(4 days, 3 hours ago)
Commons Chamber
James MacCleary (Lewes) (LD)
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
Torsten Bell
As I have previously said to this House, it is unusual but not unprecedented for the Government to take a different view from the PHSO. That does not mean that we have not taken its report incredibly seriously—I have also met its representatives—but as I have said, we set out the detailed reasons for the decision we came to in the response we laid in the House of Commons Library on 29 January.
I ask this question on behalf of the 6,000 WASPI women in Strangford. Given that the Department’s own 2007 evaluation raised serious doubts about the effectiveness of letters to pensioners, how can the Minister justify the decision that no direct financial loss occurred when thousands of women were deprived of the 28-month notice period required to adjust their life savings and retirement plans? In the light of the Scottish Parliament’s decision to again press this issue in February, will he please do the right thing, put actions before apologies, and deliver help and support? I say that respectfully, but I do want a good answer.
Torsten Bell
The hon. Member has raised this issue repeatedly over a number of years, and I recognise that. Specifically on the issues he raises, it was the ombudsman itself, rather than the Government, that initially set out that the women affected did not suffer direct financial loss. What is sitting behind the ombudsman’s judgment saying that is that the issue facing the ombudsman was not either the original decision in 1995 to increase the state pension age or the decision to accelerate the increase by the coalition Government in 2011. The ombudsman was looking narrowly at the question of how that increase in the state pension age was communicated, and I think it is really important to clarify that distinction with our constituents. It is the latter—the communication of the state pension age—that we have discussed in this House on numerous occasions.
The hon. Member specifically raises the 2007 evidence, which showed that a minority of people read and remembered such letters. However, it showed something else quite important, which was that those with good knowledge of their state pension entitlement were most likely to read the letters. It was therefore not a good metric for assuming that the majority of those who were sent letters would have learned something from that and changed what they knew.
(4 days, 3 hours ago)
Commons ChamberI beg to move,
That this House insists on its disagreement with the Lords in their Amendments 15 to 24, 27, 30 to 34, 36, 38 to 42, 83 and 88, insists on its amendments 88A, 88C and 88E to 88P to the words restored to the Bill by that disagreement, but proposes further amendments (a) to (f) to the words so restored to the Bill.
I thank the rather shrinking number of peers and hon. Members who have been engaged in the scrutiny of the Bill. It has clearly come a long way since I closed the Second Reading debate. I am glad, in particular, to see that some progress has been made in recent days with the other place’s agreement to this House’s amendments on the approach to defined contribution schemes achieving scale and on the transparency of public sector pension liabilities. That leaves one issue remaining: the Lords amendments on asset allocation. This House has already considered that question twice, and on both occasions it has rejected the Lords’ position by majorities of over 100. At each stage the Government have reiterated the need for the core policy intent to be delivered, while responding with changes to primary legislation that directly address specific issues raised.
I hope the House will bear with me while I explain what we are now proposing, and why I believe it is time for these exchanges to conclude. Let me deal first with the amendments to which we have previously agreed. The reserve power is capped at the Mansion House accord targets: no more than 10% in qualifying assets, and no more than 5% in UK-specific assets. It explicitly applies only to main default funds. Regulations cannot concentrate the requirement in any single asset class. The power can be used only once, and, if unused, lapses entirely in 2032.
According to the Order Paper,
“The Northern Ireland Assembly, the Scottish Parliament and Senedd Cymru have approved Legislative Consent Resolutions”.
Some of my colleagues in the Assembly back home have expressed some of the concerns that the Lords have expressed. I am conscious of where we are going and where we will end up. Can the Minister please give me some indication of the content of the discussions that took place with the Northern Ireland Assembly? Members of the Legislative Assembly tell me they expressed concern. I am trying to understand how a consent motion could be conveyed and agreed.
(1 week, 3 days ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Dr Roz Savage (South Cotswolds) (LD)
I beg to move,
That this House has considered the potential merits of use of alternative measures to GDP within Government.
It is a pleasure to serve under your chairship, Sir Alec, and an honour to introduce this debate on what I believe is a very important subject: alternative measures to GDP. Gross domestic product is still the predominant metric that we use to measure whether Governments are succeeding. I want to suggest today that it is not just an imperfect measure but the wrong one. Before we can agree on a better measure, it might first be helpful to ask what we are measuring for. That means asking a more fundamental question: “What is Government actually for?”
My thoughts on that are that Governments exist to do five things in particular that individuals, families and markets are not able to realistically do on their own. First, to keep people safe, from crime, from conflict and from harm. Secondly, to provide common rules and fairness, the laws, rights and frameworks that stop power being abused. Thirdly, to provide public goods: clean air, clean water, flood protection and infrastructure, the things that markets cannot easily deliver because they are not profitable. Fourthly, to support stability and reduce risk through things such as healthcare and social security, the safety net that helps people to cope with illness, unemployment and old age. Fifthly, and finally, to represent our collective choices about the future, things such as how we balance growth with nature, freedom with fairness, and short-term need with long-term resilience.
To sum up, Governments exist to do together what we cannot do alone. In a democracy, they must do so accountably, so we need an appropriate way of measuring their success.
I commend the hon. Lady for a very commendable speech in setting out what we are trying to achieve. She rightly highlights that, while GDP measures the monetary value of goods and services, it fails to capture critical aspects of life, such as environmental sustainability, income distribution and health. However, it is also a well-established measurement. Does the hon. Lady agree that the Government must ensure that we do not see a new measure that allows failures to be hidden by new definitions?
Dr Savage
I thank the hon. Gentleman for his intervention. I absolutely agree with, and will elaborate on, his points about what GDP fails to measure and how it must be complemented by other metrics.
So the crucial question is: if those five things are indeed what Governments are for, how well—or not—does GDP measure whether Governments are succeeding?
(2 weeks, 2 days ago)
Commons Chamber
Torsten Bell
Let me start by thanking Members of both Houses for their careful scrutiny of the Bill before us today. I thank Members of the other place for their amendments, which we are considering today; in particular, I thank Baroness Sherlock and Lord Katz for their steering of the Bill in recent months.
This is a complex Bill, but it is one with a simple goal: higher returns for pension savers. As I noted on Second Reading, this is a particular responsibility of this House, because it is legislative action, in the form of auto-enrolment, that has got Britain back into the habit of workplace pension savings. We must ensure that those savings deliver, overcoming the challenges of a system that is too fragmented and where there is insufficient focus on how hard people’s savings work to support them in retirement.
A complex Bill means something else: amendments. As is normal, the Government brought forward changes in the other place that we today ask this House to endorse. The vast majority of them are technical, ensuring that the legislation works as intended. Of the more substantive changes, I will highlight three.
First, the Government tabled amendments in the other place that will help to ensure that superfunds will not be forced to wind up when they still provide a high level of security to their members. Secondly, on the Atomic Weapons Establishment pension scheme, we are reflecting the reality that since 2021, AWE has been wholly owned by the Ministry of Defence. Its closely defined benefit pension scheme is backed by a Crown guarantee. These Government amendments therefore move it on to the same basis as other central Government pension schemes; the accrued rights of members are of course fully protected. Finally, on the value for money measures, the Government amendments provide for provisions to be commenced via regulations, to allow decisions about the introduction of elements of the VFM framework to reflect detailed design work and consultation.
Peers in the other place have, as always, provided useful scrutiny of the Bill, so let me turn to doing justice to their amendments. First, there are the Lords amendments to the local government pension scheme. Lords amendment 1 understandably tries to introduce an explicit prohibition on regulations about investment in specific assets or asset classes, or about the location of investments. That is duplicative, because a 2020 Supreme Court ruling effectively means that LGPS regulations cannot provide such direction without a specific basis from Parliament, and there are no new provisions in the Bill that would allow it to be provided.
Lords amendments 5 and 6 relate to worries about excessive prudence in the valuations of the local government pension scheme. I recognise the intent behind these Lords amendments, given the importance of those valuations for decisions about contribution levels, and I can offer hon. Members some reassurance on that front. The 2025 valuations look set to see the average employer contribution rate in England and Wales reduce by slightly less than 5% on average, which is a substantial reduction. Lords amendment 5 would introduce specific benchmarks for the next valuation in 2028, but the right way to learn lessons from this valuation is via the statutory review by the Government Actuary’s Department, which will begin shortly.
Lords amendment 6 focuses not on the LGPS valuations themselves, but on facilitating employers seeking interim reviews between valuations. I have heard calls for that from several Members over the last few months. However, the Government have already committed to consulting on regulations governing interim contribution reviews, reflecting the requirement in the Public Service Pensions Act 2013 to consult on changes to regulations—something that this Lords amendment would breach.
Let me turn to small pots. I am pleased to see that there remains a strong consensus on the need to act here, given the costs to individuals and to the pension system as a whole of the proliferation of small pots. This is an area where work begun under the Conservatives. Lords amendment 13 probes the case for extending the dormancy period for automatic consolidation from 12 months to 36 months. I recognise the intent, but that would be a mistake. It would significantly prolong the period during which a pot remains both small and dormant, with members facing multiple sets of charges and the wider scheme membership continuing to subsidise scheme losses on such pots, which might total around £50 million per year.
I declare an interest as a pensioner. The pensioners who come to me are a wee tad unsure about what is on offer for them. They are perhaps confused, because they get advice from people here to move in one direction, and then somebody else will give them advice to move in another direction. What can the Minister and the Government do to provide the correct support and advice to people who are hesitant or unsure about what to do with their pension pots at a time when it is really important? We have seen many scams, and we hear about much happening in relation to this issue. I want to ensure that pensioners in particular have the opportunity to get the advice that they need very much.
Torsten Bell
As always, the hon. Member asks an excellent question. For people who are currently still working, it is important to keep the simple advice at the front of their mind that people should be saving towards their pension. In almost all circumstances, saving is the right thing to do, and we have strong tax incentives in the system to encourage people to do that. We should ensure that that message is heard loud and clear, and I am sure that he makes that clear to his constituents.
On the harder question of how those approaching retirement decide to use their pot, it is often right to take advice, and obviously the Money and Pensions Service exists to provide that. Others choose to take it from other sources, not least from their providers themselves. The hon. Gentleman is right; we are leaving too much pressure on individuals to manage those decisions alone. That is why the default pensions parts of the Bill, which I think have cross-party support, are important in simplifying that journey for people. People can do what they want, but they will not end up with a bad outcome just because they are faced with a confusing situation in front of them. The onus will be on trustees and providers of pensions to navigate that for those individuals.
Let me come back to small pots. I will make one specific point, which was raised in the other place, regarding worries about those who are taking career breaks, particularly for maternity leave, and have a dormant pot for a period of time. I want to reassure the House that paid maternity leave obviously sees contributions into pension pots continue, rather than those pots becoming dormant, and there is the most important wider safeguard, which is the ability for anyone to opt out of their pot being consolidated. That safeguard covers exactly this kind of eventuality, even though it would be only a very small number of cases.
Torsten Bell
I have just explained to the hon. Member why he should be worried. He is happy to carry on with the status quo; we are not.
We are going to set this out in two ways. First, we will specify on the face of the Bill that regulations under the reserve power cannot require more than 10% of assets to be held in qualifying assets overall or more than 5% in the UK—exactly matching the Mansion House commitments. Secondly, our amendments require any regulations to implement the reserve power to be entirely neutral between asset classes, spelling out that a future Government who took a different view from this one could not use the power to direct investments into hand-picked asset classes.
The existing safeguards in the Bill also remain: the time limit, the reporting requirements, the affirmative procedure, and—most importantly—the savers’ interest test that allows pension schemes not to deliver against the reserve power requirements where it is not in savers’ interests to do so.
I have just been sent a question from a person back home, which I will ask directly as it has been put to me. Can the Minister confirm that the Government’s revised investment powers would never be used to direct capital away from Northern Ireland infrastructure and small business in favour of national priority projects? That is the question I have been asked, and I need to ask it of the Minister.
Torsten Bell
If I have understood the hon. Member’s question, we are ruling out the ability for the power to be used for any purpose other than for the broad private asset class. That would include questions of specific asset classes, but it would also include questions of geography. I hope that gives him the reassurance he is looking for.
It is also in the interests of savers to tackle the UK’s fragmented pensions landscape. Scale matters: it reduces costs, opens up a wider range of investment strategies and enables more active asset ownership. Those arguments, I think, have cross-party consensus, and they lie behind the measures in the Bill to require pension schemes to operate at scale in the years ahead. Unfortunately, that policy objective, motivated by a desire to ensure that savers get the best returns, would be undermined by Lords amendments 26 and 37, which seek to create more exemptions from the scale requirements for small schemes. They would do so in a way that would create ongoing uncertainty for years as schemes, regulators and likely courts debate whether or not the conditions for such exemptions have been met, a process that itself would impose significant costs on savers. Both regulators have expressed their concern that, as a result, these amendments would be inoperable.
I do, however, recognise the case that has been made, in this House and in the other place, for the importance of both competition and innovation in the market. That is what lies behind the pragmatic approach we have taken to achieving scale: not only have we set a pragmatic £25 billion starting point, but smaller schemes will be given time to reach that point, with the transition pathway lasting until 2035. The new entrant pathway will also provide a route for truly new and innovative disruptors to enter the market. This supports the policy intent of Lords amendments 35 and 43, which require the Secretary of State to have regard to innovation and competition when making regulations that support scale. Those amendments are, however, largely duplicative, given that the Bill already sets out that regulations made under the clauses in chapter 4 must take into account the conclusions of the review of non-scale default arrangements, and that review will consider innovation and competition.
Turning from private to public pension schemes, Lords amendments 77 and 85 seek a review of the long-term affordability of public service pension schemes, a matter that I am sure many Members are interested in. The content of the proposed review, however, overlaps almost entirely with existing mechanisms through which public service pension details are reported, not least the Office for Budget Responsibility and its reports and the whole of Government accounts. Reflecting major reforms over recent years, those mechanisms provide important reassurance that the cost of public sector pensions as a share of GDP is set to fall significantly in the years ahead.
Lords amendments 78 and 86 deal with the Pension Protection Fund and the potential for that fund to discharge its existing liabilities to members through a lump sum payment. I understand the sentiments of those in the other place who brought forward those amendments, in recognition of the absence of pre-1997 increases in PPF compensation, but the amendments would not achieve their intended objective of changing the level of compensation to which members are entitled. Instead, the Government are acting to improve the PPF safety net, with the Bill providing for prospective pre-1997 indexation of compensation for members whose former schemes provided for those increases.
Turning back to today’s savers, we all want to see more engagement with pension savings. I am an optimist on this front: as DC pots grow, so will engagement with those savings. Lords amendment 79 seeks to support that engagement from the perspective of providers, instigating a review of marketing and member communication rules, but instead of another review, the Government favour acting to make it easier for pension schemes to give high-quality support to their members. That is the purpose of the new targeted support regime, allowing schemes—for example—to suggest appropriate contribution and drawdown rates. In developing that policy, we have considered the interaction with the direct marketing rules contained in the privacy and electronic communications regulations. As a result, the Government have committed to take forward secondary legislation to amend those regulations, and we will also return to this issue as we develop default pension regulations through consultation later this year.
I close by thanking peers for their scrutiny of the Bill, and for the discussions I have had with many of them about it. I have endeavoured to do justice to the amendments retuned to us, and particularly to the motivations behind them. In aggregate, despite the divisions that the Lobbies of the House and of the other place exist to facilitate, we all want to see a flourishing pensions system that delivers for savers. This Bill will play a major part in making that happen, supporting a landscape of bigger, better pension schemes that are focused on the returns they deliver for members and, ultimately, the comfortable and hopefully long retirements that we all want our constituents to enjoy.
(2 weeks, 2 days ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
David Chadwick
The hon. Member is right to focus on retention, which is an equally important part of the scheme.
I commend the hon. Gentleman for bringing this debate to the Chamber. He is right to underline the issues for people who are disabled and want to get into work. Many employers wish to ensure that those people have the opportunity, but they are unable to expedite the system, through no fault of theirs. They want to employ people, but they cannot because the Government are falling short. Does the hon. Gentleman agree that there has to be a better arrangement and better co-operation in relation to not just those who want to work, but those who want to give them jobs?
David Chadwick
Yes. The hon. Member is right to mention how everyone can benefit from people getting back into work—both employers and disabled people looking for work can benefit—but the system is not enabling that to happen. Self-employed individuals, in particular, are losing their businesses, and employers—in particular smaller employers—are being left with costs and uncertainty. A scheme designed to support work is, in its current state, preventing it.
Alongside the delays, there are growing concerns about how the scheme operates in practice. My constituents report being forced to reapply from scratch at renewal, even when nothing has changed. We know that we have the technology to deal with that problem. They face long reconsideration processes, struggle to contact caseworkers and in some instances cannot even access the system properly, because of their needs. This does not sound like a system working with people; it feels like one that they are having to fight to get through.
There are also serious concerns about funding decisions. I have been made aware of cases in which support has been cut significantly, not because needs have changed, but because funding is benchmarked against generic regional job market rates, which will punish people living longer, particularly in Wales, where we have lower than average salaries. That misunderstands the entire purpose of the scheme.
We are seeing a convergence of problems: delays getting into the system, barriers to navigating it and reductions in support once people are in it. The result is clear: people are being kept out of work because the Government’s system is not working for them. That creates a fundamental contradiction: the Government want more disabled people in work, and disabled people have plenty to offer, but encouragement without support does not represent opportunity.
When Access to Work fails, people fall out of employment, businesses miss out on talent, and more people are pushed into economic inactivity. At a time when we must indeed focus on growth, we should be strengthening the system, not allowing it to fall behind. We need urgent steps to tackle the backlog. We need a system that is faster, clearer and accessible. We need funding decisions that reflect the reality of specialist support.
Ultimately, this is about whether disabled people can participate equally in working life. Many disabled people are desperate to work, but they are being let down by this scheme, which has helped so many people over the years. I urge the Minister to recognise the urgency of the issue and set out how the Government will act.
(2 weeks, 3 days ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Anna Dixon (Shipley) (Lab)
I beg to move,
That this House has considered the matter of Carer’s Allowance overpayments.
It is a pleasure to serve under your chairmanship, Sir Roger. I thank Members for joining me here in Westminster Hall. I have committed my career to securing better care and support for older people and their family carers, and I continue that work here in Parliament as chair of the all-party parliamentary group on carers.
This year marks a significant milestone for carers: it has been 50 years since carer’s allowance was first introduced. It was known originally as the invalid care allowance, and it was the first benefit to recognise the financial sacrifices of unpaid carers. It has made a huge difference, providing vital financial support to those who give 35 hours or more per week in unpaid care. I am proud that it was a Labour Government that introduced carer’s allowance back in 1976, and I am just as proud that this Labour Government and Chancellor increased the earnings threshold from £151 to £196 per week—the largest increase since the benefit was introduced—and again this month to £204 per week, as promised. The world has changed a lot since Harold Wilson was Prime Minister, but some things remain the same, and Labour is still putting its money where its mouth is and standing up for carers.
Supporting carers should be a moral mission of any Government. There are 5.8 million unpaid carers in the UK, and the economic value of their contribution is some £184 billion per year, which is more than the entire NHS budget in England. However, despite the value that carers bring to our society, we often fail to value them. According to Carers UK, 1.2 million unpaid carers in the UK live in poverty, and around half of carers cut back on essentials in 2025.
There is a multitude of reasons for carer poverty. Many carers give up paid work, but many juggle paid work and unpaid care, often reducing their hours, harming their careers and impoverishing themselves. It is for all those reasons that the carer’s allowance overpayment scandal is hard to stomach.
I commend the hon. Lady for bringing this subject forward. Does she not agree that the amount of money the Government have saved from the unpaid labour of carers is astronomical, and that unless the Department can prove that there was a deliberate overclaim, discretion must be available? These people, whose lives are dedicated to the care of others, do not need the stress of paying a penalty for a mistake and thereby being treated as a criminal.
Anna Dixon
I absolutely agree with the hon. Gentleman that the impact of the overpayments on carers is terrible, and I am going to share the story of someone who was affected. I am sure others have heard similar shocking stories. As many as one in five unpaid carers who claim carer’s allowance and work part time were hit with overpayments. Thousands of carers have been left with huge debts and the fear of financial ruin.
Helen cares for her son Robin. He was born with a heart condition, respiratory vulnerabilities, developmental delay, mobility issues and Down’s syndrome. Helen gave up work as a teacher to support Robin and she relied on carer’s allowance. She also received some royalties for online resources that she had created as an education provider. She was paid those every six months, but the Department for Work and Pensions considered them as monthly earnings. It stopped her carer’s allowance and informed her that she had incurred overpayments going back over four years. She was charged more than £2,000 and told to pay back £50 a week. In her words,
“there was no care of how we would live or survive. It took me three very long years to repay the debt. It hung over like a great shadow, the letters, the fear of what could come. We were devastated by the department’s actions. Carers just don’t have bank balances that can stretch and withstand such pressures…you are so vulnerable…it shouldn’t be this difficult”.
As I have said, Helen’s is not an isolated case; thousands of carers are in this position, not as a result of failure on their part to report to and notify the DWP, but owing to a failure of Government. This scandal is a stain on the record of the British state.
I therefore commend this Labour Government for asking Liz Sayce to conduct an independent review of carer’s allowance overpayments. She made it clear that overpayments were caused
“not by widespread individual error by carers in reporting their earnings but by systemic issues preventing them from fulfilling their responsibility to report.”
I welcome the fact that the Government have accepted the vast majority of her recommendations and set aside £75 million to implement them.
Among other things, the review called on the Government to reform the earnings averaging processes and guidance, as well as that for allowable expenses, so that there is clarity, transparency and predictability, and it called for a thorough reassessment of cases to right the wrongs and deliver redress. It called for creative short-term solutions to address the cliff-edge crisis, while the DWP works on a longer-term plan. That is vital. If someone earns one penny over the earnings limit, they have to pay back the whole weekly carer’s allowance. The Sayce review found that although the earnings limit cliff edge does not itself cause overpayments, it dramatically increases their scale and impact, negatively affecting people’s health, finances, wellbeing and opportunities to work. Will the Minister update us on progress on the introduction of a taper system?
Liz Sayce recommended a whole range of other reforms, from upgrading computer systems to using more empathetic language, improving the join-up between types of benefits and simplifying the system. I thank her and her team for completing this crucial task. I urge the Minister to implement the recommendations with urgency and to set out the timeline for doing so.
Turning to those affected, I welcome yesterday’s announcement that the Government have launched an audit of more than 200,000 carer’s allowance cases affected by unclear Government guidance that was in place between 2015 and 2025. The cases will be reviewed, and debts potentially reduced, cancelled or refunded for some 25,000 unpaid carers. That is excellent news and I am sure the Minister will say more. However, I believe that there are several categories of people who have been adversely affected whose cases remain outstanding. The DWP appears to be accepting responsibility only for those affected by the unlawful guidance on average earnings and not for the lack of clear guidance on expenses deductions.
Will the Minister ensure, as the audit begins, that the DWP fully addresses all aspects of maladministration? First, there should be consideration of cases in which the DWP held information regarding expenses but did not act on it or make corrections for many years. Secondly, I urge him to ensure that cases in which data has been “lost” by the DWP are dealt with as Liz Sayce recommended, and treated as cases of official error unless the DWP can prove otherwise. Thirdly, in the cases of those affected by the failure to adjust universal credit correctly, Sayce recommended that the DWP should pay UC arrears. I would be grateful if the Minister addressed whether the audit will include reviews for those missing groups.
(1 month, 1 week ago)
Commons Chamber
Torsten Bell
I welcome the opportunity to consider the Lords amendments to the Bill. I thank Members of both Houses for their careful scrutiny of it, and I particularly thank the Financial Secretary, Lord Livermore, for leading the Bill so expertly through the other place. Before addressing the amendments directly and explaining the Government’s decision not to support them—I know that will be shocking—I turn briefly to the need for these reforms.
As the Chancellor set out at the Budget, we are taking action to make the tax system fairer and fit for the 21st century. That requires us to keep the effectiveness and value for money of the £500 billion of tax reliefs under review, and it is especially important to do so when costs are expected to increase significantly. The cost of national insurance contributions relief on salary sacrifice into pension schemes was due to almost treble, from £2.8 billion in 2017 to £8 billion by 2031, without reform, which would be equivalent to the cost of the Royal Air Force. This is not only an expensive tax relief, but one with a very uneven impact. The majority of employers do not offer salary sacrifice at all. The vast majority of salary sacrifice contributions are made by higher and additional-rate taxpayers. Salary sacrifice is unavailable entirely to those earning at or near the national living wage, or to the UK’s 4.4 million self-employed workers, and we know that both groups are more likely to be under-saving for retirement.
On this basis, the status quo is indefensible. Change was inevitable, but we have chosen to take a pragmatic approach, with no change until 2029, and a £2,000 cap to allow pension contributions via salary sacrifice to continue.
I thank the Minister for bringing this Bill forward. He brings a good story to the House, but sometimes these decisions give rise to questions. My constituents believe that the Bill creates a financial disincentive for middle-income earners to save for their retirement. Does he not agree that this risks creating a pensions gap, with individuals becoming more dependent on the state in later life, which will cost the taxpayer more in the long run than the tax relief costs today? My constituents feel that, and I am asking the Minister the question. How would he answer it?
Torsten Bell
The hon. Member always raises questions brought up by his constituents, which we know is a valuable part of the work he does in this place. The direct answer to his constituents is that all of them have a very strong tax incentive to save for their pension, without salary sacrifice. We spend £70 billion a year to provide that incentive, whether via the lump sum or the national insurance exemption for employer contributions. I hope the main thing he says to any of his constituents who come through the door is that they have a very strong incentive to save, whatever their circumstances. On the pension gap, that is why we have revived the Pensions Commission. Its work is ongoing, and I am sure he will read in detail its interim report, which will be coming out in the coming months.
(1 month, 1 week ago)
Commons ChamberI congratulate the shadow Secretary of State and the Opposition on securing this debate. It is important that we consider this matter, as we are fast approaching a crisis that cannot be circumnavigated. Does the shadow Secretary of State agree that the Government must consider reopening North sea production to produce enough for our needs, if they continue to refuse to play their part in securing fuel elsewhere? Does he not agree that fuel duty would benefit from self-reliance, rather than dependence on volatile nations, as we have at this very moment?
I could not agree more with the hon. Member. We need to get back to drilling in the North sea. Norway is drilling on one side of the same basin and getting the benefit of those jobs and the tax revenue. It bemuses me why we are not doing that here. The shadow Energy Secretary, my right hon. Friend the Member for East Surrey (Claire Coutinho), has consistently said from these Benches that that is exactly what we should get on and do.
(1 month, 2 weeks ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Kirith Entwistle
That is exactly why this debate matters. I will come on to some of the points my hon. Friend raised.
When a public service not only allows, but actively facilitates, the continuation of abuse and fails to recognise the realities of coercive control, it is not just flawed; it is unjust. The national evidence is deeply concerning. Research by Gingerbread, a charity supporting single-parent families, found that 77% of primary carers using the CMS reported experiencing domestic abuse from the other parent.
I thank the hon. Member for securing the debate. This is a massive issue in my constituency, as it is in hers. In Northern Ireland, a large proportion of parents relying on the CMS face difficulties in receiving timely maintenance, which directly impacts child poverty and family stability. Does she agree that there may be a lack of staff, and that to ensure that the CMS system operates effectively for families not just in her constituency, but in Northern Ireland, more needs to be done to reduce the backlogs and secure the financial support that their children are entitled to?
Kirith Entwistle
Absolutely.
Even more troubling is that 45% of the parents in that research said that the CMS’s involvement had actually led to an increase in abusive behaviour. Those figures should stop us in our tracks.
For survivors, the very experience of using the CMS can be deeply distressing. From the cold tone of emails and letters to the aggressive and harsh text messages, right through to the opaque way payments are calculated, the process can be deeply triggering for those who have experienced abuse. At the very beginning, survivors are asked whether they have experienced abuse and what form that abuse took. For a moment, there is hope that the system might understand the gravity of that disclosure, but what follows is often little more than signposting to a list of organisations before the process simply continues as though the question had never been asked.
Ultimately, the disclosure changes nothing. There is no meaningful change in how the case is handled, no structural safeguards and no recognition that the dynamics of abuse may shape the entire case. Crucially, it does nothing to change the tone of communications with the CMS. For someone who has taken enormous personal risk to leave an abusive partner, that can feel like jumping out of a plane only to find that there is no parachute, no safe landing and no one to catch them when they fall.
(1 month, 3 weeks ago)
Commons ChamberMy hon. Friend make an interesting suggestion, and I know there has been some campaigning around this issue. The Health and Safety Executive has not seen evidence that the current arrangements are inadequate. They appear to be robust and well established, and they seem to be doing the job that is needed. If there is evidence of a problem to which my hon. Friend is able to draw attention, the HSE will certainly look at that very seriously. For now, though, the focus is on making sure that NHS trusts and others know their obligations under the current regulations.
I thank the Minister for his answers. I do not know whether he had a chance to see in the paper last week some figures for poisonings of those over 50 years of age on a number of occasions, although whether those were the unexpected effects of medicinal products or arose from lifestyle is not yet known. As a result of the uncertainty and the rising number of such poisonings, will the Minister look into this issue and come back to the hon. Member for North Durham (Luke Akehurst), me and the House on whether there is a connection? I think there may well be one.
I do not think I have seen the report the hon. Gentleman refers to. From what I have seen, there is no evidence of a problem with the current arrangements. There may be some pointers in the information he referred to, and if there are, I would be keen to have a look at them.