Lady Hermon
Main Page: Lady Hermon (Independent - North Down)Department Debates - View all Lady Hermon's debates with the Department for Work and Pensions
(10 years, 10 months ago)
Commons ChamberThe charity in my hon. Friend’s constituency, Winston’s Wish, was referred to earlier by the hon. Member for Gloucester (Richard Graham), and we take its concerns seriously. I stress that what we have put in place is a structure of reform that will involve us actually spending slightly more over the coming years on support for bereaved families, but there is a debate to be had about how long the support should last. For various reasons, going beyond a year raises difficult issues. For example, a short-term benefit can be disregarded for universal credit, whereas a long-term income replacement benefit almost certainly would not be. By delivering the money in this way, therefore, the lump sum is tax free and the short-term payment is not counted against people’s universal credit, whereas a long-term payment would be, meaning that bereaved families might end up getting less support were we to extend the period. So there are trade-offs and reasons why these balances have been struck.
The Minister will know that as the Bill is drafted, and moving towards its final phase in the House, the bereavement support payment does not apply to Northern Ireland. Will he clarify whether, were it to be introduced by the Northern Ireland Assembly, it would be paid for centrally?
I would be happy to provide the hon. Lady with the clarification she seeks, either while I am still at the Dispatch Box or subsequently, if that would be helpful.
Part 4 of the Bill, which occupied the majority of our time in the House, deals with automatic enrolment and one of the many issues not addressed until this coalition Government came to power—the issue of small stranded pension pots. We anticipate that there could be tens of millions of small stranded pension pots, which is not something any of us want. I think that the prospect of the pot-follows-member system, under which people change jobs and the small pension pots go with them and build into what I have called a big, fat pot, is a better model. It will engage people with pension saving and result in people knowing where their pensions are and getting better value for annuities. That will be of great value.
It would be fair to say that a Bill such as this does not just happen, but depends on the work of an army of officials with expertise in both state and private pensions, on parliamentary counsel and on the many stakeholders who have given us advice and encouragement and enabled us to refine the Bill. I put on the record my appreciation to all of them.