Oral Answers to Questions Debate
Full Debate: Read Full DebateLaura Trott
Main Page: Laura Trott (Conservative - Sevenoaks)Department Debates - View all Laura Trott's debates with the Department for Work and Pensions
(11 months, 3 weeks ago)
Commons ChamberIn April, the state pension saw its largest ever rise of 10.1%, thanks to the triple lock protecting pensioners.
We know that 770,000 pensioners are eligible for pension credit but are not receiving it. A few months ago, I joined my local citizens advice bureau to organise a pension credit action day. As a result, an additional £200,000 was drawn down to people across Merthyr Tydfil and Rhymney. The Government have the data and could take a much more targeted approach to get eligible people to apply, so why have they not taken that action? When will we see more action from the Government?
I thank the hon. Gentleman for the work he is doing in his constituency. I assure him that that is exactly what the Government are doing. We recently launched an “invitation to claim” trial, which has been rolled out in 10 constituencies and is using housing benefit data to target those who might also be eligible for pension credit. We will report back on the results of that trial later this year.
It might be hard to imagine on a sunny day like today, but winter is just around the corner. The reality for many worried pensioners in my constituency is that this winter there will be a choice between heating and eating. We have a Government who are tiptoeing around the real issues while our constituents struggle to make ends meet. When will the Government make a real plan to tackle the cost of living crisis and implement meaningful action to help thousands of pensioners in poverty?
With respect to the hon. Lady, that is exactly what we are doing. That is why we have put the cost of living payments in place, which are worth £900 to all those on pension credit, and why a cost of living pensioner payment worth £300 is coming out in the winter. All the while the Labour Mayor of London is charging pensioners £12.50 when they want to drive to the hospital.
Clearly, there is a stigma attached to claiming pension credit, because this is on poorer pensioners who desperately need the money. What action can my hon. Friend take to remove that stigma? My constituency has recently been added to the pilot, and I am looking forward to its results, because elderly people deserve to get the money they need to fulfil their lives.
My hon. Friend is absolutely right on that, and I praise all the work he has done in his constituency on pension credit. We are trying to do exactly what he sets out: encourage as many people as possible to claim this important benefit, at a time when they are going to need it most. I note that across the House good work has been done in individual constituencies.
As inflation rises, being able to top up pension contributions is vital for many part-time workers, who would otherwise not be able to claim the full state pension. However, a Daily Mail investigation showed that the Government are failing to accurately record people’s top-up contributions. Pensioners are terrified that their money has simply disappeared, so when will the Government get a grip of this terrible problem? When will Ministers show that they understand the pressure on families and pensioners due to the cost of living crisis?
With the comprehensive package of support I have talked about today, we have shown that we are taking action during the cost of living crisis to help pensioners as much as we can. We know that accuracy is the most important thing when it comes to the state pension, which is why we have taken action very quickly to correct issues where they have occurred, for example, with LEAP—the legal entitlement and administrative practices exercise. We will do the same in all such cases.
The DWP has conducted an extensive campaign across TV, radio and social media, and with partner organisations, to boost pension credit take-up, with a number of pushes being made before cost of living payment deadlines. I am pleased to tell the House that that is working; applications were up by 75% in the year to May.
One of my Chelmsford constituents sent me a message that has been circulating recently. It suggests that asylum seekers are entitled to receive more in benefits than pensioners; I believe that is not accurate. For the record, will the Minister confirm what support is available for pensioners, compared with that for asylum seekers?
Let me reassure my right hon. Friend and her constituents that asylum seekers are given no recourse to public funds. They are given payment for their food and shelter, but they are unable to claim benefits. Pensioners in her constituency will receive a state pension, if they qualify, which for the first time is worth on average more than £200 per week or over £10,000 a year. Pensioners who have not built up sufficient contributions may be eligible for pension credits, worth on average £3,500 per year, to top up their income. They are also eligible to receive the cost of living payment, if they ever receive pension credit, and the pensioner cost of living payment.
Over the summer, I held events in villages across Wyre in my constituency. I was approached by many pensioners who are suffering because of the cost of living crisis; pension credit is just not plugging the gap. At my “Chat with Cat” event in Pilling, a constituent asked me why 400,000 more pensioners are living in poverty than when Labour left office. Will the Minister answer that question?
There are 200,000 fewer pensioners in absolute poverty than when Labour left office.
In April, we announced plans to address this issue by introducing a retrospective national insurance credit, which will ensure that more people—especially women—have the opportunity to obtain a full state pension.
The high income child benefit charge is potentially a scandal waiting to happen. Currently, families have to apply for a benefit they know they are not entitled to so that the stay-at-home parent—usually the mother—gets the national insurance credits that they need for her state pension. It is good to hear that the Government are doing something, but they need to reform the process further. Will they agree to at least put some comms in? I certainly had not heard of the changes in April.
I am glad that the hon. Lady agrees with those changes. I assure her that we will be bringing them forward as soon as we can.
The hon. Lady asked about this last time, and I believe I informed her previously that all alive people will be receiving the benefits they are entitled to by the end of this year.
I warmly welcome the considerable progress this Conservative Government have made in supporting pensioners. The triple lock and targeted support with the cost of living are welcome in my part of Devon. Will my hon. Friend outline how this Conservative Government will ensure that this great progress continues?
The triple lock was a Conservative invention. It was a pledge in our manifesto and the Secretary of State will be looking at it again this year when he makes his decision on benefits.
A constituent of mine has a small work pension, rendering her ineligible for pension credit yet still struggling to get by. Another constituent who is 80 and misses out on pension credit by just £10 has contacted me several times angry and hurt that he now has to pay for his TV licence. Will Ministers review the rules on pension credit, because ineligibility for so many of the passported benefits leaves many of my constituents out of pocket? They want to be eligible for it but are not.
Obviously this is without looking at the individual case, but it is important to note that the threshold has gone up significantly, so it is worth questioning whether the hon. Lady’s constituents are now eligible. If not, applications to the household support fund can be helpful, and local councils may be able to offer housing benefit support. If there is an individual case that she would like to write to me about, I am happy to respond.
That completes the questions. Those who wish to leave should do so.