Cost of Living Increases: Pensioners

Matt Rodda Excerpts

Monday 21st March 2022 Commons Chamber

[Matt Rodda (Reading East) (Lab)]

It is a pleasure to sum up in today’s important debate on behalf of the official Opposition.

I would like to start by thanking Members from across the House who have spoken in today’s debate. I thank the hon. Member for Kilmarnock and Loudoun (Alan Brown) for pointing out the pressure on pensioners. The hon. Member for Amber Valley (Nigel Mills) spoke about the need for more Government help, which I thought was telling from a Government Member. My hon. Friend the Member for Lancaster and Fleetwood (Cat Smith) spoke movingly about the high energy costs for residents living away from the gas grid. The hon. Member for Darlington (Peter Gibson) talked about the need for a long-term plan for pensioners. My hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams) talked about the pressure on disabled people—obviously, many pensioners are disabled. The hon. Member for Broadland (Jerome Mayhew) talked about the cost of living crisis. My hon. Friend the Member for Cynon Valley (Beth Winter)—I hope I have pronounced her constituency correctly—spoke about the need for urgent help for pensioners.

My hon. Friend the Member for Liverpool, West Derby (Ian Byrne) talked clearly about the way that pensioners are living in poverty in his seat and across the country. My hon. Friend the Member for Kingston upon Hull West and Hessle (Emma Hardy) spoke particularly movingly about a whole generation of pensioners. That brought to mind figures from my childhood, and I am sure that we were all touched by her speech.

The hon. Member for North Shropshire (Helen Morgan) spoke about her local pensioners, and the hon. Member for North East Fife (Wendy Chamberlain) talked about pensioners having to choose between heating and eating. The hon. Member for Leicester East (Claudia Webbe) spoke about pensioners having to pay more to keep warm, and my hon. Friend the Member for Liverpool, Riverside (Kim Johnson) mentioned the real-terms cut to the state pension. Finally, my hon. Friend the Member for Luton South (Rachel Hopkins) spoke about the most vulnerable people being left to suffer by the Government.

As my right hon. Friend the Member for Leicester South (Jonathan Ashworth), the shadow Secretary of State, said, pensioners who have worked hard and paid in all their lives now face an unprecedented cost of living crisis. Food prices are up, energy prices are up and the cost of living is going up. The cost of living is a crisis made in Downing Street, but, sadly, it is felt on every street across this country. Pensioners are at the sharp end, facing the inevitable choice of having to pay for heating or eating. Not since the 1970s have pensioners faced a fall in their standard of living as great as the one that faces them in the next few months.

As I am sure we all agree, the recent events in Ukraine have been absolutely shocking. However, this cost of living crisis predates Putin’s war and his vicious attack on the Ukrainian people. The atrocities unfolding in Europe have brought into stark relief the need for the UK to radically address our energy security. However, it was clear in the autumn that food and fuel prices were rising steeply, yet the Government actually made matters worse, despite all the warning signs. The Prime Minister and the Chancellor decided to break the pension triple lock, breaking their manifesto commitment and betraying the people who are now struggling to pay their weekly food bills.

To add insult to injury, the Government failed to cut energy bills even when it was clear that a windfall tax would have provided the cash to ease heating bills for pensioners. Energy giants are enjoying record profits and see their companies as a “cash machine” at the same time as pensioners face the toughest of choices. We have to ask ourselves: what do the Government have against pensioners? Why is the plight of our pensioners not worthy of intervention by the Government? How can they do so little when we know the consequences will be so dire for so many older people?

Perhaps the Prime Minister and the Chancellor were distracted by the Government’s internal instability following the revelations about parties at No. 10 during last year’s lockdown. Or perhaps they just failed to grasp what it is like to cope on a modest income, as many colleagues mentioned so eloquently today. For whatever reason, I am afraid that the Government have simply failed our pensioners at the very time when pensioners most needed their help.

My right hon. Friend the shadow Secretary of State summed up well the sorry state that we find ourselves in today. Two million pensioners are living in poverty and that number will only grow because of the choices made by this Government. Some 1.4 million older people are fuel-poor. The scrapping of the triple lock has robbed pensioners of £30 a month, which is a significant amount for people on a fixed income. Energy bills are rising by 54% already and are likely to increase by a staggering further 25% in October. Some 1.3 million working pensioners will be dragged back into taxation though a national insurance rise that will pick their pockets to fund a health and social care levy.

Pensioners are being hit very hard.

Today’s debate has been an important opportunity to raise the very serious cost of living crisis now facing our pensioners.

[Alex Sobel]

Will my hon. Friend give way?

[Matt Rodda]

I am afraid that I am out of time. Every Member of the House will have constituents for whom the next few months will be filled with worry about bills. We owe so much to our pensioners. They have worked so very hard and paid in all their lives, raised their families and given so much to our communities. So far, the Prime Minister and the Chancellor have failed to listen to pensioners and they have failed to take any meaningful action to help them at this very difficult time. Theirs is a record that they should be ashamed of: the state pension cut; the triple lock abandoned; energy bills up; food bills up; and pensioner poverty up.

The Minister now has a chance to set out what real help the Government are going to offer our pensioners. I hope that he takes this opportunity to show that the Government listen and understand. He has the opportunity, here and now, to give pensioners peace of mind in their most desperate hour of need. Pensioners need to know that help is available. We need urgent action now—please. It is clear that only Labour will help older people, and I commend the motion to the House.

[Mr Deputy Speaker (Mr Nigel Evans)]

I have heard “Cynon Valley” pronounced in so many different ways over the past 30 years. You pronounced it perfectly.

Oral Answers to Questions

Matt Rodda Excerpts

Monday 21st March 2022 Commons Chamber

[Mr Speaker]

I call the shadow Minister, Matt Rodda.

[Matt Rodda (Reading East) (Lab)]

Pensioners who have worked hard and paid in all their lives face an absolutely enormous increase in the cost of living. Food prices are up, the cost of heating is going up and the cost of living as a whole is going up. This huge increase in inflation was clear before the invasion of Ukraine and it is crystal clear now, yet so far the Government have only come up with a buy-now-pay-later scheme for heating bills, so I would like to ask the Minister: just when will the Government start listening to pensioners and when exactly will they show even a shred of understanding of the dreadful situation facing our pensioners at this time?

[Guy Opperman]

The hon. Member will be aware that we raised state pension by 2.5% this year, when we did not need to do so, and it is going up by 3.1% in April, on top of which there is the support from the Chancellor with the £9 billion scheme set out only a few weeks ago. He will also be aware that huge efforts are being made to ensure there is take-up of the support benefits, which definitely assist. There is over £5 billion of them, but we want much more to be taken up.

Pensions Guidance and Advice

Matt Rodda Excerpts

Tuesday 1st March 2022 Westminster Hall

[Nigel Mills]

It is not the Minister’s fault on this occasion.

I do not think the main topic that I am proposing today is one that divides us. I think we would all accept that the problem is that we have a hugely complex pension system. Most people do not really have any understanding of how it works or what their options are, and far too few end up receiving advice or guidance before taking difficult decisions, having probably saved for 30, 40 or more years. They get to the end point and, sadly, do not always understand what they are doing. The huge risk of that situation is that they make a terrible mistake that they could have avoided, which has a detrimental impact on their retirement and reduces their quality of life in their last few years. The real question is what we can do to improve that situation.

We are not here today to talk about the level of pension saving, which is a hugely important topic but one for a different day. We are talking about what we can do to help people who get to the end of their saving journey to get the outcome that they want—the best outcome that they can have with the money that they have. I am not here to criticise auto-enrolment, which has been a huge success. It has hugely improved the situation for many people in work and at least gives them something to worry about when they get to retirement, whereas that would not have been a problem a decade ago. Millions of people would not even have had a pension pot to be thinking about.

Equally, I am not here to criticise the pension freedoms reforms that took place almost exactly seven years ago, which have been a huge success and are hugely welcome. In its recent report, the Works and Pensions Committee accepted that they should stay in place. However, we have to accept that we have a contradiction between the two systems and that we have chosen a way to get people to save pensions by almost tricking them into it, so that they do not realise. They just get defaulted in and do not have to engage, although we wish they would. At the end of that, we now have a hugely complicated system with lots of choices that people are not prepared for, and we need to find a way to prepare them for that, either at some point in their saving journey or when they get to retirement.

This is a problem that is actually getting worse. Statistics show that fewer people than before have taken advice over the last years, and the problem is getting worse because we have more and more people reaching retirement who will not have any defined benefit pension that can provide the majority of their retirement income. In order to ensure their quality of life in retirement, more and more people will be relying on their defined contribution savings and on the decision they make when they hit the age of 50 and get the chance to take a lump sum. It looks like a hugely attractive way to solve their present financial woes, but they do not realise that it makes their future woes a lot worse, having lost a quarter of what they had, which probably was not enough in the first place.

During the pandemic, a lot more working people over a certain age have now decided that they actually quite like being furloughed and have wondered whether they can eke out their retirement savings over a longer period by using the lump sum and not going back to work. It may be a terribly bad decision that they are making. I think the Government are now waking up to the fact that we have lost hundreds of thousands of people from the workforce who could come back but who would quite like not to do so. I am sure we would all like to be able to afford to retire early, but not if that gives us huge financial problems in later life.

[Matt Rodda (Reading East) (Lab)]

I am grateful for the hon. Gentleman’s comments about the importance of pension savings and for his very serious approach to this issue. Does he agree that there is a contradiction here with what the Prime Minister has said about the growth in employment? He may have been somewhat mistaken and inadvertently given a misleading impression that the number of staff on payrolls has increased, but the overall size of the workforce has dropped, as the hon. Gentleman mentioned.

[Nigel Mills]

Yes, I think that is right: employment has grown, but participation has reduced. I have spent many years arguing about whether people are in fake self-employment—not really self-employed but being made to be, or pretending to be, because their employers are being unscrupulous or trying to get a tax advantage. Shifting people who were not really self-employed into thinking that they are employed is quite a good outcome—it makes the data more reasonable. The hon. Gentleman is right: we have lost hundreds of thousands of people who could still be working. When there is a workforce shortage, any measure that could get people from those cohorts back into work would probably be good for the majority of them and for the economy as a whole.

To return to today’s topic, Her Majesty’s Revenue and Customs data tells us that £45 billion was taken from pension pots in the first six years of the pension freedoms policy. Some 3.7 million defined-contribution pensions were accessed in that period, and over 2 million of those pots were cashed in full. This is not a problem for the future when defined-benefit pensions start to run off. It is a situation we have seen over the first five years of pension freedoms. It is happening now. Hundreds of thousands of people are accessing their pension pots without knowing what they are really trying to do.

It is worth quickly noting that we still have a problem with the data. The data that we have shows pots being accessed, not pots being accessed by individuals. We do not know whether the data shows one individual accessing 15 different pension pots from 15 different jobs, or 15 different individuals accessing one pension pot each. If we are to have a proper understanding of the situation, we need better data, so that we know what people are doing and what outcomes they are facing. We raised that as a Select Committee on multiple occasions, but we still cannot seem to get that data to be gathered.

The reason for asking for this debate—and what I would quite like the Minister to recognise when he wraps up—is that we have a large problem here. I am sure that the Minister does recognise that; he has said so on many occasions. I would also like the Minister to set out a direction of travel for the regulators and industry. We know that the take-up of pension advice and guidance is far too low—I will come on to the data in a little while. The Minister has made some welcome steps, which will come into force in a few months’ time, but even those steps will not fix the problem or take us to anything like the level that we need. I know that we do not like targets or benchmarks, but perhaps the Government could set an aspiration, an indication of what good practice is, or what the level should be. We need to set an aspiration for the regulators as to what the level of take-up of advice and guidance should be, and we need a plan for how we get there. I will talk through a few ideas about how we could bridge that gap.

If Parliament does not set the regulators a target, benchmark or aspiration—call it what you will—they will flounder, flap around and go round in circles. We need to be clear: “Here is where you need to get to, and here is how long you have to get there; if you do not get there, we will have to take some different measures of our own.” We had a problem during the debate on the Pension Schemes Bill last year or the year before. Amendments were tabled that called for various solutions, and the fact that they were not adopted means that people think that Parliament does not actually want them, whereas that is not how parliamentary debates work. We move amendments to float ideas, and we debate them. The fact that they are not voted on does not mean that we did not want them; it just means that we think that there may be other ways to achieve them. I hope that we can send a strong message today.

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[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

It is a pleasure to serve under your chairmanship, Ms Bardell. I will not repeat the excellent points made by the hon. Member for Amber Valley (Nigel Mills), but I echo many of them. The need for good pensions advice is real and pressing. Nobody jumps out of bed in the morning wanting to think about their pension—apart from everyone here, of course, who did that this morning. It is not top on their list of priorities, but it really matters.

Pensions advice matters more as we see the impact of the increased cost of living. More pensioners are falling into poverty and having to choose between heating and eating. The need for an adequate pension is even more pressing. My interest in this debate comes primarily from my role on the Treasury Committee, where I have taken a particular interest in this subject. In my intervention on the hon. Member for Amber Valley, I referred to the letter from the Financial Conduct Authority to the Chair of the Select Committee of 16 February about what a stronger nudge could be, and about trials to improve take-up of impartial pensions advice. My only criticism was the sense of a lack of urgency. There was a lot of, “Well, we are still in the design phase,” “We could try this,” and “We could try that.” There was nothing concrete.

One point that I would love the Minister to take away is that we need to push the FCA and say, “We want you to firm this up. What exactly will you do? When will these trials take place? When will you have a deadline for designing them?” It feels as though they are using warm words but not taking concrete action.

Obviously, pension decisions are complex, even for the well-informed saver. I have heard that many of us will end up with four or five pensions before we reach retirement, and people are having to try to work out the best advice when they are dealing with these many different pension pots. Gone are the days when people stayed in one career all their life and then retired. This added complexity really matters. I did a Facebook Live session on the subject and, believe it or not, members of the public did engage and were quite interested in the issue. They were particularly interested in how they find out where their missing pension pots were. That was another question that came up, which shows that people do not truly understand this subject.

As I mentioned in my intervention, the lack of high-quality advice leads to people being defrauded, which is heartbreaking. They are not just receiving poor pensions advice; they are being tricked and defrauded. That makes getting impartial advice even more important. We can say to people, “Don’t listen to these charlatans who are trying to steal your pensions. Go to this impartial advice service.” I truly do not think many people know that it is there. The feedback from people who use it is that it is a very positive service that gives really good advice. It makes people feel more informed about how to make their decisions. The difficulty, of course, is that if someone does not know the service is there, they will not go to it for advice, and then they are much more vulnerable to making poor decisions.

I want to mention issues that I will talk a lot about in future: the poverty premium and the hidden costs of poverty, and financial inclusion. It is relevant to mention them in this debate on workplace pensions because the Financial Inclusion Commission estimated in January last year that around 8.5 million workers were excluded from automatic enrolment in workplace pensions because they worked in the gig economy, were part time, and earned too little. Those workers tend to rent their homes,

“and will have little in the way of savings or other assets to draw on in retirement…In addition, employees who are eligible for automatic enrolment may not engage because they…don’t feel they can afford to make contributions out of their income”.

That is another of my concerns. I am hearing from residents who are choosing to opt out of pension contributions because of the cost of living. They do not feel they can afford things day to day, so they do not want to continue making pension contributions, and that is a huge worry that brings to the forefront the fact that everybody needs advice when making such decisions.

Nurses tell me that they are opting out of their pensions. I have tried desperately to convince them that the NHS pension is great, and have asked them to please stay in it, but people are deciding to opt out right now. Partly, they do not fully understand the consequences of the decisions that they are making today. That is why we need to ensure that there is excellent advice. I see that my right hon. Friend the Member for East Ham (Stephen Timms), the Chair of the Work and Pensions Committee, is here, so I will not go into the detail of the Committee’s recommendations.

[Matt Rodda]

It is good to see you in your place, Ms Bardell. My hon. Friend is making an excellent point about the very real difficulties facing so many families. Does she agree that she is, in part, referring to the wider cost of living crisis and its worrying knock-on effects on many, many families? They feel forced to make these terrible decisions because they are struggling to get to the end of the week as a result of rising heating and fuel bills.

[Emma Hardy]

My hon. Friend is absolutely right. The message that we would like to get to those who are making savings is: “Do not do it by not contributing to a pension, because you will need that money in future.” That is why we need important, impartial advice.

I am not a pensions specialist. I am just somebody with a keen interest in the subject because I see what happens to too many people when they go into retirement without the pensions that they need, and I see what happens when people are given poor advice and are defrauded. People just do not understand. They choose to take the lump sum today, not realising it pushes them into a higher tax bracket, and not realising the consequences for their future income. They just do not fully understand all the decisions. I truly believe that if we give people better advice, they will make decisions that mean we will, hopefully, have fewer people in poverty in future.

As I said, I was disappointed by what the FCA said in evidence to the Treasury Committee. We need the firm and clear message from the Government that they will get on with the trials. They should not spend any more time messing around with them. That is a priority; it would help get the situation moving more quickly.

--- Later in debate ---

[Matt Rodda (Reading East) (Lab)]

It is a pleasure to serve under your chairship, Ms Bardell. I pay tribute to the hon. Member for Amber Valley (Nigel Mills) for what I thought was a very thoughtful and knowledgeable speech, which has left us all with a great deal of food for thought.

I also thank the Chair of the Select Committee, my right hon. Friend the Member for East Ham (Stephen Timms), and Members across the House, in particular my hon. Friend the Member for Kingston upon Hull West and Hessle (Emma Hardy) and the hon. Members for Strangford (Jim Shannon), for Kilmarnock and Loudoun (Alan Brown) and for Glasgow South West (Chris Stephens). In addition, the hon. Member for Grantham and Stamford (Gareth Davies)—I beg his pardon—spoke with great knowledge of the sector; I appreciate his detailed explanation.

I do not want to completely rehash or repeat points that have been made by colleagues, but I want to focus the Minister and ask him for a response on one or two very important things. First, however, we should acknowledge, seven years on from their introduction, that while increased pension freedoms have brought greater flexibility, they have also resulted in a potentially greater degree of risk. Although advice services such as Pension Wise have played an important role in making advice more available, the service’s own figures show that just 14% of savers are accessing that advice. That really is not good enough.

Clearly, most people will make a decision about their pension—a decision of this scale—only once in their lives, so it is staggering that only 14% of people are receiving appropriate advice from Pension Wise. Imagine if only 14% of people were seeking advice for any other major financial decision—obviously, alarm bells would be ringing in Ministers’ offices and across the relevant sector. We have to reflect on that, so I hope that the Minister will try to address some of the thoughtful and well-made points raised by the hon. Member for Amber Valley and others.

I also want to draw the Minister’s attention to the fact that the same points have been raised by a number of other voices outside of the House today, so I hope he will go into this issue in some detail. I hope, in particular, that he will address the point made by the hon. Member for Amber Valley that many of the people who are not seeking advice have smaller pension pots and possibly less financial experience, and may need a greater degree of support, while those seeking advice appear to have larger pension pots and, arguably, may have a bit more financial experience. That seems to be the wrong way around.

I hope that Government policy can focus on that and, in particular, that they will look at some of the behavioural points—the nudges—and ways that they may legitimately assist people in this important matter. The Chair of the Select Committee also raised some interesting and thoughtful points on the issue of the potential trial service. I hope the Minister will comment on those.

I appreciate that time is limited, so I want to draw the Minister’s attention to another key area; I hope he will update the House on what the Government intend to do on this matter. The flip side of the lack of advice is the very sad and quite worrying growth in the number of scams; it is interesting that the two things have happened at the same time. While organisations such as Age UK have produced guidance to support those who may be vulnerable, it is really the role of Government to do much more on this important issue. Again, as with the issue of the lack of advice, the question of scams has been highlighted by the official Opposition, the Work and Pensions Committee, former Ministers and other respected figures such as Martin Lewis.

The pensions industry estimates that more than 40,000 people may have been cheated out of £10 billion-worth of pensions savings since freedoms were introduced in 2015. Action Fraud has reported that pension scams are becoming one of the UK’s most common types of fraud. These scams are often harder to spot than expected, even for those with good IT or tech skills. Research by Citizens Advice showed that one in eight people who said they were confident with technology found it difficult to spot a scam. However, it is possible to take action against that sort of fraud; as the Minister knows well from his involvement in the passage of the Pension Schemes Act 2021, the Government have taken action on telephone fraud, which is a related type of scam.

[Jim Shannon]

The hon. Gentleman is absolutely right. If someone is approached by a person with a scheme to improve their pension that looks too good, it probably is too good. Be careful—if someone promises you the world, the stars and the moon, there is something wrong.

[Matt Rodda]

The hon. Gentleman makes an excellent point; we do need to apply common sense to these very important matters. As I was saying, the Pension Schemes Act made it illegal to cold call and offer advice, in an attempt to reduce the number of telephone scams. Obviously, there are other forms of scams.

[Emma Hardy]

My hon. Friend is making an excellent speech. I think everyone would accept that the sophistication of the fraudsters is developing day by day, and that both legislation, and police and the Government action, is playing catch up—as it always will. Therefore, there is an urgency to deal with this; while the Government might have dealt with the telephone matter, scams are now more likely to be online or via other avenues. We need to make this a priority.

[Matt Rodda]

My hon. Friend is absolutely right that, sadly, technology and the ability of fraudsters is racing ahead. We need to take far more urgent action to tackle these awful problems. In fact, she has anticipated my next point; I hope that the Minister will clarify the Government’s position on this. I understand that he may be interested in the possibility of this action being included in the Online Safety Bill, and I ask him to update us on the discussions he has had with his colleagues. That Bill offers all sorts of possibilities to tackle these dreadful frauds. I hope that the Government will take determined action to tackle those problems, given that they have legislation that could address them in an appropriate and timely manner.

I will briefly mention some concerns about the roll-out of the dashboard and one or two other tools. Like Members across the House, I welcome the Government’s approach in attempting to devise the dashboard, and I recognise the need for greater information, but I understand from speaking to the industry that there are a series of technical problems. We should not let those delay the process too much. I ask the Government to take on board the industry’s views on that, and to be careful to ensure, as it is rolled out, that the dashboard is robust. I see that the Minister is nodding; I am sure that he will want to elaborate on that. It is important not only to achieve the dashboard, but to make sure that it is a high-quality product that offers the hoped-for level of reassurance and advice.

It is fair to say that the Government are taking rather small steps in the right direction, but they need to do so much more on the issue of advice. I hope that the Minister will elaborate on those points and reassure us that he is addressing this issue with the level of energy that is needed.

United Nations Convention on the Rights of Persons with Disabilities

Matt Rodda Excerpts

Thursday 24th February 2022 Westminster Hall

[Matt Rodda (Reading East) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Stringer. I thank everyone who has contributed today. I highlight in particular the work of the hon. Member for Motherwell and Wishaw (Marion Fellows), and congratulate colleagues from across the House, including my hon. Friends the Members for Battersea (Marsha De Cordova), for Vauxhall (Florence Eshalomi) and for Oldham East and Saddleworth (Debbie Abrahams), and, indeed, the hon. Member for Strangford (Jim Shannon), on their contributions. I am grateful to them for raising such important issues.

I also pay tribute both to disabled people and to the organisations that represent them. In particular, I thank those who carry out important work in the constituency of Reading East, which I have the privilege of representing, both in the town of Reading and in the neighbouring town of Woodley.

It is important that the decisions we take in this House are led by disabled people and experts, and informed by experience. As we have heard, in 2009 the UK pledged to follow the United Nations convention on the rights of persons with disabilities, on the basis that it protects and promotes the human rights of disabled people, including by eliminating disability discrimination, enabling disabled people to live independently in the community, ensuring an inclusive education system and that disabled people are protected from all forms of exploitation, violence and abuse. I am glad that that there is agreement across the House on that, and we are right to seek to take it forward. I believe that we must go much further in our efforts to uphold human rights and equality for disabled people, and that is why the UN convention on the rights of disabled people should now be incorporated into British law.

I should also add that I am proud of the last Labour Government’s record on improving the lives of people with disabilities, whether in cutting NHS waiting times, introducing free bus travel—a subject very dear to my heart, as those who know me well may remember—and introducing the Equality Act 2010. We know that well-designed policies, implemented and resourced well, and delivered properly, can transform the lives of disabled people.

I also pay tribute to the individual efforts of many Ministers and Government staff and Back Benchers during the years of the coalition and Conservative Governments. However—and I would like the Minister to reflect on this—there is so much more we should be doing.

Figures published last month show that 1 million more disabled people are trapped in hardship than were a decade before. Data from the Department for Work and Pensions reveal that 3.8 million disabled people live in poverty. We have heard eloquently from colleagues today about the pressure that that puts on disabled people and their families. I am sure that that is a trend that colleagues across the House would like to reverse.

As the hon. Member for Motherwell and Wishaw said, it is worth considering that a recent report by the Oxford University disability law and policy project and the Bonavero Institute of Human Rights found that there has been a

“failure of the government to implement properly its legal duties with respect to the rights of people with disabilities.”

That is set against the backdrop of a significant lack of appropriate support for disabled people during the pandemic. Almost 2 million ill and disabled people did not receive any additional support, despite the fact that disabled people on average face additional costs of £583 per month. In addition, as was said earlier, while universal credit was temporarily increased by £20 a week—we supported that decision and indeed campaigned for it to continue—it is important to note that other social security support such as the employment and support allowance and the jobseeker’s allowance were not increased. The pandemic has hit everyone in our community, but it is wrong that it should have a particularly hard impact on disabled people. I am afraid that that lack of support is part of a wider picture of the Government failing to give disabled people the support that they need.

I appreciate the point you made earlier, Mr Stringer, about the sub judice nature of some of the issues with the national strategy for disabled people, so I will try to stick to the ruling that you rightly made, but I will say that there were two years of delay before the strategy was published in July 2021. Even when it did arrive, it appeared not to be the bold strategy that so many people had looked forward to, but more a series of unrelated announcements, with only £4 million of extra money pledged for disabled people, which amounts to just under £30 for each disabled person in the UK, a relatively modest amount. Disabled people and the organisations representing them said that they felt excluded from the process and had not been consulted when the strategy was drawn up.

That is all deeply disappointing. The Government could and should do so much better. I ask the Minister to look at that again in much greater detail with her colleagues—I appreciate that it is not her area of responsibility—and, collectively, to change their approach fundamentally, to give disabled people the support that they so clearly need.

Eliminating disability discrimination, enabling disabled people to live independently in the community, ensuring an inclusive education system and that disabled people are protected from all forms of exploitation, violence and abuse must be a priority for all of us. The Government should now incorporate the UN convention into UK law. That important legal change will have real effect in the everyday lives of disabled people.

It has been a privilege to speak today and to contribute to this important debate. Once again, I thank colleagues from across the House who have also contributed, and I thank disabled people and the organisations that represent them. I hope that the Minister will take on board the points made by colleagues from across the House and respond by letting us know how the Government plan to address these very serious issues.

Draft Pneumoconiosis etc. (Workers' Compensation) (Payment of Claims) (Amendment) Regulations 2022 Draft Mesothelioma Lump Sum Payments (Conditions and Amounts) (Amendment) Regulations 2022

Matt Rodda Excerpts

Wednesday 23rd February 2022 General Committees

[Matt Rodda (Reading East) (Lab)]

It is a pleasure to serve under your chairship, Dr Huq. I will say just a few brief words in relation to my local mesothelioma group in Berkshire, and I know that the hon. Member for Windsor would share some of my sentiments about our local community in the county. I pay tribute to my hon. Friend the Member for Ellesmere Port and Neston, and I echo his support for a wider look at the scale of the payments. I ask the Minister again to consider that. I also pay tribute to the hon. Members for Glasgow South West and for Arfon for their very thoughtful and powerful accounts.

I pay tribute to the members of the Berkshire mesothelioma group, because until I met them, I had not fully understood the scale of the problem. Although colleagues have rightly addressed the issues with very specific industries, the problem of asbestos is everywhere. It is in this building and in houses, schools and small businesses across the country, and it was quite shocking to come across families who had lost a loved one to these dreadful illnesses. Some of the accounts that I heard from the local group were very moving and troubling, and it is perhaps worth briefly reflecting on the way in which some of these illnesses can occur. It is also worth remembering that the number of people suffering from these appalling illnesses may well increase in the years to come because of the very long incubation period, which is part of the problem with some of these industrial illnesses.

[Hywel Williams]

Equally shocking is the fact that the dangers of asbestos have been known within the industry since the 1920s. In my constituency, however, a factory was built in the early ’60s to make brick linings. I remember one of the workers suffering from mesothelioma telling me that they would make snowballs out of loose asbestos during lunch breaks, so the dangers were known but not acted on for many years.

[Matt Rodda]

The hon. Gentleman makes an excellent point. These are dangers that were known but which, sadly, were not acted on. The stories about workers and others playing with asbestos mistakenly, without having full knowledge of this material, are widespread. I have been told similar stories about workers in a power station in London where they had snowball fights with this material, and it is absolutely awful to hear such accounts.

I will mention a couple of examples of the sorts of tragedies that have occurred in our community in Berkshire, involving residents from both Reading and nearby areas. Workers worked on the railway and in other transport roles where, as my hon. Friend the Member for Ellesmere Port and Neston rightly said, asbestos was used to insulate materials in ships and trains, and for brakes in cars. I have heard stories of mechanics in small garages blowing the brake dust from disintegrating brake pads, without realising the horror of what was near to them. One tragic case is of a gentleman who sadly did not live to be one of my constituents, but who was a resident in the Reading East constituency and a young apprentice in the 1980s. He was apparently told by somebody at work, “Go away and saw up these pieces of cladding.” He sawed up the asbestos and had no indication of the scale of risk that he faced. When we hear such accounts, it is deeply moving and harrowing. It tells a very powerful story and urges action from all of us in a position of responsibility.

I will not take too much of the Committee’s time. Although I welcome the increasing payments, I urge the Minister and her colleagues across Government to look at what can be done to improve the health and safety regime in the UK so that we have better prevention and better understanding of emerging risks from new technologies, as well as from existing technologies which are perhaps better understood now, so that we never, ever go through this nightmare again. As we have heard, it has wrecked so many lives, and it has also imposed huge costs on businesses and the public sector. I am very aware, given my previous life as a civil servant in the Department for Education, of the cost to local authorities and central Government of retrofitting schools and taking asbestos out of schools. There could be huge costs in removing it from this building. Unfortunately, many employers and other organisations now face huge costs in making buildings safe after mistakes made decades ago.

I hope that, as a society, we can understand dangerous materials better in future, avoid unnecessary mistakes and the misery they cause, and move on, learn and be much better at managing those sorts of risks.

Draft Occupational Pension Schemes (Collective Money Purchase Schemes) Regulations 2022

Matt Rodda Excerpts

Monday 21st February 2022 General Committees

[Matt Rodda (Reading East) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Mundell. I refer colleagues to my declaration in the Register of Members’ Financial Interests. I thank all those who have contributed to the development of these important regulations, including the Minister, the Department, the Royal Society of Arts, the pensions industry, employers and trade unions. I pay particular tribute to our late colleague Jack Dromey. It was through his enormous efforts that this work was developed, and he worked exceedingly closely with the Minister. I am grateful for the cross-party working on this matter; pensions are an important and long-term public policy issue, so it is right that we work on them together wherever possible.

As the official Opposition, we do not oppose these regulations, as they will begin the process of allowing some employers to take advantage of a new system that, as the Minister mentioned, has huge benefits. If we act with care and diligence, it could help employees in certain sectors to retire with more security and comfort. When done properly, CDCs offer a cost-effective way of saving for retirement by making pension saving a shared process, as we heard earlier. However, we should be prudent, and I would like to place on record a number of issues that we hope the Minister and the Department will address in the fullness of time.

First, it is important to make the intentions of the CDC process as clear as possible. Colleagues will know that, in the pensions world, uncertainty can be compounded over time and lead to costs or unnecessary risk. That will mean ensuring that the further regulations that the Government hope to bring through in March are watertight.

Secondly—I believe the Minister may wish to respond on this point—some experts have raised concerns with me about the use of master trusts as a model or template for CDCs, when they might not be appropriate in all circumstances. Some of the tests to measure a scheme’s viability, for example, might not apply in the same way. While this is a deeply technical issue, it is important to get it right, so I am sure the Minister may have more to say, or will wish to write to me about this matter in more detail.

Thirdly, I hope the Minister will provide assurances today that there will be enough time and opportunity for experts, stakeholders, politicians and the Department to review CDCs as they develop and to tackle any issues with what are significant changes.

Finally, I thank everybody concerned in the process once again, because this is an important step forward, as the Minister mentioned. There is an element of consensus about this, and I hope that these changes provide worthwhile opportunities for pension savers and pensions in the future.

--- Later in debate ---

[Guy Opperman]

I thank colleagues for their responses and their support for these regulations. This is very much an iterative process, so I accept the point about needing to review CDCs. I am often criticised on the one hand for not bringing this forward quickly enough and on the other for going too slowly. In this case, I think the Government are doing the perfect thing of trying to navigate a course that progresses the main form of CDCs. We will move to multi-employer CDCs in the latter part of this year, going into next year, and will move at a sufficient pace that we feel is appropriate. There will definitely be an opportunity to respond to these regulations and the draft code, which I strongly urge colleagues and the industry to read.

We are inventing a brand-new way of providing pensions that is genuinely of assistance to businesses, big employers and, crucially, employees—it is very much supported by unions, for example, and gives unions a real role in supporting businesses and employees—but it will also work for multi-employer schemes on an ongoing basis.

We used master trusts as a broad base of what we were trying to do, and while that has always been the case, there is no question whatever but that this is different from master trusts. I am happy to write to the hon. Member for Reading East with a bit more detail on that, but this is certainly not a like-for-like model in any way whatever.

The hon. Member for Airdrie and Shotts rightly raised consumer protection, which is a challenge that I accept entirely. We have made great efforts to ensure proper communications. I have met repeatedly with Royal Mail and the CWU, for example, and there is no question in my mind but that Royal Mail employees, who are heavily unionised, are the most informed about this potential pension change of any employees up and down the country, because the engagement around Royal Mail post offices and postal centres around the country has been outstanding. I have been everywhere, from Norwich sorting office to Barrhead, all over the country, to meet with people, talk with them and see the work being done. However, I accept that this is an ongoing challenge.

Automatic enrolment, a wonderful Conservative/coalition Government invention that we very much continue to laud and applaud, is a transformation that has benefited 10.5 million people across all our constituencies. The hon. Lady rightly raised the 2017 review of automatic enrolment review; the Government will bring that in in the fullness of time. I also make the simple point that automatic enrolment is there to expand and enhance access to savings to so many people. Among young people and women, for example, less than 40% had an occupational pension; the figure is now well above 80%. That is a transformation since 2012, with a total of 10.5 million people benefiting.

[Matt Rodda]

Perhaps the Minister would also like to thank the previous Labour Government for its work on auto-enrolment, as it was an idea developed by Gordon Brown originally and implemented, as he said, by later Governments.

[Guy Opperman]

There is no question but that this idea started with the Turner commission and the Brown-Blair Government—not a Government, I feel, that is very supported by the present Labour party—but we are very much behind this innovative change, and obviously we welcome all converts to innovative pension change. I totally accept that this is a 20-year policy. It has a stage to go, which we will be responsible for, but it is also, like so many things in pensions policy, something that transcends parties and Governments, because we make policy for 30 to 40 years, and this a good example of that.

Question put and agreed to.

Social Security and Pensions

Matt Rodda Excerpts

Monday 7th February 2022 Commons Chamber

[Matt Rodda (Reading East) (Lab)]

I start by thanking all those who have spoken in tonight’s debate. My hon. Friend the Member for Westminster North (Ms Buck) set out the scale of the cost of living crisis and the need for more targeted support. We heard a series of interesting points from a number of hon. Members. I thank my right hon. Friend the Member for East Ham (Stephen Timms), Chair of the Work and Pensions Committee, and my right hon. Friend the Member for Hayes and Harlington (John McDonnell); my hon. Friends the Members for Poplar and Limehouse (Apsana Begum), for Oldham East and Saddleworth (Debbie Abrahams), for Cynon Valley (Beth Winter), and for Leeds East (Richard Burgon); and the hon. Members for Waveney (Peter Aldous), for Glasgow East (David Linden), for Amber Valley (Nigel Mills), for North East Fife (Wendy Chamberlain), who made some interesting points, for Strangford (Jim Shannon), and finally for Kilmarnock and Loudoun (Alan Brown).

There is no doubt that pensioners and families across this country now face a severe cost of living crisis. Food prices are up, gas prices are up, the cost of living is going up. The Bank of England says that households must brace themselves for the biggest drop in living standards in 30 years. Millions of people now face the choice between heating and eating. Pensioners, children and those in greatest need will, sadly, be hit hardest, yet so far, the best this Government can do is offer an inadequate “buy now, pay later” scheme. To make matters worse, the Chancellor and the Prime Minister are insisting on sticking with a national insurance hike that will hit working people and businesses hardest. Today, we have heard how the Government’s failure extends to pensioners and those who rely on essential benefits.

I do not want to repeat the points made by my hon. Friend the Member for Westminster North, and I understand that time is now limited, but in summing up I wish to focus on how Ministers are making this dreadful situation worse. The Chancellor could have raised a windfall tax to reduce energy bills, but instead he has chosen to protect the super-profits of the energy companies over the welfare of the nation’s pensioners and most vulnerable. The Government’s proposed council tax rebate may fail to reach those who need the most help. It is not clear how pensioners who do not pay council tax by direct debit because of their low income or who have other issues will receive this benefit. Dame Clare Moriarty, the chief executive officer of Citizens Advice, has said:

“Energy rebates are a buy now pay later solution which only provide temporary relief later this year. And linking financial assistance to Council Tax will result in a complicated lottery that means support is not targeted at people who really need it.”

The Government have also failed to deliver on their manifesto promise to insulate homes and have failed to support businesses with energy cost rises. In contrast, a Labour Government would have offered real solutions, including a one-off windfall tax on energy company profits that would help all fairly, and provide support for business and long-term investment to improve our energy security and home insulation.

We will not be opposing today’s up-rating order, but I want to make it clear that this is no solution to the wider crisis facing our pensioners. Pensioners were let down when the Government broke their manifesto promise and severed the earnings link component of the triple lock. They were also let down when the Government broke their manifesto promise to keep the TV licence free for over-75s. Almost a fifth of pensioners are living in poverty under this Government, and more than 1 million pensioner households are, sadly, missing out on pensioner tax credit, the take-up of which the Government seem to have done little to improve. I am also afraid that the DWP has underpaid pensions by thousands of pounds and been responsible, in some cases, for severe delays in payments. We know of some newly retired pensioners who have had to wait more than three months to receive their pension, which they have worked hard all their lives for. I am conscious of time, so I just want to sum up by saying that we face a severe cost of living crisis. Pensioners and families face a truly dreadful situation, yet the Government are failing to listen and failing to respond.

Pension Schemes (Conversion of Guaranteed Minimum Pensions) Bill (Morning sitting)

Matt Rodda Excerpts

Committee stage
Wednesday 2nd February 2022 Public Bill Committees

[Matt Rodda (Reading East) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Efford. I thank the hon. Member for Rutherglen and Hamilton West for her work on this important Bill. As has been said, the Bill has potential repercussions for millions of people’s pensions. We support the measures to simplify a complicated system and make it much fairer.

I will use my time today to ask a series of questions, which I hope the Minister will address. In particular, I want to ask him about communication, consultation, the requirement to notify HMRC and the wider imbalances between men’s and women’s pensions.

On communication, I have a fundamental question. How have the changes been communicated to those affected? Obviously, we are dealing with a large number of people, going back to the cohort who have been saving for their pensions from 1978. I am afraid that the Government do not have a good track record of communicating changes to the state pension. According to many commentators, previous changes to the pension age were poorly communicated, and more recently the Government have been criticised for their work on sorting out the state pension underpayment crisis. I realise that the Minister is trying to address that. The public deserve reassurance on those issues.

Automatic Pension Enrolment

Matt Rodda Excerpts

Wednesday 26th January 2022 Westminster Hall

[Matt Rodda (Reading East) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Dowd. I thank all colleagues for taking part in today’s debate. We have had a rounded discussion of this important issue, and it has been heartening to see so much engagement from Members across the House.

As I know colleagues appreciate, pensions are a very long-term policy area. The decisions we make today have profound effects over many years. Encouraging sustainable and sensible saving now makes for much better retirement in the future. It is therefore right that we actively explore ways to help those who could benefit from further opportunities to auto-enrol in pensions. We must work with businesses to understand their needs, and to build a system that is fair and sustainable for all. We should be ambitious and responsible at the same time, particularly in the years following the covid crisis.

Auto-enrolment has proven to be one of the most positive developments in recent memory for savers, and for securing people’s long-term prosperity. It has been transformative in encouraging millions of people to save earlier in their careers. That will dramatically improve outcomes later in life, as hon. Members have mentioned.

I remind the House that it was the Labour Government in 2008 who first introduced legislation on auto-enrolment—a contribution of which my party should be very proud. However, the measures have cross-party support, and I pay tribute to colleagues from across the House who mentioned that. It is important that we work together, and that we remember the contribution made by those in the other place, who also recognised the policy’s potential and helped develop it before it came into practice. More than a decade since its inception, it is natural that we look again at auto-enrolment.

In conversations with the pensions industry, I have heard experts call for us to consider lowering the qualifying earnings threshold and the minimum age requirement. The People’s Pension, for example, endorsed those proposals. It argues that millions of new savers would be created, many of whom would be women and people from ethnic minority backgrounds. The Association of British Insurers found that employees would be able to save an additional £2.6 billion a year if the earnings trigger was scrapped.

There is justification, as well as a desire in the sector, for policy makers to look at all available options. That is especially true in the light of the Government’s commitments in 2017 to reviewing the situation, and to getting workers to save early by considering removing the lower earnings limit and reducing the age threshold for automatic enrolment to 18 by the mid-2020s, as we have heard reiterated today. The deadline is approaching fast, so I ask the Minister to clarify what stage the Government have reached in their consideration.

I also ask the Minister to set out the work his Department has done to understand the wider implications of last year’s decision to freeze the earnings trigger and only modestly increase the upper limit of the qualifying earnings band. Understanding those consequences is important for tackling inequality and helping more workers to get into the habit of saving, as has been mentioned. Studies have shown that only 37% of female workers and 28% of black and ethnic minority workers are eligible for the scheme. Finally, I reiterate the importance of this debate, and thank colleagues from across the House for taking part. I hope the Minister will respond to the points made.

Oral Answers to Questions

Matt Rodda Excerpts

Monday 13th December 2021 Commons Chamber

[Guy Opperman]

With respect to my right hon. Friend, that matter has been decided in the courts on two occasions—in the High Court and in the Court of Appeal—and it is not proposed to change the policy.

[Matt Rodda (Reading East) (Lab)]

The Government have consistently failed to stand up for the interests of pensioners on modest incomes. Food prices are up, gas prices are up and electricity prices are up. The cost of living is going up. Yet despite this, the Government are refusing to cut VAT on fuel, even though they have had higher than expected VAT receipts from across the economy, which would allow them to do exactly that and offer much-needed help to pensioners. To make matters worse, the Government are also failing to increase the take-up of pension credit. When will they finally start offering real help to our pensioners?

[Guy Opperman]

That is a bit rich. When the last Labour Government were in power, the state pension was under £100; it is now going up to £185 going forward. It is almost double what it was before thanks to the triple lock introduced by this Government and the coalition Government. It is also very much the case that pension credit take-up is actually going up, not down. Over the two years of the pandemic, both the basic and new state pension will have increased by more than prices thanks to the cumulative effects of the Social Security (Up-rating of Benefits) Act 2020 and the Social Security (Up-rating of Benefits) Act 2021.