Oral Answers to Questions
Felicity Buchan Excerpts(2 years, 5 months ago)
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David Johnston (Wantage) (Con)
Felicity Buchan (Kensington) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)
Since 2012, in the Wantage constituency, 14,000 local men and women have been automatically enrolled into a workplace pension. We thank the 2,410 local employers who are helping these employees to save from 8% of their earnings.
Guy Opperman
We keep all policies under review, and auto-enrolment got to 8% only in 2019. We will proceed with the 2017 auto-enrolment review by lowering the eligibility age and making it from the first £1 earned in due course. We will also look at all matters in terms of contribution rates on a longer-term basis as time moves on.
Felicity Buchan
I understand that 36,000 people in Kensington have been signed up through auto-enrolment, which is great news. What can my hon. Friend do to ensure that even more people in Kensington are signed up?
Guy Opperman
Where Kensington leads, the rest of the country follows. There is no doubt that 36,000 is a phenomenal number of employees who are saving the 8% through auto-enrolment. My hon. Friend will be aware that, in her community and in this country, less than 40% of women were saving in a workplace pension prior to 2012, and it is now 86%. Less than 24% of young people were saving in a workplace pension, and it is now 84%. This is a game-changing policy developed under successive Governments but pioneered by this Conservative Government.
Oral Answers to Questions
Felicity Buchan Excerpts(3 years, 11 months ago)
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Felicity Buchan (Kensington) (Con)
Mrs Pauline Latham (Mid Derbyshire) (Con)
Mims Davies
We are encouraging employers to create a range of opportunities through the kickstart scheme for all young people aged 16 to 24 who are at risk of long-term unemployment, including those who have disabilities. Our work coaches will help to identify those young people in need of any extra support available through the kickstart scheme and any other suitable provision to support them. Meanwhile, my hon. Friend will be interested to know that the wide-ranging opportunities in his constituency go to the approval board this week for consideration.
Felicity Buchan
The kickstart scheme is proving to be a great success in my North Kensington jobcentre, with many placements already made and a number—for instance, in gyms—awaiting the end of lockdown. Does my hon. Friend agree that it is critical that we get young people into work, especially in London, where the cost of living is so high?
Mims Davies
I absolutely agree with my hon. Friend: it is vital that we support young people into employment. As we know, they are often the most affected in these times of economic uncertainty. My hon. Friend will be pleased to know that in addition to kickstart, the DWP Kensington youth team is actively working with local partners, such as the Rugby Portobello Trust, to help young people in her constituency back into work.
Pension Schemes Bill [Lords]
Felicity Buchan ExcerptsMonday 16th November 2020
(4 years ago)
Commons ChamberRead Full debate Pension Schemes Act 2021 View all Pension Schemes Act 2021 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Consideration of Bill Amendments as at 16 November 2020 - (16 Nov 2020)
Gareth Davies (Grantham and Stamford) (Con)
It is a great pleasure to speak in this debate today, as it was on Second Reading and in Committee. I would like specifically to address amendment 16 to clause 124. Let me start by saying how great it is that we have cross-party support for policies that push forward our efforts on climate change. We should all be very proud of the fact that we are one of the first major countries to legislate to become a net zero country by 2050. I have long talked about the influence and power of financial services and financial markets to move things forward, but sadly I cannot support amendment 16. I will set out three reasons. The first is the unintended consequences, the second concerns divestment and the third relates to focus.
First, amendment 16 is well-meaning, but it would have unintended consequences. I fear fund managers would be limited in what they were able to invest in. I say that because of the limited environmental, social and corporate governance data in certain asset classes in certain markets around the world. If we look at emerging markets, private equity or in small-cap companies, ESG data is sporadic at best. It is getting better all the time, but at this point in time the market is not mature enough for the amendment to apply for managers. I fear that managers would be limited, and that would result in sub-optimal investments and mean that they could not fulfil their fiduciary responsibility.
Felicity Buchan (Kensington) (Con)
Is my hon. Friend aware that industry agrees with his position? For instance, the Pensions and Lifetime Savings Association has stated that on behalf of industry.
Gareth Davies
I am aware that the PLSA has stated that it is concerned about this amendment, for the reasons I have described. The second reason why I would agree with the association is my fear that the amendment will imply to trustees that they have to adopt a policy of divestment. As has been seen over decades, a divestment policy, as well-meaning as it is, does not actually change the things that people are seeking to change. Part of the reason is that a stock market is essentially a marketplace, so if someone wants to divest, somebody has to invest, and therefore there is a negligible impact on the underlying company. That is why for tobacco, for climate change and for guns in the United States, the divestment policies adopted by other pension funds just have not worked. I fear that such provision would cause confusion around divestment for pension trustees. It is very hard to draw a line where the policy ends. Some may claim, or desire, that they divest from oil and gas, but where does it end? There are other sectors that clearly contribute to climate change—whether it be haulage companies, taxi companies, car companies, or aviation companies—so where does it end? That causes some confusion for trustees. An investment policy should be put in place at a ground level.
Thirdly, when compared with engagement as an investment strategy, a divestment approach is just a very weak policy. I say that as somebody who comes from fund management and managing an ESG business. As owners of companies, we could call on chief executives and chief financial officers to engage on ESG issues such as climate change. We could vote at annual general meetings. We had those companies at the table to be able to influence them. If we divest, we lose that influence—we lose that ability to change and influence a company.
Guy Opperman
I beg to move, That the Bill be now read the Third time.
This is a hugely—
Felicity Buchan
My hon. Friend is aware of my constituent Mr John Walker’s landmark case in the Supreme Court, where he secured equal pension rights for single-sex married couples. Will my hon. Friend assure me that although that currently is the law in the UK, he will find a way to enshrine it in statute?
Guy Opperman
I congratulate my hon. Friend on making her point so eloquently and intervening speedily in this short Third Reading speech. I can confirm that the law stays as per the Supreme Court decision, even after we leave the EU. I stand by what I wrote to her in the detailed letter that I drafted to her in October, a copy of which I will place in the House of Commons Library to set the matter firmly on the record.
Before I was so generously interrupted, I was saying that this is a hugely important piece of legislation with cross-party support, for which I thank colleagues from all parties, including the hon. Member for Birmingham, Erdington (Jack Dromey), who cannot be with us tonight. The Bill will affect the lives of millions of our constituents throughout the country; make pensions safer, better and greener; stop scams; introduce CDCs; create pension dashboards; and crack down on callous crooks who take away our constituents’ pensions. It also legislates for a new type of pension scheme, establishing the dashboard and making pensions fundamentally greener. I commend the Bill to the House.
Kickstart Scheme
Felicity Buchan Excerpts(4 years, 2 months ago)
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Felicity Buchan (Kensington) (Con)
The future jobs fund was not a 100% success, although it had many merits. Will my right hon. Friend outline what improvements have been made in the kickstart scheme?
Dr Coffey
My hon. Friend is right; the future jobs fund did have some good achievements, and we have learned from what worked well and what did not work so well. The main thing I would point out is that this is a much bigger programme with a much wider range of involvement and, even if some of that is through an intermediary, every organisation can easily get involved. We have simplified the criteria. We are still making sure that these are new additional roles, but it is important that we try to get some of these placements under way. I am sure that we will have some very lively kickstarters starting their new jobs before the end of the year.
Oral Answers to Questions
Felicity Buchan Excerpts(4 years, 8 months ago)
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Felicity Buchan (Kensington) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)
As my hon. Friend will be aware, this was introduced in 2012 and has been a cross-party success story. It is fantastically good news for her constituents in Kensington, where 39,000 residents are signed up to an 8% automatic enrolment. Due thanks need to be given to the 5,300 local businesses who are supporting individual constituents, who are receiving 8% per annum workplace savings.