Oral Answers to Questions
Neil Duncan-Jordan Excerpts(2 days, 12 hours ago)
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Emma Reynolds
The Chancellor launched a landmark pensions review in July, which I am leading. It has two objectives: to boost returns for future pensioners, so that when they save into private pensions, they get better returns, the likes of which we see in Australia and Canada; and to boost investment in the UK economy.
Neil Duncan-Jordan (Poole) (Lab)
The poorest pensioners in our society are those who are eligible for pension credit but do not claim it, and those who are just a few pounds above the threshold and miss out on passported support. Means-testing, by its very nature, is simply not the best way to get help to those who need it most, so will the Minister reconsider the recent decision to means-test the winter fuel allowance?
Emma Reynolds
We will not reconsider that decision, because as a result of the £22 billion black hole that we inherited from the Conservative party, we have had to take tough decisions in a very tight fiscal environment. However, my hon. Friend has given me the opportunity to remind people that they have until Saturday to make a pension credit claim, which can be backdated and will passport them to winter fuel payments and other related benefits.
Work and Pensions
Neil Duncan-Jordan Excerpts(2 months, 1 week ago)
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Neil Duncan-Jordan
Does the Minister agree that the problem is that wherever we draw the line, there will always be those just above who end up being poorer because they do not gain the benefit and do not get the passported access that gaining the benefit gives? Those individuals end up being worse off than the people who do claim. That is one of the problems with the means-tested system.
Emma Reynolds
I thank my hon. Friend for his intervention. For those just above the threshold, we have extended the household support fund. I urge hon. Members to work with me, the Secretary of State for Work and Pensions and the Deputy Prime Minister, who have written to local authorities to encourage them to ensure that those just above the threshold who are struggling get the support they need with bills.
[Official Report, 10 September 2024; Vol. 753, c. 243WH.]
Written correction submitted by the Under-Secretary of State for Work and Pensions, the hon. Member for Wycombe (Emma Reynolds):
Oral Answers to Questions
Neil Duncan-Jordan Excerpts(2 months, 1 week ago)
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Emma Reynolds
This is a decision that we neither wanted nor expected to make, but when we came into office there was a £22 billion black hole in the public finances. There are mitigations in place. We have extended the household support fund and the hon. Gentleman’s council will receive an extra £3.9 million. We are increasing the state pension. Through the triple lock, the state pension will increase by £1,700 in this Parliament. We will also deliver the warm home discount scheme, and I hope he will join me in making sure that every pensioner who is eligible for pension credit receives it, which will passport them to the winter fuel payment.
Neil Duncan-Jordan (Poole) (Lab)
We know that 2 million older people currently live in poverty in this country, with millions more with incomes just above the poverty level. Does the Minister agree that the Government should set up a pensioner taskforce to look at how pensioner poverty can be tackled once and for all?
Social Security
Neil Duncan-Jordan Excerpts(3 months, 1 week ago)
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Neil Duncan-Jordan (Poole) (Lab)
Thank you, Madam Deputy Speaker, for the chance to speak in this important debate. I felt compelled to do so because for nearly 20 years I was an active campaigner in the pensioner movement. I want to make it clear that the financial mess inherited by the Government is a result of 14 years of austerity and financial mismanagement, and I reject any suggestion that public sector workers are benefiting at the expense of pensioners. That is well known to be a crude attempt to divide working people, and we should reject it as such.
In the short time that I have, I want to make the case for universalism as the cornerstone of our welfare state. We know from the latest figures that 880,000 older people are eligible for pension credit but do not claim it. Means-testing is supposed to target help at those who need it most, but those people do not claim it. For decades, successive Governments have talked about needing to improve take-up, but even in the best year the take-up rate was 67%. Of course, some people do not claim it because they are unaware of what they are entitled to, but most are wary about having to answer more than 230 questions about their circumstances, and many charities such as Citizens Advice in my constituency do not have the capacity to help people fill the forms in because of cuts to funding over the years of austerity. We should also recognise that there is still a stigma attached to having to declare that you are struggling, and concepts around the deserving poor are as old as this building. I thought that in the 21st century we would be hoping for something better.
The key question with any means-tested-system is: where do we draw the line? By its very nature, the biggest losers will be those just above the cut-off point. In my constituency, around 19,000 people will miss out. The UK has long-standing problems such as poor housing that is difficult to keep warm, one of the lowest pensions in Europe, rising energy costs, and annual cold-related winter deaths among older people—I could go on, but I am running out of time. I urge the Government to think seriously about delaying this proposal and, in its place, putting forward a pensioner taskforce to look at how we can tackle pensioner poverty in the UK.
Winter Fuel Payment
Neil Duncan-Jordan Excerpts(3 months, 1 week ago)
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Westminster 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.
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The Parliamentary Under-Secretary of State for Work and Pensions (Emma Reynolds)
This is the first time I have served under your chairmanship, so thank you, Dr Huq. I start by thanking my hon. Friend the Member for York Central (Rachael Maskell) for providing the opportunity for this debate, and thanking her and others for their attendance.
The previous Government left us with unfunded and undisclosed spending commitments. It is very surprising that none of them is in their place for this debate. I may not know some of the new Conservative MPs, but I see empty places opposite me, although elsewhere there are hon. Members from other parties. Hon. Members are acutely aware of the £22 billion black hole in this year’s public finances left by the previous Government. The Office for Budget Responsibility has said that that represents
“one of the largest year-ahead overspends against…forecasts outside of the pandemic years”,
and the Chancellor only discovered this after the election. She has been clear that the decision about means-testing the winter fuel payment was not one that this Government expected or wanted to make, but given the in-year overspend that we uncovered, it is a necessary one. While protecting the poorest pensioners on the lowest incomes and with the greatest need, it is the right decision given the tough choices that we face.
To be very clear, I have spoken to a number of the hon. Members present about the Government’s decision, and there is actually fairly widespread agreement that the benefit should not be universal. Plenty of very wealthy pensioners who do not need it are getting transfers of £200—or £300, if they are over 80—into their bank accounts. It is right that we target the support at the poorest pensioners.
Neil Duncan-Jordan (Poole) (Lab)
Does the Minister agree that the problem is that wherever we draw the line, there will always be those just above who end up being poorer because they do not gain the benefit and do not get the passported access that gaining the benefit gives? Those individuals end up being worse off than the people who do claim. That is one of the problems with the means-tested system.
Emma Reynolds
I thank my hon. Friend for his intervention. For those just above the threshold, we have extended the household support fund. I urge hon. Members to work with me, the Secretary of State for Work and Pensions and the Deputy Prime Minister, who have written to local authorities to encourage them to ensure that those just above the threshold who are struggling get the support they need with bills. Obviously, that is discretionary, but we encourage local authorities to use that.
In addition, the Minister for Energy Consumers has met with the 15 largest energy providers and urged them to give all the support they can to those who are either likely to get into debt, or who are already into debt on their fuel bills. Support is available. There is also the warm homes discount, which is available to a larger cohort than those on pension credit. That will go live in October; again, I encourage hon. Members to join us in urging those struggling with their bills to apply for the warm homes discount, which is worth £150.
There are measures that the Government are taking. We are absolutely determined to boost the uptake of pension credit. It is a national scandal that up to 880,000 eligible pensioners are missing out on pension credit thanks to the previous Government. That is worth on average £3,900 per year, but obviously depends on personal circumstances. If people apply for pension credit and are successful, it passports them to all sorts of other benefits.
My hon. Friend the Member for Great Grimsby and Cleethorpes (Melanie Onn) rightly said that pensioners eligible for the savings credit part of pension credit are also eligible for pension credit, and therefore will be passported to receive winter fuel payments. It is quite a complex area, because it depends on whether someone is on the old or new state pension. Gordon Brown, when he was Chancellor, introduced the savings credit precisely to help the cohort of people that hon. Members are concerned about. George Osborne, on taking office, cut that benefit and made it unavailable for younger pensioners, so the cut off is 2016. That is something that we have been left; as my hon. Friend the Member for York Central said, it is not a legacy that we have chosen. I hope to work with all hon. Members present, who are clearly concerned about their constituents, to boost the uptake of pension credit.