Oral Answers to Questions

Guy Opperman Excerpts

Monday 21st May 2018 Commons Chamber

[Mary Robinson (Cheadle) (Con)]

10. What progress is being made on automatic enrolment for employees in Cheadle constituency.

[The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)]

Automatic enrolment is a cross-party success story, with more than 9.6 million workers enrolled in pensions saving and more than 1.2 million employers meeting their duties. Approximately 9,000 eligible jobholders have been automatically enrolled in my hon. Friend’s constituency, with 1,600 employers meeting their duties and supporting them.

[Mary Robinson]

Typically, the young are a difficult demographic to encourage to save early, as retirement seems a distant milestone to them. What steps is the Minister taking to encourage more people entering the workforce to stay in their workplace schemes to ensure that they have steady incomes when they retire?

[Guy Opperman]

My hon. Friend is right, and younger people agree with that. When NOW: Pensions carried out research, it found that only 4% of its 22 to 29-year-old members opted out. Our “Automatic enrolment review 2017” set out our plans to make saving the norm by lowering the age of automatic enrolment from 22 to 18. When an employee pays in, the employer pays in as well, and the Government pay in the tax relief.

[Adam Afriyie (Windsor) (Con)]

11. What progress is being made on increasing private pension provision in Windsor constituency.

[The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)]

Private pensions have been transformed by automatic enrolment, which is a social reform of which all Members should be proud. It involves behavioural economics and nudge theory. In my hon. Friend’s constituency, 30,000 eligible jobholders have been automatically enrolled and 2,310 employers have done their duties.

[Adam Afriyie]

I am delighted with the Government’s progress in helping people to save for retirement, particularly through lifetime ISAs and workplace pensions. Does my hon. Friend agree that, given the open banking initiative and the pensions dashboard, the FinTech industry can help to nudge people to save more and create greater competition in the private pensions sector?

[Guy Opperman]

The pensions industry can and should make the most of the opportunity presented by FinTech. We believe that if it is to succeed, it will be vital for industry and Government to collaborate in the development of the pensions dashboard. As others countries have shown, pensions dashboards are a fantastic way of giving people access to pension information in a clear and simple form, bringing together an individual’s savings in a single place online.

[Jeremy Quin (Horsham) (Con)]

rose—

[Jeremy Quin]

Young? You flatter me, Mr Speaker. I already had my excuse: I was going to say that we were all taking a close interest in the Windsor constituency at present. My particular interest, in relation to Windsor pensioners, is in the fact that they are being held back by a lack of knowledge about their pension provision. Does my hon. Friend agree that a properly constituted pensions dashboard would encourage pensioners to take their own fate in their hands, and would encourage accountability?

[Guy Opperman]

It is true that Windsor is the centre of the universe, and we should all congratulate Prince Harry and Meghan on their marriage at the weekend. It is also true that Windsor, and all parts of the United Kingdom, will benefit from the pensions dashboard. The internet has transformed travel, insurance and other businesses when they have gone online, and we believe that when the pensions industry comes out of the Victorian age and goes online, there will be great progress for everyone.

[Graham P. Jones (Hyndburn) (Lab)]

12. What assessment she has made of the appropriateness of the eligibility criteria for attendance allowance.

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[The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)]

The Government recognise that customers need value for money, but lowest cost does not always mean best value. By working with the Financial Conduct Authority, we believe price transparency for trustees can drive effective competition and allow asset managers who can add value to thrive.

[Kelvin Hopkins]

The Minister will recall my earlier question to him on 9 October last year, but is it not the case that all essentially private pension schemes, defined benefit or not, incur costs and uncertainties that significantly reduce benefits to savers, and the only way to minimise such costs is to establish a universal full-blown defined contributions and defined benefits state earnings-related pension scheme for all?

[Guy Opperman]

The hon. Gentleman will be aware that the Financial Conduct Authority published the final rules in September 2017, and that independent governance committees on personal workplace pensions have had rules in force since January. On his discrete point, surely auto-enrolment, with 9.6 million people in this country signed up to it, and the enhanced state pension, which stands at over £1,250 more than in 2010, are the answers to his question.

[Robert Halfon (Harlow) (Con)]

16. What financial support is available for disabled people who incur costs relating to their condition which welfare payments are not designed to meet.

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[The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)]

It was a Labour Government who created the Pensions Regulator in 2004, and I think we can all agree that there are lessons to be learned from Carillion and other recent high-profile cases. However, there are two options. We either try to discredit an organisation and run it down or—this is my choice—support the regulator, give it the further powers that we set out in detail in the defined benefit pension schemes White Paper and stress that the vast majority of employers do right by their employees.

[Jack Dromey]

The DB White Paper proposes criminal charges for directors who neglect their duties. Would Carillion’s directors go to jail under the proposed changes to the law? If not, why not?

[Guy Opperman]

I look forward to working with the hon. Gentleman as we steer the DB White Paper into legislation, but the legislation is looking at the future—it is not necessarily retrospective.

[Henry Smith (Crawley) (Con)]

T6. Universal credit is scheduled to be introduced in Crawley on 6 June. What support will be offered to my constituents who will be affected?

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[Guy Opperman]

My hon. Friend is right to say that the state pension has been enhanced and increased; the new state pension has gone up to £164-plus. There is fantastically good news on auto-enrolment in her constituency, and I will write to her with the specific details.

[Clive Efford (Eltham) (Lab)]

My constituent was called back early for a PIP assessment, which made no reference to the fact that he has an inoperable brain tumour, which has led to his having intractable epilepsy and Parkinson’s disease. Can the Minister explain why he was recalled for an assessment?

[James Cartlidge (South Suffolk) (Con)]

My hon. Friend the pensions Minister is doing a lot of work on auto-enrolment for the self-employed. Has he looked specifically at the so-called worker category, in which a person might do their self-employed work for one large firm that could, with willing and regulatory help, roll them into its employee scheme?

[Guy Opperman]

I would be delighted to take up that specific example and will definitely take it forward. I remind my hon. Friend that 12,000 people have been auto-enrolled in his constituency.

[Colleen Fletcher (Coventry North East) (Lab)]

The latest quarterly figures show that in Coventry, 81% of PIP, 76% of ESA, 83% of income support and 100% of jobseeker’s allowance appeals heard by Her Majesty’s Courts and Tribunals Service were decided in favour of the appellant. Does the Minister accept that the high proportion of successful appeals highlights the flawed nature of the DWP’s decision-making processes?