Public Service Pensions Bill
Debate between Nick Gibb and John McDonnell(11 years, 11 months ago)
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Mr Gibb
I fear that we are straying slightly from new clause 3 and the group of amendments, but I believe that the Government’s economic strategy is right. It is a judgment call, but one that I believe has been proven right by the fact that the Government’s borrowing cost for 10-year bonds, as they seek to fund the deficit, which has been reduced by a quarter over the last two and a half years, is 1.8%. That is a tribute to the difficult judgments Treasury Ministers have made, and they should be given credit for their achievements. As a consequence, however, there have had to be increases in the contribution rates of active members of public service pension schemes. In addition, Lord Hutton believes that even if there was not a deficit, major reform of public service pensions would still be needed, if they are to be sustainable in the long run.
The Government’s commitment to sustainable public finances is of more concrete value than a proposal from a party with a track record of undermining the public finances. Ultimately, in a pay-as-you-go public service pension scheme, the quality and assurance that members want will depend on the ability of the Government to maintain stable public finances.
John McDonnell
I rise to speak to the amendments in my name: amendments 4, 7 and 8.
Throughout the progress of the Bill, I have tabled a series of amendments with a central thrust—the same one raised by my hon. Friend the Member for Nottingham East (Chris Leslie)—which is about trust. The amendments would ensure that at each stage and for each grouping, there would be full consultation with and the full involvement of representatives of employees and scheme members. I apologise: I should have declared an interest as a member of the local government pension scheme. Nevertheless, each amendment would address the issue of confidence and secure a recognition, as promised by the Government, that employees will be fully consulted and represented and kept fully informed of changes to their pension schemes, which has not been the case up to now.
It is worth remembering that the pension deal was not a deal for a large number of unions; for more than 1 million workers, it was imposed. The Northern Ireland Public Service Alliance, the National Union of Teachers, the Public and Commercial Services Union, the Prison Officers Association, the University and College Union and Unite did not agree to the deal or the heads of agreement; instead, the deal was imposed upon them. There is deep scepticism amongst workers, and if Government Members do not recognise that, they are not living in the real world, or encountering the same constituents I am, or receiving the letters I get from police officers, teachers and local government workers across the piece.
Even organisations that signed up to the heads of the deal are now expressing concerns. The British Medical Association, whose briefing Members will have received, thought it had signed up to an assurance from the Government, which I remember being made, that there would be a 25-year guarantee of no change around a number of protected issues. The Government said:
“This means that no changes to scheme design, benefits or contribution rates should be necessary for 25 years outside of the processes agreed for the cost cap. To give substance to this, the Government intends to include provisions on the face of the forthcoming Public Service Pensions Bill to ensure a high bar is set for future Governments to change the design of the schemes. The Chief Secretary to the Treasury will also give a commitment to Parliament of no more reform for 25 years.”
Yet clause 3, described in briefings by the Royal College of Nursing, the BMA and others as a Henry VIII clause, gives extraordinary powers to the Secretary of State to return to these issues, introduce further reforms and make fairly significant changes through statutory instruments, not primary legislation to be debated in the House. Consequently, there is a lack of confidence in the words of Ministers, particularly given that, as my hon. Friend the Member for Nottingham East said, those words are contradictory, not just across Government, but within the same Department. It is extraordinary.
Others also signed the deal. The RCN wrote to us explaining its concerns:
“Clause 3(3) is a Henry VIII clause which enables the Government to amend the Act at a later date through the use of secondary legislation. The RCN is concerned that, as a result, the Bill gives powers to the UK Government to amend and make retrospective provisions to any other related legislation without sufficient member consultation or scrutiny by Parliament.”
I also received a letter from Mary Bousted of the Association of Teachers and Lecturers, which also signed up to the deal. She wrote:
“As you may know, the ATL accepted the Government’s proposed final agreement on changes to the teachers pension scheme as the best that could be achieved through negotiations. We now find the Bill contains additional elements that go beyond what was agreed in March 2012 and believe that the proposed changes could adversely and unfairly affect the quality of education that the nation’s children receive in our schools.”
Oral Answers to Questions
Debate between Nick Gibb and John McDonnell(12 years, 2 months ago)
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The Minister of State, Department for Education (Mr Nick Gibb)
Our aim is for all pupils to be offered good food in schools and to understand the importance of good nutrition. That is why the Secretary of State has asked the co-founders of the Leon restaurant chain, Henry Dimbleby and John Vincent, to examine school food, determine what more needs to be done to make nutritious and healthy food available to all school children, and ensure that children understand the importance of healthy eating.
John McDonnell
Free school meals are a lifeline to many families living in my constituency and there are concerns that the Chancellor has now called for a further round of expenditure cuts. Will the Minister give an assurance that no category of child eligible for free school meals at the moment will lose their eligibility during the life of this Government?
Mr Gibb
The hon. Gentleman raises an important point. He knows that, to make work pay, we are reforming the benefits system and introducing universal credit. We are working with the Department for Work and Pensions on how that translates into eligibility for free school meals, but we are determined to see no drop in the numbers of parents and their children eligible for free school meals.
Education Bill
Debate between Nick Gibb and John McDonnell(13 years, 6 months ago)
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John McDonnell
The Bill abolishes a number of bodies—the General Teaching Council for England, the Training and Development Agency for Schools, the Qualifications and Curriculum Development Agency and the Young People’s Learning Agency.
In the past the Transfer of Undertakings (Protection of Employment) Regulations were applied when bodies were abolished and staff were transferred from the public sector to the private sector. They would be protected, together with their conditions of work, the recognition of their trade union and their basic employment rights. Because that does not apply to transfers of staff within the public sector, the Cabinet Office introduced the Cabinet Office statement of practice—COSOP—which in the past has been included in legislation so that TUPE principles applied to staff as if they were being transferred out of the public sector. The previous Government stated on the face of the Bill that that was the situation when the Learning and Skills Council was abolished. The present Government have done the same thing in the Localism Bill, but not in the Education Bill. As a result, the staff are feeling insecure about their future. That affects morale and recruitment and retention—
John McDonnell
It is incredibly helpful to have that on the record. It would be valuable if the Minister could see whether it could be put on the face of the Bill when it goes to another place.