Oral Answers to Questions

Nigel Mills Excerpts

Monday 19th June 2023 Commons Chamber

[Laura Trott]

I am sure that the hon. Gentleman will welcome the figures that I just announced on the uptake of pension credit. We will not have the eligibility figures for a while—hopefully, they will be out later this year. I hope we will see a rise, but in the meantime we are doing all we can—as I know is true across the House—to get as many people as possible to apply for pension credit so that they qualify for those important cost of living payments.

[Nigel Mills (Amber Valley) (Con)]

15. What recent assessment he has made of the adequacy of funding for defined-benefit pension schemes.

[The Parliamentary Under-Secretary of State for Work and Pensions (Laura Trott)]

The Pension Protection Fund publishes data on the funding of defined-benefit pension schemes. Average funding of the schemes was 113.1% in 2022 versus 104.3% in 2010—a significant improvement.

[Nigel Mills]

Does the Minister accept that we have spent 20 years—probably quite rightly—working out how we get more money into pension schemes to pay for the promise, and that now we need to work out what we do with the money in there that is in excess of what we need? Does she accept that in those 20 years we have seen pension funding increase probably at the expense of current workers, who get a much lower pension? Is there anything we can do to use the surplus to support the pension incomes in retirement of those current workers who will get a far less generous pension?

[Laura Trott]

As I would expect from a member of the Work and Pensions Committee and the head of the all-party parliamentary group on pensions, my hon. Friend makes an interesting point. In my time as pensions Minister I have tried to reduce the gap between DB and defined contribution pensions. I would be interested to talk to him about any further suggestions.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Work and Pensions (Laura Trott)]

I do not think they are. Also, the triple lock is very proudly a Conservative policy.

[Nigel Mills (Amber Valley) (Con)]

With interest rates looking to hit around 6%, are the Government considering making the support for the mortgage interest scheme a little more generous, perhaps by raising the cap or the interest rate, so that it provides the safety net that people expect?

[Mel Stride]

As my hon. Friend will be aware, the Treasury has made it clear that there will not be a significant fiscal intervention around mortgages. Unfortunately, that would serve only to complicate the effectiveness of the measure and the monetary policy effects that the Government and the Bank of England are looking to achieve to halve inflation by the end of this year.