Oral Answers to Questions Debate
Full Debate: Read Full DebateGuy Opperman
Main Page: Guy Opperman (Conservative - Hexham)Department Debates - View all Guy Opperman's debates with the Department for Work and Pensions
(4 years, 9 months ago)
Commons ChamberYou have impeccable timing, Madam Deputy Speaker.
Workplace pension participation rates have more than doubled since the introduction of automatic enrolment under the coalition Government in 2012, rising from 42% in 2012 to 85% in 2018. In West Worcestershire, my hon. Friend’s constituency, 9,000 eligible jobholders have been automatically enrolled, and thanks are due to the 2,600 local businesses that are supporting them.
This has truly been one of the great policy successes of the last decade, but many would argue that people are still not saving enough for a comfortable retirement. Does the Minister plan to use other nudge techniques, such as automatic uplifts whenever a person gets a pay rise, to encourage saving for old age?
We have the 2017 review, which we continue to monitor and will implement going forward. Automatic increases are not part of the Government’s present plans, but I am actively looking to learn from private sector companies that are carrying out similar initiatives. I welcome my hon. Friend’s interest and would be happy to discuss this in more detail.
Auto-enrolment, the creation of the last Labour Government, has transformed the lives of millions, with 10 million more now saving into a workplace pension, but 5 million people are still not covered because they are too young, because they earn too little or because they are self-employed.
The hon. Member for West Worcestershire (Harriett Baldwin) is right that 8% cannot be the summit of our ambition to ensure security and dignity in retirement. Does the Minister agree that 8% cannot be right, and will he agree to cross-party talks on putting right that wrong?
As the hon. Gentleman knows, we frankly speak far too often—virtually on a weekly basis —to ensure a cross-party approach to pensions policy. He is right that automatic enrolment was conceived under a Labour Government, implemented under the coalition and brought forward by the Conservatives. I accept that 8% is not enough going forward, but we await the 2017 review, the implementation of that review and further discussions on an ongoing basis.
This Government need to demonstrate that they stand on the side of self-employed people. Given that millions of self-employed people are not saving enough for their retirement, what update can the Minister provide the House on the incentives and encouragement we are providing for self-employed people to pay into a pension?
As a formerly very fat, self-employed jockey and a self-employed white-collar barrister, I fully appreciate the issues concerned. I agree with my right hon. Friend that these are issues we have to address. He will be aware that we are trialling self-employment matters on an ongoing basis with the National Employment Savings Trust and a variety of private sector organisations. We welcome unions and other organisations that wish to be part of that, and it is front and centre of what we are trying to do.
Too many young people do not save for their pensions, so how can the Minister ensure that young workers are better represented in workplace pension schemes?
The statistics are actually getting better by the minute. In 2012, only 35% of young people aged between 22 and 29 saved into a workplace pension. Now 85% of 22 to 29-year-olds save, but there is more we can do, including for the self-employed. The 8% that is being saved has made a transformational difference, and the opt-out rate among the young is the lowest of all the cohorts.
The Government are committed in legislation to undertake a review of state pension age every six years. The 2017 independent review was by John Cridland. The next review will be conducted by 2023 and will give consideration to the latest life expectancy projections. The latest Office for National Statistics projections of cohort life expectancy, published in January 2020, showed that it is projected to continue to increase, and the WHO Global Health Observatory data show that people in the United Kingdom have better life expectancies than European or world averages.
The new Marmot review has shown that a decade of Tory policies, from cruel benefit cuts to the unfair treatment of the WASPI women, have stalled life expectancy and increased the years spent in ill health for the poorest in our society. Which Tory policy would the Minister reverse first to begin to undo that damage?
I am afraid that the hon. and learned Lady is wrong. I will quote from the Marmot review, which says on page 13 that
“Increases in life expectancy have slowed since 2010”,
but then adds at page 15 that
“Life expectancy at birth has been increasing since the beginning of the 20th century.”
Changes to state pension age were made by successive Governments from 1995, including the Labour Government from 1997 to 2010, and addressed the long-standing inequality in pension age. This includes the Pensions Act 2007, which I believe the hon. Lady supported. Women continue to have the same eligibility for support from the welfare system as men with the same date of birth, and this country presently pays more in welfare support than ever before.
Approximately 6,100 of my constituents have been affected by the equalisation of the state pension age, and many have told me of the financial hardship that they and their families are suffering because of the change and their inability to work any longer. Last week, there was another lobby of Parliament that I, together with lots of people who will be in the House today, attended—it was packed. Another one is coming up soon. These women stressed to me last week that they are not going away and are not going to give up, so what is the Minister going to do to give some justice to those amazing women?
The hon. Lady will be aware that full restitution would cost something in the region of £215 billion and that a case was before the courts last year: on all grounds, these ladies lost their case. Clearly, that matter is subject to appeal, but the case was lost in respect of every ground, including notice.
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.
The Government tried to justify introducing the new bereavement support payment in April 2017 on the grounds that it modernises support, but couples who are not married or not in a civil partnership are not eligible. Last month, the High Court in England found that that is incompatible with human rights legislation and discriminates against children of unmarried parents. The Prime Minister has admitted that that is an injustice, so when will the Government put it right?
Four out of 10 older people say that the TV is their main source of company, yet as a result of Government decisions, millions of older pensioners are about to lose their free TV licences. The Budget is the last opportunity for the Chancellor to step in and overturn this unfair policy. Will the Secretary of State urge him to do so?
As the right hon. Lady knows only too well, this is a BBC decision. The Government remain very disappointed at its decision and urge it to think again.