(7 years, 9 months ago)
Commons ChamberI totally agree with my hon. Friend. I heard a Labour Member shouting, “Tell that to the destitute.” Well, we have a very good benefits system in this country, and I am sure that those people who are destitute are very familiar with it.
The Minister has made it very clear that the Government will not act further to help those affected by the ill-managed change to people’s pension age. Will he tell us whether he or the Secretary of State have had any discussions with the Chancellor ahead of the autumn statement about whether there might be additional help for those most affected?
As the hon. Gentleman knows, I can do no better than repeat that the transitional arrangements have taken place and that Government policy is very clear. I would not want him to think or believe that there will be any change on this.
Clearly there have been no discussions with the Chancellor. In the Westminster Hall debate on the issue, we heard about many people who have been left destitute and are living in poverty as they care for elderly relatives who may be unwell, but not ill enough to qualify for employment and support allowance, and about many others who are in dire straits. The Government have no intention of doing anything to help them and they have rejected Labour’s first-step proposal of extending pension credit to both women and men who are being denied their state pension for years to come. I ask the Minister to think again. Assuming that his hands are tied by the Chancellor and the Prime Minister, will he set up a dedicated proactive helpline for those affected so that they can access the social security benefits that the Minister says are sufficient to meet their needs?
(7 years, 9 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure, as always, to serve under your chairmanship, Mr Nuttall.
I congratulate the hon. Member for Ross, Skye and Lochaber (Ian Blackford) on securing this debate on an important issue. I am sure that ’50s-born women up and down the country will be listening eagerly to hear whether the Minister is prepared to do anything more to alleviate their plight. I also pay tribute to the many MPs across the House campaigning on the issue, particularly the all-party parliamentary group on state pension inequality for women, which is chaired by my hon. Friend the Member for Worsley and Eccles South (Barbara Keeley).
I was never in any doubt when I took on my role as shadow Pensions Minister that this issue would be one of the biggest and most contentious, and I have been proven right. I have already had contact with groups from across the country, all campaigning on the same message: the previous Tory-Liberal Democrat coalition Government’s rapid changes to the state pension age are simply unfair.
Most of the women recognise, as others have said, that the state pension age must be increased in recognition of a workforce that is living longer and to address the gap in the retirement age between men and women. However, what cannot be accepted is the unfair and unjust approach that the previous Government took and that the current Government are not prepared to change. The policy has had failures from the start. There has been a severe lack of communication from the Government on the changes, leaving 2.6 million women in doubt about their circumstances and providing only uncertainty to potentially vulnerable people up and down the country.
The Minister has heard many Members outline the case on behalf of ’50s-born women. The hon. Member for Ross, Skye and Lochaber made a comprehensive speech that left us in no doubt about how unfair it all is and how the Government could change things. Although I do not recognise some of his financial numbers, we agree that some changes could certainly be funded if the Government had the will.
There is some Conservative support for the WASPI women. The hon. Member for Waveney (Peter Aldous), who has now left, spoke about the lottery faced by ’50s-born women when it comes to retirement age. That is hardly fair. My hon. Friend the Member for Coventry South (Mr Cunningham) spoke about the different levels of poverty created by the Government’s policy, and another Conservative, the right hon. Member for Meriden (Dame Caroline Spelman), spoke about people in the latter stage of their careers who find themselves with caring responsibilities and little income to support them.
My hon. Friend the Member for Dudley North (Ian Austin) spoke of bereaved women left with no support. My hon. Friend the Member for Wirral South (Alison McGovern) described herself as a veteran of the campaign and reminded us that we have been having this debate and talking to the Government about the issue for more than five years, yet they do nothing. My hon. Friend the Member for Newport East (Jessica Morden) spoke of angry women, but also of anxious women, one of whom has had to sell her home and move away in order to make ends meet. The hon. Member for Strangford (Jim Shannon) spoke of the hardship of a woman in her sixties forced on to her hands and knees to scrub floors to make ends meet. The hon. Member for Banff and Buchan (Dr Whiteford) spoke of the half a million women given too few years to prepare for retirement, many of whom probably have some of the lowest incomes in the country.
I know of another example: a 61-year-old woman having to live with a friend, who receives just £8 a week from a private pension and is worried how she will afford basics such as dental treatment. She is like so many others: not fit for work, but not sick enough for employment and support allowance. She walks to the jobcentre every day, even in the snow, with her walking stick. She was let down by the last Parliament, and now this Government are letting her down.
I believe the Minister to be a caring and compassionate man who is looking for answers to a problem that is not of his making but is tricky for the Government. Indeed, the absence of Conservative Members in the Chamber illustrates how tricky this issue is for the Tory Government. Sadly, some very specific ideas put forward by the shadow Secretary of State, my hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams), have been rejected by the Government. That has probably been driven by the Treasury’s not being prepared to invest in a better quality of life for the women most affected.
That is very disappointing, but there is still time: the Minister has an ideal opportunity to do something positive. He can go to the Treasury before the autumn statement and fight for the resources that are needed, and he can then have clauses added to the Pension Schemes Bill that is currently in the other place, to allow the necessary changes. Then again, he may feel constrained by the threat of legal action from WASPI, which has raised more than £100,000 to challenge the Government’s failures in the courts. Perhaps he can confirm whether he feels that his hands are tied.
Contrary to what the Prime Minister claimed, the Opposition have tried to help her out of this hole and laid out plenty of options for the Government. Labour set out six transitional options and we are still waiting for the Government to properly address them and their potential. We proposed delaying the state pension age increase until 2020; capping the maximum state pension age increase from the Pensions Act 2011 at 12 months; keeping the qualifying age for pension credit on the previous timetable; allowing those affected to take a reduced state pension at an earlier age during the transition; extending the timetable for increasing the overall state pension age by 18 months so that it reached 66 by April 2022; or paying those affected a lower state pension for a longer period. Sadly, the Government chose not to follow up any of Labour’s suggestions.
Of course we recognise that solutions cost money, but the Government have made vast savings as a result of the late changes to the pension age and should be able to reinvest some of them to do something to help the vulnerable women who have been ruined because of a decision that they had no say in and certainly did not vote for.
The hon. Gentleman says, rightly, that the Labour party has presented options. Does he welcome the fact that the Scottish National party is presenting a costed option? The Government cannot argue with the figures.
I do not recognise some of the numbers that the SNP is using, but believe me, we want a solution just as much as the SNP. I believe that Conservative Members do too, and we need to work together to achieve that solution.
We have had half-hearted attempts from the Government to quell the voices of women who are rightly angry about these changes and the impact they will have on them and their families, but those attempts are not good enough. An independent review into the future of the state pension age that will not even consider the existing accelerated timetable is not good enough either. Sadly, previous Pensions Ministers have chosen to bury their heads in the sand, but I hope the new Minister is as anxious to find solutions as we are. Failing to use the Pension Schemes Bill to marshal in change would be a missed opportunity by the Government to address the concerns that are being raised by hundreds of thousands of women throughout the country. The Government must think again, and they must do so urgently to cause minimum hardship.
I am well aware that past Ministers have ducked the issue, claiming that sufficient transitional arrangements are in place. The accounts we have heard today, and many others that I am sure the Minister is aware of, demonstrate that those arrangements are totally inadequate. Despite his past misgivings, the Minister can provide real hope for the women affected. I hope he will take the opportunity to do so today.
I am really sorry but there is not enough time. Members should hear me out.
Some women may wish to continue to work but be unable to do so. The welfare system provides a safety net for those of working age, which has been ignored by many speakers, and there are a range of benefits tailored to individual circumstances. The system is designed to deal with problems ranging from difficulty in finding work to disability or ill health making work difficult, and to help those with increasing caring responsibilities.
I am sorry, but there is not enough time. [Hon. Members: “Oh!”] Well, okay, out of respect for the hon. Gentleman.
I am grateful to the Minister for giving way. I took eight minutes, leaving him with around 15.
I gave the example of a 61-year-old woman in dire straits, and we heard many other examples of individual women who are not being looked after by the state benefits system. What can we do together so that the most vulnerable can live a life?
I know about the eight and 15 minutes, but I was asked by the Chairman to leave some time for the hon. Member for Ross, Skye and Lochaber; I was not being discourteous at all.
Benefits are a complex subject that I am sure we will have plenty of time to discuss elsewhere. Suffice it to say that the range of benefits is quite wide. If the hon. Member for Stockton North (Alex Cunningham) feels that there are gaps in the benefits system, I would be pleased to discuss them with him, but obviously not now because there is not enough time. I am trying to make progress, as you requested, Mr Nuttall.
The hon. Member for Strangford (Jim Shannon) and many other MPs shared cases of hardship, and of course I am sympathetic to them.
(7 years, 10 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship, Ms Dorries. I, too, congratulate the right hon. Member for West Dorset (Sir Oliver Letwin) on securing the debate. I am told he is quite a champion on these matters.
As others have mentioned, the AEAT scheme is a defined-benefit final salary scheme set up when AEA Technology was floated on the stock exchange in 1996. At that time, under the Atomic Energy Authority Act 1995, a condition of the privatisation agreement ensured that the benefits received by the scheme members were “no less favourable” than those they would have expected to receive from the UK Atomic Energy Agency pension scheme, set up when the Government were their employer. A month or so later, in November 1996, the Government Actuary’s Department issued the note that has been mentioned, outlining the options available to scheme members. However, those scheme members believe that they were actually encouraged to transfer into the new scheme. Sadly, as we know, in 2012 AEA Technology entered into administration and the pension fund was entered into the Pension Protection Fund.
It is worth adding that the pension benefits accrued before 1997, which would have been for all those who acted on the basis of the Government’s original commitment in the 1995 legislation, are not eligible for index-linked uprating. That is why pensioners believe they have been misled and, as a result, will be worse off. In effect, that means that those scheme members who decided to transfer their pensions following advice that their benefits would be “no less favourable” back in 1995 suddenly find themselves with a smaller pot, the real value of which is eroded by inflation every year. The campaign estimates that some members could lose half their pension pot.
Despite that, a determination by the pensions ombudsman found that the original commitment to ensuring that benefits were “no less favourable” did not amount to a guarantee against future changes to the pension benefits owing to financial difficulties. Surely the Government have responsibility to ensure that promises made to members of the UKAEA pension scheme were fulfilled, and have serious questions to answer about whether the Government actuarial note amounted to impartial guidance. Furthermore, in a Westminster Hall debate last year, the hon. Member for The Cotswolds (Geoffrey Clifton-Brown) raised important questions as to whether the scheme received sufficient funds from its mother scheme properly to protect it against later risk of deficit. That mother scheme was apparently operating at a surplus, and some of that money disappeared into the Treasury—I wonder whether the Minister knows how much it was.
We have heard that the Government actuarial note actively encouraged members to transfer their funds to the new scheme. Although the pension scheme group notices and recognises that the note certainly did outline arguments both for and against the transfer, it believes that it dismissed all of the arguments against. That was best highlighted by the right hon. Member for West Dorset, particularly in relation to the fact that they were leaving behind a scheme that was backed by the Government.
In future, we have to ask whether scheme members can be expected to take responsibility for moving their pension savings on the basis of what has been described as impartial advice. Has the Minister examined the evidence in question? If it is apparent that amendments were made to obscure the risks of changing the offer and moving the scheme, will he agree to take action? Last year, the then Pensions Minister argued that the Government could not possibly act without setting a precedent for other formerly state-owned enterprises. I do not see that that needs to be the case. Given the points made about alleged amendments to the note from the Government Actuary’s Department at the request of the UKAEA, surely these pension fund holders are in a unique position.
Clearly, pre-package administration deals are sometimes necessary to ensure that the process of insolvency can be managed quickly and effectively in a rapidly evolving insolvency situation. As we have seen recently, for example in the case of Bernard Matthews, there are instances where pre-package deals have negatively affected employees’ pension entitlements while allowing parent companies to walk away from insolvency with very large sums of money. What plans does the Minister have to look more closely at an expanded role for the Pensions Regulator to intervene earlier in the process when a number of warning signs are triggered? How will the Minister ensure that pre-package administration deals are not used as a vehicle for employers to reduce their pension responsibilities?
Given the promise made by Government to ex-Government scheme members that their benefits would be protected, the criticisms made of the guidance offered by the Government Actuary’s Department note, and what many believe to be the failure to properly resource the new scheme to ensure it would be put on a sustainable footing, will the Minister agree to consult scheme members to explore all avenues for redress? Will he also agree to strengthen the governance of defined-benefit pensions schemes to ensure that scheme members’ pensions are better protected in future cases of insolvency? I recognise that this may not be a simple matter, but if the advice that was given to the pensioners was flawed, someone needs to take responsibility for the members’ losses. I hope the Minister will now do that.
(7 years, 10 months ago)
Commons ChamberAs the hon. Gentleman is aware, I have said many times, as have other Ministers, that the transitional arrangements have cost more than £1 billion and there are arrangements in place for those people in destitution. It becomes a question of the public money that is spent. At the moment, the new state pensions are costing £89 billion a year, plus pension credit and everything else, and there is no further money available.
I am very surprised that no Government Members want to ask questions about this topic. The Prime Minister celebrated her 60th birthday earlier this month, making her part of that sisterhood of 1950s-born women who have been so shabbily treated by her predecessor’s Government. My hon. Friends the Members for Swansea East (Carolyn Harris) and for Scunthorpe (Nic Dakin) have already referred to the mass petitions organised by WASPI, and we have heard about the amazing change of mind of not one but two previous pensions Ministers, who have acknowledged that the whole thing was wrong and a bit of a mess. Unlike other members of the special sisterhood, the Prime Minister will probably not have to rely on the state pension, but will the Minister appeal to his boss to use the power she has and to compensate some of the most needy women in our society?
I find it strange that the hon. Gentleman and his party were in the House when the Pensions Act 2011 was passed, yet their 2015 manifesto made no mention whatsoever of negating it.
I welcome both those pieces of news, and the employment that will be brought to my hon. Friend’s constituency. What she has said about the opening of the hotel reflects a national trend. We know from surveys that the demand for staff in the hospitality industry continues to be strong, and it is one of the factors that are helping us to achieve a record level of employment.
According to the International Monetary Fund, a series of forecasts has shown that the vote to leave the European Union will lead to low global growth and rock-bottom interest rates for years to come, and that as a result, despite the saving of trillions of pounds, workers who are due to retire in the next few years will not even have their basic needs met. Today, as the deputy Governor of the Bank of England defends the Bank’s approach to the economy to Members of Parliament and outlines his concerns about pensions, will the Secretary of State tell us what the Government are going to do to shore up the pensions of people who have done the right thing and earned their retirement?
The best thing that the Government can do—and, of course, it is what we are doing and will continue to do—is ensure that our underlying economy is strong and continues to create jobs as it has over the past six years, because, as we know, that is the best way to preserve and enhance both the state and the private pensions systems in the future.
(10 years, 5 months ago)
Commons ChamberMy hon. Friend illustrates the point perfectly. There are many complicated issues surrounding the debate that has started about decriminalisation of non-payment of the licence fee. It is important that all those factors are taken into account, which is why the Government’s position is that it is perhaps better to do so during charter review.
6. What assessment she has made of the social and economic effects of betting shops in areas with high levels of deprivation.
The Government continue to examine the relationship between area deprivation and the impact of betting shops as part of our ongoing review, which will report later this spring.
Many of my constituents and I enjoy watching football and other sports on television, but we are sick and tired of betting ad after betting ad during every event under the sun. Coupled with the increasing number of bookie shops in communities, that is driving betting culture, particularly among young people, who are promised an easy fortune but do not get it. Will the Government do anything to cut the advertising and this escalation of betting promotion to protect our communities into the future?
The hon. Gentleman raises a lot of important issues there, but I can tell him that considerable pressure is being kept on the industry. I met the chief executives of the big five bookies in December and January. We requested and they have complied with strengthened player protections. The Secretary of State has also asked the Gambling Commission to consider tougher and mandated player protections. She has also asked other regulators to review gambling advertising.
1. What assessment he has made of the cumulative effect of the Government's policy programme on disabled people.
The Treasury regularly produces analysis of the cumulative impact of coalition changes, including welfare. However, even independent bodies such as the Institute for Fiscal Studies do not feel that results can be broken down reliably for the disabled community.
In my Stockton North constituency, 860 disabled people have been referred to the Work programme, but only 60 have found employment as a result. Does the Minister agree that a 7% success rate is appalling? What will he do to ensure that Work programme contractors provide greater specialist support for disabled people to help them into work instead of abandoning them?
There was only one Government who abandoned disabled people on the Work programme and that was the previous Administration, and that is the truth. We will not allow that to happen. We will work very closely—[Interruption.] Opposition Front Benchers can try to shout me down, but it is the truth, and everyone knows it is the truth. Yesterday I was in Leeds where we talked to employers, especially small and medium-sized enterprises, to give them the confidence to employ people with disabilities and long-term illnesses.
(10 years, 6 months ago)
Commons ChamberThe right hon. Gentleman makes a good point. The work we have done with ISPs has been to give parents the tools on how to block sites. I am particularly pleased that the main ISPs have come together and put £25 million on the table to begin a campaign—I think it starts this spring—to educate parents who, for many reasons, are not as familiar with the technology as are their own children.
5. What steps she is taking to increase child care provision to help women in their careers.
The Government want parents to be able to access affordable child care so that they can afford to work while knowing their child is in a safe and stimulating environment. The Department for Culture Media and Sport provides grants to those wishing to set up a new child care business and the Department for Education is increasing child care provision by: simplifying the rules so nurseries can expand more easily; enabling good and outstanding childminders to access Government funding for early years places to make care cheaper for parents; and legislating to create childminder agencies to give parents and childminders more choice.
With local authorities reporting that the number of breakfast and after-school clubs is deteriorating fast, will the Minister back Labour’s proposals to guarantee them specific funding in the future?
As I understand it, there are 500 more after-school clubs than there were at the time of the last election, which is a 5% increase over the past couple of years. The Department for Education is working extremely closely with schools to encourage the increase of breakfast clubs, wraparound care and after-school clubs as they make it far easier for a large number of parents to work while their children are in a safe and protected environment.
(10 years, 9 months ago)
Commons ChamberOn the latter point, not only will I ensure that the hon. Gentleman receives the letter he requires, but if he wants to meet me, I will be more than happy to do that. The Department has commissioned four independent reviews. We know we need to get there; we know we need to do more. We have made changes to help cancer patients and are carrying out an evidence-based review of criteria, which is being overseen by Professor Harrington. I expect to see that report quite soon.
My constituent Matthew Moore, who has a severe mental health condition, was told that he no longer qualified for employment and support allowance. He appealed and months later saw the decision in his case overturned in a few minutes. The tribunal chair said that he was shocked that ESA had been withdrawn in the first place and had no hesitation in awarding 30 points. Is that not yet another example of the incompetence of the many people paid to carry out assessments of some of our most vulnerable people, and of why the Government need to get their act together, have some compassion and ensure that such people are treated fairly?
Individual cases are understandably quite emotional for individual MPs and their constituents. If the decision in that case was overturned, we will look carefully at what the tribunal said. We need to do that to ensure we get it right. However, this process was started by the previous Administration—it is nothing new for this Government—but we will get it right where, I am afraid, they got it wrong.
(10 years, 9 months ago)
Commons ChamberHomeless people are refusing to accept a home and get their families off the street as a direct result of the Government’s bedroom tax. If they take a house with an extra room—they might not have any other choice—they believe that they cannot stretch their food budget, their energy budget or any other budget to pay the bedroom tax, so they and their children remain homeless, and it is the coalition Government who are to blame. Working families will not take on larger properties in case their circumstances change. We have examples of both councils and housing associations with houses standing empty, so we have empty houses and homeless families. It is incredible that the Government could get this policy so drastically wrong.
Let us consider the high-rise Prior and Melsonby Court in my constituency. Some £4 million was spent on improving properties there, yet 10% of them currently remain empty. The reason is that young single people cannot take on two-bedroom properties because they cannot afford to pay the bedroom tax and the properties are no use for families.
It is often said that a Prime Minister can be defined by his policies, so it is telling that at the same time as this Prime Minister gave a tax cut worth £100,000 to 13,000 millionaires, his Government introduced a measure that unfairly hit 660,000 people. It is unfair because it targets the most vulnerable, unfair because the charge is arbitrary and does not allow for consideration of the ability to pay, and unfair because it is incurred despite no smaller properties being available in the vast majority of cases. In case we are in any doubt, the Government’s own impact assessment was based on families being unable to move to avoid the bedroom tax, identifying mismatches in many areas that would result in insufficient properties being available. Put simply, the Government knew from the outset that the bedroom tax would result in families having no alternative but to pay up or face eventual eviction.
How are people advised to cope? They are told to work extra hours or take in a lodger: absurd indeed. Our people are groaning under the cosh of part-time, low-paid jobs that leave them dependent on housing benefits—if they are in work at all—and how many housing associations or local councils allow sub-letting to lodgers? I challenge Government Members to come and be a lodger in one of the council houses in my constituency for a week and find out all about the reality they need to find out about.
The largest housing association that serves my constituency, Tristar Homes, currently has 1,725 tenants classed as under-occupying their property. Almost two thirds have accrued rent arrears, with 85% being subject to increasing amounts. This means that since the introduction of the bedroom tax, tenants with Tristar Homes have amassed arrears of £100,000. However, even that is not reflective of the true cost of this Government’s policy, because it is on top of the additional costs borne by Tristar Homes in dealing with the increased levels of debt and efforts to help tenants back into work, and £50,000 that it has invested in its own money advice service. This still does not take into account the £265,000 discretionary fund established to provide some support to tenants impacted by the loss of housing benefit. In total, the cost to Tristar Homes of dealing with the bedroom tax and its effects has surpassed £500,000.
This expensive failure to address the many symptoms of the housing crisis is the reason we must repeal the bedroom tax without hesitation. We have already pledged to do so. The Prime Minister should beat us to it and end this misery for countless families.
(10 years, 10 months ago)
Commons ChamberI have not read the report in any detail, but I do know that the 600,000 figure does not necessarily refer to people of working age who could be working. There is a big question mark over the number of people to whom it relates. I do not want to find myself in the middle of a debate between some of the media and the European Union, so let me simply say that our own assessment—our habitual residency test—currently prevents people who could be working and not on benefits from claiming those benefits. It is the Commission that is trying to get us to change that, and I am utterly refusing to do so.
The unemployment rate in my constituency is nearly 9%. One mother whose benefits have been capped has little opportunity of getting a job, especially as she has several small children to look after. She is putting feeding and clothing them and paying bills ahead of paying her rent, so her landlord, Miguel Contreres, is receiving just £30 a week. Can the Secretary of State provide a fair alternative to the landlord’s throwing that mother and her children out on to the street?
Can we please return to reality? [Interruption.] I love the fact that my new shadow, the hon. Member for Leeds West (Rachel Reeves)—whom I welcome to her position—was out over the weekend saying “We are going to get really tough on benefits”, and at the first opportunity Labour Members are carping about the cap and the spare room subsidy. The truth is that the cap applies to people with average earnings. May I ask the hon. Gentleman what he might like to say to those who are trying and working hard, and who wonder why people on benefits are earning more than they are?
(11 years, 3 months ago)
Commons ChamberFirst, may I welcome the fantastic work my hon. Friend did when he was in that job? He is absolutely right, and I will ensure that we liaise with colleagues and make that argument strongly, but it is one that I think they already bear in mind strongly.
T3. I keep hearing of homeless people having particularly difficult and negative experiences of the Work programme. Crisis has told me of a woman who lives in a hostel and has serious mental health problems, some of which relate to being homeless, yet she was referred to a sub-contractor specialising not in mental health, but in learning difficulties, who was obviously no use to her whatsoever. What will the Secretary of State do to sort out the people who are supposed to be offering services and support that are appropriate to people’s needs and end the failure of his Work programme?
There are some excellent examples of how the Work programme has worked with people who are homeless and those who have mental health problems. The important thing is to learn from where practice is excellent. We will ensure that that happens and that good practice is shared.