Oral Answers to Questions

Emma Reynolds Excerpts

Monday 11th November 2024 Commons Chamber

[Tonia Antoniazzi (Gower) (Lab)]

20. What steps she is taking to increase uptake of pension credit in winter 2024-25.

[The Parliamentary Secretary, His Majesty's Treasury (Emma Reynolds)]

We have launched the next phase of our pension credit campaign on radio, TV and print media, and the Government have written to 120,000 pensioners on housing benefit who may be eligible but are not currently claiming pension credit. After less than five months in government, we are bringing forward the merger of housing benefit and pension credit, which the Conservatives announced 13 years ago but failed to deliver.

[Lewis Atkinson]

Under the previous Conservative Government, many eligible pensioners in Sunderland Central did not receive the pension credit that they were due. When I speak to organisations such as Age UK Sunderland, they tell me that that was often because people did not know how and whether to claim. How many pensioners are now taking up pension credit thanks to the actions taken by this Government?

[Emma Reynolds]

We have seen a 152% increase in pension credit claims since late July, with over 74,000 pension credit claims up to mid-September. We know that many local authorities and, indeed, Members of this House—including me last Thursday—are helping pensioners on low incomes to ascertain whether they are due pension credit.

[Jamie Stone]

There will be people who are eligible for pension credit living in very remote areas, where connectivity is less than great. It is an appalling thought that they might miss out on what they are due. May I suggest to the Department that the way to reach out to those people might be through a database, followed by a mailshot?

[Emma Reynolds]

In addition to merging housing benefit and pension credit, which will help some of the people whom the hon. Gentleman has in mind, the Secretary of State and I have asked the Department to look at what can be done to make the application form simpler. The Department will report back to us by the end of the month, and we will update the House in due course.

[Tonia Antoniazzi]

I welcome the Government’s campaign to get people to sign up for pension credit, and I urge every pensioner in Gower to sign up and attend my pension credit event on 22 November. Does the Minister agree that we should highlight the fact that pensioners who go over the threshold could still be eligible because they receive another benefit, such as attendance allowance, or because higher housing costs are taken into account when applying?

[Emma Reynolds]

Yes, indeed. Assessing somebody for pension credit is a complex procedure, so we urge all those on low incomes to check whether they are eligible. We have seen an increase in the number of people applying online with the help of local authorities, Members of Parliament and charities, and we urge everybody who thinks that they might have an eligible family member to encourage their loved ones to apply.

[Kirsty Blackman (Aberdeen North) (SNP)]

Temperatures are set to drop to zero across Scotland by next weekend. Many pensioners are scared to put on their heating, with the Big Issue reporting a three-month delay in claims for pension credit. Can the Minister let us know what she is doing to ensure that those claims are processed as quickly as possible so that people can get the money into their pockets?

[Emma Reynolds]

I thank the hon. Lady for her question. We want people who are eligible to get support, and we have redeployed 500 staff to process those claims. I can assure her that that is something that we are focused on.

[Mr Speaker]

We come to the shadow Minister.

[Danny Kruger (East Wiltshire) (Con)]

The withdrawal of the winter fuel payment from 10 million households, including 70% of disabled pensioners, is a huge change, as is using pension credit to distribute the benefit to the minority of people who will still get it, yet the Government have rushed this change through without giving their own statutory advisory committee the chance to properly scrutinise it. Ministers have not even responded to the chair of the committee, who wrote to them several weeks ago with suggestions on how to mitigate the effect of the policy. On top of that, they have failed to provide a full impact assessment to show what the effect on poverty would be. Will they finally produce a full impact assessment of this policy, and when will the Minister respond to the chair of the advisory committee?

[Emma Reynolds]

I welcome the hon. Gentleman to his place. In answer to his questions, we have published an equality analysis, which he can find on the Government’s website. Owing to the legislation, we do not have to produce an impact assessment, but there is an equality analysis. I urge him to have a look at that. All I would say to him is that the new Leader of the Opposition argued in 2022 that winter fuel payments should be means-tested. I wonder how the hon. Gentleman might means-test the winter fuel payment, if he had the chance.

[Danny Kruger]

The Minister mentions the equality assessment. That was a high-level equality assessment that was only dragged out of the Government in response to a freedom of information request. The fact is that they are avoiding accountability for this policy and avoiding scrutiny by the House. The Government are saying that the impact of the cut on the poorest pensioners will be mitigated by pension credit, and we have heard from the Minister about the very small numbers who are taking up pension credit in response to this announcement. Their own figures predict that fully a third of eligible pensioners—that is 750,000 of the poorest people in the country—will not get pension credit and will not get the winter fuel payment.

That is what the Government are banking on. That is how they are making the savings that they predict from this policy: by cutting benefits to some of the poorest people in our country—[Interruption.] The Minister shakes her head, so she might want to put me right. Does she want all eligible pensioners to claim pension credit? [Interruption.] The Secretary of State says yes. If she does want that, does she then accept that the Government’s savings from this policy will be completely wiped out?

[Emma Reynolds]

Yes, and no.

[Mr Speaker]

I call the Liberal Democrat spokesperson, Steve Darling.

[Steve Darling (Torbay) (LD)]

On Armistice Day, it is important that we as a Chamber reflect on the Royal British Legion and its “Credit their Service” campaign. This is a campaign to ensure that when benefits are calculated, military compensation is disregarded. In the light of this, will the Secretary of State give serious consideration to disregarding military compensation when calculating pension credit?

[Emma Reynolds]

I associate myself with the hon. Gentleman’s comments and those of my right hon. Friend the Secretary of State. I will look carefully at what the hon. Gentleman has suggested and get back to him.

[Torcuil Crichton (Na h-Eileanan an Iar) (Lab)]

5. What steps she is taking to help reduce levels of poverty.

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[The Parliamentary Secretary, His Majesty's Treasury (Emma Reynolds)]

The last Labour Government lifted more than 1 million pensioners out of poverty, and this Government remain absolutely committed to supporting pensioners. We know that there are low-income pensioners who are not claiming pension credit, and we urge them to apply. This will passport them to receive other benefits too.

[Brendan O'Hara]

These are extremely worrying times for millions of pensioners who simply cannot fathom why one of the first acts of this new Labour Government was to remove their winter fuel payments. The Minister will be aware that last month the SNP Scottish Government opened applications for the pension age disability payment, which could be worth up to £434 a month for pensioners with disabilities or long-term health conditions. It will be piloted in Scotland next year. Will the Minister join me in welcoming this initiative and encouraging those who are eligible to apply for it?

[Emma Reynolds]

It is good to see that the SNP Government are focusing on that issue now, because during their 17 years in government, we have seen increases in pensioner poverty across Scotland.

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

Pensioners in poverty now have just 40 days to apply for the winter fuel payment via the pension credit system. Will the Minister look at extending the deadline so that more people can claim pension credit and get the winter fuel payment?

[Emma Reynolds]

I reassure my hon. Friend that we have redeployed 500 additional staff to process the claims. We are working at pace to process them, but 21 December remains the deadline.

[Samantha Niblett (South Derbyshire) (Lab)]

13. What steps she is taking to improve support for carers.

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[Clive Jones (Wokingham) (LD)]

14. What estimate her Department has made of the number of pensioners eligible for Pension Credit but not claiming it.

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

Estimates for pensioners who are eligible for but not receiving pension credit were published in early October. The estimates show that more than 800,000 pensioners—individual pensioners, not households—are entitled to pension credit but are not claiming it.

[Clive Jones]

As the Minister will know, the Chancellor’s cruel decision to tie winter fuel allowance to pension credit, despite knowing that the uptake of pension credit is very low, will force thousands of vulnerable pensioners to choose heating or eating this winter. With 16,577 pensioners in Wokingham expected to be affected by the cuts, will she extend the deadline to apply for pension credit and consider pledging further support to increase take-up?

[Emma Reynolds]

I refer the hon. Gentleman to my answer to my hon. Friend the Member for York Central (Rachael Maskell): the deadline remains 21 December. Thanks to the Government’s steadfast commitment to the triple lock, more than 12 million pensioners will see their pension increase by more than 4% in April next years, up to £470. Over this Parliament, they will be better off by around £1,900, thanks to the triple lock. Low-income pensioners can also apply for the warm home discount scheme and, thanks to the extension of the household support fund, local authorities can target that support on low-income pensioners. In the longer term, the warm homes plan will transform homes across the country by making them cleaner and cheaper to run.

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

16. What steps she is taking with Cabinet colleagues to reduce levels of child poverty.

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[Alan Gemmell (Central Ayrshire) (Lab)]

18. What progress her Department has made on the pensions review.

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

I am leading the Government’s landmark pensions investment review, which aims to increase pensions investment in the UK economy and improve retirement outcomes for future pensioners. An interim report will be published soon. Phase 2 of the review, which will focus on pension adequacy, will be launched later this year.

[Alan Gemmell]

David Carson and Patricia Kennedy, constituents of mine in Central Ayrshire, face massively reduced pensions payments from their pre-1997 contributions to their Hewlett Packard pension, because current legislation index-links contributions from 1997 only. What assessment has the pensions review made so far of the challenges facing pension schemes, and will the Minister meet me to discuss David and Patricia’s case? The issue affects some hundreds of thousands of people.

[Emma Reynolds]

I thank my hon. Friend for raising that case. I would be very happy meet him, or any other hon. Member who has such cases in their constituency; however, the pensions review will look more at how current pension schemes can improve outcomes for future pensioners. We are looking at driving scale in consolidation of defined contribution pension schemes and local government pension schemes, and at a shift away from cost to value. I know that there is interest in that from across the House, and I hope that we can work on it across the parties.

[Rebecca Smith (South West Devon) (Con)]

21. If she will make an assessment of the potential impact of changes to the eligibility criteria for the winter fuel payment on trends in the level of pensioner poverty.

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

The Government remain absolutely committed to supporting pensioners. We are urging pensioners to check their eligibility for pension credit to ensure that as many people as possible have access to the support to which they are entitled.

[Rebecca Smith]

Ninety-seven-year-old Joyce from my constituency was worried about losing her winter fuel payment, so she contacted my office. It sounds like the Minister has had a similar experience. Fortunately, my team was able to assist Joyce. We ran a full benefits check, and helped her to secure pension credit, and therefore her winter fuel payment entitlement. However, does the Minister think that it is right that the oldest and most vulnerable should have to resort to getting their MP to help them claim pension credit?

[Emma Reynolds]

I am glad to hear that the hon. Lady was able to help her constituent. We are looking at the form, as I mentioned in a previous answer, and we will update the House soon on those developments.

[Sarah Olney (Richmond Park) (LD)]

22. What progress her Department has made on meeting pension credit application targets.

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

The Department does not have a pension credit application target. Published application numbers show that we received around 74,400 pension credit claims in the eight weeks from the end of July to mid-September.

[Sarah Olney]

In the weeks following the Chancellor’s announcements on the winter fuel allowance, the number of pension credit applications doubled, then nearly tripled. Now the DWP is delaying releasing any more data on this subject. I am concerned that the Government know that they will not be able to process the applications on time, and that the information is not being put into the public domain. Will the Minister tell me exactly how many pension credit applications have been submitted since 16 September, and whether the backlog will be cleared before older people start having to make a choice between heating and eating?

[Emma Reynolds]

I gently say to the hon. Lady that we are not delaying the publication of statistics. A new set of statistics will be published soon. As I said in previous answers, we have redeployed 500 additional staff to helping to process pension credit applications. We urge all those who have loved ones who are pensioners, or who are pensioners themselves, to apply if they think that they are eligible.

[Calum Miller (Bicester and Woodstock) (LD)]

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

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[Steve Darling (Torbay) (LD)]

I am sure all Members in this Chamber are aware of the Women Against State Pension Inequality campaign and the parliamentary ombudsman’s findings. Will the Secretary of State commit to making a statement in the House before Christmas on progress with her review of the ombudsman’s report?

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

As the hon. Gentleman will know, the ombudsman took six years to consider a range of complex cases, and we are looking at their complexity. I was the first Minister in six years to meet representatives of the WASPI campaign. We hope to be able to update the House in the coming weeks.

[Paul Davies (Colne Valley) (Lab)]

T5.   The work of unpaid carers is of huge value and is often heroic. A recent report by Carers UK revealed that 42% of those receiving carer’s allowance are struggling financially. I was therefore really pleased by the significant increase in carer’s allowance announced in the Budget. It is the largest increase in decades and will benefit many in my constituency. Does the Minister agree that this change will help mitigate the financial challenges that carers have faced for the past 14 years?

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[Emma Reynolds]

I would suggest a number of things: the warm home discount scheme is available for those on low incomes, including pensions; we have extended the household support fund that local authorities can and should use to help people on low incomes; and in the longer term, the warm homes plan will help to make homes across the country more energy efficient and cheaper to heat. I will also say that thanks to the Government’s commitment to the triple lock, pensioners will be about £1,900 better off over this Parliament.

[David Burton-Sampson (Southend West and Leigh) (Lab)]

T9. I agree with the Minister that it is vital for everyone who is eligible for support to claim for it, but what steps is she taking to ensure that claiming for pension credit is as simple as possible?

[Emma Reynolds]

As I said in answer to a previous question, we are looking at the form. Some 90% of applicants now apply online, but we note that the paper form is long and we are considering how we can simplify it.

[Josh Babarinde (Eastbourne) (LD)]

Eastbourne veteran Pauline was awarded military compensation for injuries that she sustained in the service of our country, but she said that that has caused her pension credit entitlement to plummet from £70 to just £10.42 a week. Will the Minister meet me to discuss her case and ensure that no veteran is penalised for their service to our country?

[Emma Reynolds]

The hon. Member is the second person to raise that issue and I happy to meet them both.

[Euan Stainbank (Falkirk) (Lab)]

How many current Department employees cannot receive further sponsorship due to the previous Government’s changes to the skilled worker visa salary threshold?