Women’s Changed State Pension Age: Compensation

Mike Martin Excerpts

Wednesday 15th January 2025 Westminster Hall

[Torsten Bell]

I thank my hon. Friend for his intervention and for his brief congratulations on my appointment prior to his wider comments. I would say gently that he and I both stood on the same manifesto which did not promise to provide compensation, and lots of Members have talked about trust in this Chamber. There was a clear choice not to make that promise in the manifesto.

[Mike Martin (Tunbridge Wells) (LD)]

Will the hon. Gentleman give way?

[Torsten Bell]

I really must make some progress because we are about to run out of time.

It would not be a reasonable or fair use of taxpayer money to pay compensation to people whose circumstances would be the same today even if the maladministration had never occurred. A compensation scheme would cost up to £10.5 billion, less than the scheme previously proposed by the right hon. Member for Hayes and Harlington (John McDonnell) but still a significant amount.

The ombudsman is clear that, as a matter of principle, redress and compensation should normally reflect individual impact. The Department considered at length whether a tailored scheme could be delivered, but it was simply not a viable option. The ombudsman’s report acknowledges the cost and administrative burden of assessing the individual circumstances of 3.5 million women born in the 1950s. Indeed, it took the ombudsman nearly six years to investigate just the six sample cases. To set up a scheme and invite 3.5 million women to set out their detailed personal circumstances would take years and thousands of staff.

Oral Answers to Questions

Mike Martin Excerpts

Monday 11th November 2024 Commons Chamber

[Alison McGovern]

My hon. Friend mentions the new fair repayment rate, which is another crucial part of the Budget and a downpayment on the action that we will take on poverty. I am fond of an invitation to Scotland, and I will happily accept that one.

[Mike Martin (Tunbridge Wells) (LD)]

7. What assessment she has made of the effectiveness of the universal credit assessment system.

[The Minister for Social Security and Disability (Sir Stephen Timms)]

The Department has adopted an iterative approach, updating the universal credit system to reflect user needs as they develop. The new Government are committed to reviewing universal credit to make sure that it is doing the job we need it to.

[Mike Martin]

One of my constituents spent six hours fully awake during an operation that went wrong, as doctors battled to save her life. Obviously, this affected her mental health, and she was deemed unfit for work by her GP and by a clinical psychologist. She then went through a half-hour telephone assessment for her universal credit health check, which deemed her fit to work, so she does not get universal credit and it was not backdated to the operation. Does the Minister think that that sounds right? If not, will he review the case?

[Sir Stephen Timms]

I am grateful to the hon. Gentleman for drawing my attention to that. What he has described sounds very odd indeed, and I will be happy to look at the details if he will let me see them. We are absolutely committed to making sure that universal credit does the job that we need it to, including for people in the situation that his constituent has found herself in.

--- Later in debate ---

[Sir Stephen Timms]

My hon. Friend is absolutely right to highlight that research from Carers UK. The Budget increased the earnings threshold, so people will be able to earn £10,000 a year from work and still claim carer’s allowance, and an extra 60,000 carers will become entitled to the allowance. It is a very big step forward.

[Mike Martin (Tunbridge Wells) (LD)]

T8.  Research from the University of Bath shows that over half of working households receiving UC have incomes that fluctuate from payment period to payment period, sometimes by up to £400. This is to do with the way that assessment periods are calculated, and the income coming into people’s accounts. In 2019, the High Court ruled that the system should be smoothed, and that the DWP should look at different ways of doing that. Can the Secretary of State update the House on where we are with the implementation of that High Court judgment?

[Sir Stephen Timms]

As I mentioned earlier, we are committed to reviewing universal credit. The way it works means that in each assessment period—each month—there is a new calculation based on the income that the person has received, as reported by His Majesty’s Revenue and Customs. However, I would be very happy to meet the hon. Gentleman to talk about how the system needs to be improved further.