State Pension: Women born in the 1950s

Jim Shannon Excerpts

Thursday 22nd November 2018 Westminster Hall

[Patricia Gibson]

I will just finish the quotation from the rapporteur. He continued:

“The impact of the changes to pensionable age is such as to severely penalize those who happen to be on the cusp of retirement and who had well-founded expectations of entering the next phase of their lives, rather than being plunged back into a workforce for which many of them were ill-prepared and to which they could not reasonably have been expected to adjust with no notice.”

I would be keen to hear the Minister’s response to the rapporteur’s words. If he wishes to intervene to rebut them, I would be delighted to give way, but in the absence of his seeking to intervene, I will take an intervention from the hon. Member for Coventry South (Mr Cunningham).

[Jim Shannon (Strangford) (DUP)]

The next best thing!

[Mr Cunningham]

I do not know about that. I congratulate the hon. Lady on securing this timely debate. We have had many such debates, but the Government do not seem to get the message. From the start of the recession until now, women have carried the burden of the recession. In tax adjustments, the Government saved something like £14 billion at the expense of women. The amount the Government are saving through not doing the right thing by these women probably runs into billions. A fraction of those billions could take care of the problem.

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Member for North Ayrshire and Arran (Patricia Gibson) on securing this debate. She has been a stalwart in speaking out for the WASPI women. I was very happy to be a co-signatory to her request to the Backbench Business Committee for this debate, and I am happy to add my support.

I know that I speak for so many others when I say that my constituents in Strangford were gutted to find that no change has been made to the nefarious decision to deny women their hard-earned pension. An email I received said that there was a sense of

“despair amongst our WASPI women with increasingly negative effects on mental and physical health and catastrophic financial situations.”

I cannot underline enough those women’s mental and physical health and their catastrophic financial situations. The people I have spoken to are greatly affected by those three things.

It is little wonder that those women feel like that when it appears that the political route has led nowhere. The Bill supported by the all-party group on state pension inequality for women has been kicked into the long grass. For that reason, the WASPI women have, alongside their political campaign, been progressing on the legal front. They believe that proving that the DWP failed in its duty and committed maladministration is the most cost-effective and quickest way for the 3.8 million women affected by the changes to the state pension age in the Pensions Acts of 1995, 2007 and 2011 to achieve justice and recompense.

I am aware that the Parliamentary and Health Service Ombudsman has begun his preliminary inquiry. He is starting with the 1995 Act and is looking at whether the DWP failed in its duty to inform women of the significant change to state pension age, which had been 60 for women since 1948. If he finds that the DWP failed in its duty and committed maladministration, he should make recommendations about what the Government should do to make amends. That would be an important way of addressing these issues. Those recommendations should perhaps include recompense for the losses suffered by all women adversely affected by the changes.

It is time that we did the right thing for those women. In my constituency alone, 5,800 women have been adversely affected. I am not saying that every one of them has come and spoken to me, but a great proportion have. They worked their fingers raw and had their end goal in sight, but the certainty of a pension was removed from them with very little notice. They did not have the ability to change the course of their financial future. They were told the facts of the case and were left to deal with it. The women who have spoken to me include not only civil servants who planned their financial future and are now cast into uncertainty, in doubt about how their well-deserved retirement will pan out, but women who have literally scrubbed on their hands and knees. They are saying, “Jim, I don’t know how I can physically do this anymore.”

[Sandy Martin]

The point is not just that those people worked hard all their lives and then suddenly found that their pension age had been increased, but that they were not given the time to plan their lives in advance. In many cases, they finished work and found that they would not get their pension for years afterwards.

[Jim Shannon]

The hon. Gentleman is absolutely right. They thought they had planned for their pension age, but suddenly found that it was grasped away from them at the last moment. The impact on women throughout Northern Ireland is incredible. I have said this before, and I will keep on saying it: we need to do the right thing. The hon. Member for North Ayrshire and Arran said that we must do the right thing. I am here to do the right thing and make sure it happens.

This equalisation was initially brought about in 1995, when an EU directive prompted the Government to equalise retirement age for men and women—then 65 and 60 respectively. The Government chose to level it at 65, and it was decided to increase women’s SPA in stages between 2010 and 2020. Women born in 1950-51 would retire at 61, those born in 1952-53 would retire at 62 and so on until 65 was reached for all post-1955 women in 2020.

I am unsure how we got to the stage at which we are asking women to work into their 70s and beyond. People are working longer, but they will not live longer if we make them work longer. I believe that enough is enough. I am not alone in that view. I read an article—the hon. Member for North Ayrshire and Arran referred to it—that said:

“A United Nations independent expert has affirmed the stance taken by campaign groups including the Women Against State Pension Inequality…that certain women have been affected disproportionately by recent pension age changes.”

We cannot ignore the United Nations—we often refer to it.

“Philip Alston’s report Statement on Visit to the United Kingdom on extreme poverty and human rights, out on Friday (16 November), showed the number of pensioners living in poverty in the UK had risen by 300,000 to 16 per cent in the four years to 2016/17. This was despite measures such as the triple lock guarantee. But he found a group of women born in the 1950s had been particularly impacted a ‘poorly phased in’ change in the state pension age.

Mr Alston said: ‘As was made clear to me in a number of submissions and through powerful personal testimony, a group of women born in the 1950s have been particularly impacted by an abrupt and poorly phased in change in the state pension age from 60 to 66.

The impact of the changes to pensionable age is such as to severely penalise those who happen to be on the cusp of retirement and who had well-founded expectations of entering the next phase of their lives”—

as the hon. Member for Ipswich (Sandy Martin) said—

“rather than being plunged back into a workforce for which many of them were ill-prepared and to which they could not reasonably have been expected to adjust with no notice.’”

[Ross Thomson]

I want to share the experience of Ann from my constituency, whom I met on Friday. Three months prior to her 60th birthday, she had to leave work due to a health issue. She lived alone and had no income, and therefore had nothing to resort to bar her life savings. She is now living on a very small work pension, but had to add to that significantly from her savings. Over the years, she had done exactly what the hon. Gentleman spoke about. She had planned how to spend her savings, but she now has to use them for ordinary living expenses instead. There is an inherent unfairness in that.

[Jim Shannon]

The hon. Gentleman is absolutely right. He has told us the experience of his constituent, as I have done—many of mine tell me the same thing. They are not physically able to continue to work and have planned their future in what they thought was the right way, only to find that it has been—if I may use this word—stolen from them by this system. I could not do anything other than come to the debate in Westminster Hall to speak on behalf of the 5,800 constituents of mine who have indicated their distress and need for the Government to address the issue.

I understand that others want to speak and I want to try and keep to the timescale that you indicated, Mr Bone, so I will conclude. It is clear that others can see what the Government cannot. We must address the issue, and address it now. I hope the Minister will outline how he intends to address it rather than—with respect—wash his hands of it. It is time for action, not for words. Enough is enough.

Universal Credit Roll-out: Nottingham

Jim Shannon Excerpts

Wednesday 14th November 2018 Westminster Hall

[Alex Norris (Nottingham North) (Lab/Co-op)]

I beg to move,

That this House has considered the effect of the roll-out of universal credit in Nottingham.

The latest stage of the universal credit roll-out in my city took place about a month ago, which is why I sought this debate. One of the vagaries of this place is that we cannot always get the debates that we want at the time we want them, so I am pleased to be able to raise the subject at this important early stage of the roll-out.

Some claimants in the city were already on universal credit, but many will remain on legacy benefits for a while longer, until managed migration. For the past month, however, all new claimants in our city have had to claim universal credit. So far, so simple, but having seen how the roll-out has gone elsewhere and its impact in communities that are very similar to mine, my constituents and I are anxious, fearing that this will be anything but simple. We are anxious that it will mean delays, reductions in benefits, debt, rent arrears, visits to food banks and more poverty. My colleagues in Nottingham—I am glad to be joined by three of them—and I do not accept that for our community. I believe that the roll-out should be stopped.

I will talk about experiences in similar parts of the country to ours, and specific concerns that I hope the Minister can address. It seems incredible that universal credit was first announced eight years ago. The rationale was to replace the six working-age benefits. The aim was to simplify the benefits system, improve work incentives, reduce the potential for error and fraud, and mitigate poverty among low-income families. Those are broad principles that we share—I certainly do—but universal credit as it is today is not that system, and it is the most vulnerable people who are suffering and will continue to suffer as a result.

We are pleased to have campaigned for—and, in the Budget two weeks ago, secured—money back into universal credit. That is, however, only a small fraction of the £7 billion in social security cuts still to come by 2022-23, according to Institute for Fiscal Studies analysis. That will both make families worse off and be worse for the Government and the state of the public finances—a point I shall cover later.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for bringing this matter before the House. What he cites is not specific to Nottingham; it applies to other parts of the United Kingdom, including my constituency of Strangford. Does he agree that this “simple” scheme, which is easy for those who are computer-literate, is not so simple for many? More consideration must be given to those who are not able to claim correctly due to genuine misunderstanding and miscommunication, given that they can be penalised with sanctions if they cannot work through the system. The system simply does not work for the ordinary person.

[Alex Norris]

The hon. Gentleman is right that what I have to say about Nottingham is informed by the experience of other parts of the country, so it will be true for every community in the land. Yes, the system is supposed to be simple—we want a simple system that promotes work—but there are lots of pitfalls, which people with the best of intentions are falling into. I completely share his view that such people ought to be supported.

In June, I was startled to read that the National Audit Office had found that universal credit might end up costing more than the existing system, that it cannot prove that it gets claimants into work, and that it is unlikely ever to deliver value for money. We should all look at that.

Universal Credit Split Payments

Jim Shannon Excerpts

Wednesday 10th October 2018 Westminster Hall

[Danielle Rowley (Midlothian) (Lab)]

I beg to move,

That this House has considered universal credit split payments.

It is a pleasure to serve under your chairmanship, Mr Davies. Universal credit has been slammed by charities, experts, politicians from both sides of the House, and—most importantly—people living and suffering in the system. Just today, we heard from former Prime Minister Gordon Brown about the failures of universal credit and how it pushes more people into poverty, but today I want to focus on automatic split payments.

I firmly believe that it is a matter of human rights for all women—for all people—to be entitled to financial independence. The Equality and Human Rights Commission agrees, but the Government do not seem to. This year, I met the Employment Minister, the hon. Member for Reading West (Alok Sharma), to talk about universal credit. In that meeting, I asked him about automatic split payments, but I was told they were not going to happen. I was disappointed by that response, which is why I am glad to have secured today’s debate to raise the issue and add the voices of some of the people I have been speaking to. I hope that I will get some answers from the Minister and that he will take away some of the issues that I raise.

First, as I said, I believe that this is a human rights issue. When couples work, they do not get their wages paid into a single account, so why should welfare payments be any different? It seems like an oddly backward system. Under the current system, universal credit payments for a household are paid into a single bank account or joint account. Recipients of the joint award are required to nominate who receives that payment at the outset of the claim. For much of this debate, I will refer to women being able to have financial independence, but of course the policy will affect men too. The policy is not that the man automatically receives the payment; however, it will mainly affect women, which is why most of my comments will refer to women.

A report by the Scottish charity Engender pointed out that the policy

“does not account for the fact that financial decision-making takes place within the context of gendered power dynamics. The majority of jointly awarded ‘out of work’ benefits are claimed by men and assumptions that couples own, access and control joint banks accounts on an equal basis are unfounded.”

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Lady on securing the debate. Universal credit was rolled out in my constituency in September, so it is fresh to us. My staff went on a reminder course to learn how to do it, and one of the key issues that has come up is the very issue that the hon. Lady has brought forward. We are new to universal credit, but split payments—especially in a home where one partner might have a mental health issue—are simply a must. Does the hon. Lady agree that rather than having to apply for a legal power of attorney, we need the Minister’s Department to apply discretion in allowing split payments to be part of the system? They have to be part of the system; if not, it is unfair.

Personal Independence Payments

Jim Shannon Excerpts

Tuesday 11th September 2018 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Gentleman for bringing this matter to the House for consideration. I fully support the comments he is making. Universal credit is only just happening in my constituency, and vulnerable people who I represent and who speak to me every week about PIP have already contacted me in fear of the changes and charges. Does he agree that communication to vulnerable and ill people is not acceptable and that more needs to be done by the DWP and the Government? Hopefully the Minister can bring back something positive in her response.

[Hugh Gaffney]

Yes, I agree. In doing research yesterday, I found that Disability Rights UK has highlighted DWP research that four out of 10 PIP claimants do not appeal, as it would be too stressful for them. We have unfair assessments that result in people losing money, but they do not appeal because of the stress that would be caused. What a disgrace!

Funeral Poverty

Jim Shannon Excerpts

Tuesday 11th September 2018 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Member for South Shields (Mrs Lewell-Buck) on securing the debate. She has spoken on this matter before. Indeed, I think that everyone who has spoken today has spoken on this before. It continues to be a bugbear for us all, which is why we are here to make our contributions. I thank all those who have spoken in the debate, including the hon. Lady who introduced it, for their valuable comments.

This is a sensitive issue. I can remember dealing with such issues when I was a local councillor, so I have some knowledge of how the system back home seeks to address it. I want to tell a story that clearly illustrates the issues. In my home, a pauper’s funeral happens more than I like to think, unfortunately. The very name “pauper’s funeral,” as the right hon. Member for South Holland and The Deepings (Mr Hayes) indicated, encapsulates what happens.

A lady that my staff and I had sought to help had no family—we were not aware of any relatives, to be truthful. As an elected representative, I and my staff had a relationship with her though our office. We heard that she had passed away and the girls in the office rang the council to find out the funeral arrangements, because they wanted to pay their respects. They wanted to make sure she was not buried alone, because they were aware that she had no immediate family. They were not aware of all the circumstances until she died. They were sensitively told by the council that as no one had claimed the body, the funeral would take a number of weeks to arrange. In Northern Ireland we have a tradition of people being buried three days after they die. A week is an awfully long time to wait. I know that here on the mainland it can sometimes take even longer, never mind a few weeks.

The girls were taken aback when they were told that there would be no funeral service. They could not understand why that should be the case. The remains would be taken from the undertakers in the cheapest coffin and laid to rest in the council-allocated paupers’ grave section, where there would be no funeral service as such. That was probably our first introduction to what it really meant to have a pauper’s funeral, although in my capacity as a councillor I was aware of it happening once or twice before.

Whenever someone passes away, a catalogue is drawn up of all the items in their house, if they have a house, or the car or whatever it may be. Unfortunately, in the cases that I have been aware of, there has been nothing of value in the house. Everything was taken out and disposed of.

[Mr Gregory Campbell (East Londonderry) (DUP)]

To go back to what my hon. Friend said about Northern Ireland compared with the rest of the UK, with the much shorter time between the demise of the deceased and the burial, is that not all the more reason for clarity at a very early stage, particularly given that in most cases some members of the extended family will be in other parts of the country, or possibly overseas? It is a very short period in which we need clarity and certainty about the extent to which family members, if there are any, will have to contribute to the funeral costs.

[Jim Shannon]

I thank my hon. Friend for his intervention. Clarity is what we hope to achieve through this debate. There are occasions when someone has passed away and their families have not had the financial capacity to pay for the funeral, which is why we have paupers’ funerals, where no one is there to help. During my time as an elected representative—as a councillor, as a Member of the Assembly and now as a Member of Parliament—I have had occasion to be involved with families who have had no financial assets at all. The system has changed now, but it used to be the case that if no one in the family was working, or if someone was old or disabled or on benefits, at least some of the fees for the funeral could be provided. I know that the system has changed in Northern Ireland, and probably elsewhere.

To go back to the lady who passed away, when my parliamentary aide asked for details of a time so that she could attend and read a psalm, she was told that she would have to ring back closer to the time, but they could not guarantee that the lady would not already be buried. My hon. Friend referred to clarity. My goodness me! We did not even have the detail of when the funeral would be held. The lovely council official—I want to be clear that they were trying to work within the system—reassured the girls that often the undertaker used by the council would pray before the burial. Although that eased some of the angst, the girls were upset that that was the way things had to be done. I wish to thank the undertakers who, in their own time and as a mark of respect, ensure that there is a brief prayer or reading. They are not paid to do that, but they still do it, and we thank them for that. There are a great many people of good will and intentions who wish to help.

We understand that local authorities simply cannot afford to foot the bill for a full funeral, but a pauper’s funeral is a terrible way to be laid to rest. I am a firm believer, as are others in the Chamber, of “absent from the body and present with the Lord”. There is something to be said for a respectful interment. I am in no way saying that the bodies are treated with disrespect, but could changes not be made to ensure that people can at least attend the interment of the body? It is important to have a send-off.

Some cases have been fairly prominent in TV programmes. We have had occasions when people die alone, and perhaps there is some money to bury them, but they do not have anyone to go to their funerals, and it is important to have someone to pay respects and to be respectful at a funeral. Could a change not be made to ensure that people can at least attend the interment of the body, so that those who could not be expected to pay directly for the funeral, such as social workers and church families, can at least pay their last respects?

I should have said at the beginning—it was remiss of me not to do so—that I welcome the Minister to his post and wish him well. I said that to him in the Chamber last week and I have now said it again publicly. He contributed greatly in his previous ministerial post at the Department for Work and Pensions. I wish him well.

Funeral poverty reached a record £160 million across the UK last year, and one in six people say they struggle with funeral costs. That goes back to how the financial pressures associated with funerals can make an already difficult time overwhelming for bereaved families and loved ones, causing additional stress on top of existing grief and leaving a lasting negative impact on their health and wellbeing. Those who are on benefits can apply for help with the funeral costs of a loved one, but “help” is the operative word. They can receive some money towards burial fees and the rights to burial in a particular plot, and money towards cremation fees, including the cost of the doctor’s certificate, and up to £700 for funeral expenses, such as the funeral director’s fees, flowers, a coffin and travel to the funeral. The estate will be liquidated and any money will go towards the funeral. However, bearing in mind that the average funeral in Northern Ireland costs just under £3,000, there is a large discrepancy and a large debt for a grieving family to pay off over time.

I read in the press this week that the Co-op is offering a cheap funeral—in no way does that take away from its commitment—for about £1,900. It would be fairly basic, but none the less it helps some families. In her introduction, the hon. Member for South Shields referred to the hon. Member for Swansea East (Carolyn Harris), who has been involved in the issue of funeral costs for some time and had an Adjournment debate in the main Chamber on this very issue. She is not here today, but her story is incredible. For those who have not heard it, I gently suggest that if they get the opportunity they listen to or read her story. That lady had nothing when it came to paying for a funeral, and the community came together to help and support her at a time of need.

Many funeral directors have started a system that enables families to contribute to payment schemes—I have them in my constituency and I very much welcome them. They take away the need to make a financial commitment all at once and have helped some people. Everyone in this Chamber knows that we are sure of only two things in this world: death and taxes. The costs of a funeral have certainly risen over the past 15 years, so I join the hon. Member for South Shields and other hon. Members in asking for an increase in the social fund funeral payment, to ensure that people are not having to go to food banks in order to pay for a loved one’s service. Many organisations, such as Christians Against Poverty, can sometimes assist. The churches also help, and some funeral directors cut their costs to the bone to make a funeral happen.

There has to be a better way of doing things. I am asking the Department to consider upping the funeral grant in line with inflation and allowing people connected to those who have the indignity of a pauper’s funeral at least to get friends or connections to say a few words as the remains are interred. That is important. We have to have more compassion for people who are in dire circumstances, and believe in the fact that no person would allow a loved one to be buried in an unmarked grave if they could possibly help it. We can do something small, such as providing for a set time of interment if requested, to allow some dignity and marking of the occasion. We all understand why councils cannot and should not put on fancy funerals, but allowing people the opportunity to pay respects cannot cost that much, can it?

Equalities Legislation: Guide Dogs

Jim Shannon Excerpts

Wednesday 5th September 2018 Westminster Hall

[Alex Chalk]

I entirely agree with my hon. Friend and I commend her council for taking those enlightened steps. The problem is that geographically the approach taken is a bit hit and miss. It is patchy, so someone with disabilities might find that one year they live in a local authority that is proactive and in another year they live somewhere where the position is markedly different. I agree that better training and awareness is important, but with the carrot must come the stick. Premises that do not want to avail themselves of the guidance and teaching available must be aware that should they choose to ignore it, there could be consequences for them. Too many may take the view that it is part of the cost of doing business: they might get a bit of flak on social media, but from a commercial point of view, ultimately there will be no comeback. We need to redress the balance so that there can be a proportionate comeback.

We should not be living in a society where the individual who has been wronged is effectively left with the choice of opening the social media gates of hell. They may be uncomfortable with the kind of vigilante response that that could elicit. The last thing the responsible citizen who was wronged in Cheltenham wanted was someone putting a brick through the window. He did not want to see the business close down. He recognised that sometimes people fall into error. What stuck in his craw—and in mine—is that there does not seem to be a middle way where the breach can be marked in a proportionate, process-driven way.

[Jim Shannon (Strangford) (DUP)]

I apologise for not being here on time—I have visitors to the House today.

In Northern Ireland we have looked at opportunities for small businesses and start-ups to be given free training about the initiatives that are important in relation to guide dog legislation. Does the hon. Gentleman feel that should happen not just in Northern Ireland—where it happens across all councils—but across the whole of the United Kingdom of Great Britain and Northern Ireland?

[Alex Chalk]

Free training is an excellent idea, because it is not terribly onerous—the key tenets in the Equality Act could be summarised in about 10 minutes. If that were part of standard practice, that would be very positive, because in Equality Act matters, as in so much of public life, prevention is better than cure. The individuals I have spoken to want simply to be treated fairly and the problems not to happen in the first place. I entirely endorse that sensible call. This debate is about trying to pick up the pieces where, sadly, the message does not get through or the opportunities are not taken up.

We in the House are often encouraged—sometimes by social media or mainstream media pressure—to do something: to pass legislation, to show that we care, to show that issues are important to us. That is really only half the battle. Legislation without enforcement is a dead letter and risks bringing the legislative process into disrepute and tarnishing the reputation of this place. The good news is that there are steps that we can take to redress the balance where the Equality Act is concerned. It is within our grasp. There is an opportunity to make our society fairer and more decent for the people we should be seeking to serve—people of all abilities and disabilities.

ESA Underpayments

Jim Shannon Excerpts

Thursday 19th July 2018 Commons Chamber

[Sarah Newton]

Let me absolutely clear: I do not want anyone in our country to be living in poverty. Nobody on the Conservative Benches wants to see anyone living in poverty, which is why we have put so much effort since 2010 into lifting people out of poverty, including people with disabilities. We have been increasing benefits each and every year, and we will continue to do so. We are also increasing the amount of support for disabled people and those with health conditions who tell us they would very much like to work.

[Jim Shannon (Strangford) (DUP)]

I, too, thank the shadow Minister for bringing this urgent question to the House, and the Minister for a very comprehensive response and for righting the wrong. Well done, Minister. With some 70,000-plus people who have transferred to ESA from another benefit not being paid the full amount of ESA, does the Minister have any idea at this stage of the number of those in Northern Ireland who have been underpaid, and who is looking after the Northern Ireland applicants who are seeking reimbursements?

[Sarah Newton]

Every person who deserves their payment will be treated fairly and equally—I absolutely assure the hon. Gentleman of that—but I will write to him with specific details about people in Northern Ireland.

Defined-benefit Pension Schemes

Jim Shannon Excerpts

Tuesday 10th July 2018 Westminster Hall

[Laura Smith]

I thank my hon. Friend for making that point. From my conversation with the Minister before the debate, I am sure he will be happy to talk about that in his speech and when he meets the Pensions Regulator.

The Green Paper shows that there has been a clear decline in gilt yields over the past two decades. The public sector trade union, Unison, is of the view that most schemes that did not hedge their risk should seriously consider using that discount rate method.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Lady on bringing this matter to the Chamber. On average, people believe that their living expenses will account for 34% of their pension, yet they will actually account for 49%. Does she agree that more should be done to ensure that people make the most of pension schemes by paying in themselves? I think that is the thrust of what she is saying—that individuals should make more effort rather than relying on employer contributions, which in many cases have been found to be suspect.

[Laura Smith]

I apologise to the hon. Gentleman—it was hard to hear him because of the sound of the fans. I will come on to those points.

Basing assumptions on gilts may artificially inflate deficits and future service costs for the sponsoring employer and scheme members. That may lead to the unnecessary closure of schemes to new members and future benefit accrual. Unison’s experience is that some employers would rather pay more and use the increase in costs as an excuse to close their DB scheme, saving money by transferring members into a DC scheme with lower employer contributions, which results in reduced pension benefits for scheme members.

Not only are DB schemes desirable, but they can be affordable and good value for money. We should do everything we can to protect them. The Government’s role should be to provide an adequate regulatory framework, meaningful enforcement and appropriate incentives to help encourage sound decision making and ultimately to provide decent pensions. I welcome the Government’s White Paper and the regulator’s ambition to be clearer, quicker and tougher.

I hope that the Minister can provide me with a little more clarity or reassurance about three issues. First, there appears to be no new relief for employers struggling with DB liabilities. Although I welcome the suggestion that there should be penalties for directors who do not take sufficient care of scheme members’ interests, without support for struggling employers, tougher rules may simply incentivise more of them to close DB schemes in favour of DC schemes with inferior pensions for workers. Secondly, what additional resources are being provided to ensure TPR has the capability and capacity to effectively regulate the sector?

Thirdly, encouraging consolidation over alternative options would not prioritise the protection of members’ benefits, which should be the Government’s primary focus. I understand that insurance buy-out remains the best solution for guaranteeing member benefits in DB schemes. Securing member benefits should be paramount. With an insurer, members are almost certain to receive their benefits in full. The Association of British Insurers believes that prices are the best consultants have ever seen, and that that option is available to smaller schemes.

Although I understand there is a need to provide options for employers that simply cannot secure a buy-out, any new framework should not incentivise consolidation purely on the basis that it is a cheaper option. The risk of investment failure was highlighted by the Pension Protection Fund in a submission to the Select Committee on Work and Pensions. In the absence of a substantive employer, the security of members is entirely dependent on the investment performance of the fund and the associated buffer. Consolidation is therefore less secure than buy-out, and profit withdrawal in years of good investment returns may lead to scheme failure by preventing a strong build-up of reserves.

Consolidation also means that risk, rather than being dispersed across several schemes, becomes focused on one investment strategy. Different consolidators may be inclined to pursue the same investment strategy, resulting in a high correlation of risk in the DB sector. Obviously, that may lead to all schemes failing at the same time. I am also concerned that younger members may shoulder the risk of commercial consolidators collapsing. We should not pursue any policy that leads to greater intergenerational unfairness.

To put it plainly, I am concerned that the option to consolidate or transfer into a super-fund may be seen by some employers as another bolthole to escape their liabilities on the cheap.

Accessibility Challenges: Invisible Disabilities

Jim Shannon Excerpts

Monday 18th June 2018 Commons Chamber

[Martin Whitfield (East Lothian) (Lab)]

It is an honour to stand in Parliament tonight to raise the important matter of the accessibility challenges faced by those in society who have invisible disabilities.

The World Health Organisation estimates that 1 billion people across the world carry a disability in some form, which is a telling statistic. We should consider the suggestion in an American survey that nearly 74% of people have disabilities that are hidden. However, I by no means wish to use parliamentary time to shun or ignore the accessibility challenges for those who rely on wheelchairs or mobility assistance. We have made huge progress, but there is still a long way to go to ensure that—from street furniture to narrow doors, steps and bollards—Britain is open and inclusive for all, yet these infrastructural improvements must go hand in hand with challenging the preconceived attitudes that exist towards both people with visible and people with invisible disabilities.

I want briefly to explain why I am so proud to stand here tonight. It stems from the tireless work of a young woman whom I have had the privilege to know, teach and fundraise for, and someone whom I am proud to call a friend. Grace Warnock is a diligent and inspirational campaigner for disability awareness, and someone whom I had the pleasure of teaching in Prestonpans in my constituency of East Lothian. She was diagnosed with Crohn’s disease, a condition which I watched my mother suffer from in her 60s. I am sure that Members across the House are aware of the disease, particularly the challenges they face on a day-to-day basis. From the start of this debate, to the House adjourning this evening, one more person in the UK will be diagnosed with Crohn’s disease, and that person will join the 300,000 people in the UK with the disease. It is a disease that has no cure.

I have had the pleasure to speak to Crohn’s and Colitis UK, which is not just dedicating valuable time and effort to research this condition, but—for the purposes of this debate, I want highlight this role—is at the forefront of the campaign to end the societal stigma attached to this disease. Crohn’s and Colitis UK is clear that overriding stigmas and false assumptions often challenge people with inflammatory bowel disease. That is why its own research shows that 49% of people living with this condition have been abused or verbally questioned for using an accessible toilet.

When Grace was just in primary school, she too experienced this. She noticed early on how people looked at her differently when she came out of an accessible toilet. She was faced with their bemusement, and people saying, “Why are you using those toilets?” Worse, she often faced glares of hostility. She could sense people were looking at her angrily, thinking, “You should queue like the rest of us.” Grace could have ignored this—she could simply have pretended she did not acknowledge this antagonism—yet she went home and decided to do something about it. She did not want to shout at these people or to scream in their faces; she wanted to educate them.

[Jim Shannon (Strangford) (DUP)]

I thank and commend the hon. Gentleman for bringing forward this very important debate. The “Not all illnesses are visible” slogan is being taken on board by my local council in Northern Ireland. Ards and North Down Borough Council is promoting the slogan in all the toilets in the council areas. Does the hon. Gentleman agree that more firms and businesses and more public bodies should ensure that people understand that a wheelchair is not necessarily the only reason for accessing a disabled toilet and that many people with hidden illnesses have the same need to do so?

[Martin Whitfield]

I am grateful to the hon. Gentleman for his intervention. It is true that the fact that something is not visible does not mean it is not there. Indeed, it was the absence of anything visible that seemed to upset the people who saw Grace standing outside the accessible toilets.

Grace went on to develop “Grace’s sign”—a powerful visual aid to articulate her inclusive message. I will abide by parliamentary protocol and hold back from displaying the sign, but for those not aware of it I should explain that it depicts a conventional wheelchair symbol, alongside which are a man and woman standing, both with an emphasised red heart. Why the red heart? Grace is asking all of us to think about those invisible disabilities, but she is also asking people to think using their hearts—to hold back and have the empathy to recognise that people with a range of different conditions may need to use accessible facilities.

The sign projects a powerful message: think with your heart and do not rush to judgment. Think and express yourself with compassion and decency. I am very proud at how far the sign has travelled across Scotland—from the Parliament building in Holyrood, to airports, shopping malls, leisure centres, businesses, council offices and the school where I used to teach. Slowly but surely, attitudes are changing across Scotland. I believe it is now the time to spread the campaign across the whole UK.

What has Grace achieved aside from what I have already mentioned? The Edinburgh Evening News awarded her “local hero” status and she won a Young Scot award and a British Citizen award. Recently, she also won the Prime Minister’s prestigious Points of Light award. People will not hear too many voices on this side of the House praising the Prime Minister, but I take this opportunity to thank her for the unique honour she bestowed on Grace. At her high school, Grace also received an award for her work outwith the school in the community.

In Scotland, this is the year of the young people—a fitting celebration of the flair, creativeness and compassion that I know, as a teacher and a father, young people hold. I am sure all Members would agree that those traits are at the very core of Grace’s sign. I hope they will also agree that we need to take the ethos of Grace’s campaign and begin applying it to all hidden disabilities. As I prepared to discuss this matter, it was striking how many organisations and charities came forward to ask me to advocate on behalf of the causes that they represent. There is also the wonderful debate that we have just had in this Chamber.

Personal Independence Payments

Jim Shannon Excerpts

Monday 4th June 2018 Commons Chamber

[Ms McVey]

My hon. Friend is right. As I said earlier, more than 3 million assessments have been carried out, 9% have been appealed against and 4% have been overturned, so it is clear that the vast majority are right. However, we want to ensure as far as we can that all of them are right. If that means recording assessments—and I personally would prefer video recording—that is what we should do, so that everyone can have confidence in what is going on.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State for her statement. PIP applicants who are wards of court because, owing to brain injuries, they are unable to make any decisions for themselves must nevertheless go through the application process and are subject to house visits, although, according to the court, they cannot be allowed to make any financial or personal decisions. Is it not time that such people did not have to go through a process that clearly disadvantages them and causes considerable trauma and angst?