Oral Answers to Questions

Debate between Andrew Bridgen and Steve Webb

Monday 3rd November 2014 Commons Chamber

[Steve Webb]

It is difficult to know which of those dubious assertions to choose from that question. [Interruption.] The hon. Lady asks which one is dubious. She says that 3% of what she calls welfare spending goes to the unemployed—[Interruption]—goes on benefits to the unemployed, so she presumably counts state pensions as welfare spending. I do not.

[Andrew Bridgen (North West Leicestershire) (Con)]

I welcome the news that over the last 12 months we have seen the largest annual fall in unemployment since records began. Does the Minister share my view that the best way out of poverty is through sustainable employment and a regular pay packet—something enjoyed by an extra 847 of my constituents since January 2013?

[Steve Webb]

My hon. Friend is quite right. We know that the risk of a child, for example, being in poverty is three times as great if they are in a workless household rather than a working household. We have almost become blasé about new record falls in unemployment month after month. That is the key to our drive to tackle poverty.

Oral Answers to Questions

Debate between Andrew Bridgen and Steve Webb

Monday 20th May 2013 Commons Chamber

[Steve Webb]

The hon. Gentleman is right that we are asking social tenants to pay £2 a day towards a spare room—something that private tenants had to do under Labour’s local housing allowance scheme. Within Wales, a quarter of all social accommodation is one-bedroom properties. If we can deal with overcrowding and people on the waiting list in Wales, we will be doing the right thing by the people of Wales.

[Andrew Bridgen (North West Leicestershire) (Con)]

I am pleased that £50 million-worth of discretionary housing payments have been made available to ease the transition in difficult cases and to support families. How will the Minister ensure that my constituents are aware of this extra support?

[Steve Webb]

My hon. Friend makes an important point. We need local authorities and social landlords, with which we have been working, to alert tenants to the fact that over £150 million has been made available to local authorities this year to help individuals in hard cases.

Oral Answers to Questions

Debate between Andrew Bridgen and Steve Webb

Monday 11th March 2013 Commons Chamber

[Steve Webb]

The hon. Gentleman is right. When people transfer money from a pension, they must fill in transfer forms. We have established a “scorpion sting in the tail” information campaign, producing very eye-catching literature which people wishing to transfer their money receive before signing on the dotted line. It is a “buyer beware” measure, and is one of a suite of measures that we are taking to crack down on such fraud.

[Andrew Bridgen (North West Leicestershire) (Con)]

Many participants in pension liberation schemes pay extremely high interest rates on any loans that are taken out, and residual funds are invested at the discretion of the trustees, which can lead to insecure or poor investment decisions. Does my hon. Friend agree that that is in no one’s long-term financial interests?

[Steve Webb]

My hon. Friend is right. We are warning people to be extremely wary. In general, they should not get their money out before they reach the age of 55, except in the event of, for instance, terminal illness. Trustees need to be wary, and participants need to be wary. Those who spot fraud should report it, and we will continue to crack down on it.

Oral Answers to Questions

Debate between Andrew Bridgen and Steve Webb

Monday 5th November 2012 Commons Chamber

[Steve Webb]

This is indeed an important issue. I can assure the hon. Gentleman that the Pensions Regulator has engaged during the last 12 months, and continues to engage, with more than 1,100 schemes that are linked to overseas employers. Between April 2010 and August 2012, it has exercised its powers on at least 10 occasions in relation to such schemes.

[Andrew Bridgen (North West Leicestershire) (Con)]

The Minister is aware of a case in my constituency in which the BMI pension fund was placed in a pension protection fund by Lufthansa. In this case, Lufthansa voluntarily paid over £84 million in compensation to the fundholders. However, under current HMRC rules the money is being treated as income, and the lifetime and annual allowance rules are being applied to the compensation. Does my hon. Friend agree that the position is unfair and should be reviewed by HMRC?

[Steve Webb]

I am grateful to my hon. Friend for raising that case. I have corresponded with Treasury colleagues about the issue, and, subject to their consent, I shall be happy to share with him the reply that I have just received.

Oral Answers to Questions

Debate between Andrew Bridgen and Steve Webb

Monday 23rd January 2012 Commons Chamber

[Steve Webb]

Where employers run defined benefits pension schemes, if they are in deficit and have a recovery plan agreed with the Pensions Regulator, there is no obligation on them to overfund above 100%, and there are Inland Revenue rules that affect surpluses, which are still in place.

[Andrew Bridgen (North West Leicestershire) (Con)]

Does my right hon. Friend agree that those well-intentioned but misguided individuals who oppose the introduction of a benefits cap are in serious danger of killing with kindness the very people they seek to help, by condemning them to a lifetime of benefits dependency and worklessness, which the benefits cap will seek to reverse?

Oral Answers to Questions

Debate between Andrew Bridgen and Steve Webb

Monday 24th October 2011 Commons Chamber

[Steve Webb]

I am grateful to the hon. Lady for drawing our attention to the Housing Futures Network research. What she did not quote was the fact that a quarter of respondents said that they were likely to downsize, which presumably means making better use of the housing stock, while 29% said that they would be either quite likely or very likely to move into work or increase their hours, which is a positive response. There are real issues about rent arrears; we are working closely with social landlords to assist, but there will be positive impacts from these policies, which also need to be borne in mind.

[Andrew Bridgen (North West Leicestershire) (Con)]

Hard-working families in my constituency often see families on housing benefit receiving more than they themselves receive as a result of going out to work. Can my hon. Friend confirm that as a result of the new measures it will always pay to work?

[Steve Webb]

My hon. Friend will be aware that we have a range of policies to ensure that it pays to work, my right hon. Friend the Secretary of State's universal credit being central among them. The caps on housing benefit and the limit to the 30th percentile in the private sector are also designed to level the playing field between those in low-paid work and those on benefit.