Oral Answers to Questions

Debate between Jesse Norman and Steve Webb

Monday 18th November 2013 Commons Chamber

[Jesse Norman (Hereford and South Herefordshire) (Con)]

T5. A recent report by the Office of Fair Trading identified no fewer than 18 different points at which charges can be levied on a pension. Does the Minister share my view that there should be radical simplification and disclosure on pension fees and charges—however and wherever they are levied?

[The Minister of State, Department for Work and Pensions (Steve Webb)]

My hon. Friend is right to raise this important issue. Over the last few years, we have taken expanded powers to cap charges and to require disclosure along the lines he describes. We will shortly act on our charges consultation and will publish quality standards, which will include requirements to disclose relevant information, including charges.

Oral Answers to Questions

Debate between Jesse Norman and Steve Webb

Monday 14th October 2013 Commons Chamber

[Jesse Norman (Hereford and South Herefordshire) (Con)]

14. What steps the Government are taking on pension charges.

[The Minister of State, Department for Work and Pensions (Steve Webb)]

We have already banned consultancy charges in automatic enrolment schemes and, in the light of the recent report by the Office of Fair Trading, we will shortly be publishing a consultation setting out plans for a cap on pension scheme charges.

[Jesse Norman]

It is extremely difficult for pensioners, and indeed fund trustees, to obtain accurate and timely data about transaction costs, which can have an enormous impact on fund performance. Does the Minister share my view that managers of both private and public funds should be required to publish that information?

[Steve Webb]

My hon. Friend highlights the important point that we need a great deal more transparency about the many different pension scheme charges—the OFT report identified 18 different sorts of charges. We will be looking at its recommendation that the fees he refers to should be reported to governance committees, which will be best placed to act upon them.

Oral Answers to Questions

Debate between Jesse Norman and Steve Webb

Monday 24th October 2011 Commons Chamber

[Jeremy Lefroy (Stafford) (Con)]

10. What steps his Department is taking to support access to lending from credit unions.

[The Minister of State, Department for Work and Pensions (Steve Webb)]

Since 2006, the Department has spent more than £100 million through its growth fund to encourage credit unions. In addition, since March this year, a further £11.8 million has been invested. The Department is now conducting a study into how best we can support credit unions and will report shortly.

[Jesse Norman]

Only 2% of people in this country are members of credit unions such as the excellent Money Box in my constituency, compared with 44% of people in the United States. What role can Jobcentre Plus play in helping credit unions to reach more people?

[Steve Webb]

I pay tribute to my hon. Friend for his involvement with the all-party group on credit unions and his commitment to the cause. Jobcentre Plus is keen to work closely with credit unions, and we are currently piloting a scheme in Manchester and Newcastle in which jobcentres share office space to see whether they can assist credit unions at a local level.

Oral Answers to Questions

Debate between Jesse Norman and Steve Webb

Monday 28th March 2011 Commons Chamber

[Steve Webb]

We will shortly publish a Green Paper with a range of options for state pension reform. As my hon. Friend says, one of those is a single flat-rate pension. One of its great advantages is that whereas many pensioners do not claim their means-tested benefits and therefore live in poverty, everyone claims their pension.

[Jesse Norman]

Like many Members, I welcome the single-tier pension. Will the Minister help us consider whether there could be an interesting interaction between that and a lifetime savings account, whereby people can take money in and out of an ISA-style savings account?

[Steve Webb]

Although policy on the tax treatment of savings is a matter for our friends in the Treasury, it is absolutely the case that the single tier provides a firm foundation for saving. Whereas under the current system, every pound one saves results in the clawback of means-tested benefits, a decent single pension will get one clear of means-testing to a far greater extent.

Oral Answers to Questions

Debate between Jesse Norman and Steve Webb

Monday 10th January 2011 Commons Chamber

[Jesse Norman (Hereford and South Herefordshire) (Con)]

Special Metals Wiggin is a large and important employer in Hereford city, but it has several hundred pensioners who have not had an increase in their company pension since 1995 and who have therefore suffered a more than 50% loss in the value of their pensions. Will the Minister examine the matter, and is he prepared to meet pensioners’ representatives to discuss it in more detail?

[Steve Webb]

I am happy to look into the individual situation to which my hon. Friend refers. In general there are statutory requirements for the uprating of pensions in respect of service post-1997, but occasionally, when schemes are wound up underfunded and fall under different regimes, different indexation rules can apply. I would be very happy to receive more details and to meet my hon. Friend.