and there is only one bus back at 5 pm. What is a pensioner on a low income to do if they go into a town on the 9 am bus to collect their pension from the post office and they have to wait until 5 pm for the bus back?

[Cathy Jamieson]

Does the hon. Gentleman accept that for many people, particularly elderly people, the fact that they are able to conduct their business at a post office gives them some particular comfort? There are circumstances in which they simply do not want people to know their business if they have to conduct transactions in a very public place such as another shop.

[Mr Reid]

Yes. The hon. Lady makes a very important point, because the post office has a certain privacy that, say, a PayPoint outlet—I might as well say “PayPoint”, because I will get a letter about it anyway—in a filling station rarely has. Also, the staff who work at the checkout in a supermarket or filling station do not have the training that the post office staff have. That is another very important point.

[Sarah Newton]

Does my hon. Friend accept that staff in local post offices, such as those in villages in my constituency, know the regulars who come in, particularly elderly or vulnerable people? They can help those people if they have forgotten their PIN numbers; I am sure that that goes against the regulations, but it is a vital thing that they can do. They also notice if Mrs Smith or Mrs Jones does not come along. That sets off an alarm, and they either go round themselves or they ask other people to check on them. That is a vital social service for elderly people and people with disabilities in many of our villages.

[Mr Reid]

My hon. Friend makes an important point. I hope that the Minister and other Ministers will bear it in mind when they consider the importance of post offices.

The Government have a commitment to the Post Office network, as set out in the coalition agreement:

“We will give Post Office card account holders the chance to benefit from direct debit discounts and ensure that social tariffs offer access to the best prices available.”

I hope that my hon. Friend the Minister can tell us what progress the Government have made towards achieving that objective in the coalition agreement.

In conclusion, post offices are very important to our rural communities. As I have said, the post office often underpins the only shop in a village and there will be all sorts of problems for villagers, particularly elderly people on low incomes, if post offices close. I hope that my hon. Friend the Minister will agree that it is worth the Government spending money or perhaps giving up the opportunity to make some savings to retain the Post Office network in such areas. That means supporting Government services through the Post Office network and, crucially, it means that when the present POCA contract runs out in 2015 its successor is a post office-based product, and hopefully one that offers even more services than POCA offers at the moment. The successor to POCA must be a post office-based product. Otherwise elderly people on low incomes in our rural communities will really suffer.

--- Later in debate ---

[Nia Griffith]

It was indeed decisive action by the Labour Government in late 2008 that ensured that the contract went to the Post Office. My question here, however, would be, “What has happened to the green giro?”

I refer the hon. Gentleman back to the letter, with which I am sure the Minister is familiar, that George Thomson wrote to the Secretary of State for Work and Pensions in September. It contained a list of ways in which he thought further Government business could be put the way of the Post Office, including, among other ideas, assisted applications for all benefits, assisted benefit withdrawals, signing on, payment in cash and various housing benefit validations. He obviously wanted to discuss in detail with Ministers in the Department for Work and Pensions his ideas about the Post Office becoming a front office for DWP business—the DWP is probably the Department that would most use the Post Office. Instead, however, what do we find? We see the green giro awarded elsewhere, and that is a very significant blow for the Post Office.

[Mr Reid]

Yes, it is a blow to the Post Office, but the hon. Lady must recognise the part that her Government played. It was that Government who put out the contract and wrote the specification, and if it had specified a widespread rural network, the Post Office would have won the contract.

[Nia Griffith]

What we want to know now is what the Government will do about securing more Government business for the post office network. It is absolutely clear that unless there is more business, the worrying situation of hundreds of post offices being temporarily closed—for months, or two or three years—will continue. Post offices are closing because it is extremely difficult to identify people who want to take on a sub-post office. They want to see guaranteed income, but instead they see much less security in what they will get from Royal Mail in the future, both because of the drop in the volume of postal items and because there is no guarantee in the Bill currently going through Parliament of any definite business from Royal Mail for the post office network after privatisation.

--- Later in debate ---

[Rachel Reeves]

As the hon. Member for Truro and Falmouth has said, it would be good to see the Government working on a more joined-up basis. Savings for one area of government put costs on another area of government, and this is a prime example of that. It also goes against the commitments in both the Conservative and the Liberal Democrat manifestos. They would have put more services into post offices, but awarding the green giro account to PayPoint goes against those principles.

[Mr Reid]

The hon. Lady keeps forgetting that it was the previous Labour Government who wrote the tender specification, which could have specified the need for an extensive rural network. That would have meant that only the Post Office would have qualified, so why did her Government not specify the tender in that way?

[Rachel Reeves]

As I have said, the Labour Government did not get everything right in relation to post offices. The Labour party is using the period of our policy review process to look at a large number of our policies. I return to the point, however, that both the Liberal Democrat and Conservative manifestos made it clear that those parties were committed to giving more services to post offices, not to removing them. That is why the decision on the green giro was so disappointing, because it went against those commitments.

To return to another point that I made earlier in response to the Minister’s question, although POCA was put out to tender, the previous Labour Government recognised the public concern, ended that process and gave POCA to the Post Office. That decision was welcomed by our constituents and by post offices up and down the country.

State Pension Age (Women)

Alan Reid Excerpts

Wednesday 11th May 2011 Westminster Hall

[Mr Alan Reid (Argyll and Bute) (LD)]

I congratulate the hon. Member for Erith and Thamesmead (Teresa Pearce) on bringing this important matter before the House.

I start by declaring an interest. As a man born in 1954, I will be affected by the increase in state pension age. However, the extra time that men will have to work is slight, and the change is being brought in gradually. I can therefore accept that change. The real problem created by the Government’s proposals is for women born at about the same time as me. They will have to work considerably longer before they can collect their pension, and they are being given short notice to prepare for the extra work.

As others have said this morning, the Turner commission recommends 15 years preparation. The Government have had to make many difficult decisions because of the record-breaking deficit that they inherited from the previous Government. The Government’s aim is to eliminate the deficit by 2015, but this proposal will not help them to achieve that goal, because it does not come into effect until well after 2015. Therefore, they cannot put forward the argument that the proposal will help to eliminate the deficit.

The proposal will also not bring any long-term recurring benefits to the public finances. Equalisation and the increase in the pension age to 66 will take effect in the long term and this proposal will only bring a benefit over a few short years. The proposal is not needed for the Government’s overall strategy. It is also not in the coalition agreement, which said that equalisation should not take place before 2020.

[Mr Gregory Campbell (East Londonderry) (DUP)]

Does the hon. Gentleman remember the Minister speaking in the House last month? He said:

“If we want to encourage pension saving, the key is getting the state pension system right.”—[Official Report, 4 April 2011; Vol. 526, c. 795.]

There is an obvious anomaly here and this section of getting the system right has not been achieved. Today’s debate gives the Minister an excellent opportunity to rectify what is an obvious anomaly.

[Mr Reid]

I obviously agree that we must get the pension system right. The Minister has an excellent track record in campaigning for justice for pensioners. As the proposal is not in the coalition agreement and is not needed to eliminate the deficit by 2015, I hope that the Minister will go away and reflect on the matter before the Pensions Bill comes to the House.