Women’s State Pension Age Communication: PHSO Report
Gareth Snell Excerpts(5 days, 9 hours ago)
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Liz Kendall
I am proud of the last Labour Government’s record on helping the lowest-paid women pensioners and of the improvements that we delivered. This is not about that issue; this is about the way that the state pension age was communicated. If the hon. Lady wants a different approach, the SNP Government in Scotland can provide that by using the £4.9 billion settlement—the biggest ever in the history of devolution—that we have provided.
Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
This will be a sad moment for the 4,000 women in Stoke-on-Trent Central who I have campaigned alongside for justice and a fair transition. I understand the Secretary of State’s need to balance the budget, given what was left by the previous Government, but is this a case of no compensation now because of the economic circumstances that we find ourselves in, or is it no compensation ever? If we find ourselves in the future in a much better economic state, will she consider re-addressing this issue and seeing what compensation might be available for the women who were affected?
Liz Kendall
We do not agree with the ombudsman’s approach to injustice or compensation. We do not believe that sending those letters earlier, even though we should have done, would have made the difference that the ombudsman claims. We do not believe that, given that 90% of 1950s-born women knew that the state pension age was increasing, a flat-rate compensation scheme costing up to £10.5 billion is a fair or appropriate use of taxpayers’ money. However, we will learn lessons from that maladministration to ensure that it never happens again.
Income Tax (Charge)
Gareth Snell Excerpts(1 month, 2 weeks ago)
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Mel Stride
My right hon. Friend is right that this is another broken promise. At the general election, the now Secretary of State for Environment, Food and Rural Affairs gave an unequivocal guarantee to farmers across the country that there was no question of farms being brought into inheritance tax. There is a good reason for the exemptions and relief, because if inheritance tax is levied on family farms that are passed down to another generation, those farms will have to be broken up, with parts sold off to pay the tax.
I am glad that my right hon. Friend the Member for Gainsborough (Sir Edward Leigh) mentioned this, because the OBR has said that, by 2030, this measure will raise the princely sum of £520 million, which is enough to run the national health service for just one day. Has a more modest sum ever raised so much misery? I think not.
The Chancellor assured us that she will not fiddle the figures by changing the fiscal targets, yet we have seen the fiscal targets changed to allow this Government to borrow an additional £140 billion.
This is not a good time for the Secretary of State to talk about pensioners, but she mentioned them at the end of her speech. They were so badly let down by the means-testing of the winter fuel payment, and they were not told in advance to expect anything like it. Ten million pensioners across the country will lose up to £300 as a consequence of this measure. The Government claim that only the wealthiest, only the millionaires, will be affected, but two thirds of pensioners below the poverty line will have this benefit removed.
Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
I am grateful to the new shadow Chancellor for giving way. I could be wrong, but was he not the Secretary of State who took through the legislation to suspend the triple lock—the one and only time it has been suspended—which has since cost pensioners £500 a year every year?
Mel Stride
We fought for the “triple lock plus” in our manifesto, which would have spared millions of pensioners from being dragged into income tax, many for the first time, under this Government’s arrangements. There were, as the hon. Gentleman knows, particular circumstances in October 2022, including inflation surging above 11%.
What are the broad effects of this Budget? The tax burden will rise to the highest level in the history of our country—higher than in 1948, when we first started to collect the data. We will be borrowing a staggering £140 billion over the next five years. What are the consequences of that, apart from passing on debt to future generations, who will have to pay it by way of higher taxation in the future? It is the crowding-out of private business investment, which this Government say they are eager to drive up.
If we look at OBR’s forecast from the spring Budget last year and for inflation in every year under this Budget, it is higher in every single year. Why? Because there has been a huge fiscal splurge, particularly in the first two years of the forecast, that will require a monetary response, so interest rates will stay higher for longer. That will mean, the OBR estimates, an extra 0.25% on mortgages—or over £400 extra for the average family, up and down the country. According to the OBR’s forecast, wages will stagnate across the period, with lower real household disposable income than under the spring forecast, when the Conservative party was in government.
I am surprised that the Secretary of State raised the subject of living standards. The Joseph Rowntree Foundation estimates:
“The average family will be £770 worse off in real terms by October 2029 compared with today.”
I am also surprised that she raised the issue of poverty. When we were in government, we faced so many lectures from Labour Members, while we were bringing poverty down—the number of pensioners in absolute poverty fell by 200,000.
Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
I would like to place on the record my congratulations to my hon. Friends the Members for North Somerset (Sadik Al-Hassan), for Wrexham (Andrew Ranger) and for Huddersfield (Harpreet Uppal) on their amazing maiden speeches today.
I listened on Wednesday to the contribution from the hon. Member for West Worcestershire (Dame Harriett Baldwin)—I notified her that I was going to quote her speech—who said that this was
“a Budget of the public sector, by the public sector, for the public sector.”—[Official Report, 30 October 2024; Vol. 755, c. 854.]
She said that as though it were a bad thing. I urge the Government to reject the false dichotomy being set up by the Conservative party, in which investment in the public sector is somehow a drain on the national expenditure, and putting money into our public services is somehow inherently bad for our society and our state.
When I speak to businesses, yes, they raise with me their concerns about national insurance increases— I think businesses have done so with every Member across this House, and it would be foolish to suggest otherwise—but they also ask me questions like, “Can you fix the A50 so we can expand and get more things moving down from JCB?” and “Can you get some proper mental health support so we can get workers back to work quicker when they are struggling with their mental health?” They tell me that they struggle with the supply of skilled young people and are asking desperately for investment in skills to make sure that there is a ready pipeline of young people who can do those jobs. It is therefore completely fatuous to suggest that the investment that this Government are putting into the public sector will be in some way detrimental to the growth of our economy and the success of our private industry.
Gareth Snell
No, there is no time—I am terribly sorry.
I say this as one of those pesky trade unionists the Conservative party seems in such opposition to: when the Conservatives talk about the significant pay for trade unions, first of all, it is not for the trade unions, but for the members of those trade unions, all of whom are working people. Most of them live in Conservative Members’ constituencies, and some of them may have even voted for them—sadly, not all trade unionists vote Labour. However, their pay goes into their pockets, and from there it goes on to their high streets and the shops in their communities. It is not hoarded away as offshore wealth. It is not put into some clever accountancy scheme. It is used to buy kids’ school shoes. It is used to buy Saturday morning breakfast in the local café. It goes back into the economy in a way the Conservatives simply seem to misunderstand.
In the short time I have remaining, I say to the Government: please do not listen to the siren voices that suggest that the investment we are putting in is bad for our economy. It is not. It is good for our state, it is good for our country and it is good for our economy.
Social Security
Gareth Snell Excerpts(3 months, 1 week ago)
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Mel Stride
Thank you, Madam Deputy Speaker. That slightly lengthy question might be better addressed by way of a rather lengthy letter to the leaders of Birmingham city council.
Of course, all politics is about choices, and what this Government have done is cave in to their trade union paymasters. They have settled way above inflation. Junior doctors—22%. Train drivers—14%. They have stood up for their trade union paymasters on the backs of vulnerable pensioners, and that is not right. If it is not the case that the trade unions are running the Labour party, hands up everybody on the Government Benches who has not received money from the trade unions for their campaigning or their private office. [Hon. Members: “One!”] One person. Therein lies the truth about who is running the Labour party.
Of course, we have seen all of this before. Under the last Labour Government, we had the 75p pension increase, we had Gordon Brown’s stealth tax on private pensions—£118 billion in total—and was it any surprise that we ended up with the fourth highest level of pensioner poverty across the whole of Europe?
Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
The right hon. Gentleman talks about choices and pensioners. When his party chose to suspend the triple lock in 2021 and give a below-inflation increase to pensioners, costing them £500, what was his concern then? Why did he say nothing?
Mel Stride
The hon. Gentleman is entirely wrong. We went into the election promising the triple lock plus. Unlike his party, under which millions of pensioners are going to be dragged into income tax spend, many of them for the first time, we were prepared to stand up and say that we would not do that.
Oral Answers to Questions
Gareth Snell Excerpts(5 years, 5 months ago)
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Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)
The Department does not publish statistics on the number of people who receive a state pension below the full new state pension amount. As of November 2018, the average amount of the new state pension that people received, including any protected payments, was £154.91 per week.
Gareth Snell
I thank the Minister for that answer. While he may not have that figure, I can tell him that two of the people who do not receive that amount are Bob and Hilary Heyes from my Stoke-on-Trent constituency. Had they started to claim their state pension under the new state pension, they would have received the full amount because they had 35 qualifying years, but because they were born before 1951 and 1953 respectively, they receive considerably less. What would the Minister have me tell Mr and Mrs Heyes when they come to constituency surgery next?
Guy Opperman
It is hard for me to comment on the specifics of the particular case. If the hon. Gentleman writes to me in advance of the forthcoming constituency surgery, I will write back to him and he can hand over the letter.
Oral Answers to Questions
Gareth Snell Excerpts(6 years, 7 months ago)
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Ms McVey
My right hon. Friend is living proof of social mobility—her family came here from Uganda, started a newsagents and expanded their business—and is right to ask: how can we get people into a job, and how can we help with recruitment and apprenticeships? I am working with the Recruitment and Employment Confederation to look at those opportunities and also with the Secretary of State for Education—that is where responsibility for apprenticeships is held, but we will do all we can to support my right hon. Friend.
Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
In Stoke-on-Trent, one of the best ways of achieving social mobility is through our wonderful further education system, so will the Secretary of State please impress upon her colleagues at the Department for Education that properly funded further education, whether that be sixth-form colleges or other establishments, is needed and that they must make sure it is provided?
Ms McVey
I will send the hon. Gentleman’s message to the Department for Education, but in this Department we do as much as we can, whether through traineeships or sector-based work academies, to support young people. It is about choice: do they want a job, an apprenticeship or further education?
Personal Independence Payment
Gareth Snell Excerpts(6 years, 10 months ago)
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Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
What we are hearing about today is a court judgment that found the Government’s policy wanting, but the Secretary of State has come to the House seeking plaudits for now not appealing that decision, and that is frankly unacceptable. While it is right for those who were not given the help and support that they needed to get a backdated payment, that payment does not remedy the trauma that they faced during the years when they did not have support. Will the Secretary of State offer an unequivocal apology from the Dispatch Box for the consequences of her Department’s policy? Whether intended or not, it was her Government’s decision that led to people struggling at home, and that is simply not right.
Ms McVey
That was another reason for making a written statement, as well as the time constraints and what we had to do to adhere to the legal ruling. I have not come here today for plaudits. I have come here to do what is right and to explain what is right. That is what I have done, and that is the key thing for all our constituents and the people who are watching this closely at home. We have made a decision. I believe that it has been accepted on both sides of the House, and we are going to get things right.