Oral Answers to Questions
Emma Reynolds Excerpts(2 days, 16 hours ago)
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Susan Murray (Mid Dunbartonshire) (LD)
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.
Rebecca Long Bailey (Salford) (Ind)
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)
Mr Richard Holden (Basildon and Billericay) (Con)
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)
Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
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.
Peter Swallow (Bracknell) (Lab)
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)
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)
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
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?
Social Security Advisory Committee: Winter Fuel Payment
Emma Reynolds Excerpts(1 month ago)
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Helen Whately (Faversham and Mid Kent) (Con)
(Urgent Question): To ask the Secretary of State for Work and Pensions when she plans to respond to the Social Security Advisory Committee’s letter, published on 17 October 2024, on the means-testing of winter fuel payments.
The Parliamentary Under-Secretary of State for Work and Pensions (Emma Reynolds)
We welcome the letter from the chair of the Social Security Advisory Committee. We were hoping to respond to the letter on the day of the Budget. Regrettably, there has been an unexpected further delay, and we are due to issue the response this week. However, my officials met the committee in August to discuss the regulations, prior to the committee’s formal scrutiny in early September.
I want to explain briefly why it is important to invoke the urgency procedure in this case. We needed to make the necessary Exchequer savings in the current financial year, as the regulations needed to come into force on 16 September. The previous Government left us with a £22 billion black hole, with Treasury reserves spent three times over. The day-to-day departmental spending set out by the previous Government in their spring Budget was not even close to reality. It is now up to us to clear up the mess of the previous Government, so we had to take some difficult decisions, such as means-testing the winter fuel payment, but we remain determined to do everything possible to support the poorest pensioners.
We have taken immediate action to increase the take-up of pension credit, working with charities and local authorities and through a campaign in print and broadcast media. The Government have written to more than 12 million pensioners about the changes to means-testing the winter fuel payment. We have also written to 120,000 pensioners on housing benefit, who could be entitled to pension credit, to encourage them to claim. We have extended the household support fund until March 2026. Thanks to our steadfast commitment to the triple lock, more than 12 million pensioners will see their state pension rise by up to £470 next year, and up to £1,900 over the course of this Parliament. The warm home discount, which we heard about a minute ago, is worth £150 off energy bills for low-income households. The warm homes plan will in the longer term insulate 5 million more homes.
By taking these difficult decisions, we were able to provide a cash injection of £22.6 billion to the NHS budget, which is the largest real-terms growth in day-to-day NHS spending—outside of covid—since 2010. That will bring down waiting times for people across the country, including many pensioners. We are taking the responsible and difficult decisions to clear up the mess of the previous Government, to fix the foundations of our economy and rebuild our public services.
Helen Whately
Thank you, Mr Speaker, for granting this urgent question.
This Government made a choice to take away the winter fuel payment from 10 million pensioners this winter and to rely on the notoriously under-claimed pension credit as a system of means-testing it. That choice will make life harder for pensioners across the country. It will see 750,000 of the poorest pensioners miss out on much-needed help with the cost of heating, and according to the Labour party’s own research, it could lead to 4,000 additional deaths this winter. The Government know that. That is why they have not done an impact assessment. Perhaps it is why, after seven weeks, they still have not responded to the concerns of their own advisory committee.
The committee wrote the Secretary of State a letter containing its concerns about how the policy will affect the poorest people. It said that 70% of disabled pensioners will miss out on their payment this winter, and it suggested expanding the eligibility for winter fuel payments beyond pension credit because the committee knows that the Government’s savings are based on a third of the poorest pensioners missing out. In direct contrast to the Government, the committee said that
“a more detailed assessment is urgently required”,
as colleagues from all parts of the House—including Labour Members—charities and pensioner groups across the country have also said.
Here we are, seven weeks later, and the Secretary of State is yet to even respond to the advisory committee. In fact, she is not even here to answer this urgent question. I ask the Minister: will the Government now, after seven weeks, respond to their own advisory committee? Will they now, after seven weeks, publish a full impact assessment for everyone to see? Does she accept that her Government have got this wrong? Does she recognise that they have negligently underestimated how many people will fall through the cracks? I suspect that deep down she is worried, as I am, about pensioners who cannot afford to heat their homes. I am sure her Secretary of State has been lobbying the Chancellor behind the scenes—perhaps that is where she is right now, instead of being here. Will the hon. Lady go back to her Chancellor one more time and try to make her think again?
Emma Reynolds
I do apologise for the delay in responding to the committee’s letter; it is regrettable. The initial delay, as I set out, was because we were waiting for the OBR to come forward with its costings of the policy. Then there was another, unexpected delay. There has been a delay—[Interruption.] I do not know why I am being heckled; I am trying calmly to explain why there has been a delay, for which I do apologise. We will issue a response very shortly, and certainly by the end of the week. It is important that we respond to that letter. I respect that the hon. Lady is asking that question.
Regarding the public sector equality duty, we have done everything in line with the duty, which is to provide an equality analysis of the decision that we have taken. As hon. Members will know, that analysis was published in September. However—I say this gently—after the election we found ourselves in a situation of having a £22 billion black hole, with Treasury reserves spent three times over. The OBR has said that its assessment of the previous Government’s Budget would have been materially different had it known the pressures on spending and the real situation in the Treasury. I note that the hon. Lady does not come with an apology.
We have had to take the decision to means-test winter fuel payments. We did not want to do that, but we have had to take some difficult decisions to clear up the mess, to tackle our fiscal inheritance and to start rebuilding our public services, which pensioners across the country and many others rely on.
Richard Burgon (Leeds East) (Ind)
Government Members will obviously not take protestations about poverty from the Conservative party with anything other than a mountain of salt. But the Government spend £1,300 billion per year and the cut to winter fuel allowance will save the Government about £1.4 billion per year, so that cut will save about 0.1% of Government spending. On that basis, as we look at all the welcome advances made in the Labour Budget—all the great stuff that we can talk about—and we consider that this measure saves only 0.1% of Government spending, I really urge the Minister to think again. I think the public would welcome that as a sign of real leadership. Not anyone or any Government always gets it right, and I believe we got it wrong on this occasion. Could the Government rethink on this issue?
Emma Reynolds
I am proud of the last Labour Government’s record of lifting over a million pensioners out of poverty. We do expect to make savings of about £1.4 billion this year through means-testing the winter fuel payment. That is not an insignificant proportion of the £5.5 billion of savings that the Chancellor set out on 29 July.
Steve Darling (Torbay) (LD)
Many of us in the Chamber accept that the new Government inherited a financial mess from the old Government. It is a pity that that is being balanced on the backs of pensioners. The Minister quite rightly highlighted how many of us have been championing our residents to claim pension credit, as I am in Torbay. She talked of unexpected delays. Many of us, including her own Department, face unexpected delays. In the light of that, will she extend the deadline for pensioners to claim the allowance beyond 21 December?
Emma Reynolds
I thank the hon. Gentleman for that question. I am afraid that I cannot commit to extending the deadline. It is important that we encourage as many pensioners as possible—I know that he is working on that in his constituency, and I did a pension credit surgery in my constituency last week—to check whether they are eligible for pension credit. We have 160 local authorities up and down the country helping us to check the eligibility of those in need and those on the lowest incomes. That is the right thing to do. Those claims can be backdated by three months, and anyone who is eligible for pension credit in the qualifying week will also be passported to other benefits, such as the winter fuel payment.
Clive Efford (Eltham and Chislehurst) (Lab)
The advisory committee made several recommendations related to getting assistance to people who should be in receipt of pension credit. Could the Minister indicate whether the Government intend to accept those recommendations?
Emma Reynolds
We are deploying an additional 500 staff to deal with the substantial increase—over 150%—in claims. That is the right thing to do. It is an operational focus for the Department to get through those claims as quickly as possible, to make sure that we get the help to those most in need.
Alison Griffiths (Bognor Regis and Littlehampton) (Con)
The Social Security Advisory Committee estimated that more than 70% of people with a disability will lose their winter fuel payment this year. Does the hon. Lady really think that cutting benefits from this vulnerable group of pensioners is the right thing to do?
Emma Reynolds
If the hon. Lady looks at the equality analysis, she will see that those with a disability will be disproportionately likely to retain the winter fuel payment. I urge her to have a look at that.
Andy McDonald (Middlesbrough and Thornaby East) (Lab)
I thank my hon. Friend for her response to the urgent question. We had a Budget that did so much good for our country in the face of the most dreadful inheritance, and the Labour Government should be congratulated on that. But pensioners in Middlesbrough and Thornaby East are still looking to the Government to further mitigate the impact of the cut to the winter fuel payment. Much has been done by the elected Mayor Chris Cooke to embrace the issues around the household support fund and so on, but the Social Security Advisory Committee noted that the £1.4 billion was based on an increase of only 5% in pension credit take-up, from 63% to 68%. Could the Minister say what the increase in take-up has been to date, and what further steps she will take to provide yet further mitigations and reduce pensioner poverty?
Emma Reynolds
We will announce new statistics at the end of this month. The committee asked about the 5% increase; that assumption is based on what happened when the previous Government took away free TV licences and people had to apply for them. The OBR accepted our assumption.
Sir Christopher Chope (Christchurch) (Con)
What is the point of having a Social Security Advisory Committee if the Government do not listen to and take its advice? Would it not be better to abolish the committee if the Government are intent on ignoring it?
Dr Scott Arthur (Edinburgh South West) (Lab)
I was reassured by the Minister’s response that we will soon see a reply to that letter. My constituents are not fools—they can see that while Opposition parties oppose the cut, they are not proposing how they would fund the payment. My constituents also see the desperate lack of people claiming pension credit. I put on the record my thanks to Age Scotland for its guidance to my staff on how to ensure that more people in my constituency claim it. The letter refers to winter fuel payment claimants in England, Wales, the EU, Switzerland, Iceland, Lichtenstein and Norway, but not Scotland. Is that because in Scotland, the Scottish Government have the power both to maintain the winter fuel payment and to fully fund it?
Emma Reynolds
Yes, as I understand it that is in the Scottish Government’s gift.
Damian Hinds (East Hampshire) (Con)
Has the Minister had the chance to visit the DWP library, and has she made a note of how many drives there have been over the years to take up pension credit, and whether any of them ever reached as high even as three quarters of those who are eligible?
Emma Reynolds
The previous Government promised 13 years ago to merge housing benefit with pension credit, which would be a significant advance towards improvements. We are introducing that in January. We will have been in power for only six months, but we will have done more than the previous Government did in 14 years.
Kirsty Blackman (Aberdeen North) (SNP)
Many pensioners are terrified of going into debt and do not want to switch on their heating in case they end up with massive bills. Temperatures will drop below freezing in Scotland at the beginning of next week, so will the Minister apologise to those pensioners across Scotland who will not be able to put the heating on because they fear going into debt?
Emma Reynolds
I urge the hon. Lady to look at the support available to low income households through the warm homes discount scheme, the extension of the household support fund and our commitment to the triple lock, which will ensure that 12 million pensioners see a rise in their pension of up to £470 next year, and £1,900 over the course of this Parliament. In the longer term, I urge her to look at the detail of the warm homes plan, which will transform homes across the country by making them cleaner and cheaper to heat.
Alicia Kearns (Rutland and Stamford) (Con)
On 19 September, the Minister’s Department told me in response to a written question that 48,351 people in my constituency had been eligible for winter fuel payments. While we are proud to offer forever homes to so many pensioners, that is a preposterous figure, relating to a heartless and unnecessary decision that will cost more in the long term. How do I or any of my residents have confidence in what the Government are doing, since they believe that more than half my constituency is made up pensioners, and cannot even get the basic numbers right?
Emma Reynolds
I quote one of the hon. Lady’s fellow politicians:
“I have people in my constituency telling me that they don’t need the winter fuel payments that we give them because they can afford it.”
Those are the words of the Leader of the Opposition, the right hon. Member for North West Essex (Mrs Badenoch).
Ann Davies (Caerfyrddin) (PC)
The Social Security Advisory Committee’s letter calls for an urgent amendment to allow those in receipt of pensioner housing benefit to receive the winter fuel payment this year. I believe the UK Government should go further, extending eligibility to people on council tax support, attendance allowance, disability living allowance, personal independent payments and carer’s allowance. Will the UK Government rethink their position on eligibility and reduce pensioner hardship this winter?
Emma Reynolds
The hon. Lady’s question allows me to focus on the communications around this change. It is not just about pension credit, but about people on working tax credit, child tax credit and other benefits. The committee was concerned about pensioners in receipt of child tax credit; pensioners should check whether they are eligible for other qualifying benefits for winter fuel payments, because it is quite a complicated system. It is not just about whether someone is already on pension credit.
James Wild (North West Norfolk) (Con)
The Government say that they want everyone who is eligible for pension credit to claim it and get it, but as the Social Security Advisory Committee points out, they expect only a 5% increase in uptake. Is the reality not that the Government need hundreds of thousands of pensioners not to claim this entitlement that they deserve, in order to make their figures add up and to cut £1.4 billion from winter fuel payments?
Emma Reynolds
I would be very pleased if all pensioners who are eligible for pension credit applied and received the help that they deserve.
Iqbal Mohamed (Dewsbury and Batley) (Ind)
The Minister will be aware that billions of pounds in benefits and financial help, including pension credit, goes unclaimed every year due to the stigma associated with claiming benefits, and the huge difficulty that claimants encounter when navigating the system. What measures are the Government taking to encourage greater take-up and to simplify the benefits system?
Emma Reynolds
We have run several campaigns, the latest of which was launched recently on radio and TV and in print media, to urge those who may be eligible to apply, and to urge their loved ones to encourage them and help them to apply. We have also asked officials to see how we can improve the form to make it easier, but more than 90% of claims are now made online. Pensioners can get help either from a loved one or from charities and local authorities, which are helping to ensure that they get the support that they deserve.
Lewis Cocking (Broxbourne) (Con)
Some 16,600 pensioners in Broxbourne will lose their winter fuel payment. How is the Minister helping those who cannot do online applications for pension credit to make an application? Will she commit to continuing to write to all those who will lose their winter fuel payment until they sign up for pension credit?
Emma Reynolds
We have written to all pensioners to tell them about the change in Government policy to ensure that those who are not in receipt of pension credit or other benefits know that they will not be getting the winter fuel payment this winter.
Jim Shannon (Strangford) (DUP)
Minister, it is always good to have the necessary answers. The report notes savings of £1.5 billion. The increase in pension credit take-up from 63% to 68% represents an additional 100,000 households. Any take-up negates savings made by the Government. The fact is that pensioners who would qualify have lost out this year and are struggling now. What can be done to expedite their applications and to deal with the long waiting list for decisions, which means that, for many, the potential for additional income to ease their situation and help in the winter months will be too little, too late? The reason I make the point is that the system is taking too long to make a decision and those people need the money right now.
Emma Reynolds
As I said, we have redeployed an additional 500 members of staff to process applications for pension credit and we are mostly hitting the target for processing times.
Oral Answers to Questions
Emma Reynolds Excerpts(1 month, 1 week ago)
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Tonia Antoniazzi (Gower) (Lab)
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.
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?
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)
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)
Clive Jones (Wokingham) (LD)
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)
Alan Gemmell (Central Ayrshire) (Lab)
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)
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)
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)
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)
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)
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?
Income Tax (Charge)
Emma Reynolds Excerpts(1 month, 2 weeks ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Emma Reynolds)
I am proud that last week we saw the first Labour Budget in almost 15 years delivered for the first time by a woman, my right hon. Friend the Chancellor. This was recognised by my hon. Friends the Members for Monmouthshire (Catherine Fookes), for Basingstoke (Luke Murphy) and for Paisley and Renfrewshire South (Johanna Baxter), and indeed by Members across the House including the hon. Members for South West Hertfordshire (Mr Mohindra) and for South Devon (Caroline Voaden).
This is a Budget for jobs, opportunities, investment and economic growth that drives down poverty and protects the payslips of working people. It is a Budget that invests in skills and our economic foundation and delivers the change that we promised during the election. Crucially, it is a Budget that restores economic stability and begins the vital work needed to rebuild our public services, which were left in a state of ruin by the Conservatives. The NHS, schools, roads, affordable housing: that is the difference that a Labour Government make.
This was a lively debate with many contributions from across the House and I want to congratulate all hon. Members, even if I did not agree with them all, on keeping to strict time limits of two or three minutes. I particularly welcome my three hon. Friends who gave excellent maiden speeches. My hon. Friend the Member for Huddersfield (Harpreet Uppal) spoke movingly and proudly about her late mum’s role as a care worker, and spoke proudly about the industrial and sporting heritage of her constituency. My hon. Friend the Member for North Somerset (Sadik Al-Hassan) spoke proudly of his constituency being home to the first mass production of penicillin. His experience as a pharmacist will be very valuable to this House. My hon. Friend the Member for Wrexham (Andrew Ranger) explained that Wrexham association football club is the third oldest in the world. That was news to me, and I was glad to hear about that. He also said that his constituency is home to the world’s oldest lager brewery and to other thriving breweries and major manufacturing companies. I would like to thank my hon. Friends for those maiden speeches.
Many hon. Friends and Members across the House welcomed the Government’s allocation of funding to two vital compensation schemes: those for the contaminated blood scandal and the Horizon Post Office scandal. The previous Government talked about those schemes but did not allocate any money for them.
I know that many hon. and right hon. Members are concerned about the changes to agricultural property relief, so I want to say something about these changes and in particular to answer the hon. Member for Mid Buckinghamshire (Greg Smith), one of my neighbours. A couple who jointly own a farm will be able to pass on land and property valued up to £3 million to a child or a grandchild tax-free. That is made up of £1 million when they combine their standard £500,000 tax-free allowances and an additional £1 million tax-free allowance each for agricultural property inheritance. I hope that gives some comfort to hon. Members across the House. At least the former Chancellor but one, Kwasi Kwarteng, was honest about the track record of the previous Government when he said last week:
“We Tories have to be honest—Rachel Reeves is dealing with our mess”.
This is a once-in-a-generation Budget that turns the page on Tory austerity and economic chaos. In addition to the £20 billion black hole in our public finances, with the last Government spending Treasury reserves three times over, there is also a record number of people relying on food banks, 700,000 more children growing up poor, the biggest increase in economic inactivity in the UK for 40 years, millions on NHS waiting lists, crumbling schools and overflowing prisons. We are determined to fix these problems.
Many hon. Friends mentioned the increase to the national living wage that we have introduced, by 6.7% to £12.21 per hour, which will be a pay rise for 3.5 million people across the country. We are also moving towards a single national minimum wage for all eligible adults, starting with the biggest-ever increase to the rate of pay for 18 to 20-year-olds, which will help nearly 200,000 young people—that is a difference that a Labour Government will make. In addition, our youth guarantee will help young people to fulfil their potential and follow their dreams.
Sir John Hayes
I am grateful to the hon. Lady for giving way, as she does not have much time. As an economist, she knows that it is not what we spend but what we get for it—it is value for money that counts. What is she specifically doing about productivity, which is a perennial problem in many countries, including our own?
Emma Reynolds
First, we want to escape the doom loop of low growth and low productivity that we inherited from the previous Conservative Government. Each Department will have to meet a 2% productivity challenge. This is not a cut to departmental spending but a Treasury requirement to ensure better productivity across the civil service.
Our Get Britain Working White Paper, which we will announce in the coming weeks, will set out reforms to our jobcentres and will empower local leaders to tackle economic inactivity in their towns and cities. This is backed by £240 million of new funding for 16 trailblazer projects. It is because we recognise that many working people face extra barriers to taking up work or increasing their hours that the Chancellor announced the biggest-ever rise in the earnings limit for carer’s allowance to help carers balance work and caring responsibilities. That is a difference that a Labour Government will make.
We will also tackle poverty and help those most in need, which is why this Budget extends the household support fund in England and discretionary housing payments in England and Wales. After conversations with the Trussell Trust, the Joseph Rowntree Foundation and many others, we are introducing our new fair repayment rate, which will reduce the cap on deductions from universal credit from 25% to 15% of the standard allowance. This will help 700,000 of the poorest households with children. And because people who have worked hard and saved all their lives deserve security and dignity, we are maintaining the triple lock, which will see state pension rises of around £1,700 over the course of this Parliament.
This is the first Labour Budget in almost 15 years. We shun the choices of the last Conservative Government. They chose low growth, low productivity and decline in our public services. We choose investment and growth, restoring economic stability, fixing the foundations, rebuilding the NHS and our other public services, pushing forward with a decade of national renewal, recruiting more teachers, bringing down NHS waiting times, building more affordable homes and, yes, filling more potholes.
This is a Budget that makes a choice about rebuilding our public services, rebuilding Britain and investing in vital infrastructure. This is a Budget that invests in the future of our country, and I commend it to the House.
Ordered, That the debate be now adjourned.—(Anna Turley.)
Debate to be resumed tomorrow.
Pensions Dashboard
Emma Reynolds Excerpts(1 month, 3 weeks ago)
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The Parliamentary Secretary, His Majesty's Treasury (Emma Reynolds)
The Government want to shape the pensions system to serve the interests of savers and future pensioners, ensuring decent, secure retirement incomes for all. As part of achieving that goal, we want to make it easier for people to understand their pensions information so they can better prepare for financial security in later life.
As people often move around the labour market throughout their working lives, this can make it difficult for individuals to keep track of their pensions savings. To help solve this problem, the Government are committed to the delivery of pensions dashboards.
Pensions dashboards will provide a secure way for individuals to view a summary of their pensions picture online, including information about the state pension. This will help people find their lost pension pots and promote greater engagement—empowering individuals to plan their future more confidently.
The Pensions Dashboards Programme (PDP), which is part of the Money and Pensions Service (MaPS), recently concluded a formal reset process which generated a revised delivery plan. In line with that plan, the programme has begun testing the connection journey with a small number of external organisations which will help facilitate wider industry connections. Alongside this, the PDP has published an updated draft code of connection, technical standards, and data standards to support the pensions industry to prepare for connection. As a result of the PDP’s progress, the Infrastructure and Projects Authority has increased its confidence in the programme’s ability to deliver against their revised plan.
While it is too early to confirm a launch date for public use, we are taking steps to help the public realise the benefits of using a pensions dashboard at the earliest opportunity. I have directed the PDP to focus its efforts on the connection and launch of the MoneyHelper dashboard service (provided by MaPS), before turning to the work of connecting commercial dashboard services.
The Government support the principle of enabling multiple commercial pensions dashboard services, which will provide savers with greater choice to access their pensions information from organisations they are familiar with, promoting greater engagement with pensions. However, in the interests of ensuring consumers have the best experience on dashboards, it is prudent to allow a period while only the MoneyHelper dashboard is operational. Prioritising the launch of the Government-backed dashboard in this way will provide an opportunity to obtain better insights into customer behaviour and ensure greater confidence in operational delivery, security, and consumer protection before facilitating the connection of commercial dashboards.
We are committed to the existing published timetable for the connection of pension schemes and providers to the pensions dashboards ecosystem, which is expected to begin in April 2025, as well as the overall connection deadline of 31 October 2026. It is therefore essential that the pensions industry continues to prepare for connection, having regard to the timetable set out in DWP’s guidance.
Facilitating the launch of pensions dashboards is a challenging and complex undertaking, but the Government are firmly committed to their successful delivery and to unlocking the potential benefits they will offer to future pensioners.
[HCWS148]
International Investment Summit
Emma Reynolds Excerpts(2 months ago)
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The Parliamentary Secretary, His Majesty’s Treasury (Emma Reynolds)
I beg to move,
That this House has considered the International Investment Summit.
I am delighted to open this debate on the Government’s inaugural international investment summit, which we hosted at the Guildhall in London on Monday. Leaders of the world’s biggest companies, from Alphabet and BlackRock to Goldman Sachs and Novo Nordisk, came from all corners of the globe to meet Government Ministers and to listen to what our new Government had to say. Our message at the summit was clear: the UK is open for business once again. We have turned the page on the stagnation and instability of the previous Government, and in just over 100 days, this Government have put growth front and centre of our agenda and reassured investors that we will create the very best conditions for them to invest and to grow their businesses, restoring the economic stability and confidence for which businesses have been crying out for too long.
The Prime Minister and the Chancellor made it clear that the UK has an enormous amount to offer, as did all the high-profile investors who spoke at the summit, including esteemed business figures such as Larry Fink, Eric Swartz, Ruth Porat and more. We have made clear our commitment to growth and restored economic stability, and we have given businesses the confidence that they need for the long term. Businesses are safe in the knowledge that the UK at last has a Government whose central mission is to grow the economy and stimulate private investment, thereby ending the chaos and churn of the last 14 years.
As both the Prime Minister and the Chancellor have set out, increasing investment into the UK is the Government’s No. 1 priority to drive growth. Our mission-driven approach allows us to think in terms of years, not weeks, and to commit to the hard yards required to break down the silos that have too often prevented effective government and got in the way of real growth-driving change.
This is about ambitious policymaking for the long term, not sticking-plaster politics. As the Chancellor said earlier this week:
“If the challenge is growth, investment is the solution.”
I am delighted to say that, as a result of the stability dividend introduced by this Government, we announced a record-breaking £63 billion of shovel-ready investments across the country—more than at any previous summit, and more than double the total of last year’s summit—from global companies such as Eli Lilly, ServiceNow, Holtec and many others.
Dr Luke Evans (Hinckley and Bosworth) (Con)
I welcome the Government’s success. Could the Minister tell us the proportion of that investment that came into play before the election?
Emma Reynolds
The agreements were reached in the lead-up to the summit and at the summit itself. I am glad that the hon. Gentleman joins us in congratulating the new Government on securing £63 billion of shovel-ready investment. I lost count of the number of Prime Ministers, Chancellors and Home Secretaries we had under his Government. I was working in the private sector at the time, and I often heard from businesses that said they did not have the stability, or even the predictability, of Government policymaking.
Emma Reynolds
I will not have a cross-Chamber discussion with the hon. Gentleman. I am sure he will make a contribution to the debate.
This Government are determined to increase the number of good, well-skilled jobs, to embrace the opportunities of technology and innovation, and to improve productivity across the country. At the international investment summit, we demonstrated that the UK has tremendous strengths. We have a dynamic, ambitious and globally connected economy that has long been at the forefront of global exploration, invention and innovation. We have a global language, a central time zone and a renowned legal system. We have a high-spending consumer market that benefits from an open economy. We have trade deals with over 70 countries, and we have world-class talent supported by our globally recognised higher education system, with four of the world’s top 10 universities.
One of my favourite moments of the summit was a panel chaired by our fantastic Secretary of State for Culture, Media and Sport on the creative industries and sport. I was delighted to have a photograph with Gareth Southgate, which I showed to my boys when I got home. In all seriousness, Gareth Southgate talked about how the Premier League was once just an idea and how it has been built and marketed into a world leader, creating great investment into our economy. I am sure the whole House will support that sentiment—
Emma Reynolds
The shadow Secretary of State is demonstrating that from a sedentary position—it is the first time I have said that in a debate for some time.
When we took over from the last Government, we recognised that there were issues we needed to address to improve the UK’s competitiveness. That is why we have already announced a series of steps to improve our business environment, such as driving through planning reform to get Britain building, removing the ban on onshore wind farms and giving the green light to key solar and data centre projects. We are also undertaking a pensions investment review, which the Chancellor has asked me to lead, to harness the potential of our £2 trillion pension industry to unlock new capital for our innovative businesses, to drive growth and to improve outcomes for future pensioners.
We have launched Skills England to boost the nation’s skills and fill job vacancies by bringing together businesses, trade unions, mayors, universities, colleges and training providers. We are also resetting our relationship with our closest partners in the European Union.
Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)
I, too, congratulate the Government on an extraordinary achievement in securing £63 billion-worth of investment, which is a tremendous vote of confidence not only in this Government but in this country. My hon. Friend is right to say that a big part of this is the stability dividend, but she is also right to say that resetting our relationship with our closest neighbours in Europe must also be a big source of appeal. Did she hear that feedback at the investment summit?
Emma Reynolds
Indeed, I did. Business wants the Government to take a pragmatic approach, not an ideological approach, to our relationships with our main trading partners, and that is exactly what our new Government are doing.
I am pleased to report that we are not resting on our laurels; far from it. On Sunday, the Business Secretary announced the launch of an industrial strategy advisory council, which will be chaired by Clare Barclay, the CEO of Microsoft UK. The Business Secretary also announced our modern industrial strategy Green Paper, setting out eight growth-driving sectors: advanced manufacturing; clean energy industries; creative industries; defence; digital and technology; financial services; life sciences; and professional and business services. This is not about picking winners; it is about building on the UK’s unique strengths and untapped potential to enable our already world-leading services and manufacturing industries to adapt, grow and seize the opportunities to lead in new and emerging industries.
At the summit, the Prime Minister set out the Government’s commitment to a pro-growth approach to competition and regulation, to create a dynamic business environment that will strengthen our foundations and help deliver our growth mission and industrial strategy. As investors made clear, they have a choice of where to invest. We must not rest on our laurels; we must make sure that we forge ahead with these policies, because we need investors to make a positive choice to invest in our country. As one private sector speaker said at the summit, we do not want investors just to invest; we want them to place a big bet on investing in the UK.
The Chancellor also confirmed two new innovative measures to ensure that our public finance institutions can better catalyse billions of pounds in private investment. We turbocharged the UK Infrastructure Bank to become the national wealth fund, which will have £27.8 billion to catalyse investment that would not have otherwise taken place. We have also launched the British Business Bank’s new pathfinder British growth partnership, a vehicle to crowd pension fund investment and other institutional investment into venture capital funds and innovative businesses.
We have committed to bringing forward a tax road map, long demanded by businesses across the economy, at the Budget. This will give businesses the certainty and predictability to plan for the future. As the Chancellor has already made clear, we will cap the rate of corporation tax at 25% for the duration of this Parliament. Gone are the days when a Government—the previous Government —would announce a decrease in corporation tax, then announce an increase and then, months later, reverse the decision again at the next fiscal statement. We want to ensure that businesses have predictability. We have also said that we will maintain our capital allowances offer, with full expensing and a £1 million annual investment allowance.
We will also reform and turbocharge the Office for Investment, which will sit under our new joint Treasury-Department for Business and Trade Investment Minister, Poppy Gustafsson, the founder and former CEO of Darktrace. This is a clear demonstration of the Government’s commitment to better serving the needs of investors and breaking down the silos between Departments, which have too often prevented transformative Government policy.
We are determined to drive the transformational investments that the country so desperately needs to fulfil its economic potential. Such measures, introduced within just 100 days, show that this Government are not just about warm words; we mean business, in every sense of the phrase.
This week’s summit was a major vote of confidence in the UK’s economic future and in this Government’s commitment to realising it. The investments and partnerships forged at the summit will have lasting impacts, driving growth, innovation and sustainability for years to come. It was not just a one-off event; it was a first milestone in our ongoing work to build a deep and meaningful partnership with business, drive economic growth and create good jobs for working people up and down this country at all levels of society. As we move forward, let us work together across the House to ensure that the benefits of these investments are felt by all our citizens across every region of our great nation.
Before I finish, I want to say that the particular highlight of the summit for me was the evening reception at St Paul’s, at which His Majesty the King was present and at which many of us were delighted to hear Elton John, who had some very warm words to say about our new Government. He said something like, “We’ve been in the doldrums for the last few years, but now we have a new Government under the leadership of a new Prime Minister and things are looking up.”
As the Chancellor made clear in her closing speech at the summit, since taking power this Government have put unlocking private investment at the heart of everything we do. Our investment summit demonstrated our commitment to growth and that the UK is once again open for business.
Madam Deputy Speaker (Judith Cummins)
I call the shadow Secretary of State.
Kevin Hollinrake
There is no doubt that we have been through a difficult time, given the effect of covid and the cost of living crisis on a services economy, but the right hon. Gentleman will acknowledge that back in 2010 the deficit was more than 10%, whereas today it is only 4%. In real terms, adjusted for inflation, that is a difference of about £160 billion, the equivalent of the health budget. The inheritance left for the present Government is much better than the one we received in 2010.
Emma Reynolds
The shadow Secretary of State is being generous to a point. I suggest kindly that in 2010 the outgoing Labour Government did not leave a £22 billion in-year hole in the public finances, as the Conservative Government bequeathed to us.
Kevin Hollinrake
The Minister is a very sensible person with experience both in the private sector and in politics, so I am surprised that she mentions that figure. Of the £22 billion, £9 billion was a result of her Government’s actions in lifting public sector pay without any commensurate productivity improvements and in scrapping the Rwanda scheme. It is fake news to say that there is a £22 billion black hole, I am afraid, and the Minister absolutely knows it.
There is no doubt that there are tough spending decisions and tough choices to be made, but it is very disappointing that one of the Government’s tough choices has been to scrap the winter fuel allowance. Let us see what their other choices will be.
Emma Reynolds
I wonder whether she would be tempted to tell us about her favourite pub in Bournemouth—or whether there are any bears around.
Jessica Toale
There are no bears, I am afraid, but I will get to that.
Bournemouth will benefit massively from the innovation and investments that the investment summit has brought in. I know that my constituents will be keen to hear how our local businesses and our high street, and even their bills, will benefit from the summit.
I want to take the opportunity to pay tribute to my predecessor, Sir Conor Burns. He served the constituency for 14 years, making it his home following his election in 2010. As well as serving as a Minister, Sir Conor was passionately dedicated to our local schools, bringing in investment for their improvement and improving opportunities for local young people—a tradition I am keen to continue. Many hon. Members will also know that Sir Conor was proudly devoted to the late Mrs Thatcher. In his own maiden speech, he stood in the same place that Mrs Thatcher stood to give hers, so perhaps the greatest tribute I can pay to him would be to continue that tradition in the same place here. I wish him all the best of luck in his onward endeavours. While he and I may have differed drastically in many of our views, we are here to provide a voice for the people of Bournemouth West in Parliament, and that is a role I will continue. I want to put on record my thanks to the great people of Bournemouth West for giving me that opportunity to do so under a Labour Government.
Bournemouth is not natural Labour territory, and I am really honoured to have won the trust of the people of Bournemouth in becoming not just its first Labour MP, but its first female MP. That is a monumental sign of the real changes we have seen in the constituency that are affecting it now and shaping its future. Yes, we are a beautiful seaside town, with white sand beaches and picturesque parks—and our hotels, hospitality and cultural venues, and English language schools have attracted people for generations to visit, but also to seek a better quality of life—but there is so much more.
Bournemouth is a relatively new town, but parts of my constituency such as Kinson were mentioned in the Domesday book. Scratch the surface just a little bit, and you will find a growing and vibrant community of innovators and creatives. We have world-leading graphic effects and post-production companies. We have a vibrant community of small businesses and vibrant high streets in Winton and Westbourne, with businesses that are integrating sustainability and also community into their business models. We have a burgeoning tech sector, with leadership in fintech, gaming and active travel. We have two world-leading universities and an excellent further education college, feeding that ecosystem and making sure our young people are equipped with the digital and creative skills they need to succeed in the 21st century—and I could go on.
Of course, there are challenges. Like all seaside towns, we have seen our town centre decline. More than a decade of cuts to public services has meant that people now struggle to get an NHS dentist. Crime and antisocial behaviour are at the forefront of people’s minds as, for me, are parents who will not let their daughters go into the town centre at night. Knife crime has destroyed lives, the housing market too often locks out young people and young families, and do not even get me started on sewage.
But I feel hopeful about the future, and I feel hopeful because of the collective spirit that I see every day in my constituency, with people such as Fran and Jesse at the Henry Brown centre and Kerry and her team at the Bourne community hub working against the odds to build their communities and transform lives in neighbourhoods such as West Howe and Alderney; all the community groups and resident groups fighting hard to improve their local areas and campaigning to protect our ancient heathland and our precious coastline; and, of course, all of the businesses giving it a go, getting into our high streets and the town centre, breathing life back into empty shops and revitalising our heritage buildings.
This is all really exciting stuff and I know that, with a new mission-led Government, our town can and will be the safe and thriving hub it once was. I know that kids in West Howe can and will have the same opportunities that our young people in Talbot Woods do to get a world-class education in their schools, colleges and universities. I want graduates who fall in love with Bournemouth to find great jobs and affordable housing so that they stay and build their lives there. I want all of our businesses to thrive in the vibrant ecosystems that we are now developing, and families in Wallisdown to get the support they need in their schools and not to worry about getting a dentist or a doctor. All of our residents, regardless of age or income, should feel proud of their town and their local neighbourhoods.
Three out of four people in my constituency at this general election voted for change. They did not all vote for me, but delivering that change is a responsibility I now embrace. I want to use it to build a better politics and a fairer future where everyone feels like they have a stake. So I am very excited and looking forward to working with the brilliant people of Bournemouth West and our mission-led Government to build the shared future and reignite this sense of hope not only in our special seaside town, but across the whole country.
Work and Pensions
Emma Reynolds Excerpts(2 months, 1 week ago)
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Neil Duncan-Jordan
Does the Minister agree that the problem is that wherever we draw the line, there will always be those just above who end up being poorer because they do not gain the benefit and do not get the passported access that gaining the benefit gives? Those individuals end up being worse off than the people who do claim. That is one of the problems with the means-tested system.
Emma Reynolds
I thank my hon. Friend for his intervention. For those just above the threshold, we have extended the household support fund. I urge hon. Members to work with me, the Secretary of State for Work and Pensions and the Deputy Prime Minister, who have written to local authorities to encourage them to ensure that those just above the threshold who are struggling get the support they need with bills.
[Official Report, 10 September 2024; Vol. 753, c. 243WH.]
Written correction submitted by the Under-Secretary of State for Work and Pensions, the hon. Member for Wycombe (Emma Reynolds):
Emma Reynolds
…I urge hon. Members to work with me, and with the Secretary of State for Work and Pensions and the Deputy Prime Minister, who have written to local authorities on the issue.
Emma Reynolds
We will write to all pensioners about housing benefit; this is a question that one of my hon. Friends asked me yesterday. He had a constituent on housing benefit who was concerned that that would be taken into account as a form of income when the Government looked at his eligibility for pension credit. I confirm that that is not the case: housing benefit is not taken into account with regard to income.
[Official Report, 10 September 2024; Vol. 753, c. 244WH.]
Written correction submitted by the Under-Secretary of State for Work and Pensions:
Emma Reynolds
We will write to all pensioners on housing benefit who may be eligible for, but are not claiming, pension credit; this is a question that one of my hon. Friends asked me yesterday.
Oral Answers to Questions
Emma Reynolds Excerpts(2 months, 1 week ago)
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Bradley Thomas (Bromsgrove) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Emma Reynolds)
I welcome the hon. Gentleman to his place. Pensioners with a long-term health condition or disability may be eligible for disability-related benefits, such as disability living allowance or attendance allowance, and these benefits also provide for an additional amount in pension credit for those on low incomes.
Bradley Thomas
The Government’s impersonal approach is cold comfort to thousands of disabled pensioners, including Ann in my constituency. She has to boil water to prevent infection and uses an electric nebuliser, and as a result she has high energy usage to protect her health. Can the Minister tell Ann what sacrifices she should make to protect her health this winter?
Emma Reynolds
This is a decision that we neither wanted nor expected to make, but when we came into office there was a £22 billion black hole in the public finances. There are mitigations in place. We have extended the household support fund and the hon. Gentleman’s council will receive an extra £3.9 million. We are increasing the state pension. Through the triple lock, the state pension will increase by £1,700 in this Parliament. We will also deliver the warm home discount scheme, and I hope he will join me in making sure that every pensioner who is eligible for pension credit receives it, which will passport them to the winter fuel payment.
Neil Duncan-Jordan (Poole) (Lab)
We know that 2 million older people currently live in poverty in this country, with millions more with incomes just above the poverty level. Does the Minister agree that the Government should set up a pensioner taskforce to look at how pensioner poverty can be tackled once and for all?
Emma Reynolds
I thank my hon. Friend for that question. I will meet him and any other Members of this House who have concerns on this matter.
Blake Stephenson (Mid Bedfordshire) (Con)
Paul Davies (Colne Valley) (Lab)
The Parliamentary Under-Secretary of State for Work and Pensions (Emma Reynolds)
We have been running a national campaign since September across a range of channels, including print and broadcast media, to encourage pensioners to check their eligibility and make a claim, and we will continue to work with external partners, local authorities and devolved Governments to boost the take-up of pension credit.
Blake Stephenson
Around 93% of pensioners in Mid Bedfordshire face losing the winter fuel payment this year; some of them earn less than £1,000 a month. What further support will the Minister give them to fill Labour’s black hole in their household finances so that they can keep warm this winter?
Emma Reynolds
The winter fuel payment was once described as the
“largest benefit paid to pensioners…regardless of need, giving money to wealthier pensioners when working people on lower incomes do not get similar support.”
Those are not my words, but the words of the Tories’ 2017 manifesto.
Paul Davies
Claiming pension credit can provide pensioners with additional help for housing costs, council tax and heating bills. We all have a duty to boost pension credit uptake to ensure that low-income pensioners in all our constituencies receive the necessary support. I welcomed the Deputy Prime Minister and the Work and Pensions Secretary collaborating with local authorities and charities for the annual pension credit week of action, which took place during recess. What more can be done to ensure that low-income pensioners receive pension credit?
Emma Reynolds
We were pleased to see 160 local authorities respond positively to our call for action. They are working with us to drive the boost in uptake of pension credit. Apart from the national campaign that we have been running, we will bring together the administration of housing benefit and pension credit in a way that the former Government failed to do.
Mohammad Yasin (Bedford) (Lab)
Adrian Ramsay (Waveney Valley) (Green)
The Parliamentary Under-Secretary of State for Work and Pensions (Emma Reynolds)
I was the first Minister for eight long years to meet Women Against State Pension Inequality campaigners to hear their experiences directly. However, we do need time to carefully consider the ombudsman’s report and evidence before we can outline our approach.
Mohammad Yasin
I have long supported women in Bedford born in the 1950s who have been failed by the DWP. We must do right by the WASPI women, some of whom are struggling to make ends meet. Will the Minister tell them today when the Government will respond to the report by the Parliamentary and Health Service Ombudsman, which recommended a compensation scheme?
Emma Reynolds
The ombudsman’s report is a serious report that took six years to complete and deserves serious consideration. We are carefully reviewing the details of that complex report and will come to a conclusion in the round.
Adrian Ramsay
I echo the sentiments of the hon. Member for Bedford (Mohammad Yasin) on this serious injustice, which is being compounded by the lack of swift action for redress. It really matters to all our constituents, including mine in Norfolk and Suffolk, where I have spoken to the local WASPI women group, which highlighted just how a big an impact it is having, including on women born in the 1950s who are struggling to make ends meet. Will the Minister please set out the timescale by which she will respond to the report and the action that will be taken?
Emma Reynolds
The ombudsman took six years to look into what is a serious, significant and complex set of cases. We need time to look at that seriously, and we are doing precisely that.
Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
Olly Glover (Didcot and Wantage) (LD)
The Parliamentary Under-Secretary of State for Work and Pensions (Emma Reynolds)
I thank the hon. Member for his question. I have looked into this issue, which has a long and complex history, and I would be very willing to meet him to discuss it in more detail.
Deirdre Costigan (Ealing Southall) (Lab)
Sir Julian Lewis (New Forest East) (Con)
In response to several hon. Members, Ministers have spoken about the complexity of the ombudsman’s report on the WASPI campaign. While appreciating that, may I ask for a statement in principle that the Government will eventually offer significant compensation to the WASPI women?
Emma Reynolds
As I said previously, the ombudsman took six years to consider this complex case. We are looking into it very seriously, but I cannot make any announcements today. The right hon. Gentleman will have to wait for our announcement on this issue.
Mr Alex Barros-Curtis (Cardiff West) (Lab)
Winter Fuel Payment
Emma Reynolds Excerpts(3 months, 1 week ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Emma Reynolds)
This is the first time I have served under your chairmanship, so thank you, Dr Huq. I start by thanking my hon. Friend the Member for York Central (Rachael Maskell) for providing the opportunity for this debate, and thanking her and others for their attendance.
The previous Government left us with unfunded and undisclosed spending commitments. It is very surprising that none of them is in their place for this debate. I may not know some of the new Conservative MPs, but I see empty places opposite me, although elsewhere there are hon. Members from other parties. Hon. Members are acutely aware of the £22 billion black hole in this year’s public finances left by the previous Government. The Office for Budget Responsibility has said that that represents
“one of the largest year-ahead overspends against…forecasts outside of the pandemic years”,
and the Chancellor only discovered this after the election. She has been clear that the decision about means-testing the winter fuel payment was not one that this Government expected or wanted to make, but given the in-year overspend that we uncovered, it is a necessary one. While protecting the poorest pensioners on the lowest incomes and with the greatest need, it is the right decision given the tough choices that we face.
To be very clear, I have spoken to a number of the hon. Members present about the Government’s decision, and there is actually fairly widespread agreement that the benefit should not be universal. Plenty of very wealthy pensioners who do not need it are getting transfers of £200—or £300, if they are over 80—into their bank accounts. It is right that we target the support at the poorest pensioners.
Neil Duncan-Jordan (Poole) (Lab)
Does the Minister agree that the problem is that wherever we draw the line, there will always be those just above who end up being poorer because they do not gain the benefit and do not get the passported access that gaining the benefit gives? Those individuals end up being worse off than the people who do claim. That is one of the problems with the means-tested system.
Emma Reynolds
I thank my hon. Friend for his intervention. For those just above the threshold, we have extended the household support fund. I urge hon. Members to work with me, the Secretary of State for Work and Pensions and the Deputy Prime Minister, who have written to local authorities to encourage them to ensure that those just above the threshold who are struggling get the support they need with bills. Obviously, that is discretionary, but we encourage local authorities to use that.
In addition, the Minister for Energy Consumers has met with the 15 largest energy providers and urged them to give all the support they can to those who are either likely to get into debt, or who are already into debt on their fuel bills. Support is available. There is also the warm homes discount, which is available to a larger cohort than those on pension credit. That will go live in October; again, I encourage hon. Members to join us in urging those struggling with their bills to apply for the warm homes discount, which is worth £150.
There are measures that the Government are taking. We are absolutely determined to boost the uptake of pension credit. It is a national scandal that up to 880,000 eligible pensioners are missing out on pension credit thanks to the previous Government. That is worth on average £3,900 per year, but obviously depends on personal circumstances. If people apply for pension credit and are successful, it passports them to all sorts of other benefits.
My hon. Friend the Member for Great Grimsby and Cleethorpes (Melanie Onn) rightly said that pensioners eligible for the savings credit part of pension credit are also eligible for pension credit, and therefore will be passported to receive winter fuel payments. It is quite a complex area, because it depends on whether someone is on the old or new state pension. Gordon Brown, when he was Chancellor, introduced the savings credit precisely to help the cohort of people that hon. Members are concerned about. George Osborne, on taking office, cut that benefit and made it unavailable for younger pensioners, so the cut off is 2016. That is something that we have been left; as my hon. Friend the Member for York Central said, it is not a legacy that we have chosen. I hope to work with all hon. Members present, who are clearly concerned about their constituents, to boost the uptake of pension credit.
Andy McDonald
I wholeheartedly agree that the Minister has inherited the most dreadful legacy from the absent Conservative party. Could she clarify for me the issue of take-up of pension credit? It currently sits at 63%; the ambition is 68%. What would happen to the proposed savings of £1.4 billion if pension credit was successfully rolled out to everybody entitled to it? Would those savings not disappear?
Emma Reynolds
The savings we have estimated—£1.4 billion this year and £1.5 billion in the next financial year—take into account a boost in the uptake of pension credit. We are absolutely determined to see an increase in that uptake, so the Secretary of State and I have already engaged with charities and local authorities. The Secretary of State spoke to Age UK and Citizens Advice about how we work together.
Last week was Pension Credit Week of Action. I encourage hon. Members to look at my X, although I know it is not so fashionable with everyone these days, for a video of a visit I did last week precisely to raise awareness of pension credit. Pension credit is not a simple process—we are looking at how to simplify it—but charities such as Age UK and Citizens Advice will help pensioners to go through it online. The online version is much simpler than the paper version, believe it or not, as the paper version has lots of questions that will not be applicable. We are also delivering a major campaign in print and broadcast media, including for people to reach out to retired families, friends and neighbours to urge them to check if they are eligible.
We will write to all pensioners about housing benefit; this is a question that one of my hon. Friends asked me yesterday. He had a constituent on housing benefit who was concerned that that would be taken into account as a form of income when the Government looked at his eligibility for pension credit. I confirm that that is not the case: housing benefit is not taken into account with regard to income. Please, I urge pensioners on housing benefit, who will be receiving a letter from the Department, to apply for pension credit.
As a Government, we are looking to merge the administration of housing benefit and pension credit to make that much simpler for people. The previous Government promised they would do that—some years ago, in fact—but were not going to until 2029. We think that that was slow decision making, and we are seeking to do it as soon as is operationally feasible. It is not a simple exercise, but it is something that we should do.
Calum Miller
I congratulate the Minister on the speed with which you have got up to speed in this fiendishly complex area. That in itself demonstrates a point. Do you not agree that this has been a premature decision, which has left many of our constituents deeply anxious about how they will heat their homes this winter? If you as the Minister are telling us that it is complex and not straightforward, and a difficult set of issues to navigate, how can we expect people worrying about illness, caring for their partners, or living on the poverty line because they are just above the pension credit limit, to get through this winter? Do you not agree that it would have been better to consider the issue in slightly slower time?
Dr Rupa Huq (in the Chair)
Order. The Clerk always reminds me that Members cannot use “you” because it means me, even when used with “Minister”. We have had it all morning.
Emma Reynolds
Dr Huq, I am sure Members will soon get used to the bizarre ways of this House.
I thank my hon. Friend the Member for Bicester and Woodstock (Calum Miller) for his question. As I set out, the Chancellor was not expecting to do this but had to do it urgently because of the £22 billion black hole in our public finances. The black hole is in-year. What if we did not tackle it? Look at what happened under the previous Government, with Liz Truss’s mini-Budget: they put forward unfunded tax cuts and sent the markets into turmoil. Interest rates increased, putting mortgage rates and rents up, and that led to higher inflation.
People on fixed incomes, such as pensioners, would really suffer were we not to secure economic stability. Economic stability is the foundation of all that we want to do in Government. I say to pensioners and others across the country: this is a necessary step to make the improvements that we want in our NHS, bringing down waiting times, and in our schools, ensuring that we have the highest standards.
Emma Reynolds
I am afraid I cannot give way at this point, because I only have a few seconds left, but I thank my hon. Friend once more for providing the opportunity for this debate.
Unfortunately, given the fiscal inheritance, we have had to make some very difficult decisions. We made other decisions in July as well, such as pausing the hospitals programme to review what we will do with it. There are other decisions to come. However, it is right that we take the difficult decisions to protect our economic stability, and to drive growth in our economy, higher tax receipts and improvements in our public services. We are absolutely determined as a Government to deliver a better NHS, with waiting times down, and better public services, which will benefit pensioners and people across our economy and our country.
Question put and agreed to.
Department for Education
Emma Reynolds Excerpts(5 years, 9 months ago)
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Emma Reynolds (Wolverhampton North East) (Lab)
It is a great pleasure to speak in this debate. One of the reasons I decided to go into politics was that I saw in our country that inequalities later in life stem from the fact that a child from a poor background is less likely to go on and do well in school than one from a richer background. I will reiterate some of the figures that the right hon. Member for Harlow (Robert Halfon) used about that. Some families in our country are able to spend more on school fees for their children per year than many people earn in salaries. I know that many Members speaking in this debate are motivated by the same thing—they want to improve education across the board, but particularly for children from deprived backgrounds. That is why I want to start with the point made powerfully by the Chairman of the Education Committee—we are lucky to have him—about FE funding, because it is often overlooked in these debates.
We talk about schools and we talk about early years, and I want to talk about those two things as well, but I want to start with FE funding. The Institute for Fiscal Studies recently produced a report saying that further education was the “biggest loser” in the cuts to education. I know that the Secretary of State is very passionate about learning from other countries, such as Germany, but if we are serious about putting our mainstream education and our vocational education on the same footing and valuing both equally, we really need to look again at further education funding.
The principal of the City of Wolverhampton College tells me about the funding pressures he is under, as are the other Black Country colleges in Dudley and Walsall. We have some really fantastic colleges in our region, but we know that their funding has been frozen for far too long. National funding rates for 16 and 17-year-olds have stayed at £4,000 per pupil since 2014; they have not increased in line with inflation. For 18-year-olds, the rate has been frozen at £3,300 per pupil.
I say this because I think the Ministers sitting on the Treasury Bench know about the cost pressures. I served in a Committee on a statutory instrument with the Minister for Apprenticeships and Skills, where we talked about how we could make provision for colleges that find themselves in a position of insolvency. Well, that tells us everything, doesn’t it? We have not had that until now, but the Government have felt they had to make provision for it. I really think we need to think again about the funding for these colleges.
I know that many of my constituents feel they do not want to stay at school, but want to go to college and perhaps study a more vocational course, and Wolverhampton college has some fantastic vocational courses. However, even though there are cost pressures on schools—the Chair of the Public Accounts Committee, my hon. Friend the Member for Hackney South and Shoreditch (Meg Hillier), set those out very eloquently—they are nothing compared with the cost pressures on further education colleges. I am trying to strengthen the arm of Ministers, and I implore them to put more pressure on the Treasury and to make some different decisions about the amount of money going to these colleges.
My second point—I have in a way done this the wrong way around by starting off with the older category—is just to urge the Government for some clarity on the funding for maintained nursery schools. I have three maintained nursery schools in my constituency, and I am lucky that I have so many. They provide outstanding and good education, and they are a trailblazer for the rest of early years provision in my area. They can help children with special needs in a way that other early years provision is not able to do. I have seen at first hand some of the work they do with some of the most deprived children, and also with some of the children who have the most acute needs in my constituency.
It pains me to hear from those maintained nurseries that, because their teachers do not know what is going to happen beyond 2020, there is a real concern that some of the staff may well leave, as they have mortgages and things in their own lives they have to plan for. I really implore Ministers to hurry up with the assessment that I understand the Government are doing on the value for money of maintained nurseries. I can tell them that, in my own constituency, they are great value for money, and they will hear that from other Members across the House. Maintained nurseries need clarity, and they need it sooner rather than later. I hope that, at some point in the next few weeks or months, we will get that clarity.
My final point is about school funding. I am concerned about the real-terms cuts in school funding. I understand the Chair of the Education Committee when he says that we just argue to and fro, which I do not want to do, about figures and whether schools are really that badly off or not. I was very interested to hear his comparison with the NHS plan. I would certainly welcome a more long-term plan for schools in our country. Some primary schools in my constituency are telling me they are having to lay off teaching assistants and, in some cases, teachers because of pressures on their budgets.
I urge Ministers to look at this again, because unless we can provide a world-class education for our young children, we will not only fail to close the inequalities in our society; we will not thrive as a country because, as has already been said in this debate, this issue relates to productivity, to how we attract investment and to our overall prosperity.