Pensions Uprating (UK Pensioners Living Overseas)

Debate between Charles Walker and Peter Bottomley

Wednesday 11th May 2016 Commons Chamber

[Mr Charles Walker (Broxbourne) (Con)]

I am grateful for being called to speak in this debate. I operate on the principle that I have a contract with my Government and my Government have a contract with me: I work hard; I pay national insurance and I pay my tax, and in return I get a pension. That is a very simple expectation. It shames this Government and successive Governments that they have failed to meet their obligation to people who have chosen to move overseas. As I said in an intervention, where someone chooses to live should have no bearing on their pension entitlement, and it is shameful that Governments continue to argue otherwise.

The Minister said—it was a reasonable debating point—that uprating such pensions would cost £500 million a year, but people are owed that money and have a realistic expectation of receiving it. It is not as though a group of angry, silver-haired men and women were demanding some cash without having made any contribution. They deserve this cash precisely because they have made a contribution. Is my hon. Friend the Member for Worthing West (Sir Peter Bottomley) seeking to intervene? He has suddenly lurched forward in his seat.

[Sir Peter Bottomley]

I was just agreeing with my hon. Friend.

[Mr Walker]

Oh, that is excellent. It is always nice when someone agrees with me, particularly someone from my own side.

Now that the Minister has resumed his seat, I just want to say that he made great play in his speech of the issue of choice, in that pensioners have a choice about where they live. I am delighted that we have choices in this country—that is the wonderful thing about living in an open and free society—and that we can choose where we live and whom we associate with. However, choice cuts both ways, does it not? Choice also applies to Government. The Government absolutely have the choice to honour their promises to retired people who have made an enormous contribution to this country. Right now, the Government are choosing not to honour those commitments. I conclude this very short speech by saying that the Government should exercise their right to choose by actually choosing to do the right thing.

--- Later in debate ---

[Sir Peter Bottomley (Worthing West) (Con)]

I agree with everything that has been said so far, except what has been said from the Front Bench. That is not to be taken personally by the Minister—we know that his role is to say what the Government have decided not to change.

The issue is that the Government have to change. We ought to start by changing the pension fund for Members of Parliament so that any Member of Parliament who goes to live in one of the countries on the frozen list does not get a pension at all or, if they do, it is not uprated in line with inflation. Why is it that the actuaries who do the calculations for the Government can take their second state pension—their work pension—abroad to any island in the Caribbean, and know that it will be uprated with inflation? Why is it that if they move to the Isle of Skye, the Isle of Wight, the Isle of Ely, or possibly even to Dubai—

[Mr Charles Walker]

The Isle of Thanet.

[Sir Peter Bottomley]

Indeed—I am grateful to my hon. Friend. I pay tribute to him, to the hon. Member for Vauxhall (Kate Hoey) and to others who, in advance of the welcome efforts from the Scottish National party, have followed the efforts of John Markham and his predecessors—he was not the first to fight this battle, although I hope he will be the last.

Why is it such an arbitrary collection of countries? I believe that a time will come when this Government find that a Commonwealth Heads of Government meeting is dominated, justifiably, by representatives of the main countries, where the more than half a million pensioners with frozen pensions live, asking the head of our Government why it is that a Minister can sit on the Front Bench and say—these are not precisely the Minister’s words—that we should not worry too much, because if the person really needs money they can get it from social security in the country they live in. That may be true in Australia, but it does not apply to the person who served in the civil service in Southern Rhodesia and stayed on in Zimbabwe, where we can now find billion dollar notes because of the previous inflation—heaven knows what will come from the present situation. That person has no option. That is not fair or right.

The politics mean that this change will come in time. It is a question of when and how. I suspect at some stage in the future—I hope still to be in the House when it happens; I do not intend to go on forever but I intend to go on for quite some time—the full uprating will be applied retrospectively. I understand from John Markham’s team that the first, and possibly only, step will be a partial unfreezing.

We need the Chancellor to understand that, as and when we have the proper plans for the 1.2 million British pensioners overseas to be able to vote—whether in individual constituencies or in some overseas constituency as for France—that will bring in a political power that is missing at the moment. The problem at present is that those who are already overseas tend not to be registered and do not vote—it is a scandal how very few of those who have moved even in the past 15 years are registered to vote and do so—and those who have not yet reached pension age or have not yet gone abroad do not think that this situation really matters to them.

We have 1.2 million British pensioners overseas now, which is 10% of British pensioners. We have to anticipate that there will perhaps be twice as many in the future. The time for the Government to resolve this issue is now. Otherwise, every extra 100,000 British pensioners abroad will mean about 50,000 in a country where their pension will be frozen, and the Government will then start to say that the cost is going up.

The alternative, of course, is for the Government to say that they do not think that pensioners overseas should get an uprating to their state pension and that they will renegotiate the agreements they already have with the EU and other countries around the world so that none of the 1.2 million British overseas pensioners will get an increase. That would at least have some logic to it. Perhaps the Minister will say now—or else he could write to me later—whether the Government have asked any country with which we have a reciprocal agreement whether it would like to drop it. I doubt he will be able to confirm that, because I do not think it has happened. Over the past 35 years, since 1981, the Government have simply thought that they do not have to do much about the situation because people are not making a fuss about it. Well, the job of this House of Commons is to make a fuss about it.

I could go on for quite some time, but I will put it this way. I do not want my Government—this Government or any alternative Government—to go on giving to the Minister in the Department for Work and Pensions the sort of points in their brief that the Minister has been given today and so has given to us. The arguments—not the Minister—are weak and insubstantial. They do not take us any further forward or provide a resolution. They just say, “We’re going to be stick-in-the-muds, because in 1981 we got away with it and nobody noticed.” More than half a million people, in countries that have mostly associated with this country, in war and peace, prosperity and difficulty, are being denied the increases that everyone else takes for granted, not just in this country but around the world.

I pay tribute to the hon. Member for Ross, Skye and Lochaber (Ian Blackford) for bringing the issue forward for debate. I thank the Backbench Business Committee. I hope that the Minister will forgive me for the way in which I put some of my points, which are not personal in any way at all. I hope that he will report back that this House and this country do not believe in unfairness. Some of us think that we were elected to help the Government to start doing things that are right because they are right, and not just because popular pressure will grow to make them do those things, whether they think they are right or wrong. The reason to do this is that it is right. The time to do it is now. I hope that that message will go clearly through to the Government.