Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what assessment her Department has made of the adequacy of Carer's Allowance in supporting unpaid carers; and whether she plans to increase the rate of that allowance.
Answered by Stephen Timms - Minister of State (Department for Work and Pensions)
This Government continues to protect the value of benefits paid to carers whilst also spending record amounts in real terms.
The Secretary of State undertakes a statutory annual review of benefit and pensions, and the value of Carer’s Allowance is protected by Up-rating it each year in line with the Consumer Prices Index (CPI). The rate of Carer’s Allowance is £81.90 a week in 2024/25, and from April 2025 this will increase to £83.30 a week, subject to Parliamentary processes.
In addition to Carer’s Allowance, carers on low incomes can claim income-related benefits, such as Universal Credit and Pension Credit. These benefits can be paid to carers at a higher rate than those without caring responsibilities through the carer element and the additional amount for carers respectively. Currently, the Universal Credit carer element is £198.31 per monthly assessment period. The additional amount for a carer in Pension Credit is £45.60 a week. These additional amounts are worth around £2400 a year.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, whether she has had discussions with the Leader of the House on scheduling a parliamentary debate on compensation for women affected by changes to the state pension age.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
Sir John Hayes MP (Conservative, South Holland and The Deepings) has secured a Westminster Hall general debate on the topic of ‘Compensation for women affected by changes to the State Pension age’ on Wednesday 15 January 2025.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what steps her Department is taking to increase transparency in the (a) management and (b) adjustment of pension schemes.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
Trustees have a fiduciary duty to act in the best interests of the scheme membership, and are required by law to provide members with information about how the scheme has been managed. This includes legal duties about transparency and disclosure of information. There are also clear legal requirements around a trustee or sponsoring employer’s ability to make changes to a pension scheme, including requirements that members must be properly consulted before a change is made if it will affect their benefit rights.
The Pensions Regulator has powers to investigate and take the necessary action if there is evidence these obligations are not being met.
The Pensions Regulator’s 2024 revised General Code of Practice sets out detailed requirements which all occupational pension schemes are expected to follow in order to maintain an effective system of governance.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what recent assessment her Department has made of the potential financial impact of uprating the pensions of British pensioners overseas whose state pensions are currently frozen.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
No assessment has been made.
The UK's policy on the up-rating of the UK State Pension for recipients living overseas is a longstanding one. The UK State Pension is payable worldwide and is uprated abroad where we have a legal requirement to do so, for example in countries with which we have a reciprocal agreement that provides for up-rating.
Up-rating is based on levels of earnings growth and price inflation in the UK which has no direct relevance where the pensioner is resident overseas.
Over many years, priority is given to those living in the United Kingdom when drawing up expenditure plans for additional pensioner benefits.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what assessment her Department has made of the implications for her policies of the differences in the amounts received by recipients of the old and new State Pension.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
We are absolutely committed to supporting pensioners and giving them the dignity and security they deserve in retirement.
It is not possible to make direct, like for like comparisons between State Pension amounts received under the pre 2016 State Pension system and the new State Pension. Under both systems, the amount people are entitled to varies according to their National Insurance record. This is reflected in the average amounts that people receive.
Through our commitment to protect the Triple Lock, over 12 million pensioners will benefit, with many expected to see their State Pension increase by around a thousand pounds over the next five years.
Asked by: Angus MacDonald (Liberal Democrat - Inverness, Skye and West Ross-shire)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what steps her Department is taking to ensure that people over the age of 65 receive adequate financial support through the State Pension.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
We are absolutely committed to supporting pensioners and giving them the dignity and security they deserve in retirement.
The Government is committed to the Triple Lock, which means that in April 2025, the basic and new State pension will increase by the higher of the growth in average earnings, price increases or 2.5%.
Over 12 million pensioners will benefit through our commitment to protect the Triple Lock. Over the course of this parliament, the full yearly rate of the new State Pension is forecast to increase by around £1,700.