Cost of Living Increases: Pensioners

Peter Gibson Excerpts

Monday 21st March 2022 Commons Chamber

[Dr Coffey]

I am not aware of any Minister trying to say to people that we did this because it was unaffordable. As a result of the pandemic, there was a statistical anomaly relating to earnings. We also understand the balance relating to intergenerational fairness, as has been outlined. At the time, however, we very much highlighted the statistical anomaly.

As a result of our actions, I believe that the state pension continues to be a strong foundation from which people can build additional savings for their retirement. We are seeing a thriving private and workplace pensions market, fuelled by the success of automatic enrolment, which transformed pension savings for more than 10.5 million workers. That is creating even firmer foundations for a robust pension system to ensure that not just today’s pensioners, but those of future generations are protected and supported. I know that, as a country, we will continue to build on the progress that we have made over the last 12 years under Conservative Governments, so that in the next 12 years, and in decades to come, pensioners will be able to enjoy a secure and dignified retirement.

We also know that a minority of pensioners choose to stay working beyond the standard retirement age. They do not pay the standard employees’ national insurance on their earnings, even though employers do if they earn above the threshold. As for the NHS and social care levy being introduced through national insurance, it is appropriate for anyone working at all, including pensioners, to contribute, bearing in mind that they will do so only if their earnings are at or above the regular threshold. I believe that will be about £190 a week, which is close to nearly £10,000 in earnings a year.

[Peter Gibson (Darlington) (Con)]

My right hon. Friend rightly points out that many pensioners are indeed working. What does she have to say about how the announced increase in the living wage to £9.50 will benefit pensioners?

[Dr Coffey]

Any uplift in the national living wage is welcome to anybody still working. Our normal practice on standard national insurance for employees is that once someone reaches pension age, their take-home pay will be automatically higher than somebody else under the age of retirement, if they are doing the same job on the same salary. However, this levy is important to make sure that we get the funding for the NHS backlogs and for the future stability of the social care system.

Let me turn to pension credit. We have heard about the success of the private pensions sector and some of the uplift for people who are still working. It is good for those still saving for their futures, but understandably, the House wants to know what we are doing for the poorest pensioners now. We had a bit of a history lesson about how pension credit was introduced under the Labour Government in 2003, as the right hon. Member for Leicester South said. Let us go back a bit earlier in history: it was only a few years beforehand that the Labour Administration raised pensions by 75p. I think the House will probably recognise that pension credit was introduced directly as a consequence of the impact of what happened with that very modest increase in pensions.

Various funds have been open to pensioners in the past year, including the household support fund, and I encourage people to approach their local council for support.

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[Peter Gibson (Darlington) (Con)]

I hope that I can stick to the time limit, Mr Deputy Speaker. I know that you will ensure I do.

The global pandemic and the increase in wholesale energy costs have put an enormous strain on household budgets, and I believe that the Government have provided a strong package of measures to mitigate the effects, delicately balancing support for the economy and for our pensioners. However, I feel that this debate is a little premature bearing in mind that we are hearing from the Chancellor in two days’ time.

We have provided a package of £9.1 billion to help households across the UK with the cost of their energy bills, building on cold weather payments, winter fuel payments and the warm home discount. As the Secretary of State said, that builds on other support, including the £150 council tax rebate, the £200 smoothing payment, and the £150 million being given to local authorities to help those in properties outside bands A to D.

Alongside that, pension credit offers a real helping hand with living costs for people on low incomes, and we know that it is chronically underclaimed. In Darlington, almost £4 million is unclaimed, and I am doing all I can to support increasing take-up. I am delighted to hear that the Minister has written to all the local newspapers, and I hope that he sent letters to the Darlington & Stockton Times and The Northern Echo to ensure that take-up increases in my constituency. Let us not forget that pension credit is the doorway to other benefits, such as a free TV licence and cold weather payments.

Our levelling-up White Paper announced the creation of a new taskforce to look at ways to provide greater security, choice and quality for housing for older people, planning for the future to ensure that pensioners are comfortable in their homes during their retirement. More widely, we have a strong record of delivering for pensioners. Since 2010, the state pension has increased by 35% when, in the same period, inflation measured 22% and wages increased by 27%. This year alone we are spending £129 billion on pensioners—more than any other Government—allowing us to reduce absolute pensioner poverty by 200,000 people across the country. In-work pensioners will also benefit from the increase in the national living wage—a benefit of almost £1,000 a year for nearly 2 million people.

Under the last Labour Government, pensioners suffered. We had the fourth-highest level in Europe of pensioner poverty among the over-65s. The level of the state pension stagnated, and they had no long-term plan for pensioners. This Government are delivering for pensioners, and I know that they will continue to do so long into the future.

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[Guy Opperman]

The right hon. Gentleman does himself credit with what he says. Much as he did as shadow Secretary of State for Health and Social Care, he seeks cross-party ground where it is right and proper, which I support and really appreciate. We need to get that message across.

I thank all colleagues who have contributed today. As the Secretary of State set out, we are experiencing a period of increasing consumer demand that, together with disruptions to global supply chains and the impact of the war in Ukraine, is definitely placing a strain on household and other finances. The Government recognise that inflation is rising; together with the Bank of England, we are closely monitoring the situation.

I applaud the many Members across the House who have put in detailed recommendations to the Chancellor for the spring statement. I am sure that those on the Treasury Bench have been listening most carefully. In the intervening period, we have taken significant steps to ease the financial pressures by providing a support package worth billions of pounds during this fiscal year and the next.

The state pension is clearly the foundation of support for older people. Over the last two years, the basic and new state pension will have increased by more than 5.6%, taking into account the 2.5% rise this year and the 3.1% rise from this April. There has been much discussion of pension credit, which continues to provide invaluable financial support to approximately 1.4 million vulnerable pensioners. We want all pensioners to claim it.

[Peter Gibson]

My hon. Friend has had the opportunity to raise the matter of pension credit at the Dispatch Box on several occasions today. What advice can he give Members across the House on engagement with our constituents to raise the profile of that valuable benefit, which opens up the gateway to other benefits and help for pensioners? What help is available from the Department to Members across the House?

[Guy Opperman]

My hon. Friend is right to raise the issue. A bit like with the jab, we are all responsible for making the case to our constituents that there is huge benefit in what is in reality a passport to several hundred pounds a month—potentially £3,000-plus a year. The stats are extraordinarily good. When we took office in 2010, the take-up was 70%; it is now up to 77%. Obviously we want it to go higher. The take-up figure for guarantee credit is up to 73%, and internal management information suggests that in the 12 months to December 2021, the number of new claims for pension credit was about 30% higher than the figure for the 12 months to December 2019.

My hon. Friend specifically asked what the Government could do. There are a number of things that we have been doing for some time. We set up the pension credit taskforce to work with key stakeholders such as charities—including Age UK, which many Members rightly mentioned and whose representatives we have met several times—the Local Government Association, Virgin Money, and several of the banks. The energy company Centrica is involved, and ITV and the BBC have a key role to play in raising awareness, ensuring that we have greater knowledge of pension credit and that our constituents are aware that the opportunity is out there.

As the Secretary of State said, 11 million letters about the state pension uprating were sent out—that has never been done before—along with copies of the pension credit information factsheet containing information for pensioners so that they could apply. That, too, seems to be making a difference. There was a pension credit awareness day last June, when we worked with the BBC throughout the country. We also worked with the other stakeholders, including Age UK, with which we formed a specific partnership. We have been making the case to local papers: we wrote to all of them on three occasions last year, we did it again this year, and we will continue to do it. Individual Members of Parliament can do a fantastic amount in making the case to their local communities, working with their citizens advice bureaux and Christians Against Poverty groups. Mention has been made today of the older persons fairs, which have been very successful in individual constituencies and have made a big difference to pension credit take-up.

Oral Answers to Questions

Peter Gibson Excerpts

Monday 21st March 2022 Commons Chamber

[David Rutley]

We work hard to ensure that people receive the money they need and we also work hard to ensure people get into work. As far as people needing debt management advice, we can do that through our jobcentres. The Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Hexham (Guy Opperman), also does a huge amount of work in this area to provide the right sort of advice on money and pensions.

[Peter Gibson (Darlington) (Con)]

My hon. Friend will know that in February, 9,846 people were claiming universal credit in Darlington. Does he agree that the decision to increase the living wage, extend the work allowance and reduce the taper rate will massively improve the income of people on universal credit?

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[Guy Opperman]

With great respect to the right hon. Gentleman, with whom I have repeatedly debated this matter, we already have an action plan. We are already engaging with all the key organisations, whether that is the energy companies, television companies or media in the normal way. I respectfully say to him that pension credit take-up is increasing. It is up by 3%, which is definitely not for the reason he asserts, and we continue to make the case for pension credit to the wider population. We want not just individuals to claim; we want carers or people on behalf of their mum or dad to put in a claim.

[Peter Gibson (Darlington) (Con)]

Almost £4 million of pension credit remains unclaimed in Darlington. What advice can Ministers give to my constituents and others to encourage them to take it up?

[Guy Opperman]

I sincerely hope that my hon. Friend’s local paper contains a letter from me this week explaining exactly why upwards of £3,000 is available to vulnerable pensioners—serious money that is as yet unclaimed. We are keen that my hon. Friend’s constituents and others claim pension credit, because it is an important source of money for the most vulnerable. We already spend £5 billion on it, and we want to spend more, but people must claim.

British Sign Language Bill

Peter Gibson Excerpts

3rd reading
Friday 18th March 2022 Commons Chamber

[Peter Gibson (Darlington) (Con)]

I congratulate the hon. Member for West Lancashire (Rosie Cooper) on bringing forward this hugely important Bill. I know only too well what a privilege it is to come out of the ballot, and I commend her on expertly guiding this piece of legislation through the House. It is a hugely commendable Bill that deals with an important issue for many people across the country; I thank her for promoting it, and am proud to be here today to support her. As we heard from my hon. Friend the Member for Rutland and Melton (Alicia Kearns), not since 1999 has a Member who drew No. 20 in the ballot got to this stage in the legislative process. I pay tribute to the hon. Lady for her efforts.

I also know that this Bill relates to an issue that is very personal to the hon. Lady. At all stages of this Bill’s passage, she has delivered powerful and heartfelt speeches, and today was no different; the fact that her speech drew on her personal story has only made her words more moving. I also pay tribute to the contributions made on this issue over many years by my right hon. Friend the Member for Hemel Hempstead (Sir Mike Penning). [Interruption.] It seems that my right hon. Friend has crossed the Floor. I think that demonstrates the commitment in this House to cross-party working, particularly on Fridays.

In an earlier debate, I mentioned Darlington Association on Disability, which was established in 1986 as a voluntary and charitable organisation led by disabled people. I know they will warmly welcome this Bill, just as they will welcome the Taxis and Private Hire Vehicles (Disabled Persons) Bill. The steps taken to legally recognise British sign language as a language will be welcomed by them.

[Alicia Kearns]

I recognise that I am taking liberties on a Friday, but I am essentially going to direct my question to Mr Deputy Speaker via my good and hon. Friend. Do we provide BSL tours of Parliament, and if we do not, is that something we could do? It is wonderful to see people in the Chamber today signing to one another, and it would be wonderful if we could ensure we had a BSL tour capability that could be provided to all schools around our country. Does my hon. Friend agree?

[Peter Gibson]

Having just looked up to the Gallery and cast a wave, I can see that many in the Gallery are waving back. It is fascinating that a Friday debate is receiving so much attention, and my hon. Friend’s point is important; if we were able to introduce that capability, it would be of benefit to deaf people across the country. I am sure Mr Speaker will take that point up.

It would be remiss of me not to mention the Head of Steam museum in Darlington. You may wonder why that is Mr Deputy Speaker, but only yesterday it announced a whole new series of British Sign Language films to illustrate our heritage in Darlington. As we see investment going into our rail heritage quarter, I hope that we will see more of that so that people who are deaf who visit Head of Steam can get that help to see the history and heritage of Darlington—we hope to be the home of Great British Railways, subject to the current competition—and see those films. That is truly tremendous, and I am grateful to Darlington Borough Council for ensuring that that happened before this debate.

For many people, British sign language is a vital lifeline that ensures that they are not isolated from society and can reach their full potential. British Sign Language has been used for hundreds of years. It has adapted over time, and up to 250,000 people are using it at any one time on any day. We have already heard about how the vocabulary and syntax of British Sign Language does not exactly replicate spoken English and that, for individuals who have been deaf from birth or early childhood, subtitles or written English are not an adequate alternative as it is not simply a signed version of written or spoken English. The Bill will help to ensure that deaf people in the UK can lead fulfilling and independent lives.

The UK Government already give protected status to six indigenous UK languages: Welsh, Scots, Ulster Scots, Scottish, Irish Gaelic and Cornish. However, despite being recognised as an official language by the UK Government since 2003, British Sign Language—another indigenous language—has not yet been accorded that same legal protection and status. The Bill will mean that British Sign Language receives the same legal status and protection as our other six languages.

Today, we are making clear to deaf people up and down the country that they are equal members of society and that their language will get the status that its long history and usage in the UK deserves. I commend my friend the hon. Member for West Lancashire once again for her efforts and wish the Bill well.

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[Simon Baynes]

I thank my right hon. Friend for his contribution and for that observation, which he has made far more eloquently than I was struggling to just now. That is absolutely right, and I will address another point he made shortly, because I was struck by his contribution to the debate.

In my constituency there are many organisations that help people who are deaf, such as the Wrexham and Denbighshire Deaf Children’s Society, AVOW—the Association of Voluntary Organisations in Wrexham—and the Rainbow Foundation. I pay tribute to them, and want also to quote the British Deaf Association:

“This Bill has been 19 years in the making. Deaf people in Britain never gave up hope that their language would one day be not only recognised in law, but also protected and promoted so that deaf people are finally able to access information and services and achieve their potential on an equal basis with their fellow hearing citizens.”

Indeed, equality has been an important theme of the debate, and I perhaps did not fully appreciate its importance when I was preparing my speech. It is strikingly clear from everything everybody has said that this is not only about helping people who are deaf, but about ensuring equality among all our citizens. The provisions for users of BSL accessing services are covered by equalities legislation and the public sector equality duty.

The Bill seeks to recognise British Sign Language as a language of England, Wales and Scotland. I make that point as a Member of Parliament with a Welsh constituency because for me, it is important that it is a GB-wide initiative. It also requires the Secretary of State to report on the promotion and facilitation of the use of British Sign Language by Government Departments, which, again, is a crucial point that has already been made in the debate.

[Peter Gibson]

I am grateful to you, Mr Deputy Speaker, for outlining that BSL tours are available in Parliament. It is all very well for the Government to have new responsibilities with regard to BSL, but will my hon. Friend allude to how helpful it would be for the deaf community if Members of Parliament had BSL training and BSL interpretation in our surgeries to provide services to our constituents?

[Simon Baynes]

I thank my hon. Friend for his comments. I fully endorse training of that nature. I was struck by what my hon. Friend the Member for Bassetlaw (Brendan Clarke-Smith) said about the educational process, and I was pleased that the Minister for School Standards was nodding in assent to what he said about putting it in the curriculum. We need to set an example here, so my hon. Friend the Member for Darlington (Peter Gibson) is correct that we need to set an example in what we do in our constituencies to help people in that regard.

The Bill will also ensure that the guidance is created in direct consultation with deaf BSL users to ensure that it truly reflects the needs of the deaf community. In the speech of my right hon. Friend the Member for Hemel Hempstead (Sir Mike Penning), I was struck by the fact that he has been working towards that for many years and by his point about methodology, which is incredibly important.

It strikes me that the Bill is part of a process—a point that was movingly made by the hon. Member for West Lancashire when she talked about the experience of her father in hospital. With no disrespect to the consultant she mentioned and so on, it is shocking that that took place and it illustrates how the Bill is important not only for ensuring that British Sign Language is widely used and has an important place in the structure of our government and the way we do things, but for changing people’s minds, views and behaviour. The point made by my right hon. Friend the Member for Hemel Hempstead about methodology is profoundly important in conjunction with the Bill.

The Bill also introduces a suite of non-statutory measures, which have already been commented on, so I will not go into detail on them. I have touched on the issue of education, which was mentioned by many hon. Members, such as my hon. Friends the Members for Hertford and Stortford (Julie Marson), for Broadland (Jerome Mayhew) and for Bassetlaw. My hon. Friend the Member for Hertford and Stortford made the point that it is important for British Sign Language to become a part of children’s lives. We all know that if we start with children, they have no preconceived ideas and they can see that it will help with their own deaf friends, which is the way to change things in the long term. I strongly support that.

I have made the point that the Bill has a GB-wide impact on BSL users. As a Welsh MP, I cannot stress strongly enough how much I support that. I fully back the Bill because I am committed, as are the Government, to supporting all people with a disability, including deaf people, to lead fulfilled and independent lives.

I end with what Rose Ayling-Ellis, the winner of “Strictly Come Dancing”, who has already been referred to, said of the Bill:

“I’m backing it because this is my language. The fact that my country doesn’t see it that way is really sad and means we don’t get the respect we deserve and the language deserves. BSL is not an official language, legally, in this country. Which is outrageous. Because it is such a beautiful, rich language with its own structure, its own grammar, its own slang. It’s even got accents.”

I thought that that very vividly made the point. Hopefully, the outrageous element, which is rightly alluded to, will come to be something of the past when this Bill is passed in this House and in the other place.

I end by warmly congratulating the hon. Member for West Lancashire on her private Member’s Bill, which is indeed inspirational and vital for everybody in this country.

DWP Estate: Office Closures

Peter Gibson Excerpts

Thursday 17th March 2022 Commons Chamber

[Peter Gibson (Darlington) (Con)]

Can my hon. Friend outline to the House in a little more detail how these changes will lead to better working conditions for staff in the Department, what amounts of excess space the Department has and what opportunities there will be for people to relocate? I am thinking of those people elsewhere in County Durham perhaps having the opportunity to relocate to offices in my constituency.

[David Rutley]

DWP has too much estate. Recent calculations estimate there is capacity for 158,000 people, but the maximum headcount is forecast to be around 97,500 people. We need to ensure that we use that estate as effectively as possible, both for our colleagues and for the taxpayer. We want to refocus colleagues to work in clusters so that they can most effectively support customers and claimants, but at the same time help them to improve and develop their careers.

In-work Poverty

Peter Gibson Excerpts

Wednesday 16th March 2022 Westminster Hall

[Peter Gibson (Darlington) (Con)]

It is a pleasure to serve under your chairmanship, Ms Rees. I congratulate my County Durham colleague, the hon. Member for Easington (Grahame Morris), on securing the debate. He called for a 58% increase in the minimum wage, which would have a massive inflationary impact. He cannot complain about inflation and the cost of living crisis that we face while advocating policies that would create further problems. If levelling up is to succeed, we must tackle poverty. I want to make it clear that I believe that one person or family in poverty is one too many.

As we all know, employment is the best route out of poverty. Evidence shows that full-time work substantially reduces the chances of living in poverty, and I am proud that the Government have taken an approach to tackling poverty that has employment at its heart. We have seen the Government accept the four recommendations of the Low Pay Commission, which will see the living wage increase to £9.50 an hour—an increase of 6.6%. We have seen the Government extend the national living wage to 23 and 24-year-olds, who will also benefit from the increase to £9.50. Improvements have been made for those on universal credit and in work, with an increase in the work allowance and a reduction in the taper rate, making work pay. Across the country, we have seen massive improvements in our pension savings for working people, with auto-enrolment securing a pension income for millions. I am hopeful that this can be extended to younger people and those working part time, to help ensure that they save for their futures too.

I appreciate that some people do not have the skills to get the job that they want, including those who left school at an early stage and those who have caring responsibilities. That is why the Government’s lifetime skills guarantee is designed to transform the adult education system, helping people of all ages to develop the skills that they need to get better jobs and supporting businesses to find or develop talents to fill the skills gap. Last week, I visited the marvellous Darlington College and saw with my own eyes the incredible learning and training opportunities on offer, from plumbing, plastering and public service to catering, car repairs and childcare. As T-levels will be introduced later this year, the college also offers courses in robotics. These are incredible opportunities to learn and improve skills for the economy of the future.

We know that our economy has record vacancies. From ambulance, bus and taxi drivers to doctors and nurses, we know that there are opportunities out there. The simple law of economics means that wages are increasing in order to attract people into these roles. We help our constituents in the long run by ensuring that they have the chances to improve their skills and employability. I hope that one day we reach a point where wages from employment provide enough, so that in-work benefits are not necessary. In the meantime, however, I believe that increasing wages, reducing the amount taken from those on benefits who work, and giving people the chance to learn in order to improve their lot is the best way to tackle the issues raised in today’s debate. I look forward to the Minister’s response and to hearing an update on the cross-departmental mechanism on in-work progression.

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[Margaret Greenwood (Wirral West) (Lab)]

It is a pleasure to serve under your chairmanship this afternoon, Ms Rees. I congratulate my hon. Friend the Member for Easington (Grahame Morris) on securing this incredibly important debate.

Poverty is a scourge that devastates lives. In today’s debate we are focusing on in-work poverty, but the Government should address poverty however it arises. A report by the Institute for Public Policy Research in May 2021 highlighted that the UK’s poverty rate among working households was at a record high this century. The report also found that in 2019-20 the majority of those living in poverty were in households that had some form of paid work.

That is also reflected in the Government’s statistics, which show that of all the working-age adults in poverty, both in the UK and in the north-west, 65% are in working families. In some areas, the figure is even higher. For the east of England, that is 70%, and for the south-west, 72%. That is truly shocking, and completely dispels the Conservative myth that work is the best route out of poverty. I am so disappointed that we have already heard that myth chanted today.

[Peter Gibson]

If work is not the route out of poverty, what is?

[Margaret Greenwood]

I thank the hon. Gentleman for his question. We have just listened as my hon. Friend the Member for Leeds East (Richard Burgon) came out with all sorts of suggestions, as did my hon. Friend the Member for Easington—such as increasing the minimum wage, tackling insecure work, banning zero-hours contracts and so on. I will return in my speech to the issue that the hon. Gentleman raised.

As I said, those figures completely dispel the Conservative myth that work is the best route out of poverty. It is clear that low-income households are likely to be disproportionately affected by the cost of living crisis. The Trussell Trust has warned that, for people already struggling to afford the essentials, the cost of living crisis can mean parents going without meals in order to afford to feed their children. That, sadly, is nothing new, but the situation, instead of improving, is getting worse.

Food prices have been increasing since the middle of 2021 and are expected to increase in coming months. The domestic energy price cap will increase by 54% from 1 April for approximately 22 million customers. Energy prices are likely to continue to rise beyond that, as a result of Russia’s invasion of Ukraine. Some economists have suggested that the inflation rate in the UK could hit 10%.

[Peter Gibson]

Will the hon. Lady give way?

[Margaret Greenwood]

I have given way once and am short of time; I am sorry. The increase in national insurance contributions from next month, opposed by Labour, will increase the pressure on working people and businesses even further.

The full impact of the coronavirus pandemic on levels of poverty is not yet known, but early analysis suggests that poverty will increase over the next few years, and that low-income households are particularly vulnerable to the economic effects of the pandemic. The Government must end the scourge of in-work poverty, by tackling the structural causes of poverty and inequality, such as low pay and high living costs. At next week’s spring statement, the Government have a chance to make a real difference to the lives of working families. There are plenty of steps they could take.

The Government should never have cut universal credit by more than £1,000 a year, and they should reinstate the uplift. They should also scrap the two-child limit, which the Child Poverty Action Group has called for, and the benefit cap. They should increase child benefit by £10 a week, and call a halt to the rise in national insurance. They should also initiate a one-off windfall tax on oil and gas producers, to cut household energy bills by up to £600, as Labour has called for.

Those are all measures that this Conservative Government could take; it is simply a matter of political will. I ask the Minister to set out today what action the Government will take to eradicate poverty.

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[Alison McGovern (Wirral South) (Lab)]

It is a pleasure, as ever, to serve under your chairship, Ms Rees.

I thank my hon. Friend the Member for Easington (Grahame Morris) for, and congratulate him on, securing this debate in Westminster Hall. The passionate contributions from all, particularly Opposition Members, have made it clear that this is a crucial discussion. At the heart of the debate is a simple truth: we all want to get on in life. Many of us know the feeling of receiving our first pay packet—that sense of finally releasing our parents from the stress of having to afford us and from that worry about money. There is a feeling of ease—not of great wealth, but of having enough—and that is what we want every person in our country to feel. With hard work, that should be available to all. The truth, however, as we heard in so many countless examples, is that that feeling is not available to everyone.

The hon. Member for Darlington (Peter Gibson) described the simple law of economics that a high number of vacancies increases wages. If that were the case, real wages ought to be shooting up, but they are not. The fact is that economics does not have simple laws—if it did, a lot of economists would be out of work.

Things do not work like that; they are much more problematic. This is the challenge: there is a rocketing number of vacancies, but people are not able to get on in life. That is the problem. The Government themselves know that that is the case. They know we have a problem. They commissioned the in-work progression review by Ruby McGregor-Smith.

[Peter Gibson]

Will the hon. Member give way?

[Alison McGovern]

As I mentioned the hon. Gentleman, I will give way to him.

[Peter Gibson]

As a former employer of a substantial number of people in a very competitive industry, I frequently had to recruit people when demand was greater than the supply available. It was often the case that employers such as myself had to increase wages to make those jobs attractive and to bring people in from other employers. I was speaking from my own experience. Having spoken to employers in my own constituency who have vacancies, I know that they too are increasing their wages to attract people.

[Alison McGovern]

Perhaps the hon. Member could ask those other employers why real wages are not increasing, because that is what the data tells us is happening. Unfortunately, it turns out that the rules of supply and demand are not so simple when an economy has as many problems as those experienced in Britain.

The Government themselves—the hon. Member’s own Government—know that this is a problem. They know that people are stuck in low pay, because they got Ruby McGregor-Smith to investigate and ask why people are simply not able to get on in life, earn a better pay packet and look after their family. She found that there were myriad issues with the cost of childcare and transport, and that people are unable to get the right skills to move on and move up. In certain professions, including care, a culture of low pay means that people are not able to move on and get a well-paid job to look after themselves and their family.

Last February, the Secretary of State told me that she was the reason that the response to Ruby McGregor-Smith’s report was being held up. My first question for the Minister is: when will the Government respond to that report? When will practical steps be taken to help working people get better pay? As the review found, there are myriad reasons why it is not a simple matter of supply and demand. It also showed that single parents have only so many hours in a day, and that if someone lives in a town whose bus service is so chronically bad that it limits their job choices, it is not their fault that they cannot get a better paid job. We need the Government to reply to that report.

My second question to the Minister is time-sensitive. Working people are facing a national insurance rise. If ever there were a time for such a tax rise, it is not now. People are dealing with truly horrific increases in energy bills and other costs. The Government really must rethink this. I want to quote an organisation that has spoken on this issue and on the underlying reason why this tax increase on workers is being brough about. It said:

“There is a large, unjustified and problematic bias against employment and labour incomes”.

That quote comes not from Marxism Today, but from the Institute for Fiscal Studies. The Government must rethink their whole approach to working people and how we make sure that people have decent pay.

To conclude, I want to come back to the point made by the hon. Member for Darlington about the iron law. As I have said to him on several occasions, it is not a matter of simple supply and demand. We only need to look around the economy today in Britain to realise that we can have rocketing vacancies while real pay does not go up. That is what is happening now. I ask myself what could possibly have gone wrong. The economics textbooks say it should work. What could have possibly gotten in the way of working people and a decent income?

Since 2010, the Tories have done the following: presided over a massive increase in zero and short-hours contracts; overseen a pandemic of low pay in key professions such as social care, which has driven chronic staff shortages; put charges on employment tribunals, so that working people find it much harder to get their rights confirmed; put roadblocks and bans in the way of trade unions, so that organising is harder; got rid of Unionlearn, which helped many working people get on; and overseen a labour market with a skills crisis and in which 20% of people have to work below their skill level, making it impossible for them to get on.

Rishi Sunak has put taxes up more times in two years than Gordon Brown did in 10 years, and he is landing working people with a devastating tax rise at the worst possible time. We have seen child poverty rise and food bank use explode, and 1 million experienced destitution in 2019. That is the problem. It has been a decade of doom for people trying to get on in life—a Labour Government is required.

Regional Inequalities: Child Poverty

Peter Gibson Excerpts

Wednesday 2nd March 2022 Westminster Hall

[Peter Gibson (Darlington) (Con)]

It is a pleasure to serve under your chairmanship, Dr Huq. I congratulate the hon. Member for Blaydon (Liz Twist) on securing today’s important debate.

As a fellow north-eastern MP, I know only too well that the north-east has been left behind by Governments of all colours. In 2019, the people of Darlington and other constituencies across the north-east elected Conservative MPs on the promise of levelling up and realising the full potential of the north-east. Since the election, the Government have faced incredible challenges that no other Government have. They have pressed ahead with their ambitious agenda and have committed to unprecedented investment up and down the country.

The annual “Households below average income” publication, about the number and percentage of children in low-income households, remains the most accurate published measurement of low income. Those statistics show that in the past decade 100,000 children have been lifted out of absolute poverty, and levels of combined material deprivation and low income for children are at their joint lowest level.

We know that the best way for people to find a route out of poverty is through work. That is why I welcome the Government’s lifetime skills programme, which enables people to get the skills they need in order to get the jobs that will help them to provide for their family.

[Liz Twist]

The hon. Member has quoted some measures. As he will be aware, there are different definitions of child poverty; the standard definition refers to 60% of median income. He needs to recognise that there is a difference.

[Peter Gibson]

I am grateful to the hon. Lady for her intervention. The issues around accurate definitions pose part of the problem. I hope the Minister will address that point, as Members on all sides of the House need to agree on an accurate definition of the issue that we are discussing.

The chances of a child growing up in poverty are significantly reduced when both parents are working and when both parents are present. I am proud that this Government are taking an approach to tackling poverty that has employment at its centre. The Government’s plan for jobs has already supported millions of people, and will continue to support people into work, in developing their skills, in making the most of their talents and in achieving their potential.

I recently met the Joseph Rowntree Foundation, and it impressed on me that it is in single-parent families or those with absent parents that a child is most at risk of growing up in poverty. We must remember that the state has limited levers for dealing with poverty unilaterally. A responsibility rests on both parents, and I would like to see greater efforts by the Child Maintenance Service to ensure that absent parents pay and meet their responsibilities.

While we know that employment is hugely important, I am glad that we have a robust welfare safety net in place to support people on low incomes; £111 billion has been invested in welfare support for people of working age. I welcome the Chancellor’s decision to extend the work allowance for those on universal credit, and the reduction in the taper rate, ensuring that work really does pay. Moreover, I welcome the Government’s £421 million household support fund to help vulnerable people in England with essential household costs over the winter, as our economy recovers.

Improving educational outcomes for children is also key to tackling long-term poverty, and the Government are determined to help people receive the best possible start in life, creating a level playing field for transforming the education system, to ensure that people gain the skills they need to unleash their potential. The Government recognise the current regional differences in schools, meaning that some children do not have access to the same level of education.

I also take the opportunity to praise the Government’s fantastic holiday food and activities programme. Darlington Borough Council received £460,000 to deliver food and activities over Easter and summer, and has already reached more than 2,000 local children. Councillor Jonathan Dulston, the deputy leader of Darlington Borough Council, said:

“This fund came at a crucial time, and this Government support gave local authorities like Darlington the tools to step up and bring communities back together by creating educational, physical and fun opportunities to help our children thrive.”

--- Later in debate ---

[Andy McDonald (Middlesbrough) (Lab)]

It is a pleasure to see you in the Chair, Dr Huq. I thank my hon. Friend the Member for Blaydon (Liz Twist) for securing this debate. Sadly, during the last 12 years of Tory Governments, the squeeze on wages has meant that in-work poverty has hit new highs, with one in six working households below the poverty line. That has meant that, in my hometown and constituency of Middlesbrough, over the past five years alone, relative child poverty levels have almost doubled, and two out of five children now live in households with an income below the poverty line.

Those in need are now set to be hit by the Tories’ cruel and callous slashing of universal credit, along with their plans to raise national insurance contributions. All the while, the cost of living crisis is shooting up, thanks, in part, to the Government’s catastrophic mishandling of the fuel crisis.

We know that we are one of the most unequal countries in Europe. We have pockets of incredible wealth and of shameful poverty and marginalisation. That is undoubtedly a regional issue, but inequalities also exist within our regions, with obscene levels of wealth alongside destitution. That inequality has widened under this Tory Government. They have frozen pay and benefits while billionaires—Russians included—have flourished.

Shared prosperity funds, towns funds and future high street funds will not do what is fundamentally necessary to close the gap of regional inequality, which is to return power and resources to the communities where they rightly belong. The Tory trick of creating competitions for communities, pitting them against each other for central Government funding, must be exposed as the divisive pork-barrel politics that it really is.

The hon. Member for Darlington (Peter Gibson) talked about making work pay. Okay, let’s do that. If we are really serious about giving workers the security, prosperity and respect that they rightly deserve, then we must have a plan to make it happen. We in the Opposition do. To begin with, we would not increase taxes for working people or cut universal credit. Instead, we would bring in a windfall tax on the oil and gas giants to help with the rising bills. We would give Britain a pay rise and deliver a new contract for the British people.

[Peter Gibson]

The hon. Gentleman is making some important points. As for giving things back to communities, he knows, as I do, that our region, Tees Valley, has had devolution, and our Tory Mayor is delivering jobs and opportunities for our region. The hon. Gentleman talks about the opportunity to serve a windfall tax on energy companies; that windfall tax would prevent those oil and gas companies from investing in and transitioning to the renewables that we so desperately need.

[Andy McDonald]

Well, if that was actually going to happen, the Tory Tees Valley Mayor would have no hesitation in bringing the trade unions into the conversation to ensure that they had good, secure, unionised, well-paid jobs. However, he refuses to do so.

As I was saying, that is why I was so honoured to work with our trade unions chairing our power in the workplace taskforce and produce our party’s Green Paper, “a new deal for working people”. I am delighted that that has been adopted as party policy, because that would mean that we would be raising pay for all, ending the scourge of in-work poverty, and delivering a social security system that provides a safety net for all with decent sick pay.

We would use public procurement for supporting good work, as our wonderful Welsh Labour Government are doing in Cardiff. We would empower workers to act as a collective to secure better terms and conditions. We would establish fair pay agreements, recognised in law, providing a floor across industries and sectors—think about the care workers. We would create a single status of workers and put an end to all the variations thereon, including bogus self-employment, and give all workers day-one rights on the job. We would strengthen the rights of the employed and self-employed, letting working people have a secure, stable income on which to build a good life. We would ban zero-hours contracts and outlaw the tactics of fire and rehire, and so much more. Lastly, we would repeal the trade union legislation, to enable our trade unions to bargain for their members.

We are at a crossroads; we can either return to the status quo of outsourcing, privatisation, exploitation, and extraction of value, which will only extend regional inequality and child poverty, or we can take a different path: one that will deliver for our people, truly bringing an end to the scourge of child poverty and regional inequalities. Poverty is a political choice; let us choose to eradicate it.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Work and Pensions (David Rutley)]

It is a pleasure to serve under you in the Chair, Dr Huq. I congratulate the hon. Member for Blaydon (Liz Twist) on securing this debate. I know that she feels passionate about this subject; it is clear from the contributions made today that other Members across the House do as well. I recognise that Opposition parties are particularly well represented in this debate.

No one wants to see children living in poverty in their constituency, and I understand the passions that drive all the contributions I have heard today. Some of the central missions of this Government are to reduce regional inequality, spread opportunity and increase prosperity right across the United Kingdom. Where someone is born in this country should not be a barrier to what they can achieve. That is why this Government are committed to levelling up, and we at the Department for Work and Pensions are clearly playing our part.

The Government are committed to levelling up across the country. We are creating exciting opportunities, including via the UK’s first freeport in Teesside, which is estimated to create more than 18,000 highly skilled jobs. Our provision of £5 million to create a five-acre business park in Burnley Vision Park will create high-quality manufacturing and engineering jobs in the area. The move of the Treasury’s regional centre to Darlington shows the ambition there, while the DWP has an office in Leeds, which I visit on a regular basis along with other Ministers.

Through the integrated rail plan, we are setting out a £96 billion strategy of rail construction and upgrades for the midlands and the north to be delivered over the next 30 years. That will be the biggest ever single Government investment in Britain’s rail network.

[Peter Gibson]

I am incredibly grateful to the Minister for mentioning my constituency and the Treasury jobs coming to Darlington, but multiple other Government Departments, with 1,700 new jobs, are coming to my constituency, ensuring that people can go far but stay local. That is the real way to tackle long-term poverty.

[David Rutley]

I understand the point my hon. Friend makes.

I want to talk about jobs, because job creation is key to helping more people stand on their own two feet. Our approach to levelling up centres on removing barriers to work, wherever people live in the UK, and on supporting people to find the job that is right for them. That is based on clear evidence that having parents in work, particularly full time, is the most effective way to lift children out of poverty. Children living in households where all adults work were six times less likely to be in absolute poverty before housing costs in 2019-20 than those in workless households. We have been making a difference: there are 100,000 fewer children in absolute poverty before housing costs, and nearly 580,000 fewer children are living in workless households than in 2010.

Pension Schemes (Conversion of Guaranteed Minimum Pensions) Bill

Peter Gibson Excerpts

3rd reading
Friday 25th February 2022 Commons Chamber

[Peter Gibson (Darlington) (Con)]

It is a privilege to follow my hon. Friend the Member for Hastings and Rye (Sally-Ann Hart).

Let me begin by congratulating my friend the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier). I know only too well what a privilege it is to be successful in the ballot, and I congratulate her on guiding this Bill through its legislative journey. It is commendable that it deals with such an important issue, and I am pleased to be able to speak about it today.

I am also delighted that the Bill extends to England, Wales and Scotland, and that Northern Ireland has asked to be covered by it as well. That is another great benefit for our United Kingdom. There were, at the final count in 2015, about 8 million people across the United Kingdom with contracted-out memberships, and the Bill has the potential to benefit those 8 million people. I cannot imagine a reason why anyone in the House would not be in favour of that.

The Bill relates specifically to the issue of guaranteed minimum pensions, but pensions have been on the agenda in the House on a number of occasions in recent weeks. I was pleased to speak in a recent Westminster Hall debate hosted by my hon. Friend the Member for Grantham and Stamford (Gareth Davies), and my hon. Friend the Member for North West Durham (Mr Holden) is leading a sterling campaign to extend auto-enrolment to many more people, which would be a fantastic way to level up throughout our United Kingdom and ensure that trillions more go into our pension pots, thus ensuring that the poorest in society have a more secure future. I would welcome the Minister’s comments on that, as I know he is a champion for pensioners. I also know that he would like an opportunity, when he winds up the debate, to highlight the £1.8 billion-worth of unclaimed pension credit pots out there, which could serve as vital assistance to pensioners in our constituencies. But let me return to the specific issue of the Bill, as opposed to wider pension benefits.

This Bill will make the process of equalising with the use of guaranteed minimum pensions easier, and it is worthy of the support of all of us in the House. I look forward to seeing it pass its Third Reading today, and congratulate the hon. Member for Rutherglen and Hamilton West once again on her efforts.

Automatic Pension Enrolment

Peter Gibson Excerpts

Wednesday 26th January 2022 Westminster Hall

[Peter Gibson (Darlington) (Con)]

It is a pleasure to serve under your chairmanship, Mr Dowd, and to be called to speak in today’s debate, which has been so ably led by my hon. Friend the Member for Grantham and Stamford (Gareth Davies). The debate raises an important issue and I congratulate my hon. Friend on securing it. It follows on from the excellent ten-minute rule Bill recently introduced by my hon. Friend the Member for North West Durham (Mr Holden).

When auto-enrolment was introduced, I recall being fearful of the impact it might have on my business at the time, and of the costs that it would pass on to me as an employer, but auto-enrolment has proved to be a huge success, reversing the decline in workplace pension saving and ensuring that millions more people are now saving for their future. I saw at first hand the benefits that the scheme has had on the lives and futures of my employees. Employees who would never have considered being part of a pension scheme were put in a position where it became a simple and easy process. For the first time, they were ensuring that they did not fall into the trap of under-saving for retirement, encouraging self-reliance and responsibility.

There are still huge numbers of hard-working people who are not auto-enrolled in pension schemes, with many excluded on the basis of youth or purely because they are not working enough hours or earning enough. For those under the age of 22, the numbers are woefully low. Among those in part-time employment, although some will earn more than the £10,000 threshold, the numbers auto-enrolled are still significantly lower than among those who are in full-time employment.

The minimum age of 22 simply does not work for those who choose not to go to university. Why should someone who chooses to start working at 18 not pay into a pension from that age, in the same way as someone who is 22 does? They would have so much to gain from auto-enrolment being extended to them; we have already heard about the magic of compound interest.

The current system also disproportionately affects women and the poorest in our society, who are more likely to be in part-time work and have multiple part-time jobs, like many in my constituency of Darlington. Although Darlington has 1,820 employers, with 26,000 employees auto-enrolled, I am encouraged that the proposed extension advocated by my hon. Friend the Member for Grantham and Stamford would add almost 900,000 extra savers across the country. Those workers are often employed in industries, such as hospitality or retail, that have faced huge difficulties during the pandemic, but are in many cases the backbone of our workforce. It is only right that we do all we can to ensure that they do not miss out on future financial security; that is levelling up.

Extending auto-enrolment could add trillions to the nation’s pension pot. It is a chance to ensure that people start to save for their future while they are young. It also allows us to ensure that the poorest in society have a more secure future and takes steps towards closing the gap between men’s and women’s pension savings.

In 2019, I stood on a manifesto to level up communities across the United Kingdom and the extension of auto-enrolment is a policy that has the potential to have a really positive impact on people’s futures. It would be a commitment to level up for the long term.

As we contemplate how auto-enrolment can help us deliver on our levelling-up agenda, we must not forget the role of pension companies and the positive impact that these changes could have on their work. Auto-enrolment increases the resources available to them and provides a steady, long-term stream of capital for investment across the UK—investment that can be directed to the communities that are home to those who currently miss out on auto-enrolment, letting them see the benefits of their own savings.

I know that the extension of auto-enrolment would have huge benefits for many people in Darlington and across the country, so I hope that the Government will give this policy real consideration, as we continue to build back better from the pandemic and level up our country.

Oral Answers to Questions

Peter Gibson Excerpts

Monday 8th March 2021 Commons Chamber

[Richard Fuller (North East Bedfordshire) (Con)]

What assessment she has made of the effect of the removal of the requirement that kickstart applicants bid to deliver a minimum of 30 jobs on the accessibility of that scheme to a wider range of employers.

[Peter Gibson (Darlington) (Con)]

What assessment she has made of the effect of the removal of the requirement that kickstart applicants bid to deliver a minimum of 30 jobs on the accessibility of that scheme to a wider range of employers.

[Andrew Jones (Harrogate and Knaresborough) (Con)]

What assessment she has made of the effect of the removal of the requirement that kickstart applicants bid to deliver a minimum of 30 jobs on the accessibility of that scheme to a wider range of employers.

--- Later in debate ---

[Dr Coffey]

My hon. Friend should be aware that we have account managers working in all parts of the country to take up this scheme. In particular, we continue to work with a wide range of organisations closely connected to SMEs, including chambers of commerce and the Federation of Small Businesses, to get the message out there and make it straightforward to apply. We should recognise that, due to eligibility criteria, not all direct applications may be successful, and the support of a gateway is likely to be beneficial. We are also enabling applications through the gateway plus model, which will particularly help sole traders, and we will continue to advertise that.

[Peter Gibson [V]]

I thank my right hon. Friend for her answer. I welcome the removal of the 30-person threshold, which will help even the smallest firm in my constituency. Since the launch of the kickstart scheme, our phenomenal Tees Valley Mayor Ben Houchen has been facilitating SMEs to access it, and he has helped 350 young people sign up. Will my right hon. Friend join me in commending Ben for the fantastic work he is doing to help young people in Darlington gain experience and employment?

[Dr Coffey]

I am very happy to agree with my hon. Friend that Ben Houchen is doing a fantastic job in his role as Mayor. In case people had not realised, as well as getting Treasury North in my hon. Friend’s constituency of Darlington—a project that I am sure my hon. Friend achieved with the Mayor—Ben Houchen is leading the way on making that difference to young people’s lives, which is really important. I have also seen it work well with Andy Street and, to be fair to other Mayors, I am confident that people like Steve Rotheram and others will continue to do so.

Income Tax (Charge)

Peter Gibson Excerpts

Thursday 4th March 2021 Commons Chamber

[Peter Gibson (Darlington) (Con) [V]]

Yesterday, my right hon. Friend the Chancellor delivered a Budget that responded to the continuing needs of this country, navigating our route out of lockdown and supporting growth and those in need. I do not mind telling the House that yesterday for me was a very good day—the kind of day you will always remember. Everyone in this House comes here for a reason and a motivation. Mine has always been that the Labour party has always let the north down, and that the north-east, where I was born, raised and educated, and where I grew a business, could achieve so much more, given just half a chance. I know that that belief and vision are shared completely by our Chancellor.

Yesterday, my right hon. Friend helped to realise not just my hopes, dreams and ambitions for Darlington, but those of our council, our Tees Valley Mayor and, most importantly, the community I serve. A child growing up in Darlington, attending a local school and gaining a degree from a local university can now aspire to a career in the civil service and achieve that without having to leave their hometown. Indeed, thanks to the lifetime skills announcements, there will be people in Darlington who left school at 16 and never studied again who can gain a level 3 qualification and secure employment at Her Majesty’s Treasury. That is levelling up. That is putting opportunity in a town in the north-east of England that Governments of the past have overlooked. The Chancellor has listened, understood and taken action, making a real difference to the town I represent that will last beyond a generation.

The announcement of the freeport for Teesside will also have a long-lasting impact for Darlington. I know, too, that the employed, the unemployed, the self-employed and the employers of my constituency will welcome everything that my right hon. Friend announced yesterday, continuing and extending the support to our nation.

Yesterday, the Leader of the Opposition said that delivering Treasury jobs to Darlington was giving up. What an insult. What a lack of understanding. Labour has not learned. It no longer understands, and no amount of fake Union Jack waving or consultants dressing them in smart suits will teach them that the British people have rightly given up on them.

Yesterday, this Tory Government and this northern Chancellor achieved more in one Budget for my region than 13 years of Labour ever did. To celebrate this amazing news for Darlington, I am looking forward to welcoming Sir Humphrey to the town he will affectionately call Darlo.