State Pensions: UK Expatriates
Gerald Howarth Excerpts(7 years, 8 months ago)
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Richard Harrington
Maybe not in this life.
To return to the serious point, on the face of it, tens of millions of pounds does not seem a lot, but the annual costs of the policy would converge with those of full uprating in the medium to long term. That compounds the situation, because if we changed the policy now to either full or partial uprating, in 25 or 30 years, the vast majority of pensioners—they would be new pensioners—would receive pension payments as if they had been uprated for the whole time. Everyone knows that, whichever Government are in power after the election—I think the hon. Member for Leeds North West suggested that they would be of a certain colour, although I may have misunderstood him—resources are scarce, and Governments have to make judgments about how best to use them. That is what government is about.
Although the proposed spend each year might appear to be small, it would soon add up to a much more significant £500 million extra each year on about 500,000 pensioners. That might look to others as though the Government were disproportionately favouring those who have gone abroad. Much of that spending would not in fact increase the money that a poorer pensioner living abroad would receive. In Australia, for example, the age pension is means-tested, with the Australian Exchequer in some cases keeping up to 50%. New Zealand, too, requires people with overseas pensions to claim them; they are then taken into account, and the New Zealand benefit or pension is reduced by the amount of UK pension. In addition, since most people who move abroad to those countries do so before they have reached pensionable age, most would have been able to build up decent pension provision in the country to which they emigrated, if they went when they are younger.
For most people, the decision to move abroad is voluntary; it remains a personal choice dependent on the individual’s circumstances. The Scottish National party spokesperson, the hon. Member for Rutherglen and Hamilton West, said in her summing up that people may not have been aware that they were moving to a country with different pension arrangements. Others have mentioned the line and short distance between Canada and America. However, people who move abroad find out about so many things, including visas; they have to.
Sir Gerald Howarth (Aldershot) (Con)
I apologise to you, Madam Deputy Speaker, and to the Minister for not having attended this debate. I had intended to do so, but I had other commitments. As I shall shortly be leaving the House, perhaps I could put on the record my support for our overseas pensioners, who have been badly treated. Many of them have almost been obliged to move abroad for family reasons, so it is not the case that they all made a voluntary choice. In many cases they felt obliged to move to support their families and they feel trapped. They also feel a sense of betrayal.
Richard Harrington
I perfectly accept that in some cases people have no practical choice, but many who emigrate decide to do so for a number of reasons, including personal ones. When people move away, pensions are, by and large, part of their calculations, as is the cost of living.
The hon. Member for Ross, Skye and Lochaber was eloquent, as usual, in making his point about uprating the state pensions of people residing in the European economic area and Switzerland. It is a requirement of UK law that those payments be the same as those made in the UK. However, as everyone is aware, the article 50 process is under way, and in accordance with what happened in the referendum and everything that has been discussed in this House, the UK is leaving the European Union. The Prime Minister has made clear that securing reciprocal rights is one of the top priorities. The rights and entitlements that will apply following the UK’s exit, such as those relating to the UK state pension paid to individuals living in member states, are subject to the wider negotiation on our future relationship with the EU. The Government have made it clear that we plan to strike an early agreement on the rights of EU citizens living in the UK and, obviously, vice versa. As the Prime Minister has said, it is in no one’s interests for there to be a cliff edge when we leave the EU, so the current laws and rules will, wherever practicable, continue to apply, to give certainty to individuals and businesses.
Food Banks
Gerald Howarth Excerpts(11 years ago)
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Maria Eagle
The hon. Gentleman first asked me why the previous Government did not refer people who needed assistance to food banks. In a parliamentary answer in September, his own Government said that Jobcentre Plus only signposts people to food banks and does not refer people to them or issue vouchers, so there is no difference whatever.
Maria Eagle
No. Let me make it clear that I will not take many interventions because of the number—[Interruption.] I am seeking to give hon. Members in all parts of the House a chance to get into the debate, and it will not help if I take three quarters of an hour to open it.
Maria Eagle
I will give way to the hon. Member for Aldershot (Sir Gerald Howarth).
Sir Gerald Howarth
I am most grateful to the hon. Lady. She seems to be placing responsibility for all this at the door of the coalition Government. Is she aware that the excellent food bank in Farnborough was established in 2009 as the 49th Trussell Trust food bank? Does not that illustrate that it was the destruction of the public finances by her party in government that has been responsible for the disaster that is affecting this country?