Oral Answers to Questions

Lord Harrington of Watford Excerpts

Monday 27th March 2017 Commons Chamber

[Seema Kennedy (South Ribble) (Con)]

1. What steps the Government are taking to ensure that people have accurate and clear information to inform decisions on the use of their pension investments.

[The Parliamentary Under-Secretary of State for Pensions (Richard Harrington)]

The Government are committed to providing free and impartial guidance through Pension Wise to help people make informed and confident decisions about how they use their defined contribution pension savings in retirement.

[Seema Kennedy]

I am grateful for that answer. Will my hon. Friend reassure me that the Government are taking steps to protect people from being scammed out of their savings as well as ensuring that people have access to information to help them to decide how to draw down their pension savings?

[Richard Harrington]

My hon. Friend is absolutely right to ask that question. The Government take the threat posed by scams very seriously indeed. We run campaigns to highlight the risk posed by scams to savers, and we have established a cross-government taskforce to gather and share intelligence, and to co-ordinate enforcement action. We have also consulted on further measures to tackle scammers, including a proposal to ban cold calling in relation to pensions. Our next step will be announced very soon.

[Chris Leslie (Nottingham East) (Lab/Co-op)]

Well, that is the point I was going to ask the Minister about. Will he tell us when he will crack down on cold calling? These people are trying to scam others out of their hard-earned life savings, taking advantage of the notion that there are these freedoms, but potentially putting pensioners at great risk. When will the legislation be brought forward?

[Richard Harrington]

As is to be expected, the hon. Gentleman asks a pertinent question; very soon, is the answer.

[Mr Philip Hollobone (Kettering) (Con)]

Preying on elderly people in order to take advantage of their pension pots by giving them bad advice is a despicable crime. Is the Minister satisfied that the number of prosecutions of those who do this frankly evil activity is nearly enough?

[Richard Harrington]

I would like to be able say that it is enough, but I do not think it is. The steps we intend to take should make prosecutions for scam cold calling much easier. If I am asked the question again in the future, I hope to be able to answer in the affirmative.

[Ian Blackford (Ross, Skye and Lochaber) (SNP)]

On the issue of accurate and clear information, the Cridland report, published last week, stated:

“An increase of the State Pension age every ten years—and by only one year per decade—represents an appropriate pace of change”.

Does the Minister agree with that statement? If so, will he revisit the issue of the WASPI women, who face an increase in the state pensionable age of more than five years this decade?

[Richard Harrington]

I know that the hon. Gentleman has read the Cridland report in detail, and I thank him for doing so. It will suffice to say that the Government’s response will be published at the end of May and will be comprehensive. As far as the WASPI women are concerned, he knows—I have said this many times at this Dispatch Box and elsewhere—that the Government have made the concession that they are going to make in terms of transitional arrangements from the Pensions Act 1995. I have no further news. That is it.

[Mr Alan Mak (Havant) (Con)]

Reducing fees and charges levied by pension companies is important to helping customers to get the most from their investments. Will the Minister update the House on what progress has been made in that area?

[Richard Harrington]

My hon. Friend and I have discussed the matter, and I am pleased that he has highlighted it. There has been consultation on the subject, and the Government will make an announcement ourselves and through the regulator very soon.

[Alex Cunningham (Stockton North) (Lab)]

The Government missed an opportunity this year to tackle a wide range of issues in the pensions industry, but they chose to ignore most of them, instead bringing forward the narrow Pension Schemes Bill. The Secretary of State then failed to further his own agenda by instructing his Ministers to resist any attempt to introduce transparency, member engagement and greater clarity on costs. Why does he choose to protect the industry instead of savers? What will the Government do to correct this failure and help us all to build trust in our pensions industry?

[Richard Harrington]

I thank the shadow Minister for voting for the Bill on Second Reading, and for his generally constructive approach to it. As the hon. Gentleman well knows, the transparency agenda is part of a much broader agenda, and the Government will make a proposal very soon.

[Martin Vickers (Cleethorpes) (Con)]

I am currently dealing with two constituency cases in which old people have been robbed of their life savings. In both cases, they have been disappointed with the police response. Will the Minister’s cross-departmental work include contact with the Home Office and individual police forces to ensure that more work is done to address this?

[Richard Harrington]

I can confirm that the police and anti-fraud authorities are involved in this cross-governmental body.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

2. What assessment he has made of recent trends in the level of self-employment.

--- Later in debate ---

[Diana Johnson (Kingston upon Hull North) (Lab)]

20. What recent discussions he has had with the Chancellor of the Exchequer on improving pension transition arrangements for women born in the 1950s.

[The Parliamentary Under-Secretary of State for Pensions (Richard Harrington)]

I give the same answer I gave to the hon. Member for Ross, Skye and Lochaber (Ian Blackford): the Government have been clear that the introduction of further transitional arrangements cannot be justified, given the imperative to focus public resources on helping those who are most in need. There are no plans to go beyond the £1.1 billion concession introduced when Parliament considered the changes.

[Rosie Cooper]

In response to the Minister’s answer, I ask him whether he will respond to the comments of his Government’s former Pensions Minister Baroness Altmann, who said she regretted the Government’s failure to properly communicate state pension age equalisation, an approach she described as

“a massive failure of public policy”,

and the comments of Steve Webb, another of their former Pensions Ministers, who said that the last Government made a bad decision on changing the state pension age? Will the Minister look at rectifying that?

[Richard Harrington]

In the latter case, Steve Webb was Pensions Minister at the time, so I do not think there is much further I can say about that.

There were very extensive communications on the 1995 changes. Millions of people checked their state pension requirements; it was publicised and leaflets were produced. This has been said many times on the Floor of the House, and I simply reiterate it.

[Diana Johnson]

It is not good enough for the Minister to say, as he did earlier, that that is it for the WASPI women and that everything has been done that is going to be done. Has he given any consideration to the recommendation from the Work and Pensions Committee talking about allowing the WASPI women the chance to claim their pensions early at a reduced rate, which I believe is cost-neutral and fits with other areas where the Government have allowed pensioners to take their pensions earlier at a reduced rate?

[Richard Harrington]

The proposal is not cost-neutral; I must make that clear. It is very impractical and it is impossible to do in the time concerned. I have made it very clear that the transitional arrangements that were made when the Pensions Bill went through Parliament are all that will be provided.

[Sir Desmond Swayne (New Forest West) (Con)]

What was the minimum notice received by those facing the maximum increase in age?

[Richard Harrington]

These changes took place under two Acts of Parliament: the Pensions Act 1995, which brought in the main change, and the Pensions Act after that. I want to make it clear that after the 1995 Act, 18 months was the maximum increase.

[Graham Evans (Weaver Vale) (Con)]

Last week, the John Cridland report indicated that there may well be an increase in the pension age. As life expectancy rises, it is right and proper for any Government to consider increasing the state pension age. However, will my hon. Friend reassure the House that if there are indeed any changes to the state pension age, they will be communicated in a timely and appropriate manner, so that those affected know about them?

[Richard Harrington]

The Government will be making a full response to the Cridland report. The review is forward-looking and, I must make it clear, will not make recommendations for any changes to happen before 2028. That was a commitment in the 2013 autumn statement.

[Rob Marris (Wolverhampton South West) (Lab)]

19. The Minister said in terms that the Government cannot afford to fund transitional arrangements or any of the proposals in the report referred to by my hon. Friend the Member for Kingston upon Hull North (Diana Johnson). May I suggest that he look again, with the Chancellor of the Exchequer, at spending over £30 billion on tax relief for pension contributions, for which there is no evidence that it encourages pension savings?

[Richard Harrington]

There is a lot happening in pensions at the moment. The point the hon. Gentleman mentions in relation to the Chancellor of the Exchequer is something completely different, but there will be no change to the transitional arrangements at £1.1 billion.

[Alex Cunningham (Stockton North) (Lab)]

Labour will oppose the earlier increase in the state pension age and the end of the triple lock, recommended in last week’s Cridland report, but we welcome the statement from John Cridland that at least 10 years’ notice should be given of any age increase, so there is yet another chance for the Minister. Do the Government agree with Cridland? If they do, will the Minister now admit that they got it badly wrong with the WASPI women and at least back Labour’s proposals to extend pension tax credit?

[Richard Harrington]

As I said before, the Government will respond to the Cridland review by the end of May.

[Steven Paterson (Stirling) (SNP)]

12. What assessment he has made of the policy implications for his Department of the UK leaving the EU.

--- Later in debate ---

[Thangam Debbonaire (Bristol West) (Lab)]

The Fawcett Society found last year that 25% of women over 30 are saving nothing for retirement, compared with 15% of men. What does the Secretary of State think is responsible for that, and what is he doing to change it?

[The Parliamentary Under-Secretary of State for Pensions (Richard Harrington)]

Automatic enrolment was designed specifically to help those who were under-represented in pension savings, including women. With the current rate of £10,000 a year, 70% of the new people coming into the system in 2017-18 will be women.

[Kate Green (Stretford and Urmston) (Lab)]

Six out of 10 people with epilepsy who were migrating from DLA to PIP and were surveyed by Epilepsy Action saw their benefit removed or reduced. That compares with two out of 10 people who are migrating overall. Are Ministers confident that assessors and decision makers properly understand the fluctuating, sporadic and life-limiting condition of epilepsy, so that they can make the right decisions?