(3 months, 1 week ago)
Commons ChamberThe wheels of justice certainly turn slowly under this Government, and hundreds of thousands of people across the country are paying the price in the Crown courts, the civil courts, the family courts and tribunals. At the end of 2023, the employment tribunal backlog stood at more than 460,000 cases. Those are cases affecting workers who have been bullied, workers who have been denied pay and workers who have been unfairly dismissed. Does the Minister think that workers, like the Government, should just give up on the justice system, roll over and accept what employers do to them, or is there a new magic formula to sort this out?
(5 months ago)
Commons ChamberDespite the response given to my hon. Friend the Member for Gower (Tonia Antoniazzi), the Government are still a long way from solving the crisis in the family courts. We have heard of the 46-week average, but in 13 of the 42 designated family judge areas in England and Wales, the wait is double the statutory target of 26 weeks. Then, there are the 80,000 private family law cases that can take 45 weeks to be resolved, and the number of new cases is increasing faster than disposals. Do the Government have any concern or compassion for some of the most vulnerable children in the country who are being let down? I invite the Minister to try again and assure the House that the crisis will not get even worse.
(6 months ago)
Commons ChamberRape and serious sexual assault cases have increased to 10.3% of all Crown court cases and, with nearly 10,000 of them, they make up one in seven of the backlog. The average wait time for a trial after charge has risen to 18 months. We also know from the Criminal Bar Association that there has been a tenfold increase in adjourned cases due to the fall in the number of rape and serious sexual offence prosecution or defence barristers, with the Crown Prosecution Service now employing King’s counsel to fill the gap. Add to that the many legal aid deserts due to the shortage of solicitors and we have a major staffing crisis across the criminal justice system. How is that going to be fixed?
(6 months, 2 weeks ago)
Commons ChamberOn a point of order, Mr Speaker. Last week, we saw the lid lifted off the secret empire of Tory Tees Valley Mayor Lord Houchen, and the 28 recommendations for improvement in the way he does business covered everything from poor decision-making and a failure to provide his board with proper information, to a lack of transparency and value for taxpayers’ money. Yesterday, we learned that he had squandered several million pounds of that money in losing a needless legal action against PD Ports about access rights.
In the past, the Secretary of State for Levelling Up, Housing and Communities has refused to call in the National Audit Office to examine how the Mayor did business, opting instead for his own independent inquiry. Given this latest revelation, can you advise me, Mr Speaker, on how we can get the Levelling Up Secretary to make a statement from the Dispatch Box about the latest scandal, so that we can persuade him of the need to get the NAO in there to look at that colossal waste of public money and report his findings to Parliament?
I am grateful to the hon. Member for giving notice of his point of order. I can assure him that I have had no indication that Ministers intend to come to the House to make a statement on that matter, but I am sure that the Table Office will be able to help and advise him on how to pursue it, so I know that he will not give up yet.
Bills Presented
Support for Infants and Parents etc (Information) Bill
Presentation and First Reading (Standing Order No. 57)
Sally-Ann Hart presented a Bill to make provision for and in connection with the making available of information about support available for infants, parents and carers of infants, and prospective parents and carers, including reporting requirements relating to such support.
Bill read the First time; to be read a Second time on Friday 15 March, and to be printed (Bill 160).
Ministerial Severance (Reform) Bill
Presentation and First Reading (Standing Order No. 57)
Emily Thornberry presented a Bill to amend the Ministerial and other Pensions and Salaries Act 1991 in relation to grants to persons ceasing to hold ministerial and other offices; and for connected purposes.
Bill read the First time; to be read a Second time on Tuesday 27 February, and to be printed (Bill 162).
(7 months, 2 weeks ago)
Commons ChamberThe latest criminal court statistics show a Crown court backlog of 66,547 cases, once again breaking records. The next quarter has just ended, so does the Minister expect the figures to break records again?
(7 months, 2 weeks ago)
Commons ChamberOn a point of order, Mr Speaker. The Financial Times is reporting that Teesworks Ltd—the so-called public-private partnership to redevelop the former steelworks site on Teesside—has reported an exceptional year, tripling its profits to £54 million. Sadly, the public will see very little of that hard cash, as under the Tees Tory Mayor, 90% of shares in the company were handed over to two local businessmen. That means they get £48.6 million, and the public get just £5.4 million. Personally, I think that is scandalous.
When my hon. Friend the Member for Middlesbrough (Andy McDonald) and I raised questions about the way that business is done at Teesworks, the Secretary of State for Levelling Up, Housing and Communities ordered an inquiry, which was expected to have reported by now. Will you please advise me, Mr Speaker, on whether you have heard of any plans by the Secretary of State to come to the House to make a statement about why that report has been delayed and when we can expect it?
I have had no indication from the Government that the Secretary of State intends to make a statement on this matter, but I am sure that those on the Treasury Bench will have heard the hon. Gentleman’s remarks, and I am sure he will pursue it in other ways. No doubt, if nothing is forthcoming, it might need an urgent question—that is a possible suggestion.
(9 months, 1 week ago)
Commons ChamberContrary to the claims of Ministers at every Question Time that they are getting the courts backlog sorted out, they are not, and the pain just drags on for victims. The Crown court backlog reached a record 65,000 cases at the end of June. Nearly 5,000 of them have been waiting for two years and 36,000 cases have defendants on bail. Why are things still getting worse?
I thank the hon. Gentleman for giving notice of his point of order. It is fundamentally a constitutional principle that MPs should be able to speak freely in proceedings of this House. Threats to Members doing their jobs are totally unacceptable, whoever makes them. Beyond that, I remind him that we do not discuss operational security matters in public, and he would not expect me to go further than that, but I will say that, of course, we take this seriously, and Members should, no matter their position—be they a Back Bencher or a Chair of a Select Committee—be able to speak out openly and freely without intimidation.
As a reminder to foreign states: they have no right to threaten anyone in this House. To go a stage further, I am sure that the Treasury Bench will have heard the hon. Gentleman’s request to summon the ambassador. As he knows, that decision is not a matter for me, but I have certainly echoed his request for that to take place.
On a point of order, Mr Speaker. For the past 13 years, I have had the privilege of being the patron of Stockton Rugby Club, a tremendous community organisation that works with more than 500 boys and girls who play the game and runs several youth and adult teams. Today, I am proud to wear the junior academy tie. Would it be in order for me to invite you, Mr Speaker, and colleagues across the House to join me in congratulating the club on its 150th anniversary and wishing it well for the next 150 years?
Of course, even if it is rugby union, I am happy to recognise those 150 years of playing rugby. It is just a tragedy that the club did not take up rugby league when the Northern Union was formed but, despite that disappointment, of course I congratulate those at the club—150 years is a significant milestone in any sport.
(1 year, 1 month ago)
Commons ChamberI wonder whether the Minister has considered the Magistrates Association report “Inaccessible courts: a barrier to inclusive justice”, which shows that magistrates courts in England and Wales have serious accessibility failings. It says that impacts on the efficiency and fairness of the justice system and undermines efforts to recruit a more diverse magistracy. One in five magistrates courts do not have level access. In 30% of courts, magistrates with a disability cannot sit in some or all of the courts in the complex. A third of courts do not have accessible toilets for them, and half do not have hearing loop systems installed or operating. Just what has happened to all that cash the Government claim to be investing? It certainly is not addressing the basics.
(1 year, 3 months ago)
Commons ChamberWe have heard the human cost of the Government’s policies, but I have had the pleasure of facing several—four or perhaps five—Justice Ministers across the Dispatch Box who claimed they would sort out the courts backlog. They have all failed. Contrary to what the Minister said, Crown court cases increased by 6% on the previous year in February: up 3,500 to nearly 61,000. Magistrates court cases were up 1,600 to more than 345,000. President of the Law Society Lubna Shuja has said:
“The data cuts through the rhetoric and clearly shows that delays in the criminal justice system aren’t coming down anytime soon.”
What new rhetoric does the Minister have today?
First, I am grateful to the hon. Gentleman for giving notice of his point of order. I have not received any notice about a statement on the matter he has raised.
On a point of order, Mr Speaker. Today’s Financial Times contains a major exposé on the questionable business dealings of the Tees Mayor, which, among other things, have seen vast public-owned assets transferred—[Interruption.]
Order. I want to hear this point of order. If somebody doesn’t, please leave.
Thank you, Mr Speaker. I am talking about the questionable business dealings of the Tees Mayor, which, among other things, have seen vast public-owned assets transferred to two local businessmen. Secrecy is central to everyone’s concerns about what is happening on Teesside, where there is a total lack of transparency about public assets worth hundreds of millions of pounds. We have even seen the National Audit Office demand that the Mayor corrects his claims that it has given his dealings a clean bill of health. Are you aware of any plans for a statement on this serious issue, so that we can be reassured that Ministers know what is going on and hear of any plans to end the secret activities on Teesside, so that they do not adversely impact any investors’ plans for the area and protect the public interest?
First, I am grateful to the hon. Gentleman for giving notice of his point of order. I have received no notice of a statement on this matter, but I am sure that, as with the previous point of order, it will not be left at that and that he will continue, in different endeavours, to ensure that it is heard in a different way.
Bill Presented
Nakba Commemoration Bill
Presentation and First Reading (Standing Order No. 57)
Layla Moran presented a Bill to make provision about the commemoration of the Nakba; to require the Secretary of State to encourage and facilitate annual commemoration of the Nakba; and for connected purposes.
Bill read the First time; to be read a Second time on Friday 24 November, and to be printed (Bill 306).
(1 year, 5 months ago)
Commons ChamberThe Minister would have us believe that all was well and great progress was being made in tackling the courts backlog. Then we got the damning National Audit Office report into the reform programme. The catalogue of problems is too extensive to detail here, from the ailing common platform to the hundreds of failing processes within the 46 projects yet to operate in the way they were intended. I therefore pose the same questions as the NAO: when will Ministers be able to quantify the now decreasing benefits of the programme and demonstrate that it has improved access to justice?
(1 year, 6 months ago)
Commons Chamber(1 year, 7 months ago)
Commons ChamberIt is always someone else’s fault. I have listened to the Minister trying to talk up progress, but both he and I know it is not good enough. I can understand the anxiety in Government over the failure to make any real impact—at the current rate of progress, the backlog will continue into the next Parliament, if not beyond. The Minister will agree that it is bad for victims, staff and defendants and, above all, is a failure of justice. What will he do to reassure our dedicated court staff that he will get the disastrous common platform IT system sorted out? Will he confirm how much extra taxpayers’ cash is being thrown at the system to get it right?
(1 year, 8 months ago)
Commons ChamberThank you very much, Mr Speaker, and apologies for the croaky voice this morning.
It is indeed. I welcome the Minister to her new role. She and I have shared time on Bill Committees, and it is good to be debating these issues again with her. I congratulate the right hon. Member for Tunbridge Wells (Greg Clark) on achieving Government support for his Bill. I very much welcome the people from his constituency who are in the Gallery, and who perhaps played a part in helping him to introduce the Bill. Seeing as they are in the Gallery, I reference a television programme called “God Rot Tunbridge Wells!”, which tells the story of Handel’s life. The honourable people in the Gallery and the right hon. Member may like to watch that programme, because they will see that I play a starring role in it. That is something to look out for.
I also pay tribute to Plan International UK for all the amazing work it has done in its “Crime Not Compliment” campaign, launched in 2020 to call on the Government to finally make public sexual harassment a crime. My hon. Friend the Member for Walthamstow (Stella Creasy) has named a large number of organisations this morning that have been working in this space, and my tribute goes out to them, as well.
That we have such behaviour in our society is bad enough, and the statistics in Plan International’s report, “Everything is Racialised on top” make for stark reading. Its work shows that, while 75% of white girls have suffered public sexual harassment, that figure rises to 82% for black, black Caribbean and black British girls, and 88% for mixed race girls. The Bill today does not go quite as far as Plan International would like. It would like a law that criminalises all forms of public sexual harassment and comprehensively closes the legal gaps surrounding this behaviour, but the Bill is a welcome first step in the right direction, and Labour is pleased to support it. That will be of no surprise to the Government, as we tabled many amendments to address sex-based harassment in public when the Police, Crime, Sentencing and Courts Act 2022 was in Committee last summer. Sadly, the Government voted those ideas down.
We were in the same position last week, with the Offenders (Day of Release from Detention) Bill, to which my hon. Friend the Member for Bolton South East (Yasmin Qureshi) spoke. We tabled a specific amendment to the same Bill, and I am pleased that prisoners will not now be released on Fridays, when many of the services they need are closing down.
While I am glad that the Government are finally taking action on all these issues we were debating a year and a half ago, the chaos at the heart of Government means that these important reforms are still being delayed time and again. It is simply not good enough, and our constituents deserve better.
I turn to the content of the Bill. We all know that public sexual harassment can have a real and serious impact on those who experience it. It can seriously impact how safe and confident women feel in public places, and it is mostly women who are victims of this abuse at the hands of mostly male perpetrators. However, as has been mentioned, it is also important that male victims are included, and we are glad that the Bill makes such provision.
As we have already heard, sexual harassment in the streets can be a precursor to even more serious kinds of discrimination and violence against women and girls. As Laura Bates, the founder of the Everyday Sexism Project, puts it:
“As a society, the normalisation of sexual harassment in public spaces plays a huge part in creating a gendered power imbalance and ingraining derogatory attitudes and behaviours towards women. What starts in public spaces doesn’t stay there. It plays into discrimination against women in the workplace and abuse in the home. If we say street harassment doesn’t matter, we’re designating women’s bodies public property. And that has a huge knock-on impact.”
As we know, the call for evidence for the Government’s tackling violence against women and girls strategy received 180,000 responses. I wonder how many women out there would have liked to contribute, but did not know that they actually had that opportunity. I suspect that, if they all had known, it could have run into millions of people sharing their stories. However, the fact that there were 180,000 responses is testament to the extent of the problem. Those who have bravely spoken up have contributed to some distressing, although sadly not surprising, findings. One in two women and one in six men felt unsafe walking alone after dark on a quiet street near their home. Some 45% of women and 18% of men felt unsafe walking alone after dark in a busy place. One in two women aged between 16 and 34 had experienced one form of harassment in the previous 12 months, with 38% of women aged between 16 and 34 having experienced catcalls, whistles, unwanted sexual comments or jokes, and 25% of women felt they were being followed in the street.
Last year, research by UN Women UK found that only 4% of women who had suffered sexual harassment reported the crime, and only 45% believed that reporting the crime would make any difference. Among those who did not report the crime to the police were people who had been groped, followed and coerced into sexual activity. It is deeply distressing that women do not feel they can put faith in our justice system when it comes to such abuses. The figures underline the urgency of the need for concrete action from the Government beyond the provisions of this Bill, as so much more needs to be done.
I am encouraged that in this debate there is cross-party consensus that enough is enough. We need to make sure that women and girls can trust the justice system to address these harms in the knowledge that this type of behaviour will be treated with the severity it truly deserves. If we demonstrate how seriously we take such behaviour, the perpetrators on our streets will know their abuses will not be tolerated. The Opposition agree that public sex-based harassment is a crime, not a compliment.
The Minister talked about the money spent on many initiatives throughout the country, and that spend is welcome. She also referred to the fact that many young boys now recognise that the behaviour of some of their peers is far from acceptable, and I agree. It is wonderful that education in schools is perhaps now catching up and boys are getting the right message about how they should treat girls. More importantly, it is tremendously good news that some of them are prepared to stand up and defend women and young girls in their own classroom.
We need changes in the law to ensure that women and young girls can feel safe. The House needs to do so much more to ensure that they feel safer in public spaces. The Government missed golden opportunities to do so in the Police, Crime, Sentencing and Courts Act, but I am glad that today we can at least take another step in the right direction. We will support the Bill.
(1 year, 9 months ago)
Commons ChamberOh dear, dear, what a mess: our courts systems were in chaos before the pandemic, and now it is much worse, with some cases taking years to come to court and remand numbers at record levels. The Common Platform was supposed to make courts more efficient, but fails in everything from recording criminal convictions to getting crucial data to the Registry Trust on time. Worst of all, it is having an adverse effect on people’s lives, including those who use it. Costs have soared from £236 million to more than £300 million, with Ministers ready to pay an IT firm another £20 million for product enhancements. Will the Minister tell us where the money has gone, why the system has not been sorted and whether he will pause the roll-out until it is?
(1 year, 9 months ago)
Commons ChamberI get extremely anxious about my homeland splitting from my now home country, particularly as Scotland has no credible fiscal plan. As I see child poverty increase, the once leading education system trashed and the NHS left to deteriorate, I wonder who is at fault. Does the right hon. Member accept that while the Tory Government have let Scotland down—
Order. This is meant to be an intervention, not a speech about all your issues. I am more than happy to put you on the speaking list.
(1 year, 10 months ago)
Commons ChamberI am grateful to my hon. Friend the Member for Bolton South East (Yasmin Qureshi) for raising this question—a question that could be asked of each and every town and city with a courtroom, because the picture is dire up and down the country. I am glad, however, that the Ministry of Justice got back round the table with representatives from the criminal Bar and engaged with their concerns so that justice could get moving again. However, just a couple of weeks after that strike action ended, the Minister is facing more. It is about the failure of the Common Platform, which is preventing staff from doing their jobs effectively and holding up justice for victims and defendants alike. I welcome to his place the fourth Justice Minister that I have faced across the Dispatch Box. Will he now do what his managers and predecessors have refused to do and pause the further roll-out of this system until he gets it fixed?
I know that the hon. Member has been here longer than anybody I can think of in the Chamber at the moment. He knows the best avenues available to him, and I know that he will already be penning his letter to Sir Charles Walker and the Administration Committee, and I am sure that they will seriously take on board his findings.
On a point of order, Mr Speaker. At Department for Work and Pensions questions yesterday, the Secretary of State challenged the figures that I used about child poverty, asking that I advise where I got them from. That struck me as rather odd, because I got those statistics from her own Department. Today, we hear from the North East Child Poverty Commission that the north-east has overtaken London in terms of having the highest rate of child poverty in the UK, at 38%, up from 37% the previous year—that is 11 children in a classroom of 30.
In 2020-21, the north-east continues to see a longer-term trend, with the region experiencing by far the steepest increases in child poverty in the UK in recent years. One third of the north-east’s parliamentary constituencies now have a child poverty rate of 40% or above.
I wonder whether you, Mr Speaker, have heard from the Secretary of State about whether she has since managed to read her own statistics, and if she plans a statement on the worsening of child poverty in my region?
As the hon. Gentleman knows, I am not responsible for the Minister’s answers, nor would I wish to be. I thank him for letting me know that he was going to ask the question. I have had no notice of any statement coming forward on the subject he mentions but, as I say, he has certainly put it on record and I know that people will be listening on the Government side. I am sure that, in future, those points can be corrected if the hon. Gentleman is right. He has put forward the stats and he has put forward his case. I am sure they will be checked and the House will ensure that we have the right record of statistics going forward.
(2 years, 3 months ago)
Commons ChamberLet me remind the Minister that 67% of a small number is still a small number. The recent criminal justice joint inspection report into pandemic recovery noted:
“The prospect of waiting years for justice is likely to be traumatising for victims and their families and has a damaging impact on justice itself, making it more likely that victims will drop out of cases”.
We know that the Ministry has secured funding to reduce the backlog to 53,000 cases by 2025, but that number still dwarfs pre-pandemic figures. We all want timely justice for defendants and victims, so can the Minister confirm how long on average people are waiting for their cases to come to court, and what impact the additional funding will have on cutting those waiting times?
(2 years, 9 months ago)
Commons Chamber(3 years, 6 months ago)
Commons ChamberThe connection to the hon. Member for Stockport (Navendu Mishra) who has the next question has failed so we will go straight to the shadow Minister.
Labour Members share the horror of the legal profession at the fact that the already huge court backlog has increased by 35% since the start of the pandemic, and now includes more than 53,000 Crown Court cases. Lawyers want to keep the justice system open and moving, but it is wrong to ask them to pay for years of Tory cuts by putting their health and safety at risk. Like everyone else they are anxious, and given the hundreds of covid cases across the court estate, as revealed in answers to my parliamentary questions, we should not be surprised. More than 100 new cases were reported in just eight days in January alone. Sadly, we hear that precautions vary considerably across the country, so what new measures will the Minister take in the estate to ensure that all courts operate best practice, and provide those who use them with a guarantee that they will be safe?
(3 years, 8 months ago)
Commons ChamberThe Lord Chancellor was keen to talk up his court successes in his statement on Thursday, yet the situation remains dire in many parts of his Department, according to answers to my written questions. The number of effective trials was down from 19,000 in 2010 to 12,000 last year, and that was before covid; expenditure on recorder sitting days has halved from £19 million to less than £10 million since 2018; and disposals in care proceedings within the legally required 26 weeks have collapsed to just 34%. This is about people’s lives, so will the Minister outline when victims, witnesses and families will get the court system they desperately need and justice will be properly served?
(4 years, 6 months ago)
Commons ChamberOn a point of order, Mr Speaker. It is timely that Health Ministers are in the Chamber, because there have been two important announcements this week in connection with the dangers of smoking. One was an attempt by a tobacco manufacturer to interfere in the development of public health policy; the other was the projection by Cancer Research UK that the Government would miss their target of reducing adult smoking levels to 5%, and would take a further seven years to reach it. Are you aware, Mr Speaker, whether any Minister from the Department of Health and Social Care is planning to make a statement on that projection, and on the Government’s attitude to tobacco companies trying to muscle in on public health policy?
I can assure the hon. Gentleman that no one has been in touch to tell me that any Minister is going to make a statement, but the good news is that the Secretary of State for Health and Social Care has certainly heard his plea.
(6 years, 1 month ago)
Commons ChamberIt is up to the Minister. He said that he wanted to speak for only one minute.
It was the Minister who suggested that he wanted only one minute in which to sum up. The fact that we are late does not matter to me.
Let me tease the Minister on three matters. One, what are we going to do about the “tab houses”? Two, what is his position on cigarette pack inserts? Three, what is he doing to do about the fact that mass media campaign funding has been cut by 90% in the last 10 years? We need that funding in order to be effective.
(7 years, 6 months ago)
Commons ChamberWe have had a good, almost conciliatory debate, but we have also rightly focused on the opportunity that the Government have missed to bring forward an appropriate Bill that addresses the issues surrounding pensions. The Chamber again heard from my hon. Friend the Member for Swansea East (Carolyn Harris) on the plight of the thousands of WASPI women left stranded by this Tory Government, who selfishly and needlessly accelerated the state pension age, leaving many women no time to make alternative provision for themselves in their 60s. If one line was added to the Bill to extend pension credit to the WASPI women—that is our policy—it would have gone a long way to pacifying us this evening.
The hon. Gentleman has got his mention in; let’s stick to the Bill.
So I suppose, Mr Deputy Speaker, that you do not want me to mention the fact that we do not have clarity on the state pension age, either. The Government have already said that they do not have a long-term commitment to the triple lock; we would like to know what their plans are, both on that and, more importantly, for many of our people who work in the most demanding physical jobs, and suffer ill health much earlier in life than those who spend their life behind a desk.
I will not test your patience any further, Mr Deputy Speaker, but we have drifted away from the principles of an effective pension scheme to a muddled view of saving for retirement. Indeed, such is the political hostility towards pensions that they do not get a mention in the latest leaflet produced by the Treasury, “Ways to save in 2017”. There are lots of mentions of different types of individual savings account—cash, junior, help to buy, lifetime and stocks and shares—but not one mention of the word “pension”, or of auto-enrolment.
Although this narrow Bill needs improvement, it is much needed, and we will work with the Government in Committee to help make it fully fit for purpose. Labour is proud of its achievements with auto-enrolment, but we are a long way from finishing the job. The sluggish response of this Government and the last to the development of a regulatory framework for auto-enrolment has left people’s savings at risk for too long. Given what the shadow Secretary of State, my hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams), said, our priorities for improving the Bill should be fairly obvious. There should be transparency: members must know what choices they are making, and how much those choices cost—and I mean all the costs in the investment chain. There seem to be conciliatory thoughts on that on both sides of the Chamber.
We also need improved governance and a pension system in which members are more engaged. I am glad to read in the media and published reports that in many cases the regulators and the Government agree with the Opposition. As I said on 9 January, I welcome the one-word commitment from the Under-Secretary of State for Pensions to implement the FCA recommendations to improve transparency in the pensions industry. We will hold them to account for that.
I repeat that members must know how much things cost—they must know how much each investment costs and how much transactions cost. It is not good enough simply to say that a default fund is capped at 0.75% and that people should be content. The industry tells us that it is moving towards greater transparency across all its platforms. We will be pleased to see what it comes up with. I have no doubt that we need to help the industry with appropriate legislation.
In the past, pension fund providers and others involved in fund management have often tried to dodge the issues when asked direct questions about costs, including by saying, “You should be happy to reward performance,” when we know that lower costs give a better net performance. Other hon. Members have spoken about that in the debate. They also say, “We are incentivised to manage costs, so when your funds do well, we get a bigger pay-off,” but we know that 80% of asset manager fees are based on just holding members’ money rather than making it perform well. When people realise that the average compensation of an asset manager, from the most junior to the most senior employee, is £225,000, people have the right to know how they are using the scheme’s money.
The Opposition favour a change in reporting to ensure that pension schemes must report to members on the three headings: administration, investment costs and transaction costs.
I know that the Minister values the cost-collection template, which has been negotiated with the Investment Association by the Local Government Pension Scheme Advisory Board. We must encourage its use by all pension providers. I hope the Minister will confirm his support for such an approach for master trusts.
On member governance, all the investment risk lies with the member and not with the sponsor or the provider. There is an argument to be made that, since the pot belongs to the member and the scheme-sponsoring employer bears no investment risk, governance by scheme members should prevail in number over employers. Some companies choose to operate a trust-based defined-contribution scheme, but most newer auto-enrolled members will not find themselves saving into one. Instead, the vast majority of people will find themselves saving into a master trust or a group personal pension arrangement. In such schemes, member representation on governance boards is far more rare.
We are in a new landscape—we have lost member-nominated trustees, which we had believed to be a clear fiduciary principle. A member perspective adds diversity, which prevents the risk of group-think within boards. Ian Pittaway, chair of the Association of Professional Pension Trustees, has said:
“They’re brilliant in so many areas, they ask difficult questions that other people might be frightened to ask, they’re great on member issues, whether it’s changing benefits of a death-in-service case or something like that.”
In the defined-benefit world, as long as the scheme was well governed and well administered, the member would end up with a reasonable replacement ratio, but in the defined-contribution world, a member’s outcome depends on a host of factors that are currently beyond their control.
There may be resistance to member representation from master trusts, with tens of thousands of schemes and hundreds of thousands or even millions of members, but the industry has proved that it is possible. We will address that more in Committee. Whatever the route to better representation, most in the sector agree that it can only be beneficial for the defined-contribution landscape. There is a clear argument and there are clear demands that the Bill is the best place to start. We look forward to working with the Minister to make it happen.
Yes, we could have debated equally if not more important measures in the Bill, but sadly we are not. It could be many years before we get a chance to pass legislation in those areas. The Bill can both protect and empower the people whose money is being invested on their behalf. The Opposition are therefore happy to see the Bill progress to Committee, where we hope the Minister will be open to the improvements I am sure we can make to the Bill.
(13 years, 2 months ago)
Commons ChamberYou have gone on a lot about ideological things, but is it ideologically bonkers to fight for a fair deal for women who have made the sacrifices that you are talking about? They have sacrificed for their country, for their families—
Order. Unfortunately, I am not responsible, so it is not “you”. I am sure the hon. Gentleman did not mean that.
I beg your pardon, Mr Deputy Speaker. Is it “ideological” for us to stick up for women who have had a raw deal through life looking after their families and doing a low-paid job, but who now find out they have to work even longer for a pittance of a pension?
(13 years, 6 months ago)
Commons ChamberThe Prime Minister is the one who promised the north-east that the region would suffer more than most from Tory policies. The Forestry Commission owns 67,000 hectares of forest in the region, more than anywhere else in the country. Does my hon. Friend agree that the Government have abandoned the people of the north-east, and now want to sell or give away their forest heritage and their play places?
Order. Mr Cunningham, everybody quite rightly wants to intervene, but we have six minutes per speaker, and every time someone makes an intervention, another minute is added. All I am bothered about is getting as many Members in as possible. If we are to have interventions, they have to be short and very quick.