Pensions (Special Rules for End of Life) Bill

Paul Maynard Excerpts

Committee stage
Wednesday 24th April 2024 Public Bill Committees

[The Chair]

If no other Members wish to contribute, I call the Minister.

[The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)]

It is a pleasure to serve under your chairship, Dame Siobhain. I thank my hon. Friend the Member for Tewkesbury for bringing forward this legislation; I should also thank my right hon. Friend the Member for Suffolk Coastal, the former Secretary of State for Work and Pensions, for paving the way.

This may seem a small and discrete piece of legislation, but it is very important. As my hon. Friend the Member for Tewkesbury explained, the Bill extends the definition of terminal illness for compensation payments made under both the Pension Protection Fund and the Financial Assistance Scheme. Members will be able to claim their compensation on the grounds of terminal illness if a medical professional confirms that they have less than 12 months to live, rather than the current six months. That will enable eligible members to receive the vital support of payments at an earlier point in their illness. The change restores the original policy intent of alignment between the social security special rules provisions and both the PPF and FAS. It will also bring those two schemes into line with the tax definition of “serious ill health”, which allows private pension schemes to make payments where the member has less than 12 months to live.

I will try to cover some of the issues raised today and on Second Reading. There was a particular concern on Second Reading as to whether people whose schemes were not in the PPF or FAS would have a similar opportunity. Although I cannot provide definitive numbers—I do not believe they actually exist—for serious ill health payments, one of the leading independent trustee firms, Dalriada, has confirmed that:

“Trustees may only make such payments in accordance with the provisions of their scheme’s trust deed and rules. In practice, most scheme rules do allow for such payments.”

Officials have also contacted the Association of Pension Lawyers, which collectively acts for many schemes of all sizes. It has confirmed that, in the experience of its members, most occupational pension schemes will have an option of a serious ill health lump sum payable on a discretionary basis.

We have also heard questions today, and as we did on Second Reading, about who would be making the decisions on terminal illness, and the range of those illnesses. I can confirm that those decisions will be made by healthcare professionals, such as clinicians and medical practitioners, who have had direct oversight of the individual concerned. Although there is no definitive list of what constitutes a terminal illness, I imagine that the provisions would certainly include illnesses such as advanced cancer, dementia, motor neurone disease, and other neurological diseases, such as Parkinson’s. However, in my view the definition does not exclude any particular range of conditions, because one’s lived experience of a condition is not determined by the label that we hang around our necks. I find that I have been saying that for 48 years of my life, frankly. We do not determine someone’s lived experience just by the name of their particular condition.

My hon. Friend the Minister for Employment was also asked on Second Reading whether fixed time limits were the right way to go, and whether there would be adequate training for clinicians and communication to make people aware of the changes. The Department engaged widely on time limits ahead of the Social Security (Special Rules for End of Life) Act 2022, and chose the 12-month approach specifically to align with the NHS definition of “end of life”, and to link up with existing initiatives for clinicians that encourage the identification of people in their final year of life. This Bill simply aligns the definition used for the PPF and the FAS with that used more widely by the DWP and the NHS.

As part of the preparations made ahead of the 2022 Act, the Department engaged extensively with senior clinicians from key medical organisations and hospices, as well as representatives from multiple charities and networks of welfare advisers. DWP bulletins were sent out by the British Medical Association, the Royal College of General Practitioners, the Royal College of Physicians, the Association for Palliative Medicine, Hospice UK and NHS England networks across the country. The Department also initiated plans to create a learning module for clinicians to raise awareness among the clinical community of the financial support available for those who are nearing the end of life. That learning module went live in February.

Assurances were also sought that the definition of a terminal illness would be consistent across the DWP. I can provide that assurance today. As the Minister for Employment said on Second Reading, this Bill builds on the previous legislation—which we have just heard about—which changed the special rules for social security benefits. The scope of that legislation limited the changes that we could make to social security benefits administered by the DWP, as they involved the fast-tracking of benefit claims. This final change brings payments made by the PPF and FAS into alignment with those changes.

As I mentioned a little earlier, this Bill aligns the PPF and FAS definition with the tax rules for serious ill health. That will ensure that the payments made by the PPF do not trigger unauthorised payment tax charges on either the PPF or the individual to whom the payments are made. If the definition was to be amended beyond 12 months, as some have suggested, members could have faced significant tax charges on their payments, which I am sure no one wishes to see happen.

I have noted the comments today from my right hon. Friends the Members for East Yorkshire and for Suffolk Coastal about the commencement of the provisions in the Bill. I can confirm today that the intention is for that to happen as soon as practicable after Royal Assent. I see no reason for delay or obfuscation. We have all agreed today that this is a vital piece of legislation that will benefit many of the most vulnerable in our society at the time they need help most, so I have no intention at all of delaying it.

[Sir Greg Knight]

I am most grateful to the Minister for what he has just said. Can he confirm that that is an undertaking that he has given, and that it is unequivocal?

[Paul Maynard]

Given that the phrase I used was “as soon as practicable”, I can give that solemn undertaking. I would hate it if either scheme had some kink in its processes that might cause delay. I will do everything in my power to ensure that this is done as soon as possible. I meet the PPF regularly, and this will be on the agenda for the next meeting to make sure all its ducks are in a row, like all the Department’s are.

To conclude—

[James Gray]

Before the Minister does that, does he agree that one person who would have been very pleased by this legislation is that great champion of pensions and of pensioners, Frank Field, who died yesterday? He was a great man and a great gentleman.

[Paul Maynard]

I am grateful for that intervention, because I should have thought to start my speech by paying tribute to Frank Field and the immense amount of work he did in the Department for Work and Pensions. He was a thoughtful and humane man, respected on both sides of the House, and I am more than happy to join in paying tribute to him.

Being told that one is nearing the ends of one’s life can be a devastating and frightening experience. It is crucial that those reaching the final stages of their life do not have to worry as much about their finances and can focus on spending their time with the people who matter to them. The Bill takes us one step further toward ensuring that that can happen, building on the changes made back in 2022. I am grateful to my hon. Friend the Member for Tewkesbury for promoting the Bill, and I commend it to the Committee.

[Mr Robertson]

I thank the Minister for that positive response. We look forward to the measure being introduced as soon as practicable. I also thank all members of the Committee for their attendance and contributions today, as well as the team who helped to put the Bill together.

It was rather remiss of me to forget to pay tribute to Frank Field, and I am grateful to my hon. Friend the Member for North Wiltshire for reminding us. A long time ago, before I was elected to this House, I had the pleasure of working with Frank on a charity project I was involved with, just across the river at Lambeth Palace. We were raising money to create a hostel for homeless women in London at Marylebone complex, just off the Marylebone Road, and Frank was very active member of the fundraising committee. There was no benefit to him; he did it because he felt it was the right thing to do. I pay sincere tribute to Frank.

That seems a good point to finish my speech by restating my thanks to everyone who helped with the Bill.

Pensions Dashboard

Paul Maynard Excerpts

Monday 25th March 2024 Written Statements

[The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)]

The success of automatic enrolment has led to record numbers of people saving for retirement. Pensions dashboards will allow individuals to view information about their pensions, including their state pension, for free, in one place online. This will help individuals’ awareness and understanding of their pension information and estimated income in retirement, building a greater sense of individual control and ownership.

Since the reset was initiated last year, the pensions dashboards programme has made significant progress on building and testing the system that will enable pensions dashboards to work. Subject to satisfactory testing, the programme plans to begin the process of connecting the organisations building a direct connection, including the Department for Work and Pensions state pension, from August 2024. Connection testing will then continue to ensure readiness to support wider industry connection from early 2025.

The Secretary of State for Work and Pensions will today publish guidance setting out a staged timetable for connection. This will help smooth the process of connecting the approximately 3,000 pension schemes and providers in scope by the connection deadline of 31 October 2026. The timetable prioritises connection of the largest pension schemes and providers, so that crucial user testing can quickly take place at scale, with the first cohort expected to have completed connection by the end of April 2025. While the timetable is not mandatory, it is a legal requirement that trustees or managers of occupational pension schemes and providers of personal and stakeholder pensions have regard to this guidance.

The Government are absolutely committed to delivering pensions dashboards safely and securely to the public at the earliest opportunity. The publication of the connection timetable marks a significant milestone towards launching pensions dashboards, and takes us closer to introducing a service that has the potential to transform how individuals plan for retirement.

[HCWS381]

Oral Answers to Questions

Paul Maynard Excerpts

Monday 18th March 2024 Commons Chamber

[Mr Louie French (Old Bexley and Sidcup) (Con)]

19. What steps his Department is taking to support pensioners.

[The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)]

In 2023-24 we will spend over £152 billion on benefits for pensioners in Great Britain—5.9% of GDP—including a forecast £125.4 billion on the state pension.

[Mrs Wheeler]

I thank my hon. Friend for his reply. South Derbyshire pensioners have been in touch with me following the Budget, emailing to say that it seemed to offer them nothing. Would he be kind enough to set out today the help that the Government have given and are giving to pensioners, to help them realise that “nothing” is far from the reality of what a Conservative Government are giving them?

[Paul Maynard]

I am grateful for that question. The answer could not be further from nothing. This is a Government with a proven track record of supporting pensioners, including our commitment to the triple lock. In April we will see the state pension raised by 8.5% this year, after an increase of 10.1% last year, meaning that it will be a full £3,200 higher in cash terms than it was in 2010.

[Greg Smith]

I very much welcome the record on supporting pensioners that my hon. Friend has just outlined. A number of pensioners in my constituency have contacted me about the effects of fiscal drag—they may have a very modest private pension that is now being dragged into tax when they never expected it to be. What steps is my hon. Friend taking in conjunction with the Treasury to ensure that we can get pensioners on modest private pensions out of tax?

[Paul Maynard]

This is the Government who have nearly doubled the personal allowance since 2010, ensuring that most of the lowest earners do not pay income tax. Indeed, thanks to the personal allowance, around 30% of individuals do not pay tax, and of course any pensioner solely reliant on the state pension does not pay income tax.

[Mr French]

Does my hon. Friend agree with me that while the Conservatives proudly continue to support pensioners in their hard-earned retirement with the triple lock and other cost of living support measures, it is disgraceful that the Labour Mayor of London has hammered pensioners and working people in Bexley by increasing council tax by approximately £200 per year, and ultra low emission zone charges to £12.50 per day?

[Paul Maynard]

I am sure my hon. Friend agrees with me that the Mayor of London seems to spend more time paying extremely expensive salaries to some of his key employees around Greater London. Of course ULEZ has an effect on pensioners: whether they are going to the shops, visiting their family or attending hospital appointments, they will be the ones to pay the price for the Mayor’s overweening ambition.

[Kate Hollern (Blackburn) (Lab)]

In early December, my constituent was informed by the DWP that they must renew their personal independence payment entitlement. They were told that if the necessary forms were not returned by 13 January, their PIP could be stopped. On Christmas day, the DWP informed my constituent that, as the forms had not been returned, their PIP entitlement had been stopped and they owed some money. My constituent returned the forms in early January, long before the deadline, but they have had no response since then, and nor have they received their benefits. Could I implore the Minister to intervene in this astounding case and work out exactly how this error could have occurred?

[Paul Maynard]

I thank the hon. Lady for her question. If she writes to me with further details, I will ensure that the relevant Minister is able to look into the case.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

With more than 9 million pensioners now paying income tax —many, as we have just heard, as a result of frozen allowances—and almost 1 million not receiving pension credit to which they are rightly entitled, does the Minister think it might be time to improve the uptake of pension credit?

[Paul Maynard]

I am pleased to be able to say that applications to receive pension credit are currently increasing, quarter on quarter.

[Steve McCabe]

indicated dissent.

[Paul Maynard]

If the hon. Gentleman will wait and listen to the answer, I will explain what we are doing to increase uptake of pension credit. Not only do we have major nationwide campaigns, our latest one featuring Harry Redknapp; we are also carrying out experimental campaigns, such as writing to all those pensioners who are in receipt of housing benefit, to make sure that those most likely to be eligible for pension credit are being targeted to take it up.

[Alison Thewliss (Glasgow Central) (SNP)]

It is all very well people applying for pension credit, but The Well advice centre in my constituency has identified massive delays in people getting the pension credit for which they are eligible. One constituent got in touch with me in February, having applied for pension credit in August 2023, and they were still waiting for the application to be resolved, resulting in a backdating of more than £8,000. Would that money not have been much better in the pocket of a pensioner who needed it right then, rather than waiting indefinitely for the DWP to get back to them?

[Paul Maynard]

I am obviously disappointed to hear of that constituent’s experience, but it is not something I hear very often about pension credit. We have an excellent delivery record and an extremely low level of complaints.

[Anna Firth (Southend West) (Con)]

Southend’s indomitable pensioners and WASPI women Frances Neil and Deborah Dalton came to see me on Friday on behalf of the 10,000 WASPI women across Southend. With the ombudsman’s final report due within weeks, will the Secretary of State please commit to coming to the House to make a statement so that these issues can be fully aired?

[Paul Maynard]

As I am sure my hon. Friend is all too aware, I am not able to comment until the Parliamentary and Health Service Ombudsman’s report is published.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

When will this miserable Government wake up to the fact that there is a shortage of skilled labour in this country, and at the same time that we have an army of pensioners who could be retained in the workforce if they were given the right incentives to carry on working? There is a good relationship between work and staying healthy, so will the Minister act?

[Paul Maynard]

I am not sure whether the hon. Gentleman is volunteering himself for a post-Commons career, but there are many job opportunities for pensioners across the country. Indeed, many people working on attendance allowance in my part of Blackpool are in their 70s and 80s, and they are doing a fantastic job. We put an awful lot of effort, not just through the mid-life MOT but through the older worker support in our jobcentres, to make sure that we match jobseekers to the right job for them.

[Mr Speaker]

I call the shadow Minister.

[Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)]

Time and again, pensioners have been let down by this Government. They suspended the triple lock, breaking a key manifesto promise; their disastrous mini-Budget knocked hundreds of billions of pounds from pension pots; and their failure to get a grip on the cost of living means that pensioners are mainly living in cold homes over the winter and have a choice between heating or eating. Against this backdrop, is the Minister at all surprised that almost one in five pensioners are now living in poverty?

[Paul Maynard]

It is as if the shadow Minister has not noticed the almost £900 of cost of living payments made to pension credit recipients across the country over the last year. I know the Opposition have relied on last week’s Resolution Foundation report to criticise what we are doing, but this is what the report actually says:

“‘Pensioners used to be by far the most likely to be in poverty…now they are the least likely.’ This change in the relationship between old age and low income is one of the most profound social and economic changes this country has seen”.

We achieved that under this Government, not under our failed Labour predecessors.

[Hywel Williams (Arfon) (PC)]

11. What steps he is taking through the benefits system to tackle poverty in rural areas.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)]

I am always happy to have a debate with the hon. Gentleman. We sit next to each other almost every morning in Portcullis House, and I am sure that we can have a conversation.

[Rob Butler (Aylesbury) (Con)]

Aylesbury is a wonderful place to live, work, visit and invest in, but sadly we have some areas of economic deprivation. Opportunity Bucks, run by Buckinghamshire Council, has identified Aylesbury north and Aylesbury north-west as areas for extra attention, where we could improve education, training and skills. How can my hon. Friend’s Department assist such initiatives in getting more Aylesbury residents into work?

Draft Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations 2024

Paul Maynard Excerpts

Wednesday 13th March 2024 General Committees

[The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)]

I beg to move,

That the Committee has considered the draft Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations 2024.

It is a pleasure to serve under your chairmanship, Dame Maria. The regulations introduce new measures that will support trustees and sponsoring employers of defined-benefit occupational pension schemes to plan and manage their scheme’s funding over the longer term. The regulations will require trustees to send a statement of the scheme’s funding and investment strategy to the Pensions Regulator, alongside the three-yearly actuarial valuations already required. This will articulate the trustees’ approach to long-term planning and risk management.

The regulations will work with the regulator’s revised funding code of practice, aiming to strike a fair and lasting balance between providing security for members of defined-benefit schemes and affordability for the sponsoring employer.

[Sir Greg Knight (East Yorkshire) (Con)]

The explanatory memorandum states on page 7:

“There were concerns that the new regime would result in a disproportionate governance burden for small schemes”.

Does the Minister intend to address that concern?

[Paul Maynard]

My right hon. Friend makes the very fair point, which I have always been conscious of in this brief, that small schemes may occasionally get out-shouted by some of the larger schemes. Alongside the Pensions Regulator, we have engaged extensively not just with industry but with the professional bodies that are often more involved in the running of smaller schemes. I am confident we have struck the right balance between providing the clarity and assistance that trustees of smaller schemes need, and the interests of members in ensuring that they get the benefits that are due to them. It has been quite a long process to come up with this particular set of schemes and, in my view, we have struck the right balance.

As many will know, DB schemes have around £1.4 trillion of assets under management. In a world where most DB schemes are closed and maturing, it is more important than ever that sponsors and trustees work together, are clear how their promises will be met, and agree how to manage the funding and investment decisions involved. These regulations will support them to do that.

DB funding levels have indeed improved in recent years. It is important that schemes take advantage of the opportunities that that brings, and crystal-clear funding standards enable that. This package of measures aligns with the Government’s policy on investing in productive finance and the consultation on options for defined-benefit schemes.

[Mr John Baron (Basildon and Billericay) (Con)]

As somebody who has run pension fund money, I have a few concerns. One is the administrative concern raised by my right hon. Friend the Member for East Yorkshire, but this could also smack of the approach, “I’m from central office—nothing to be concerned about”—[Interruption.]

--- Later in debate ---

[Mr Baron]

Thank you, Dame Maria. I fully understand where the Government are coming from on these measures, but what assurance can the Minister give that the Pensions Regulator, if and when it intervenes, is suitably sighted of investment risk, so that it understands the pension scheme and its funding liabilities, and whether or not it has low funding capability, so that it will be a help rather than a hindrance?

[Paul Maynard]

I am grateful for that intervention. The Pensions Regulator is expert in regulating, but more than that, it recruits investment consultants, experts in covenants, and experts in risk management. It reaches out to the wider community—to not just those who run pension schemes, but those who manage the process from beginning to end. Having met with the regulator on many occasions, I am confident that it has the necessary skillset to implement its own funding guidance and ensure that it is adhered to by scheme trustees.

As I was saying as my hon. Friend intervened, DB funding levels have improved in recent years. It is important that schemes take advantage of the opportunities that brings, and crystal-clear funding standards enable that. This package of measures aligns with the Government’s policy on investing in productive finance, and the consultation on options for DB schemes. We want to encourage schemes to get the most from their assets through more productive investments, while at the same time ensuring that scheme members can be confident that they will receive the benefits that they have been promised. We know that most DB schemes are well-managed and properly funded, and that the vast majority of members will receive the promised pension.

Good practice is not universal. Some schemes still take inappropriate levels of risk. There remain around 27% of schemes, on a technical-provisions basis, that have a deficit that will need to be repaired. The regulations embrace good practice and build on the existing funding regime for DB schemes by providing clearer funding standards, which will ensure, as far as possible, that schemes are properly funded over the long term.

The regulations set out the details for the scheme funding provisions in the Pension Schemes Act 2021, the details for the funding and investment strategy, and how important metrics, such as maturity, covenant strength and low dependency, must be determined. Schemes will be required to have a funding and investment strategy that sets out the way pension benefits will be paid over the long term. That could be through buying out with an insurer, entering a super-fund, or running on with employer support.

As they were originally drafted, the regulations would have meant that one component of the reforms—recovery plans—would come into effect from April and not September. Having identified that, and to avoid potential confusion and additional administrative requirements for the small number of schemes affected, we withdrew the regulations and re-laid this revised version.

I am pleased by the positive response to the regulations from our stakeholders, and I am confident that the regulations will support schemes and sponsoring employers to make long-term plans so that their members get the retirement income that they have contributed towards and rightly expect.

--- Later in debate ---

[Paul Maynard]

I thank the shadow Minister—the hon. Member for Sheffield, Brightside and Hillsborough—and my hon. Friend the Member for Basildon and Billericay for their contributions.

I will do my best to reassure my hon. Friend. I fear he has greater expertise than me in this matter, so I may not succeed, but I am sure he will let me know. To his specific point, the funding risks taken by schemes need to be supportable by the employer. They are required to address any deficit that emerges if risks materialise. When we say “employer covenant”, we are really referring to the strength of that covenant—the financial ability to plug a gap should it occur.

The key objective of the reforms is to provide clearer and more enforceable funding standards. The regulations will define the strength of the employer covenant and set out the principles for how that is to be assessed. They will then set out a further principle for how to determine scheme liabilities. The level of risk that can be taken depends on the strength of the employer covenant and the maturity of the scheme. The regulations will require schemes, as a minimum, to have sufficient funds to have a low dependency on their sponsoring employer by the time they are significantly mature to meet the scheme’s future pension promises. That means that, under reasonably foreseeable circumstances, further employer contributions will not be expected.

[Mr Baron]

This will be my last intervention. I take on board what the Minister has said, but he still has not directly answered the bit of my question about the fluctuating fortunes of a company. I appreciate that pension schemes going forward will be funded on a low-dependency funding basis and should be fully funded from the registered date. But what assurance can he give that, if the fortunes of the company fluctuate markedly, and if the trustees are going to meet the obligations according to the explanatory memorandum, they will not find themselves in a situation where they have to continually adjust the investment risk profile of the portfolio they are overseeing to ensure that they maintain that balance during what could be difficult economic times?

[Paul Maynard]

I am sure my hon. Friend will be aware that we have seen volatility in pension schemes over recent years. Many DB schemes are now funded to surplus, to a much greater extent than has hitherto been the case, but I recognise that that will not always be in the case. Let me try to go down one level further in terms of what the regulations will prescribe in the hope of reassuring him. If I do not reassure him, I will happily invite him to the Department for a thorough going-over with officials, but let me do my best first.

The regulations are subject to the principle that the funding and investment risks taken by a scheme before the relevant date must be supportable by the employer. The relevant date is the date on which the scheme is expected to reach significant maturity. Less mature schemes, such as open schemes, can support more risk because there is more time to adjust any funding shortfalls that may emerge if the risks are realised.

The regulations amend the Occupational Pension Schemes (Scheme Funding) Regulations 2005. They require trustees and managers to follow the principle that when determining recovery plans, the period for the recovery must be set with reference to what the employer can reasonably afford. The regulations will also make it clear that when determining an appropriate recovery plan, the trustees and managers must take into account any impact on the sustainable growth of the employer.

What I draw from that, and what I hope my hon. Friend will draw from it, is that should a DB scheme find itself facing a deficit that was not anticipated, both the trustees and the managers of the scheme will have the flexibility to determine the appropriate recovery plan, and that any variation within a short period of time can be accommodated by the fund. Over a longer period, the reference date that they start their planning from should enable longer-term volatility—the ups and downs that we naturally see across time—to be smoothed out. If that does not answer my hon. Friend’s question, he can grab me at the end and he will get a speedy invite.

On the point the shadow Minister made on some of the issues around guidance more generally, we have tried to ensure that the regulations are flexible and will work well for all schemes. It is important to make the point that even mature schemes can invest in a wide range of assets as long as they reach low dependency at significant maturity. We also want the regulations to allow open schemes to take account of new entrants and future accrual when determining when the scheme will reach significant maturity. To make long-term planning and implementation easier and to avoid unnecessary administrative burden, we have given the Pensions Regulator the flexibility to ask for less detailed information depending on the circumstances of a particular scheme.

We can expect the revised DB funding code of practice to be laid before Parliament this summer, in time to come into effect from September 2024 in line with the regulations. Around the same time as the Pensions Regulator publishes its code, the regulator will also publish the fast-track parameters and the updated impact assessments. Later in the summer, the Pensions Regulator will consult on the covenant guidance. There is a whole suite of things coming up over the course of the summer, all intended to be in force ready for 22 September, when the regulations will become effective.

We are making sure, in collaboration with the regulator and the industry, that any burden is proportionate to the outcomes and reflects the particular circumstances of any individual scheme. Fundamentally, as the shadow Minister agreed, the regulations will guarantee that member benefits are protected, but that we enable defined-benefit schemes to grow as best they can to meet any funding shortfall that may occur. On that basis, I hope that I have answered everyone’s questions, and I commend the regulations to the Committee.

Question put and agreed to.

State Pension Changes: Women

Paul Maynard Excerpts

Tuesday 12th March 2024 Westminster Hall

[The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)]

It is a pleasure to serve under your chairmanship, Sir Gary. I thank the hon. Member for Strangford (Jim Shannon) for securing this debate and all Members who have contributed to it.

This has been a valuable and constructive debate focused on the issues of compensation for 1950s-born women affected by state pension age changes. I recognise that there is a huge strength of feeling among 1950s-born women about the increase to their state pension age and the way in which it was communicated. We have heard today about people who have had difficult personal circumstances to manage, and their struggles are regrettable in the extreme. I am grateful to all Members who have participated. It is important that Members on all sides are able to tell the stories of so many of their own constituents. Indeed, I pay tribute to many of my own constituents whom I have sat with and listened to on a number of occasions as they explained their circumstances. It is important that such testimony is uppermost not just in my mind as the Minister, but in the mind of Government more widely.

I note that the Member in charge of the debate, the hon. Member for Strangford, is a Northern Ireland MP. For the record, I will set out how Northern Ireland manages its own system for dealing with complaints such as this; as he will know, such matters are for the Northern Ireland Public Services Ombudsman to address. Any question relating to Northern Ireland must be directed to the relevant authorities in Northern Ireland. All DWP policy areas are transferred in Northern Ireland, including pensions. However, the equivalent Department in Northern Ireland, the Department for Communities, historically has maintained parity with the DWP on matters of social security, child maintenance and pensions.

As House is aware, the Parliamentary and Health Service Ombudsman’s investigation into state pension age communication is not complete. The date of publication is a matter for the ombudsman. As the investigation remains ongoing, I cannot comment on it, as the ombudsman’s investigations are confidential. The privacy rules extend to all parties involved in the investigation.

[Alan Brown]

The Minister is right about probity and the fact that the ombudsman’s investigations are to remain quiet. Does he accept that after stage 1 it is still in the Government’s hands to bring forward compensation? They do not have to wait until the conclusion of further stages.

[Paul Maynard]

I will come on to the sequencing and the importance of the different stages shortly, but I am reminded that the Parliamentary Commissioner Act 1967 states that ombudsman investigations that are not complete

“shall be conducted in private”.

The ombudsman has made some information about the investigation public via its website. It published the final version of stage 1 of its report on the website in July 2021. The report said that

“these women should have had at least 28 months’ more individual notice of the changes than they got.”

These findings relate to a specific window of time between August 2005 and December 2007. The report also found that

“between 1995 and 2004, DWP’s communication of changes to State Pension age reflected the standards we would expect it to meet.”

I know that there is frustration among Members of this House and their constituents about how long the investigation has been ongoing, and about the fact that the ombudsman has yet to publish his final report. It is a complex investigation that spans over 30 years, as equalisation of the state pension age was enacted in 1995. The ombudsman provides an independent complaint handling service for complaints that have not been resolved by UK Government Departments and the NHS in England. The ombudsman is managing the investigation in stages, and publication of the final report is entirely a matter for the ombudsman.

[Bob Seely]

I totally understand what the Minister is saying about the timing of the report. Can he give Members of Parliament any rough indication as to when that report will land and when it will be published?

[Paul Maynard]

As I think I have already said, the timing of the report is a matter for the ombudsman to determine. I have received no indication from the ombudsman of the timescale to which he is working, much as we would all like to know the date when it is coming.

The Department for Work and Pensions has to be mindful of its independence, but we are co-operating fully with the investigation. We believe that it is important to let the independent process conclude, so that we can then carefully consider the findings and the recommendations that may arise from the final report.

[Peter Gibson (Darlington) (Con)]

For the record, can the Minister give us a cast-iron guarantee and reassurance that his Department is fully co-operating with the ombudsman?

[Paul Maynard]

I can indeed give that assurance. As I have just said, we are fully co-operating at every stage with the ombudsman’s investigations.

[Ashley Dalton (West Lancashire) (Lab)]

I understand the Minister’s position on the specifics and the dates. It is perfectly clear that we are not going to get any indication of a timeline, but does the Minister accept that the WASPI women paid their dues and did their part? We have already seen that maladministration has been found. Do the Government accept that a trust on which our entire democracy is built has been broken, and that WASPI women deserve justice as soon as they possibly can?

[Paul Maynard]

I very much hear what the hon. Lady says. The whole point of the ombudsman’s investigations is to determine the outcome of that process and how justice is to be delivered.

[Patricia Gibson]

As has happened with other judgments in a legal context, will the Minister commit his Government at the very minimum to implementing the judgment of the ombudsman? Or will they try to fight it, obfuscate and kick it into the long grass?

[Paul Maynard]

I am sure the hon. Lady will appreciate the principle that until a final report is published and until we know the contents of that report, I—as a Government Minister with a duty to manage public money properly—cannot make any such commitment as she describes.

[Joanna Cherry]

The Minister is hiding behind the need to wait until the final report is out, but at around the time of the stage 1 report, the PHSO said that Ministers could be proactive in finding a remedy for 1950s women. What does the Minister say to that?

[Paul Maynard]

I certainly do not believe that I am hiding behind anything. The ombudsman’s inquiry is going through the processes that the ombudsman itself has set out.

[Justin Madders]

Will the Minister give way?

[Paul Maynard]

I have given way a number of times, and I have been very generous. I am conscious that I need to finish my contribution and allow the hon. Member for Strangford to comment. I am sorry, and if there is time towards the end I will try to give way, but I need to set out the factual information that Members have been asking me to deliver, so I will make some progress.

The announcement in 1993 of the decision to equalise the state pension age addressed a long-standing inequality between men and women. Changes to state pension age were made over a series of Acts by successive Governments, following public consultations and debates in both Houses of Parliament. All women after 5 April 1950 and all men born after 5 December 1953 are impacted by state pension age changes. The state pension age is currently 66, and is due to rise to the age of 67 between 2026 and 2028, as confirmed by the recent Government review of state pension age. The Government also committed in the last review to conduct a further review within two years of the next Government, to consider the age of 68. The further review will be able to consider the very latest evidence.

The reforms have focused on maintaining the right balance between the affordability and sustainability of the state pension, and fairness between generations. Women retiring today can still expect to receive the state pension, but over 21 years on average, which is over two years longer than men. If equalisation had not taken place, upon reaching the age of 60 women would be expected to spend on average over 40% of their adult lives in receipt of the state pension.

I will say a few words about the processes of the ombudsman’s investigation, for clarification and to place them on the record. The Parliamentary and Health Service Ombudsman published its stage 1 report on 20 July 2021. PHSO found maladministration in the steps that the Department took between 2005 and 2007 in relation to notifying the women affected. In December 2022, the PHSO submitted its stage 2 findings and the original stage 3 findings for comment, and published a high-level summary on its website, concluding that the maladministration had caused injustice.

Following the PHSO’s stage 2 findings in December 2022, the WASPI campaign initiated judicial review proceedings against the PHSO, arguing that the ombudsman’s approach to calculating when letters should have been sent ignored pauses in the DWP’s letter-writing campaign, which meant that women should have had notice far earlier than the ombudsman had assumed and could therefore have made different decisions to avoid some of the financial impact. Following an agreement between WASPI and the PHSO, the High Court granted a consent order quashing the PHSO’s final stage 2 report in May 2023. The consent order specifically requested that the PHSO revisited those sections of the stage 2 report dealing with the 28-month delay calculation. The stage 3 provisional view on remedy had not been finalised by the PHSO, so it did not require consideration by the court.

We responded to the provisional stage 3 report in early February 2023. The PHSO sent all parties to the complaint a revised provisional stage 2 report in November 2023. That is the report whose publication we await.

[Gavin Newlands]

Will the Minister give way?

[Paul Maynard]

I have already given way, and I am running out of time. I do apologise.

I have listened carefully to the arguments that have been made today. I would like to set out further the range of support available both for those making provision for their retirement and for those who have reached state pension age.

In 2016, the state pension was reformed with the introduction of a new state pension to be simpler and more sustainable. It had the clear objective of providing the foundation for private saving. In this way, the state provides a base to which people can add to provide the pension they want through their retirement.

The new state pension improves outcomes for many women, carers and self-employed people, who often did less well in the past. State pension outcomes are projected to equalise for men and women more than a decade earlier than they would have under the old system. On average, women receiving the new state pension receive about £18 a week more than women under the pre-2016 system. Under the new state pension system, women currently receive an average of 97% of the amount that men receive, compared with 85% under the pre-2016 system.

Automatic enrolment has helped millions more women to save with a pension, many for the first time. Participation rates for women are catching up with those for men. Pensions participation among eligible women working in the private sector was at 86% in 2022, up from 40% in 2012.

Pension credit is extra money to help with daily living costs for people over state pension age and on a low income. It tops up a person’s other income to a minimum of £201.05 a week for single pensioners and £306.85 a week for couples. People with a severe disability, carers and those who are responsible for a child or young person who lives with them can get more. Pension credit can also include extra amounts for certain housing costs such as ground rent or service charges. The pension credit case load is just under 1.4 million people, of whom 66% are female; in fact, of the total case load, 63% are single women. People receiving pension credit may also get help with other costs, including rent, via housing benefit, and council tax.

The latest statistics show that by 2021-22, the poverty rate for pensioners had decreased by two percentage points since 2010. For both female and male pensioners, there was a decrease of two percentage points over the same period. In 2021-22, there were 200,000 fewer pensioners in absolute poverty, after housing costs, than in 2010. By 2024-25, working-age and extra-costs disability benefit rates will increase by 6.7%, and relevant state pension rates, including the standard minimum guarantee in pension credit, by 8.5%, following the 10.1% increase in April 2023.

[John McDonnell]

Will the Minister give way?

[Paul Maynard]

I am about to conclude, because I have only a minute left before the hon. Member for Strangford needs to have his concluding say.

I thank the hon. Member for Strangford for raising such an important issue, which I know concerns very many people—thousands across each of our constituencies. I have the greatest sympathy for anyone who has found themselves in difficult circumstances, but I believe that the welfare state can be and is effective in providing support for those who need it. In particular, there is a range of established support that this Government provide for people either nearing or over state pension age. Additionally, we have made cost of living payments available to those who are most vulnerable.

As I have outlined, the Government take the matter of state pension age extremely seriously. The Department is committed to giving the best service it can, and we will very carefully consider the ombudsman’s final report.

Draft Occupational Pension Schemes (Collective Money Purchase Schemes) (Amendment) Regulations 2023

Paul Maynard Excerpts

Tuesday 27th February 2024 General Committees

[The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)]

I beg to move,

That the Committee has considered the draft Occupational Pension Schemes (Collective Money Purchase Schemes) (Amendment) Regulations 2023.

It is a pleasure to serve under your chairmanship, Mrs Harris. The instrument clarifies requirements on trustees of authorised collective money purchase schemes, which are more commonly known as collective defined contribution or CDC schemes. The Government believe CDC schemes have an important role in the future of pensions in this country. CDC schemes offer members a seamless transition to the regular retirement income that we know many want, without the need for complex financial decisions that many are ill equipped to make.

The Government want to ensure that as many savers as possible can take advantage of the numerous benefits of CDC. By pooling longevity and investment risk across their membership, CDC schemes can shield savers from much of the uncertainty faced by members of DC schemes, which allows the CDC schemes to target higher investment returns. As part of our Mansion House reforms, that will help to unlock capital for our most promising industries and increase returns for savers, supporting growth across the wider economy.

The Pension Schemes Act 2021 provided the legislative framework for single or connected employer CDC schemes to be set up in the UK. Those regulations came into force on 1 August 2022, enabling such schemes to apply for authorisation from the Pensions Regulator. Throughout the development of our policy, the Government have engaged with stakeholders on how best to deliver CDC in the UK and invited challenge and scrutiny. In that vein, we have been helpfully advised that two areas of the current framework do not meet our published policy intent. CDC schemes can only succeed if there is confidence in this new type of provision. The technical changes made by this instrument ensure that prospective schemes are set up to work as we intend from the start.

Turning to the first amendment made by this instrument, the existing regulations make provision in relation to the annual actuarial valuation and benefit adjustment process for CDC schemes. That means that, each year, benefits are reviewed and adjusted where required, so that the value of assets held is in balance with the projected costs of benefits. It is important that a balance is maintained between the value of the available assets of the scheme and the amount needed to provide the target benefits to members on an ongoing basis.

The policy intention is to provide that, where a cut to benefits must be made due to an economic downturn, the trustees of the CDC scheme can smooth the impact of the benefits cuts on members over three years. That is called a multi-annual reduction. The mechanism helps to reduce volatility and to ensure that current and future benefits remain relatively stable, in contrast with individual DC schemes, which have no pension smoothing mechanism. Members of those schemes experience the full impact of falls in investments as they happen, which can lead to a significant reduction in the value of their retirement savings immediately. For savers closer to retirement, that may be unrecoverable.

The intention is that, where a market recovers during a multi-annual reduction, increases in benefits resulting from a subsequent annual valuation would first be offset, in whole or in part, against the remaining planned cuts under the multi-year adjustment before any remaining increase can be applied as an increase to future benefits in the normal way. If we did not do that, the benefits of the recovery would likely go to future pensioners. That would run against our principle that, as far as possible, all members—that is, current pensioners, those who are currently accruing benefits and those who are not contributing, but have rights to a future pension from the scheme—should all share in the upsides and downsides at the same time. The instrument also ensures that information about any multi-annual reduction and subsequent offsetting must be reported to the Pensions Regulator in the actuarial valuation to ensure proper oversight.

The second amendment ensures that, when a scheme winds up, a beneficiary’s accrued rights are transferred to suitable pension schemes or alternative payment arrangements. A key element of the wind-up process is calculating the share of the fund for each person who is a beneficiary at that time. The scheme rules may provide that that person be a member, but could include a spouse, a child or a person financially dependent on the deceased beneficiary. Our intention has always been that if that beneficiary dies during the winding-up period, the pot allocated to them will not be extinguished but be reallocated among their successors, where a scheme’s rules provide for that.

In conclusion, CDC schemes are an important addition to the UK pensions landscape. When well designed and well run, they have the potential to provide a good retirement outcome for members. The draft instrument will provide clarity for schemes moving forward by more accurately reflecting our intent.

--- Later in debate ---

[Paul Maynard]

I echo the hon. Lady’s comments on Royal Mail, the late Jack Dromey and the Communication Workers Union ushering the CDC initial vehicle almost to its delivery. I think it is coming very soon—in just a few weeks, if not months.

I can confirm that we have worked closely with the Treasury to ensure that we get in place all the wider regulations needed, particularly for multi-employer trusts, which are slightly more complex than Royal Mail, and indeed even those that might cover a whole profession with a range of similar characteristics. That work is ongoing with the Treasury, and I stress that the draft regulations are part of it. On that note, having answered that point, I commend the regulations to the Committee.

Question put and agreed to.

Child Maintenance Service

Paul Maynard Excerpts

Tuesday 27th February 2024 Westminster Hall

[The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)]

Provided that you cough strategically, Sir Charles, because my eyesight—

[Sir Charles Walker (in the Chair)]

I will—I actually have a cold, so I will be coughing and sniffling throughout.

[Paul Maynard]

My eyesight cannot quite determine the numbers on the clock any more—such is my venerable age. It is a pleasure to serve under your chairmanship, Sir Charles. I thank the right hon. Member for East Ham (Sir Stephen Timms) and my hon. Friend the Member for Stroud (Siobhan Baillie) for applying to the Backbench Business Committee to obtain this debate, and all hon. Members for their participation.

We have had a constructive, wide-ranging and, for my part, very interesting debate. We have discussed the original findings of the Select Committee report, which I very much enjoyed reading. Indeed, I always enjoy reading difficult, challenging reports when they are not in my brief, because I find them much more reassuring to read knowing that thinking is going on. We discussed the Government’s response at the time, the progress since that response, what is being done and how far that has got.

I will try to cover as many themes as have been raised today, but if I run out of time or there is insufficient detail, I will make sure that we write to all hon. Members. I know that Viscount Younger has already spoken to the right hon. Member for East Ham to have a further briefing. I am sure that all hon. Members here today will be interested in what Viscount Younger has to say, so I will try to ensure that all that information is properly communicated.

I do not normally do this, but I particularly thank the hon. Member for Wirral South (Alison McGovern) for speaking in such glowing terms about my letter to her. There were some helpful comments about the progress the Government have been making. That might give other hon. Members some optimism that things are moving in a more rapid direction than they might hitherto have realised.

The Child Maintenance Service makes a real difference to the life chances of many thousands of children. That is why we are reforming it for the long term on an ongoing basis to continually improve outcomes. The service plays a crucial role in securing financial support for children when parents have separated, mandating and, when necessary, enforcing arrangements so that money flows from paying parents to receiving parents, which can benefit children and help prevent them falling into poverty. Indeed, payments for both child maintenance and private arrangements delivered an estimated £2.6 billion annually to parents between 2020 and 2022, keeping around 160,000 children out of poverty.

The vast majority of parents strive each and every day to give their children the best possible start in life. Those who shirk the financial responsibilities they have for their children must be quickly held to account. That is why we continue to improve the Child Maintenance Service to ensure it works as effectively and efficiently as possible. However, it is currently still too easy for parents to avoid paying up if their income does not come through normal PAYE. That is why we are looking at changing the rules so that child maintenance calculations include a much broader range of earnings, such as property income.

We recognise that some parents will find it more difficult to afford their payments if they have built up substantial arrears. The Child Maintenance Service will continue to prioritise collection of ongoing maintenance, but we have committed to reviewing the calculation. We have begun the process of updating the underlying research to consider how we ensure the calculation reflects current and future societal trends. Any changes made to the child maintenance calculation will require amendments to both primary and secondary legislation. The calculation formula underpins every Child Maintenance Service case. Furthermore, those with private arrangements can also use the online calculator to get an estimate to inform their own arrangement, which is doubly crucial. It is essential, therefore, that we undertake a thorough and comprehensive review of the calculation formula and consider the potential impacts on all parents and children. That requires time to ensure we take an informed and co-ordinated approach, to ensure the calculation is fit for purpose and future-proofed.

[Peter Grant]

Clearly, there has been an error at set-up that the calculation needs primary legislation to be updated. Given that it is now 25 years out of date, is it not time to bring forward legislation to change it once and for all, so that future changes can be made through secondary legislation or by other means? There have been examples recently where other DWP payments were uprated through statutory instruments and it did not take nearly as much bureaucracy to get that done. We should be able to do that with the child maintenance system as well.

[Paul Maynard]

The hon. Member makes an interesting point that may risk becoming a digression. I note that the secondary legislation he refers to is regarding automatic uprating of particular indicators. This is a more fundamental change to how the entire structure of child maintenance is conducted, so is perhaps not suited to secondary legislation. We often hear criticism that too much goes through secondary legislation, unscrutinised by this place. As a Member rather than a Minister, I always think that I would rather such a fundamental change be scrutinised properly in the form of a Government Bill. That is an important point.

[Sir Stephen Timms]

Will the Minister give way?

[Paul Maynard]

I will. I am in danger of making things up now, which I should not do.

[Sir Stephen Timms]

I take the point entirely about the complexity of the review’s underlying formula, which the Minister has just been talking about. Can he give us any sense of how long he envisages that review will take to complete?

[Paul Maynard]

I have made a lot of comments today about the drumbeat of ongoing changes and how we implement some of the private Members’ Bills that have gone through, for example. I hear what the right hon. Gentleman says about the progress and the drumbeat, but I am not sufficiently close to the actual data and the information that he seeks. I will ensure that he is written to, along with other Members present today. I am sure that will be discussed when he meets Viscount Younger.

[Alison McGovern]

While I am pleased to have cheered the Minister up, I can assure him that I will certainly be giving the Government down the banks yet again. But that exact point is why I thought it would be helpful if we could have some sort of regular update out of this debate. Can the Minister feed that back to the Secretary of State, if necessary? I am sure it can be discussed whether that is a statement that the Government place in the Library or a regular update to the Select Committee, but for those reasons, Members need to know what is happening with the different streams of improvement to the service.

[Paul Maynard]

I have already heard that point, and in my preparation for the debate, I noted the complexity and the number of workstreams going on in this area. I will certainly take that point back to the Department. Another theme that we have heard today is the importance of not just having an enforcement process but having an efficient and effective one. That is done partly by deciding what actions are appropriate on a case-by-case basis and using the existing powers that have the greatest chance of ensuring that parents meet their obligations to pay for their children.

The CMS has made a number of improvements to processes, for example by making better use of deduction from earnings orders so that they can be set up faster. The CMS has also brought forward the point at which deductions from bank accounts are made, which not only has increased the volume of deductions from bank accounts but means getting money to children faster. Working alongside His Majesty’s Courts and Tribunals Service, the Child Maintenance Service has improved court processing times by introducing virtual court presenting and the electronic exchange of documentation.

Following the Child Support (Enforcement) Act 2023, the Government propose to bring into force a legislative change to accelerate the enforcement process. The change will introduce a simpler administrative process to obtain a liability order against those paying parents who actively avoid their responsibilities. That will enable the CMS to take faster enforcement action, affecting at least 10,000 cases a year. They will also publish a consultation shortly on how the Child Maintenance Service collects and transfers payments to support survivors of domestic abuse, following the Child Support Collection (Domestic Abuse) Act 2023 receiving Royal Assent.

In addition, operating a scheme where parents are not paying their maintenance liability and where the Government guarantee child maintenance payments is not the intent of the Child Maintenance Service’s policy, which is the philosophical issue that we are stressing. The role of the CMS is to encourage parents to take financial responsibility for their children. The scheme is designed to encourage parents to agree their own family-based arrangements wherever possible, and that tends to be in the best interests of children. The CMS must always work in the best interests of children. The statutory scheme exists as a fall-back if parents are unable to reach those voluntary arrangements. The Government do not believe that the state covering the shortfall of unpaid maintenance is the right way to target additional funding appropriately, given that there is no means test for receiving parents.

We are also bringing the Child Maintenance Service into the modern age, having made a number of improvements to ensure that it delivers to the highest standard with a more digital customer focus. In order to get help arranging child maintenance on the digital service, which is available 24 hours a day, seven days a week, we are making it more accessible for parents to decide what type of arrangement is most suitable for them and to make an application online. Those improvements have already seen new applications rise by 13% in the year to September 2023, and I look forward to seeing further progress in the future. That is a welcome increase that we expect to continue with the removal of the £20 application fee. The upgraded online service allows customers to access and maintain their CMS cases themselves. Twenty-six different changes of circumstances can now be reported online. The advantage of digital systems means the service is, as I have said, available 24 hours a day. Many customer requests are now fully automated, so it is much quicker for parents to manage their own arrangements.

We have also, as I have said, improved the speeding up of enforcement processes. In the quarter ending September 2023, around £23.5 million—more than half—of the child maintenance collected through collect and pay was from parents who had a deduction from earnings order in place at the end of the quarter. Those improvements deliver a modern and efficient service for customers while enabling caseworkers to focus on parents who have more complex issues.

I will try to deal with specific issues that were raised. I might not succeed in three minutes, but I will at least try. I can confirm that the £20 fee has been removed as of yesterday, along with the eradication of debts of £7 and under, which we achieved through delegated legislation—the draft Child Support (Management of Payments and Arrears and Fees) (Amendment) Regulations 2023.

I was equally as concerned as the right hon. Member for East Ham to hear of the case of Rachel Parkin regarding the continuity of the support that she received from that single nominated caseworker. The Department will write to the Chair of the Select Committee to make sure that we properly understand that case and what can be done about it. There will be more to come on that point.

I was asked for updates on the progress of various Acts. It might be unhelpful to confirm that consultations are ongoing, because we want the measures to be proportionate, robust and targeted appropriately. It is never easy to rush consultations through. We are often criticised should we rush a consultation. Equally, I understand, not least from when I was a Back Bencher, that when final reports have been issued by the Government, people like to see action, so that point has been heard. I do not wish to pre-empt any Government decisions on curfews—those are not mine to take—nor would I wish to pre-empt the meeting of the former Secretary of State, my right hon. Friend the Member for Suffolk Coastal (Dr Coffey), with Viscount Younger when that will be fully discussed, I have no doubt. I, like her, await the outcome with great interest on what is discussed.

I have been told I now have one minute left, not three minutes. I would love to talk about fraud, but one point I have observed from my own casework is that very often people know that something is not right. They have suspicions that fraud might be occurring, but when they engage with the CMS it is not always taken forward. One thing that we hope to be able to do by the end of this month, in order to avoid vexatious frauds, is to provide to those making claims an illustrative list of evidence that the financial investigations unit will require to take an investigation forward. That then avoids the disappointment when someone thinks that something is going on, but they cannot prove it. I think that will help the individual stuck in that situation and perhaps also our caseworkers who try to guide people who ring our offices on how to go about it.

Anything that I have not covered I will cover in a letter to Members. On that note, I will sit down.

Automatic Enrolment: Earnings Trigger and Qualifying Earnings Band Review 2024/25 and Alternative Qu

Paul Maynard Excerpts

Tuesday 6th February 2024 Written Statements

[The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)]

Automatic enrolment (AE) into workplace pensions has been a great success to date. Since 2012 over 11 million people have been enrolled into a pension and over 2.3 million employers have met their automatic enrolment duties. Since the introduction of AE, total annual pension saving by eligible employees has increased by nearly £29 billion in real terms. The Government remain committed to building on this achievement and to transforming retirement prospects for millions of workers.

The main focus of this year’s annual review of the AE earnings trigger and lower and upper earnings limits of the qualifying earnings band (the AE thresholds) has been to ensure the continued stability of the policy in light of prevailing economic factors. We want to ensure that our approach continues to enable individuals, for whom it makes economic sense, to save towards their pensions while ensuring affordability for employers and taxpayers. The review has concluded that all AE thresholds for 2024-25 will be maintained at their 2023-24 levels. This is consistent with our ambitions to build a stronger, more inclusive savings culture that enables people to have greater financial security in retirement.

The 2024-25 annual thresholds

The automatic enrolment earnings trigger will remain at £10,000.

The lower earnings limit of the qualifying earnings band will remain at £6,240.

The upper earnings limit of the qualifying earnings band will remain at £50,270.

The alternative quality requirement triennial review

In accordance with the statutory timetable, we have also conducted a review of the regulations that introduced the alternative quality requirements for pension schemes being used for automatic enrolment into workplace pensions.

This review concluded that the alternative quality requirements for UK defined-benefit schemes set out in regulations, made under section 23A(1) of the Pensions Act 2008, should continue to remain in place without changes at this time.

The review also concluded that the tests set out in section 28(2A) of the Pensions Act 2008 continue to be satisfied.

The analysis supporting the thresholds review and the Government response to the call for evidence for the alternative quality requirements reviews will be published and copies placed in the Library of the House. They will both be available on the www.gov.uk website, following publication.

[HCWS244]

Oral Answers to Questions

Paul Maynard Excerpts

Monday 5th February 2024 Commons Chamber

[Helen Morgan (North Shropshire) (LD)]

3. What assessment he has made of the effectiveness of the Child Maintenance Service in collecting child maintenance payments.

[The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)]

The Government are dedicated to ensuring that parents meet their obligations to children, and we take robust enforcement action against those who do not. Parents who paid some maintenance on the collect and pay service increased from 64% to 69% over the 12 months from September 2022.

[Helen Morgan]

My constituent’s daughter is a young lady who has missed out for more than a year on child maintenance payments, because her father changed jobs and the Child Maintenance Service lost track of him. My team have been involved, and despite lots of faffing, she still has not received a payment. She is one of around half of children in separated families who are not receiving the maintenance payments they deserve. Will the Minister explain what his Department is doing to ensure that the employers of these missing parents are properly chased up?

[Paul Maynard]

Where parents have certain categories of taxable income not being captured by the standard child maintenance calculation, they can make a request to the CMS to have the calculation varied. We have consulted on proposals to include more types of taxable income held by His Majesty’s Revenue and Customs in the standard maintenance calculation.

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

The Department has a number of ways to try to get paying parents to cough up, and we must remember that this is cash for the children. In July 2022, the Government consulted on child maintenance and improving our enforcement powers through the commencement of curfew orders, and we still have not had a response to that consultation. I would be grateful to hear from the Government when they plan to respond, and I remind them of the other powers in place, such as depriving people of the ability to drive or of their passport. This is a simple thing, where people have the money and will not cough up the cash. I think we need to get on with curfew orders.

[Paul Maynard]

My right hon. Friend is quite right that the Government have consulted on the use of curfews, which are complex and interact with numerous Government services. Several enforcement initiatives aimed at improving compliance are currently in train, and we need to get those in place and assess their effects before we can best see how curfews might fit with them. I note her enthusiasm for curfews and might well put her in touch with Viscount Younger of Leckie, the Minister in the Lords, whose policy brief this is, so that he can update her on our latest thinking.

[Peter Grant (Glenrothes) (SNP)]

4. What recent assessment he has made of the adequacy of levels of benefits.

--- Later in debate ---

[Mr Rob Roberts (Delyn) (Ind)]

14. What recent assessment he has made of the potential cost of restoring parity in the level of state pension received by UK citizens living overseas.

[The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)]

According to the latest estimate, based on data from March 2022, uprating the state pension where we do not currently do so would cost about £0.9 billion a year if all UK state pensions in payment were increased to current UK levels.

[Mr Roberts]

Following our withdrawal from the EU, we are rightly able to move closer to our partners in the Commonwealth. One way in which we could do that would be to confirm that all British citizens who live in the Commonwealth should be entitled to the appropriate uprating of their state pensions as if they were still in the UK. That would seem to be a matter of simple fairness. Will the Minister meet me to discuss the practicalities of making it happen, and restoring some much-needed common sense to a needlessly complicated situation?

[Paul Maynard]

The UK Government continue to uprate state pensions when there is a legal requirement for that to be done, and have no plans to change their long-standing policy or enter into new reciprocal social security agreements.

[Kerry McCarthy (Bristol East) (Lab)]

15. If he will take steps to simplify the benefits claims process for cancer patients.

--- Later in debate ---

[David Linden (Glasgow East) (SNP)]

Last month, a report by the pension provider Royal London showed that women lose, on average, £92,000 as a result of juggling part-time work and childcare. What are the Government going to do about that?

[The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)]

As the hon. Gentleman will have heard earlier, the proportion of women saving for their pensions has gone from 40% 10 years ago to 89% now.

[Dr James Davies (Vale of Clwyd) (Con)]

T7. People with disabilities often take on voluntary roles, as there can be societal barriers to gaining employment. My constituent Philippa has a son with Down’s syndrome who volunteers, providing much-valued music workshops for local children. How can the Minister ensure that the work of people with disabilities is properly recognised in the workplace?

[Peter Grant (Glenrothes) (SNP)]

T2.     Fife Gingerbread, based in my constituency, contacted me to point out that most of the provisions in the Child Support Collection (Domestic Abuse) Act 2023, which was unanimously agreed by the House and received Royal Assent at the end of June last year, have still not been brought into force. That means that far too many vulnerable people who want to make a claim through the Child Maintenance Service find that abusive ex-partners use it to control their behaviour. Why is it taking so long to put in place the measures in the Act?

[Paul Maynard]

I can confirm to the hon. Gentleman that the Child Maintenance Service has a domestic abuse plan to ensure that parents are not placed in danger as a consequence of any suggestion of domestic violence; for example, it has a centralised sort code to limit the risk of parental involvement.

[Jonathan Gullis (Stoke-on-Trent North) (Con)]

I wish to place on record my thanks to the Secretary of State for helping to guide my private Member’s Bill through Parliament. It lowers the pension auto-enrolment age from 22 to 18, and abolishes the lower earnings threshold. Briefly, has the Secretary of State received reassurances from the Chancellor that the necessary forms will be implemented in the spring Budget?

--- Later in debate ---

[Marco Longhi (Dudley North) (Con)]

T9. In 2005, the DWP failed to make a reasonable decision about targeting information at the women affected by state pension age changes. The ombudsman ruled that there was maladministration. These women, in Dudley and around the country, deserve more than just an apology. Does the Minister accept these findings, and if not, will he explain why not?

[Paul Maynard]

The Department is co-operating with the Parliamentary and Health Service Ombudsman investigation, which is ongoing, and it would not be appropriate to comment on it or the outcome.

[Jessica Morden (Newport East) (Lab)]

T8. My constituent’s universal credit payments have been stopped over Christmas for two years running, because her employer pays her salary early in December. Why will Ministers not do more to ensure that caseworkers know that they can use the discretion that they have, so that my constituents and others like her have financial certainty at what is a very difficult time of year?

Coastal and Rural Communities: Employment

Paul Maynard Excerpts

Thursday 1st February 2024 Westminster Hall

[The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)]

It is a pleasure to serve under you in the Chair, Dr Huq. Congratulations to my hon. Friend the Member for Ynys Môn (Virginia Crosbie) on securing the debate and to the Backbench Business Committee on allowing it to take place. The shadow Minister, the hon. Member for Lewisham, Deptford (Vicky Foxcroft), is right: I am an expert on this issue, not least as an MP for Blackpool—how much more seaside can you get than Blackpool?

My hon. Friend the Member for Ynys Môn and my hon. Friend the Member for Waveney (Peter Aldous) set out in great detail how the issue impacts every single Department. Not a single one was missed off their list, apart from, perhaps, the Attorney General’s Office. I am sure that if they had been that bit more creative, they could have found a way to connect the issue to it.

The word “employment” in the title of today’s debate perhaps explains why I am here, or rather, why the Department that I represent is here today through me. But as a Blackpool MP, I know full well that when we say “employment”, we are really talking about public health matters, transport, and housing above all else. The root of every social evil always seems to come back to housing in some way, shape or form, particularly in seaside towns, which have older, more dense populations. There is a heritage of mass tourism—that has now passed away, sadly—and often, that is about housing as well. As a Department, we are very aware that we have to spread opportunity, unlock the economic potential across every corner of the country and recognise the unique opportunities and challenges, including employment, that our rural and coastal areas experience.

As for Ynys Môn, in particular, my hon. Friend the Member for Ynys Môn set out in great detail all the different opportunities and concerns and the potential that is out there and that her district needs. Yet it is also clear that however picturesque or beautiful an area is, beauty alone does not pay the bills. We can gaze at the beautiful Lake district, the hills, from Blackpool. That does not fill the pockets of my local hotels or hospitality sector, which have gone through a very turbulent time in recent years.

The Department is working to support employment across the country, including our rural and coastal geographies. We want everyone who can work to be able to find a job, progress in work and thrive in the labour market. We know that transport can be a significant barrier to accessing work and training opportunities, and individuals on low incomes are especially affected by that. My hon. Friend the Member for Waveney was right; many coastal towns are indeed at the end of the line. I think there was a Conservative report entitled that when we were in opposition and a Labour report entitled that when it was in opposition—it is almost a cliché. But it is not true of Blackpool. We are the end of two lines—one line stops at Blackpool North and one at Blackpool South. But we are still the end of lines, and he is right to make that point.

Our rural and coastal communities also face more limited digital connectivity. Frequently, there is a high dependency on a single local industry for employment, and there are immense challenges around seasonal work. Rural and coastal populations are also disproportionately older, with implications for health and social care needs, and there are difficulties recruiting health professionals. It is always abundantly clear to me, when I speak to any public sector employers in my town, that they have a recruitment problem merely because of geography, because half of their hinterland is the sea and no one lives in the sea, to state the obvious. They immediately have a much harder task recruiting people.

Our rural and coastal areas are also rich in economic potential, home to strong communities and businesses, natural environment and heritage. Although productivity and earnings are, on average, lower in rural and coastal areas, rural areas also have a higher employment rate than urban areas. Employment rates in rural and coastal areas have increased since 2010.

The Department for Work and Pensions offers a national programme of welfare and employment support, with a strong place-based presence through our Jobcentre Plus network in 37 districts across Britain. The core jobcentre offer includes face-to-face meetings with work coaches and tailored support for different groups, including claimants aged 16 to 24, 50-plus claimants, disabled people and people with health conditions, and those in work and on low pay.

The Government are committed to supporting individuals who are in low-paid work to progress, increase their earnings and move into better-paid, quality jobs. For working universal credit claimants, we have introduced the in-work progression offer to give claimants additional Access to Work coaches focused on removing barriers to progression and considering skills gaps and training opportunities. However, we want to go further to see even more people fulfil their potential. We have made significant investments in the past year with an ambitious package of employment support, with more help for those over 50 and for disabled people and those with long-term ill health needs, including in rural and coastal areas.

Through jobcentres, we offer additional work coach time for eligible 50-plus jobseekers on universal credit to provide more intensive, tailored support during the first nine months of their claim. We have dedicated 50PLUS champions working out of every jobcentre across Great Britain. Those champions support and upskill work coaches and engage with employer-facing staff to tailor provision and recruitment, and to develop opportunities for those aged 50-plus to take up roles in key local sectors such as care and housing.

The Government have an ambitious programme of initiatives to support disabled people and people with health conditions to start, stay and succeed in work. The programme includes increased work coach support and disability employment advisers in jobcentres; the Work and Health programme and intensive personalised employment support; Access to Work grants; Disability Confident; the information and advice service; employment advice in NHS talking therapies—the list is endless.

We announced even more support targeted at that group at both the spring Budget and the autumn statement last year. That includes: expanding the existing additional work coach support programme; introducing universal support, a new supported employment programme for disabled people and people with long-term health conditions in England and Wales, matching participants with open-market jobs and funding support and training; launching WorkWell, which will bring together the NHS, local authorities and other partners in collaboration with jobcentres; expanding access to mental health services, increasing the number of people accessing NHS talking therapies and individual placement and support; and introducing employment advisers to musculoskeletal condition services in England.

Although individuals and businesses across rural and coastal geographies will benefit from all those measures, the DWP also offers a place-based, targeted approach to ensure that support is available and relevant to those who need it, wherever they live. The DWP has local teams that specialise in working in partnership with local authorities, creating links to local communities to understand their needs and tailor their provision to the local labour market.

For example, to mitigate the local transport challenges that we have heard mentioned, the Jobcentre Plus travel discount card is available to DWP customers, giving a 50% discount on the majority of train journeys. Many bus operators also accept the card for discounts.

Our flexible support fund can cover the first three months’ travel costs for claimants starting work to support them in the early stages of employment. The fund can also be used to purchase a pedal or electric bike where there are restricted levels of public transport available and the claimant does not drive. Of course, there is also the access to work grant, which is available to customers with a disability who are starting a job or are in employment. That can pay for help getting to and from work as well.

The Department is also working with colleagues across Government to further minimise transport barriers to labour market participation. Close collaboration between local jobcentres, DFT and local transport authorities ensured that the development of local bus service improvement plans was informed by DWP insights into which key employment opportunities are limited by transport barriers.

Jobcentres also run sector-based work academy programmes, working in partnership with local employers and training providers to offer people valuable training, work experience and a guaranteed interview for genuine vacancies. This place-based approach enables jobcentres to connect local people and businesses, providing a pipeline of skilled labour that is relevant to the needs of local sectors. We work closely with businesses across an array of different sectors, including traditional rural and coastal industries such as farming and tourism. For example, DWP is supporting DEFRA to develop and deliver a long-term recruitment strategy for the agricultural sector that will help domestic workers into both seasonal and long-term roles.

More widely, the Government have supported coastal communities to level up through dedicated funding under the coastal communities fund and the coastal revival fund, and additional funding under the welcome back fund. The levelling-up fund has provided around £1 billion to projects in coastal areas, and over £400 million has come through the UK shared prosperity fund to local authorities within or serving coastal areas of England. However, it is not just about the funds. Perhaps unsur-prisingly, 11 out of our 12 freeports are in coastal areas, but seven out of the 20 current levelling-up partnerships are also in coastal areas, demonstrating our deep commitment to unlocking the economic potential of coastal communities.

The Government are committed to levelling up employment across all parts of the country, including our vital rural and coastal areas. We want everyone to access opportunities to better their lives, wherever they live. We will continue to deliver extensive employment support that we know works in supporting people to enter and progress in the labour market, including tailored help from jobcentres to meet the needs of individuals and businesses in each area.

I look forward to working with all colleagues across the House—as does the Minister for Employment, my hon. Friend the Member for Bury St Edmunds (Jo Churchill)—to continue to support people across our communities so that they can prosper. I want to thank again my hon. Friend the Member for Ynys Môn for securing this debate, and I thank all those who have participated.