Oral Answers to Questions

Kevin Foster Excerpts

Monday 24th April 2023 Commons Chamber

[Kevin Foster (Torbay) (Con)]

12. What steps his Department is taking to help pensioners with increases in the cost of living.

[The Parliamentary Under-Secretary of State for Work and Pensions (Laura Trott)]

This month, pensioners received the largest ever cash increase to the state pension and pension credit. In addition, all pensioner households will receive a £300 cost of living payment. The Government are committed to helping pensioners with the cost of living.

[Kevin Foster]

I thank the Minister for her answer. One of the best ways to help pensioners with the cost of living is to ensure that everyone claims the pension credit to which they are entitled. What work is she doing to engage with the high street banks on their more vulnerable customers who are over the state pension age, both to identify those who might be missing out and to facilitate applications for pension credit, which can make a vital difference?

[Laura Trott]

My hon. Friend is right to highlight the vital role that high street banks play in interacting with vulnerable pensioners and vulnerable customers. Organisations such as Virgin Money and HSBC have worked to promote pension credit uptake. I will be working with them and a variety of other stakeholders as we build up to the cost of living payment deadline on 19 May and the inaugural DWP pension credit awareness week on 12 to 16 June.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Work and Pensions (Laura Trott)]

The hon. Gentleman will know that state pension age equalisation has been the policy of successive Governments since 1995.

[Kevin Foster (Torbay) (Con)]

T5. As the Minister will know, the Disability Confident scheme is a great way for employers to support people into work. What is the Minister doing to ensure that local councils such as Torbay Council are setting an example to other employers in their area?

[Tom Pursglove]

I am hugely appreciative of my hon. Friend, who is a passionate advocate of Disability Confident. I would hope that local authorities would want to engage with the scheme and set the example that they would like to see businesses and other organisations in their communities follow. I know he has good conversations on this question with Councillor David Thomas, the leader of the Conservative group, who I hope may be in a position in a few weeks’ time to help set the standard in the Torbay area and blaze a trail for Disability Confident at Torbay Council.

Saving for Later Life

Kevin Foster Excerpts

Tuesday 7th February 2023 Westminster Hall

[Kevin Foster (Torbay) (Con)]

It is a genuine pleasure to serve under your chairmanship, Mr Hosie. I congratulate my friend—he genuinely is my friend—the right hon. Member for East Ham (Sir Stephen Timms) on securing the debate, along with the work that the Select Committee has done on this topic under his guidance.

For many people, my constituency of Torbay is the place they want to retire to, as many have already done. Its attractiveness as a tourism resort applies equally for those who want a change of lifestyle and to live amongst its natural beauty and enjoy the many activities that are on offer, which they previously had to put to one side to pursue a career. Given its attractiveness to retirees, Torbay is known for having a population mix that tends to be older than average. As I sometimes reflect on in debates about health and social care, in one of my wards, about 9% of the population is aged over 85. In an area where there is a one in 10 chance of meeting someone aged 86 or older, there are some unique challenges around the provision of public services. For example, at a local supermarket there might be a parent and child parking space, but nowhere to leave a scooter.

The focus of the debate is not those who are already retired, but how the dream of enjoying a comfortable retirement—hopefully in Torbay—can be maintained for those in their 20s, 30s and 40s; and how to ensure that they know how to save, what they need to save and what lifestyle their current level of retirement savings will allow them to enjoy. I welcome the Select Committee’s report and its focus not only on how to further develop auto-enrolment, but on some of the trickier situations around encouraging longer-term savings patterns where someone is self-employed or working in the gig economy.

Before I go too much further, it is worth noting the success of auto-enrolment in that endeavour. That one move has transformed saving for later life in the UK for millions of workers. The proportion of eligible workers saving in a pension rose from 44% in 2012 to 86% in 2020. As has been touched on, participation has remained high at 89% for 40 to 49-year-olds—my own age group—and, encouragingly, at 85% for 22 to 29-year-olds. The latter group is crucial, because small amounts that are put aside early can lead to a strong position for retirement in decades to come, not least with the additional employer contributions.

The financial impact has been significant, with an estimated additional £33 billion in real terms saved into workplace pensions in 2021, compared with 2012. It is also worth noting that with the forthcoming increase in the national living wage to £10.42, more people will go over the earnings threshold and therefore start auto-enrolment, with the savings it brings. Despite that major progress, however, it is clear that many are either still not part of a pension scheme or not saving enough to meet their eventual retirement plans.

The right hon. Member for East Ham rightly highlighted that it is worth people having a clear view of what is adequate so that they can think in their 20s and 30s about what they will need to support themselves in their late 70s and 70s. I think we all realise that there will be a difference in that figure across the UK, particularly if housing costs still need to be met. Someone living in central London will be in a different position from someone in Torbay or Glasgow who owns their property and therefore only has to account for the general lifestyle they want. Of course, if they own their property, they will still have to maintain it. The idea that housing is free when we reach retirement is often disproved when a property that has been owned for 20 or 30 years suddenly needs a new roof or a heating system upgrade. People can be capital-rich on paper because of their property, but they can find their finances quite stressed when they have to meet large repair bills.

There is a particular issue with how we encourage those who do not have a specific employer. That is relevant for many performing roles in Torbay’s tourism sector, and I was pleased that the Select Committee focused on it. The Government are right to say in their response that there is not a single solution for such a diverse part of the workforce. As was often mentioned during covid, self-employment includes everyone from those who are just starting out on their own in a small business, often on a relatively low income, to those in magic circle law firms earning significant sums. However, our focus will always be on those who may struggle in retirement, not on high-flying lawyers who are likely to be only too aware of their pension and saving options—probably their tax options as well—in planning for their retirement.

I agree that we need targeted messages that reach people when they consider their finances, or that we should proactively seek to put information about their retirement in front of them regularly. For example, how can we support self-employed people who work seasonally across the hospitality sector? When do they look at their finances? I share some of the thoughts of my hon. Friend the Member for Amber Valley (Nigel Mills), however. We do not want to have a counterproductive impact by advising people that money will be coming out of their wages each month and having them decide, “Actually, I’ll take the money instead.” In the earlier stages—the first couple of years—the entitlement they have built up will not look particularly impressive, but if it were continued, it would become a worthwhile pot. We do not want a counterproductive outcome overall, but it is certainly something that can be worked on, and we have seen the progress that has been made so far.

Although the Select Committee report was welcome overall, I have some concerns about the suggestion that national insurance payments could become a quasi-auto-enrolment position for the self-employed. There is a real difference between a person saving specifically for their own retirement, to fulfil the dreams or plans they have, and paying tax to fund public services and benefits, as they are required to do under the law. I appreciate that the state pension is linked to making national insurance contributions, but that has always been on the basis of years, rather than “You will build up x amount of contributions, and that will produce y pension.” It is not a pot that people have and that they can access. I can see the idea that when people pay NI they are arguably making contributions towards a state pension, but that is slightly different from them building up their own pension pot, which would be theirs in name as well.

[Nigel Mills]

To clarify, the idea was that because the self-employed pay a lower national insurance rate than those who are employed, we could effectively say to people, “Either you can put that into your own pension pot and top it up, or you can pay national insurance at the same level as somebody who is employed and not get any benefit from it.” It was a way of trying to replicate the auto-enrolment position, where a person puts in money themselves and gets money from somebody else and the taxpayer. It was the only real solution we could find in terms of people getting more bang for their buck.

--- Later in debate ---

[Kevin Foster]

I can certainly see where the logic came from—that someone who was self-employed would be paying similar levels of national insurance as someone who was employed. For me, though, it is a mix: when a person makes NI payments, that is based on years, and it is a fairly simple calculation, as opposed to a specific amount going into a pot that is then theirs. For me, the proposal raises that particular concern but, again, I appreciate my hon. Friend’s point: we all have the goal of ensuring that the self-employed, and predominantly the self-employed who are on lower earnings, have a reasonable pot for their retirement.

It is welcome to see the Minister in her place, and it would be interesting to hear her thoughts on a couple of points when she sums up. First, what work is being done to analyse the roles in the economy where there is most likely to be under-saving and to reach out to those people? As I have touched on, the self-employed are a very wide group: some will be all too aware of their options for retirement, but others may be on low incomes and struggling, or just facing the day-to-day pressures of running a business. They do not necessarily want to spend lots of time looking up pension rules and positions, as a large company might do. Secondly, therefore, what opportunities have been explored for working with sector groups at a more local level—such as chambers of commerce, business groups or the destination management groups that are common in the tourism industry—to see how they could be used to reach out to some of those who are unlikely to want to spend a lot of time reading through guidance on how to set up a pension?

Finally, what support would be offered for sectors to look at developing their own bespoke pension funds for self-employed workers and those in the gig economy? It was touching to hear from the right hon. Member for East Ham about things such as what Uber is doing for taxi drivers. Sometimes competitors will not necessarily rush to sign up to something that is run by another company, but what is being looked at that would give firms and organisations in particular sectors that want to do the right thing the opportunity to do so?

Many who will holiday in Torbay this summer will dream about one day retiring there, and we will sometimes see a retired couple who have been married many years sitting on the Babbacombe downs next to a young couple having their first break together, who will be part of a similar scene in decades to come. Helping people fulfil their dreams is the core of this debate, and that is what must drive us in ensuring that saving for later life becomes part of everyone’s working life.

Oral Answers to Questions

Kevin Foster Excerpts

Monday 23rd January 2023 Commons Chamber

[Kevin Foster (Torbay) (Con)]

I know that the Minister for Disabled People shares my enthusiasm for the Disability Confident campaign and ensuring that more employers sign up to it. What discussions is he having with the Migration Advisory Committee to ensure that, when considering representations from sectors about, for example, the shortage occupation list, being a Disability Confident employer is part of what is considered?

[Tom Pursglove]

It is fair to say that my hon. Friend and I have experience of such matters from previous roles. I know that there is no bigger advocate of Disability Confident in Torbay than him. Of course, we want to continue to build on the brilliant work that has happened through that scheme and its success in getting disabled people into work, which I think should be an overarching mission for the whole of Government.

State Pension Triple Lock

Kevin Foster Excerpts

Tuesday 8th November 2022 Commons Chamber

[Kevin Foster (Torbay) (Con)]

This is my first Opposition day speech in a while and I welcome the opportunity to speak on an issue that is so important for Torbay. It will perhaps be unlike some of my previous speeches in that, first, I am not following the hon. Member for Strangford (Jim Shannon), and secondly—I see the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Mid Sussex (Mims Davies), on the Front Bench—this will not be quite as thorough an analysis of the issue as some have occasionally enjoyed from me on a Friday. It is a particular pleasure to see the Secretary of State on the Front Bench; I know that he will be a doughty champion for our beautiful county and its people, and that he will ensure that the most vulnerable are protected.

Turning to the motion, it is fascinating to see the huge enthusiasm from Labour Members for our 2019 manifesto. I cannot remember the same enthusiasm three years ago, when they were not that enthusiastic to have a general election in the first place. This measure was a key part of the pledges that we made. We have heard some knockabout today, but we have to remind ourselves that the pension triple lock was introduced in 2010 and not before. For the 13 years prior to that, pensions had been linked to the rise in inflation and in prices, rather than the position adopted under the triple lock.

We know why we introduced the triple lock. As has been referred to, the inspiration came from the 75p increase some years earlier. It aimed to give a clear sense of the direction in which state pensions would go. It would either be in line with prices, as was done previously, or earnings—by reinstating a link to those—or it would be a minimum of 2.5%, providing clarity for those looking ahead to their retirement. As that was done in a simple way, it meant that pensions would be protected against price shocks and that they would keep pace with earnings as they went up. Since 2010, the level of the basic state pension has gone up by £2,300.

The measure also has to be seen in the light of other changes, such as the end of opting out and the introduction of the new state pension, which is clearer about what people will get when they retire. As has been touched on, it allows more years in which, for example, someone is bringing up children to count towards the state pension. The changes were about making what people have clearer and simpler so that they can plan in their retirement.

That was very welcome in Torbay. Those commitments were probably a reason why a seat that was held by another party for 18 years is solidly Conservative again. Most pensioners and those who vote in Torbay are realistic people. They recognise the impact of the pandemic last year and the odd outcomes it produced for earnings—for example, in the previous year when earnings went down, and last year when earnings jumped up. The double lock was therefore introduced for one year last year, using the CPI rate for the increase in the state pension.

Some people say, “If inflation was good enough to be the rate of increase last year, it should be good enough this year, not least given the impacts we are seeing on prices.” I accept that there is a need for balance and the Secretary of State’s point that he cannot pre-empt what will be said next week. We cannot have a running commentary in the run-up to a fiscal event, with a different Department every day ruling something in or out, or putting something in or out. I take his point, but those of us who are not on the Front Bench can make our comments more freely about the outcome that we would like next week.

On the position in Torbay, the Secretary of State was right to highlight other benefits and support that is being offered to pensioners. The second cost of living payments are starting today, not just for pensioners; I think 16,300 families in Torbay will start to get that payment, taking the total up to £650. Members have rightly touched on the energy price guarantee, which helps to cap the price being paid for energy. On top of that, there were such things as the council tax rebate earlier this year. Councils have discretionary funding to apply that to those in band E and above when they have particular pressures. Therefore, when we discuss the triple lock and the state pension, we have to consider some of the other support. Of course, I have not mentioned the £400 per household energy bill discount from which pensioners will innately benefit.

It is interesting to hear people making comparisons with other countries and talking about wanting to emulate some of them. I would be interested to hear whether SNP Members would like to emulate the situation in many European countries whereby, although the position on the pension might be different, pensioners have to pay certain medical charges and there are social care levies applied to pension income and taxes that would not be paid here. Certainly, many services that are provided free at the point of use and point of need under the NHS are charged for in other jurisdictions. If we make comparisons and say we want to emulate other countries, we need to be conscious of what we are arguing we should emulate. We can do more to help people to get pension credit.

[Alan Brown]

I used a whole suite of comparators to make my point, and the key thing is that the UK has the 12th highest poverty rate out of 35 countries. That is shameful, is it not?

[Kevin Foster]

The hon. Gentleman made the point in his speech that he was looking to emulate the packages given to pensioners in other countries. If he wants to emulate them, he should look at what those packages include, such as charges for medical services and tax rates that we do not charge here. The council tax rebate of £150 did a lot for my constituents. As for whether that applies in Scotland, that is a devolved matter.

On the triple lock, the rise in prices has hit many people. Many people over the state retirement age are unlikely to have the type of options that others may have to meet some of the rising costs. It is therefore vital that we look to honour our pledge to them. I accept that that pledge cannot be made immediately today, but I look forward to hearing further clarity on that next week.

About £4.7 million of pension credit went unclaimed in Torbay last year. That could have gone to some of the poorest households in the bay. When the Minister sums up, I would be interested to hear about the Government’s thoughts on that issue, particularly when so much data is available. The era of people filling in paper forms or going to a post office with a pension book is long gone. The vast majority of that is done through electronic means. This is about what could be done to fill the gap so that more people can get the support to which they are entitled, not least because once someone is assessed as being eligible for pension credit, it opens the door to a range of other benefits and support.

[Anne McLaughlin]

Is the hon. Gentleman aware of the work done by Loughborough University that was commissioned by Independent Age? It stated that if everybody who was entitled to pension credit claimed it, that would cost an extra £2 billion. I understand that that is a lot of money, but it also stated that the extra cost to the NHS and social care now is £4 billion, so if we could find a way of making sure that everybody got it, we would put more money into the Treasury’s coffers.

[Kevin Foster]

I do not recognise the statistics from that report, but I welcome the overall thrust of that argument. When we as a Parliament have decided that we want people on a low income to receive a particular type of support, we want them to be able to get that.

I was interested to hear the suggestion that the hon. Member for Glasgow East (David Linden) made about working with banks. An institution that might be slightly easier to work with is post offices, where many people on lower incomes go to collect their pension and do other banking. The Secretary of State, who represents the rural constituency of Central Devon, will be aware of people going to post offices to withdraw the exact cash amounts that they need. Cashpoints mostly operate with multiples of £10 or £20, which may be difficult for someone who has to budget tightly for their bills and spending, whereas at a post office counter they can withdraw amounts literally to the penny. That allows very precise budgeting for those who need it.

This is a welcome debate. I must say that I am interested to hear Opposition Members’ comments on who they expect to oppose the motion. We may hear one of those suspicious shouts of “No!” that are not followed by anyone showing up to vote in the No Lobby.

Pensioners in Torbay put their faith in this Government back in 2019. I believe that they put their faith in a manifesto that offered them a positive choice, and I continue to believe that that is the right basis for us to move forward. I hope to hear next week that we will honour that commitment to them.

[Several hon. Members rose—]

Supporting Disabled People to Work

Kevin Foster Excerpts

Thursday 28th March 2019 Commons Chamber

[Justin Tomlinson]

I thank the hon. Gentleman. That is a really good question. Through the principles of the personalised support package, we have to find ways to support those local initiatives. There is not a one size fits all and a lot of that support will match the local market. That is a very important point and I will make sure that he has a meeting with the appropriate Minister.

[Kevin Foster (Torbay) (Con)]

At a Disability Confident event I hosted some time ago, we saw some great examples of very talented people being employed by local employers. What work is the Department doing to ensure those employers are recognised not just for the fact that they have done something good but because they have taken on some brilliant people?

[Justin Tomlinson]

I thank my hon. Friend, who has worked tirelessly in the area, and that is exactly why the Secretary of State has been so passionate about saying that our target has to be ambitious. We owe it to every single one of those individuals looking for work, whether full-time work or the occasional bit of work. It makes a huge difference and we are incredibly proud that the number of disabled people in work has risen by 930,000 in the last five years—a record high.

Households Below Average Income Statistics

Kevin Foster Excerpts

Thursday 28th March 2019 Commons Chamber

[Amber Rudd]

Since entering government in 2010, we have removed 400,000 people from absolute poverty. I have acknowledged—this is why I am here today—that today’s statistics are disappointing. I am highlighting that there is more to be done both in terms of other services around benefits and in terms of my engagement with the Chancellor. The hon. Lady raises the important point that it is often people with the largest families who have difficulties, and I will be looking at that area ahead of the spending review. However, we will not be changing the two-child policy, which is still an important part of having fairness in the benefits system for the people who pay the tax as well.

[Kevin Foster (Torbay) (Con)]

One of the regular challenges that those in poverty face is in finding suitable accommodation, as the Secretary of State referred to in her statement. What work is she doing in talking to the Ministry of Housing, Communities and Local Government to ensure that we deliver the quality homes that people need, at an affordable price, across the country?

[Amber Rudd]

That is such a good point from my hon. Friend. He is right that we need to constantly address poor-quality accommodation, as well as making sure that that accommodation is affordable. I am engaged in conversations with my right hon. Friend the Secretary of State for Housing, Communities and Local Government to ensure that we address this together.

Social Security and Employment Support for Disabled People

Kevin Foster Excerpts

Wednesday 6th March 2019 Commons Chamber

[Sarah Newton]

I can reassure the hon. Gentleman that that work is all under way. There have been several independent reviews of PIP and ESA, including one by the Select Committee on Work and Pensions, which made the recommendations that we are working through now, to ensure that the assessments are as accurate as they can be. We are not waiting. The huge benefit of the transformed service is that the DWP will own the whole claimant journey—we are building a whole digital platform—and we will be able to use the medical and other information far more easily to make the right decision the first time. As I said at the beginning, the whole new process will be co-designed with disabled people.

[Kevin Foster (Torbay) (Con)]

I welcome the announcements to bring in a better service for those seeking to make claims, in particular on the combination of assessments. An issue that is regularly picked up is a more independent record of some of the assessments. What further consideration have the Government given to things such as video recording of assessments, which might not only give confidence to the person taking part, but allow for quality-control reviews and an easier process in tribunal?

[Sarah Newton]

I thank my hon. Friend for raising video recording, because our hope is that that will bring a lot of transparency, trust and confidence to the assessments. We are reviewing the findings of a successful pilot. We remain committed to rolling out video recording.

Employment and Support Allowance: Underpayments

Kevin Foster Excerpts

Monday 25th February 2019 Commons Chamber

[Sarah Newton]

I thank the hon. Gentleman for his active engagement with me in coming into the Department so that we could absolutely get this right. It is very important, for people who have not only acquired brain injury but a whole series of conditions that are variable, that the way we do the assessments truly understands their needs. We are utterly committed to making continuous improvement not only to the work capability assessment but to the PIP assessment processes.

[Kevin Foster (Torbay) (Con)]

I welcome the overall tone of the Minister’s statement and her replies to questions so far. Will she confirm what work the Department will be doing with advice charities locally to ensure that people are aware of this process and when they can expect to be repaid the moneys they should have been due?

[Sarah Newton]

For the first phase of people we have contacted, we have nearly completed the exercise. Most of those people will have been contacted and we will have paid them their arrears by the end of April. As we start on the next phase, we will be contacting people by letter. We have really good stakeholder engagement with a range of disabled people’s organisations and charities to make sure that people know this is happening and, when they do receive the letters and communications, that they understand what we are trying to do, which is to make sure that they get all the benefits to which they are entitled.

Oral Answers to Questions

Kevin Foster Excerpts

Monday 11th February 2019 Commons Chamber

[Guy Opperman]

I know that the hon. Lady has met my hon. Friend the Minister for Employment on the issue of her constituent and that the Department awaits more details to investigate it in more detail. The wider point is that the Minister for Employment is looking into this issue with Her Majesty’s Treasury and will, I am sure, update her.

[Kevin Foster (Torbay) (Con)]

I welcome the reduction in the maximum deduction rate, but what analysis has the Minister done of what that may mean for the poorest households and how will he communicate the impact of the change?

[Guy Opperman]

We believe that it is a positive step in the light of the review that took place. I draw my hon. Friend’s attention to the Breathing Space scheme that is being introduced by Her Majesty’s Treasury to assist people on an ongoing basis. That scheme came in in the legislation that we introduced last year.

Universal Credit: Managed Migration

Kevin Foster Excerpts

Tuesday 8th January 2019 Commons Chamber

[Alok Sharma]

As I have said, we want to get this right for everyone, and where there are individual cases, of course we will take them up, but the hon. Gentleman seems to imply that, under the legacy benefits system, the world was entirely rosy. He and I know, as Members of Parliament, that the legacy benefits system is inferior to universal credit.

[Kevin Foster (Torbay) (Con)]

I welcome the tone of the response from the Minister so far—it is always good to see him at the Dispatch Box—but could he confirm how the Department will go about selecting the 10,000 to take part in the pilot, how it will monitor it and how it will report back on its evaluation?

[Alok Sharma]

My hon. Friend raises an important point. During the test period, we will be testing a number of approaches to moving claimants on to universal credit safely and in the most effective way. This will include testing a non-mandatory approach, where claimants will be invited to go through the process. We will be testing claimants on all benefits and in a range of circumstances to make sure that we move all claimants on to universal credit safely.