Oral Answers to Questions

Philip Hollobone Excerpts
Monday 17th October 2016

(7 years, 6 months ago)

Commons Chamber
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Lord Harrington of Watford Portrait Richard Harrington
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As the hon. Gentleman knows, this was looked into by the Turner review and by many people and institutions since. Automatic enrolment is in place, which is a great step forward. Millions of people have now enrolled. I hope that, as time evolves, this will become the main form of pension for people other than the new state pension.

Philip Hollobone Portrait Mr Philip Hollobone (Kettering) (Con)
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17. What proportion of (a) personal independence payment and (b) employment support allowance applications are awarded on appeal to a tribunal.

Philip Hollobone Portrait Mr Hollobone
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What main reasons has the Minister identified for why valid claims are ending up in the tribunal, and what changes to procedures can she suggest so that the Department awards these valid applications either in the first place or on reconsideration?

Penny Mordaunt Portrait Penny Mordaunt
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As I stated previously, we have been doing some work in this area. One of the key things that will help is ensuring that we have more flexibility early on in the process so that where cases are complex, the evidence is submitted. There is also huge scope for using the information that the Government, and different parts of the Government, have to cut down on the bureaucracy altogether. The Green Paper will look at all these issues.

Oral Answers to Questions

Philip Hollobone Excerpts
Monday 9th May 2016

(8 years ago)

Commons Chamber
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Stephen Crabb Portrait Stephen Crabb
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That is one reason why we are using such a careful and controlled timetable for rolling out universal credit. I am much more interested in it being rolled out safely and in a secure way, so as to avoid the kinds of problems that we had under the previous Labour Government, when tax credits were blasted out and huge numbers of people received overpayments and were required to pay back thousands of pounds.

Philip Hollobone Portrait Mr Philip Hollobone (Kettering) (Con)
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What is the average length of time that a benefit recipient makes use of a food bank? Are we asking individuals who have successfully moved away from food banks what advice they would like to have received when they attended them?

Stephen Crabb Portrait Stephen Crabb
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My hon. Friend makes a very good suggestion, and peer support and advice is one of the most effective things that can be provided for those who are making that transition from worklessness into work. Using some of the experiences and insights of people who have had to rely on food banks is important.

Social Security (Equality)

Philip Hollobone Excerpts
Tuesday 26th April 2016

(8 years ago)

Westminster Hall
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Philip Hollobone Portrait Mr Philip Hollobone (in the Chair)
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Will those leaving after the quiet cities debate please do so in complete silence?

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Christian Matheson Portrait Christian Matheson
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We should listen to him. As my hon. Friend the Member for Bermondsey and Old Southwark (Neil Coyle) mentioned, it might have been more help if he had spoken up a little sooner, but none the less, better late than never. The advice that he gives is absolutely valid.

Of the 12 million people in the UK living with a disability, impairment or chronic illness, around 7 million are of working age. We know that 47% of working-age disabled people are in work, compared with almost 80% of working-age non-disabled people—a disability employment gap of more than 30%. That is important because it indicates not only the waste of the potential talent of disabled people who want to get into work but the fact that those forced off PIP and other benefits will have far less opportunity to make ends meet through their own efforts than through benefits. I welcome the Government’s determination to address those issues in the forthcoming White Paper, and I hope that the Minister might be able to give us a sneak preview today if at all possible.

I turn to employment and support allowance. The Government’s stated aim was to ensure that work became a way out of long-term illness and that benefits were focused on what a person can do as opposed to what they cannot do. That is all very laudable, of course, but again the reality was detached from the rhetoric. As the Work and Pensions Committee recognised, the focus on a return to work in such a short time was not appropriate for many claimants, and the work capability assessment failed to provide an accurate assessment of a claimant’s individual health-related employment barriers or distance from the labour market.

Through announcements by Lord Freud, the Government have now moved to make additional cash available to help disabled people return to work. That indicates that they accept that there was and remains a problem. Indeed, the Government’s intention to produce a White Paper, which I have just referred to and which is keenly if nervously awaited by disability charities and campaign groups, demonstrates that there is still a way to go.

Chester was one of the first areas to move to universal credit. We now hear that further cuts to the universal credit rate are likely to be coming down the line, to make up for the cost of the Government’s U-turn on tax credits. Such cuts will inevitably have a still further impact on those at the bottom of the pile. Indeed, from its inception, universal credit included the abolition of the severe disability premium of £61.85 a week, which was a massive and largely unpublicised cut in the benefit levels of the most severely disabled people, although, to be fair, it was mitigated by a degree of transitional protection for existing recipients. Consequently, many of the effects of the changes to universal credit are yet to be seen.

That brings me to my main point. With the combination of the changes to PIP, universal credit, ESA and other benefits, disabled people in particular are experiencing increasing insecurity and inequality. The effect on them and their friends and families is becoming tangible. We talk about the cutting of individual benefits, but when a combination of cuts falls on individuals or families, that has a greater effect. I therefore make one further request to the Minister, which is that the Government consider instituting a cumulative impact assessment to evaluate the overall combined consequences of the many different changes.

I will finish with two brief quotes. The first is somewhat truncated and is from July 2009:

“I do believe that you judge a society by the way it treats its most vulnerable… together we can create a society we are all…proud of.”

That was said by the then Leader of the Opposition, who is now our Prime Minister. Sadly, those pre-election words have come to nothing, as shown by my second quote, which is from Richard Atkinson, a disability rights adviser at DIAL House, which is Chester’s disability rights centre. He says:

“What we do know though, is that the barrage of cuts and their accompanying media offensive—orchestrated and encouraged by the government—have had a real effect on the security, self worth and confidence of millions of disabled people. Here at DIAL West Cheshire, we see people every day who have become frightened and apologetic about their disability. They say to us, ‘I’m not one of these scroungers but...’, and they are afraid of being judged, reassessed and found wanting. I myself have MS and can’t walk well—but can and do cycle albeit on a tricycle. As well as being apprehensive about being transferred from DLA to PIP, I have had to become inured to comments like, ‘Why’s he carrying a crutch if he can cycle—to get benefits!’”

It is time for Government rhetoric and philosophy to change, to create the caring society that the Prime Minister claimed he wanted to see. It is time to treat disabled people with a dignity not currently afforded to them either in the benefits system and the process for accessing benefits or in the wider cultural context in which they live and we operate. It is time to take away the sword of Damocles that is dangling above people who live every day with a disadvantage simply because they have been unlucky in life.

Philip Hollobone Portrait Mr Philip Hollobone (in the Chair)
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We now have until 6.14 pm. When we get to the Front-Bench speeches, the recommended time limits for an hour-long debate are five minutes for the Scottish National party, five minutes for the official Opposition and 10 minutes for the Minister.

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Jim Shannon Portrait Jim Shannon
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I thank the hon. Gentleman for his intervention—at least, I think I thank him. We know how the system works. We have made some changes to the system in Northern Ireland and made some concessions. If we want to change it more, we have to pay for it. I am sure that he can tell us where the money would come from. We need to make those decisions as well, and in Northern Ireland, those decisions are made by those in government who are responsible. They must make decisions that do not run us into debt or extra problems. We agreed to that legislation because we cannot change everything that comes across from Westminster. The things we can change we do change—I will not comment on them now.

Kevin Doherty, the chief executive of Disability Action, has said that the growing number of people in receipt of DLA should be a sign to the Government that better services are needed. He stated:

“Disability Action would strongly recommend that the Government take heed of the rise in DLA recipients and continue to implement adequate and sustainable services that enhance the lives of disabled people.”

The number of people in receipt of DLA—or PIP, as it will be from 20 June—will continue to rise, and the number is greater in Northern Ireland than anywhere else in the United Kingdom. That cannot be ignored.

Some people have argued that people take advantage of the system, but from my experience, I can confirm that all those who come to my office needing help with DLA forms are genuine and deserving individuals, and DLA and PIP are intended for those people. I am honestly not aware of anyone who has come to my office who did not deserve support, and my staff work very hard to ensure that those who need it get it. I am ever mindful that we are nobody’s judge in this world. We are here to help anyone who comes to our offices, and we do that.

It is important to say that the Northern Ireland Assembly has set aside money out of its block grant, money that we all agreed to—or at least the parties with responsible minds in Government agreed to it—so that we could look after those hit by the bedroom tax or the spare room subsidy, which is completely discriminatory towards those most genuinely in need. Where did that money come from? The direct budget. We set that money aside because we are a responsible Government, which is why, looking forward to the elections on 5 May, the Democratic Unionist party can honestly say, with no fear of contradiction, that we are building a better future for everyone in Northern Ireland. We are doing that through responsible governance, paying our way and looking after the vulnerable, those on low incomes and in poverty, and the disabled. We are doing our best to ensure that they are looked after. I am sure that, when they respond, the Minister and shadow Minister will accept those points.

Philip Hollobone Portrait Mr Philip Hollobone (in the Chair)
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We now come to the Front-Bench speakers, after whom we will be able to hear again from Christian Matheson, who can sum up the debate at the end.

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Debbie Abrahams Portrait Debbie Abrahams
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That is the latest figure from the website. Also, last year, fewer than 37,000 disabled people received support from Access to Work, out of the 1.3 million disabled people who are fit and able to work. Much, much more needs to be done. It does not stop there. Other cuts have included the bedroom tax, cuts to supported housing through the local housing allowance and the 1% cut in housing benefit—there has only been a reprieve for the next 12 months. I could also mention other cuts and policies such as sanctions. Those are all having and will continue to have an adverse effect on the sick and disabled.

This is the first time that the Minister and I have debated since the recent change in leadership at the Department. The new Secretary of State made sympathetic overtures in his statement to the House, and I welcome the Government’s U-turn on the cut to the personal independence payment proposed in last month’s Budget, but as the Channel 4 “Dispatches” programme a couple of weeks ago showed, the PIP assessment process is clearly not fit for purpose. According to a number of my constituents—if I have time, I would like to mention a couple of them—

Philip Hollobone Portrait Mr Philip Hollobone (in the Chair)
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Order. The hon. Lady does not have the time. She has already gone well over her five minutes. I know she only has a page and a half to go. If she wants to quickly go through that, that will be fine, but she will have to draw her remarks to a close pretty quickly.

Debbie Abrahams Portrait Debbie Abrahams
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I am grateful for that, Mr Hollobone. I am sorry; I thought we were finishing at 6.14 pm.

Philip Hollobone Portrait Mr Philip Hollobone (in the Chair)
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Order. We are finishing at 6.14 pm. I have to work within the recommended time limits given to me by Mr Speaker. In an hour-long debate, the limit is five minutes for the SNP Front-Bench spokesperson, five minutes for the Opposition Front-Bench spokesperson and 10 minutes for the Minister. The hon. Lady has now had the same time as the SNP Front-Bench spokesperson, who went over. If she can draw her remarks quickly to a close, that will be fine.

Debbie Abrahams Portrait Debbie Abrahams
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I am grateful, Mr Hollobone, and will take your comments on board.

I would be grateful if the Minister could respond to the details I have sent him in writing regarding an inquiry to investigate the qualifications, training and behaviour of assessors; just how widespread the appalling behaviour we witnessed on that Channel 4 programme is; the validity and efficacy of the assessment tools—the Royal College of Psychiatrists was dismayed at the inappropriate standards and tools being used—particularly for people with chronic, fluctuating and mental health conditions; and the performance monitoring of contracts, not only in terms of activity levels but to ensure ethical standards of practice.

I have met many sick and disabled people since I was elected in 2011. Some are barely surviving and are hanging on by their fingertips. I genuinely fear for them. Of course, we know that many have not survived and have taken their own lives or just faded away.

Governing is about choices. The revenue lost to the Exchequer every year as a result of tax fraud is equivalent to what we spend on disabled people through DLA and PIP—£16 billion. If the Government truly believe in fairness and in addressing the real inequalities in this country, they need to reflect that in their policies. They need to clamp down on tax fraud and ensure that our most vulnerable in society are looked after properly, not plunged into poverty or worse. The Government should not just talk the talk, but walk the walk.

Worcester University Arena: Disabled People and Sport

Philip Hollobone Excerpts
Tuesday 12th April 2016

(8 years ago)

Westminster Hall
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Robin Walker Portrait Mr Walker
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I would be delighted to do that and I thank the hon. Lady for her intervention. I would also be delighted to extend an invitation to the all-party group to come and visit the Worcester arena, because I think it is a genuinely unique national asset and something that we should draw to the attention of that group, so I am very grateful for the intervention.

Beyond that are hundreds more people who will be inspired to believe in themselves and develop their skills at both competitive and participatory level by the arena and the access to sport that it provides. Crucially, it is not just a venue for international level or even university level sport, but a key facility for encouraging and supporting basic participation and inclusion for groups ranging from schools to hospices to the elderly. Charities such as Whizz-Kidz nationally and Acorns Children’s Hospice locally have already benefited from its facilities, and I expect many more to do so as the international centre for inclusive sport widens its scope and reach.

The arena received some of its initial funding from the national lottery’s Iconic Facilities Fund and later received the Guardian award for a building that inspires. I suggest that its contribution, both present and future, to disability confidence and disability employment is one more reason why it should continue to inspire and be an icon.

I know that the Minister shares my enthusiasm for this inspirational Worcester landmark. I urge him to ensure that colleagues across Government share the knowledge of what it does and can do for disabled people. I ask for his continuing support as we seek to create in Worcester a genuine gold standard for disability confidence, with a gold-clad heart in our international centre for inclusive sport. I hope that he will continue to work with me to ensure that Worcester can become a beacon for disability confidence and to improve the lives, the life chances and the working opportunities for disabled people.

Philip Hollobone Portrait Mr Philip Hollobone (in the Chair)
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I am sure that there will be general rejoicing on the streets of Worcester today, but let me add my congratulations to my hon. Friend on the occasion of his birthday.

Motability Car Scheme

Philip Hollobone Excerpts
Tuesday 23rd February 2016

(8 years, 2 months ago)

Westminster Hall
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Alan Brown Portrait Alan Brown (Kilmarnock and Loudoun) (SNP)
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It is a pleasure to serve under your chairmanship for the first time, Mr Hollobone. I am glad to be able to bring this motion forward and to have secured the debate, but—

Philip Hollobone Portrait Mr Philip Hollobone (in the Chair)
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Order. Would the hon. Gentleman be kind enough to move the motion and then do his speech?

Alan Brown Portrait Alan Brown
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Apologies. I beg to move,

That this House has considered the Motability car scheme.

I am glad to bring the motion before the House today, but in truth it would be much better if this topic did not require consideration at all. The origins of this stem back to the previous Parliament and the change from the disability living allowance to the personal independence payment in April 2013. At the time, some of the changes were dressed up as fairness and giving people more control, but there is no doubt that there were concerns that DLA self-assessment, the automatic qualification process and, sometimes, the fact that there was no follow-up could possibly be abused.

That was the thought process that definitely drove the Tory ideology, and that has overshadowed how best to manage the system to help people with disabilities. Throw in a projected £2.5 billion saving and the fact that an estimated 600,000 fewer people would end up on PIP compared with DLA and we can see that this was just another assault on the disadvantaged. For me, the key change in assessing enhanced mobility was the reduction in the distance of the walking assessment from 50 metres down to 20 metres. Imagine it: somebody can go into an assessment centre and sit down and possibly be at risk of already meeting the walking test.

The enhanced rate is critical. The Motability scheme allows those receiving the highest rate of DLA or PIP to lease a suitable adapted vehicle, powered wheelchair or mobility scooter, in return for their weekly award. The Motability scheme is particularly important for enabling disabled people to be independent and to manage their condition. It allows users to participate in social activities and do the things that many of us take for granted, such as being able to continue to care for their children.

If we look back at the history, the Motability scheme was founded in 1977. It started out with a single car and has grown into a scheme that operates on a completely UK-wide basis, with nearly 650,000 users at present, which includes 15,000 using electric scooters and wheelchairs. It is a massively respected scheme, it is a charitable body and it has been praised by the National Audit Office for providing good value for money.

The Motability scheme plays a vital role for many disabled people across the country. Restricting access to Motability vehicles for those who have relied on them will undoubtedly increase the isolation that many disabled people feel.

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None Portrait Several hon. Members rose—
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Philip Hollobone Portrait Mr Philip Hollobone (in the Chair)
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Order. The debate finishes at 5.30 pm. I will start to call the Front Benchers at eight minutes past 5, with five minutes for the SNP, five minutes for Labour, 10 minutes for the Minister and two minutes for Alan Brown to sum up at the end. There are six hon. Members standing. We have just less than 20 minutes. I am a bear of little brain, but I reckon that is three and a half minutes each, so I will impose that time limit, starting with Ben Howlett.

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Philip Hollobone Portrait Mr Philip Hollobone (in the Chair)
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I call Alan Brown to sum up.

Oral Answers to Questions

Philip Hollobone Excerpts
Monday 2nd November 2015

(8 years, 6 months ago)

Commons Chamber
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Shailesh Vara Portrait Mr Vara
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May I bring the hon. Gentleman into the 21st century? There have been over 1.5 million visits to the Pension Wise website. We are confident we will make sure that the public are aware of what Pension Wise has to say, and that people can access the website or have face-to-face, telephone or online interviews.

Philip Hollobone Portrait Mr Philip Hollobone (Kettering) (Con)
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I am getting a growing number of inquiries from women in their early 60s who seem to be unaware of the changes to the retirement age. I am worried that these ladies have not been contacted by the relevant Department and seem to be unaware that their retirement date will be rather later than they had imagined. What can be done to help them?

Shailesh Vara Portrait Mr Vara
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My hon. Friend makes a very good point. May I put on the record the facts and circumstances? Between April 2009 and March 2011, the Department proactively mailed all women born between 6 April 1950 and 5 April 1953, informing them of their state pension age under the Pensions Act 1995. Following the 2011 changes, the Department wrote to all individuals directly affected to inform them of the change to their state pension age. Sending mail to those individuals, who are due to reach state pension age between 2016 and 2026, was completed between January 2012 and November 2013.

Oral Answers to Questions

Philip Hollobone Excerpts
Monday 7th September 2015

(8 years, 8 months ago)

Commons Chamber
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Iain Duncan Smith Portrait Mr Duncan Smith
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Absolutely; that is exactly right. This is about the measures we take that keep people out of poverty in a sustained way. I have talked already about the rise in the national living wage, but we are also doubling free childcare to 30 hours a week; raising educational standards; and expanding successfully the troubled families programme to a further 400,000 families. In addition, the early years pupil premium is hugely important in helping the most troubled families.

Philip Hollobone Portrait Mr Philip Hollobone (Kettering) (Con)
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What has happened to the number of workless households since my right hon. Friend became Secretary of State for Work and Pensions?

Iain Duncan Smith Portrait Mr Duncan Smith
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We inherited a situation where nearly one in five households in Britain had nobody in work at all. It is far more likely for someone who is out of work to be in poverty and for their children to be in poverty. We have pretty nearly halved that level and have the lowest number of workless households since records began.

Oral Answers to Questions

Philip Hollobone Excerpts
Monday 22nd June 2015

(8 years, 10 months ago)

Commons Chamber
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Justin Tomlinson Portrait Justin Tomlinson
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It is important to recognise that other benefits are backdated. We have made huge progress. The backlog has been falling month on month since August 2014, and we are now within where we would expect to be as part of usual business. We are looking at a median time, end to end, of 11 weeks. We will continue to monitor that important issue closely.

Philip Hollobone Portrait Mr Philip Hollobone (Kettering) (Con)
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May I draw the Minister’s attention to a letter I received from a constituent last week? He says:

“I was recently contacted by DWP to be assessed for PIP…I sent the forms off and within 3 days had a medical assessment at my home…I have to tell you that the process from start to finish was 3 weeks. Is this a record?...Whilst we read a lot in the media I think my recent experience shows the system may at last be improving.”

Justin Tomlinson Portrait Justin Tomlinson
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I thank my hon. Friend for that. Claims are now cleared at four times the rate they were in January 2014. We have quadrupled the number of healthcare professionals, introduced more than 200 new assessment rooms, doubled the number of DWP decision-making staff, and improved IT systems and claimant communication. I am delighted that my hon. Friend’s constituent has benefited from those improvements.

Oral Answers to Questions

Philip Hollobone Excerpts
Monday 9th March 2015

(9 years, 2 months ago)

Commons Chamber
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Philip Hollobone Portrait Mr Philip Hollobone (Kettering) (Con)
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T4. Since 2010, unemployment has halved in Kettering. Which Minister is responsible month on month for announcing the big reductions in unemployment we have seen and will she step forward to the Dispatch Box to accept the thanks of a grateful nation?

Esther McVey Portrait The Minister for Employment (Esther McVey)
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Obviously, I would like to thank my lovely assistants, who are sitting behind me, in a bit of a role reversal. We are led by the Secretary of State, who 10 years ago wrote about “Breakdown Britain” and “Breakthrough Britain”, and about what a compassionate Conservative Government would want to do by providing a ladder to help people who might have been left in despair to come forward, get a job and prosper. So, to him!

Allied Steel and Wire (Pensions)

Philip Hollobone Excerpts
Tuesday 10th February 2015

(9 years, 2 months ago)

Westminster Hall
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Philip Hollobone Portrait Mr Philip Hollobone (in the Chair)
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Kicking off this morning’s proceedings on the important topic of Allied Steel and Wire pensions is Mr Gordon Henderson.

Gordon Henderson Portrait Gordon Henderson (Sittingbourne and Sheppey) (Con)
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Thank you, Mr Hollobone—it is a real delight to see such a cheery face in the Chair for a debate so early in the morning.

I want to raise an issue that has been of concern to a group of my constituents for the past 13 years. That group comprises ex-ASW workers who lost their pensions when the company went into receivership in July 2002 and was declared insolvent the following year. Of course, it was not just ASW workers in Cardiff and Sheerness who faced the loss of their pensions in that era, when a large number of final salary pension schemes were wound up. Indeed, 40,000 people were affected at the time, and many more have been affected since. However, I would like to concentrate most of my remarks on members of the ASW pension plan or the ASW Sheerness Steel Group pension fund, which were defined-benefit payment schemes based on final salary and length of service.

Many of those workers lived in my constituency, and they were treated disgracefully. Their story really starts following the raid on the Mirror pension scheme by Robert Maxwell, which led to the introduction of legislation in 1997 with the intention of ensuring that all company pension schemes were correctly funded and protected. The benchmark used was the minimum funding requirement. Pension schemes had to be funded to a level that met the MFR. Therefore, a scheme funded to 100% of the MFR would be properly funded and safe—or so most people believed. However, nothing was further from the truth. In fact, should a scheme funded at 100% of the MFR have been wound up, it would have bought only about 60% of the expected benefits.

The problem was that there was nothing in the legislation to force the higher levels of funding needed to deliver the expected pensions. The MFR was heavily criticised by the parliamentary ombudsman in the report “Trusting in the pensions promise”. The reality was that companies were penalised through increased taxation if their pension schemes were funded at more than 10% above the MFR. Pension funds considered able to finance full pensions were deemed to be overfunded. That led many companies to introduce pensions holidays during the 1990s. That included ASW, whose pension scheme was very healthy, standing at about 130% of the MFR. To avoid taxation, the company introduced a pensions holiday for several years, during which it made no contributions to its pension fund. It eventually reduced the scheme to just over 100% of the MFR.

When the ASW pension plan and the Sheerness Steel Group pension fund were terminated in 2002 and started to be wound up, it was found that there were insufficient assets to meet the schemes’ liabilities. Under the legislation in place at the time, if there were insufficient assets when a scheme was wound up, the employer was required to make up the difference, but an insolvent company such as ASW might not be able to do that. In such cases, those assets that were available had to be distributed in accordance with a statutory priority order—a provision introduced in 1997 under the Pensions Act 1995. Normally, that ensured that existing pensioners got all their due pension, but active and deferred scheme members might get only a small proportion of their entitlement. The proportion of their promised pension to which ASW workers were entitled was about 40%.

As hon. Members can imagine, that was a huge shock to the ASW workers in my constituency, particularly because, before the Sheerness Steel Group pension fund was wound up, the Government had assured them and many other workers that their pensions were safe. One Government booklet on occupational pensions posed the following question:

“How do I know my money is safe?”

It obligingly gave the following answer:

“Occupational pension schemes in the private sector are set up under trust law. The trustees must run the scheme in the interests of the members and in line with…trust law…the trust deed (a legal document) and rules; and…specific laws about pensions.”

It went on to explain:

“Although your employer pays into the scheme and may be a trustee, the assets of the pension scheme belong to the scheme, not to your employer. As a scheme member, you are protected by a number of laws designed to make sure schemes are run properly and to make sure funds are used properly.”

Like workers in many other companies, ASW pensioners believed what they were told. If they had not been given those assurances, they might have transferred to a different scheme, although it is worth noting that independent financial advisers were told by the pension regulator at the time not to transfer people out of “safe” final salary schemes.

Helped by my predecessor in Sittingbourne and Sheppey, Derek Wyatt, and by my right hon. Friend the Member for Thornbury and Yate (Steve Webb), who is now the Pensions Minister, ASW made a complaint to the parliamentary ombudsman, whose subsequent report stated that the general public had every reason to believe that their occupational pensions were safe, because of statements repeatedly made by the Department for Work and Pensions and because of other Government actions.

The then Government rejected that report and took no action. The Pensions Action Group initiated a judicial review of that rejection, and the High Court found in its favour. The Government appealed the ruling, but the Appeal Court upheld the High Court judgment. In 2003, the Government sought to improve protection for members of pension schemes by proposing to introduce the Pension Protection Fund, a levy-based scheme that eventually came into being in April 2005. However, the PPF did not provide protection for workers who had lost pension rights before the legislation came into force.

Following considerable pressure from right hon. and hon. Members on both sides of the House and determined campaigning from the Pensions Action Group, the Government eventually introduced the financial assistance scheme in 2004. The FAS promised 90% of earned pension to workers who had lost their pensions before the introduction of the PPF. However, 90% of an earned pension was not the same as 90% of an expected pension based on any particular scheme, such as that in which ASW workers had invested. Compensation payments were much lower, so for the Government continually to quote a 90% figure was, at best, disingenuous. The FAS also provided little inflation protection. In addition, a £26,000 payments cap was introduced, badly affecting people with good salaries, such as steel workers, and particularly those with long service.

When the PPF was eventually introduced in 2005, it acted like an insurance scheme funded by pension funds and without the input of any Government money.

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Mark Harper Portrait Mr Harper
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I am grateful to my hon. Friend for that clarification. He has already written to the scheme, so I will draw his comments to the attention of the Minister for Pensions. It may be helpful for the Minister to look at the case and perhaps write to my hon. Friend about it, because it is difficult to go into the specifics of an individual case in an Adjournment debate.

My hon. Friend rightly raised the subject in his role as Member of Parliament for his constituents. He acknowledged in his speech the assistance he has received from those in his constituency who have campaigned on the matter. I recognise that he and those whom he represents are probably disappointed by what I have had to say. However, I hope he understands that, given the very significant contribution that taxpayers rightly continue to make to the financial assistance scheme, there is a limit to the amount of support that taxpayers can give. I fear that it will not, therefore, be possible to deliver the things that he has requested, given the circumstances that we still face in the public finances because we are dealing with the legacy that we inherited from the previous Government.

Philip Hollobone Portrait Mr Philip Hollobone (in the Chair)
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I thank all hon. Members who took part in that important debate for covering all the issues pithily and succinctly. The next debate is not due to start until 11 o’clock, so I will suspend the sitting until that time. However, if the participants arrive a few minutes early, we will start when they arrive. The sitting is, therefore, suspended until about 11 o’clock.