Oral Answers to Questions

Rebecca Smith Excerpts

Tuesday 3rd December 2024 Commons Chamber

[Chris Law (Dundee Central) (SNP)]

1. If she will make an assessment of the potential impact of the National Insurance Contributions (Secondary Class 1 Contributions) Bill on the cost of delivering public services.

[Rebecca Smith (South West Devon) (Con)]

3. What assessment she has made of the potential impact of the proposed increase in employer national insurance contributions on public sector organisations.

[The Exchequer Secretary to the Treasury (James Murray)]

As we set out in the autumn statement, the Government have set aside funding to support the public sector with the additional cost of employer national insurance contributions. The amounts are £4.7 billion in 2025-26, £4.7 billion in 2026-27, £4.8 billion in 2027-28, £4.9 billion in 2028-29 and £5.1 billion in 2029-30. The Government plan to update Parliament on allocations by Department as soon as possible.

[James Murray]

The funding for the impact on public sector organisations includes funding for the devolved Governments, which is allocated through the Barnett formula in the usual way. It is the responsibility of the devolved Governments to manage devolved workforces. Might I say that if the bill is somewhat higher in Scotland, that may be due to the Scottish Government’s decisions about the size of the public sector?

[Rebecca Smith]

A major housing association serving not only Plympton, Plymstock and Ivybridge in my constituency but the rest of Plymouth and other parts of Devon and Cornwall will have to shoulder three quarters of a million pounds in increased national insurance contributions. That is money that could have been spent on new homes for some of the most vulnerable in my constituency. How will the Minister reassure my constituents patiently waiting for much-needed social housing when they realise that they will have to wait longer because of the Chancellor’s decisions?

[James Murray]

We recognise that the decision on national insurance contributions is a tough one, but we also recognise that it was necessary for the Chancellor to set out a Budget that included a record set of promises on home building. We are set to build 1.5 million homes over the course of this Parliament, investing in social and affordable housing. That is what will benefit the hon. Member’s constituents who need a decent home.

Winter Fuel Payment

Rebecca Smith Excerpts

Tuesday 10th September 2024 Commons Chamber

[Rebecca Smith (South West Devon) (Con)]

Nearly 22,000 of my constituents will lose their winter fuel payments. Currently, only 1,500 will receive it. That is a massive cliff edge for those 22,000 residents. While many of them may feel that they do not require that payment, as has been mentioned by other hon. Members, the vast majority of those pensioners fall into low and middle-income brackets because things do not have such high financial value in the south-west.

As the hon. Member for North Cornwall (Ben Maguire) alluded to, many properties are off-grid. Members may not have realised that 24% of homes across the south-west do not have gas, which is a much cheaper source of energy. They resort to using oil and logs to heat their homes, with the enormous costs that go with them. That is an additional challenge.

Concerns have been raised about those who are single, those in receipt of the older basic state pension, which is not as high as the new state pension, and those with health conditions. The first resident to contact me was a 74-year-old single man, on an older-style pension, who was just outside the bracket for pension credit or any other form of benefit, who was deeply concerned about this winter.

[Joe Robertson (Isle of Wight East) (Con)]

My hon. Friend makes a good point about those with health conditions. Does she agree that there is no provision in the proposal for those living with dementia or long-term frailty? Those are not means-tested diseases or conditions, yet the Government have not made any provision or assessment of how those living with dementia will miss out.

[Rebecca Smith]

I agree. My hon. Friend makes an incredibly important point about those vulnerable older people who live with dementia; many of our constituents will be in that situation.

Why are we not looking at alternative ways to deal with this cliff edge? A couple of years ago, the Conservative party proposed the council tax rebate scheme, which used the council tax system as a mechanism to ensure the most vulnerable received support. Single-person households, those where someone had dementia, or households in receipt of council tax credit because they did not have a particularly high income received a discount through the council tax rebate scheme. That system could be replicated with the winter fuel payment, which would offer an alternative way of avoiding that cliff edge for so many residents.

Finally, I know that health has already been mentioned, but I wish to use this as an opportunity to highlight the fact that so many more elderly people will need hospital care this winter, but that is massively impacted and at risk because the Government will not confirm which of the new hospital programmes are going forward. In particular, the emergency and urgent care centre in Plymouth will be vital to providing the healthcare that our older people will need if they are unable to heat their homes or to look after themselves, and to ensuring that they have all the support they need.