Oral Answers to Questions

Guy Opperman Excerpts

Monday 21st March 2022 Commons Chamber

[Mr Philip Hollobone (Kettering) (Con)]

2. How many and what proportion of state pension claimants in Kettering constituency claim pension credit.

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

This Government provide more than £5 billion of pension credit. In August 2021, there were 1,864 people receiving pension credit in the Kettering constituency. That accounts for approximately 10% of those in receipt of the state pension in the Kettering constituency in broad terms.

[Mr Hollobone]

Pension credit is largely unclaimed across the country; there could be 4,500 people in north Northamptonshire who are eligible but not claiming. Those who do claim it get extra help with council tax, heating bills, dental treatment and TV licences. Would the Minister be kind enough to join me in Kettering at an older persons fair that I am organising in the summer so that we can encourage the take-up of pension credit in the Kettering constituency?

[Guy Opperman]

Rumours had reached me of the Kettering older persons fair, which I believe is taking place on Friday 1 July. All roads lead to Kettering on that occasion. I would be honoured and privileged to attend to support my hon. Friend, who is a doughty champion of his constituency, and all the good charities, such as Age UK and Citizens Advice, that are working hard to get those numbers up, which is what we all want to do.

[Mr Speaker]

We now come to the Chair of the Select Committee Stephen Timms.

[Stephen Timms (East Ham) (Lab)]

The Minister could have a busy summer ahead. Take-up of pension credit remains low: an estimated 850,000 pensioner households across the country are not receiving the help that they are entitled to. The Department could feasibly work out who those households are and simply make them an award of pension credit. Given the scale of the current cost of living crisis, will the Department commit to an ambitious target for increasing the take-up of pension credit across the country and to a much more ambitious campaign to promote it?

[Guy Opperman]

I hate to disagree with the Chair of the Select Committee but he is wrong. As he knows, because he did this job in 2007-08, the Department does not know the exact numbers of a means-tested benefit that was set up by Gordon Brown specifically for circumstances where there is not the capability of saying exactly who can apply. The right hon. Gentleman is also wrong, however, that the stats are going up, not down, because they are up on the main income element.

[Stephen Timms]

indicated dissent.

[Guy Opperman]

The right hon. Gentleman is shaking his head, but he is wrong: they have gone up from 70% to 73%.

Huge efforts are also being made by the Department in the form of the work with the BBC and the utility companies, the pension credit taskforce, and all the letters that were written only this morning. I wrote to the right hon. Gentleman’s local paper and to that of the shadow Secretary of State, the right hon. Member for Leicester South (Jonathan Ashworth), to set out what we are doing to try to get people to take up pension credit and why we want everybody to do so.

[Scott Benton (Blackpool South) (Con)]

3. What steps she is taking to help support pensioners with the cost of living.

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[Henry Smith (Crawley) (Con)]

20. What steps she is taking to help support pensioners with the cost of living.

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

This year, we will spend more than £129 billion on the state pension and benefits for pensioners in Great Britain, including, as I said, £5 billion on pension credit for the vulnerable. Pensioners can also benefit from wider Government support with energy costs on top of the warm home discount, the winter fuel payment and cold weather support.

[Scott Benton]

I thank the Secretary of State for visiting Blackpool last week and for opening our brand-new, Government-funded youth hub, which will help young people to find work. Many pensioners will be extremely concerned about the recent increases in the cost of living. Alongside the measures that the Minister mentioned, what steps is he taking to ensure that those eligible for pension credit and the expanded warm home discount are able to apply and do so?

[Guy Opperman]

I know that the Secretary of State loved her trip to Blackpool and I congratulate my hon. Friend on his jobs fair, which I gather was a great success. He is a great champion for Blackpool and for the elderly residents in his community, and he is a big improvement on his predecessor. I am delighted to say that I wrote to the Blackpool Gazette this morning to set out in more detail how we are trying to get more people to take up pension credit, and it is definitely the case that we are doing that.

[Mr Speaker]

Order. I do not think it is becoming of anybody to condemn a Member of Parliament who has not been here for a long, long time. I do not really want to get into that, so we should think about what we say in future.

[Jonathan Ashworth (Leicester South) (Lab/Co-op)]

Has the Minister written to the local paper?

[Guy Opperman]

I have—I have written to all local papers in the country.

The bottom line is that there is a £200 discount on energy bills from this autumn for domestic electricity customers in Great Britain. There is also the £150 non-repayable council tax rebate and the £144 million of discretionary funding for local authorities to support households who need support but are not eligible for the council tax rebate.

[Mr Dhesi]

We know that the Government have already abandoned their promises on keeping the pensions triple lock and free TV licences for the over-75s. Now, before the soaring inflation and the soaring energy bills have even kicked in, thanks to the Government’s policies, almost a fifth of all pensioners in the UK are living in poverty. One million households are missing out on pension credits and thousands of pensioners, including in my Slough constituency, are bothered by delays, underpayments and other issues. When will the Government finally get a grip and resolve these problems?

[Guy Opperman]

With respect, there are 200,000 fewer pensioners in absolute poverty, both before and after housing costs, than in 2009-10. [Interruption.] With respect, the statistics are correct. The hon. Gentleman will recall, as a Labour Member of Parliament, that when the Government changed in 2010, the state pension was barely £100; the new state pension will be over £185 this coming year. It has risen by £2,300 in cash terms over the last eight years.

[Jonathan Gullis]

Claiming pension credit is a passport to a variety of other benefits for elderly residents in Stoke-on-Trent North, Kidsgrove and Talke, so could my hon. Friend advise local people what support becomes available to them if they submit a valid claim for pension credit?

[Jonathan Ashworth]

Have you written to the local paper?

[Guy Opperman]

I have. Literally hundreds of pounds a month can become available in the form of support for housing, council tax, the TV licence for the over-75s, NHS dental, warm home discounts and many other things—as I am setting out in my hon. Friend’s local paper. I am delighted to say that in so many different ways we are making the case that pension credit and the support is out there for our local residents.

[Henry Smith]

What success has my hon. Friend had in ensuring there is greater take-up of pension credit in the Crawley constituency, and will he consider joining me at the older persons fair that I am planning to hold later this year?

[Guy Opperman]

Again, all roads lead to Crawley, and quite right too. I would be delighted to attend my hon. Friend’s older persons fair in the summer or the autumn. It is definitely the case that there is a larger take-up of pension credits on an ongoing basis, and that is something we want to see going forward.

[Mr Speaker]

I call the shadow Minister, Matt Rodda.

[Matt Rodda (Reading East) (Lab)]

Pensioners who have worked hard and paid in all their lives face an absolutely enormous increase in the cost of living. Food prices are up, the cost of heating is going up and the cost of living as a whole is going up. This huge increase in inflation was clear before the invasion of Ukraine and it is crystal clear now, yet so far the Government have only come up with a buy-now-pay-later scheme for heating bills, so I would like to ask the Minister: just when will the Government start listening to pensioners and when exactly will they show even a shred of understanding of the dreadful situation facing our pensioners at this time?

[Guy Opperman]

The hon. Member will be aware that we raised state pension by 2.5% this year, when we did not need to do so, and it is going up by 3.1% in April, on top of which there is the support from the Chancellor with the £9 billion scheme set out only a few weeks ago. He will also be aware that huge efforts are being made to ensure there is take-up of the support benefits, which definitely assist. There is over £5 billion of them, but we want much more to be taken up.

[Mr Speaker]

I call the SNP spokesperson, Alan Brown.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Despite what the Minister says, the Government’s last-published figures show that there are 200,000 more pensioners in poverty compared with 2018-19, and it is going to get worse. Next month, pensioners will face an increase in their heating bills of over £800 a year compared with this time last year, and at the same time, due to breaking their triple lock promise, the Government will have taken £500 a year out of the pockets of pensioners. It is shameful. Does he agree that Wednesday represents the one opportunity the Chancellor has to reverse the breaking of the triple lock and to do something to help pensioners?

[Guy Opperman]

I wish the hon. Gentleman a swift recovery from the trip or fall that caused his injury.

It is definitely the case that pensioner poverty is declining. [Interruption.] The hon. Gentleman’s statistic is manifestly wrong on that: pensioner poverty is down in relation to 2009-10. Of course, there are conversations with the Chancellor, but it is absolutely the case that state pension has increased year on year on year, and we have never paid a higher state pension than we presently do.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

5. What steps she is taking with Cabinet colleagues to support people to upskill and change career paths.

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[Christine Jardine (Edinburgh West) (LD)]

23. What steps her Department is taking to tackle levels of poverty among pensioners.

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

The Government are wholly committed to alleviating levels of pensioner poverty. State pensions are at record levels, pension credit take-up is increasing, and we are taking a number of other steps to provide assistance. On the day of the launch of the spring booster, I should also stress the need for all pensioners, residents of care homes, and those like me and, I think, you, Mr Speaker, who are immunocompromised to get that booster jab. It is vital for everyone’s welfare.

[Mr Speaker]

The Minister is correct. Let us get people jabbed!

[Christine Jardine]

According to a recent report from Independent Age, 40% of pensioners will spend one year in poverty during any nine-year period, and with the situation set to be exacerbated by spiralling inflation and the Government’s removal of the triple lock, pensioners will now be £270 worse off every year. Does the Secretary of State agree with my party that we should double, and extend eligibility for, the winter fuel allowance?

[Guy Opperman]

The hon. Lady will be aware that the state pension rose by 2.5% last year, in circumstances in which prices were not so rising, and that it will rise by 3.1% this April. Money is also being provided in the form of the cold weather payment, the winter fuel allowance and many other kinds of support, including the £9 billion package announced by the Chancellor and administered by the Department for Levelling Up, Housing and Communities.

[Kerry McCarthy (Bristol East) (Lab)]

24. What assessment she has made of the barriers to work for tenants who are in (a) supported housing and (b) receipt of housing benefit at exempt accommodation rates.

[Kerry McCarthy]

I welcomed the announcement made by the Minister for Housing, the right hon. Member for Pudsey (Stuart Andrew), towards the end of last week about regulation of supported housing—that is a very good move—but at present there are people in supported housing where there is an exemption from the housing benefit limit, so they could be paying hundreds of pounds a week in rent. My local DWP branch tells me that that is a real deterrent for them to come off housing benefit or universal credit and get into work. What is the Minister doing to address the problem?

[Guy Opperman]

The income taper in housing benefit ensures that claimants will always be financially better off working than not being in work. We believe that maintaining housing benefit in these cases has allowed claimants to continue to receive more tailored financial support for their housing costs than would currently be available through universal credit.

[Andrew Jones (Harrogate and Knaresborough) (Con)]

T3. If she will make a statement on her departmental responsibilities.

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[Andy McDonald (Middlesbrough) (Lab)]

T7. Pensions and benefits have been uprated by 3.1%, whereas inflation is set to be 6.2%, or 8% if The Daily Telegraph has got it right. That means that pensioners and benefits recipients will not be able to pay for the most basic essentials. How can the Minister look people in the eye when the Government have inflicted yet another real-terms cut?

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

The factual matter is that the state pension has increased by in excess of 5% over the past two years. There is also £5 billion-worth of pension credit—I encourage the hon. Gentleman to get his vulnerable constituents to apply for that—and the Chancellor’s £9.1 billion package for energy bills. I also encourage the hon. Gentleman to get his constituents to apply to the local authority fund.

[Mr Laurence Robertson (Tewkesbury) (Con)]

T8. Ministers will be aware that a number of organisations, such as those in in care services, agriculture and related industries, and hospitality, are experiencing difficulties in finding enough workers. What can Ministers do to bring those who are looking for work together with those kinds of industries?

[Cat Smith (Lancaster and Fleetwood) (Lab)]

While the Secretary of State was enjoying our warm Lancashire hospitality in Blackpool this weekend, just a few miles up the coast in Fleetwood, my constituent Patricia was emailing me as her MP. She is a disabled pensioner and says:

“The state pension does not keep up with rises in cost of living or inflation…Fuel costs are crippling, as I don’t move and feel the cold but we have to be careful with the heating. I need carers but their costs rise faster than the annual increase.”

What does the Secretary of State have to say to my constituent?

[Guy Opperman]

I urge the hon. Lady’s constituent to contact her local authority to see whether there is local authority access to funds. As of April, there will be £9.1 billion of energy support from the Department for Levelling Up, Housing and Communities fund. There is also pension credit and efforts are being made on a whole host of levels. I have listed three clear examples of access to cash for individuals such as her constituent.

[Dehenna Davison (Bishop Auckland) (Con)]

Following last week’s announcement of changes to the DWP estate, 55 of my constituents are directly affected by the closure of the Bishop Auckland back-office function. Joanne Illingworth, who has worked for the DWP for 36 years, has written to me because she is really concerned that moving her job would not be compatible with balancing her work life and caring responsibilities. To give Joanne and others reassurance, can the Minister confirm that individuals will be given specifically tailored support to find a new role that is suitable for them in their current circumstances, and, if not, that, as an absolute last resort, exit packages will be made available?

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[Stephen Timms (East Ham) (Lab)]

The Minister referred earlier to the modest reported percentage increase in take-up of pension credit. Does he recognise that that increase is a consequence of the removal of mixed-age pensioner couples from eligibility for pension credit, rather than of any actual increase in take-up? Is it not high time that the Department set an ambitious take-up target and published an action plan to deliver it?

[Guy Opperman]

With great respect to the right hon. Gentleman, with whom I have repeatedly debated this matter, we already have an action plan. We are already engaging with all the key organisations, whether that is the energy companies, television companies or media in the normal way. I respectfully say to him that pension credit take-up is increasing. It is up by 3%, which is definitely not for the reason he asserts, and we continue to make the case for pension credit to the wider population. We want not just individuals to claim; we want carers or people on behalf of their mum or dad to put in a claim.

[Peter Gibson (Darlington) (Con)]

Almost £4 million of pension credit remains unclaimed in Darlington. What advice can Ministers give to my constituents and others to encourage them to take it up?

[Guy Opperman]

I sincerely hope that my hon. Friend’s local paper contains a letter from me this week explaining exactly why upwards of £3,000 is available to vulnerable pensioners—serious money that is as yet unclaimed. We are keen that my hon. Friend’s constituents and others claim pension credit, because it is an important source of money for the most vulnerable. We already spend £5 billion on it, and we want to spend more, but people must claim.

[Helen Morgan (North Shropshire) (LD)]

Countless pensioners across my constituency have been forced to make the heartbreaking choice between heating and eating. They were told all their lives that if they worked hard enough then, when their time came to retire, we would take care of them. However, it is evident from those contacting me that that is no longer the case.

As the Secretary of State and the Pensions Minister have already outlined, the Government provide a range of benefits to older people in a whole host of areas, including housing, NHS dental treatment and transport costs. Those things can go a long way to helping with the cost of living crisis, but many such benefits go unclaimed each year. What steps is the Secretary of State taking to ensure that older people are aware of and able to access the benefits for which they are eligible?