Pensions Update

Nigel Mills Excerpts

Tuesday 7th September 2021 Commons Chamber

[Dr Coffey]

The hon. Gentleman may want to speak to his Cabinet Secretary because, at the moment, the Scottish Government are not using the powers that have already been devolved. I am conscious that they intend to but it is taking quite a lot longer. One of the reasons given by them, reasonably, is the impact of covid. However, he may wish to take this up with his colleagues in Holyrood.

I am conscious of the concerns about pensioner poverty. As I mentioned, we have seen a reduction, with about 200,000 fewer pensioners in absolute poverty before and after housing costs than over a decade ago. We want to maintain that. It might be informative to the House if I mention that material deprivation, one of the other measures of poverty, is at an all-time low, with 6% of pensioners considered materially deprived. The overall trend of pensioners living in poverty has seen a dramatic fall in recent decades. That started off with the Conservative Government and then continued with the Labour Government. We have seen that halve since 1990. However, I assure the hon. Gentleman that this measure is for one year only. That will be on the face of the Bill, and I am confident that that will not be amended.

[Nigel Mills (Amber Valley) (Con)]

Will the Secretary of State confirm that this is a one-year change and that she is not taking the various suggestions to scrap the triple lock completely, so it will be restored from next year? Secondly, does she believe that when we have put this rise through, the pension will realistically have roughly kept pace with the rise in earnings over the three-year period from before the start of the pandemic, or does she think that the rise will end up being a bit less than earnings on a real basis for the average worker around the country?

[Dr Coffey]

It would probably not be wise for me to go down that route, because we are still trying to estimate the likely uplifts in the different metrics. We will not actually use the figures until later in the year, but because of how the machinery of benefit upratings works, we need to be in a position to trigger it in November. Given my hon. Friend’s position on the Work and Pensions Committee, he may wish to ask that question a little later once we have some more detailed analysis in that regard, if that is okay.