Universal Credit

Jim Shannon Excerpts

Wednesday 9th May 2012 Commons Chamber

[Maria Miller]

As I was saying, the hon. Gentleman rightly picked up on the importance of the online aspect of universal credit. It is designed to be an online service, providing access and support to claimants 24 hours a day. Importantly, it will also provide the service where constituents are, as opposed to where jobcentres are.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for giving way, and I apologise for not being here for the beginning of the debate. I was at another engagement down below, and I did not realise that the Adjournment debate had started.

I feel that certain people in the middle class are going to fall into the child poverty bracket as a result of the introduction of universal credit. What assurance can the Minister give me that such people will not be adversely affected by the changes that the Government are proposing?

[Maria Miller]

I welcome the hon. Gentleman’s intervention. At the point of transition to universal credit, we want to ensure that people will continue to receive the support that they were receiving before, if there have been no changes to their circumstances. It is important for everyone to understand that, as a result of universal credit, we will be making work pay. We will ensure that more people can stay close to the labour market, which will help them not only to get out of poverty but to stay out of it. We all know that families can cycle in and out of poverty; it does not affect a static group of people. It is therefore important that we have that support in place.

I want to get back to the digital nature of universal credit. We make no apology for the fact that this is designed to be an online service. It is designed to be available 24 hours a day, and to be available where claimants are and when it is most convenient for them to use it. The hon. Member for Nottingham East is right to say that that will not be the right approach for absolutely everyone, but let me stay with the group for which it will be the right approach. Estimates show that about 80% of individuals are already accessing services in an online scenario. We are not assuming that 80% will use the online service at the outset; we have always recognised that not everyone will be able to claim online. However, we expect that the proportion who do so will grow over time. We will supplement all of that with a face-to-face and telephone service that will always be available, for just the kinds of groups of people whom the hon. Gentleman referred to.

To ensure that we resolve any issues in advance of the system going live, and that we have the right kind of support in place, we are already working with local authorities on a number of pilot schemes. I urge the hon. Gentleman to look at the work that we are doing with the Local Government Association. We have also recently issued a joint prospectus calling on local authorities to deliver pilots to support residents in preparation for the introduction of universal credit in 2013. The pilots are expected to start in the autumn of this year and to end by September 2013. We will focus on delivering the kind of face-to-face support that individuals might need when claiming universal credit. I hope that he will agree that we will have a wide range of support available. It will be available online, as well as face to face and on the telephone.

The hon. Gentleman is right to say that it is important to get the IT right for this, and we are well under way in our designs and in testing the system to ensure that universal credit is introduced in 2013. Our ambition will, of course, always be to move the majority of people on to use of the online system, and we are working closely with other Government Departments and beyond to ensure that the best possible support is there to enable access to the internet for many people, supporting claimants to get even more value from being online.

The hon. Gentleman expressed an interest in the issue of fraud and the work being done to ensure that safeguards are in place. It will come as no surprise to him to hear that we take the issue of fraud very seriously indeed. Its prevention has been built into the heart of all policy and service design development. Universal credit will be protected by comprehensive and sophisticated cyber-defence and counter-fraud systems, which are currently under development with leading suppliers. I am sure that the hon. Gentleman will want to stay close to the sorts of issues that we are dealing with, but he will understand if I do not go into the details of those systems, as they are sensitive and not for open discussion.

The hon. Gentleman raised the issue of monthly payments, which I have touched on a little already. To be absolutely clear, we believe it important for universal credit to reflect what people experience in the workplace when they are working full time. For the most part, that means being able to budget around a monthly payment, a monthly salary or a monthly amount of money coming in. We will ensure that there is flexibility in the system for those who find that exceptionally difficult, but we believe that this will be an exception and not the rule.

[Jim Shannon]

I can see the logic behind the change to monthly payments, but it is clear that some who get weekly payments are not knowledgeable enough to know how to manage their moneys. Will the Government give any help to those who will depend on single weekly payments to start with, who will then have to manage on monthly payments, on how best to manage their money?

[Maria Miller]

The hon. Gentleman will be reassured to know that my noble Friend Lord Freud is looking at exactly those issues. We know that changing people’s behaviour cannot happen overnight. People need support and we will make sure that we understand the sort of support that will prove the most effective, as the hon. Gentleman would expect us to do.

The hon. Member for Nottingham East talked about the importance of banking in this process. Direct payments to bank accounts are an important part of helping people to prepare for work. We will encourage claimants to use bank accounts, and we are discussing this very issue with the British Bankers Association. We recognise, however, that it will not be suitable for everybody, so we expect to continue to pay rent directly to landlords in some cases and we will continue to ensure that suitable payment arrangements are in place for everybody. The hon. Gentleman is right that we need that nuanced approach for some individuals. The bulk of individuals, we believe, should be able to cope with the sort of monthly payments that I mentioned earlier.

Women’s Aid

Jim Shannon Excerpts

Wednesday 14th March 2012 Westminster Hall

[Mr Clarke]

I agree absolutely with the hon. Lady, but if—as I saw at Monklands Women’s Aid—staff at centres are compelled to contemplate the financial circumstances that they are facing as an organisation, that might take away some of the time that they would like to allocate to the wider objectives that she quite properly identifies.

For many women, the fact remains that refuge is desperately needed in emergency situations when their lives and their children’s lives are at risk. I hope that I have convinced the Minster that Women’s Aid is indeed a special case.

[Jim Shannon (Strangford) (DUP)]

Just 10 days ago, I had the opportunity to visit the Women’s Aid centre in Bangor; it is in North Down, but it is also responsible for Strangford, which is my constituency. The staff there very clearly indicated the financial squeeze that faces them. They illustrated it by talking about the future not only of the centre in Bangor, which is responsible for a large catchment area, but of the staff. If the Government do not address those issues, I fear that the future of Women’s Aid will have a question mark over it, not only in the right hon. Gentleman’s constituency but in mine.

[Mr Clarke]

Again, the hon. Gentleman speaks from experience and I passionately believe that we should not ignore such experience. He is dealing with what he sees in his constituency, day after day, and also reflecting our experiences in our own constituencies elsewhere.

Frankly, life and death issues are at stake here, and children can be victims of abuse too. We need to ensure the provision of free and safe refuge, which is crucial to the safety of women and children who are suffering abuse. That is an inviolate principle. At a time of desperation, people in Monklands, across Scotland and—as we have heard—throughout the United Kingdom must be afforded the opportunity to seek refuge. Most regrettably, domestic abuse is a considerable problem across our country.

Women’s Aid also performs a major role in the continued development of the children who are affected by abuse. In many families, children are often caught in the centre of a storm, and thus Women’s Aid focuses its attention on providing continuity for such children.

I urge the Minister to reconsider the current proposals on housing benefit. My plea today is that she reflects upon the comments that I and others make. Later, other hon. Members will undoubtedly make valuable contributions to the debate, and it is more than likely that they will be based on the kind of experiences that we have already heard about from hard-working, conscientious constituency MPs.

This subject and the real people who suffer domestic violence are too important for there to be a partisan Government. I am leaving an escape route for the Government when I refer to the unintended consequences of their proposals. If the Government ignore my representations, that could have a devastating impact on women across the country, leading to more women and children walking the streets.

We need the continuation of the marvellous back-up services that are provided by Women’s Aid and—lest we forget—managed by outstanding, caring people. Today I want not only to convince the Minister but to gain support from all parties. We cannot and we must not abandon women who are seeking refuge. In the words of the late Mother Teresa of Calcutta:

“Being unwanted, unloved, uncared for, forgotten by everybody…is a much greater hunger, a much greater poverty, than the person who has nothing to eat.”

Pension Industry

Jim Shannon Excerpts

Tuesday 21st February 2012 Commons Chamber

[David Mowat]

I agree. The key word that the hon. Gentleman used in that intervention was “transparency”. If the market is to work, there must be transparency and comparability, but it seems to me that there are people in the industry who do not want the market to work. The market might work better if independent advice were freely available, but in the past the industry has effectively controlled advisers by treating them as paid intermediaries with a commission structure that compromised their independence, and between 2002 and 2007 its payments to such intermediaries for their advice rose by 50%. Hopefully the RDR—the retail distribution review will deal with the problem, and I give the Government credit for that.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on raising this matter tonight. My hon. Friend the Member for North Antrim (Ian Paisley) mentioned people who have taken out small pensions and who also fall into a tax bracket. Does the hon. Gentleman agree that their position should also be reviewed by the Government?

[David Mowat]

I shall be making a number of suggestions to the Minister later, and I certainly agree with what the hon. Gentleman has said.

I also give the Government—in fact, the last Government —credit for setting up the National Employment Savings Trust, without which auto-enrolment would be entirely untenable. Given its low charges and what appears to be a sensible investment policy, the organisation has an important contribution to make. However, as I shall make clear later, I think that the Government could be more radical about what NEST can achieve.

Let me summarise the position by saying that the fund management part of the industry has evolved into a mess. The market has failed owing to asymmetry of information and lack of transparency, and we are about to impose auto-enrolment on top of that mess. The £35 billion of tax subsidy that is currently provided will increase, and will be supplemented by employer and employee contributions which will also run into the billions. Those cash flows ought to be finding their way into better pensions rather than into the Chelsea property market.

I ask the Minister to assure us that before any of this happens, he will take the following steps. First, there should be a template for charge structures that will facilitate transparency, comparability and reporting. An analogous debate is taking place in the Department of Energy and Climate Change about energy suppliers, who are being required to introduce tariffs that allow comparison. Exactly the same should happen in this industry: indeed, it is more important for it to happen in this industry than in energy.

Secondly, there should be a charges cap on any supplier who becomes involved in auto-enrolment. I was staggered to read in a written answer that the Minister did not consider that necessary. A 1% cap was applied to stakeholder pensions, and the same should apply in this case.

Thirdly, some of the restrictions on NEST should be removed. The philosophical basis of the contribution limit of £4,400 and the restrictions on transfers in and out was that the purpose of NEST was not to compete with the market, but to operate in the parts of the market in which organisations do not wish to operate. That is an inadequate approach, and I think that the Government should be more proactive. Finally, the Government must ensure that there is no further slippage in the introduction of the RDR. Unbiased investment advice is sorely needed, and needed soon.

I fear that unless those measures are adopted, auto-enrolment will compound a failure that could easily become our next mis-selling scandal.

Let me now say something about annuities. It is possible for people to take their pension pots and then purchase annuities that will support them for the rest of their lives. However, the background is already tough—quantitative easing and life expectancy have driven down annuity rates—and the solvency II requirements may make the position even worse. It is clearly critical that the public obtain the best value possible. This means shopping around, but that is exactly what the big players in the industry do not want to happen. They want to stop it because it is their belief that they “own” that customer relationship, and they want to turn that ownership into more profit using two techniques. The first is the attempt to make the transition from savings into annuity seamless. That means putting an application form in with the final pension statements along with their own quotes. This, combined with a relationship sometimes developed over decades, is often enough to trap retirees into unsuitable and inadequate products. The second technique is using the asymmetry of information that we have seen in other areas to ensure that the retiree would need a maths qualification and a lot of intellectual self-confidence to sort out a better deal.

I have mentioned complexity, and I found the following sorts of annuities on the web—enhanced, fixed, guaranteed, immediate needs, impaired, income, index-linked, joint life, lifetime, lump sum, protected rights, purchase life, single life, variable life, with profits and smokers. For the average punter to work out intelligently what is best for him and his family using that lot is very tough indeed. The fundamental business objective is simple, but that is not how the market has evolved. The consequence has been mis-selling on an epic scale. A recent report from the CASS business school mentioned an existing provider offering £3,600 for an annuity pot and then a subsequent provider offering £26,000. That may be an outlier, but the facts are that 90% of retirees buy pensions from their existing fund manager and a very high number of those get below what the open market would offer. This matters to the Government—or it should do—because those massive profits siphoned off by the industry are resulting in hardship and an increased reliance on state benefits.

What should we do? I have five suggestions for the Minister. First, the Government should consider setting up an equivalent of NEST, specialising in the low cost provision of annuities. The IT and business process challenges around annuity provision are easier, as the cash does not need to be collected. At a stroke, the Government could provide an organisation that was a hallmark for fairness and best practice. Lord Myners has suggested that the Government allow people to purchase Treasury bonds direct, which would fit in with my proposal.

Secondly, the Government should consider making it illegal for the organisation that administers the saving regime to also provide an annuity. The advantage of this is that it keeps the Government out altogether while helping to make the market work. At a stroke, we would get new entrants to the market who are likely to be smaller, hungrier and more efficient. There are many precedents for this in the private sector. I used to work in the IT industry and it was not uncommon for those who designed an application to be forbidden to bid for implementation, because the procurement people wanted to ensure that the relationship advantage that had developed did not affect the pricing for the final step.

Thirdly, if the Government continue the existing system, in which providers attempt this seamless transition, there should be a rule that an annuity provided should be signed off by an independent financial adviser. That is a simple step and would ensure that the lethal combination of asymmetry of information and “relationship abuse” do not combine to rip off the retiree.

The fourth measure is a similar regime for annuities as I have suggested for charges for investment funds. We should insist on a few, relatively simple categories, and that would force transparency and comparability, also forcing the market to work properly. I believe in the market, but in this industry it has not worked. The industry will say that standardisation will limit choice, but they would say that, wouldn’t they? This is a simple transaction that needs to be made easier.

Finally, the Government should implement a system in which retirees approaching the annuity purchase point are much better informed about their options. They should be able to go to the open market and it should be forbidden for application forms to be put in with the actual pension round-up statement. The National Association of Pension Funds has a number of sensible measures in this regard, but I am of the view that that fifth one, on its own, is not enough.

In summary, it is vital that our people in our country save more than they are saving at the moment, but we do not wish to continue saving if the tax relief on that is channelled off for the property market in Chelsea and does not go to the savers themselves. Ordinary families continue to be penalised by an industry that has made supranormal profits by creating and exploiting a market failure, and the Government need to address that. If the Minister allows auto-enrolment to go ahead without reform, we are setting the scene for the next mis-selling scandal. I understand that it is tough for him to resist the lobbyists, who will be all over him on this, but self-regulation is not enough and the time to act is now.

Work Capability Assessments

Jim Shannon Excerpts

Wednesday 1st February 2012 Westminster Hall

[Tom Greatrex]

I entirely agree with my hon. Friend. Such issues were among those identified. My contention is that those problems should have been dealt with before the system was rolled out further, and we are now dealing with the consequences of those decisions.

The Atos half-yearly report for 2011 was very upbeat. It noted that operating margins had increased year on year to €166 million—an 11% increase from the first half of 2010. Its operating margin in the UK in 2011 was a healthy €34 million. The outlook for the second half of 2011 was similarly rosy: Atos expected profits to increase by 6.2%. I say all that not to congratulate Atos and marvel at how successful it has been, but to preface my next remarks.

Recommendation 13 of Professor Harrington’s first review was

“better communication between Decision Makers and Atos healthcare professionals to deal with borderline cases”.

In their initial official response to Harrington’s 2010 review, the Government accepted that recommendation, noting:

“Decision Makers already contact Atos healthcare professionals to discuss individual case issues in some instances… we will ensure this happens more often… Agreed measures will be adopted nationally during 2011.”

In a letter that I received from the DWP dated 1 November 2011, I was advised that good progress had been made on that key Harrington recommendation. The DWP letter claimed that

“Atos Healthcare Professional deployment in Benefit Centres has been trialled and has proven to be an effective way of improving communications to discuss borderline cases.”

However, on 20 December 2011, just over six weeks later, in answer to a written question that I had tabled, the Minister advised that

“at the end of the trial, Atos health care professional capacity pressures meant that the initiative could not be continued. From the start of December, DWP and Atos have agreed the implementation of a telephone helpline so that Decision Makers can speak directly to health care professionals to obtain medical advice in specific cases. This is an interim arrangement until Atos are in a position to reintroduce the deployment of health care professionals in benefit centres.”—[Official Report, 20 December 2011; Vol. 537, c. 1082W.]

That is a hugely significant development. This may have been due to when I tabled the question or when the Minister chose to answer it, but he slipped that answer out just before the Christmas holidays. The fact that Government policy is not being followed by a company in receipt of £100 million of taxpayer funding a year will startle many of my constituents and, I am sure, the constituents of many other right hon. and hon. Members.

I should be grateful to the Minister if he gave me answers to a number of questions. What exactly does the phrase “capacity pressures” mean? Does it mean that Atos cannot recruit the right number of health care professionals to undertake its work? Is it unable to fulfil its contractual obligations because of the amount of work that it has to get through? What discussions has he had with Atos about those capacity pressures? Does he believe that they undermine the ability of Atos to fulfil its responsibilities under the contract? What other services have been withdrawn as a result of capacity pressures in Atos? I am sure that if he is not able to answer, I will find a way of crafting written questions to get the answers from him.

To me, the phrase “capacity pressures” implies an undermining of the way in which the Government sought to deal with these issues, which was by saying that Harrington’s recommendations would be implemented in full. If that is not happening in the instance to which I have referred and perhaps in other instances because of capacity pressures in Atos, is that not a damning indictment of the failure of the system as it is currently set up?

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on bringing this matter to the House. No one decries the need for profit, but is it not time that we got away from profit and on to service delivery? Does the hon. Gentleman share my concerns about many patients who go through the process of a work capability assessment and particularly those with cancer, whose health deteriorates when they experience more stress? There should be an emphasis on people’s health, rather than on the profit at the end of the year.

[Tom Greatrex]

I thank the hon. Gentleman for his intervention. He puts his finger on a very important point. I am referring to the anxiety and concern that the process causes people, particularly if they are waiting for an assessment. If they enter the appeal process when they have had an assessment, they could wait up to eight months for an appeal. There is an issue about the whole of that process. Long time scales are involved because of the sheer number of people who are being dealt with—or not being dealt with. At the same time, we should never forget that those individuals are trying to deal with the process, and they are feeling huge anxiety. Particularly if they are already unwell, that could well affect their health. That is an important point.

Inflammatory Bowel Disease

Jim Shannon Excerpts

Tuesday 31st January 2012 Westminster Hall

[Chris Evans]

I agree completely with the hon. Gentleman, and I will develop that point about workplaces further as I go through my speech. I am glad that he has raised it. Very often in this place, we quote statistics and sometimes we use them to bash the Government, but in the middle of all those statistics there are real human tragedies and stories that are taking place. As I have said, I am glad that the hon. Gentleman raised that point and I hope that his mother is dealing with life a bit better now.

I want to return to the point that I was making about young people with IBD. At a time when more and more of our young people are struggling to find work, the last thing that we need is for them to rule out career options. Since becoming involved in the campaign to raise awareness of IBD, I have heard story after story from young people who are unable to fulfil their potential because of the problems that the condition causes. This story is particularly common:

“Leanne is a full time foundation degree student from Crewe and has a part time job in a local pub. As a 19 year old she finds it especially hard having an illness which isn’t highly understood or visible. Having a condition which includes side effects like fatigue means not all employers or educational institutions understand the challenges she faces, and she even says that most people mistake this fatigue for laziness. She has had bad experiences in the past with employers and teachers who do not fully understand her condition and what it can mean on a daily basis. She describes herself as a passionate individual who wants to commit to jobs and her education, but finds it difficult on bad days. She has in the past been called “unreliable” during a flare-up of her illness. This ignorance can be damaging and can have a lasting effect on someone so young.”

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Member for Islwyn (Chris Evans) for bringing this matter to the House. The hon. Member for Brigg and Goole (Andrew Percy), who spoke earlier, has illustrated very clearly the issues involved. As elected representatives, every one of us has to deal with these issues every day with our constituents.

The hon. Member for Islwyn has referred to work. The civil service in particular seems to have issues with its “early warning scheme”, as it calls it, and there is no flexibility in that system. Does the hon. Gentleman feel that it is time for the civil service to address that issue, so that people who want employment in the civil service can stay in it and not have to leave?

[Chris Evans]

Yes, absolutely, and that is really the crux of the issue. IBD is not a condition that causes symptoms all the time; there are flare-ups, and then the condition goes back down and people go back to normal life. If there is a problem in the civil service, I hope that the Minister will address it when he responds to the debate.

In today’s economic climate, with youth unemployment at the level that it is, we cannot allow someone with IBD to believe that their condition bars them from the job market. I heard another story of a young person, James, who was diagnosed with IBD in his early teens. James is currently studying for a degree at the university of Sheffield, but he is worried about managing his symptoms in the workplace when he graduates and begins to look for work in what is already a challenging job market. James has said:

“I think the use of the toilet without restrictions has to be paramount. I also think employers should give employees the opportunity to confidentially declare any illnesses which may affect the efficiency of their work. I think employees, regardless of what illness they have, should be allowed to use the facilities, so people who are ill do not feel isolated. Also, I think there should be no stigma attached to having the sudden urge to use the toilet. This is often the case, I would have thought, if you work/live with the same people for a long time. I am concerned that, after having worked so hard to get my first job after I graduate, if I have to have time off for illness or procedures I will be under more pressure in my job. The job market is so competitive and if someone is less ill than me, I will be placed under more pressure due to a situation beyond my control. It is pretty inevitable that I may need time off while working, but due to the competitiveness of the job market there will always someone who will be able to take my place.”

--- Later in debate ---

[Chris Evans]

That was the point that I was trying to make. All we are looking for is a little understanding from employers. We are not asking for a great change in legislation. We want them to foster an environment where people do not feel embarrassed about going to their employers about their condition and that, when they do have to take medication, they are allowed time to do so. That will not affect anyone’s productivity; if anything, it will improve it.

As I have said, I do not want anyone to think that only young people face this problem. Some are forced to take early retirement due to the unpredictable nature of their disease. Until last year, John was a university lecturer. He found that working and living with a chronic condition such as inflammatory bowel disease was too much to cope with. He was unable to rely on the stability of his bowels while giving lectures. He chose to take early retirement without much of a fight. It took 18 months to get his pension released early on partial incapacity grounds, which took a toll, as his condition was going through a flare-up. Even though he has come to terms with his current medication, in order to help keep his symptoms under control, the IBD is difficult to live with and dictates how much travel he can do on a daily basis. It has been financially tough on John and his family, as he was the sole source of income, which has now been halved. The majority of his lump-sum payment made on retirement had to be used to fit a downstairs toilet.

I do not have to tell anyone how important it is to keep people in work, particularly in this economic climate. However, we have to accept that people with fluctuating health conditions may be in or out of work, and employers have to adapt to the different needs of those with the illness.

[Jim Shannon]

One clear issue is the disability living allowance and the benefits system. Does the hon. Gentleman feel there are occasions—I am aware of them—when the benefits system is not flexible enough to enable someone to achieve disability living allowance and to return to work later, if they have to?

[Chris Evans]

That is why we need flexibility in the benefits system. When people have this debilitating disease that very often stops them from working—they cannot do anything, they cannot leave the house—they cannot claim benefit. They do not even slip into the system or anything like that. That has to be borne in mind.

In the week that we are debating the remaining stages of the Welfare Reform Bill, it is important that the benefits system reflects the different needs and requirements of those with fluctuating health conditions. It is crucial that those with IBD do not struggle to cope at work through illness, or live in poverty when they are unable to work. I have heard stories about people with the disease having no income, which forces them out to work. Take this testimony:

“As my symptoms are not regular, I do not qualify for any benefits. So when I am actually too ill to work, I must simply either choose not to work or lose money. It is stressful having to explain the situation without going into too much detail.”

The Government need to recognise the disabling elements of long-term fluctuating conditions such as IBD and include provision for those in the benefits system. The importance of that is underlined by the Government’s introduction of universal credit, and the need to attend back-to-work interviews. The unpredictable nature of IBD means that people with the condition, who are required to attend interviews and undertake other work-related activities, may at times require flexibility, should they experience a flare-up of their condition.

Ultimately, IBD does not have to hinder someone’s work potential. People live with the condition and make a positive impact in the world of work every day. All they ask for is sensitivity and understanding. I do not think that is too much. Therefore, I believe that employers, health professionals and policy makers have a duty to ensure that there is a greater understanding for those with fluctuating conditions such as IBD.

Unemployment

Jim Shannon Excerpts

Wednesday 14th December 2011 Commons Chamber

[Chris Grayling]

I regret every single redundancy in any sector in any part of this country. It is a terrible blow for the people concerned. I do not know about the case, but if the hon. Gentleman wants to talk to me afterwards, I will ensure that Jobcentre Plus support from a rapid response team is available to his constituents. I regret any such situation. However, we are having to get to grips with the challenges of the public sector because of the mess we were left. If we did not do that, unemployment would be higher, not lower. I stress that we will do everything we can to help the hon. Gentleman’s constituents and those elsewhere who are in a similar position. Any unemployment is too high, and we will do all we can to help tackle it.

Let me briefly consider the youth contract because questions have been asked about it. It was announced shortly after our debate a month ago and I think that it will enhance the programmes that we are already delivering. It builds on the programmes that are already in place and will involve doubling the work experience programme so that we should be able to guarantee every single young person who has been out of work for three months a work experience place. Through the Work programme, it provides a subsidy to employers to take on a young person who has been unemployed for a longer time. The CBI proposed it to us, but it is more generous than the programme that the CBI requested. The shadow Minister made the point about the previous Government’s scheme in 2009, but the difference is that we are delivering something to a template that leading business groups requested. They say that it will make a real difference to the likelihood of an employer taking on a young person. I hope and believe that will make a genuine difference.

[Jim Shannon (Strangford) (DUP)]

One of they key factors throughout the United Kingdom that perhaps the Minister has not mentioned yet is small and medium businesses. In Northern Ireland, 90% of those in employment are employed through small and medium businesses. What help does the Minister intend to give small and medium businesses to create jobs and thereby address youth unemployment?

[Chris Grayling]

I agree that small and medium-sized enterprises are crucial. I hope that the subsidy that is paid to employers through the youth contract will be attractive to large and small employers. We are clear that the role that small businesses play is important. Opposition Members raised issues about unemployment among the older generation and I believe that our new enterprise allowance, which is proving successful in the areas where it has been operating so far and is now available throughout the country, will provide a real route for people who want to build their own SME in future.

Mr Deputy Speaker, do not listen to what you hear from the Opposition about the Government doing nothing about unemployment. We have a comprehensive range of support, which I believe can make a real difference to the unemployed. We face huge economic challenges and some of the most difficult economic circumstances that any Government have faced. However, unemployment is and will remain a priority for the Government. We will do everything that we can to tackle it.

--- Later in debate ---

[Alex Cunningham]

I agree. My hon. Friend provided an illustration of that earlier when he mentioned the job losses that have been announced in a company in his constituency. For some time the Tories said that we did not have a plan for jobs. They may have systematically dismantled our investment programmes for job creation, but it is not too late for them to adopt our five-point plan for jobs and growth.

Like others who have spoken, I shall concentrate on the subject of young people. The acceleration in the number of young unemployed people will help this Tory-led Government to go down in history as the Government who could not care less about our country’s most important asset.

[Jim Shannon]

It has been suggested that businesses should be given an incentive to employ people aged between 16 and 24, in the form of a £1,500 tax relief which would cover national insurance contributions for a year. Does the hon. Gentleman believe that such initiatives are capable of providing employment for unemployed people?

Pension Plan Charges

Jim Shannon Excerpts

Wednesday 7th December 2011 Westminster Hall

[Brandon Lewis]

The hon. Gentleman makes a good point, and I will touch on it later. I fully agree that one of the issues that people do not understand is that a figure that seems small now can have a huge impact on how a pension pays out later on—up to 25%, as I will touch on later. The hon. Gentleman is absolutely right. That is exactly the clarity and understanding that we need.

Provident Financial’s clients are low earners, who often borrow just £100 or less to get through to the end of the month. The company told me recently that the issue for many of them is not so much about whether they can save. They may be able to save only a small amount; I know that the Minister appreciates that, because we have had a conversation about it. In some cases, it could even be just a few pounds a week or month. However, all that money can add up to mean something later.

The hurdle that those customers find is psychological. The company said to me that people who are on the lowest incomes understand and learn how to manage their money and how to get their family through a week or a month. Within that, they will still do certain things—£1 or £2 a week on sweets for the children, or something like that. What they do not do is trust an unnamed and unknown big organisation with some of their money, because it is complicated and there is no face to it. That is why they use organisations such as Provident Financial rather than high street banks.

By dealing with the issue of transparency, we may well be able to break through that psychological barrier and get more people saving. If the industry is clearer and puts things across more simply, it will instil more confidence in the customers that it is looking to pick up. I will return to that with a clear example in a moment.

The system is complex. People’s underlying attitude is unsurprising, given that we have such a diverse and complex pensions industry, with a wide range of schemes and options alongside an array of different regulatory regimes. A wide range of items may be included in pension charges—and alas, with no clear industry standard at the moment, providers often differ on what is included. Just to name a few, any or all the following may be included: product management, communications, services, administration, regulatory requirements, some investment management and, possibly, the cost of providing advice. How can any consumer find an easy way to compare like with like when there is such a range of options and figures printed on a statement? It is simply not possible.

[Jim Shannon (Strangford) (DUP)]

I, too, congratulate the hon. Gentleman on bringing the matter to the House today. We need clarity about hidden charges—charges that people do not know are being made and which are removed from people’s funding regularly—and about sales commission. There are often hidden charges before someone can leave a scheme.

There is also excessive trading in respect of those who are trying to keep on top of the portfolio; there is a charge every time that happens, and customers do not know that. There are a lot of hidden charges that customers do not know about. Does the hon. Gentleman think that such charges should be made known to the pension holder, so that they are aware of the costs involved?

[Brandon Lewis]

It is absolutely right that as much as possible should be transparent—potentially, everything should be as transparent as possible. The hon. Gentleman is right. As I will come on to say, people do not necessarily understand that when they come out of certain schemes or change jobs, the potential cost to them can as much as double. The costs are effectively hidden, because they are not clear or transparent at the time of entry, let alone of exit. That is why we need regular transparency. I will touch on that further in a moment.

It does not seem possible to find an easy way of comparing like with like. Just last week, the Work and Pensions Committee was taking evidence on pensions and it became very clear from looking at different operations that there are major variations in style between companies. What highlighted the issue of transparency for me more than anything was the fact that one company said that the simplicity and transparency of its charges is its single biggest marketing advantage. If Members will bear with me, I will read a short quote from that session. Adrian Boulding of Legal & General, which I congratulate for having this kind of transparent operation, said to the Committee:

“We compete on price in the market place and we are able to do that because we have invested heavily in technology. If I look at pension schemes that we have sold this year, they have all been sold within a price range of 0.3% at the bottom to 0.8% at the top. 90% of them have been sold at 0.5% or less.”

Again, that is a range of figures that many people will struggle to understand. However, Mr Boulding went on to say:

“One of the particular features of our pitch to the market is that we charge just a single charge for the scheme, whereas some providers now want to charge £1.50 in addition to a fund management charge. NEST charges a contribution charged at 1.8% in addition to a fund management charge. Some insurance companies charge higher fund management charges when people leave the scheme. We charge a simple, straight fund management charge and it is the same for all members whether they are in the scheme or whether they have left, and there is only the one charge. We find that gives us an edge in the market place.”

It was interesting that a company specifically said that the simplicity of its charging—it only has a single charge—was its marketing edge.

What is included in the charge element of a pension fund varies, but the inconsistency in how charges are communicated is an additional complicating factor. In fact, the wide range of approaches is needlessly complicated. Some pensions are regulated by the Financial Services Authority and require an illustration of the effects of charges. Other pensions, mainly those that are trust-based, have no requirement for such disclosure. The stakeholder pensions were introduced in 2001 and I credit the previous Government for introducing something that provided some simplicity and clarity. Stakeholder pensions require disclosure of individual deductions.

The lack of comprehensive and consistent information prevents effective monitoring by the FSA, the pensions regulator, and, potentially, by the Department of Work and Pensions itself. We risk creating a regulatory black hole if we fail to create a clear communications framework. That is why there is also a need to specify which regulator covers which area and to define regulators’ powers to avoid market confusion over which regulator covers which issue—let alone confusion among consumers or among the employers that are implementing a scheme.

The approach taken by different pension providers and schemes also varies widely, as the National Association of Pension Funds has helpfully highlighted. Some providers quote an annual management charge as a percentage; others illustrate the effect in cash terms. Some present information in a personalised form, where charges are illustrated in a very varied way over different periods, whereas others provide information with a generic example. In some cases, the information is prominent, but in others it can be hard to find. In some cases, there are even charges for different parts of the process—for example, fund management prices can be shown separately.

We should compare the pensions sector with the banking sector, in which statements now clearly show what bank charges are on a weekly or monthly basis. The example of the banking sector is certainly one that the pensions sector should look at.

There is also financial jargon, which is unhelpful in any industry. If the range of charges and the communications about those charges are inconsistent, a pensions fog is created, and the impenetrable financial jargon that consumers must navigate has created a further consumer whiteout. In fact, I have used much of that jargon in my opening remarks today. I want to illustrate that point by giving two real-life examples, courtesy of the National Association of Pension Funds. They highlight how difficult it is for any consumer or business to understand what they are taking on with pensions. The first example is taken from a handbook provided to employees on a trust-based scheme. The handbook says:

“The manager’s charges differ according to the type of fund. The charges are made within the fund and are reflected in the price of fund units. With some funds, two unit prices are shown - the “bid” price, at which units are sold, and the “offer” price, at which units are bought; the difference - the “bid/offer spread” - reflects the manager’s dealing costs. The bid/offer spread on these funds vary.”

Then there is an impenetrable table listing six funds, showing for each one:

“a percentage annual charge on fund and a percentage bid/offer spread”.

Just looking around the Chamber now, I can see that Members are already somewhat glazing over with the difficulty of trying to understand what we ask ordinary people to understand in their daily lives.

Living Standards

Jim Shannon Excerpts

Wednesday 30th November 2011 Commons Chamber

[Ian Mearns]

I could not agree more. If we want an economic race to the bottom, that is exactly the sort of policy to follow.

In September 2010 the BBC published a report that demonstrated clearly which regions would suffer most. Spending cuts were “to hit north harder”, it reported. BBC-commissioned research showed that industrial areas in the north-east and the midlands are least resilient to economic shocks. It showed that Middlesbrough is ranked as the most vulnerable, followed by Mansfield in Nottinghamshire, and Stoke-on-Trent. The Experian research suggests how England’s regions may cope or not cope with further public sector cuts. The study looked at the ability of each local authority area to withstand sudden changes in the economy, and a clear north-south divide is evident in the research. Elmbridge and Waverley in Surrey and St Albans in Hertfordshire are the most resilient places, and places such as those I mentioned are the least resilient.

[Jim Shannon (Strangford) (DUP)]

Clearly, the changes in working tax credit and child tax credit will also affect people, and those who are not on the poverty line but are close to it will be pushed towards it. Does the hon. Gentleman believe that the Government’s changes in working tax credit and child tax credit will have a harsh impact on those people who can least afford it?

Disability Hate Crime

Jim Shannon Excerpts

Wednesday 23rd November 2011 Westminster Hall

[Kate Green]

That is an important point and I am sure that it is one that the police will also take note of. Too often there is an attitude that nothing can be done because the victim is disabled and there is scepticism about what disabled victims say. One shocking case, quoted in Katharine Quarmby’s book “Scapegoat”, was that of a blind woman who had been sexually assaulted, but the response of the police was that it was not possible to proceed with the case because, of course, she had not seen her attacker.

In its report, “Hidden in plain sight”, the EHRC has proposed a number of important measures to help to improve the situation. First, there must be leadership and ownership of the issue across all public bodies. This is not an issue simply for one arm of government. It cuts across central Government Departments, local government, the criminal justice system, the education system, health, housing, care, transport, employment and so on. Therefore, a signal from the Minister today of the seriousness with which the Government regard the issue will be important. However, warm words will not be enough. Disabled people want to know how Ministers will ensure that the issue remains a priority for ministerial attention across Government; what structures exist within Whitehall to focus attention and drive action; what accountability mechanisms will be put in place; how public institutions that fail to take action will be compelled to do so; and how Ministers will work with local government to ensure ownership of the issue at local level.

Secondly, such an approach must be informed and supported by the systematic gathering and monitoring of data that spell out the scale and severity of the problem, and by analysis of that data to support and direct policy makers’ attention to where action is needed. We know that there is significant under-reporting of harassment and abuse of disabled people, and there is a need to improve the recording and reporting of disability hate crime.

Radar has responded to that problem through its “Stop Disability Hate Crime” project, which is working with disabled people’s organisations and the authorities to develop a national independent disability hate crime reporting centre, which will provide minimum standards for other such centres, and raise awareness of disability hate crime and incidents and how to report them. The project also maps the disability hate crime third-party reporting sites that already exist or are being established. Also, a survey has been undertaken to find out why disabled people do not want to report disability hate crime and what would make them more confident to do so.

The Radar project is an important initiative and I hope that the Government will look carefully at the lessons that emerge from it, and at ways of strengthening the capacity of third-party hate crime reporting centres as a valuable way of increasing the incidence of reporting. Of course, it will be important that such centres follow minimum standards, but I know that all right hon. and hon. Members will welcome Radar’s work in that area and look forward to its report, which is due to be published early next year.

Thirdly, practice at the front line is, of course, vital to ensure that action is taken swiftly to respond to and prevent harassment or criminal attacks on disabled people. That requires the engagement, attention and effort of a range of public institutions. Crucially, those public institutions must work in partnership with each other and with disabled people to develop and to implement the right strategies to tackle disability hate crime. That partnership working can enable early identification of the patterns of behaviour that we have been discussing today, which is essential if problems are not to escalate. Today those patterns are too often missed, or cases are dealt with in isolation. As a result, the response of the authorities can be fragmented, inadequate or too slow.

In its 2009 report on the security of disabled people, the EHRC pointed out that a range of public authorities were not playing any preventive role: housing associations, social care providers, health care providers, the voluntary and community sector and local authorities. Too often, there is an inadequate response to incidents even when they are reported. That must change. Although there has been some progress in the response of the criminal justice agencies, action across the piece is needed and it is in that context that the Government’s action plan will be so important.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Lady on securing this debate and bringing this matter to the Chamber today. Society is always measured by how it treats those who are less well-off, and that is true of individuals as well as of society as a whole. She has discussed a campaign that she hopes the Government will support. Does she feel that that campaign should not only be an England and Wales campaign but a campaign that goes to Scotland and Northern Ireland, too? If so, perhaps the catalyst to make that happen will come from this Chamber today. I ask the Minister to consider that point too in her response to the debate.

[Kate Green]

That is also an important point, and if there is good practice from which we can learn we will want to learn it in every part of the United Kingdom.

The Government’s action plan will need to include action on developing a better understanding of the motivations of perpetrators of disability hate crime, and of the interventions that are effective in changing such behaviour. It must be a priority to develop appropriate interventions that can be made in schools, which have already been mentioned, in the criminal justice system, through family and community programmes, and in other settings. I hope that the Minister will be able to tell us what analysis and action the Government are considering with regard to those interventions.

The action plan must also address the need for proper training of front-line professionals who may be required to recognise and respond to issues of disability-related harassment. Such training must include training in communication skills and understanding and recognising signals of abuse. I hope that the Minister will be specific today about the steps that the Government are taking to make progress on those matters and I look forward to hearing her response.

Before I conclude, I want to highlight one especially vulnerable group of victims—those people with learning disabilities who have experienced sexual violence or abuse. All too often in those cases, the perpetrator is a partner, a family member or a carer, so the attack is compounded by an abuse of intimacy and a breach of the victim’s trust.

A shockingly high proportion of women with learning disabilities have experienced sexual abuse. The problems that other victims of disability hate crime experience are magnified for these women by their not being believed, by professionals not knowing how to address the issue, and by abuse continuing and escalating over a long period, which happens all too often.

During the summer, I attended a conference with a group of learning disabled women to discuss the measures that are needed to address that form of abuse. The conference was jointly organised by the rape crisis centre in my own borough of Trafford, Salford university and Change, an organisation that is run by and for learning disabled people.

The learning disabled women present at the conference, who themselves were victims of sexual abuse, were absolutely clear about the action that is needed. I should say that they were also prepared to acknowledge that there have been improvements in parts of the criminal justice system, including better awareness among the police, greater understanding of their circumstances and their needs by the Crown Prosecution Service, and greater responsiveness from the courts. However, they also highlighted the need for specialist advice and support to be much more widely available. They spoke about a lack of access to health services and other support services, which happened for a number of reasons: sometimes because of discrimination, sometimes because of a lack of communication skills, and sometimes because they and other learning disabled women were not empowered to express their needs. They repeated that there was a need for training for front-line professionals, which they strongly suggested should be delivered by learning disabled women themselves. They identified an additional barrier that they faced, which was dealing with workers who did not have the confidence to deal with them as learning disabled women.

Women often want to use mainstream services where they can, but feel that the staff are often not equipped to support them. In her role as Minister with responsibility for disabled people, I hope that the hon. Lady takes these points up urgently with colleagues in the relevant Departments, and urges them to engage directly with learning disabled women in formulating Government policy.

I want to put on record my gratitude to the disabled people and their families who have taken the time to describe to me the deeply distressing, shocking and vicious attacks they have experienced, and how the system has sometimes let them down. I also want to thank the families of Keith Philpott and Gary Skelly, members of the Disability Hate Crime Network, Simon Green and Stephen Brookes, and the women I met at Change. Their stories of abuse, violence and in some cases death, have brought home to me that there remains a dark and primitive side to our attitudes to disabled people, which still too often manifests itself in harassment and criminal behaviour that simply cannot be tolerated in any civilised society. I am pleased that we are debating the issue this morning. It must not remain hidden in plain sight.

Pensioners and Winter Fuel Payments

Jim Shannon Excerpts

Tuesday 22nd November 2011 Commons Chamber

[Steve Webb]

My hon. Friend raises the important issue of take-up. Clearly, benefits such as cold weather payments and the warm home discount, which is the £120 off fuel bills in Great Britain, as I mentioned in the letter that I sent, are contingent on receiving an income-related benefit. That is a challenge that we always face. We want to target those who are most vulnerable, but if some of those who are vulnerable miss out on the passported benefits, how do we get that money through without spending it on everyone, resulting in it being spread much more thinly? That is a permanent trade-off and why we are looking at ways of improving the take-up of these benefits and having a mixed strategy—a mix of a universal winter fuel payment that goes to everyone regardless of whether they claim, and targeted help for those most in need.

As a Department we are working with organisations such as Age UK to try to make sure that pension credit materials are provided to them. Those organisations have responded positively to make sure that the literature we provide is easy to understand and reaches the people who need it. I entirely take my hon. Friend’s point that there will always be gaps, and we need to address that. My view in the long run is that if we can have state pension reform that guarantees a state pension above the basic means test, that will go a long way to addressing some of these issues, but perhaps that is for another day.

I do not want to go on too long but I will mention, briefly, the warm home discount. This is important because it is the subject of negotiation between the Government and the big six energy companies in Great Britain that will give £120 off the electricity bills of 600,000 of the poorest pensioners. That will make a real contribution. We do it through electricity bills because pretty much everybody has an electricity bill, not because we think the price of electricity has necessarily gone up more, but it does not apply in Northern Ireland.

There is an interesting question about the negotiations or discussions between the Northern Ireland Executive and Power NI, for example, about whether the Northern Ireland providers could be asked to do the same sort of thing. If the big six are doing it in Great Britain, I cannot immediately see why the same should not benefit pensioners in Northern Ireland. Perhaps right hon. and hon. Members could take that back and challenge their own power suppliers to do more.

Clearly, we need to make people aware not just of the means-tested benefits they can get, but of the help with insulation, cavity walls and so on. Further in response to my hon. Friend the Member for Oxford West and Abingdon (Nicola Blackwood), we as a Government are sending letters to about 4 million of the most vulnerable energy customers, letting them know that they have access to heavily discounted insulation for their lofts and cavity walls. Even when we write directly to people, we do not always get the results that we want, but we are aiming to target people directly.

[Jim Shannon (Strangford) (DUP)]

Is the Minister aware that 43% of those over 75 years of age live in unfit houses? Is that not a group that he should target specifically?

[Steve Webb]

Perhaps I was not explaining myself clearly. There is a whole raft of things that we are doing precisely because low-income households cannot afford the large capital costs of insulation. There is the green deal, the letters that we are sending about subsidised insulation, cavity wall insulation and so on, and the measures that we require the energy companies to take under the carbon emissions reduction target, the CERT scheme. There is a whole raft of things that we are doing, precisely because of the point that the hon. Gentleman makes, which subsidises insulation. It is perhaps a misnomer to talk about that as being long term. Someone’s house can be insulated tomorrow, which will mean savings on their heating bills. It will take a long time to work through the whole housing stock, but that has an immediate and beneficial impact on people today. Perhaps “long term” was not quite the right phrase.

--- Later in debate ---

[Mark Durkan (Foyle) (SDLP)]

It is a pleasure to follow the hon. Member for Upper Bann (David Simpson). I commend him and his colleagues on bringing the motion to the House. In particular, I commend the right hon. Member for Belfast North (Mr Dodds) on the cogent and assertive way in which he moved the motion and anticipated many of the Government’s arguments.

The motion is timely and focused. Contrary to much of the debate, which has ranged far and wide along the full dimensions of fuel poverty, the structural condition of the housing stock, fuel prices and all those vagaries, the motion is focused on something under the control of the House and the Government: the decision on the winter fuel payments. We are clear that all those issues need to be addressed, and the measures taken by the previous and present Governments are to be encouraged, as too are other more far-reaching measures, but given the rampant rise in energy costs for older people and all the other pressures on their incomes, we cannot countenance complacency about the cut to winter fuel payments.

The decision on winter fuel payments represents a clear and present cut imposed by this Government. The Minister tried to argue first that it was not a cut, then that it was a Labour planned cut, but the fact is this: it is a clear and present cut for pensioner households already facing other pressures and difficulties. It is a sleight of hand for people to suggest, “Well, the Government were committed to doing what the previous Government did”, because really they said, “No, we’re only committed to doing what we think the previous Government planned, not what they did.”

The hon. Member for Thurrock (Jackie Doyle-Price) said that we have to talk to and listen to our pensioners. I have, and every single one has told me that the cut is an issue for them, and every single one is clear that for three years they received payments at a certain level, but that this year they will not get them at that level. That is a cut, and it is a cut from this Government.

[Jim Shannon]

Does the hon. Gentleman agree that this is at a time when they need it most?

[Mark Durkan]

Yes, of course it is at a time when they need it most, and it is not only the time of year when they need it most but the time in the economic cycle—with all the difficulties that people are facing.

We have heard some duplicitous arguments from Government Members. On the one hand many people talk about the difficulties with means-tested benefits and with supporting pensioners through pension credits, but on the other hand we have heard criticisms of the fuel payment and the fact that it is not means-tested or discriminatory. We have heard contradictory arguments.

Indeed, the Minister earlier argued against the whole scheme, structure and logic of winter fuel payments. He actually argued against the allowance altogether and said that better, more discriminating interventions were available to protect people against fuel poverty and to support more deserving pensioners. In the light of his logic, I wonder whether the Government plan fundamentally to review or redesign the fuel payment.

The previous Government introduced the single annual payment in 1998, but the first time I heard it advocated was in 1988, when my predecessor, John Hume, commended to the then social security Minister, John Major, the introduction of an annual thermal allowance to overcome many of the difficulties with the cold weather payments, their inadequacy and the poor and inconsistent triggering system. Thankfully, we got something similar with the winter fuel payment in 1998.

Over the years, the amount of money committed to the payment has changed and top-ups have been introduced. Pensioners have come to see those top-ups as a given, and considering what the Prime Minister said going into the election, they had every right to expect them to remain a given. The motion tabled by my compatriots in the Democratic Unionist party gives the House the opportunity to signal to the Government that that is what we want and what pensioners expect.

Many valid arguments have been made about how to tackle fuel poverty—improving energy efficiency, for example. Although some of those measures can be introduced in Northern Ireland at the devolved level, others need wider intervention from here. Those could include more up-front investment in energy efficiency retrofit schemes or VAT concessions, not least to stimulate work in the hard-pressed construction sector, which is not building new houses. There is an awful lot of work that people with construction skills could do to retrofit and improve existing houses, and there are many things that young people who want to get construction skills could do on such schemes. The Government need to think more widely about other measures to tackle fuel poverty, but they should not use the existence of other interventions as an excuse to justify this unjustified cut.

I shall not rehearse the statistics on the levels of fuel poverty in Northern Ireland that my colleagues have mentioned because other Members want to speak, and nor shall I rehearse the number of winter deaths from fuel poverty either in the UK at large or in Northern Ireland. I shall only make the point that those deaths are avoidable and that we need to take what steps we can to avoid them. This cut is avoidable.

The Minister asked, “Where else can the money come from?” I do not necessarily agree with some of the suggestions from right hon. and hon. colleagues, although I am glad that the Government moved on from some of the vanity projects—for example, the NHS IT scheme. Money could also be saved on Trident.

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

It gives me great pleasure to speak in this House on behalf of the elderly and those in need, and to address the issue of the winter fuel payment.

I read a statement the other day that said:

“The world is getting older. The UN has called the current global ageing trend a situation ‘without parallel in the history of humanity.’ Here in Northern Ireland, our very own society is ageing…An ageing demographic like this carries significant consequences for the fabric of our community. It changes how we plan the way we live; education systems, health and social care, work life, family life. It affects older people now and in the future.”

I am aware of the clear demographic changes in my constituency of Strangford, to which many people move to retire—it is a beautiful place to visit at most times, but it is also a nice place to retire—and where the issue of winter fuel payments comes up over and over again. It comes up because—let us be clear about this—winter fuel payments are not a luxury, but something that goes to pay for fuel, which, for most elderly people in my constituency, means oil. Therefore, the cost is greater than anywhere else. It is no exaggeration to say that literally hundreds of my constituents have spoken to my offices about this issue, and it is clear what they are telling me: winter fuel payments are critical for them to get through the winter.

Age NI has a vision for Northern Ireland and the United Kingdom:

“To create a world in which older people flourish,”

and:

“To enhance and improve the lives of older people”.

Those are the words of Age NI, but they should apply everywhere in the United Kingdom, and be taken on board by all the elected representatives in this place as well.

Age NI has three themes—health and social care; poverty; and equality and human rights—but this evening we are focusing on poverty. Poverty affects health and social care, and winter fuel payments and poverty affect equality and human rights as well. Although there are many ways of helping—my right hon. Friend the Member for Belfast North (Mr Dodds) spoke earlier about the pension credit, and the Minister responded in an intervention—we need a way of speeding the system up. The system needs a sense of urgency; I cite the number of times that I have to phone through to the pension credit system to ask for something to be done only for me to have to return to the problem a week later or perhaps the week after that. The system also needs less bureaucracy and paperwork.

The autumn spending review is an opportunity to put older people at the heart of Government policy and to plan for an ageing population. Northern Ireland has some 300,000 people of retirement age, who make up 17% of the population, and the trend is upward. Unfortunately, the figure will be 24% or 25% in a few years. The largest increase will be in what is sometimes referred to as the “older old”. It is not an “Irishism” to say that: it refers to those who are 80-plus, who feel the pain of winter more than most. Other Members have underlined that point today, stressing the importance of all those who fit into the pension bracket, but especially those who are 80-plus, of whom it is estimated that there will be some 130,000 in a short period of time. Again, that is a concern.

Two fifths of single pensioners and one fifth of pensioner couples have no income other than their retirement pension and state benefits. Whenever we put the issue in perspective, we see that the winter fuel payment means a whole lot to those people. Some 44% of my constituents are in fuel poverty. By the way, the same proportion of those entitled to draw the pension credit—44%—are not claiming it. When the Minister responds, I will be keen to hear her ideas about how we can ensure that they apply. One of the figures underlining this issue that came up in research is that average weekly unclaimed benefits are estimated at between £1.2 million and £2.3 million, which is a vast amount of money. It is important that we address those issues.

Some 23% of older people across certain parts of Northern Ireland are living in poverty, whereas the figure is 16% in the UK. The Minister referred to how we gauge the extra money in the winter fuel payment to reflect the temperature. I made the point in a Westminster Hall debate earlier this year that I drove from Greyabbey to Newtownards in my constituency, speaking to people along the way, and found different temperatures all the way up the road. Obviously the temperature is lower closer to the coast, but in certain parts of Ards it was below zero, while over in Ballygowan and Comber it was minus 3º or 4º. That is an illustration of how the temperature can vary within a 50 to 60-mile radius.

Why is it crucial that the winter fuel payment is made? Because a failure to do so will mean more referrals to the health service, with elderly care accounting for 21% of all the programme of care expenditure. I will not go into all the figures that others have mentioned, but I will make this point. It is important to make a “pre-emptive strike” when it comes to health, particularly through the winter fuel payment, which plays a clear role. For every death from cold, there are eight hospital admissions and 100-plus visits to GPs and health centres. When we add that to the figures, we know what we have to do about the winter fuel payment—it helps to avoid lots of those issues, too.

Elderly care expenditure per head for Northern Ireland is £2,086, while in Scotland it is £2,313 and in Wales it is £2,109. I would also like to make an important point—the hon. Member for North Down (Lady Hermon) made this point too—about Alzheimer’s and dementia. In some 26 years as an elected representative, I can never recall a time when so many people had dementia or Alzheimer’s. We therefore need to enable our senior citizens to enjoy a level of health that will not cost more later on. The winter fuel payment makes that contribution. The Government have stated that they will restore the earnings link for the basic state pension—that was indicated earlier. The income-poverty figures show that 23% of older people live in poverty, while the figure is 16% for the UK. Some 15% of people in Northern Ireland live in severe poverty—the figure is 9% in the UK, up 3% in the last year—while 30% of single women over 75 live in poverty, and 42% of those homes are condemned.

The winter fuel allowance is the biggest topic in my three advice centres. For those who qualify, the situation is simple. The price of oil has increased—indeed, it has never been as high. If the Government have any intention of reducing the winter fuel payment, balancing the books will not happen. Many OAPs have no income other than the state pension, as I said earlier. This was an issue last winter; it was an issue for me at the parliamentary elections a year and a half ago; it was an issue at the Northern Ireland Assembly elections back in May; and it is an even more critical issue today. I urge hon. Members to support our proposal.

[Mr Deputy Speaker (Mr Nigel Evans)]

I call Mr Weir, who is to resume his seat no later than 18 minutes past 7.