Bedroom Tax (Scotland)

Lindsay Roy Excerpts

Thursday 8th May 2014 Westminster Hall

[Mr Davidson]

That is absolutely correct. I notice that there are numerous other Members here who will undoubtedly want to speak. I did not intend to spend most of my time on the iniquities of the bedroom tax, because that is common ground for the vast majority of us here; I wanted to discuss what is to be done and what should be done. For those reasons, I will turn to the campaigns that have been run and that have sent witnesses to us, which have exerted enormous pressure on public representatives to do something about this.

I regret that from a very early stage, the Scottish Government refused to use the full range of powers available to them to mitigate the effects of the bedroom tax. The Under-Secretary of State for Scotland, who is the appropriate Scotland Office Minister, said that the Scottish Government had powers beyond DHPs; the Chief Secretary to the Treasury said exactly the same thing. We understand from both Ministers that the Scottish Government never made the least effort to contact them to find out what, in their view, might be legally available alternative methods of mitigating the bedroom tax.

[Lindsay Roy (Glenrothes) (Lab)]

I congratulate my hon. Friend on securing this debate. Can he offer an explanation why?

[Mr Davidson]

There is an explanation; it was given to us by John Swinney himself, no less, when he said that he did not want to let Westminster off the hook. Of course, it was not actually Westminster that was hanging on the hook; it was people in Scotland who were finding themselves in tremendous financial difficulty as a result of the introduction of the bedroom tax.

There has been progress. We have to recognise that the Scottish Government were forced by Labour and other parties in the Scottish Parliament, as well as by outside campaigns, to make available in their budget the full amount of money necessary to mitigate the effect of the bedroom tax. They said that they could not spend it because they could address difficulties only through the DHP mechanism, but I believe, and I note that Ministers and campaigning groups also believe, that that is not true.

The Scottish Government said that the only way they could address the bedroom tax is by DHPs, and I think we have to accept that that is not true, but they chose to rest their case on that position. Why? I think it is because they want a clash between the UK Government and the Scottish Government over the question of powers, and they are quite prepared to see some of the people of Scotland become casualties of that conflict in the hope that they will be able to make a political point about the lack of powers held by the Scottish Parliament, rather than seek ways to mitigate the effect of the bedroom tax on the people of Scotland.

[Lindsay Roy]

What other options might be available to the Scottish Government?

[Mr Davidson]

The information that we have from relatively brief discussions is that the Scottish Government may give money to social housing providers to allow them to write off debts. They could do that at any stage, so the debts built up under the bedroom tax could simply be written off.

--- Later in debate ---

[Lindsay Roy (Glenrothes) (Lab)]

I congratulate my hon. Friend the Member for Glasgow South West (Mr Davidson) on securing this debate and his tenacity in opposing the bedroom tax. Indeed, he has been an ambassador for nullifying its impact, particularly in Scotland but throughout the rest of the UK as well.

The imposition of the hated bedroom tax is one of the most vile, abhorrent pieces of legislation ever passed by Parliament. The timing of this debate could not be better, because, thankfully, Labour and the SNP have come together to put pressure on the Government to ensure funding through the devolved budget. I pay tribute to all those who worked together to achieved that. I will say more on the matter at the end of my speech.

The bedroom tax been nothing more than an unwarranted and vicious attack on the most vulnerable, disabled and disadvantaged people in our society who have experienced the most disgraceful and punitive financial penalties at a time when the coalition Government insult our intelligence with their disingenuous claims that, in a time of financial restraint, “We’re all in this together.” So much for the oft-quoted slogan, “Those with the broadest shoulders will bear the heaviest burden.” In effect, this is the politics of mirage and fantasy. The coalition partners believe that if something is said often enough, people will believe it. Thankfully, those who live in the real world are not so gullible and do not share the same self-delusion. The coalition’s hypocrisy is no better exemplified than in their almost simultaneous tax break for millionaires and their lack of the missionary zeal so evident when imposing the pernicious bedroom tax when dealing with widespread tax evasion and tax avoidance and the energy companies’ exorbitant profits.

This gross injustice was initially perpetrated by a small core of ideologically bankrupt Tories, who are completely insensitive and uncaring to their fellow citizens. Yes, there are housing capacity and benefit issues in our society, but this simplistic approach is symptomatic of a Secretary of State and ministerial team who adopted a rigid dogma, with very little research or basic homework to assess the implications for hundreds of thousands of decent people in our society who have been trying to make ends meet in challenging circumstances, and sometimes in vain.

Even more worryingly, the DWP warlords have been actively supported in this gross injustice by other political zealots, which has rightly regained them the infamy of being “the nasty party”. Along with the spineless Liberal Democrats, with a few notable exceptions, they have railroaded and sustained this offensive legislation, despite accurate warnings and predictions of the dire consequences. If that was not bad enough, the anguish, despair and anxiety caused by this cruel tax, the bureaucracy associated with it and the overall budget shortfall have become patently obvious throughout Scotland and the rest of the UK. So uncaring were the Government that not only did they block loopholes, but they brazenly carried on regardless, ignoring the overwhelming evidence for repeal. Not willing to repeal the measure, they have dismissed positive proposals for exemptions that make eminent sense.

The Scottish Affairs Committee has been conducting inquiries into the damaging impact that this vile tax has had in Scotland, and it has challenged the Government on their unworkable policy that is putting thousands of Scots in financial hardship, debt and indignity. Indeed, people are having to resort to food banks to feed their families. We have carefully considered how local councils and the Scottish Government have worked together, and I pay tribute to my council, Fife council, for the way it has dealt with the situation by encouraging people to take up discretionary housing payments and going above and beyond the call of duty so to do.

I conclude by returning to the point I made at the beginning. I welcome the introduction of a system whereby the Scottish Government will provide funding, but I have to ask this basic question: why was that not done last year? Was it because of an obsession with independence? Or was it a cruel approach to allow people to suffer before playing the blame game by blaming Westminster for political advantage? It strikes me that people will have to make that decision for themselves when they vote, but yet again it seems to be a game of self-helplessness and blaming other people, rather than taking advantage of the opportunities provided by the available budget to mitigate the circumstances last year as well as this year.

--- Later in debate ---

[Graeme Morrice]

rose—

[Lindsay Roy]

rose—

[Pamela Nash]

Will the Minister give way?

--- Later in debate ---

[Esther McVey]

I welcome my fellow Merseyside MP to the Chair.

[Lindsay Roy]

The Minister spoke about a potential saving of £500 million. When will we get the actual figure?

[Esther McVey]

We will get the actual figure as it works through. That figure is the one we are working to. I have always made it clear, and I make it clear today, that it is about getting the correct use of the housing stock and fairness for those paying for their own home, those in the social rented sector, and those in the private rented sector. It is about stopping the spiralling increase in the housing budget, which Labour allowed to run out of control. That budget doubled in monetary terms in 10 years. How best can we tackle that problem? We are dealing with it and solving it, and we are getting it right.

When we look at the changes that have taken effect, we see that, so far, 9% of people in the UK, and 7% of people in Scotland, have moved. The changes that we were hoping for when we put that into effect were that people would downsize, and that larger houses would be freed up for those in overcrowded accommodation on the waiting list. That has happened, but there is still a way to go.

amendment of the law

Lindsay Roy Excerpts

Tuesday 25th March 2014 Commons Chamber

[Lindsay Roy (Glenrothes) (Lab)]

It is a pleasure to follow the hon. Member for Burton (Andrew Griffiths) and to listen to his speech on small beer.

At a time when we hear that we are turning an economic corner—I welcome this immensely—after several challenging years of recession, this year’s Budget should have been one of optimism and hope for all, and in particular for those who have suffered the most under the Government’s austerity programme. Hard-working families have suffered a cost of living crisis and seen their incomes reduced by £1,600. The disabled, the disadvantaged and those with health issues that prevent them from working have all been badly affected financially.

I welcome the reduction in unemployment, but there are still thousands upon thousands of people who desperately want to work. They have not acquired the skills to take up the posts that are available. Despite their best efforts, they cannot find a job, an apprenticeship or training. It is ludicrous that so many people are willing to work but do not have the skills and expertise to do so. In my constituency, and in many others, jobs are advertised overseas and taken up by those from overseas who have an enhanced skill profile. That is primarily because of the lack of investment in high quality training and support here. These barriers must be removed as a matter of priority, with further investment in vocational training, but yet again the Government have missed a golden opportunity to invest in their people and pump-prime a further reduction in unemployment and benefit payments.

There were token increases in the amount of income exempt from tax, but the Government’s slogan “We’re all in this together” has been further discredited by their unjust refusal to increase tax on higher earners to 50% and their failure to clamp down on the many who avoid tax, thereby robbing the Exchequer of millions of pounds. Primarily, this has been a Budget for Tory vested interests in an effort to sustain support. In other words, these are the same old Tories, some of whose policies evoke blue language on the Opposition Benches. So much for the often quoted but meaningless Tory mantra, “Those with the broadest shoulders will bear the heaviest burden.” In effect, this is the politics of mirage and fantasy. The coalition think that if something is said often enough, people will believe it. On the Labour Benches, we emphatically do not. Thankfully, those who live in the real world are not so gullible and do not share the same self-delusion. They are only too aware of the opportunities missed: replacing the failing Work programme with the job guarantee scheme, an energy freeze, expansion of free child care for working parents and help for millions of workers by reducing basic income tax further.

Like all mainstream political parties, hard-working people support a cap on welfare spending and want effective measures to be taken against the small minority who are fit to work, but who have abused the welfare system and want to live permanently on benefits. However, hard-working people are also only too aware of the gross injustices forced on one section of our society in particular. The hallmark of a civilised society is how we treat our poor, disadvantaged and disabled. This Government have continuously presided over massive failures in policy development and implementation.

[Graeme Morrice (Livingston) (Lab)]

Does my hon. Friend share my concern and horror at the escalation in the number of sanctions made by Jobcentre Plus which, on appeal, have been found to be erroneous?

[Lindsay Roy]

My hon. Friend makes a very important point. In my office, we deal with 12 such cases every week, concerning Atos and sanctions.

The forcible and inhumane imposition of the bedroom tax is a real concern for us. The Prime Minister should have sent the Secretary of State for Work and Pensions back to do his homework properly, and to plan a course of action on welfare benefits on a fair, consistent and evidence-based manner. The fact that he did not demonstrates a weakness to stand up to a dogmatic Minister who has taken a callous, uncaring and brass-neck approach to implementing hurriedly a range of flawed practices that have impacted unfairly on so many of our citizens.

The Chancellor has been culpable in that he has done us a major disservice, as his Budget did absolutely nothing to address the multiple and shambolic failings of the DWP. Dogmatic intransigence and gross inefficiencies have led thousands to suffer through the application of a target-setting culture, in many cases resulting in unjust sanctions and declarations of fitness to work, despite medical evidence to the contrary. Those injustices have left many honest and upright citizens, for the first time in their lives, being forced to access food banks and payday loans and to get into debt. The numbers have grown massively. From my own constituency, I will highlight three inconsistencies and injustices, but I am sure that they are mirrored many times over in other constituencies throughout the country.

The first involved a man who had a medically certified spinal injury and was therefore unable to lift weights. That was interpreted as job avoidance, despite the fact that he had participated in the required number of job applications. He was sanctioned for 13 weeks and had to resort to the local food bank for sustenance.

The second example involved a lady who had been waiting for months for an Atos appointment. Her employment and support allowance was stopped and she was advised to claim jobseekers’ allowance. She is still waiting for an appointment. It is no wonder that she has been waiting: an informed insider told my office last month that in Scotland and north-east England there are 24,000 Atos reports waiting to be processed. When questioned by me, the director of Atos in charge of quality assurance said he did not recognise that number, but we still await a figure. So much for DWP-Atos quality assurance and standards.

The third example concerns a lady who had suffered a close family bereavement. She explained her situation, but until there was prompt intervention by my office, she was ruthlessly sanctioned. The Government have received regular exhortations to abandon the inhumane and vile imposition of the bedroom tax, and to bring fairness, compassion and dignity to DWP-Atos assessments. They have singularly failed to do so.

The ongoing injustices I have highlighted make it clear that our disadvantaged, poor and disabled are still being treated unfairly. In my main jobcentre, there are only two computer access points. Those people are often dealt with callously, but they too have the right to be treated in a respectful and dignified manner, and the DWP must recognise that. Until this happens consistently, DWP Ministers should hang their heads in shame.

Housing Benefit (Under-occupancy Penalty)

Lindsay Roy Excerpts

Wednesday 27th February 2013 Commons Chamber

[Stewart Hosie]

I am extremely well aware of that. The thing is, the mother who cares is there during the day and perhaps occasionally in the evening, but she is not a permanently present overnight carer. That goes back to this being a matter of discretion, rather than people with a disability being properly exempted.

[Lindsay Roy (Glenrothes) (Lab)]

Does the hon. Gentleman have any idea whether his constituent meets the criteria for a discretionary payment?

[Stewart Hosie]

rose—

Oral Answers to Questions

Lindsay Roy Excerpts

Monday 28th January 2013 Commons Chamber

[Mr Hoban]

I am delighted that my hon. Friend has seen for himself the work that A4e is doing in Bracknell. We need more people to have the opportunity to set up their own business, particularly lone parents and those with health conditions. That is why I am pleased to announce that we are extending the availability of the new enterprise allowance to lone parents who receive income support and to some employment and support allowance claimants.

[Lindsay Roy (Glenrothes) (Lab)]

T8. As several of my hon. Friends have already said, almost 500,000 women aged between 59 and 60 will not qualify for the new state pension while men of the same age will do so. How does the Minister justify penalising 700 such women in my constituency in that way?

[Steve Webb]

Just to be clear, the women the hon. Gentleman is talking about will get exactly the pension that they thought they were going to get before we made our announcement, and they will get it on the day on which they thought they were going to get it. We have changed nothing at all. However, under the present system, if those women want to defer a pension for two years, they will get that on the current rules plus 20%, which is a generous rate of deferral.

Remploy Marine Fife

Lindsay Roy Excerpts

Tuesday 15th January 2013 Commons Chamber

[Lindsay Roy (Glenrothes) (Lab)]

I congratulate my right hon. Friend the Member for Kirkcaldy and Cowdenbeath (Mr Brown) on securing this vital debate. I fully endorse the thrust of his argument and commend his analysis of the key issues that face us in securing Remploy’s survival and possible viability.

I plan to underpin the case for a more flexible, generous and co-ordinated approach in the transition to financial viability by providing some additional detail. The Fife work force provide outstanding service, well above and beyond the call of duty. They are not shirkers. Remploy Marine’s order book is full. As my colleague said, their lifejackets meet international standards; they go to places such as Norway, Denmark and the USA. They are at the forefront of the manufacturing we want to retain in this country.

The employees take pride in their work, and are making a significant contribution to wealth creation. Through their initiative and enterprise, they have cut their deficit in half, as we would expect from a work force so dedicated to continued employment. They have an entrepreneurial spirit. There is a full order book. The workers want to boost our diminishing manufacturing base and extend our overseas market. They remain determined to succeed. It is a golden opportunity.

In an authoritative report, Scottish Enterprise states that

“high growth rates are forecast, despite the underdeveloped sales channel.”

Nearly all the Fife production goes to one distributor, who makes a healthy profit from the Remploy brand. As I said, the export market is extensive, and much more could be achieved through diversification.

As my right hon. Friend said, a one size approach does not fit all. The Government’s support package is entirely inappropriate. Remploy Marine has real strengths and potential viability, given the right support package. That is why we want joint working and a co-ordinated approach, with effective leadership, between the Scottish Government, the UK Government, Fife council and any other important partners.

[Mr William Bain (Glasgow North East) (Lab)]

I am most grateful to my hon. Friend for giving way and I thank my right hon. Friend the Member for Kirkcaldy and Cowdenbeath (Mr Brown) for securing the debate.

Does my hon. Friend the Member for Glenrothes recall that when he was elected in 2008 the unemployment rate for disabled people stood at 9%, whereas now it is 12.3%? Is there not a duty to more than half a million disabled people who are out of work for every tier of government to do everything possible to help save those jobs?

[Lindsay Roy]

Absolutely. I am very grateful for that contribution. That is entirely the case that we are making. We want to make sure that all parties concerned do everything they can to support the disabled and disadvantaged in our community, as that is a hallmark of a civilised society.

A viable rescue package is possible, whether it is an employee buy-out, a social enterprise or a private sector purchase. In my view, the proposals are rushed and, ironically, represent a dramatic withdrawal of life support to a group of people who have been life savers for years. An option must remain on the table for an enhanced package for this internationally renowned product. A company such as Remploy Marine, with a substantial number of disabled people, remains a viable, highly competitive option but, as my right hon. Friend the Member for Kirkcaldy and Cowdenbeath said, that cannot be achieved overnight. There are at least two potential buyers, who need all the support that they can get.

At Leven, we have been told that the subsidy is £13,000 a head, but in terms of best value, the Government have been unable to quantify the increased benefits costs if people are made unemployed, nor do we have details of the redundancy payments. Furthermore, we do not know the care and health costs that often result when people become unemployed.

This year, the Leven factory engaged 76 youngsters on work experience placements at no cost to the Government, so there is an added value component. It is my contention that we do not have an accurate balance sheet. With such a small percentage of workers in employment after the July closures, we must do everything that we can together, and there is genuine optimism that we can save the factories in Cowdenbeath and Leven. Like my right hon. Friend, I can vouch for the community spirit and the wholesale backing of the Fife community for these ventures. The support is overwhelming and it is cross-party.

I urge the Government to take a fresh look at the issue, to consider a co-ordinated approach with various partners, and to take this seriously, as I am sure they will. We have a collective duty to reduce the subsidy per individual, and a collective obligation to maximise employment for disabled people. That need not be done by disbanding a potentially viable business. Where there is a collective will, there is a way, and I am confident that with flexibility, good will, effective leadership and co-ordination a successful outcome can be achieved. That is why my hon. Friend the Member for Dunfermline and West Fife (Thomas Docherty) and I have requested an urgent meeting with the Minister, and I trust that she will accede to our request, because by working together we can make a real difference and secure a viable outcome.

Oral Answers to Questions

Lindsay Roy Excerpts

Monday 10th September 2012 Commons Chamber

[Lindsay Roy (Glenrothes) (Lab)]

15. What estimate he has made of the proportion of workers from the recently closed Remploy factories who have gained alternative employment.

[The Parliamentary Under-Secretary of State for Work and Pensions (Esther McVey)]

In the short period since closure, 35 people have immediately found jobs, and the vast majority of workers have already taken up the offer of personalised support with caseworkers, which this Government have introduced to ensure that there is support and which the previous Government did not do. The Remploy board is still considering nine factories at the best and final offer stage. When it has made that decision, I will write to the Members affected and place a copy of the letter in the Library.

[Lindsay Roy]

I thank the Minister for that answer and welcome her to her new position. I am disappointed to learn that there is low uptake, but any new job is most welcome. Remploy Marine in my constituency, in Leven in Fife, which has an unemployment rate of 18%, manufactures high-quality life jackets that are sold internationally, and its order book is full. Nevertheless, the employees are anxious about their future, and the phase 2 bidding process seems to be shrouded in secrecy. When will we get details of the process and the time scales?

[Esther McVey]

First, I thank the hon. Gentleman for his kind words about my coming into this new position. If Mr Speaker will indulge me, I want to say how delighted I am to be here, particularly at the close of the Paralympic games, which have been such a sensational success. As Sir Philip Craven, the international Paralympics president has said, these have been the greatest Paralympic games of all time, with more medals in more sports— 120 medals—for Team GB and record ticket sales of 2.7 million in London compared with 480,000 in Beijing.

Let me return to the hon. Gentleman’s question. I know how much work he has done on this and that he delivered a 100,000-signature petition to the Prime Minister. Further work and analysis is continuing to determine the stage 2 process for the Remploy sites. Work is going forward. He, like me—I have read the words he said—wanted a viable business. That is exactly right, and that is what we are looking for. Where there is a viable business, it will continue, because we are looking for sustainable, long-term employment for all those employees.

Remploy

Lindsay Roy Excerpts

Thursday 15th December 2011 Westminster Hall

[Lindsay Roy (Glenrothes) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Benton. I add my congratulations to those who have secured today’s debate.

This is a vital time for those facing threats to their supported employment, and indeed to their welfare, well-being, health and self-esteem. I shall curtail my comments because I endorse many of the points that have been made about procurement and management.

Why on earth should we abandon an existing state-funded model purely for ideological reasons when in many factories real dividends are patently being achieved? With modernisation, a lot more could be achieved. In Leven, Fife, in my constituency, Remploy marine division makes high-quality lifejackets and sells them at home and in international markets. It is highly competitive, and its order book is full. Yes, the company receives a Government subsidy for each employee, but as I said, Remploy is highly competitive. Its employees use their initiative and enterprise, and they are well-trained. Remploy remains in the vanguard in the development of a specialist, niche market. The subsidy is really an investment in people, ensuring meaningful work for disabled people in a sheltered environment. It provides decently paid work for thousands of people up and down the country who would find it immensely challenging to find employment elsewhere.

I wrote to the Minister about the Leven factory and asked what the difference would be between having its 29 employees in supported work and paying them unemployment and disability benefits. I find it incredible that she could not tell me. To proceed to factory closure without doing comprehensive homework is, at best, cavalier and I suggest that it is, to a degree, irresponsible, even in relation to that small factory.

The closure of a factory in an area where there is 18% unemployment would not only devastate a viable business but an integrated and mutually supportive community. Let us make no mistake: although the factory requires Government investment in people and in the narrowest definition it may not be financially profitable, in the widest terms its dividends to the community make it a profit-making enterprise. That is the case with many other Remploy factories too.

This Government say that they believe in choice, and the importance of choice is substantiated by a very articulate young man who works at Remploy in Leven. I make no apology for quoting from a letter that he sent to me and indeed to the Minister:

“Work is seen as being hugely positive for a person, for their social status, their relationships - both in professional and personal terms - and their health and well-being, and also their monetary income. My engagement at Remploy was a deliberate choice - there were other options open to me. My experience at Remploy has facilitated independent living - and I have gained at Remploy things that cannot be bought with wages - but rather earned through my daily relationships at work. I refer to dignity, self-belief, respect, routine and structure - and the qualities that engender self-reliance and unique identity - an identity that is not defined by my condition. They ingrain me with a sense that I am a fully functioning member of society - and it is this human capacity - and the potential removal of high quality work, for ideological reasons, that lies at the heart of the matter.”

That young man is highly critical of Liz Sayce’s branding of Remploy jobs as non-roles and subsequently non-jobs, and her descriptions of Remploy factories as “ghettos”. I challenge the Minister, following her visits to Leven and elsewhere, to dissociate herself from those alleged remarks.

The Minister’s central theme is that resources should be focused on disabled people themselves, rather than on institutions. “Institutions” can be considered in this context as a pejorative term and the description of Remploy factories as “ghettos” is offensive. Remploy factories, which are work organisations where individuals can grow and flourish, must be part of a mixed model of provision to meet the legitimate needs and aspirations of disabled people in our society.

Finally, given the arguments that have been put forward today, I would like an assurance from the Minister that the current Remploy model, with modernisation, will remain part of any future planning for supported employment. I am sure that the quality of output, the sense of pride in a job well done and the business and community spirit witnessed by the Minister in Leven is replicated in many Remploy factories throughout the country. The existing model, with modernisation, makes perfect sense as an option for supported employment. The way that we treat disabled people is a benchmark of a civilised society. I urge the Minister to treat Remploy employees with the dignity, respect and priority that they so richly deserve. They want to continue playing their part in contributing to the economy and wider society, with all the dividends that that brings. If a disabled community in the Remploy factory in Leven can make high-quality life-saving buoyancy jackets that are competitive internationally, surely it is not beyond the wit of Government not only to keep the factory afloat but to strengthen its business stream and extend a further lifeline to its employees.

--- Later in debate ---

[Maria Miller]

My hon. Friend is absolutely right that we should not get away from the facts here. Disabled people listening to this debate expect us to show a way forward for the future. All the meetings that I have had with the leading disability organisations on this issue have made it clear that disabled young people, as was said in an earlier intervention, want to ensure that they have sustainable jobs in the future. Those disabled young people want to make sure that they learn the skills that will give them those sustainable jobs into the future, which is my priority. That is where I want to ensure the Government’s funding is being placed. We have made it clear that this money is ring-fenced, so it is secure. The issue is about getting the best outcomes for disabled people. Some hon. Members questioned whether this was the right way forward. I tell them first, second and third that we will make sure that the priority is the best outcome for disabled people. That is what comes first rather than vested interests or the history, because we have to look at the future.

[Lindsay Roy]

Will the Minister distance herself from the comment that Remploy factories were ghettos?

[Maria Miller]

The hon. Gentleman is asking me to comment on something that I do not think I would ever say. [Interruption.] What I would say is that we have to listen to what disabled people want. Disabled people tell me that they want to live independent lives in communities like everybody else. To be able to do that, they want to have the jobs that everybody else would expect as well.

I fear that I will run out of time if I do not wind up my remarks quickly. In conclusion, getting this right is absolutely crucial for millions of people—millions of our constituents. It is only right that we take the time to consider the consultation representations before making any decisions. I have not yet made a decision about the future, and an announcement will be made as soon as is practically possible. Hon. Members can be sure that I will consider carefully not only the points that have been raised today, but the points that have been raised by hon. Members and right hon. Members in the many meetings that we have had in recent weeks. However, we need to look at the evidence. We need to be driven by that evidence and ensure that we are committed to the best decision for the future of disabled people. I recognise how vital it is to join up with work across Government to improve employment outcomes for disabled people. I have already answered one of the requests in the Sayce report to establish a cross-Government Committee that considers disabled people’s employment.

State Pension Age (Women)

Lindsay Roy Excerpts

Wednesday 11th May 2011 Westminster Hall

[Rachel Reeves]

Yes. The hon. Gentleman’s intervention also touches on a point that my hon. Friend the Member for Wirral South (Alison McGovern) made earlier when she talked about the importance of people having trust in the pensions system. Unless we trust the pensions system and can have some certainty about what the future holds for us, it is very difficult for people—both men and women—to prepare for the future.

I want to quote something else that the Minister has said. In October 2009, he said:

“The Tories still seem to think that as long as women have husbands they don’t need to worry about their pensions.”

I wonder whether he has changed his views now that he is in government with the Conservatives. As the hon. Member for Mid Dorset and North Poole said earlier, women have been consistently badly served by the pensions system, both occupational and state. In opposition, the Minister campaigned for women pensioners, but now that he is in government he is hurting them hard. I wonder why he is doing that, when he is under no obligation to do so. I repeat that these changes were not in the coalition agreement, so he has no reason to support them.

Of course, the Minister has claimed that these women have jobseeker’s allowance to fall back on. But as hon. Members have already said, that does not seem to be the point. Talking about JSA is an insult to those who have worked their entire lives, especially because JSA only provides about half the income that the pension credit provides and about two thirds of the income that the basic state pension provides. These women do not want a handout. They legitimately want to receive the pension that they have contributed to on the date that they were promised it. Again, that brings us back to the issue of trust. It is so important that people have trust in the pensions system.

We have heard a lot of stories today about how these changes will affect great numbers of women, because every one of those 500,000 women who will have to wait an additional year before they receive their state pension has a personal story. We have heard some of those stories already. I want to tell Members two stories that I have heard that I think are particularly powerful. The first is from Barbara Bates, who says:

“From the age of 15, I have worked every day of my life, apart from a few years when I stayed at home to care for my disabled husband until his death in 2003. Since 1995, I have thought that I would retire in 2018, when I will be 64. I have based all my plans for the future on this. I now have to wait an extra two years to retire—in April 2020, when I will be 66. I feel robbed—robbed of two years of freedom, and robbed of more than £10,000 that I would have received as my state pension. The basic state pension will be my only retirement income, and I have no extra means of coping financially. I will have no option but to try and carry on working. I have osteoarthritis in my thumbs and wrists now, which makes the lifting and cleaning work in my job harder: I’m not sure how I’ll manage to the age of 66.”

I will read out another story, from Linda Murray:

“I started working at 16 and have worked full-time ever since, apart from a brief period of part-time work when I was caring for my mother. I work in a very physically demanding job, at a dry cleaners, for 46 hours each week just to make ends meet. I have never had the means to save for a private pension. When I started work, private pensions were not readily available for ordinary workers. We paid our contributions and assumed that we would draw a state pension and that it would be sufficient. Due to my circumstances, I know that full retirement is no longer an option. My plan was to greatly reduce my hours when I received my pension and return to part-time work. Now I estimate that I would need to save at least £12,000 just to be able to work part-time from the age of 64. Saving anything is impossible. I will not be able to continue working these demanding hours until the age of 66 and I am deeply worried about my future.”

It is people such as Linda and Barbara who I think most of us went into politics to serve, yet the Minister, who in opposition campaigned so much for women, is now hitting them hard, as I said earlier. These are stories, not numbers, and they hit home hard. It is wrong to hurt a group of women disproportionately, by giving them such little notice of a change when they have such little chance of making up the difference in income that they will lose.

Labour accepts and celebrates increasing longevity and therefore we accept that there is a need to increase the state pension age, as we did when we implemented the recommendations of the Turner report. However, making changes to pensions must be done in a fair way, giving people enough time to prepare for them.

What Labour now proposes is no more changes before 2020 and, if the Government accept the amendment to the Pensions Bill that they rejected in the House of Lords, we will support the state pension age increasing from 65 to 66 between 2020 and 2022. That would achieve a £20 billion reduction in expenditure, would affect equal numbers of men and women and, crucially, would affect 1.2 million fewer people than the Government’s current plans. It would give people nine years—not just five—to adjust to the changes, and no one would have to wait more than a year longer than expected to claim their state pension, to which they had contributed throughout their lives.

We will not let this matter go and nor, do not think, will the women affected. We must hold the coalition to account on its agreement.

[Lindsay Roy (Glenrothes) (Lab)]

Has my hon. Friend been given any indication as to why this group of women has been so unfairly targeted?

[Rachel Reeves]

We will hear from the Minister in a moment, but we heard the arguments being rehearsed when the Pensions Bill was debated in the House of Lords. We are told that we first need to reduce the budget deficit but, as other Members have said, these provisions will not change that deficit in this Parliament and if the Government’s plans to eliminate the structural deficit in this Parliament come true, I do not see why changes on this scale will be needed in the next Parliament.

The Government’s other claim is about longevity, but longevity is not especially increasing for women aged 57, so why are we particularly targeting women of that age? If the Government wanted to look more broadly at longevity and increases in the state pension age, they would, I think, get cross-party support for that. It is particularly unfair and disproportionate to harm a group of women who have five years to prepare for the changes and have so little chance of making up the difference in lost income, which is what the women who have been writing to all of us are saying.

My final quote from the Minister is:

“a pension promise made should be a pension promise kept.”

He and his colleagues should heed that, and we are not alone in our thinking. Age UK, the unions, Saga, The Guardian and the Daily Mail are all arguing for the Government to think again, and Age UK has organised a mass lobby of Parliament for a week today.