Social Security (Up-rating of Benefits) Bill

Patricia Gibson Excerpts

2nd reading
Monday 20th September 2021 Commons Chamber

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Finally, in this Bill, it is official: the Government will break their triple-lock promise to pensioners. The state pension will not increase with earnings in 2022-23 after all. Well, well, well: we can hardly be surprised. The betrayal of the commitment to the triple lock can be filed under the same heading as the broken pledge not to raise national insurance and the pledge to maintain the commitment to spend 0.7% of gross national income on development.

Those broken pledges fly in the face of yet another pledge from the Prime Minister:

“to restore trust in our institutions and in how our democracy operates.”—[Official Report, 15 January 2020; Vol. 669, c. 1019.]

I wonder whether anybody on the Treasury Bench can tell me how that is going. We are discussing the Elections Bill later this evening, but we do not need to look at that to see what restoring trust is worth. With the contents of the Elections Bill, even the Government realised that the assault on democracy that that constitutes meant they could not call it the electoral integrity Bill any more, because that really would be taking the mickey.

This particular broken pledge of abandoning the triple lock is an attack on the largest source of income for UK pensioners, on which they rely. Recent indications show that the number of pensioners living in poverty is rising. I wonder whether those on the Government Benches can even begin to imagine the anger, fury and sense of betrayal of those women born in the 1950s, some of whom have only just qualified for their state pension after so many years of being robbed of it, only to find a new betrayal—the abandonment of the triple lock. That is why SNP Members seek to require the Secretary of State to assess and to be held accountable for the impact that this legislation will have on poverty among pensioners in each of our constituencies. I will stand up for pensioners in North Ayrshire and Arran, just as all of my SNP colleagues will stand up for pensioners in their respective constituencies. This is what we have committed to do and that is what we will do.

It is a cause for shame that this cut is taking place fully in the context of the fact that we in the UK have the lowest levels of proportion of pre-retirement wages of all our European neighbours. As my hon. Friend the Member for Glasgow East (David Linden) pointed out, UK pensioners receive about a quarter of the average working wage when they retire, whereas pensioners in Austria and Luxembourg receive 90% of the average working wage. When will the UK Government devote a percentage of GDP to pensioner benefits that is similar to that in other advanced economies?

The other element to this scandal is that it takes place in the context of too many workers being excluded from automatic enrolment into workplace pensions. The failure to extend that impacts low earners and disproportionately impacts women, widening further the gender pensions gap. Why has that not been fully addressed?

The state pension remains an important source of income for pensioners living in or at risk of poverty because of the very low uptake of pension credit. I ask those on the Treasury Bench: what steps have been taken to increase uptake of pension credit—something I first raised four years ago? What has been done about that? I suspect—I fear—that nothing has been done about it. So much for levelling up.

The Government say they are breaking the triple-lock pledge because this year’s earnings measure is “skewed and distorted”. Well, I have heard people say the same thing about this Government’s priorities. Age UK has expressed real concern that this may not just be a one-off measure but a sneaky way of ditching the triple lock altogether. That might explain why there has been no impact assessment. Where is the impact assessment, given we have 2 million pensioners living in poverty and the triple lock is abandoned? That is a staggering oversight and complacency on stilts towards pensioner poverty.

For all those reasons, I support the reasoned amendment from the Scottish National party. This cut, falling on pensioners, will push more pensioners into poverty. The Government know that. The cut disadvantages women, who are more likely to be poorer in retirement. The Government know that. It is yet another kick in the teeth for WASPI women. Just like with the universal credit cut, this Government are imposing cuts that they know will cause real financial distress, but they go ahead anyway. What does that tell you, Mr Deputy Speaker, about their vision of society? The only conclusion that can be drawn is that they do not care about the people they are supposed to serve. No other conclusion can be drawn. This Government have no interest in the greater good, only in sectional interests. That is why inequality is rising and will continue to rise. No wonder support for independence is rising. Increasingly, the people of Scotland want no more of this Government. Scotland needs a Government who govern for all the people with all the powers of an independent country. That is what the people of Scotland will choose.

--- Later in debate ---

[Guy Opperman]

I am not going to repeat the points I have made, but I manifestly disagree with the right hon. Gentleman. I would point out that we could add on the £24 billion of top-ups that this Government put forward over and above the £105 billion of state pension, so with respect we are in disagreement. There is also a significant degree of support for winter fuel, NHS prescriptions, free eye tests, the over-75s free TV licence and a variety of other matters.

[Patricia Gibson]

Will the Minister give way?

[Guy Opperman]

No, not for the moment.

SNP Members raised many points, and I want to address them. No mention was made, surprisingly, of the powers under sections 24, 26 and 28 of the Scotland Act 2016, which give the Scottish Government the ability to intervene on such matters, should they wish to do so, including the WASPI matters. No mention was made in answer to my hon. Friend the Member for Moray (Douglas Ross), who asked what currency an independent Scottish pension would be paid in. No mention was made of the ability to pay Scottish pensions upon independence, because of course answer there is none.

Reference was made to pension credit take-up, and I want to address the points made.

[Patricia Gibson]

rose—

[Guy Opperman]

I am about to answer the points the hon. Lady raised specifically, if she will bear with me.

Pension credit take-up was raised. We are doing a variety of things on that, including the pension credit awareness day in June, the engagement with the BBC—I met its chief executive only last week—the stakeholder roundtable in May, and the working group established with all the key partners in this matter, let alone the various other ways in which we have changed things and the over 11 million communications to pensioners up and down the country. The Government are proud of their record.

Social Security (Up-rating of Benefits) Bill

Patricia Gibson Excerpts

Committee stage & 3rd reading
Monday 20th September 2021 Commons Chamber

[David Linden]

I do not seek to detain the Committee for long, not least because I spoke on Second Reading and because there are only two amendments before us.

In speaking to my new clause 2, which stands in my name and that of my hon. Friends, I also offer support to new clause 1, which stands in the name of the hon. Member for Oldham East and Saddleworth (Debbie Abrahams). In truth, the two new clauses, although worded differently, seek to do much the same thing: hold the Tory Government’s feet to the fire, not simply allow them to stick their head in the sand when it comes to pensioner poverty.

I bitterly regret that the Bill got a Second Reading, particularly with the help of Scottish Tory MPs, but as the Bill will soon be an Act, it is now incumbent on us to ensure that at least Ministers fully understand the sheer impact of such bad legislation on our constituents and the consequences of this Government’s ditching yet another manifesto pledge to pensioners about the triple lock.

[Patricia Gibson]

Does my hon. Friend share my disappointment with the Minister, who talked earlier about how the Scottish Government should top up the income that pensioners would be deprived of? The Minister knows full well—if he does not, it is worrying— that section 28 of the Scotland Act 2016 forbids the Scottish Government from topping up pensioners’ benefits except

“by reason of old age.”

I am sure that the Minister is well aware of that.

Does my hon. Friend also share my view that rather than expecting the Scottish Government and the Scottish Parliament to continually clean up the injustices of this Government, we would be far better off having all the powers to prevent injustices in the first place?

[David Linden]

I would caution the Minister that my hon. Friend, a former teacher, is not someone whose office or classroom he would want to be summoned to for a telling off. She has quite eloquently set him right on what I am sure was inadvertent misleading of the Committee.

I will return to new clause 2, because I would not want to stray too far from matters before the Committee. My new clause would require the Secretary of State to lay before the House an assessment of the impact on levels of poverty of the uprating of state pensions next year by price inflation instead of earnings growth.

During the Brexit referendum, we were repeatedly told that Parliament would be taking back control. My new clause would merely require Ministers to be transparent and lay before Parliament an impact assessment of poverty, which I am sure any responsible Government would undertake. If indeed Parliament is taking back control, I am sure that agreeing to the new clause will be no problem at all for the Minister; I therefore hope that he will not oppose it. I commend new clause 2 to the Committee.

Social Security (Up-rating of Benefits) Bill

Patricia Gibson Excerpts

Consideration of Lords amendments
Monday 15th November 2021 Commons Chamber

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

rose—

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. This debate has to finish at 6.51 pm and I intend to bring the Minister in at about 6.46, so I ask the two remaining speakers to take about six minutes each.

[Wendy Chamberlain]

When we first debated the changes to the triple lock in September, the Secretary of State suggested we take advice from my friend the former Pensions Minister, Steve Webb—with whom I speak from time to time, the Secretary of State, who is now in her place, and the Minister will be happy to know. We usually do so when he is highlighting cases of people having lost out on entitlements due to failures in DWP systems.

As well as holding the DWP portfolio for my party, I am here to serve the interests of my constituents and I can tell Members that I have not received a single email or letter supporting the suspension of the triple lock. I have, however, received email after email asking me to fight to maintain it and pointing out that our state pension is already the lowest in Europe, with people worrying how they are going to make ends meet this coming winter.

On Second Reading, the Secretary of State told us this suspension was to deal with a one-off anomaly caused by the pandemic. I wonder whether she or the Minister actually engaged with the Prime Minister on this in advance of Second Reading, because his comments on the subject do not align with that argument. The Prime Minister has told a very different story, where quickly rising wages are not just desirable but an intended outcome of Brexit. So I have to ask: whose explanation should Parliament believe on these wage increases? Do the Minister and the Secretary of State align with the Prime Minister on this now and if so why are the Government intent on leaving pensioners behind, far too many of whom are already on or below the poverty line?

I am happy to support the Bill as it has returned to us from the other place, which has worked admirably across the Benches to find this compromise. The Chair of the Select Committee, the right hon. Member for East Ham (Stephen Timms), reminded us in his considered contribution that this is not just about pensioners now; it is about the young, people who cannot get on to the housing ladder and whose wages have been suppressed. We in this place need to ensure that the decisions we make about pensions now give people the reassurance in future that there will be a sustainable state pension for them to live on. The Bill in its current form acknowledges the distortions to the labour market caused by the pandemic, but also acknowledges that inflation is rising. Under that Bill, pensioners will be able to keep the heat on and afford their weekly shop.

I acknowledge that the hon. Member for North Norfolk (Duncan Baker) at least tried to justify the Government’s position this evening, but I note that no other Conservative Back Bencher has had the appetite to do so. There is a simple choice before the House today. I cannot support the Government’s amendments, which will cause such harm to so many.

[Patricia Gibson]

I rise to support Lords amendments 1 and 2. The Tory Government’s abandonment of the link between earnings and pensions, smashing the triple-lock manifesto commitment, is truly disgraceful. We are told this is necessary because this year’s earnings measure is “skewed and distorted”. There are many things swirling around Westminster that are skewed and distorted, but the triple lock is not one of them. The UK Government commitment to the triple lock remains, we have been told today by the Minister, but he will understand that that assurance is met with widespread scepticism because today he is here to tell us why their breaking the triple lock must proceed.

We in the SNP tabled an amendment to this Bill requiring the Secretary of State to assess, and be held accountable on, the impact that the legislation would have on levels of poverty among pensioners in each of the devolved nations. It was shamefully voted down by the Tories, and Labour abstained, which it will have to justify to pensioners across the UK. Pensioners across the UK, and certainly in Scotland, have been watching carefully and will not easily forgive that betrayal.

This Government have not listened to pensioners and they have not listened to Members of this House who have defended the triple lock. I doubt they will listen to the Lords either, but I sincerely hope the Minister will prove me wrong.

We have been told today by the hon. Member for North Norfolk (Duncan Baker) that this would be “reckless” with taxpayers’ money. I find that insulting and wrong-headed, as will many of my constituents. What we have heard shows that the fiscal restraint we are told is necessary is being balanced on the back of pensioners, such as those in my constituency. We have heard from my hon. Friend the Member for Glasgow East (David Linden) about how money can always be found, and we need only look at the DUP deal to see that. Money can be found when it is considered necessary.

Politics is about choices and choosing to break promises. Hard commitments made to pensioners about the triple lock are being broken. We are watching and our constituents are watching and they do not approve. The Government tell us that wages are rising, as we have heard, and we know that inflation is rising, so what justification is there to break the triple lock—to change the goalposts in the middle of the game?

[Patrick Grady (Glasgow North) (SNP)]

Not only are the Government breaking their manifesto commitment and doing away with the triple lock, but already pensioners—our constituents—are in receipt of one of the lowest state pensions in the whole of Europe. Does my hon. Friend share my confusion that Conservative Members often seem to think that the current state pension is an argument for the Union, as if, if Scotland were independent, it would be even worse?

[Patricia Gibson]

I absolutely agree with my hon. Friend that one of the so-called Union dividends is a pension that is a pithy amount compared with those in other developed nations.

There is genuine fear that this abandonment of the triple lock will lead to permanent and more damaging actions against pensioner incomes. The state pension is by far the largest source of income for millions of UK pensioners, and the triple lock has kept that secure throughout the pandemic. To break it now, as inflation creeps up and the cost of living becomes increasingly challenging, is a shocking attack on pensioner incomes, and it is part of a wider and increasingly obvious narrative from this Government. It is crystal clear, because we have the evidence. We know that women born in the 1950s had their pension age increased with little or no notice; we have seen unacceptable state pension payment delays for new retirees, causing genuine financial hardship and suffering; we have more than 2 million older people living in poverty; and with the triple lock abandoned, many pensioners are set to be £520 less well off next year. All of that will do untold damage to pensioners.

I again urge the Government to stop attacking pensioner incomes and at least keep one of their promises to the electorate by retaining the triple lock and preventing more of our pensioners from suffering hardship in old age. There is an opportunity today to do the right thing. The Government must take this opportunity, and they must take it with good grace.

[Guy Opperman]

I thank all colleagues for their contributions. The factual reality of the situation is that this Government are spending £129 billion on pensioners. That is £105 billion on the state pension and £24 billion extra on the various add-ons for pensioners, including winter fuel; free eye tests; bus passes; free NHS, obviously; pension credit—I could go on in great detail. My hon. Friend the Member for North Norfolk (Duncan Baker) asked whether the triple lock will return. I can assure him that that is the case.