Oral Answers to Questions

Debate between Paul Flynn and Steve Webb

Monday 9th March 2015 Commons Chamber

[Steve Webb]

I am grateful to my right hon. Friend for what he has said. We want to encourage people to sort things out for themselves whenever that is possible, but when they do use the new system, we offer a much better service than we did. For example, we now have what is known in the jargon as a web-based portal. People can log on and see how their accounts stand, and the system is so good that some have likened it to online banking.

[Paul Flynn (Newport West) (Lab)]

6. What assessment he has made of the potential effect on people subject to the under-occupancy penalty of a reduction in funding for discretionary housing payments in 2015-16.

Oral Answers to Questions

Debate between Paul Flynn and Steve Webb

Monday 20th May 2013 Commons Chamber

[Paul Flynn (Newport West) (Lab)]

6. How many households in Wales have been affected by the under-occupancy penalty to date.

[The Minister of State, Department for Work and Pensions (Steve Webb)]

Our equality impact assessment estimates that around 40,000 claimants will be affected by the removal of the spare room subsidy in Wales. A formal evaluation of the policy will be carried out over a two-year period with initial findings available early next year.

[Paul Flynn]

BBC Wales reports that for every 70 victims of the bedroom tax, only one alternative unit of accommodation is available. That means that 69 out of every 70 will have no choice but to endure this tax, which is unfair, impractical and will further impoverish the already poor.

[Steve Webb]

The hon. Gentleman is right that we are asking social tenants to pay £2 a day towards a spare room—something that private tenants had to do under Labour’s local housing allowance scheme. Within Wales, a quarter of all social accommodation is one-bedroom properties. If we can deal with overcrowding and people on the waiting list in Wales, we will be doing the right thing by the people of Wales.

--- Later in debate ---

[Paul Flynn (Newport West) (Lab)]

T2. For many, retirement is a welcome liberation from demeaning drudgery. For others, it is an unwelcome end to their useful lives, often leading to ill health. What are the Government doing to ensure more choice in the age of retirement?

[Steve Webb]

One of the measures we implemented early on, and of which I am proudest, was the abolition of forced retirement. The previous Government talked about it a lot, but we abolished it, so people can no longer be forced out of their jobs simply for turning 65. However, there is much more to do. We are working with employers’ groups on attitudes to older workers to encourage them to retain them and enable them to stay in the work force if they wish to do so.

State Pension Reform

Debate between Paul Flynn and Steve Webb

Monday 14th January 2013 Commons Chamber

[Steve Webb]

Where a mother spends time out of the labour market and then returns to work, her pension rights at the £144 rate will be fully protected. If those women are not in an auto-enrolment scheme, they are not contributing, the employer is not contributing and they are not building up rights under that scheme, but we are ensuring that there is a firmer foundation. If those women carry on receiving, for example, maternity pay during maternity leave, then pension contributions can be taken from maternity pay, which can keep their pension contributions going.

[Paul Flynn (Newport West) (Lab)]

Will the Minister emulate the splendid example of Barbara Castle in 1975, who secured all-party support for the introduction of SERPS? Will he also consider a reform whereby retirees who are fortunate enough still to be in work while receiving the basic pension should continue to pay national insurance? That would be fair, affordable and acceptable and would bring in between £2 billion and £3 billion a year.

[Steve Webb]

I would certainly warmly welcome all-party support. I have tried to approach the issue in as constructive a way as I can, because we want an element of stability in the pension system. I am not convinced that levying national insurance contribution on working pensioners is the way forward. Clearly, what we want is some flexibility in retirement. We want to get away from this cliff edge where people are either working or retired. We are interested in a model of phased retirement, partial drawing of pensions, deferring retirement and part-time work. As soon as we say, “You are either working or retired; you pay national insurance or you do not”, we get back to the cliff-edge model that we are trying to move away from.

Oral Answers to Questions

Debate between Paul Flynn and Steve Webb

Monday 10th January 2011 Commons Chamber

[Paul Flynn (Newport West) (Lab)]

Of the representations that the Government have received from pensioners’ organisations on the change from the retail prices index to the consumer prices index, what proportion was in favour and what proportion was against?

[Steve Webb]

The consultation that we undertook on the RPI-CPI change was about occupational pensions, and the majority of responses were from occupational pension organisations. Unsurprisingly, as CPI is generally lower, members of the schemes were not so keen and those who have to pay for the schemes were rather keener.

Benefits Uprating

Debate between Paul Flynn and Steve Webb

Wednesday 8th December 2010 Commons Chamber

[Steve Webb]

My hon. Friend is right. The nature of the triple guarantee is that, whatever happens to earnings and prices, pensioners will be guaranteed a 2.5% rise. Picking up on one of the points that the Opposition spokesperson, the hon. Member for Leeds West (Rachel Reeves), made, I should say that the previous Government, in their spending plans, pencilled in a 2.4% rise in 2012. I have no idea what prices or earnings will be next year, but I do know that 2.5% is bigger than 2.4%.

[Paul Flynn (Newport West) (Lab)]

If a private company alters its contractual obligations to pay its customers, it is likely to end up in court on a charge of fraud. The Secretary of State admits that CPI increases at a slower rate than RPI. Is not the measure just a simple theft of money from pensioners?

[Steve Webb]

No, it is not. Each year the Secretary of State has a duty to assess the general increase in prices; that is what the law requires him to do. If the law required him to link state pensions, for example, to RPI, that would be a different matter, but that is not the duty. The duty is to assess inflation fairly, which is what we are doing. I also announced today that, when companies have RPI written into their rules and no provision for changing those rules, the Government will not allow schemes to change them, precisely for the sorts of reasons that the hon. Gentleman mentions.