House of Commons (Administration) Bill

Debate between Melanie Onn and Paul Beresford

Wednesday 24th February 2016 Public Bill Committees

[Sir Paul Beresford (Mole Valley) (Con)]

It is delightful to serve under your guidance, Mr Evans, particularly as I am sure you are going to help us to get the Bill through quite speedily.

Normally at the end of such a Committee the Member in charge of the Bill thanks members of the Committee, the Chair and so on. I will do that now, as this is an opportunity to point out that, with the help of all Members, this Committee stage will be brief. We might break my record for a Committee, which is 23 minutes, if we proceed with great haste. I thank you, Mr Evans, the members of the Committee who have come along, and the Minister, who is in effect standing in for the Treasury. I particularly thank my hon. Friend the Member for Christchurch, who intervened at an appropriate stage of the Bill’s passage. The Committee will see his amendments as we proceed.

This is a little Bill to consolidate and amend provisions for the House of Commons Members’ Fund. I suspect that few Members who are not trustees will be aware of the fund—a number of members of this Committee are trustees, and the chairman of trustees is with us—other than noting a small deduction on their monthly Independent Parliamentary Standards Authority payslip. The fund was established before the second world war, when there was no parliamentary pension to help former Members who had fallen into financial difficulties. The fund has been used to top up pensions for the widows of Members who left the House when widows received a lower entitlement—that is an interesting statement, because of course it should be “spouses” nowadays, but this was before the second world war—and for a few isolated cases of hardship of former Members.

As the Committee will recognise from that description, demands on the fund have dropped as time has passed. In the last financial year, payments worked out at £137,000. As a consequence, the fund has grown over the years to a considerable £7 million. At present, the fund draws from compulsory contributions from Members, earnings from its investments and an annual contribution from the Treasury of approximately £215,000. If the Committee agrees to the amendments tabled by my hon. Friend the Member for Christchurch, that last contribution will cease. The Bill will also remove the requirement under existing primary legislation for Members to make monthly contributions of £2. In effect, the trustees will be empowered to cease deducting contributions. Given the figures that I have just stated, I suspect that they intend to do so immediately following Royal Assent, as the fund has, to put it simply, a considerable surplus. However, the Bill will also enable them to recommend resumption of contributions, if needed, up to a maximum of 0.2% of pay. The trustees can, if they agree, return any surplus funds to the Treasury, and they have requested that discretion.

The Bill will extend the class of beneficiaries to assist all dependants of former Members who experience severe hardship. It will also remove the requirement for trustees to be current Members. I am sure the Committee agrees that it is sensible for the trustees to ask, for example, the Association of Former Members of Parliament to nominate one trustee. In addition, the Bill will enable the trustees to get over the problem that arises when, at a general election, a number of trustees lose or vacate their seat. The Bill will allow such former MPs to remain as trustees temporarily until they are formally replaced.

This is a little Bill, a sensible Bill and a tidying up Bill, and I hope the Committee will accept clauses 1 to 6.

[Melanie Onn (Great Grimsby) (Lab)]

I will not detain the Committee long. It is worth saying that, although I was not aware of this fund, I recognise that even in the smallest of such bodies, the good work of the trustees who support the work in distributing any funds should not go unrecognised, so I thank them for all their work so far. It is right that we review this matter, and I agree that this is a tidying-up Bill, but I have some questions.

The Bill does not appear to provide for circumstances in which the scheme needs to be wound up entirely. The hon. Member for Mole Valley mentioned that the fund is being called on less and less as the years go by. Would it be sensible now to consider the time when the fund is no longer required, or the scope of the changes? Now, with the contributory pension scheme, it is unlikely to be relied upon in the same way. Is there a requirement for the long-term continuance of the scheme?

I believe the repayment figure stands at about £1 million to be returned to the Treasury, at the discretion of the trustees. I wondered what the projections for the scheme over the next five years are, primarily because I wonder what the purpose could possibly be of retaining such a balance. Would it be preferable to return a greater sum? Is the Treasury the appropriate place to return the money to? Is it necessary for £6 million to remain in the fund?

[Sir Paul Beresford]

Most of what we are doing today enables the trustees to be in the position to answer most of the hon. Lady’s questions when they decide on the conditions. The refund to the Treasury will be in the hands of the trustees, and the chairman of the trustees is here to hear her. The balance at the moment is £6.5 million. It is estimated that we need about £4 million, which means that there could be a refund of £2 million, but that will be down to the trustees. One of the more modern ways of government is to devolve the decisions on these sorts of matters downwards, and I think it is appropriate to give the trustees the ability to do that, including wind-up if they wish.

Question put and agreed to.

Clause 1 accordingly ordered to stand part of the Bill.

Clauses 2 to 6 ordered to stand part of the Bill.

Clause 7

Public money