Pension Schemes Bill [Lords]

Rosie Winterton Excerpts

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Monday 16th November 2020 Commons Chamber

[Stephen Timms (East Ham) (Lab)]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Dame Rosie Winterton)]

With this it will be convenient to discuss the following:

New clause 2—Pensions Advisory Commission—

“(1) The Pensions Regulator shall establish a committee to be known as the Pensions Advisory Commission.

(2) The Commission shall consist of—

(a) members of the Regulator as provided under section 2(1) of the Pensions Act 2004, and

(b) five other persons appointed by Her Majesty on the recommendation of the Secretary of State.

(3) A person appointed under subsection (2)(b) shall exercise only functions in pursuance of the duties in subsections (5) and (6).

(4) The Commission shall be chaired by a person appointed under subsection (2)(b).

(5) It shall be the duty of the Pensions Advisory Commission to submit to the Secretary of State each calendar year, beginning with the year 2022, a report setting out the Commission’s views on—

(a) the impact of provisions in Parts 1, 2 and 4 of this Act on—

(i) persons in different parts and regions of the United Kingdom,

(ii) equal treatment of men and women in access to pension provision, and

(iii) persons with a protected characteristic under section 4 of the Equality Act 2010; and

(b) the effectiveness of the powers in Parts 1 to 3 of this Act in enabling the Pensions Regulator to achieve its objectives under section 5 of the Pensions Act 2004.

(6) It shall also be the duty of the Commission to report to the Secretary of State by 31 October 2021 its views on when commercial operators should be able to enter the market for provision of a pensions dashboard service.

(7) The Secretary of State must lay before Parliament a copy of every report received from the Commission under this section.”

New clause 3—Pension accounts—

“(1) A jobholder to whom section 3 of the Pensions Act 2008 applies may by notice require an employer to arrange for the jobholder to receive into a pension account any contribution which would otherwise be made by the employer into an automatic enrolment scheme.

(2) A contribution by a jobholder or by their employer into the jobholder’s pension account shall be invested in a pension scheme offered by an approved pension provider.

(3) The Secretary of State may by regulations make provision—

(a) about the form and content of a notice given under subsection (1), or

(b) about the arrangements that the employer is required to make.

(4) The Secretary of State may make regulations to set criteria by which a pension provider may be approved for the purposes of subsection (2).

(5) Regulations under this section shall be made by statutory instrument and may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.”

New clause 4—Employer debt: trustees’ discretion—

“(1) The following changes are made to the Occupational Pension Schemes (Employer Debt) Regulations 2005 (SI 2005/678).

(2) In regulation 2, in the definition of “scheme apportionment arrangement”—

(a) in sub-paragraph (f)(ii), after “apply”, insert “but not if the circumstances in paragraph (h) apply”;

(b) at end insert—

“(h) the consent of the remaining employer or employers shall not be required under (f)(ii) above where all of the following conditions apply—

(i) the departing employer’s debt was treated as becoming due prior to the coming into force of this provision; and

(ii) the departing employer’s debt was less than 0.5% of the scheme’s overall liabilities, as estimated by the trustees or managers on advice of the scheme actuary, as if the whole scheme had been winding-up at the time the debt was treated as becoming due; and

(iii) the employer in question was operating as an unincorporated business during his participation in the scheme; and

(iv) the trustees or managers consider that, in the context of the scheme overall, taking into account factors such as the scheme’s assets, liabilities and the trustees’ or managers’ most recent assessment of the overall employer covenant, there would be no material benefit to the scheme and its members in seeking recovery of the employer’s liability share from the departing employer.”

(3) In regulation 9, after paragraph (14B), insert the following new paragraph—

“(14C) Condition L is that a debt was treated as becoming due from him under section 75 of the 1995 Act but is excluded under this Condition because—

(a) the employer’s debt was treated as becoming due prior to this Condition coming into force; and

(b) the employer’s debt was less than 0.5% of the scheme’s overall liabilities, as estimated by the trustees or managers on advice of the scheme actuary, as if the whole scheme had been winding-up at the time the debt was treated as becoming due; and

(c) the employer in question was operating as an unincorporated business during his participation in the scheme; and

(d) at or before the applicable time, the trustees or managers have made a determination not to pursue the debt on the grounds that, in the context of the scheme overall, taking into account factors such as the scheme’s assets, liabilities and the trustees’ or managers’ most recent assessment of the overall employer covenant, seeking recovery represented a disproportionate cost to the scheme and would be of no material benefit to the scheme overall.””

This new clause would enable pension scheme trustees to exercise discretion not to pursue employer debt following an employer’s exit from a pension scheme where such debt is below a de minimis threshold. This aims to support unincorporated employers who are now retired for business and for whom the current regulation allows no easements.

New clause 5—Employer debt: deferred debt arrangement—

“(1) The following changes are made to the Occupational Pension Schemes (Employer Debt) Regulations 2005 (SI 2005/678).

(2) In regulation 6F—

(a) in paragraph (1), leave out “A” and insert “Subject to the provisions of paragraph (8) below, a”;

(b) at end insert—

“(8) In relation to a frozen scheme, the trustees or managers of the scheme may agree to a deferred debt arrangement where the employment-cessation event occurred at a time prior to the scheme becoming a frozen scheme, providing the conditions of paragraph (3) are met at the time the deferred debt arrangement is entered into.””

This new clause would permit employers in a pension scheme closed to future accrual to apply for a deferred debt arrangement, providing they meet the other statutory tests. This aims to support employers who are still trading but were not able to use the existing deferred debt easement.

New clause 6—Regulation of pension superfunds—

“(1) The Secretary of State shall publish a statement on proposals for primary legislation in relation to a duty on the Pensions Regulator to regulate pension superfunds.

(2) For the purposes of this section, a pension superfund is a defined benefit pension scheme that allows for the severance of an employer’s liability towards a defined benefit scheme and one of the following conditions applies—

(a) the scheme employer is replaced by a special purpose vehicle (SPV) employer, or

(b) the liability of the employer to fund the scheme’s liabilities is replaced by an employer backed with a capital injection to a capital buffer.

(3) The statement under subsection (1) shall be laid before Parliament before the end of a period of six months from the day on which this Act receives Royal Assent.”

This new clause would require the Secretary of State to publish within six months of Royal Assent proposals for primary legislation to place a duty on the Pensions Regulator to regulate pension superfunds.

Amendment 15, in clause 118, page 104, line 19, at end insert—

“(3) Requirements prescribed under subsection (2) must include a requirement that a pensions dashboard service may not include a facility for engaging in financial transaction activities.”

This amendment ensures that a pensions dashboard does not include a provision for financial transaction activities.

Amendment 9, page 105, line 20, at end insert—

“(6A) A requirement under subsection (6)(d) may require the provider of a pensions dashboard service to ensure that the needs of people in vulnerable circumstances, including but not exclusively—

(a) persons who suffer long-term sickness or disability,

(b) carers,

(c) persons on low incomes, and

(d) recipients of benefits,

are met and that resources are allocated in such a way as to allow specially trained advisers and guidance to be made available to them.”

This amendment would require that specially trained advisers and guidance are made available to people in vulnerable circumstances and would provide an indicative list of what vulnerable circumstances should include.

Amendment 10, page 105, line 20, at end insert—

“(6A) A requirement under subsection (6)(d) may require the provider of a pensions dashboard service to communicate to an individual using the dashboard the difference between—

(a) provision of information,

(b) provision of guidance, and

(c) provision of advice.”

This amendment would require the provider of a pensions dashboard service to ensure that users are made aware of the differences between “information”, “guidance” and “advice”.

Amendment 11, in clause 119, page 108, line 18, after “scheme,” insert—

“(iva) the total cost of charges incurred for the administration of the scheme”.

This amendment would add information about the total cost of charges incurred for the administration and management of occupational pension schemes to the list of information displayed on the dashboard.

Amendment 13, in clause 121, page 112, line 42, after “scheme,” insert—

“(iva) the total cost of charges incurred for the administration of the scheme”.

This amendment would add information about the total cost of charges incurred for the administration and management of personal and stakeholder pension schemes to the list of information displayed on the dashboard.

Amendment 8, in clause 122, page 116, line 37, at end insert—

“(2A) Before any other pension dashboard services can qualify under section 238A of the Pensions Act 2004 (qualifying pensions dashboard service)—

(a) the pensions dashboard service under subsection (1) must have been established for at least one year, and

(b) the Secretary of State must lay before Parliament a report on the operation and effectiveness of the pensions dashboard service under subsection (1) in its first year.”

Amendment 14, page 116, line 37, at end insert—

“(3) Before any other pension dashboard services can qualify under section238A of the Pensions Act 2004 (qualifying pensions dashboard service) the Secretary of State must lay before Parliament a report on the operation and effectiveness of the pensions dashboard service, including the adequacy of consumer protections.”

This amendment would require the Secretary of State to report on the operation and effectiveness of the public dashboard service (including consumer protections) before allowing commercial dashboards to operate.

Amendment 7, in clause 123, page 117, line 34, at end insert—

“(2) In exercising any powers to make regulations, or otherwise to prescribe any matter or principle, under Part 3 of the Pensions Act 2004 (scheme funding) as amended by Schedule 10, the objectives of the Secretary of State must include ensuring that schemes that are expected to remain open to new members, either indefinitely or for a significant period of time, can adopt funding and investment strategies which are suited to the characteristics of such schemes.”

Amendment 1, page 117, line 34, at end insert—

“(2) In exercising any powers to make regulations, or otherwise to prescribe any matter or principle, under Part 3 of the Pensions Act 2004 (scheme funding) as amended by Schedule 10, the Secretary of State must ensure that—

(a) schemes that are expected to remain open to new members, either indefinitely or for a significant period of time, are treated differently from schemes that are not;

(b) scheme liquidity is balanced with scheme maturity;

(c) there is a correlation between appropriate investment risk and scheme maturity;

(d) affordability of contributions to employers is maintained;

(e) affordability of contributions to members is maintained;

(f) the closure of schemes that are expected to remain open to new members, either indefinitely or for a significant period of time, is not accelerated; and

(g) trustees retain sufficient discretion to be able to comply with their duty to act in the best interests of their beneficiaries.”

This amendment seeks to ensure that open and active schemes which are receiving regular, significant cash contributions and closed schemes are treated differently, in accordance with their differing liquidity profile.

Amendment 6, page 117, line 34, at end insert—

“(2) The Secretary of State must, on or before 30 June 2021, lay before Parliament a comprehensive impact assessment of the effect on the charitable sector of changes to defined benefit schemes made under Schedule 10.”

This amendment would require the Government to produce an economic impact assessment of the changes to defined benefit schemes upon the charitable sector.

Amendment 16, in clause 124, page 118, line 45, leave out subsection (8) and insert—

“(8) In this section and in sections 41AA, 41B and 41C—

(a) “the Paris Agreement goal” means the objectives set out in Articles 2 and 4.1 of the agreement done at Paris on 12 December 2015; and

(b) “other climate change goal” means any climate change goal approved by the Secretary of State, but does not apply to a climate change goal which fails to meet the objectives of the Paris Agreement goal.

41AA Alignment with the Paris Agreement goal

(1) Trustees or managers of occupational pension schemes of a prescribed description must develop, set and implement, and from time to time review and if necessary revise, a strategy for ensuring that their investment policy, objectives and practices (including stewardship activities) are aligned with the Paris Agreement goal or other climate change goal.

(2) Such a strategy is to be known as a “Paris-alignment strategy”.

(3) The objective of a Paris-alignment strategy must be to achieve net-zero greenhouse gas emissions by 2050 or sooner, consistent with the Paris Agreement goal or other climate change goal.

(4) Provision may be made by regulations—

(a) requiring the trustees or managers of a scheme, in determining or revising a Paris-alignment strategy, to take into account prescribed matters and follow prescribed principles—

(i) as to the level of detail required in a Paris-alignment strategy; and

(ii) as to the period within which a Paris-alignment strategy must be developed, set and effected;

(b) requiring annual reporting on the implementation of the Paris-alignment strategy and progress against the objective set out in subsection (3); and

(c) requiring a Paris-alignment strategy to be reviewed, and if necessary revised, at such intervals and on such occasions as may be prescribed.”

This amendment enables regulations that would mandate occupational pension schemes to develop a strategy for ensuring that their investments and stewardship activities are aligning with the Paris agreement goals, and include an objective of achieving net-zero greenhouse gas emissions by 2050 or sooner.

Amendment 17, page 119, line 7, after “scheme” insert

“and alignment with achieving the objectives of the Paris Agreement goal or other climate change goal”.

This amendment is consequent on Amendment 16.

Amendment 18, page 119, line 8, leave out “section 41A” and insert “sections 41A and 41AA”.

This amendment is consequent on Amendment 16.

Amendment 19, page 119, line 19, after “41A”, insert “, 41AA”.

This amendment is consequent on Amendment 16.

Amendment 20, page 119, line 21, after “41A”, insert “, 41AA”.

This amendment is consequent on Amendment 16.

Amendment 21, page 119, line 22, at end insert—

“(za) provide for the Authority to undertake a review of, and report publicly on, the extent to which the activities under sections 41A and 41AA are achieving effective governance of climate change risk and alignment of pension schemes with the Paris Agreement goal;”.

This amendment enables the regulator to publicly assess the progress and development of schemes’ strategies to achieve alignment with Paris agreement goals.

Amendment 22, page 119, line 25, after “41A”, insert “, 41AA”.

This amendment is consequent on Amendment 16.

Amendment 23, page 119, line 30, after “41A”, insert “, 41AA”.

This amendment is consequent on Amendment 16.

Amendment 24, page 119, line 37, after “41A”, insert “, 41AA”.

This amendment is consequent on Amendment 16.

Amendment 2, in clause 125, page 120, line 32, at end insert—

“(e) the results of due diligence undertaken by the trustees or managers regarding the intended transfer or the receiving scheme.”

This amendment enables regulations under inserted subsection (6ZA) of section 95 of the Pension Schemes Act 1993 to prescribe conditions about the results of due diligence undertaken in relation to a transfer request such as to determine that the statutory right to a transfer is not established if specific “red flags” are identified in relation to the transfer or intended receiving pension scheme. Amendments 3, 4 and 5 are related.

Amendment 3, page 121, line 27, at end insert—

“(e) the results of due diligence undertaken by the trustees or managers regarding the intended transfer or the receiving scheme.”

This amendment enables regulations under inserted subsection (5A) of section 101F of the Pension Schemes Act 1993 to prescribe conditions about the results of due diligence undertaken in relation to a transfer request such as to determine that the statutory right to a transfer is not established if specific “red flags” are identified in relation to the transfer or intended receiving pension scheme. Amendments 2, 4 and 5 are related.

Amendment 12, in schedule 9, page 178, line 14, after “scheme,” insert—

(iva) the total cost of charges incurred for the administration of the scheme”.

This amendment would add information about the total cost of charges incurred for the administration and management of occupational pension schemes in Northern Ireland to the list of information displayed on the dashboard.

Amendment 4, in schedule 11, page 192, line 20, at end insert—

“(e) the results of due diligence undertaken by the trustees or managers regarding the intended transfer or the receiving scheme.”

This amendment enables regulations under inserted subsection (6ZA) of section 91 of the Pension Schemes (Northern Ireland) Act 1993 to prescribe conditions about the results of due diligence undertaken in relation to a transfer request such as to determine that the statutory right to a transfer is not established if specific “red flags” are identified in relation to the transfer or intended receiving pension scheme. Amendments 2, 3 and 5 are related.

Amendment 5, page 193, line 15, at end insert—

“(e) the results of due diligence undertaken by the trustees or managers regarding the intended transfer or the receiving scheme.”

This amendment enables regulations under inserted subsection (5A) of section 97F of the Pension Schemes (Northern Ireland) Act 1993 to prescribe conditions about the results of due diligence undertaken in relation to a transfer request such as to determine that the statutory right to a transfer is not established if specific “red flags” are identified in relation to the transfer or intended receiving pension scheme. Amendments 2, 3 and 4 are related.

[Stephen Timms]

I rise to speak to new clause 1, together with amendments 2 to 5, and I am grateful to those from my party, the Conservative party and the SNP who have added their names to them.

New clause 1 addresses a serious flaw in the implementation of the pension freedoms that George Osborne announced in his Budget speech in 2014 and that were implemented the following year. This is what George Osborne said in that Budget speech on 19 March 2014:

“Let me be clear: no one will have to buy an annuity. We are going to introduce a new guarantee, enforced by law, that everyone who retires on these defined contribution schemes will be offered free, impartial, face-to-face advice on how to get the most from the choices they will now have.”—[Official Report, 19 March 2014; Vol. 577, c. 793.]

That was a recognition that there could be pitfalls in allowing people to do whatever they wanted with their pension savings—for many people, the largest sum of money they would ever have access to—and that the Government would have to ensure that everybody had access to guidance to help them make the best decisions.

The outcome of George Osborne’s promise is the Pension Wise service operated by Citizens Advice, and it is an excellent service. It is free and it is impartial, as George Osborne promised, and it gets very high satisfaction ratings from those who use it. The problem is that hardly anyone does use it, and new clause 1 is intended to fix that. The latest figures show that about one in 33 of those eligible for Pension Wise actually use it. Last month, the Department for Work and Pensions published a document entitled “Stronger Nudge to Pensions Guidance: Statement of Policy Intent”. That proposed the adoption of new nudges, which, according to the trials, would increase the take-up from one in 33 to one in nine. Well, that is not enough.

--- Later in debate ---

[Gareth Davies]

I am very grateful to my hon. Friend for his intervention. I agree that the Bill is sufficient in its current form to be able to achieve what we all want to achieve, which is to get pension funds to invest in a climate-aware way.

The last point that I will make in concluding is around this point on focus. In my experience, it is not the fund managers or the trustees whom we need to persuade or to make do anything, but the middle men and women—the gatekeepers, the investment consultants —who typically require a five-year track record and £100 million in assets held by fund managers and managed by fund managers. In my experience, that was always the issue. We were running money in a way that was really pushing things forward in terms of our climate targets. We knew that the pension clients really wanted to invest with us, but, because we could not meet the requirements of the investment consultants, we could not marry the two together. If we use the combined intellect, passion and energy of this House, from all parties, to come up with a solution to that, we could make great progress.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I am going to suspend the House for a short time—probably five or 10 minutes—to allow some extra cleaning to take place. Could Members leave the Chamber, so that the cleaning can take place? The bell will ring a minute before we are due to resume.

--- Later in debate ---

[Pete Wishart (Perth and North Perthshire) (SNP)]

On a point of order, Madam Deputy Speaker. I wonder if you could tell the House why there was the necessity for the further cleaning of the Chamber. I understand that this is the first time that this has ever happened. Is there anything in particular that the House needs to be informed about because of that arrangement?

[Madam Deputy Speaker (Dame Rosie Winterton)]

I thank the hon. Gentleman for that point of order. We were asked to suspend the House just to ensure that there was a little bit of extra cleaning. I do not have any further information other than that, but I am sure that it is precautionary, and if there is anything further that Members need to be informed of, I am sure that they will be.

[Jim Shannon (Strangford) (DUP)]

First, let me thank all those who have made contributions, which have been excellent. I thank the Minister for his response and the hon. Member for Grantham and Stamford (Gareth Davies) for the contribution he made just before me. It is a pleasure to speak on this issue. Although I know that this is not the purpose of this Bill, I cannot in all good conscience let the occasion go without raising the issue of the WASPI—Women Against State Pension Inequality Campaign—women, who still want their pension scheme. Once more, I look to the Minister for a response on that.

I want to speak to new clause 1 and some of the other amendments, ever mindful of the fact that the Bill provides for territorial extent, as set out in clause 117 and schedule 8, clause 120 and schedule 9, clauses 118, 119 and 129 and schedule 11. Pensions are a devolved matter in Northern Ireland, but this is an area where Northern Ireland has long maintained parity with Great Britain. There is, in effect, a single systems of pensions across the UK, with many pensions schemes, and indeed the regulator, the pensions ombudsman, the Pension Protection Fund and so on operating on a UK-wide basis.

Devolved government has now been restored in Northern Ireland, and we are pleased to have it in place. On 1 June, the Northern Ireland Assembly approved the legislative consent motion on the Bill, as introduced, and a further LCM will be necessary to cover amendments to the Bill, which the Northern Ireland Minister for Communities has agreed will be done and should extend this to Northern Ireland. So some things are positive on that.

I have been in contact with a number of pensions bodies that have expressed concern about the proposals in the Bill. We all know how essential a good pension is, and it is becoming more important with each month. I am sure that I am not the only one to have seen the losses in pensions in this year’s statement. I have a decent understanding of how my pension pays out, but I was listening to the girls in my office and it is clear that, although my staff members in their 40s and 50s have a grasp on their pension, the two staff members in their 20s and 30s do not and they do not seem to be able to understand just how it works. The older girls say, “I wouldn’t swap my pension but I like to see what is in it,” and they have already had a look at their pensions to know what they have. Many people are wise and astute enough to do that, but others are not and they have no understanding of what can be done. There is more to doing our best to secure our financial future than simply opening a letter—there has to be more than that.

The right hon. Member for East Ham (Stephen Timms) referred to new clause 1, which underlines the importance of an easily accessible, easy to navigate pensions dashboard that is easier to understand than an annual statement. The Association of British Insurers has said:

“Pensions Dashboards are a necessary addition to Automatic Enrolment. More than 10 million people have now been automatically enrolled into workplace pensions through inertia, and will need to find their pension pots and make decisions about them.”

We are all probably at that age, Minister, when we have to think about our pension pots, and if we are not doing so, there is something seriously wrong, because we should be. The ABI went on to say:

“Already 1 in 5 adults admit to having lost a pension pot and latest PPI research suggests that there is at least £19.4bn held in pots that consumers have lost track of.”

It is horrendous to hear that.

Supporting Disadvantaged Families

Rosie Winterton Excerpts

Monday 9th November 2020 Commons Chamber

[Dr Coffey]

It is nice to see my hon. Friend back in the House after her maternity leave. She speaks with appropriate compassion and she recognises some of the local organisations in her area. I encourage her to work with them and her council to help to ensure that the £170 million funding can be effectively distributed, so that the most disadvantaged children and families are truly helped. We want to make sure that that activity continues to support similar children through the holiday activity fund.

[Madam Deputy Speaker (Dame Rosie Winterton)]

In order to allow the safe exit of hon. Members participating in this item of business and the safe arrival of those participating in the next, I am suspending the House for a few minutes.

Social Security (Up-rating of Benefits) Bill

Rosie Winterton Excerpts

Committee stage & Committee: 1st sitting & Committee: 1st sitting: House of Commons & Report stage & Report stage: House of Commons
Thursday 1st October 2020 Commons Chamber

[DAME ROSIE WINTERTON in the Chair]

[The First Deputy Chairman of Ways and Means (Dame Rosie Winterton)]

Before I ask the Clerk to read the title of the Bill, I should explain that although the Chair of the Committee would normally sit in the Clerk’s chair, in these exceptional circumstances, in order to comply with social distancing requirements, I will remain in the Speaker’s chair, although I will be carrying out the role not of Deputy Speaker, but of Chairman of the Committee. We should be addressed as Chairs of the Committee, rather than Deputy Speakers. Excellent.

Clause 1

UP-RATING OF STATE PENSION AND CERTAIN OTHER BENEFITS FOLLOWING REVIEW IN TAX YEAR 2020-21

[Chris Stephens (Glasgow South West) (SNP)]

I beg to move amendment 1, page 1, line 10, leave out from “State” to the end of line 15 and insert—

“shall lay before Parliament the draft of an order which increases each of the amounts referred to in subsection (1) above by a percentage no less than—

(a) the difference between the general level of earnings at the beginning of the period under review and the general level of earnings at the end of that period, or

(b) the difference between the general level of prices at the beginning of the period under review and the general level of prices at the end of that period, or

(c) 2.5%,

(none) whichever is the greater.”

This amendment would require the Secretary of State to up-rate the benefits to which this Act applies in accordance with the “triple lock” of the higher of increases in prices, increases in earnings or 2.5%.

[The First Deputy Chairman of Ways and Means]

With this it will be convenient to discuss the following:

Amendment 2, page 1, line 23, at end insert—

“(2C) No draft order laid before Parliament under section (2A) above may be made in the form of the draft until the Secretary of State has laid before Parliament a report containing an assessment of the impact of its effect on levels of poverty.

(2D) The assessment required by paragraph 2C shall, in particular, consider the impact on levels of poverty in—

(a) Scotland, and

(b) Wales.”

 

This amendment would require the Secretary of State to lay before Parliament an assessment of the impact of the up-rating on levels of poverty, including in Scotland and Wales.

Amendment 3, page 1, line 23, at end insert—

“(2C) No draft order laid before Parliament under section (2A) above may be made in the form of the draft until the Secretary of State has laid before Parliament a report containing an assessment of its impact on persons not ordinarily resident in Great Britain, including the impact of exempting any such persons from entitlement to up-rating increases granted by the order.”

This amendment would require the Secretary of State to lay before Parliament an assessment of the impact on those overseas pensioners whose pensions are frozen in accordance with Government policy.

Amendment 4, in clause 1, page 1, line 23, at end insert—

“(2C) No power may be exercised under this or any other Act so as to exempt persons not ordinarily resident in Great Britain from entitlement to up-rating increases granted by an order made by virtue of section (2A) of this Act.”

This amendment would ensure that this up-rating applied to all overseas pensioners, including those whose pensions have previously been frozen in accordance with Government policy.

Amendment 5, page 1, line 23, at end insert—

“(2C) No draft order laid before Parliament under section (2A) above may be made in the form of the draft until the Secretary of State has laid before Parliament a report containing an assessment of its impact on those affected by the changes in the state pension age made by the Pensions Act 1995 and the Pensions Act 2011; and that assessment shall, in particular, consider the impact on women born between 6 April 1950 and 5 April 1960.”

This amendment would require the Secretary of State to lay before Parliament an assessment of the impact of the up-rating on those whose state pension age was changed by the Pensions Acts 1995 and 2011, including in particular the group known as the “WASPI women”.

Clause stand part.

Clause 2 stand part.

[Chris Stephens]

It is good to see that social distancing is being applied at all times. It was remiss of me not to welcome the Pensions Minister back to his place. I did send him a private message, and thoughts of him and his wife and family are very much with us all in this House. I do welcome him back.

These are five non-controversial amendments, which I hope— [Interruption.] We seem to have a laugh already from the Minister. I do not know why. He has obviously not read these non-controversial amendments. We have tabled some probing amendments and look forward to his response.

The first amendment is a theme that was picked up on Second Reading by the hon. Member for North East Fife (Wendy Chamberlain), which is to ensure that the triple lock is applied in legislation. The Government would have to give an explicit commitment to maintain the triple lock for the year ahead. The amendment seems to speak very much for itself.

Amendment 2 asks for an assessment on poverty, which again was picked up on Second Reading. It is certainly our view that the Government are overseeing some brutal benefit cuts, which have exacerbated poverty, and we require a proper impact assessment of the proposed uprating and the impact that has on poverty levels in each of the devolved nations.

Previous UK Budgets have introduced some fairly punitive cuts to social security—certainly the most punitive in recent memory—and we are starting to see an active reversal of reducing and fighting poverty. The Social Metrics Commission report, which was referred to at an earlier stage, notes that prior to the outbreak 14.4 million people in the UK were already living in poverty, including 33% of children, 22% of all working-age adults and 11% of pension-age adults. The largest employment impacts of covid have been felt by those in the deepest poverty, with many at risk of falling deeper into poverty as a result of job losses, reduced hours or reduced pay. We have tabled amendment 2 to provide for that impact assessment.

Amendments 3 and 4 deal with the issue of frozen pensions. UK pensioners deserve a full uprated state pension, wherever they choose to live. Due to the historical arbitrary bilateral agreements between the UK and other countries around the world, some UK pensioners who live overseas do not have their state pension payments uprated every year. That means that their pension is frozen at the level at which they first received it for the rest of their lives abroad. As of August 2019, that affected over 5,110 UK pensioners, who we believe are being adversely affected by the UK Government’s frozen pension policy. Pensioners who have paid the required national insurance contributions during their working lives in expectation of a decent basic pension and retirement find themselves on incomes that fall in real terms year on year. Pensioners will now face ending their days in poverty because they choose to live in the wrong country, in most cases without any knowledge of the implications of their choice for their pension.

In our view the state pension is a right, not a privilege. UK pensioners who have paid their fair share of national insurance contributions should not have to suffer simply because successive Governments have failed to establish bilateral agreements with certain countries. Therefore, we are asking that amendments 3 and 4 be agreed. I also refer hon. Members to the frozen pensions campaign, of which many hon. Members are members.

Amendment 5 relates to 1950s-born women, an issue that I am sure the Pensions Minister would be disappointed if I did not mention. As a previous Speaker of this House advised in 2015, persistence is not a vice. The amendment would require the Government to publish an assessment of the impact of uprating on those whose state pension age was changed by the Pensions Acts 1995 and 2011, including in particular 1950s-born women, or WASPI—Women Against State Pension Inequality Campaign—women, as they are known.

The numbers of ’50s-born women and men claiming working-age benefits has rocketed, and they should have been receiving their state pension. This is a double whammy, with those with occupational defined-contribution pensions to fill the gap being squeezed even further. Those claiming benefits find themselves having lost Government support in many cases, excluded either due to gaps in national insurance contributions, because of low-paid, precarious work, or because of other parts of household income. We are very aware of the history of 1950s-born women and the inequality they have faced throughout many parts of their lives. They now find themselves discriminated against on the basis of so-called equality, while those losing their jobs or seeking work are being further disadvantaged by an unequal playing field and a shrinking job market.

I look forward to hearing the Minister’s response to our amendments.

Social Security Benefits: Claimant Deaths

Rosie Winterton Excerpts

Monday 24th February 2020 Commons Chamber

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

Thank you, Madam Deputy Speaker, for granting an Adjournment debate on such an important issue.

The first duty of any Government is to keep its citizens safe, particularly the most vulnerable among us. This evening, I want to discuss the deaths of vulnerable social security claimants since 2014. That those deaths have been linked to the actions of the Department for Work and Pensions is a matter of grave concern. It shows abject failure on the part of not only the Department, but the Government. Ministers set policy and the Department implements it, so both are culpable. However, this is not just about what policies are implemented but about how they are delivered, and that relates to the culture in the Department. [Interruption.]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. May we have a little bit of quiet? We cannot hear what the hon. Lady is saying.

[Debbie Abrahams]

Thank you, Madam Deputy Speaker. I shall speak up.

As I was saying, the leadership determines the culture in an organisation. In a Department, that culture is determined by Ministers. It is a question not just of the policies and their implementation, but of the tone and culture that are related to their delivery.

We know that the Government’s health assessment process and sanctions regime leave sick and disabled people in fear and dread as they wait for the inevitable envelope to drop on their doormat inviting them to participate in a work capability assessment or a personal independence payment assessment, or possibly both. More than three quarters of claimants who appeal against assessment decisions telling them that they are fit for work have those decisions overturned, and that is because these are poorly people. We also know that in 2013 the death rates among people on incapacity benefit or employment and support allowance were 4.3 times higher than those in the general population, an increase from 3.6 times higher in 2003. That showed the level of sickness and ill health in that group of people.

Peer-reviewed research published in the Journal of Epidemiology and Community Health estimated that, between 2010 and 2013, work capability assessments were independently associated with an additional 590 suicides, 280,000 cases of self-reported mental health problems, and 725,000 antidepressant scripts. Not only are those assessments not fit for purpose; they are actually doing harm.

Social Security

Rosie Winterton Excerpts

Monday 10th February 2020 Commons Chamber

[Madam Deputy Speaker (Dame Rosie Winterton)]

Before I call the Minister to move motion 4, I should alert the House to the fact that the published Order Paper states, incorrectly, that the instruments referred to in motions 4 and 5 have not yet been considered by the Joint Committee on Statutory Instruments. In fact, they have been. The online version of the Order Paper has been corrected. I call the Minister, Will Quince, to move motion 4.

Department for Work and Pensions

Rosie Winterton Excerpts

Tuesday 2nd July 2019 Commons Chamber

(3) a further sum, not exceeding £49,265,200,000 be granted to Her Majesty to be issued by the Treasury out of the Consolidated Fund and applied for expenditure on the use of resources authorised by Parliament.—(Jeremy Quin.)

[Madam Deputy Speaker (Dame Rosie Winterton)]

I inform the House that Mr Speaker has not selected either of the amendments listed on the Order Paper.

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[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. This is a well-subscribed debate, as is the next one. I do not want to impose a formal time limit at this point, but if colleagues could take eight minutes or less that would be very helpful.

Inequality and Social Mobility

Rosie Winterton Excerpts

Wednesday 12th June 2019 Commons Chamber

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. As colleagues will see, a good number of them wish to speak in the debate, and there is a further debate after it, so I am imposing a six-minute time limit, of which I was able to warn Members.

Department for Education

Rosie Winterton Excerpts

Tuesday 26th February 2019 Commons Chamber

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. As colleagues can see, a number of speakers wish to contribute to this debate and to the debate after it. They are both very well subscribed. I am therefore going to impose a seven-minute time limit. I was able to warn the next speaker that that would happen.

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[Layla Moran]

Indeed, we have heard about the higher needs block; that is yet another area where there is cost-shunting.

On the twin-track system, what we need to do is look beyond: is one system better than the other? Actually, we have a lot to learn from the sorts of innovations that we are seeing in schools, but I am not convinced from the evidence we have seen in the Public Accounts Committee that we have a handle on the data. In our recommendations to the Department we have asked it to look at, for example, different types of multi-academy trusts—is there a difference between those that are locally based and those that are spread out or between the rural and the urban? Is there a north-south divide when it comes to academy trusts? What can we learn from the data? At the moment, when the accounts are produced, we do not have that data.

I very much echo what the right hon. Member for Harlow (Robert Halfon) was saying earlier. I firmly believe that this is not just a question of more money for schools. More money is welcome to get them working as they hope to now, but the issue is also about driving efficiency and spreading best practice. Without the data, how will we know what is working best?

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I gently remind colleagues that if they are going to intervene, it is important that they should have been in the Chamber for the whole speech and a little bit of the debate as well.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. There are still a number of Members who wish to speak, so after the next speaker I will reduce the limit to six minutes.

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[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. In order to be able to get everybody in, I am going to have to cut the time limit to five minutes.

Universal Credit

Rosie Winterton Excerpts

Wednesday 17th October 2018 Commons Chamber

[Neil Gray]

My hon. Friend is absolutely right. That is why we need to call for the changes to follow as quickly as possible.

At my surgeries, I have met constituents desperate for help with universal credit. I will give just two examples. The first is Shelby Bowrman from Airdrie, who has become a casualty of the disgraceful two-child cap. Shelby gave birth to her daughter, her third child, after the roll-out of universal credit locally—she was due to give birth before the roll-out but was late. Shelby has now been migrated on to universal credit, and it has cost her thousands of pounds. She has been told that the two-child limit, which did not apply to the childcare element of tax credits, now kicks in for universal credit. She returned to work just two weeks after giving birth, to provide for her three children, who are aged two and under. She worked as a dental assistant during the day and for Domino’s at night. The two-child cap in universal credit has made it impossible for her to work. After I raised the case with the Secretary of State on Monday, Shelby has been told that she can get support with childcare costs but has to pay up front and then be reimbursed. She therefore has to find £2,000. That is just ludicrous and highlights why the two-child cap is discriminatory, unfair, a barrier to work and needs to go.

Another constituent at one of my Friday surgeries highlighted how universal credit completely fails to support people with mental health conditions. Her son Jordon, from Airdrie, is currently receiving acute mental health treatment but needs his universal credit application to progress, for obvious reasons. Jordon’s mental health condition is such that he is in crisis and in hospital.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order.

[Neil Gray]

With respect, Madam Deputy Speaker, I have protected time and there is a great deal that needs to be said in this debate. I will do my best to get through it as quickly as possible.

[Madam Deputy Speaker]

Order. I am simply pointing out that a lot of Members wish to speak, and that the hon. Gentleman has now been speaking for longer than the official Opposition Front Bencher.

[Neil Gray]

The Opposition Front Bencher obviously made a decision about the length of their speech, and I am doing my best to get through what I have to say.

Yet jobcentre staff told Jordon’s mum that his claim could not continue until he signed his claimant commitment—[Interruption.] I think it is important that Members listen to this, because I am talking about someone with an acute mental health condition. If he did not sign, he would have to apply for jobs from his hospital bed if he was to avoid a sanction. At what level is that not an abuse? I am not criticising jobcentre staff; they do the very best they can while implementing a disastrous policy from this UK Government. I suggest that the experience of frontline jobcentre staff rather differs from what Ministers would have us believe.

Universal credit, in its current form, is doing real damage to individuals and families. It is not just me saying that; experts are calling for change. The Joseph Rowntree Foundation says that cuts announced in 2015 will mean that 3.2 million households will typically be around £50 a week worse off on universal credit compared with tax credits.

Policy in Practice said this month that almost two in five households on universal credit will lose an average of £52 a week and that some 2.8 million households will see their income cut. Gingerbread says that the cuts to work allowances mean that the average single parent will lose £800 a year, and some will lose £2,000. Figures from the Office for National Statistics suggest that 91% of single parents are women, so they are being disproportionately affected once again. Trussell Trust data from March shows that in areas of full universal credit roll-out foodbank use was up by 52%, whereas analysis of food banks in places yet to receive the roll-out showed the rise to be 13%.

Shelter Scotland submitted evidence to the Scottish Parliament’s Local Government and Communities Committee last year, stating that the UK Government’s

“ongoing roll out of Universal Credit, the benefit cap reduction and the capping of housing benefits...directly threaten tenancies and risk pushing more people into homelessness.”

Other expert groups are demanding change, included the Resolution Foundation, Macmillan Cancer Support, Together for Short Lives—I could go on and on. The Scottish Government are using what limited powers they have to influence change, but as I have already said, we cannot continue to mitigate the mess forever.

So what needs to change? At the Budget, the Chancellor should start by investing to lift the benefit freeze, restore work allowances, scrap the two-child limit, lift the application waiting time, reduce the clawback from advances, sort the self-employed income floor, cut sanctions and restore the ESA work-related activity group and the disability components of UC. There should then be a halt to the roll-out until a fundamental review of universal credit is carried out, which should look at areas such as the digital-only approach, implicit consent, introducing split payments, rethinking the way people with mental health problems interact with the system and fixing the problems with the assessment period.

The problems with universal credit are fundamental and are causing misery, but they are problems that can be fixed with political will. This afternoon is the first test of that political will. We need to see the Government’s analysis and the papers should be released. When that confirms what we all know, this House should unite and force the desperately needed change.

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[Johnny Mercer]

No, I will not give way to the hon. Gentleman. The other thing I will not accept in this House is the illusion that Conservative Members come to work to keep the poor poor and to feather their own nests. You gave the impression that nobody on the Conservative Benches cares about getting people out of poverty, but that is simply wrong. Individuals like me would not speak up against universal credit—and so become the lightning rod for abuse whipped up by some of the creatures on social media—and do something about it simply for our own ends. We would not be able to change this policy if we listened to you—

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. Obviously this debate is heated, but it is important that the hon. Gentleman not refer to other hon. Members using the word “you”. If you use the word “you”, it is to me.

[Neil Gray]

rose—

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[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. There have been so many interventions that speeches have lasted much longer than five minutes. After the next speech, I shall have to reduce the speaking time limit to four minutes.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I am sorry, but there continue to be interventions and if we are to have any chance of getting everybody in, I am going to have to cut the time limit to three minutes, as of now.

The Secretary of State’s Handling of Universal Credit

Rosie Winterton Excerpts

Wednesday 11th July 2018 Commons Chamber

[Margaret Greenwood]

I am not going to give way and I would point out that the right hon. Gentleman has called the report “shoddy”, so excuse me if I continue. Thirdly, the Secretary of State claimed that universal—[Interruption.]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. If the hon. Lady does not want to give way, it is completely up to her.

[Margaret Greenwood]

Thirdly, the Secretary of State claimed that universal credit is working.

[Simon Hoare]

On a point of order, Madam Deputy Speaker. Is it not a custom in this place, out of common courtesy, that when one hon. Member references another—either by name or by constituency—and that Member then seeks to intervene, the request is usually acceded to?

[Madam Deputy Speaker]

It is absolutely up to the hon. Lady whether to take any interventions. Hon. Members really should not be interrupting speeches with points of order over and again. It is becoming a bit of a habit, and not a very healthy one.

[Margaret Greenwood]

Thank you, Madam Deputy Speaker.

Thirdly, the Secretary of State claimed that universal credit is working. The head of the NAO said in his letter that this is unproven. The DWP’s own survey of claimants under the full service published in June shows that just under half of all claimants were unable to register their claim online unassisted, a quarter were not able to submit their claim online at all and 40% were falling behind with bills or experiencing real financial difficulties, sometimes even nine months into their claim. A recent freedom of information request revealed that a fifth of universal credit claims are failing at an early stage because claimants are not able to navigate the online system. These people are likely to be among the most vulnerable in our society, and this Government are failing them.

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[Margaret Greenwood]

I have three minutes of my speech left, so I will take no more interventions.

The Secretary of State claimed that the NAO report did not take account of the impact of recent Government changes. However, there have been no recent changes to support people in making and managing their claim online, and we know that the Government’s universal support programme receives only limited funding. The payment delays that people are experiencing are shocking.

The DWP this week published figures on the length of payment delays for new claims due in February. The Library estimates that nearly 13,000 people were not paid in full on time and 7,500 people did not receive any payment on time at all. In December, two thirds of disabled people with limited capability for work were not paid in full on time, and last year 113,000 people—a quarter of new claims—were not paid in full on time. This is outrageous. Why were they not paid in full on time and what is the Secretary of State going to do about it? These are people on low incomes who often do not have any savings to rely on in these circumstances. The delays are causing real hardship for people, leading them to build up debt and rent arrears.

The Residential Landlords Association has made it clear that private landlords are increasingly reluctant to rent to people claiming universal credit. The National Housing Federation this week reported that nearly three quarters of housing association tenants in England claiming universal credit are in debt, compared with less than a third of all other tenants. The Government claim that no one should have to suffer hardship because advances are available, although, as the NAO said, the Government

“has not measured the impact on claimants or assessed how much hardship Universal Credit claimants suffer.”

Should it not be the Government’s duty to understand the effectiveness of their own social security system?

Advances have to be paid back, often on top of debts for utility bills and council tax arrears built up while waiting for the initial payment. One of the Secretary of State’s senior officials told the Public Accounts Committee on Monday this week that the average monthly repayment of £35 a week is “not eye-wateringly large”. Maybe not to him, but what about someone on very low income struggling to cope with basic household bills? I have received so much testimony from people up and down the country on this issue. I have heard stories of people being sanctioned because they have accompanied their mother to a cancer treatment session and stories of people with special needs not receiving the support that they should.

I put it to the Government that their policy of managed migration of just under 4 million people on legacy benefits across to universal credit that is due next year risks huge problems for the people who transfer. Although they will receive transitional protection, it will only last for two years, and the DWP’s current plan is that those people will have to make a new universal credit claim. This could bring chaos.

The NAO has made it absolutely clear that the Government should not expand universal credit until they are clear that the system could cope with higher claimant volumes. If the Government fail to get this right, there will be many people whose lives are made a misery by a benefit that is meant to support them. That is why the Secretary of State’s inadvertently misleading claim that the NAO report says that the roll-out should be speeded up matters so much. Will she give an assurance that the Government will not start managed migration until it is clear that universal credit and her Department can cope with it?

Universal credit was created to simplify the social security system. Clearly, its complexity is so often defeating both claimants and the staff administering it. It was meant to lift people out of poverty; instead it is pushing many into debt. The Government claim that the Opposition are scaremongering whenever we raise issues about the suffering of our constituents. Well, the Residential Landlords Association, the National Housing Federation, Citizens Advice, the Child Poverty Action Group, the Joseph Rowntree Foundation, the Resolution Foundation and the Institute for Fiscal Studies have all raised major concerns about universal credit.

The Secretary of State repeatedly claims her Department is testing and learning, but this testing and learning is using people like guinea pigs. This is unacceptable. Where is the dignity? Her Government are causing hardship with scant regard for the devastation to families up and down the country. She must now take responsibility for the real suffering being caused by the roll-out of this flawed programme. She must call a halt to universal credit and put forward a credible plan to fix its many failings before many more people suffer.

[Madam Deputy Speaker (Dame Rosie Winterton)]

The Question is as on the Order Paper. I call the Secretary of State.

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[Neil Coyle (Bermondsey and Old Southwark) (Lab)]

You took the disability premium away!

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. Mr Coyle, calm down. Moderation and good temper governs our debate. You are not showing much sign of that.

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[Several hon. Members rose—]

[Madam Deputy Speaker]

Order. Before I call the spokesperson for the Scottish National party, colleagues will be aware that a large number of Members wish to speak, so I will have to impose a five-minute time limit immediately.

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[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I am very sorry but, because of time constraints, I will now have to impose a three-minute limit.