Oral Answers to Questions

Debate between Alison McGovern and Wendy Chamberlain

Monday 12th May 2025 Commons Chamber

[Alison McGovern]

As I just mentioned, our new jobcentres will create a universal service across Great Britain. We must make those changes to serve young people. My hon. Friend makes an excellent point about the pandemic generation, who deserve much better from us all. I know that his city of Edinburgh is full of chances and opportunities that we cannot let go to waste. Given the role of Edinburgh and Glasgow in our visitor economy, I am sure that he will be interested in the work we are doing with UKHospitality to help more young people to have an opportunity in that great sector.

[Wendy Chamberlain (North East Fife) (LD)]

Struggling to make ends meet, paying bills, buying work appropriate clothing and paying for public transport all affect someone’s ability to get and keep a job. That is just as true for under-25s as it is for anybody else, but the Government continue to maintain a lower rate of universal credit for young people when there is no guarantee that they have financial support from their families. In looking at universal credit, will the Government consider that?

[Alison McGovern]

As the hon. Member will know, we are reviewing universal credit. I am particularly focused on ensuring that young people have a chance before they reach the age of 25. If they are out of work in those first years after leaving school or college, it is absolutely devastating for the rest of their careers. That is why we are making these changes.

Pensions

Debate between Alison McGovern and Wendy Chamberlain

Wednesday 31st January 2024 Commons Chamber

[Alison McGovern (Wirral South) (Lab)]

Hopefully, the House will be relieved to know that I do not intend to repeat the explanation of this order that the Minister has just given. As he said, the statutory instrument addresses the needs of a specific group of pensioners. We support the measure and will therefore obviously support the order. I will just take a very short amount of time to raise a few other related issues.

Further to the debate that we had on the previous order, Madam Deputy Speaker, you will remember that under Labour we saw an historic fall in pensioner poverty. Unfortunately, that has been rising recently, which is alarming after nearly two decades of decline: one in six pensioners are now living in poverty, with the figure rising to one in four among those who are single. I hope the Minister agrees that Britain should be one of the best countries in the world in which to be a pensioner, so the fact that many are still spending their later years in poverty does not reflect well on us.

Labour in power introduced pension credit, ensuring that pensioners’ weekly income reaches a minimum guaranteed level while offering a whole host of benefits, such as free dental and optical treatment. However, as we have discussed many times across the Dispatch Box, despite highly publicised campaigns, statistics released in October show that 40% of those eligible to claim pension credit are still not doing so. Given that I am sure the Minister shares my concern about this matter, will he confirm what more the Government are doing within their powers to make people aware of their potential pension credit entitlements?

Since we have just rehearsed all of the arguments about the cost of living, I thought the Minister might like to take a moment to reflect on what more the Government can do. As we know, social security systems cannot perform their most basic function if entitlements are eroded by inflation or, worse, not taken up at all. Further to the debate that we have just had, we also need to end the speculation about uprating. Pensioners should not be put through that, any more than anyone else should.

As we all know, the key to a good retirement starts in the workplace, when retirement can often seem like a distant concept. We need people to consider their future early on, which was the logic behind automatic enrolment —a massive policy success started under the last Labour Government, which has driven up the number of people saving. However, too many people are still falling through the net.

In September, the Pensions (Extension of Automatic Enrolment) Act 2023 received Royal Assent with cross-party support, giving Ministers the power to abolish the lower earnings limit for contributions, and reducing the age for being automatically enrolled from 22 to 18. At the time, the pensions Minister, the right hon. Member for Sevenoaks (Laura Trott), said:

“We will consult on the detailed implementation at the earliest opportunity”.

We have not had further information about that implementation, and I wanted to give the Minister the opportunity to share any information about what is happening with those powers. I hope that all Members across this House will agree that the extension of auto-enrolment is a good thing, and that we should crack on with it.

I will make one final point: the roll-out of collective defined-contribution schemes, which provide an income for later life while giving members greater certainty about retirement outcomes that they could achieve, is certainly to be welcomed. However, more needs to be done to ensure that the proper framework is in place for companies that express an interest in CDCs, while ensuring that those who can still join a defined-benefit scheme do so. I would be grateful if the Minister commented on that.

[Wendy Chamberlain (North East Fife) (LD)]

Very briefly, the Pensions Minister will know, because there was a Westminster Hall debate on this a couple of weeks ago, about some of the issues experienced with defined-benefit pension schemes with companies such as BP not applying the limits that have been recommended by the trustees. Does the shadow Minister agree that we need to ensure that companies that have made promises to pensioners actually pay out?

[Alison McGovern]

I am not entirely sure whether that intervention was for me, so I will let the Minister respond when he winds up. However, on companies keeping their promises, that seems like one of the basics to me.

As I said before, we support these measures and will not oppose the Government’s proposals, but I would very much welcome the Minister’s comments on the questions I have raised.