State Pension Triple Lock

Anne McLaughlin Excerpts

Tuesday 8th November 2022 Commons Chamber

[Mel Stride]

That is a truly constructive intervention because, as my hon. Friend points out, not everybody who would be qualified for that benefit has applied. About 70% of those who we believe are eligible receive pension credit, but 30% do not. My hon. Friend the Minister for Employment did an extraordinarily good job in June in encouraging people to sign up to pension credit, through the campaign that the Department launched, and I believe there was an increase in take-up of 275% due to his efforts. My hon. Friend the Member for Birmingham, Northfield (Gary Sambrook) is right: this is important not just for the benefits that we think of, and the credit itself, worth £3,300, but in terms of recent measures that the Government have announced, the £650 of support, which is available to pensioners only if it is unlocked by access to pension credit. It is an important credit to apply for.

[Anne McLaughlin (Glasgow North East) (SNP)]

The £650 cost of living grant to those on pension credit is great, and would have been a great incentive to get that other 30% to 40% to sign up for pension credit. We know that some people feel that they should not do it, and we need to persuade them. Unfortunately, however, unless someone applied successfully by 19 August, they can no longer get that £650. My campaign to extend that deadline to 31 March has been running for a couple of months, and I have had some positive responses. Will the Minister consider meeting me to talk about the possibility of extending the deadline to the official end of winter, so that we can convince people to take it?

[Mel Stride]

I thank the hon. Lady for that intervention and I recognise the solid and important work that she has done in this area. I can correct her, and hopefully please her, by saying that the deadline is 18 December, because pensions credit can be applied for three months retrospectively, which would bring it into the reference period for the £650 payment.

[Anne McLaughlin]

The 19 December deadline only allows people to get £324. I will be getting my constituents to sign up for that on the basis of the £324, but I am asking whether somebody who applies until the end of March can get the whole amount of £650, which is a bigger incentive than £324.

[Mel Stride]

I thank the hon. Lady for that clarification and I accept the point she makes. I would be happy for the Minister for Pensions to meet her to discuss the issue she has raised.

--- Later in debate ---

[Anne McLaughlin]

Is the hon. Gentleman aware of the work done by Loughborough University that was commissioned by Independent Age? It stated that if everybody who was entitled to pension credit claimed it, that would cost an extra £2 billion. I understand that that is a lot of money, but it also stated that the extra cost to the NHS and social care now is £4 billion, so if we could find a way of making sure that everybody got it, we would put more money into the Treasury’s coffers.

[Kevin Foster]

I do not recognise the statistics from that report, but I welcome the overall thrust of that argument. When we as a Parliament have decided that we want people on a low income to receive a particular type of support, we want them to be able to get that.

I was interested to hear the suggestion that the hon. Member for Glasgow East (David Linden) made about working with banks. An institution that might be slightly easier to work with is post offices, where many people on lower incomes go to collect their pension and do other banking. The Secretary of State, who represents the rural constituency of Central Devon, will be aware of people going to post offices to withdraw the exact cash amounts that they need. Cashpoints mostly operate with multiples of £10 or £20, which may be difficult for someone who has to budget tightly for their bills and spending, whereas at a post office counter they can withdraw amounts literally to the penny. That allows very precise budgeting for those who need it.

This is a welcome debate. I must say that I am interested to hear Opposition Members’ comments on who they expect to oppose the motion. We may hear one of those suspicious shouts of “No!” that are not followed by anyone showing up to vote in the No Lobby.

Pensioners in Torbay put their faith in this Government back in 2019. I believe that they put their faith in a manifesto that offered them a positive choice, and I continue to believe that that is the right basis for us to move forward. I hope to hear next week that we will honour that commitment to them.