(1 year, 5 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship, Mr Davies. I congratulate the hon. Member for Midlothian (Owen Thompson) on securing the debate and passionately putting forward his case. I congratulate the hon. Member for Inverclyde (Ronnie Cowan) on the debris and disaster that he wreaked upon his garden last weekend—mighty will be the photographs, I am sure. It was also good to hear the points set out by my friend the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier).
It was good to hear from the shadow Pensions Minister, the hon. Member for Reading East (Matt Rodda), who is also a friend of mine. I am no longer the Pensions Minister, because I was shuffled off that mortal coil by the previous Prime Minister, but I am standing in as a deputy today. I apologise on behalf of the actual Pensions Minister, my hon. Friend the Member for Sevenoaks (Laura Trott), who has a long-standing engagement outside the House of Commons that has been pre-booked for a considerable time, so I notify the hon. Member for Midlothian that she means no discourtesy to him or the House by her absence. I will endeavour to be an able replacement for the Pensions Minister, but she is most definitely carrying forward the torch of the Department’s policy on an ongoing basis.
This has been a debate about all matters construction, and it is right and proper that a full declaration of previous ability be made. I was a painter and decorator for the best part of nine months. I helped to build various buildings on labouring sites, just like the hon. Member for Midlothian, and I was briefly a roofer in my student days. “Opperman” means “upper man”—the man thrown up on the roof in days gone by to catch the tiles as they were thrown up there—so I come to this debate with great support for the construction industry. The hon. Gentleman was entirely right to laud, as others did, construction workers’ contribution to society, whether that is in Scotland, in the United Kingdom or throughout the world. It is to our credit that we have a thriving industry.
The hon. Gentleman raises a legitimate, fair and fundamental point: whether someone is a construction worker or any other person doing a heavy, physical, manual job, how does the state provide for them on an ongoing basis as they age and reach the designated retirement age? With due respect, we have to bear in mind that at all stages there is the issue of intergenerational fairness, because all pensions—this point is not always grasped—are paid by the taxpayer of today, who has to make a contribution to satisfy the number of pensioners, which is going up massively.
Bluntly, we pay more in pensions than ever before in this country. The new state pension went up to £203.85, which is an increase of £18.70, in April 2023. The hon. Gentleman will be aware that the benefit system was enhanced by over 10% in the Budget. We have never paid more in state pensions than we currently do.
Many construction workers are self-employed and will therefore have no private pension, or a limited one. Does the Minister agree that we should recognise that facet of the construction sector and look at how pension education can be improved in the sector?
As the person who pioneered Pension Awareness Day, which I can strongly recommend, and many other pension policies during my five years as the Pensions Minister, I strongly endorse the hon. Lady’s point and encourage the sector unions to get involved in that. To be blunt, some were better than others. I had the honour and privilege of speaking twice at the Trades Union Congress annual conference; I think the first time was a legitimate invitation, but the second time I believe the invitation was probably just repeated by mistake. Making the case to union and sector colleagues for what we are trying to do is very important. I take the point.
The hon. Lady brings me nicely to the issue of which pensions are available. There are three types. There is the state pension, which obviously depends on the extent to which the individual pays national insurance contributions. Pretty much every employee in the construction sector will be paying national insurance contributions as part of their employment, and there is no question but that the self-employed should also be a part of that. The state pension should kick in in the usual way, so that will arrive at a particular time.
On top of that are the reforms brought in originally by the Labour Government, through the Turner commission, in 2003 and subsequently legislated for by the coalition in 2011-12 and expanded on by the coalition. I am referring to automatic enrolment. I accept that not everybody in the construction sector is in an employed job, but I will come to that point in a second. Automatic enrolment is an undoubted cross-party UK success story— I knew it was going well when the Pensions Minister from China requested a meeting to discuss how we were trying to get a workforce motivated and saving in a way that they could not necessarily do previously.
It was clear that the pensions system in the 1980s, the ’90s and the noughties was declining in terms of the private contributions that we wished to see. The defined benefit system was declining and the defined contribution system needed to grow. Putting it to the individual was difficult—I will come in a second to the point that the hon. Member for Rutherglen and Hamilton West made about the self-employed—but automatic enrolment has transformed private pension saving in this country. Saving 8% on an ongoing basis, as we are now doing, with a contribution from the employer within that and some support from the taxman, is massively helpful.
Let me give the stats. As of May 2023, we were almost at 11 million employees, having started in 2012. In 2012, the number of people who had a private pension was 42%; that has now gone up to 86%. Young people were at below 30%; they are now at 85%. Women were at just about 40%; they are now at 87%. The stat that I have for construction workers, which I am assured was provided by my predecessor but one, is that construction workers with private pensions have gone from 30% to 79%. Obviously, that is those who are in an employed situation, but it clearly shows a dramatic improvement on the situation that would have applied if we had been having this conversation 11 years ago, prior to the introduction of automatic enrolment.
That does not mean that one should not address the points that have fairly been raised about the self-employed. Having done 20 years as a self-employed individual, let me make the point that if one is self-employed, one has the perfect right to sign up to one’s own pension. One has the perfect right to join NEST, the National Employment Savings Trust, which is the easiest automatic enrolment provider. There are many different sectors that are relevant. I started out as a—much thinner—jockey and then became a lawyer. Construction workers can set up their own self-employed pension, which is of course tax-deductible as to earnings on an ongoing basis, and many in the construction industry take advantage of that.
However, I accept that there is a cohort that is not saving as it would like to, notwithstanding the three potential ways in which that happens. Along with a state pension that has increased, one has to be aware of the 2016 reforms, which were introduced by a previous Government and set out the new state pension, which was introduced to be simpler and better for a whole cohort of society. To be fair to the hon. Member for Midlothian, he set out the Pensions Minister’s approach previously. This is in a context where there is the universality of the state pension, but more importantly, we have had this for 75 years, and the modern state pension has very clear rules—the hon. Gentleman set them out—about the time at which one can get entitlement. Those rules help to make it both affordable, because it is paid for by the working taxpayer, and sustainable, so that it can continue to be the foundation of income in retirement for future generations.
There is some evidence from some countries—I accept the hon. Gentleman’s point—that one can have an earlier acceptance of part of one’s pension in some cases, but there is a lesser sum. There is genuinely an issue with being careful what you wish for, though. The reason why the Cridland review and the Neville-Rolfe review are sceptical about this, as the hon. Gentleman set out, is that the state pension is there to provide a basic form of support in our old age, such that the state can then say, “We assess that this contribution of taxpayer funding—of GDP—is the amount that we will set aside to try to support those in difficulties by reason of their age, such that they are now pensioners.”
On top of that, there is £30 billion-worth of housing support, there is pension credit support worth many thousands of pounds, and there are a huge number of other additional benefits, such as the winter fuel payment, which is going up by £300. The hon. Gentleman alluded to the fact that things like the cost of living are more complicated; he will be aware that we have spent £94 billion over the past couple of years to support the most vulnerable, including those on benefits, those in receipt of the state pension and particularly those in receipt of pension credit. That support is ongoing. The rises in winter fuel payments are a good example, with the extra £300 coming in plus the ongoing energy support grant.
It is clear that special arrangements for certain groups would rapidly lead to calls for similar arrangements for other groups. How can I put it delicately? I was not a very good jockey—I broke 26 bones in my body in my limited and short career, and my life expectancy and longevity as a jockey were highly limited—but I was able to transfer those skills, some would say interestingly, into being a lawyer and a Member of Parliament. But there are plenty of other professions that would then come forward, and that is a very significant issue for the state. It is worth having a proper conversation about this, because ultimately the state has to decide how much of a tax contribution should be taken from the working population to address these problems. There are inherent problems that would undermine a universal state pension age and its clarity.
Having worked in the Department for Work and Pensions for the past eight years, for my sins, I can strongly assure the hon. Member for Midlothian that the administration of the state pension is a marvel, but it is also incredibly complex. The moment that there were an introduction of a differential assessment, it would create a logistical conundrum, to say the least, and would require administration on an epic level. Getting such a thing correct—I suspect that as the hon. Gentleman proposes, all these things would have to be assessed, including with a prior medical assessment—is extraordinarily difficult. With respect, that approach was comprehensively rejected by the Cridland report. I accept that one paragraph of the Neville-Rolfe report seems to suggest that certain people do so; I think it talks about people who are 65 with 45 years of national insurance contributions. It is something that can be legislated for, because this Government or any future Government will have to legislate for the state pension situation in the next two years. There is no doubt that we will have to return to the issue and produce legislation setting out on how these things can be done, and Parliament can make decisions on that.
I will make a couple of brief points that I think are relevant to how we approach people who have done one job but are struggling to continue in it. First, they would obviously rather be working than on welfare, but we have never paid more welfare support: this country has never given more to the disabled and to those on welfare support. There is a copious amount of support out there. On reskilling, the hon. Gentleman will be aware of the Augar review, the lifelong learning pledge and the efforts that are being made to create further education not just for people aged 18 to 24, but for older workers, in a whole host of ways.
I will slightly push back on the hon. Member for Inverclyde, who was slightly disparaging on the skills situation. I believe that there have been about 5,454,000 apprenticeships since 2010. That is a pretty impressive record on apprenticeships, which have massively increased.
(1 year, 11 months ago)
Commons ChamberIt is true that Essex is a pioneer of our in-work progression offer; I spoke to one of the job coaches doing that in Essex only this morning. We are recruiting senior district progression leads who will work with local skills providers to ensure that there is appropriate training for in-work claimants. Bluntly, the Essex profile, along with the other volunteer organisations, will be going out to the entire country by the end of March 2023.
With the DWP struggling to recruit in under-resourced areas such as personal independence payments and child maintenance, and huge take-up of voluntary redundancy in regional offices, how will Ministers ensure the Department’s ability to support the public is not endangered further?
It is our intention to have jobs fairs, sector-based work academies and local recruitment on an ongoing basis. I am happy to discuss with the hon. Lady, whom I have worked with many times in the past, how we can do things in her patch.
My hon. Friend is a doughty champion for Grimsby and will be pleased to know that an adult social care jobs fair, with 10 employers in attendance, will take place on Wednesday, and a whole host of events will take place every single day during apprenticeship week in two weeks’ time. We are also rolling out the in-work progression offer to Grimsby, starting in March, which genuinely will make a difference and promote greater employment.
Attention deficit hyperactivity disorder and autism are severely underdiagnosed in women and girls, and are often misdiagnosed as mood disorders. What discussions have Ministers had with the Health and Social Care Secretary about the impact this is having on women’s ability to access and maintain employment, and what steps will be taken to support them?
(2 years, 1 month ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is an honour to serve under your chairmanship, Sir Christopher.
I congratulate the hon. Member for Airdrie and Shotts (Ms Qaisar) on her first ever Westminster Hall debate. I confess that it is my first ever Westminster Hall debate in my new role, which I have been doing for just over three weeks. I have not had an opportunity to congratulate her on winning her by-election; it was a worthy win. I send my best wishes to her predecessor, with whom I did huge amounts of work when I was in the pensions brief at the Department for Work and Pensions for five years. I was battle-scarred after five years of working at the DWP. I had a brief sabbatical in the summer when I returned to the Back Benches before the Prime Minister asked me to take on this role. By my count, I have approximately 20 issues to respond to; I will do my best over the next 15 to 20 minutes.
Although the debate was introduced by a Scottish Member of Parliament, it is about social security support throughout the country, and it is timely, given the context of the illegal invasion by Mr Putin of Ukraine, the consequences of the aftershocks of covid, the rise in energy prices, the inflationary impacts that are clearly happening, and last week’s autumn statement. Although the autumn statement, which I am sure we will discuss, tried to address many of the issues that have been raised today, it would be naive not to accept and acknowledge that all countries in the western world are attempting to deal with difficulties in respect of the war in Ukraine, the energy price hikes, the fact that we are effectively in an energy war, the consequential impacts on national income, and the impacts of inflation.
The Government are responding to the challenges we face, and in last week’s autumn statement we showed a clear commitment to helping families and the most vulnerable. That includes a further £26 billion of cost of living support, on top of the £37 billion set out in spring last year by the then Chancellor. I will try to address the relevant points in a variety of ways. I have been in this role for only approximately three and a half weeks, but I have had the opportunity to go to jobcentres and meet DWP staff at locations ranging from Canvey Island and Birmingham to Hackney earlier this week.
I have previously visited a variety of jobcentres from Banff to Belfast, from Hastings to Amlwch in north Wales, and from Redcar to Blackpool, and I put on the record my desire to return to some of those locations. The hon. Member for Glasgow East (David Linden) has headed off, but I well remember visiting Shettleston and the Tollcross advice centre in his patch in 2019, and I deeply enjoyed the famous visit to the constituency of the hon. Member for Strangford (Jim Shannon). It is not a good thing to advertise the fact that I have been ambushed by a cake, but when I walked into his constituency office his staff literally ambushed me with a lemon drizzle. Obviously, that did not endear me to the previous Prime Minister bar one, my right hon. Friend the Member for Uxbridge and South Ruislip (Boris Johnson), but I hope to be back in Northern Ireland soon and I take on board the points raised by the hon. Gentleman. I will endeavour to look into the matter when he gets back to me on it.
As the Minister for Employment I cover this brief and others, although not all the matters that have been raised today, and it is certainly my intention to try to visit all parts of the UK shortly. I hope to visit Northern Ireland, Wales and Scotland within the next three or four months, depending on parliamentary diaries, negotiations with my good lady wife and various other things, as well as visiting a variety of locations up and down the country, to enable me better to understand the issues that have been raised.
In respect of support for children, the fundamental starting point should surely be the fact that the UK supports children and families throughout the country through child benefit. We need to begin with an assessment of that. It has continued under successive Governments, and as of August 2021 there were 8 million families claiming child benefit and 12 million children in receipt of child benefit. In Scotland alone, 532,000 families and 878,000 children were in receipt of child benefit.
I have a lot to try to address. Let me make a little progress, then I will give way.
Child benefit is available to anyone responsible for bringing up a child aged 16 or under, or 20 if they are in approved education or training. From April 2023, the weekly rate will increase by 10.1%, from £21.80 to £24 for the eldest or only child and from £14.45 to £15.90 for every other child. The UK child benefit bill for 2022-23 is almost £12 billion, and obviously there are other benefits with respect to claiming child benefit, such as national insurance credits, which protect future entitlement to the state pension and can be transferred to grandparents who provide childcare. Claiming also enables children to get their national insurance number automatically at 16.
The Minister knows that I have a lot of time for him because he sat through proceedings in the Chamber on my private Member’s Bill when he was pensions Minister. According to the Child Poverty Action Group, last year a couple working full-time on the minimum wage and a lone parent working full-time on the median wage were able to reach a minimum standard of living. That is not the case today, although the report was published before the autumn statement. What reassurance can the Minister offer lone parents for whom the cost of raising a child is already higher than it is for couples?
The hon. Lady and I spent nearly six months campaigning to ensure that there was a serious and legitimate change to women’s pensions entitlements in certain private sector pensions. I thank her for her work on the private Member’s Bill that she brought forward and that is now in law, having been signed by Her Majesty the Queen. I welcome the fact that she worked on a cross-party basis to ensure that happened. I will try to address the child poverty issue that was raised by several colleagues. I want to deal with it in a variety of ways. I will then segue on to the in-work progression point—namely, people who are working but also suffering from poverty.
Let me start with the background. The fundamental point is that the Government are committed to a sustainable, long-term approach to tackle child poverty in supporting low-income families. We spent £242 billion through the welfare system in the United Kingdom in 2022-23, including £108 billion on people of working age. We have made permanent changes to universal credit worth £1,000 a year on average to 1.7 million claimants, and have given the lowest earners a pay rise by increasing the national living wage by 6.6% to £9.50 from April 2022. From 1 April 2023, the national living wage will increase by 9.7% to £10.42 an hour for workers aged 23 and over. That is the largest ever cash increase to the national living wage. It represents an increase of more than £1,600 to the annual earnings of full-time workers on the national living wage, and is expected to benefit more than 2 million low-paid workers.
I will address the poverty statistics. The latest statistics show that poverty fell for nearly all measures in 2020-21 compared with 2019-20. In 2021 there were 1.2 million fewer people in absolute poverty, before housing costs, than in 2009-10, including 200,000 fewer children. We will come to workless households in a second, but since 2010 there are nearly 1 million fewer workless households in the United Kingdom. The number of children growing up in homes where no one works has fallen by 590,000 since 2010—
(2 years, 1 month ago)
Commons ChamberAll roads lead to Southend as far as I am concerned. My hon. Friend is proving to be a fantastic champion and successor of our good friend Sir David Amess. I would be delighted to visit. I welcome the great work of the companies she mentioned and believe very strongly that we need to improve skills through the package that we are taking forward.
May I start by sending my condolences and thoughts to all those who were tragically killed in Seoul, South Korea, at the weekend? I am sure that we will all be thinking of them at this time.
Education, formal and informal, is vital to developing a highly skilled workforce. Adults with neurodivergences such as autism or attention deficit hyperactivity disorder may require personalised support with their learning. What assessment has the Minister made of the efficacy of the support currently in place, and what steps are the Government taking to improve it?
Skills and education are a devolved matter. I echo the hon. Lady’s worthwhile words about South Korea. Obviously, great work is being done in youth hubs in particular, which I recommend to her.
(2 years, 6 months ago)
Commons ChamberIf the hon. Lady writes to the Department, whether to me or to the Secretary of State direct, we will look into those specific examples, ensure that they are addressed and get a decent answer to her on the specific problems. However, I cannot give a generic answer today.
According to the Child Poverty Action Group, each month some 4,300 households in my constituency are receiving an average of £57 less than they are entitled to because of automatic deductions from their universal credit, and that affects about 3,700 children. What action is the Department taking to reform the deduction system so that innocent children are not disadvantaged?