Pensions Uprating (UK Pensioners Living Overseas)
Debate between Peter Bottomley and Shailesh Vara(8 years, 6 months ago)
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Sir Peter Bottomley
The House and the Minister will recall that each year a statutory instrument, or equivalent legislation, is brought before the House to continue the policy, so none of us can say we are blameless. The fact that a small minority of us have so far been voting against what the Government propose to Parliament is our fault for not recruiting more people. The best people to recruit would be the Chancellor and the Prime Minister, and then the Ministers at the Department for Work and Pensions who have to face up for the Government and will be able to pass the responsibility on to those who carry the responsibility—the most senior Ministers in Government.
Mr Vara
I am grateful to both hon. Members for clarifying that point. I was simply pointing out an inconsistency on the Order Paper. For the sake of good order, I wanted to make clear that although yearly decisions have been taken by the Government, they are consistent with the policy undertaken by successive Governments from both sides of the House.
The UK state pension is exportable worldwide, regardless of recipients’ countries of residence or nationality. Successive Governments have taken the view that all those who have worked in the UK and built up an entitlement to state pension should be able to receive it. We have no plans to change this arrangement. However, the state pension is only increased, or uprated, each year where the recipient is resident in the European Economic Area or a country with which the UK has a reciprocal agreement that allows for uprating.
The policy on this issue has been consistent for 70 years, including under the Governments of Attlee, Wilson, Blair, Macmillan, Thatcher and Major. To uprate all state pension payments, regardless of a recipient’s country of residence, to the rate currently paid in the UK would cost in excess of an extra half a billion pounds a year. This amount would increase significantly over time. If arrears were to be included, the cost would be in the billions of pounds. Some have suggested partial uprating, but while this may cost tens of millions of pounds in the short term, the annual cost of the policy would converge to that of full uprating in the long term.
Sir Peter Bottomley
It might help if the Minister, either today or in the next Session, could tell us the last time the Government voluntarily negotiated a reciprocal agreement with another nation or territory. Secondly, since the last negotiation on a voluntary reciprocal agreement, how many other countries have been brought into the uprating for other reasons, such as accession to the EU?
Mr Vara
I can certainly partly address my hon. Friend’s question. No new commitments allowing for uprating have been made since the 1980s. As far as the other information he seeks, I am more than happy to write to him.
We have to recognise that resources are limited. The Government have to make judgments and take difficult decisions about how best to use limited resources. The majority of pensioners abroad live in countries such as Australia, Canada, New Zealand and South Africa. The rules in those countries vary. Some have largely means-tested pension systems, whereby a significant proportion of any increase in the amount of the UK state pension would go to the Treasuries of those countries, rather than the pensioner. I should add that many people who voluntarily move abroad do so before they have reached pensionable age. As such, many of them may well have been able to build up some pension provision in the countries they have emigrated to.
We should remember that the decision to move abroad is a voluntary one. It remains a personal choice dependent on the circumstances of the individual, which will differ from person to person. The implications for their state pension is just one factor in that decision. There is no evidence of a proven behavioural link between the uprating policy for the state pension and pensioner migration.
Mr Vara
With leave of the House I would like to make some brief comments. I am mindful that this is a Backbench Business Committee debate, and that it is not normal for Front Benchers to have a second go. I do not want to set a precedent, so I will just make one or two concluding comments about issues that have been raised.
Bilateral agreements were mentioned, and those are normally negotiated on the basis of compatibility of systems. That reciprocity is achieved between the two nations, and respective costs are broadly balanced. Canada has more than 150,000 recipients of the UK state pension, but any new bilateral agreement would not achieve reciprocity and would be disadvantageous to the UK taxpayer.
I pay tribute to my hon. Friend the Member for North Thanet (Sir Roger Gale) for all the work that he has done consistently over a number of years on this issue.
Sir Peter Bottomley
On a point of order, Madam Deputy Speaker. The logic, I think, is that if a reciprocal agreement may be done at no cost, there would be no reciprocal agreements anywhere.
Transitional State Pension Arrangements for Women
Debate between Peter Bottomley and Shailesh Vara(8 years, 9 months ago)
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Sir Peter Bottomley
My hon. Friend is saying some fair things about the Opposition and they do not like it. Will he turn his mind to a fair thing that I want to say about the women who are directly affected? The issue is that people who were born within 12 months of each other can have retirement ages nearly three years apart. That is where better transitional arrangements are needed. We all know that this Government have had to put right many things that previous Governments have got wrong, but this is something we need to get right for ourselves.
Oral Answers to Questions
Debate between Peter Bottomley and Shailesh Vara(10 years ago)
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Mr Vara
The hon. Gentleman will be aware that we have done more for victims than his party’s Government did in 13 years. We are making sure that victims, who are often very vulnerable, have proper treatment and are looked after carefully. We have brought in measures that allow victims to have a say in court, which was certainly not the case before. We are bringing up the courts to be fit for the 21st century, which Labour failed to do in its 13 years. That will mean a better experience for victims, as some of the most vulnerable people who attend courts.
Sir Peter Bottomley (Worthing West) (Con)
My hon. Friend has twice referred to the 21st century. Will he build into the courts system a free, searchable online record of judgments of civil courts, including, particularly, the property chambers?
Ugandan Asians
Debate between Peter Bottomley and Shailesh Vara(11 years, 11 months ago)
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Mr Vara
I am grateful to the hon. Gentleman for that intervention. He is absolutely right that not everyone was hostile. Indeed, Sir Peter Soulsby—until recently a colleague of ours—said that Leicester was a stronger place because of the Ugandan Asians.
Edward Heath rightly took the decision that both morally and legally Britain had an obligation to take in the refugees. The position was best summed up in a statement in Parliament on 7 August 1972, when Alec Douglas-Home, the then Foreign Secretary, said:
“We accept a special obligation for these people who are British passport holders”.—[Official Report, 7 August 1972; Vol. 842, c. 1261.]
There was, of course, a fair amount of frantic international diplomacy on Britain’s part, and we managed to persuade 29 other countries to take some of the people concerned. Those countries included the United States, Canada, Australia, India, Pakistan, New Zealand, some Scandinavian countries and some Latin American countries.
Sir Peter Bottomley (Worthing West) (Con)
I hope this is not the most important point I will make, but will my hon. Friend remember the Falklands, which asked for a couple of doctors and then a plumber?
Mr Vara
As always, my hon. Friend makes an apt intervention that enlightens the debate.
As a consequence of so many countries agreeing to take refugees, Britain ended up with 28,000 people—28,000 British passport holders who came here frightened, homeless, penniless and with only the clothes on their backs. They arrived at Stansted airport, and some at Heathrow airport, and were met by demonstrators holding placards saying, “Go home! You’re not welcome here.” The fact that they were British passport holders and had no home to go to was by the bye as far as the demonstrators were concerned.
Britain hastily set up the Uganda resettlement board, whose job was to give immediate assistance to the refugees, find them homes and jobs and, importantly, ensure they were resettled in the community at large. To start off with, they settled in 16 resettlement centres scattered throughout the country—former military bases that were mostly bleak and isolated. But this was a time when Britain was at its best. Having accepted responsibility for these refugees, voluntary groups, church groups, charity groups and ordinary citizens came out to help them. They showed their warmth, their compassion and their care for their fellow human beings. Many of the indigenous population did not have much themselves, but what little they had they were happy to share with the newcomers, giving them food and shelter.
Councils throughout the country also responded. In south Wales, Pontardawe rural council offered three council homes, Aylesbury rural district council offered six and Peterborough city council—I represent part of Peterborough—helped too: the then leader of the council, Councillor Charles Swift, went to Tonfanau resettlement centre in Wales with local employers and offered 50 council houses, provided the people agreed to take on the jobs offered by those with him. For his efforts, Councillor Swift received hate mail and death threats, and for a while required a police escort to take him to work as a railway driver.
This was also a time when individuals opened their doors. Some had only one room spare in their house and took in one individual, but others had more space and took in whole families. This was the British character at its best—but there was a little humour as well. There was the incident of two refugees in a resettlement centre being quite miserable, but suddenly finding that in Britain the shops closed at 5 o’clock and during the weekends. They smiled, and one said to the other, “We’re going to be rich.”
Very soon the refugees moved from the resettlement centres into the mainstream community. Rather than seeing the expulsion as life-destroying, they looked at it as a setback. They picked themselves up and started all over again. They took whatever jobs were available, worked long hours, made a success of their jobs and their lives and built a better future for their families; and now, many of those people employ hundreds and thousands of our fellow citizens. One such example is Mr Shabbir Damani in Peterborough, who came here penniless but now has nine pharmacies employing 100 full-time staff and another 100 or so on an ad hoc basis. There are many other such examples.
There were successes not only in business but in the professions, the military, the police, politics, media and entertainment, charities, sport and so on. There is also the case of Dr Mumtaz Kassam, who was expelled at the age of 16 and went to a resettlement centre in Leamington Spa, but ended up being, until recently, deputy high commissioner for Uganda serving in Britain—serving the country that had once expelled her as a teenager. The precise contribution made by the Ugandan Asians is difficult to quantify in economic terms, but it is generally felt that the south Asian community—or those with origins there but who are now settled in Britain—number 2.5% of the population, but are responsible for 10% of our national output.