Oral Answers to Questions

Debate between Lindsay Hoyle and Liz Kendall
Monday 3rd February 2025

(1 day, 9 hours ago)

Commons Chamber
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Liz Kendall Portrait Liz Kendall
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I would love to visit. That is an important programme focused on keeping people in work and getting those who have recently left back into work as soon as possible. In my hon. Friend’s area, WorkWell provides advice on workplace adjustments, access to physiotherapy, and employment advice and counselling, and is working closely with the voluntary sector and employers, backed by £2 million-worth of funding. That is critical because, with more than 15,000 economically inactive people in his constituency, we must start turning that situation around.

Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Secretary of State.

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Liz Kendall Portrait Liz Kendall
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I absolutely will. As my hon. Friend knows, the Government have launched the “Keep Britain Working” review led by Charlie Mayfield, the former chair of John Lewis Partnership. He is doing precisely that—looking at how we can better support employers to help keep people in work and get them back to work. Mental health is a real concern for me, with so many young people not in education, employment or training, primarily driven by mental health problems. This is an issue we have got to sort, because it is terrible for them and for their future, and terrible for the economy too.

Lindsay Hoyle Portrait Mr Speaker
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I call Alison Bennett.

Women’s State Pension Age Communication: PHSO Report

Debate between Lindsay Hoyle and Liz Kendall
Tuesday 17th December 2024

(1 month, 2 weeks ago)

Commons Chamber
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Liz Kendall Portrait The Secretary of State for Work and Pensions (Liz Kendall)
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With permission, Mr Speaker, I would like to make a statement on the investigation by the Parliamentary and Health Service Ombudsman into the way that changes in the state pension age were communicated to women born in the 1950s.

The state pension is the foundation for a secure retirement. That is why this Government are committed to the pensions triple lock, which will increase the new state pension by more than £470 a year from this April and deliver an additional £31 billion of spending over the course of this Parliament, and it is why Governments of all colours have a responsibility to ensure that changes to the state pension age are properly communicated so that people can plan for their retirement.

Before I turn to the Government’s response to the ombudsman’s report, I want to be clear about what this report investigated, and what it did not. The report is not an investigation into the actual decision to increase the state pension age for women in 1995 or to accelerate that increase in 2011—a decision that the then Conservative Chancellor George Osborne said

“probably saved more money than anything else we’ve done”.

That comment understandably angered many women and sparked the original Women Against State Pension Inequality Campaign. The ombudsman is clear that policy decisions to increase the state pension age in 1995 and since were taken by Parliament and considered lawful by the courts. This investigation was about how changes in the state pension age were communicated by the Department for Work and Pensions, and the impact this may have had on the ability of women born in the 1950s to plan for their retirement.

I know that this is an issue of huge concern to many women that has spanned multiple Parliaments. Like so many other problems that we have inherited from the Conservatives, this is something that the previous Government should have dealt with. Instead, they kicked the can down the road and left us to pick up the pieces, but today we deal with it head-on. The Pensions Minister—the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Wycombe (Emma Reynolds)—and I have given the ombudsman’s report serious consideration and looked in detail at the findings, and at information and advice provided by the Department that was not available to us before coming into Government.

The then ombudsman looked at six cases. He found that the Department provided adequate and accurate information on changes to the state pension age between 1995 and 2004, including through leaflets and pensions education campaigns and on its website. However, decisions made between 2005 and 2007 led to a 28-month delay in sending out letters to women born in the 1950s. The ombudsman says that these delays did not result in the women suffering direct financial loss but that they were maladministration.

We accept that the 28-month delay in sending out letters was maladministration, and on behalf of the Government, I apologise. This Government are determined to learn all the lessons from what went wrong, and I will say more about that in a moment. We also agree that the women suffered no direct financial loss because of the maladministration. However, we do not agree with the ombudsman’s approach to injustice or remedy, and I want to spell out why.

First, the report does not properly take into account research showing that there was actually considerable awareness that the state pension age was increasing. It references research from 2004 showing that 43% of women aged over 16 were aware of their state pension age, but it does not sufficiently recognise evidence from the same research that 73% of women aged 45 to 54—the very group that covers women born in the 1950s—were aware that the state pension age was increasing, or research from 2006 showing that 90% of women aged 45 to 54 were aware that the state pension age was increasing.

Secondly, the report says that if letters had been sent out earlier, it would have affected what women knew about the state pension age. However, we do not agree that sending letters earlier would have had the impact that the ombudsman says. Research given to the ombudsman shows that only around a quarter of people who are sent unsolicited letters actually remember receiving them or reading them, so we cannot accept that, in the great majority of cases, sending a letter earlier would have affected whether women knew that their state pension age was rising or increased their opportunity to make informed decisions.

These two facts—that most women knew the state pension age was increasing and that letters are not as significant as the ombudsman says—as well as other reasons, have informed our conclusion that there should be no scheme of financial compensation to 1950s-born women in response to the ombudsman’s report.

The ombudsman says that, as a matter of principle, redress and compensation should normally reflect individual impact. However, the report itself acknowledges that assessing the individual circumstances of 3.5 million women born in the 1950s would have a significant cost and administrative burden. It has taken the ombudsman nearly six years to investigate the circumstances of six sample complaints. For the DWP to set up a scheme and invite 3.5 million women to set out their detailed personal circumstances would take thousands of staff years to process.

Even if there were a scheme in which women could self-certify that they were not aware of changes to their state pension age and that they had suffered as a result, it would be impossible to verify the information provided. The alternative put forward in the report is a flat-rate compensation scheme at level 4 of the ombudsman’s scale of injustice. This would provide £1,000 to £2,950 per person, at a total cost of between £3.5 billion and £10.5 billion.

Given that the vast majority of women knew the state pension age was increasing, the Government do not believe that paying a flat rate to all women, at a cost of up to £10.5 billion, would be a fair or proportionate use of taxpayers’ money, not least when the previous Government failed to set aside a single penny for any compensation scheme and left us a £22 billion black hole in the public finances.

This has been an extremely difficult decision to take, but we believe it is the right course of action, and we are determined to learn all the lessons to ensure that this type of maladministration never happens again. First, we want to work with the ombudsman to develop a detailed action plan out of the report, so that every and all lessons are learned. Secondly, we are committed to setting clear and sufficient notice of any changes in the state pension age, so that people can properly plan for their retirement. Thirdly, I have tasked officials to develop a strategy for effective, timely and modern communication on the state pension that uses the most up-to-date methods, building on changes that have already been made, such as the online “check your state pension” service that gives a personal forecast of a person’s state pension, including when they can take it, because one size rarely fits all.

As I said, we have not taken this decision lightly, but we believe it is the right decision because the great majority of women knew the state pension age was increasing, because sending letters earlier would not have made a difference for most, and because the proposed compensation scheme is not fair or value for taxpayers’ money.

I know there are women born in the 1950s who want and deserve a better life. They have worked hard in paid jobs and in bringing up their families. Many are struggling financially with the cost of living and fewer savings to fall back on. They worry about their health and how their children and grandchildren will get on.

To those women I say: this Government will protect the pensions triple lock, so your state pension will increase by up to £1,900 a year by the end of this Parliament; we will drive down waiting lists, so you get the treatment you need, with an extra £22 billion of funding for the NHS this year and next; and we will deliver the jobs, homes and opportunities your families need to build a better life. I know that many 1950s-born women will be disappointed about this specific decision, but we believe it is the right decision and the fair decision. I commend this statement to the House.

Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Secretary of State.

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Liz Kendall Portrait Liz Kendall
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I can assure my hon. Friend’s constituents in Clwyd North that we want to learn all the lessons from the maladministration that we accept took place. We have to get people timely, effective and personal communication, and not just about their state pension age but about all aspects of pensions, so that they can properly plan for their retirement. The Pensions Minister and I will go through that with a fine-toothed comb to do everything possible to make sure it does not happen again.

Lindsay Hoyle Portrait Mr Speaker
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I call the Liberal Democrat spokesperson.

Oral Answers to Questions

Debate between Lindsay Hoyle and Liz Kendall
Monday 16th December 2024

(1 month, 2 weeks ago)

Commons Chamber
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Liz Kendall Portrait Liz Kendall
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If you can work, you must work, and if you repeatedly refuse to, sanctions will remain, but I know from young people in my constituency that they are desperate to get the skills and opportunities that they need. Unlike the Conservative party, that is what our youth guarantee will deliver.

Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Minister.

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Liz Kendall Portrait Liz Kendall
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The hon. Member is laughing at his own chutzpah. I am happy to talk about the past 14 years, but the work capability assessment is not working. It needs to be reformed or replaced. That is what we said in our manifesto, and we will bring forward our proposals in a Green Paper in the spring. That has to be part of a bigger programme to help people with long-term health conditions and disabilities into work. That is what our “Get Britain Working” White Paper does, and I am happy to discuss it with him more in future.

Lindsay Hoyle Portrait Mr Speaker
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I call the Liberal Democrat spokesperson.

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Lindsay Hoyle Portrait Mr Speaker
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Order. I am not sure that was a relevant question, as well as the hon. Member shoehorned it in. Secretary of State, do you want to answer? It is up to you.

Liz Kendall Portrait Liz Kendall
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I believe that sport, as well as art and culture, can play a huge role in engaging and inspiring people, helping them on the pathway to skills, confidence and jobs. I want to see that provision enhanced in future, because we are determined to have that at the national partnership level, and it needs to happen locally, too, to get people working and earning again.

Oral Answers to Questions

Debate between Lindsay Hoyle and Liz Kendall
Monday 11th November 2024

(2 months, 3 weeks ago)

Commons Chamber
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Liz Kendall Portrait Liz Kendall
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Just last week I visited a very large employer in my constituency, Tesco, and saw the fantastic work that it is doing with the King’s Trust to ensure that more people get into work and stay in work. It is determined to work with us and our local schools, and employment and other providers, because they know that rather than writing off nearly a million young people, which led to the situation that we inherited, this new Government have a plan to get people into work, enable them to get on in work, and ensure that every young person has the chance in life that he or she deserves.

Lindsay Hoyle Portrait Mr Speaker
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I call the new shadow Secretary of State, and welcome her to her post.

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Lindsay Hoyle Portrait Mr Speaker
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Order. I did make the suggestion that you might come to the end of your question, but you decided to carry on reading, so I will have to stop you. I call the Secretary of State.

Liz Kendall Portrait Liz Kendall
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I am very proud of a Budget that invests in the long-term growth that this country needs, that gives a pay rise to the 3 million lowest-paid workers, and that invests in the NHS so that people can get back to health and back to work. That is the change that this country desperately needs.

Oral Answers to Questions

Debate between Lindsay Hoyle and Liz Kendall
Monday 7th October 2024

(3 months, 4 weeks ago)

Commons Chamber
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Liz Kendall Portrait Liz Kendall
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I know that the hon. Gentleman has focused over many years on health and healthcare issues, and I would say to him that we are in this situation because his Government left a £22 billion black hole in the public finances. Unlike Conservative Members, we take our responsibilities seriously, and I would urge him to work with his councils—they have received £7.1 million in Hampshire and £5.3 million in Surrey from the household support fund—to make sure that all pensioners get the money they are entitled to.

Lindsay Hoyle Portrait Mr Speaker
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I call the Chair of the Work and Pensions Committee.

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Liz Kendall Portrait Liz Kendall
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I would urge all hon. Members in this House to work with their local councils, as I am doing, to make sure that those on housing benefit and other pensioners know what they are entitled to, and to make sure that their councils know that the household support fund—the £421 million we have set aside this year, despite all the problems we face—is also available to those pensioners just above the pension credit level.

Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Secretary of State.

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Liz Kendall Portrait Liz Kendall
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There are 200,000 more pensioners in poverty, and I am happy to put those figures into the public domain to set the record straight. The savings we have put forward take into account the increase in uptake that we foresee. Unlike Conservative Members, we are determined and will do everything possible—they should perhaps ask themselves why they first announced the merger of pension credit and housing benefit in 2012 and then put it off until 2028—to change things and get people the money they are entitled to. We will bring that forward to ensure that all the poorest pensioners get what they are entitled to.

Lindsay Hoyle Portrait Mr Speaker
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I call Liberal Democrat spokesperson Steve Darling.

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Liz Kendall Portrait Liz Kendall
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I thank my hon. Friend for his question. I met representatives of the WASPI campaign before this Government were elected. My hon. Friend the Minister for Pensions was the first Minister to meet them in eight years. It really is a serious report that requires serious consideration. We will do everything possible to get this issue resolved as soon as possible.

Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Secretary of State.

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Lindsay Hoyle Portrait Mr Speaker
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Order. These are topical questions, so please can we keep them short? I have to try and get through the list to help others.

Liz Kendall Portrait Liz Kendall
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My hon. Friend has raised these issues with me before, and I will absolutely meet children, families and child poverty organisations from her constituency. We aim to visit every region and every devolved nation as part of that strategy, and I look forward to meeting her and her constituents then.