Covid-19

Nick Smith Excerpts

Monday 11th May 2020 Commons Chamber

[Nick Smith (Blaenau Gwent) (Lab)]

I congratulate the right hon. Member for Chipping Barnet (Theresa Villiers) on her contribution. The devastating effect of covid-19 on care homes is being felt in Blaenau Gwent and across the world. A quarter of New York’s fatalities happened in care homes, 200 people died in just one care home in Italy, and in England, a full 16% of covid-19 deaths have happened in care homes. This is clearly a far-reaching issue. Today, though, I want to talk about a local tragedy in my constituency.

Blaenau Gwent has one of the highest numbers of coronavirus cases per head in Wales. A brave care home staff member contacted me to say that, early on in this crisis, their care home had inadequate PPE. It was also reported that a resident showing symptoms of covid-19 was discharged back from hospital and allowed access to communal spaces. I have sought confirmation of that from the health authority, but the exact situation remains unclear. Altogether, 16 residents have died.

My question is, were the processes in place so that care homes could deal with this crisis? We knew that the coronavirus would hit the elderly and the vulnerable hardest, and that those in care homes were most at risk. More should have been done at the start of the outbreak to protect residents and staff.

This has been a dreadful time for my constituents, for care home residents, their relatives and hard-working staff. Almost daily, I have been raising my concerns on this one issue with a range of local decision makers. Those decision makers have been pulled in 101 different directions. I know they are doing their very best, but the truth is that health officials have had a focus on the NHS and we have been playing catch-up with care homes. Social care is a vital sector, but we have not been treating it that way.

This crisis has revealed to me that we need to mend the broken structures of accountability. We need fast action to shield those who are most vulnerable and daily updates on deaths in individual care homes. There must be an open discussion about the issues that respects the rights of residents and the needs of staff. We need to build something better.

I end by paying tribute to our care workers across the country who are putting their lives on the line. I have been lucky enough to visit many care homes over the years. At their core, they are places of love. Those cared for are more than residents; they are like family. For the homes, coronavirus deaths are not just numbers; they are painful losses. It is vital that we ensure that tragedies of this scale are never allowed to happen again.

Coronavirus: Employment Support

Nick Smith Excerpts

Thursday 19th March 2020 Commons Chamber

[John Glen]

As ever, my hon. Friend makes a sensible suggestion. I will look at it carefully.

[Nick Smith (Blaenau Gwent) (Lab)]

I do wish Ministers would stop using hyperbole such as “whatever it takes”, when they do not follow through sufficiently quickly. Will the Government extend SSP to support all workers and pay it at the rate of the real living wage straightaway?

Economic Update

Nick Smith Excerpts

Tuesday 17th March 2020 Commons Chamber

[Rishi Sunak]

My right hon. Friend is right to highlight the need to provide support for businesses with their fixed costs, rather than their variable ones. That is what we need to help bridge through—the cash grants today related to rateable value, with reference directly to rent payments—but he is right that other fixed costs are people, which is why we are working up measures in that area.

[Nick Smith (Blaenau Gwent) (Lab)]

The measures in the Red Book are nowhere near enough. For families in need, can statutory sick payments be available from day one, for all workers when they are sick, and can it be set at the level of the national minimum wage?

[Rishi Sunak]

As a result of the actions of my right hon. Friend the Secretary of State for Work and Pensions, SSP is available for those who are eligible for it from day one. Regulations are being laid to that effect, and employment and support allowance will also be available from day one, rather than day eight.

Tax Avoidance and Evasion

Nick Smith Excerpts

Tuesday 25th February 2020 Commons Chamber

[Matt Western]

Yes, there has. As I have said, the former Chancellor showed the wrong sort of leadership when he basically said about taxes, “It is almost entirely down to you whether you choose to pay it or not.” Tax really is the responsibility of us all: it is a corporate responsibility and it is a personal responsibility.

Decades ago, when I was working in the corporate world, I remember the introduction of a thing called corporate social responsibility. It was a real buzz term, and we started making donations to charities, volunteering and so on. Of course, that is important and it is wonderful that big business does that, but we are seeing this almost replace tax responsibility. Rather than paying their way and supporting education, infrastructure and healthcare for society, we are seeing organisations perhaps decorate a community centre or go out on litter picks and the like.

Turning to personal tax avoidance, I have mentioned the former Chancellor, and there are schemes such as the film production scheme. Businesses have increasingly paid out dividends, substituting them for actual salary, because of course there is lower tax to be paid on dividends and it is advantageous to employees or directors to get a much larger proportion of their income through dividends. All we need to do is go to some of the ports around Europe, and see that the yachts in the berths there are all flying flags of convenience—and they are all UK flags or those of UK overseas territories and Crown dependencies. There are no German flags, dare I say it, or Dutch flags or French flags. Either we are renowned for our sailing, or a lot of Germans or those of other nationalities like flying the British flag because— I do not know—they sail better or something like that. The same could be said about personal jets and where they are domiciled.

Let me just say that tax is good: it is a contribution to a better society, and we must think about what that society looks like. We should look at the words of Elizabeth Warren. Let me just paraphrase her; I will not do her justice. She basically said, “Why is it that people should simply want to avoid paying tax and then be able to afford to buy a Ferrari? There is no point in owning a Ferrari, if they have not got a good road to drive it on.” People should pay their tax and get a Jaguar Land Rover or Aston Martin—obviously, because they are much better products anyway—and drive on a beautiful smooth road that has been paid for out of their taxes. That is the sort of society we should be looking for, not people avoiding tax, living behind gated communities, owning Lamborghinis, Ferraris or it whatever may be, and having roads full of potholes.

The Government need to turn up on this issue: they need to go Davos and places like that, and make the case for why international intervention and regulation need to be introduced. I agree with what the hon. Member for Amber Valley (Nigel Mills) said earlier about full disclosure. We need to see that across the entire business sector, whether for small businesses or large businesses. When we talk about consumers being given an informed choice, I think the consumer should know whether Caffè Nero is not paying any tax at all, or whether Costa or one of the others is paying tax, and they can then make an informed decision. They can choose, saying, “Well, maybe I want to buy my coffee from that place”, or whatever the product or service may be.

I want to close on the issue of the tech titans. I say this to them: Amazon, you have your warehouses, and your warehouses need security. They need protection from fire; who is going to show up? Warwickshire fire and rescue service has had significant cuts, and it needs the money out of taxation to pay and provide for the fire and rescue services.

[Nick Smith (Blaenau Gwent) (Lab)]

It is estimated that five of the big tech companies paid an effective UK tax rate of just 2.9% in 2018. They avoided paying £1.3 billion in taxes. Does my hon. Friend agree that the Government need to get that money back?

[Matt Western]

Indeed they do, and I was just about to say in respect of companies such as Facebook that services impact on mental health. We need those services; they need to be paid for for our young people. I say to Apple and Google: your product upgrade and replacement cycles lead to huge waste in recycling. You have to pay your taxes; it is a responsibility that we deserve from you, to pay for our society.

Oral Answers to Questions

Nick Smith Excerpts

Tuesday 11th February 2020 Commons Chamber

[Sajid Javid]

My hon. Friend is right. Local transport is the backbone of our community, which is why hopefully a welcome announcement will be made today on buses and cycling—a new £5 billion package on local transport. There is also the £150 million fund for smaller projects to deal with congestion hotspots. I would be pleased to consider the Chickenhall Lane link road in the next available competition.

[Nick Smith (Blaenau Gwent) (Lab)]

Blaenau Gwent needs investment in the Ebbw Vale to Cardiff train line for extra services. The shared prosperity fund could be a crucial route to providing that. When will the fund be ready to support infrastructure projects in our eastern valleys?

[Sajid Javid]

The hon. Gentleman will know that, as we transition from EU structural funds to the shared prosperity fund, it will be important that we set out exactly how that will work. With reference to his question, it means that the Welsh Government will have to work closely with us to see how we can use that for infrastructure projects in Wales.

The Economy

Nick Smith Excerpts

Thursday 24th October 2019 Commons Chamber

[John McDonnell (Hayes and Harlington) (Lab)]

I beg to move amendment (g), at end add

‘but respectfully regret that the Gracious Speech fails to rebuild the UK economy, tackle the housing crisis, further pushes public services into crisis and contains no vision to bring this divided country back together; call on the Government to bring forward a plan to rebuild the economy so that it works in the interest of the many, not just handing out rewards to those at the top; and further call on the Government to address the climate emergency by bringing forward a green industrial revolution to decarbonise the economy and boost economic growth.’

Mr Speaker, may I just say this? This is the last time that you will be chairing a day of the Queen’s Speech debate, and I may not get the opportunity in other tribute debates to say this. It has been a privilege to serve in this House while you have been Speaker. Thank you.

I listened to the Prime Minister introducing the Queen’s Speech. What I always find most startling about the Prime Minister is his ability to create his own truth and, when confronted with any reality that contradicts his truth, to bluster his way through. I believe he believes that, with a combination of bluster and the occasional pretentious use of Latin, he can always avoid confronting reality or answering for it. So, if we can achieve anything in today’s debate, let us at least try to confront the reality of what some of our people face and assess whether the announcements in the Queen’s Speech in any way meet those challenges.

On the economy, the Prime Minister referred in his speech to “economic success” and “free market success”. He also said:

“in important respects this country is the greatest place to live and to be—the greatest place on earth.”—[Official Report, 14 October 2019; Vol. 666, c. 19.]

I think many of us feel that way, but I just wish it was the same for everyone. For so many of our people, tragically, it is not at the moment. There is a multitude of statistics evidencing just how far the Prime Minister is out of touch and how he appears to have no understanding of what our people have gone through over nearly a decade. Let me start with three stark examples of what the austerity the Conservative party has inflicted on our people has meant and continues to mean, and which I deeply regret were not addressed in the Queen’s Speech.

First, on infant mortality and child poverty, earlier this month, the British Medical Journal published a research project into infant mortality. Declines in infant mortality have been reversed for the first time in 100 years. The research found that, between 2014 and 2017, there were 570 excess infant deaths. The research concluded that 172 of those infant deaths were associated with the increase in child poverty. Out there, there are nearly 200 families who are grieving as a result of the Government’s austerity policies. There is nothing in the Queen’s Speech—nothing—that will tackle the poverty affecting 14 million of our people, and nothing that will tackle the poverty that 4.5 million of our children are being brought up in, or help the 125,000 children who are forced to live in temporary accommodation. There is nothing to address the £3 billion funding gap local councils face in trying to provide the services needed to support those very families. I will not forget, and many Labour Members will not forget, that this is a Government who have closed over 500 Sure Start centres, the very institutions we founded to support those families and to prevent infant mortality and morbidity on the scale we have seen.

Let me take the second example of what the Tories have done to our people. Earlier this month, the Office for National Statistics reported a record number of deaths of homeless people in England and Wales in 2018. Last year, 726 homeless people died. That represents the highest year-to-year increase since data was first collected. The Government have cut £1 billion from support to the homeless since 2010, so it is hardly surprising that rough sleeping has risen by almost 165%. In London, rough sleeping has more than tripled since 2010. Again, there is nothing—nothing—in the Queen’s Speech to tackle the scourge of homelessness.

My third example is the distance between what the Government claim and what employment and wages are like in this country. The Prime Minister claimed that

“we have unemployment at its lowest level since 1974”.—[Official Report, 14 October 2019; Vol. 666, c. 22.]

The reality is this: more than 3 million people are missing from the unemployment rate because they report themselves as “economically inactive,” we have over 2.5 million people counted as employed even though they work fewer than 15 hours a week and there are 3.7 million people in insecure work.

[Nick Smith (Blaenau Gwent) (Lab)]

The Government have received over £4 billion from the mineworkers’ pension scheme, despite not having paid a penny in. With retired miners getting by on a pension of, on average, £84 a week, does my right hon. Friend agree that it is time for the Government to listen? This Queen’s Speech should announce a review of the scheme so that miners and their widows get a fair deal.

[John McDonnell]

Madam Deputy Speaker, I know that large numbers of Members are seeking to make speeches—I will take a number of interventions, but I will protect the time as best I can for others to speak.

Let me give my hon. Friend this assurance on that critical point: in our last Labour party manifesto, we promised that we would review the mineworkers’ pensions scheme—it is dear to my heart, because I was one of the administrators of the scheme soon after I left university, when I worked for the RMT—and we will review it because we want to lift miners and many miners’ widows out of the poverty that they now live in. We give that commitment.

I mentioned insecure work. There are now about 900,000 people on zero-hour contracts—up by 100,000 from a year ago—and real wages are still below pre-crisis levels. The Government like to talk about wage rises and wages rising at their fastest rate in a decade. It is a bizarre claim, because the Government have been in charge of the economy for the last decade, suppressing wages all through that period. According to the Financial Times, the UK was the only major economy where growth returned but wages fell. According to TUC calculations, since 2010, average pay has also fallen for 7.7 million low to middle-income earners, and 11.5 million middle to high-income earners. It is extraordinary that that was not even acknowledged in the Queen’s Speech—that we now have a low-pay, insecure-job economy that this Government have created over the last decade.

Oral Answers to Questions

Nick Smith Excerpts

Tuesday 1st October 2019 Commons Chamber

[Mr Speaker]

I think that we are about to hear the prodigious knowledge of the hon. Member for Blaenau Gwent (Nick Smith) on the Moray growth deal. Wonders never cease.

[Nick Smith (Blaenau Gwent) (Lab)]

21. Thank you, Mr Speaker. Local growth deals like Moray’s would greatly help regional development. The shared prosperity fund would greatly help with improvements to the Ebbw Vale to Cardiff train line, so will the Minister please meet me to consider that possibility?

[Mr Clarke]

That was a truly ingenious question. Of course, the UK shared prosperity fund is really important. We continue to make good progress on its design. Ministry of Housing, Communities and Local Government officials have so far held 26 engagement events across the UK with over 500 representatives from a breadth of sectors. This is something that, obviously, has massive implications for Wales, and we are very happy to ensure that we engage everyone in that process.

Summer Adjournment

Nick Smith Excerpts

Thursday 25th July 2019 Commons Chamber

[Nick Smith (Blaenau Gwent) (Lab)]

I will focus on the rise in pensions mis-selling and say why this growing problem needs an urgent response.

Just this week, an investigation by The Times found that £60 billion had been moved out of defined-benefit pensions in recent years. That is much higher than was previously thought. The Financial Conduct Authority says that most savers would be better off staying in defined-benefit schemes, but The Times says that a third of all transfers now exhibit red flags. Already, pensions mis-selling is costing savers £4 billion a year. Those are concerning figures; behind them are pensioners and families who have worked hard only to find that their pensions and pension pots have been put at risk by rogues.

South Wales was at the centre of a mis-selling crisis with the British Steel pension scheme two years ago. Steelworkers were aggressively targeted by unscrupulous advisers when deciding what to do about their pension options. At least several hundred of them received unsuitable advice, while the response of key regulators was halting and insufficient. I hope that the authorities and the police will take firmer action in future. This was a serious example of what can go wrong, but many of the underlying causes are still there.

The new Administration urgently need to do three things. They should get the regulators to improve their performance, legislate for tougher action against mis-sellers and protect hard-working people’s life savings from the scammers and the swindlers. The Conservative-led coalition Government’s attempt at pensions liberalisation a few years ago is starting to sour. This new Conservative Government must sort it out quickly.

Breathing Space Scheme

Nick Smith Excerpts

Wednesday 19th June 2019 Commons Chamber

[Nick Smith (Blaenau Gwent) (Lab)]

I welcome the breathing space scheme, which will certainly be helpful in Blaenau Gwent, because we discovered that Wonga lent £1 million a year to our borough’s residents. I suspect that a 60-day period will not be enough. The fact is that although citizens advice bureaux are great, we have insufficient guidance and support in our borough. I think that 90 days might be necessary, or perhaps even more, so I ask the Minister to think carefully about that possibility.

[John Glen]

We certainly keep all matters under review, but the 60-day period has not come from nowhere; it has come from deep engagement with the sector. As Joanna Elson, the chief executive of the Money Advice Trust, has said,

“this new scheme could well be a game-changer in our efforts to tackle problem debt as a society.”

I recognise that there are a range of views, but we have looked at what is out there and considered the Scottish experience, and we believe that this is the right policy response.

British Steel Pension Scheme: Transfers

Nick Smith Excerpts

Wednesday 10th April 2019 Westminster Hall

[Nick Smith (Blaenau Gwent) (Lab)]

I beg to move,

That this House has considered pension transfers and the British Steel pension scheme.

For many of us, pensions are a distant, complex and opaque topic. Everyone hopes that their pension will provide financial security for their family’s future. It is often the single biggest pot of money that anyone will have, but that makes pension pots ideal targets for mis-selling. Unfortunately, in recent years pensions mis-selling has got worse. Since further pension freedoms were brought in four years ago, it is easier to transfer out of defined-benefit pension schemes. More than 200,000 people have done that, but as transfers have increased, so have the problems. The compensation paid out for poor transfer advice increased to £40 million last year.

I called for this debate because of a specific mis-selling crisis that affected hundreds and potentially thousands of people across south Wales in particular. Two years ago, the British Steel pension scheme began to restructure its fund after a difficult period for the industry. Scheme members had a hard deadline to make a critical decision: they could go into a new scheme, be defaulted into a lifeboat fund or transfer out. They had to decide against a backdrop of serious uncertainty about the scheme and the industry. The scheme’s administrators were under enormous pressure, with 4,000 calls a day. Vital information about pension advisers from the Financial Conduct Authority was often highly technical. All that helped to create a perfect storm.

[Nick Thomas-Symonds (Torfaen) (Lab)]

I congratulate my hon. Friend on securing the debate and commend the work that he is doing in this area. He has mentioned the Financial Conduct Authority. Does he agree that one issue here is regulation and that too often those who suffer a loss are pushed in the direction of a civil remedy when actually we need stronger enforcement and tougher criminal sanctions?

[Nick Smith]

I agree. I think that the FCA has the right teeth but is not using them and that the police need to intervene much earlier.

[Jim Shannon (Strangford) (DUP)]

I, too, congratulate the hon. Gentleman on initiating the debate. I do not have any people with steel pensions in my constituency, but I am here to support the hon. Gentleman and to do so on the record. He mentioned that 4,000-plus people a week were trying to get details and advice on how to move forward. Is not the onus on the FCA and, ultimately, the Government to ensure that the necessary advice is there and available? The volume of contacts being made clearly indicates that the system is unable to respond in the way it should.

[Nick Smith]

The advice is there. The difficulty is that for many people it is too technical and complicated; working through it is really very hard.

Transfers were talked up, and pension sharks soon began circling around the key steelworking sites across south Wales and the rest of the UK. They were often facilitated by unregulated introducers, through word of mouth. For example, constituents of mine were approached by a rogue financial adviser at their caravan while they were on a family holiday. Wider possibilities were common currency: a place in the sun, a conservatory and a deposit for a son’s or daughter’s new home were all said to be within reach.

The pension changes meant that it was easier to transfer from a stable fund into investments that were far riskier, on the promise of better returns. Unfortunately, it meant that a safe bet could turn into a bad bet, and a high fee was often part of the deal too. It was the case that 7,800 steelworkers transferred out altogether, of whom 872 had transfers arranged by firms that were eventually ordered—ordered—to stop advising by the FCA. One steelworker lost £200,000. Many others lost tens of thousands of pounds. Many suffered incredible stress and anxiety. I heard yesterday that £1.8 million has been paid out in compensation to steelworkers so far. I emphasise the words “so far”. Because that might not grasp the full scale of the issue, the FCA has now reviewed the files of 2% of the nearly 8,000 steelworkers who transferred out. It found that 58% of the advice was not suitable, which means that the tally of those who lost out could run to several thousands. To deal with that possibility, the FCA now needs to set out a clear programme of how it will identify the steelworkers affected, how it will let them know and what practical support it will provide to help to get them through this process.

[Chris Elmore (Ogmore) (Lab)]

I pay tribute to my hon. Friend for securing this debate and leading on this issue, as he has now for several years. On how the FCA now informs steelworkers, does he agree that part of the problem is that lots of steelworkers will simply not know that this has happened and will not understand that they have received bad advice? Given that these are complicated issues, as he has mentioned, that means that they will often just ignore the issue in the hope that it will somehow resolve itself. This could be yet another pension scandal waiting to happen, purely because people do not wish to face up to the realities of what is happening.

[Nick Smith]

My hon. Friend makes a really good point. The FCA is a large organisation based in London. I believe it does not have sufficient resources to help consumers on the ground in places such as Port Talbot or Shotton, or across the country, where pensioners need support at their homes.

[David Hanson (Delyn) (Lab)]

The concerns that my hon. Friend has raised are valid in north Wales among steelworkers who used to work at the Shotton plant, many of whom live in my constituency. A cursory look at the FCA website reveals that there are 17 firms that the FCA is currently examining. I did not know that until I looked at the site in preparation for this debate. How are steelworkers supposed to know who those 17 firms are?

[Nick Smith]

My right hon. Friend gets to the nub of the situation. Who does one trust when one has a pot of gold and people want access to it? He poses a really important question. The FCA has got to help our steelworker pensioners and their families.

It can be argued that this was a unique situation, but many of the underlying problems that allowed it to happen are still there. Rogue financial advisers do not face sufficiently tough consequences from the regulators. The FCA’s register has been improved, but consumer information sometimes remains unclear. The support for people who might have been mis-sold pensions is insufficient.

I recognise that some steps have been taken to improve co-ordination between regulators. That is welcome, but much more needs to be done. At the moment, the pension sharks have generally received administrative sanctions only, but I think they need to face serious penalties. Will the Minister scrutinise the effectiveness of the FCA’s enforcement regime? Steelworkers say the FCA needs to impose heavy financial penalties on bad financial advisers. I think it needs to employ its powers much more often, as it seems this has not been done sufficiently.

[Stephen Kinnock (Aberavon) (Lab)]

I congratulate my hon. Friend on securing this debate and pay tribute to him for his work for our constituents in this important area. At our recent meeting with the FCA, the issue of mandatory insurance wording came up. Those unscrupulous financial advisers are not taking out proper insurance—when they go bust, there is no source of compensation for the steelworkers who have been ripped off. Does my hon. Friend agree that the Minister needs to take urgent action to improve the regulatory framework, not least in the area of mandatory insurance wording?

[Nick Smith]

My hon. Friend makes an important point. Given reports that the FCA is investigating so-called introducers in connection with a major scam, the Government should now ensure that they, too, are regulated. The Treasury has to take action to ensure that financial advisers always have—this comes to my hon. Friend’s point—sufficient insurance to pay out, should they go into administration.

Will the Minister ensure that the FCA updates the Treasury on how it is supporting the potentially several thousand steelworkers who might have received poor transfer advice in this instance? The Treasury needs to co-ordinate with the Department for Work and Pensions and other key bodies in order to help victims of mis-selling to access the support they need. Although BSPS members have been supported by a strong team in Port Talbot, including a financial adviser and a lawyer, there needs to be a single initiative, aimed specifically at people who may have been mis-sold in cases such as BSPS.

[Stephanie Peacock (Barnsley East) (Lab)]

I am very grateful to my good friend for giving way and congratulate him on securing the debate and on the powerful case that he is making. In the consultation on the changes, concerns were raised that the burden could fall too heavily on scheme members, and we worry that that is the case. Our mining and steel communities built this nation. Does my hon. Friend agree that they should be looked after in retirement?

[Nick Smith]

My hon. Friend is a champion for miners’ pensions, on which she has done some great work, and I think she is absolutely right.

I press the Minister on the Treasury’s response to recommendations that others have made about the crisis. The Rookes review suggested that the FCA needs to look at how it handles advisers who have had regulatory issues in the past. Phoenixing, as it is called, has allowed some advisers to reinvent themselves to sell anew. There must be greater scrutiny to stop rogues re-emerging in the marketplace. The review also suggested that the FCA work with the Treasury and the DWP to use digital channels to help to communicate important information to pensioners and to help them.

Finally, the review suggested that the Pensions Regulator work with BSPS, trustees and trade unions—Community and Unite have been particularly good in south Wales—to select a panel of reliable financial advisers that members can use. Those advisers must be able to deal with the scale of the problem with BSPS and with the insurance needed. Can the Minister explain how the Department is progressing those recommendations and when we can expect the changes to be fully implemented?

In his valedictory speech, Mark Neale, the outgoing chief executive of the Financial Services Compensation Scheme, strongly advocated increasing the compensation limit in cases of poor transfer advice. They were powerful remarks, so let us listen to him. I ask the Treasury to actively support that proposal and to investigate how many people are currently suffering uncompensated financial losses because of poor advice.

We need justice for steelworkers who are ripped off. If the FCA will not do that, local police forces in south Wales need to pursue what appear to be complicated cases of fraud. The crimes are committed locally; the losses are clear and often substantial; and those responsible are identifiable. I call on the police forces across south Wales to open files and thoroughly investigate whether those cases amount to fraud. Criminal investigations have to start. If they do not, I call on the forces to state publicly why not.

The financial and emotional toll that this crisis has taken on my constituents and many others has been heavy. They worked hard for decades to earn their pensions, and they expected a secure pot to provide for them and their families. That was put at risk because of the wrongdoing of a few bad actors and a weak response from the regulators. Steelworkers and their families have been let down. The Government and the FCA must improve their act and support those people better. The rogues who ripped off steelworkers and their families must be held to account. If the regulators cannot do that, the police need to step in. We need to make sure that good people see their hard-earned money better protected in future.

--- Later in debate ---

[John Glen]

I have listened carefully to the hon. Gentleman’s interventions, and he is right to say that 6.6% of the 122,000 individuals who had those pensions did transfer out, and that, in general, the default option would not be to transfer out of a DB scheme. There is work going on to develop pathways. I am not clear, given that it is not my direct area of responsibility, about the status of that work. I think, however, that there is a challenge, in the context of the policy on freedoms that is now well under way, about how to reconcile that freedom with making the decisions in question. Perhaps I might pivot over to consider the DC schemes. I think what is happening is that many people decide to take the 25% tax-free lump sum and then do not necessarily make appropriate, or the best, decisions on the remainder of that pot of money. Work is being done on that, but with respect to the specificity of the default option, I cannot give the hon. Gentleman a definitive response now.

I think we are moving to a point where there will be default pathways that people will need to be advised on when they take advice. I think that is probably a sensible compromise that deals with the fact that, in some instances, not coming out of the DB scheme would not be the right thing to do. The hon. Gentleman will agree about that, although he is also perfectly correct to say that, generally, not coming out would be the right thing to do. There is work to be done, but I think progress is being made, and I acknowledge the sensible point he has raised.

[Nick Smith]

I want to focus on what the Minister calls the 6%—perhaps nearly 8,000 people—who may have been badly advised in this case. What is he going to do to get the FCA to up its game, contact those people and help them, in case they have been badly advised?

[John Glen]

Following our meeting, I undertook to speak to Andrew Bailey, the chief executive. We are due to meet every few months, and our next meeting is imminent. I will speak to him about that. A number of live investigations are under way; I do not have investigative power myself, but I will take a close interest in those investigations. Individual companies—I will not name them—are being actively investigated now, and I expect the FCA to make announcements and recommendations consequent to those investigations imminently. I am not privy to the detail, but I am taking a close interest and will be speaking to the chief executive, because I realise that time is pressing on. This morning we have heard vivid accounts of individuals and families ruined by these decisions, and I take the matter seriously.

To get back to my script, the FCA leads on financial advice and has considerable power to act against firms and individuals who provide negligent advice. To be clear: the FCA can impose a financial penalty on a firm, require the firm to pay redress to its customers, restrict the firm’s permissions, or prohibit individuals from operating in financial services. The FCA can bring criminal prosecutions. I hear the enthusiasm for that action being taken, and I think the FCA hears it too, but it works closely with other organisations to support criminal prosecutions. Both the Government and the FCA are targeting their attention on the effective regulation of financial services and wider work to tackle scams, including the recent implementation of a ban on pensions cold calling.

--- Later in debate ---

[Nick Smith]

Thank you, Mr Howarth for chairing what has been a productive debate on an important issue. There have been some strong contributions about some of the key problems that steel pensioners have had to work through in the last 18 months or so. In particular, my hon. Friend the Member for Aberavon (Stephen Kinnock) spoke movingly about the human impact on his constituents, who were at the epicentre of these problems. I have seen the impact too, and it has been heartbreaking.

My constituency neighbour, my hon. Friend the Member for Torfaen (Nick Thomas-Symonds), emphasised the importance of looking at the possibilities for criminal proceedings. I strongly endorse that point, which needs to be taken on urgently by the South Wales police or the FCA.

Other contributors spoke clearly about these serious issues, and about what needs to be done to help in the future. It is clear that a lot of things went badly wrong, and hard-working people found their life savings put at risk. The problems that have been highlighted today need to be addressed as a matter of urgency so that we do everything we can to prevent this from happening again further down the line. I hope the Minister will see through the changes that are needed, given the problems that we have identified today. We will work with him to do that.

Question put and agreed to.

Resolved,

That this House has considered pension transfers and the British Steel pension scheme.