Funeral Plans: Regulation

Debate between Neil Gray and Hannah Bardell

Wednesday 5th June 2019 Commons Chamber

[Neil Gray]

I thank the hon. Gentleman for his intervention, and it would not be an Adjournment debate without his intervening.

The hon. Gentleman raises an important issue, which is the current status of the Funeral Planning Authority, which I will come on to discuss in greater detail in my speech. He is right that it is a voluntary body at the moment, and there has been much debate about whether the best route of regulating this market is through putting the FPA on a statutory footing or through Financial Conduct Authority regulation. The Government appear to be looking at FCA regulation, which I am happy enough with, although I do have some concerns about the direction of travel, which I will ask the Minister to look at. The hon. Gentleman is right. At the moment, the FPA perhaps does not have the teeth to regulate the market properly. It would acknowledge that although it has done a great deal of work in this area since my ten-minute rule Bill was introduced, if it were to have a full suite of powers to regulate the market properly, that would require it to become a statutory body.

[Hannah Bardell (Livingston) (SNP)]

The hon. Member for Strangford (Jim Shannon) is right. My hon. Friend the Member for Airdrie and Shotts (Neil Gray) brings a great number of important issues to the Chamber, and this is one on which he has spoken many times. He will be pleased to know that this week I heard from a local family-run funeral service in my constituency, who expressed support for the Treasury proposals and for enhanced consumer protection. He made the point that most funeral firms, as we know from the Treasury proposals, are small and micro businesses. He is concerned, given that the majority of funerals are delivered by those businesses, that such businesses could be at competitive disadvantage compared with larger providers and threatened by the cost of FCA regulations. What are my hon. Friend’s thoughts on that?

[Neil Gray]

I am well aware of that family-run business, and I share its concerns. My hon. Friend speaks well for them, and it is a point that I wish to make. How do the Government protect competition in the market to make sure that smaller funeral providers and funeral plan providers are not squeezed out of the market by the burden of FCA regulation? Of all the criticisms of the route that the Government have chosen, that is the one that is expressed most keenly by people in the market.

Given the number of funeral plans that have been sold in recent years and the growth in the sector, it is critical that we get the regulation right and ensure that consumers are protected. The Citizens Advice report published a few years ago gave examples of mis-selling—people were promised particular aspects of a funeral, but when the plan was redeemed they were told that that was not part of the deal. Particular cars, coffins or flowers that were chosen for sentimental reasons, for example, were not delivered, although people thought they had paid for them. There have been widespread reports of bad sales practices such as cold calling, aggressive selling and the targeting of vulnerable customers.

Since I introduced my ten-minute rule Bill, which proposed the areas of regulation that the Government now appear to have adopted, a significant amount of change has taken place in the market. The FPA, as I have said, has taken great steps to reform its practices as a voluntary market regulator, and it suggests that 95% of the market has signed up to its regulatory model. There have been great moves across the market to reform practices, including by plan providers themselves. Some of them are moving away from the third-party selling model that appeared to be problematic and was part of the 5% issue that concerns us all. I am pleased that my Bill proposal, which was intended to spark debate and action for change, has led to that progress. I am grateful to the Minister for taking action.

Employment and Support Allowance

Debate between Neil Gray and Hannah Bardell

Tuesday 18th April 2017 Commons Chamber

[Neil Gray]

Absolutely. I thank my hon. Friend for that intervention, because that point has been made by the expert disability charities. They do not see this cut as an incentive for people to find work; rather, it hinders their opportunities for getting back into work, if they are able to do so as part of a timely process.

In November, in response to the debate on a cross-party motion on this subject that I introduced in this Chamber, the Minister committed to ensuring that a replacement system of support would be in place for ESA recipients in the WRAG before the cut was to take place, but we have no clarity over what that system is or will look like. She said that support would be provided and an additional £15 million invested in the flexible support fund, but, of course, the flexible support fund is a discretionary fund used by jobcentres to help those in receipt of unemployment benefits to find work. It can be used to help with the cost of travel to interviews, childcare, clothing or uniforms to start work. However, the flexible support fund has been heavily criticised by the National Audit Office, the Work and Pensions Committee and others, because of its complexity and under-utilisation.

There have been allegations that jobcentre staff have been pressured into not using the fund. It is also one of the best kept secrets in Whitehall as information about it is not available on the Government’s own website. What concerns me most is that there is no detail over how the flexible support fund, which will total only £83 million after the additional allocation, will directly support ESA WRAG recipients. Have jobcentre staff been told to target the flexible support fund on disabled people?

Another commitment made by the Minister was to secure better deals with service providers to help disabled people financially. She was going to broker deals with energy companies and telecoms suppliers to help sick and disabled people with their bills, but how many people will be able to afford a BT TV package or Sky broadband on even the higher rate of ESA WRAG? Even if she has managed to secure better deals on energy or insurance costs, we have not been told about them. How much will they aid disabled people? Will they make up the shortfall? Who are the deals with? When will they come into force? Will the Government promote them?

The Minister also committed to having personalised support packages in place by now—either a place on the Work and Health programme or Work Choice. Of course the Work and Health programme has yet to start and Work Choice is not new support. Additional places were also to be provided on the specialist employability support programme, which is a very small project, with only 1,700 members in 2015. Another idea was on job clubs, but we have not had any further detail on that. There is also the drive for work experience places with wrap-around support for young people, but again there have been no detail on whether this will be available for WRAG recipients.

Increased funding for the Access to Work mental health support service has also been mentioned. It has been launched, but is available only if a person is in work or signed off work sick, so it will not help those on ESA WRAG. All in all, we have had many different ideas. There have been different, tentative and ultimately detail-free announcements. In the end we have no detail and no way of knowing how the Government plan to live up to their promise of ensuring that ESA WRAG recipients are not punished financially or how they intend to halve the disability employment gap by 2020, as was promised.

[Hannah Bardell (Livingston) (SNP)]

I thank my hon. Friend for giving way and congratulate him on bringing this serious issue to the attention of the House. Does he agree that the Government are just piling on more pernicious cuts on top of—let us not forget—the closure of Remploy a few years ago, and a missed opportunity in the industrial strategy where there is very little talk of how they will close the disability employment gap? They need to be much more ambitious and much more helpful.

[Neil Gray]

I agree with my hon. Friend. Indeed I understand that submissions to that effect have been made to the Government’s consultation on the industrial strategy.

All of us—colleagues across this House, Members of the House of Lords, expert disability charities, which have opposed this cut, and disabled people themselves—are expecting detail from the Minister this evening. She has had two weeks’ notice of this debate. She will have known what I was going to raise because I have been asking the same questions for months. There can be no excuse for not being very clear and for not providing great detail on how her Government are honouring their many promises in debates past to placate their own Back Benchers.

Of course I can predict one thing the Minister will say. The Scottish Government now have limited powers over some aspects of social security and she will claim that the Scottish Government can therefore mitigate this cut for the people of Scotland. I hope that I can pre-empt her reading out that nonsense by telling her that I am standing here defending employment support not just for disabled people in Scotland, but for disabled people up and down these isles. Secondly, the Scottish Government have already spent almost £400 million since 2013 mitigating Conservative cuts to social security in Scotland. At a time of austerity, when Scotland’s budget is being cut back to the tune of £2.9 billion in this decade, and the Scottish Government are having to divert depleted funds to mitigate Tory social security cuts, I do not think that telling Scotland to pay twice for disability employment support would be the strongest position for the Minister to take, and it does nothing to help or answer the questions of disabled people elsewhere. So perhaps she will stick to finding a credible argument to justify this cut and outline what additional support she will provide rather than deflect responsibility for it.

The Disability Benefits Consortium brings together 70 different expert disability charities and they have opposed this cut from the start. On the same day as the cross-party motion presented to the Backbench Business Committee was debated in November, they signed an open letter to the Government calling for the cuts to be stopped. They have criticised in particular the Government’s idea that somehow disabled people are disincentivised to work by receiving an extra £30 per week. The Government completely ignore the fact that the majority of sick and disabled people are desperate to work but struggle to find a job. The Government ignore the fact that a third of ESA recipients sometimes cannot afford to eat on the old ESA WRAG rate. Almost seven in 10 say that this cut will cause their health to suffer. The Government have done nothing to assess how this cut will impact on the mental health of recipients. Nobody could suffer a one third cut in their income and not see their health deteriorate in some way as a result, especially when they are already struggling to get by.

The people we are talking about today are people with disabilities or mental health conditions. They want to work, but they cannot. They are faced with the double indignity of wanting to work but being unable to find a job, and then being told that the financial support they are struggling to live on is a disincentive to find work. I am aware—not just from the debate in November when a number of Tory MPs followed MPs from eight other parties through the Lobby to call on the Government at least to pause these cuts, but since then—that all is not well on the Government side of the House in relation to this policy. I understand that the Prime Minister attended a meeting with concerned Tory MPs a few weeks ago and was told directly by them that she needed to do more. Perhaps we will get some clarity tonight as a result.

We need to hear from the Minister what she is going to do to live up to that quote about liquidity. What is she doing to ensure that disabled people, who are already struggling to get by, will be financially supported in addition to any enhanced employment support that may be forthcoming?

This will be one of the final debates of this Parliament. So far the Government have failed to listen to the disability charities, Opposition parties, the Work and Pensions Committee or the will of the House, given the vote in November. Perhaps in the coming weeks, Government MPs will hear more from the electorate about this devastating cut and come back in the next Parliament with a more serious response.

State Pension Age (Women)

Debate between Neil Gray and Hannah Bardell

Thursday 7th January 2016 Commons Chamber

[Neil Gray (Airdrie and Shotts) (SNP)]

I congratulate my hon. Friend the Member for Paisley and Renfrewshire South (Mhairi Black) on securing this important debate and on moving the motion with such an impassioned, articulate and typically powerful speech. I also pay tribute to the hon. Member for Worsley and Eccles South (Barbara Keeley) for her speech and for being a co-signatory to the motion. I pay tribute to my hon. Friends the Members for Kirkcaldy and Cowdenbeath (Roger Mullin) and for Ross, Skye and Lochaber (Ian Blackford), who have consistently and effectively raised this issue since their election in May.

By the same token, I must pay tribute to the Women Against State Pension Inequality and their campaign to urge the Government to make fair transitional state pension arrangements for women born after 6 April 1951. In particular, it is important to show our appreciation to Anne Keen, who first raised the petition on this issue after receiving a letter from the DWP which said that her expected retirement age had been increased. Far from getting 15 or indeed five years’ notice, she was notified only 18 months before her 60th birthday. What an absolute scandal and disgrace. Last night the petition had more than 107,000 signatures. I imagine that it is now approaching 108,000. That is testimony to all those who have worked so hard to bring this matter to the Government’s attention, including constituents of mine in Airdrie and Shotts.

Unashamedly, the Government are shifting the goalposts at very short notice for hard-working women—women who have gone to work, bettered our industries, raised children and supported families, but who have not had equal employment opportunities, access to independent pension funds or the opportunities that we have today. These women who have made enormous contributions to our society for the betterment of us all will see their retirement age rise without fair or proper notice.

[Hannah Bardell (Livingston) (SNP)]

Does my hon. Friend agree that the Minister must come to the Dispatch Box and give an explanation to my constituents in Livingston, some of whom retired and finished their employment before they had even heard the news and many of whom did not have time to prepare or save before the news was upon them?

[Neil Gray]

I wholeheartedly agree. Sadly, those are typical stories that have played out across the Chamber today. It is this simple but dramatic injustice that is so galling.

The simple truth is that women born in the 1950s will be disproportionately burdened by the Government’s plan for many reasons, not least because men of the same age are and have long been in a better position to offset at least part of the loss through savings or a private defined contribution pension scheme.

The Pensions Policy Institute, in its submission to the Work and Pensions Committee on the Government’s pension reforms, emphasised that point by illustrating that only 65% of women in the 55 to 59 age range are economically active compared with around 76% of men. The gap is even greater among those in the 60 to 64 age bracket: 34% of women are currently economically active compared with 54% of men.