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.