Employment: Disabled People

Baroness Altmann Excerpts

Monday 6th March 2023 Lords Chamber

[Viscount Younger of Leckie (Con)]

Yes, indeed, I am aware of the question. Although I do not have an answer to that point, I will certainly write to the noble Baroness about it. I am not sure that she has asked it three times, but maybe she did so with my predecessor.

[Baroness Altmann (Con)]

My Lords, employment figures show that a significant number of older people have left the labour market. There is a large differential in healthy life expectancy across the country. Many people in their fifties and sixties are not well. Some may have left work due to ill health or disability but would be able to work part time. What more can the Government do to encourage flexible working to provide more help in this area?

[Viscount Younger of Leckie (Con)]

As my noble friend will know, all employees have the legal right to request flexible working provided they have worked for the same employer for at least 26 weeks. As she will know, under the Equality Act, employers must make reasonable adjustments to ensure that workers with disabilities are not substantially disadvantaged when doing their jobs. This could include a flexible working arrangement; for example, a change to the timing, hours or location of work. I assure her that in December 2022 the Government responded to a consultation that considered changes to this legislation to provide employees with better access to flexible working arrangements.

Pensions Dashboards (Prohibition of Indemnification) Bill

Baroness Altmann Excerpts

2nd reading
Friday 3rd March 2023 Lords Chamber

[Baroness Altmann (Con)]

My Lords, I congratulate my noble friend Lord Young on his excellent introduction and sponsorship of this important but limited Bill. I also congratulate our honourable friend Mary Robinson on introducing it in the other place. I am delighted that the Government and my noble friends on the Front Bench are supporting this Bill.

As my noble friend Lord Young has explained, the pensions dashboard should be, and I hope will be, an important element of the pensions landscape for ordinary people who have pensions savings and perhaps wish to know more about what they have in their pension fund. Given the complexities of pensions, and even with contributions going into them, so many people do not really understand or know quite how much money is going in on their behalf or how much is accumulating for them. So there is a job of work to do on financial education.

What is so important is that, once people can see all their pension information, they can be assured that the system in place to oversee the dashboards protects them. This Bill is an added element of the armoury that is so important in ensuring that rogue operators of a pensions dashboard would not be able to cover up their mistakes or pay for their mistakes by taking money out of individuals’ pension funds. It is hard to see how someone would argue against the measures in the Bill, which simply will mean that, if the person providing the dashboard or responsible for the dashboard is fined by the regulator for doing something against the rules, they cannot just take money out of the ordinary customers’ pension funds but would have to pay it themselves. Although my noble friend considers the penalties significant, one might argue whether a £5,000 fine, or even a £50,000 fine for a corporate, is sufficient to deter wrongdoing. I think the level of penalties is applicable across pensions and will, I hope, be sufficient to ensure that we have a safe system.

I have given my noble friend notice of a few questions I have about the dashboard, which are very important in terms of the programme itself, especially after the announcement yesterday by our honourable friend Laura Trott, the Pensions Minister, that the dashboard programme is going to be reset—whatever that might mean; we will find out soon.

The first question, which relates to the clear need to delay the introduction of this long-awaited measure, is on the security of Verify, or its alternative system, which is designed to protect members’ data. I do not know if my noble friend could update the House on that. Some of the problems were due to what we have learned recently about the errors in state pension records, especially for women, where many women have found that the information is incorrect and, in some cases, has been for many years—they were already in retirement and still had not had the correct amount. How is the department getting on with its correction exercise?

The other concern might be around the records and readiness of public sector pension schemes to connect to the dashboards. With the McCloud remedy needing to be implemented, there are going to be significant administration issues. Could my noble friend give us any comfort on that or an indication of timescales? I hope he can assure us that at least the Nest Pensions fund is ready for connection. That is a very large one, set up by the Government to cater for low-paid workers and people with small amounts of pension.

Finally, I ask for clarity from my noble friend on an issue I have raised so many times in this House, and have tried to insert in the legislation as it has been going through. What is the status of the checks on the accuracy of all pensions data? I understand that the fines we are discussing may be imposed if people fail to connect to a dashboard or do not have a service that works properly on the dashboard, but are there also fines and penalties for people who load incorrect data? It is not just about loading the information. Is there any requirement in law—and who would it fall upon and what would be the penalties for failure—to ensure that the pension information for each person has been checked and verified and is as accurate as that process could produce?

Overall, I welcome the Bill and am pleased that the Government are supporting it. I wish it safe, quick passage through the House.

Bereavement Benefits (Remedial) Order 2022

Baroness Altmann Excerpts

Tuesday 17th January 2023 Grand Committee

I have only one question for the Minister, about something I raised with his predecessor and her officials when she had a meeting on this subject. How will potential beneficiaries get to know that they are entitled to this benefit? The lady who got in touch with me decided to take a parliamentary route so has obviously seen every twist and turn and will know to apply, but there must be many people who simply accepted that they were not eligible and had no idea that this whole debate was going on, change would come and they were potentially entitled to a substantial lump-sum payment. I would be grateful for any further information that the Minister can give me on how this will be publicised, including what the interaction with citizens advice bureaux and MPs will be, to ensure that everyone who has not been able to claim this benefit from 2018 will now be able to do so.

[Baroness Altmann (Con)]

My Lords, I too very much welcome this order. I am most grateful to my noble friend the Minister for his excellent introduction and explanation.

Enabling co-habiting bereaved partners to be treated the same way as those who are legally married in claiming the widowed parent’s allowance or bereavement support payments is something for which I think there is unanimous support. Indeed, I have found it extraordinarily difficult to justify denying these payments to cohabiting couples in the past when, in other tax and benefit calculations, there is no differentiation in this way; often, that can be to their financial detriment. This order is most welcome.

Echoing the words of the noble Baroness, Lady Hayman, I pay tribute to my noble friend Lady Stedman-Scott and welcome my noble friend Lord Younger to his position. I am most grateful to the Low Incomes Tax Reform Group for its briefing and the work it has been doing on this change and want to raise a few issues relating to the potential tax and benefit consequences of surviving partners receiving backdated lump-sum payments pursuant to this order. If the Minister does not have the answers today, I am happy for him to write to me.

The first issue relates specifically to the widowed parent’s allowance, as this benefit is taxable, unlike bereavement support payments. Lump-sum back payments could well give rise to tax demands for the recipients, when they are applied to past tax years for which they were due. In many cases, recipients are unlikely to have a tax adviser to help them look back over past years. They may have spent the money and, as a consequence of this order, face sudden tax demands and penalties for which they are unprepared. The documents accompanying this order state that the DWP will flag cases to HMRC, but how will this work in practice? Could it give rise to a potential problem for the claimants which, after all the years they have been waiting for this money, seems to be something to be avoided—if we can?

Paying the lump sums gross runs the risk of the money being spent. What measures can the Government implement in practice to protect claimants? Could my noble friend tell us, for example, how the DWP might work with the Treasury to jointly identify those who may be affected, perhaps by using national insurance numbers to link up records, and help people to understand how much tax they need to pay? The JCHR recommends that recipients should be clearly reminded, but might my noble friend consider going further and, perhaps, more proactively involving MoneyHelper or some other direct communication that clearly warns that tax may be due on this money, so that it does not come as a surprise?

The second issue relates to recipients of back payments who are on means-tested benefits. I welcome my noble friend’s confirmation that the lump sums resulting from this order will indeed be disregarded, but I hope he can also reassure us on a point that has been raised—it may already have been catered for—about whether, as I hope, there is a sensitive interpretation of the deliberate deprivation of capital rules. People who suddenly have a change in lifestyle because they have received a lump sum that they should have had over a period should not then be considered as deliberately depriving themselves of capital or should not lose out in some other way.

How will backdated lump-sum awards be treated for tax credits? I thought I heard my noble friend say that these are disregarded for universal credit and means-tested benefits, but is that the same for tax credits? I suspect it is not, from listening to my noble friend. It seems wholly unfair for the DWP to treat the payments as capital and disregard the income, other than that relating to the current year, when HMRC treats them as income in that year for the purpose of tax credits.

I know that tax credit legislation is complicated, and it refers to the amount of widowed parent’s allowance being payable. That may be what is driving some of this, but as this relates to past years, it was actually payable previously rather than being—one could argue—payable today. It seems like a grey area. I wonder if the Government might consider building a specific income disregard into regulations if the current position cannot be remedied.

Finally, I echo the comments of the noble Baroness, Lady Hayman, on the importance of reaching out to potential claimants, particularly as there is a time limit, to ensure that people know that they can claim and come forward with their claims. This could be through some national advertising campaign, or maybe the Government already have a database with some indication of cohabiting couples or past claimants who were turned down who can be contacted. Overall, I very much welcome this order and thank my noble friend for his introduction.

[Lord Davies of Brixton (Lab)]

My Lords, I thank the noble Viscount for his useful introduction and give a more general welcome; I suspect that we will be endlessly discussing a series of regulations over the coming months. I thank the noble Baroness, Lady Hayman, for reminding us that there are people involved here. It is easy when you just have a printed set of regulations to think it is just shuffling paper, but there are real people out there who will benefit from these changes. Clearly, we have to welcome that.

Part of the problem is—I take the points raised by the noble Baroness—the mechanics of how this is operated: not what is set out in the regulations but how it will be applied in practice by the officials involved. It should be done as sensitively and practically as possible. I am particularly interested in taxation and how tax is applied to these payments. This is a particular problem which is going to get bigger, and we will be discussing it again. It is a result of the fact that, for all intents and purposes, state benefits are outside the PAYE system.

The problem is that we know the personal allowance will be frozen for a number of years, at a time when inflation is at high levels. With benefits tied to inflation and a frozen personal allowance, more and more pensioners are going to be dragged into the PAYE system on relatively limited amounts of non-state pension income, which will have to be used to pay the tax, potentially, on their state pension. Many people have state pensions in excess of the personal allowance given their credits under SERPS. I think this is going to be a growing problem. It is one I hope the DWP will be able to discuss with HMRC.

My personal situation is that I suffer from this. I have a pretty good state pension and I have to pay tax on quite a large slice of that income out of other income. I manage it because I have the resources to do so, but people on the margin are going to find it increasingly difficult. The example mentioned is one where the closest co-operation between DWP and HMRC is crucial. Politically, it would be advantageous to get the situation sorted, because it will lead to a lot of concern and debate.

My final point relates to the evidence requirements for cohabitation. Most rules applied in the social security sphere about cohabitation tend to be there to take away benefits rather than grant them. Will the department apply the same rules that it applies when it comes to means-tested benefits about cohabitation, or will there be a separate set of rules? If there is a separate set of rules, is there a possibility that it will work against the individual at both ends? To just put in the Explanatory Memorandum that the evidence requirements will be produced “in due course” rather misses the sharp end of this legislation. How it works in practice will depend on the evidence requirements, and it would be useful if we could be told a bit more about where the evidence requirements will fit as compared with other examples where cohabitation affects benefits of different sorts.

Covid-19: Work-related Cases

Baroness Altmann Excerpts

Monday 5th July 2021 Lords Chamber

[Baroness Stedman-Scott (Con)]

There have been cuts to the budget in the past. That has been rectified and an increased budget has been put in place, as has an increased resourcing budget. As of the end of April, it had 2,670 staff. There has been an extra £14.2 million available to the HSE on top of its regular government funding. Additional funding has enabled it to continue to inspect significantly more workplaces.

[Baroness Altmann (Con)]

My Lords, I welcome the extra funding for the HSE. I hope that noble Lords will recognise the difficulty, with a widespread pandemic, of identifying whether a particular infection is caused in one setting or another. Therefore, I would be grateful if my noble friend might give a little more information on the role that the HSE has played during the pandemic.

[Baroness Stedman-Scott (Con)]

The HSE has been really busy and proactive during the pandemic in three key areas: regulating, by targeting businesses and organisations, to prevent workplace transmission; working with other government departments, developing, assisting and promulgating policy guidance and research; and providing other workplace regulatory functions, including market surveillance to ensure a safe supply chain.

Pension Credit

Baroness Altmann Excerpts

Monday 8th March 2021 Lords Chamber

[Baroness Stedman-Scott (Con)]

I will certainly take the suggestion of a review of benefits back to the department. I am afraid that I will have to write to the noble Lord about the issue of non-take-up as far as the budget is concerned.

[Baroness Altmann (Con)]

My Lords, I am delighted that the Government have included information about pension credit when writing to pensioners about their state pension increases. Will my noble friend tell the House whether that includes mention of the entitlement to all the other benefits that are passported to by pension credit? Will she confirm, if necessary in writing, whether my estimate of around a further £8,000 a year is potentially available to pensioners on pension credit—they may be getting very little of that benefit—in council tax, housing benefit and, indeed, £140 off their electricity bill in warm home discounts, which also suggests that the electricity companies may have some obligation to help on pension credit take-up?

[Baroness Stedman-Scott (Con)]

On the last point that the noble Baroness raises, I am happy to go back and find out the information. I will write to her and place a copy of my letter in the Library. I emphasise that our meeting with stakeholders in early May will include energy companies. I will certainly take her idea back to the department.

Commonwealth Countries: Reciprocal Pension Agreements

Baroness Altmann Excerpts

Monday 1st March 2021 Lords Chamber

[The Lord Speaker (Lord Fowler)]

I will call the noble Lord, Lord Randall, one more time. He is not there, so I call the noble Baroness, Lady Altmann, to ask her question.

[Baroness Altmann (Con)]

My Lords, I understand that the Government are in talks with Canada on possible reciprocal arrangements for state pensions uprating. Can my noble friend tell the House whether they are in discussion with any other countries on this issue, including those in the EEA, EFTA and the EU?

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Stedman-Scott) (Con)]

The Government are currently negotiating social security agreements with the EEA and the EFTA countries—Iceland, Norway, Liechtenstein and Switzerland—which aim to broadly mirror the new agreement with the EU. The UK state pension has been uprated in these countries as part of the long-standing provision which was in EU law before the UK left the EU, and the Government are seeking to continue state pension uprating for those in scope of the new arrangements. The Government are not in discussion with any other countries on reciprocal arrangements for pensions uprating.

Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2021

Baroness Altmann Excerpts

Thursday 25th February 2021 Lords Chamber

[Baroness Altmann (Con)]

My Lords, I congratulate my noble friend on introducing this statutory instrument and on her clear explanation. I continue to welcome the success of auto-enrolment in making pension saving the norm across the British workplace. I also congratulate my Government and put on record the tremendous achievement that they have brought forward during the pandemic to insist on maintaining, through furlough, the automatic enrolment pension contributions. I am sure there was a temptation to relax that provision but it is most welcome that the Government have recognised the importance of continuing auto-enrolment uninterrupted, albeit at the furlough level. Will my noble friend comment on whether any measures are planned or in place to widen education and guidance in the workplace to run alongside auto-enrolment, so that people are helped to understand their pensions while they are paying money in?

I also support the aim of good value pensions. Indeed, master trust consolidation is aimed at helping in that regard by achieving economies of scale. However, what can we do about data reconciliation and accuracy for past records and future contributions? Is there an appetite within government to make sure that not only are employers required to pay contributions, and that the regulator checks that they are paying them, but that there are proper, regular, mandatory requirements for checking that the amounts being paid on behalf of each worker are correct? At the moment, there are no such checks and we are well aware that even recent auto-enrolment records are not correct. I have concerns that, under GDPR, the data for auto-enrolment may not be being kept for more than four or six years. If my noble friend could write to me on that, that would be fine.

I recognise that the cost of this SI, at £14 million, in the context of overall pension contributions, which are in the region of £38 billion, is not significant. Indeed, the employer/private sector addition of £5 million is not onerous—but the people who benefit from this SI are the higher earners, whose upper threshold has gone from £50,000 to £50,270.

I support the aim of aligning the national insurance lower and upper limits with the automatic enrolment contribution records, making it easier to administer, but, as the noble Baroness, Lady Bowles, pointed out, there remains a major problem for the lowest earners, most of whom are women. More than 1 million are caught up in this problem of net pay schemes, which are, indeed, misleadingly named. They force these lowest earners to pay 25% extra for their pensions. They do not receive less pension, but they have to live on less than they should, and their take-home pay is lower than it should be as a direct consequence of the scheme that their employer chose. These workers are often unaware of this, as, often, are the employers. Can my noble friend let us know when the Pensions Regulator and the Government will act to stop this and when we might find a resolution, as already proposed to the Treasury by the action group that I am a part of? That would at least remedy the injustice faced by these lower earners.

Universal Credit (Transitional Provisions) (Claimants previously entitled to a severe disability premium) Amendment Regulations 2021

Baroness Altmann Excerpts

Thursday 11th February 2021 Lords Chamber

[Baroness Altmann (Con)]

My Lords, it is a pleasure to follow the noble Baroness, Lady Sherlock. This is a most difficult issue and I have every sympathy with my noble friend the Minister and the Government in their efforts to support those who have been affected by the pandemic and urgently need help with living.

I recognise that there are calls for the £20 uplift to be extended to all legacy benefits. However, my suggestion to the Government is that, unless there is the appetite and the funding to extend the £20 to everybody, it seems unwise to commit to a further 12 months of the uplift, as has been called for, given that we are hopeful—I certainly am—that the impact of the pandemic will be behind us to a large degree in 12 months, and we will be into a recovery within the next few months. I would certainly not support any calls for a major one-off lump sum payment to offset the loss of the £20 uplift. I support the Government’s move to add £20 to the existing benefit as a temporary measure in light of the pandemic and its dreadful impacts.

However, I also believe that, in the context of this particular discussion on the severe disability premium and the loss of the EDP as well, it would be worth the Government considering whether a self-care element might be added, as recommended by the Economic Affairs Committee. Also, as the noble Baroness, Lady Sherlock, suggested, can my noble friend the Minister update the House on what is happening with managed migration? To what extent are we seeing success in the Government’s moves to help people back into work and ensure retraining —after all, this is the fundamental rationale for universal credit and the reorganisation of the benefits system? Those who are able to work and are helping people to get back into work are the ones we are trying most to assist in our social security system.

To what extent are we moving away from the extraordinarily complicated layers? Indeed, today’s debate and all the issues we are discussing highlight the extraordinary complexity of the regime, with a bit of benefit for this and a bit of benefit for that and one level of disability and another level of disability. The claimants themselves need financial advice to figure out what benefit they are better off on and what benefit they should be claiming. The noble Baroness, Lady Sherlock, is correct to identify this as a problem, but I hope that we can proceed with the aim of simplifying the benefits system through moving to one payment, with perhaps one or two additions, rather than one or two hundred additions, which can be the case over the entire benefits system.

I am unable to support the regret Motion moved by the noble Baroness. As I have said, I welcome the Government’s efforts—and, I know, those of my noble friend the Minister and the department—to really assist those who are struggling through the pandemic.

Social Security Benefits Up-rating Order 2021

Baroness Altmann Excerpts

Wednesday 10th February 2021 Grand Committee

[Baroness Altmann (Con)]

My Lords, I congratulate my noble friend on introducing these SIs and her very clear explanation. Of course, I welcome the Government’s commitment to protecting the vulnerable and the poorest pensioners. Indeed, it is really important for us to make sure that we protect pensioners properly.

As my noble friend knows, I find it difficult to reconcile the statements and the commitment to the triple lock when the triple lock does not apply properly to either the oldest pensioners or the poorest. The basic state pension is £42 less per week than the new state pension, which is available only to those pensioners not over 70. Pension credit increasing in line with the cash increase in the basic state pension is welcome, and is certainly better than prescribed in legislation, which would see an increase in line with earnings, which could be a fall or no increase at all. However, this still leaves the oldest and poorest pensioners at a disadvantage relative to the youngest pensioners, who have much better protection from the triple lock.

I welcome the fact that these benefits are increasing but urge my noble friend, in line with the comments of the noble Baronesses, Lady Drake and Lady Bowles, to look at whether there is an appetite in the department to ensure that pension credit for the poorest pensioners is covered by the triple lock.

On the subject of pension credit, I acknowledge the point made by the noble Baroness, Lady Drake, about the problem of low take-up and the poorest pensioners not necessarily receiving the free TV licence intended for them because they do not take it up. Does my noble friend agree that there might be merit in encouraging the BBC itself to make sure that there are promotions for increasing take-up of the pension credit?

Pension Schemes Bill [HL]

Baroness Altmann Excerpts

Consideration of Commons amendments & Ping Pong (Hansard) & Ping Pong (Hansard): House of Lords
Tuesday 19th January 2021 Lords Chamber

[The Deputy Speaker (Baroness Garden of Frognal) (LD)]

Noble Lords in the Chamber have indicated that they wish to speak. I call the noble Baroness, Lady Altmann.

[Baroness Altmann (Con)]

My Lords, I congratulate my noble friend the Minister on introducing this group of amendments and particularly thank her, the Bill team officials and the Pensions Regulator for engaging with us in such a collegiate manner. The co-operativeness and openness that have been shown to all noble Lords across the House have been hugely welcomed and already commented upon; I reiterate that this approach has improved the Bill and that this will continue into the future when it comes to the regulations. I congratulate the noble Baroness, Lady Bowles, the noble Lord, Lord Vaux, my noble friend Lord Young of Cookham, as well as the noble Baronesses, Lady Sherlock and Lady Drake, on the way in which we have all been able to co-operate on this important issue.

I briefly express concerns about the MaPS dashboard being sidelined and the data-security issues that may be involved in the dashboard, as well as, importantly, the fairness issues that will be dealt with in regulations of CDC schemes. Having dealt with that, I turn to Motions 4A and 4C. It is important that my noble friend can provide reassurance that scheme-specific approaches that have endured so far will be preserved. As the noble Baroness, Lady Bowles, has outlined—echoed by the noble Baroness, Lady Sherlock—there are issues on which I am confident my noble friend will be able to reassure us.