Private Sector Pensions

Debate between Esther McVey and Jonathan Edwards

Monday 22nd January 2018 Commons Chamber

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

As part of the Tata Steel-Thyssenkrupp merger, workers faced the slashing of their pension funds if they joined the PPF or if they joined a new scheme with reduced benefits. Others opted for personal plans, leading to a feeding frenzy of mis-selling. Does the Secretary of State think the steelworkers of Wales were treated fairly, considering that the new company’s annual sales are estimated at £15 billion?

[Ms McVey]

We have to make sure that we look after people with pensions. We also have to ensure that we keep companies going as a viable concern. At the time, this was deemed to be the best option for the future. We always have to make sure it is the best solution at the time, and we have to secure future legislation to ensure that we have better regulation and better law in place.

Financial Guidance and Claims Bill [Lords]

Debate between Esther McVey and Jonathan Edwards

2nd reading: House of Commons
Monday 22nd January 2018 Commons Chamber

[Ms McVey]

I will make a little progress before taking any more interventions, because otherwise I will never get through this, and I need to.

The second part of the Bill makes provision to strengthen the regulation of claims management companies. As many hon. Members will be aware, there is evidence of malpractice in the claims management sector in the form of disproportionate fees, nuisance calls, poor service, and the encouragement of fraudulent claims.

Following an independent review of claims management regulation led by Carol Brady, the Government announced in the 2016 Budget their commitment to clamping down on malpractice in the sector. Part 2 delivers this commitment in two key ways. First, it transfers regulatory responsibility for claims management regulation from the Claims Management Regulator, a unit based in the Ministry of Justice, to the Financial Conduct Authority. Secondly, it introduces new measures to ensure that consumers are protected from being charged excessive fees. Those measures include a duty on the Financial Conduct Authority to make rules restricting fees charged for services provided in relation to financial services and products such as payment protection insurance claims, and a power for the FCA to introduce caps in other claims sectors should the need arise.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

It is great to see you back in your rightful place, Mr Deputy Speaker.

May I take the Secretary of State back to the first part of the Bill and the devolved functions in terms of debt advice? How will they be funded? Will it be based on a percentage share—a population share—of expenditure in England? Will it be based on Welsh need, or, as I read the Bill, will the Welsh Government send the Treasury a bill for its functions and then that will be levied by the FCA?

[Ms McVey]

I reiterate what the hon. Gentleman said by welcoming you, Mr Deputy Speaker, to the Chair.

The money will be collected. At the moment, what is spent and how it is spent is down to the new body being formulated. However, it will be done by Government grants and then money will be taken back—financial bodies will be paying in. Obviously, going forward, where there is most need is where most money will be going. That is how it will be viewed.

Remploy

Debate between Esther McVey and Jonathan Edwards

Monday 10th December 2012 Commons Chamber

[Esther McVey]

My hon. Friend makes a good point. No, I have heard no ideas on how that gap would be filled—it would be another spending commitment from the Opposition requiring more money. They have lots of things they oppose but no ideas about what they would actually do.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

The previous Government closed the Brynaman Remploy factory in my constituency. In the space of a year, this Government have announced the closure of the remaining nine Remploy factories in Wales—different Government, same policy. Why not just agree to the Welsh Government’s reasonable request for devolved control over the Welsh Remploy sites?

[Esther McVey]

I feel that I have already answered that question in responding to the hon. Member for Rhondda (Chris Bryant). It is part of a commercial process, and should that offer be the best for the staff at Remploy, that will be the path we take. Should somebody else come up with a better offer to support more disabled people, we will obviously pursue that, because we want to see more of these people in work.