State Pension Underpayments and Arrears for Women

Debate between Baroness Smith of Basildon and Baroness Stedman-Scott

Monday 21st February 2022 Lords Chamber

[Baroness Stedman-Scott (Con)]

Consistent with other large-scale LEAP exercises, special payments under the DWP discretionary scheme are not routinely made to those who have been underpaid state pension. However, under exceptional circumstances, such as where severe distress has been caused by the way an individual case has been handled, a case may be referred for consideration of a special payment.

On the point that my noble friend raises on social care and the impact of back payments, where a local authority charges a person for their care and support, regulations set limits below which a person’s income and capital must not be reduced by changes. Local authorities may take most of the benefits people receive into account unless it is specifically required to be disregarded by regulations. The responsibility for interpreting and applying the regulations and guidance tests rests with local authorities. I will take the point about legislation back to the department and write to my noble friend.

[Baroness Smith of Basildon (Lab)]

My Lords, that was quite a long response, but I think the short version is no—the Government are not going to make any special arrangements. The point was made very clearly by the noble Baroness, Lady Altmann, that these people, particularly women, were in very straitened circumstances and suffered and paid a high price for not receiving the pension to which they were entitled. Can the Minister reconsider this? This is a case where the Government got it wrong. Surely some special action should be taken to properly correct the errors that were made.

[Baroness Stedman-Scott (Con)]

The noble Baroness makes a very good point. All I can say at the moment is that the Government do not have any plans to change. However, I will take the point back to the department, because it is a very fair one.

Cost of Living

Debate between Baroness Smith of Basildon and Baroness Stedman-Scott

Tuesday 12th October 2021 Lords Chamber

[Baroness Smith of Basildon]

To ask Her Majesty’s Government, following the end of the Universal Credit uplift, increasing energy prices and rising inflation, what steps are they taking to avoid a cost-of-living crisis for households.

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

My Lords, we recognise that there are transitory global pressures on costs, including energy. We are maintaining the energy price cap and helping low-income households with fuel bills, and our new £500 million household support fund provides vulnerable households in England with additional help to cover essential costs this winter.

[Baroness Smith of Basildon (Lab)]

My Lords, is that it? I was expecting a bit more from the noble Baroness. Every home in the country is facing sharply rising costs, with hikes not just in energy bills but in food and fuel prices. A lack of HGV drivers has led to empty supermarket shelves, and there are queues outside petrol stations. Ministers are reported to fear that their Government’s inaction could lead to the country facing “a nightmare Christmas”. Families and businesses are struggling. I know that the Minister is not unsympathetic, but she knows that for some this winter it will be a choice between heating and eating, and for some families it will be a choice between the parents eating and the children eating.

I have two questions for the Minister. First—I heard the Answer she gave but it did not fully answer my Question—what will the Government do to protect, for example, the family of four hit by inflation to the tune of £1,800 by the end of the year, or pensioners having to find an extra £1,000? In addition, given this unfolding cost-of-living crisis, how can she, as a DWP Minister, think that this was an appropriate time to cut universal credit?

[Baroness Stedman-Scott (Con)]

We are quite aware of the difficulties that inflation and rising food and energy costs present. We have introduced this household support fund—I am not being difficult—which is worth £500 million and which covers up to the end of March, which is six months, and, as ever, the Government will continue to assess the situation. That is the best that I can give the noble Baroness right now. On the universal credit uplift, I and others are absolutely aware of the angst and frustration about this decision. I have to repeat myself: it was temporary and it has come to an end. For people who are not able to work, there is one job to do. However, for people who can work, the labour market has never been so optimistic and we must work with them through that.

Pension Protection Fund (Moratorium and Arrangements and Reconstructions for Companies in Financial Difficulty) Regulations 2020

Debate between Baroness Smith of Basildon and Baroness Stedman-Scott

Wednesday 16th September 2020 Lords Chamber

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

My Lords, in moving this Motion I should clarify remarks I made during the debate on these regulations, which took place in Grand Committee on Monday, concerning their application to certain charitable incorporated organisations. Following the making and laying of these regulations, the Department for Digital, Culture, Media and Sport made the Charitable Incorporated Organisations (Insolvency and Dissolution) (Amendment) (No. 2) Regulations 2020, which disapplied Section A51 of the Insolvency Act 1986 in relation to charitable incorporated organisations. Section A51 was cited in the making of the SI before the House, which means that as a result of the DCMS regulations the provisions in this SI have not applied to charitable incorporated organisations since 13 August 2020. This does not affect the validity of the powers used to make these regulations; the powers applied to charitable incorporated organisations at the time this SI was made. Likewise, its application to charitable incorporated organisations until 13 August is not affected.

The legal effect of the DCMS SI is one of implied repeal of the provisions from that date onwards. So far as they apply to charitable incorporated organisations, a legal position, we think, is clear. The Department for Digital, Culture, Media and Sport has since indicated in a memorandum to the Joint Committee on Statutory Instruments its intention to bring forward legislation, at the next available opportunity, to correct the position to that reflected in the regulations before the House today.

[Baroness Smith of Basildon (Lab)]

My Lords, I am grateful to the Minister, but I cannot have been the only one in your Lordships’ House struggling to follow the information she gave to us. I was not 100% clear because she said that the “legal position, we think, is clear”. I do not know whether that means “We are not sure whether it is clear; we only think it is clear”, or whether those who debated this in Committee have been made aware of the information she has brought before your Lordships’ House today.

I have not fully understood the implications of everything she said—I do not know whether other noble Lords have. It may be that it has no material impact, but maybe it does. Before we agree this Motion today, I wonder whether she ought to consult those who were in that Committee so that everyone who debated the regulations is clear that there is no material difference, given the rather lengthy and complex explanation she has given today.

[Baroness Stedman-Scott (Con)]

I am happy to respond to the noble Baroness’s points; this is, indeed, a complex matter. I am confident that the legislation we intend to bring forward at the earliest opportunity will clarify matters, but I will consult with the Members of the Grand Committee to make sure that everybody is clear about the impact of this change.

[The Senior Deputy Speaker (Lord McFall of Alcluith)]

The Question is that the Motion in the name of the noble Baroness, Lady Stedman-Scott, be agreed to. As many—

[Baroness Smith of Basildon (Lab)]

My Lords, I think that the Minister has just said that, before agreeing it, she will take it back to Members to see if they are happy with it because there is some complication. That was the implication of what she said: she was not going to put it forward for a vote today until she had consulted people.

She is checking with the Clerk so I will keep talking for a second while she gets advice. However, I am still not clear. I thought she said she was agreeing to take it back and consult with Members who were on that Committee.

[Baroness Stedman-Scott (Con)]

I am advised that I am not able to withdraw the Motion, but I am quite happy to make sure that people understand exactly what is meant. I beg to move.

--- Later in debate ---

[Baroness Smith of Basildon (Lab)]

My Lords, I will not necessarily push this to a vote at the moment, but I say to the Minister that the reason why she says it cannot be withdrawn is that it comes into force today. If she has not consulted Members of the Committee on something so complex before bringing a Motion to your Lordships’ House today, there is a serious issue here. Are these “made affirmative” regulations, which come into force whether we debate and agree them or not? I am not clear. I have to be honest that I am completely at a loss as to what is happening at the moment, but it seems that there is some question mark over the validity of this and whether it is correct. I may be wrong and everything may be in order. However, it was complex and I did not fully understand what she was putting forward today.

[Baroness Stedman-Scott (Con)]

I advise that they are “made affirmative” and to be dealt with today. I can only reaffirm what I have said: it is a complex matter but I am confident that the legislation we intend to bring forward at the earliest opportunity will clarify matters.