Defending Public Services

Debate between Ian Blackford and Jake Berry

Monday 23rd May 2016 Commons Chamber

[Ian Blackford (Ross, Skye and Lochaber) (SNP)]

It is a pleasure to follow the right hon. Member for Basingstoke (Mrs Miller).

I hope the House will forgive me if I reflect on an historic event that took place in Scotland this weekend. For the first time in 114 years, the Scottish cup returned to Leith, in Edinburgh, when Hibernian won the cup final. For many years those of us who are fans of Hibernian have been used to taunts that the last time the cup came back to Easter Road, Buffalo Bill was in town and Queen Victoria was on the throne. At least those taunts are over. The hurt of losing 10 cup finals—of traipsing to Hampden to face defeat after defeat—is over. A fine game, between two teams entertaining the fans, took place in Scotland on Saturday, and I am delighted that the people of Edinburgh and Leith can celebrate a cup victory at long last.

There is little to be welcomed in the Queen’s Speech. It was a missed opportunity for progressive action on pensions, social security and the economy. The UK Government are caught in a civil war over Europe and have delivered a Queen’s Speech with a poverty of ambition. The Tory party is at war with itself and failing miserably in its war on poverty, which the Prime Minister talked about at the conference last year. We are seeing not a war on poverty but a war in the Conservative party.

[Jake Berry]

One could perhaps compare the Conservative party’s disagreement over Europe to two men fighting over one woman. Is it possible that after such a catastrophe everyone can come back together as friends?

[Ian Blackford]

I am saddened at the depths to which the hon. Gentleman stoops. I am delighted to have friends and colleagues representing my party here and in government in Edinburgh, and they will continue to have our full support.

The Queen’s Speech demonstrates that the Tories are a threat to high-quality, well-funded public services. Having listened to the Leader of the Opposition last week on the Queen’s Speech, we are none the wiser as to what the Labour party is offering. We could have asked him, of course, had he been taking interventions, rather than forcing us to sit and listen to a monologue that lost the attention of his own party, never mind that of the House.

Some measures are to be welcomed, such as the likely delivery of the universal service obligation on broadband, as mentioned by the right hon. Member for Basingstoke, but the Queen’s Speech delivers nothing on pension reform for the WASPI women, on tax simplification or on social security, and no major action on the economy to boost exports and productivity.

The Conservatives have orchestrated some truly devastating cuts that have destroyed the safety net that social security should provide. We see through their rhetoric on life chances. The scrapping of legal commitments to tackle child poverty, the four-year freeze on working-age benefits, including child tax credit, working tax credit and jobseeker’s allowance, will see families losing up to 12% of the real value of their benefits and tax credits by 2020. We have seen the butchering of the very aspect of universal credit that might have created work incentives and the hammering of low-paid workers, to name just a few of the regressive cuts that will decrease the life chances of children across these islands.

--- Later in debate ---

[Ian Blackford]

No, I will not, because that is not true. Full-time places at Scottish colleges have increased, and I will return to that point.

Ruth Davidson would want to introduce tuition fees in Scotland by the back door. Down here, the Tories are all for front-door fees. In Scotland, the Tories are all about back-door fees. The doors are locked to many who want to participate in education unless they can pay the price. Front door or back door, with the Tories there is always a price to pay. Young people from the most deprived areas in Scotland are now more likely to participate in higher education by the age of 30 since the SNP came to power—up from 35% of young people in 2007-08 to 41% in 2014-15—which is the result of the SNP’s successful education programme. The number of qualifiers from the most deprived areas increased by over 2,300 from 8,035 in 2007-08 to 10,395 in 2014-15.

Overall, since the SNP came to power in Scotland, the number of Scottish-domiciled, first-degree students going to university has risen by 11%. Last year saw a record number of Scots accepted to universities across the UK. That is a record to be proud of. Rather than carping from the sidelines, the Labour party should perhaps get behind what the SNP has delivered in Scotland for the people of our country.

The Scottish Funding Council has invested more than £76 million in additional widening access and articulation places over the past three years and continues to fund a wide range of other initiatives to support access. We will ensure that those who have a care experience and who meet minimum entry requirements will be guaranteed the offer of a university place and a non-repayable bursary of £7,625. In Scotland, we recognise that access based on ability, investing in our human capital, is the right thing to do. That is a non-negotiable principle. It is price worth paying for our children and our future. As my right hon. Friend the Member for Gordon (Alex Salmond) said some time ago:

“The rocks will melt with the sun before”

the SNP imposes tuition fees on Scotland’s students.

There is little good news for young people. Whether someone is young and looking to start a journey towards eventual retirement or is nearing retirement, there is much to fear from this Government. Given the injustices for many women, the UK residents living in many overseas countries suffering from frozen pensions, or the constant tinkering with pensions that undermines saving, there is little for which to commend this Government. The Government are playing a risky game on pensions; the new lifetime ISA muddies the waters in an already complex area. ISA savings from taxed income undercut the pension saving from pre-tax income—in other words, the Chancellor has found a convenient tool to increase tax receipts today, but that is not necessarily good news for individual savers. According to the Association of British Insurers, presented with a choice, no employee will be better off saving into a lifetime ISA than a workplace pension because of the loss of employer contributions. ABI calculations indicate that the long-term cost of forgoing employer contributions would be substantial—for a basic-rate taxpayer, the impact would be savings of roughly one third less by the age of 60.

[Jake Berry]

The hon. Gentleman is making an important point, but does he not accept that one benefit of people saving for their retirement through an ISA is that it gives considerably more flexibility? As we go on our life journey, there are often times when we may want to draw down some of that money—for example, for a deposit to buy a house. Does he not see this as being about consumer choice? There is probably room for both of these things, although it is extremely important that we protect the existing pensions system as well.

[Ian Blackford]

This is a vastly important issue, and I genuinely want to work with the Government on it. All of us in this place have a collective responsibility to get pensions right. I will accept that there is a shared concern across the House, with a recognition that pension saving is not at a sustainable level in this country. My problem with the lifetime ISA proposal is that it undermines what should be the best route for all, which should be saving through the new auto-enrolment, with the incentives that are there. Of course, that will be discussed when the plans are presented to Parliament, but I say to the Government that they should be very careful with what they are doing, because we all share the ambition to get this right. I make the offer to the Government that we are prepared to work together to make sure that we get the best mechanisms to increase pension savings in this country.

Pension saving is at a crisis point, and no amount of regulation will right that problem—[Interruption.] I can hear some guffawing; I will try to wrap up my remarks, but I have been very generous in taking interventions from across the Floor. We need a fundamental overhaul of the pensions system. The Tories need to be more ambitious on pension reform and find real solutions that incentivise pension saving. The SNP has long called for the establishment of an independent pension commission to look holistically at pension reform, focusing on existing inequalities and paving the way forward for a fair, universal pensions system.

We must also prioritise fraud and scam prevention. Kate Smith, head of pensions at Aegon UK, commented that fraud and scams that pensioners are vulnerable to should really have been tackled in the pensions Bill. She said:

“I’m extremely disappointed that the government has failed to use the Queens Speech as an opportunity to tackle the ever-growing threat of pensions fraud via legalisation.

We still need to look at ways for the industry, regulators and pension industry to work together to raise the profile of pensions fraud to stamp it out and protect savers.”

I am going to wrap up my remarks, Madam Deputy Speaker, but let me just say that nearly 1 million people aged over 75 live in poverty and need more help from the Government, according to a report by City University London and Independent Age. It also suggests that the income of those aged over 75 is, on average, £3,000 a year less than that of younger pensioners. Those figures suggest the vital need for a sustainable income in retirement to be available for our older generation, and the Government must do more now to address that. There is so much that needs to be addressed to give confidence to savers and pensioners.

Our alternative Queen’s Speech proposed a universal pensions Bill to support a more progressive pensions system. Such a Bill would establish an independent pensions commission to investigate the inequalities in current and future proposed pension policies; fund transitional arrangements for WASPI women affected by the rapid pace of increases in the state pension age; and allow for further development of access to automatic enrolment and further options to incentivise pension saving. The complexity of the pension system is a real turn-off for savers, preventing them from shopping around or making sound savings choices. Just last week, the Bank of England’s chief economist, Andy Haldane, said that the British pension system was so complicated that even he failed to understand it, and he warned of the damaging consequences that that presents for consumers as they approach retirement. Conversations with countless experts and independent financial advisers have confirmed for me only one thing: they have no clue either.

That comment about having no clue could equally be made about the Government in the Queen’s Speech. We have outlined an SNP alternative, delivering a message of hope and vision for the people of Scotland. It is not too late for the Tories to open their ears and, indeed, their minds to a different direction. If the Government seriously want to increase the life chances of our children, they must return to the drawing board on social security cuts and admit that they have got it wrong, as they have done on the economy. Instead of the promised assault on poverty, we have been left with a Government plan that has a poverty of ambition. There is a different way, and I appeal to the Government to make the right political choice and abandon austerity.