Oral Answers to Questions

Emma Reynolds Excerpts

Monday 16th December 2024 Commons Chamber

[Susan Murray (Mid Dunbartonshire) (LD)]

3. What assessment she has made of the potential impact of trends in inflation on pensioners’ living standards.

[The Parliamentary Under-Secretary of State for Work and Pensions (Emma Reynolds)]

Due to the Government’s steadfast commitment to the triple lock, pensioners will see an above-inflation increase of 4.1% in their state pension next year, which means that they will be up to £470 better off—and, over the course of this Parliament, over £1,900 better off.

[Susan Murray]

I thank the Minister for the insight. In Mid Dunbartonshire, nearly a quarter of my constituents are of pension age. Many have placed their hard-earned income into private schemes, yet despite their financial planning, they face the harsh reality that inflation is outstripping the modest yearly increase to their pension, eroding the value of their lifetime of saving. What steps will she take to prevent the erosion in value of private pensions, and to mitigate the problem of the growth in the value of pension funds not being passed on to pension holders?

[Emma Reynolds]

The Chancellor launched a landmark pensions review in July, which I am leading. It has two objectives: to boost returns for future pensioners, so that when they save into private pensions, they get better returns, the likes of which we see in Australia and Canada; and to boost investment in the UK economy.

[Neil Duncan-Jordan (Poole) (Lab)]

The poorest pensioners in our society are those who are eligible for pension credit but do not claim it, and those who are just a few pounds above the threshold and miss out on passported support. Means-testing, by its very nature, is simply not the best way to get help to those who need it most, so will the Minister reconsider the recent decision to means-test the winter fuel allowance?

[Emma Reynolds]

We will not reconsider that decision, because as a result of the £22 billion black hole that we inherited from the Conservative party, we have had to take tough decisions in a very tight fiscal environment. However, my hon. Friend has given me the opportunity to remind people that they have until Saturday to make a pension credit claim, which can be backdated and will passport them to winter fuel payments and other related benefits.

[Mr Speaker]

I call Chris Murray.

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[Rebecca Long Bailey (Salford) (Ind)]

8. What assessment she has made of the adequacy of levels of pension contributions for auto-enrolled pensions for lower earners.

[The Parliamentary Under-Secretary of State for Work and Pensions (Emma Reynolds)]

Due to the introduction of auto-enrolment, which is at least one policy that has cross-party support—it was legislated for by the last Labour Government and was taken forward by the coalition Government—there has been a 92% increase in the number of employees saving into a workplace pension scheme since 2012, which is over 10 million people saving for a pension who were not saving previously.

[Rebecca Long Bailey]

The Minister will be aware that around 10% of people automatically enrolled into workplace pension schemes choose to opt out, often due to low pay and cost of living pressures, leaving them losing out not only on building up their contributions, but on the top-ups of their employers. Would the Minister consider a simple tweak and allow employer contributions, which would have been due in any event, to continue in such opt-out circumstances?

[Emma Reynolds]

I thank my hon. Friend for that question, which is indeed an interesting idea. It is one that was put forward recently by the Institute for Fiscal Studies, and I will consider it. In the pension schemes Bill, which we will introduce next year, low earners with multiple small pots will have those pots consolidated, so that the money works better for them and gives them a better retirement in the future.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister very much for her answers. Both parties—the one now in opposition, and the one in government—have always encouraged people to buy pension contributions in every way they can. However, the fact is that for many people who are low earners, it is not possible to have a pension scheme and at the same time to live, given the age we are in and the cost of living. What can the Minister do to encourage people to do so in a way that does not impact on the money they have coming in?

[Emma Reynolds]

I thank the hon. Member for that question. A number of ideas have been put forward by think-tanks and research institutes. One such idea is a sidecar savings account, which could be used for a pension, but could also have some money set aside for a rainy day should somebody fall into debt. We are considering that. He raises a very important question, because some of those on low incomes sometimes cannot afford to put in those contributions, but there may be a way between opting out and remaining in the scheme, and we are looking at that.

[Tim Farron (Westmorland and Lonsdale) (LD)]

9. What steps her Department is taking to support people newly recognised as refugees into work.

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[Mr Richard Holden (Basildon and Billericay) (Con)]

16. What assessment she has made of the potential impact of means- testing the winter fuel payment on levels of pensioner poverty.

[The Parliamentary Under-Secretary of State for Work and Pensions (Emma Reynolds)]

Under the last Conservative Government, an estimated 880,000 of the poorest pensioners eligible for pension credit were not claiming it. We have launched the biggest ever pension credit awareness campaign and written to 120,000 pensioners on housing benefit, urging them to apply. As a result, claims for pension credit have more than doubled, and those who receive pension credit will also receive winter fuel payments and other related benefits.

[Mr Holden]

Before the last general election, the Labour party suggested that removal of the winter fuel payment would mean an extra 4,000 pensioners a year dying, freezing in poverty. How many will die under the Government’s policy this year?

[Emma Reynolds]

The Government remain absolutely committed to supporting low-income pensioners. We are supporting them through the household support fund, which local authorities can use to help people on the lowest incomes with their bills. The Minister for Energy Consumers, my hon. Friend the Member for Peckham (Miatta Fahnbulleh), has also raised £500 million from energy suppliers to help those most vulnerable consumers in debt. We also have the warm home discount and the warm homes plan to help those on low incomes to heat their homes.

[Euan Stainbank (Falkirk) (Lab)]

Under the Conservatives, billions in pension credit went unclaimed. The burden for driving up claims often lies in fantastic organisations such as Christians Against Poverty, the Falkirk and Clackmannanshire Carers Centre and Citizens Advice Falkirk and Denny, as well as the brilliant Falkirk council welfare benefits team in my constituency. What assurance can the Minister give me that beyond 21 December her Department will work tirelessly to prevent billions in benefits from being left unclaimed?

[Emma Reynolds]

Indeed, we have taken forward the biggest awareness campaign for claiming pension credit that has ever been seen. We are determined that those on the lowest incomes should claim pension credit and be awarded it, which will passport them to winter fuel payments and other related benefits.

[Kirsty Blackman (Aberdeen North) (SNP)]

The Scottish Government are bringing back the winter fuel payment because we are aware what an awful disaster this has been for the Labour Government. People are terrified to switch on their heating. Will the Minister please explain to pensioners living in poverty circumstances but not eligible for pension credit what they should do this winter? Should they just wear an extra blanket?

[Emma Reynolds]

The Scottish Government have been given a record settlement in the recent Budget. As the hon. Member knows, winter fuel payments and other benefits are devolved to the Scottish Government.

[Rachael Maskell (York Central) (Lab/Co-op)]

I thank the residents of York for donating to my thermals collection on Saturday, but I know that older people in the city of York will really struggle this winter. Will the Minister say how many people across the country have signed up to pension credit since July and what additional steps will be taken to ensure that those who miss the 21 December deadline will still be able to get support to keep warm this winter?

[Emma Reynolds]

Claims have more than doubled—they have increased by 145% since late July—and we are working at pace to process those claims. We have deployed an additional 500 staff to ensure that those on the lowest incomes get the pension credit that they need.

[Alison Griffiths (Bognor Regis and Littlehampton) (Con)]

T1.   If she will make a statement on her departmental responsibilities.

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[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

T6. Many of my more senior constituents are concerned about their finances and winter fuel payments, especially those just above the threshold. In Slough, 1,688 households are currently eligible for pension credit but not claiming this vital benefit, so what steps is the Department taking to increase the uptake and ensure that those who are not eligible are not left out in the cold?

[The Parliamentary Under-Secretary of State for Work and Pensions (Emma Reynolds)]

I place on record my thanks to the 160 local authorities that have worked with the Department for Work and Pensions to raise awareness of applying for pension credit, and also to the various charities around the country that have worked with us. The number of people claiming pension credit has doubled—a record number—and we are processing those claims at pace.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

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[Peter Swallow (Bracknell) (Lab)]

T8. My constituent Gary has seen his real-terms income fall because the pension he built up before 1997 in a defined-benefit scheme is not subject to indexation, even though 80% of defined-benefit schemes are in surplus. Will my right hon. Friend ask the Pensions Regulator to look at this issue?

[Emma Reynolds]

I thank my hon. Friend for representing the concerns of his constituent. The Department is working closely with the Pensions Regulator. We are looking to gather information on the number of schemes that provide discretionary increases on pre-1997 benefits and those that do not. At the moment, the trustees of those schemes have discretion over the decision to index those benefits.

[Mr Andrew Snowden (Fylde) (Con)]

T2. Over the weekend, James Reed, the chief executive of one of the UK’s largest recruiters, said that job vacancies are down 26% compared with the same period last year, which should be a red-light warning that higher unemployment and recession are just around the corner. Will the Secretary of State plead with the Chancellor to reverse the jobs national insurance tax raid that is devastating employment figures before that warning becomes a reality?

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[Emma Reynolds]

There are unfortunately many such cases in which people are preyed on by scammers. I would be happy to meet my hon. Friend to discuss the case further.

[Sir Desmond Swayne (New Forest West) (Con)]

T3. Why did the Office for Budget Responsibility estimate that the Budget would cost 50,000 jobs?

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[Seamus Logan (Aberdeenshire North and Moray East) (SNP)]

T4. On 4 December, my hon. Friend the Member for Moray West, Nairn and Strathspey (Graham Leadbitter) asked the Prime Minister about the WASPI—Women Against State Pension Inequality Campaign—women, and was told that the Government were working “at pace”. Since then, 1,400 or 1,500 more women have died without justice or compensation. Will the Minister tell us what working “at pace” means and give us a timeline?

[Emma Reynolds]

I was the first Minister for eight years to meet the WASPI campaigners to listen to their concerns. The ombudsman took six years to investigate six cases. We are working at pace on this issue. We hope to come to the House soon—if the hon. Gentleman will listen to my answer—to update him and the public on what we will do next.

[Mr Richard Quigley (Isle of Wight West) (Lab)]

Young people in supported housing, including in my constituency, effectively pay a marginal rate of tax of 55% on their universal credit when they start work, meaning that earnings of just £133 a week see their housing benefit tapered to nil. That means that work does not pay. Will the Minister look at the economic benefits of reducing that taper and increasing the applicable amount, ensuring that work does pay and improving housing security?