Management of the Economy and Ministerial Severance Payments

Debate between Justin Madders and Patricia Gibson

Tuesday 15th November 2022 Commons Chamber

[Patricia Gibson]

Does the hon. Gentleman agree that the £65 billion used to shore up pension funds following the mini-Budget—£1,000 for every man, woman and child in the UK—is also a testament to the incompetence of this Government?

[Justin Madders]

Indeed; we are all the poorer for this folly and we will all be paying the price for many years to come. And where was the Prime Minister during all this? He did not say a word; I did not hear anything from him about why this was wrong. He kept silent and kept his cards close, playing the game, waiting for the opportunity to strike. But now it is his responsibility to clear this mess up and he had better do that.

While the markets have now begun to stabilise a little, the damage has already been done for many, with those coming off fixed-rate mortgages facing payment increases of five to seven times their current deal and some being shut out of the housing market entirely. Anyone on a fixed rate, and that is many of us, will be looking ahead in despair and fear over the next 12 to 18 months at what their mortgage payments will be. Martin Lewis has warned about a ticking timebomb; it is indeed a timebomb and, worse still, this did not need to happen at all.

The impact is not solely on those with mortgages. In my constituency, the pressure on the private rental sector is extremely high, which has already contributed to increasing rents. It is now impossible to secure a three-bed family property for less than £900 a month, which is about 50% of the average income in the constituency. I am already hearing from landlords who cannot afford to continue to rent out their properties without drastically hiking the rents, something many of them know is simply not realistic. They are therefore selling their properties, which will reduce the number of available properties in the private sector and push up rents again. Other landlords are now considering issuing section 21 notices to their tenants, because they know that if they relet the tenancies they can get 20% to 30% extra on the rents; that will push yet more people into homelessness.

Finally I want to say a few words about a group who, sadly, know only too well the impact of high mortgage rates: mortgage prisoners who have been trapped on standard variable rates for years. A constituent of mine is facing the 14th year on such a rate, and in October his mortgage increased once again by £100 a month. In 2021, he was on a fixed rate of 4.54%, double the average two-year fixed rate deal available at the time. Through no fault of his own, my constituent is limited in the mortgage products he can access and while the amendment to the Financial Services and Markets Bill would have capped mortgage prisoners’ SVRs and ensured access to fixed-rate deals under certain circumstances, the Government chose to vote that down. The measures introduced to provide switching options were found to have a limited effect by the Financial Conduct Authority, and with the contraction of mortgage products, hope for mortgage prisoners is now at an all-time low. They have experienced for years the issues that are now widespread in society, leading to frustration from many that their plight was met with little coverage or understanding when it could have been addressed and mortgage rates were historically low. I recognise those frustrations.

The Government also must ensure that any measures cover not just mortgage prisoners but other people who are trapped in their homes. Many leaseholders with unsafe cladding or other fire defects, and those with egregious ground rent clauses that make the properties unsellable, will see their costs increase due to interest rates going up, but they will not even have the choice of being able to sell their properties because a lack of Government regulation has let them down by leaving them in a home that they do not really own but they cannot leave. That is a wrong that it is taking far too long to put right.

Oral Answers to Questions

Debate between Justin Madders and Patricia Gibson

Thursday 23rd January 2020 Commons Chamber

[Justin Madders (Ellesmere Port and Neston) (Lab)]

4. What recent discussions she has had with the Secretary of State for Work and Pensions on transitional arrangements for women born in the 1950s affected by the increase in the state pension age.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

8. What recent discussions she has had with Cabinet colleagues on the effect of the increase in the state pension age on women born in the 1950s.

House of Lords: Abolition

Debate between Justin Madders and Patricia Gibson

Monday 18th June 2018 Westminster Hall

[Justin Madders]

I appreciate that, but it does not make the existing system any more acceptable. The problem that successive Governments have found with the House of Lords, and the trap that they and we all fall into, is that we obsess about how we shall make the system work, rather than saying as a statement of principle that we do not believe that an unelected Chamber in this country is an acceptable way to proceed. We should state as a starting point that we want abolition, then, if we agree, we should have a period of time in which to work out exactly what we want instead.

[Patricia Gibson]

I very much agree with the hon. Gentleman who is talking about the credibility gap—people cogitating and reflecting on legislation when they have no democratic accountability. Does he agree that the credibility of the Lords is further undermined by the fact that they pay no tax on their House of Lords earnings or allowances?

[Justin Madders]

I was not aware of that. In the past, some people have had issues to do with their involvement in making donations to political parties or with paying their taxes. It is absolutely right that someone resident in this country and taking part in the democratic process should be subject to the same rules as every other citizen.

We are told that expertise and knowledge is in such abundance among Members of the other place that radical reform would pose a risk to the ability of Parliament to scrutinise legislation. The truth, however, is that out of the 13 most recent nominations, seven were former Members of Parliament, one a former general secretary of the Labour party and one a former deputy chairman of the Conservative party. Indeed, since the Life Peerages Act 1958, a third of the 1,452 peers created have been former MPs who were therefore relieved of the bothersome inconvenience of having to obtain the consent of the electorate before being allowed to continue in public life. Many more nominees were councillors, party donors or staff. Of the Members appointed since May 2010, half are either former MPs or former local councillors, and a further fifth are former special advisers or party employees.

It appears that there is very little difference between the qualifications and types of people in the two Houses. In response to the argument about expertise, what is it about earning the legitimacy of the popular vote that precludes a person from having expertise on a particular subject? The House of Commons has plenty of experts from all walks of life. The fact that they have to face elections does not seem to prevent them from coming here in the first place.