Pension Credit Changes

Ross Thomson Excerpts

Wednesday 24th April 2019 Westminster Hall

[Guy Opperman]

I cannot go back to the specific debates in 2012 and say chapter and verse what was discussed at that stage, but it is a relatively normal procedure for this House to legislate on matters that will be contingent on a written ministerial statement or a commencement order. That standard practice was followed in this case. I am not aware of a fresh equality impact assessment being done. The equality impact assessment was done in respect of the Welfare Reform Act.

[Ross Thomson (Aberdeen South) (Con)]

It is interesting to listen to hon. Members. I often find that the SNP tend to weaponise welfare issues to make the charge for independence. My understanding is that powers have been devolved to Scotland under the Scotland Act 2016. Could the Minister confirm what powers are available to the Scottish Government to address this issue? Has he had any constructive discussions with the Scottish Government on the issue that the hon. Member for Glasgow South West (Chris Stephens) raises? I understand that they are pushing back the use of those powers until 2024. Does the Minister agree that rather than giving her sixth statement on indyref2 today, perhaps the First Minister should make a statement about how she will use her powers to address the issue?

[Guy Opperman]

I will deal with that point and then perhaps return to it in more detail later. I accept that there are other points relevant to this debate, but it is inevitable that devolution will come up when one discusses welfare with a colleague from the Scottish National party and other Scottish colleagues. Certainly, it has come up in relation to the campaigns on the state pension age.

My hon. Friend will be aware of two facts in particular. First, Jeane Freeman, who was my opposite number as the Scottish pensions Minister, wrote to my predecessor on 22 June 2017 concerning the powers under sections 26, 28 and 24 of the Scotland Act. Of particular interest is section 26, about which she wrote:

“This power is limited to providing help with ‘short term needs’, and those needs must require to be met to avoid a risk to a person’s wellbeing. That would not readily allow assistance to the majority of the women affected by the acceleration of the increase in their State Pension Age. Their needs and the risks to their well-being would have to be assessed individually.”

She also dealt with the creation of a new benefit under section 28, which is a possibility, and the top-up of reserved benefits under section 24, which is a wide-ranging power to make discretionary payments.

That deals with the original point in 2017. The point can then fairly be made that if the Scottish Government disagree with any of the UK Government’s welfare reforms, they have powers to do something about that in Scotland. I want to make it absolutely clear that, in addition to the substantial support that the UK Government are providing, the Scottish Government have significant new powers available to them to tailor welfare provision for people in Scotland. Although pensions themselves are very definitely a reserved matter, the Scotland Act gives the Scottish Government the ability to use a wide range of new welfare provisions.

I was asked specifically whether I have been engaged with by Scottish Ministers who seek to provide specific top-up support for mixed-age couples. I have not been made aware of any such information being provided to me. Frankly, it is not for the UK Government to do that. If the Scottish Government wish to do that, the ball is in their court, given their powers under the Scotland Act. Clearly, that is a matter for the hon. Member for Glasgow South West to take up with the Scottish Government at Holyrood.

Let me return to the change itself, which ensures that the younger partner has the same work incentives as others of the same age. Those claiming universal credit have access to tailored support from work coaches to help them find work, and universal credit is designed to ensure that work always pays, which is not the case for pension credit.

Let me try to address the specific point raised by the hon. Member for High Peak (Ruth George). First, I endeavoured to address her emails of 10 and 11 April, which arrived shortly before Easter and were looked at by the Department over Easter. I have written her a letter. We exchanged comments before the debate, and I accept that she has not received that letter. I signed it off late yesterday afternoon, on my first day back in the Department; to be fair to the Department, there is no criticism of it whatever. I also wrote a letter to the hon. Member for Glasgow South West, but we managed to get that to him in time.

I am conscious that the hon. Lady raised a specific fault. I am happy to put it on the record that there was an acceptance that that was a fault, and that, as of 18 April, it has been fixed. The reality of the situation is that the calculator provided the wrong outcome in one particular instance—for couples where one member is in receipt of carer’s allowance and the other retains an underlying entitlement to carer’s allowance. I will leave her to look at the specifics of the letter when she receives it later today. I am grateful to her and the Derbyshire team for bringing the issue to our attention. It has been rectified, and I hope the position on that matter has been addressed.

The hon. Lady raised a separate issue about pension credit generally. It is entirely the case that we are attempting to encourage people to be in a position to take up pension credit in a particular way, and there most definitely is a desire for that to happen. All 115,000 existing mixed-age couples involved were written to subsequent to the decision being made in January. Although I do not have a regional breakdown of that figure, 8,000 people will potentially be affected in Scotland. I do not have localised figures for the hon. Lady’s area.

I want to stress that the change does not in any way affect entitlement to state pension or the level of state pension. Mixed-age couples who are already receiving pension credit or pension-age housing benefit on 14 May will not be affected for as long as they remain entitled to either of those benefits. As I said, we have written directly to those couples to inform them of the change. The change therefore will apply mainly to working-age couples currently claiming means-tested benefit, or to mixed-age couples who apply for benefit only after the date of the change.

Devolution of Welfare

Ross Thomson Excerpts

Tuesday 9th April 2019 Westminster Hall

[Stephen Kerr (Stirling) (Con)]

It is a pleasure to serve under your chairmanship, Mr Betts, and to follow the hon. Member for East Lothian (Martin Whitfield), who made his usual thoughtful speech. I thank my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont) for securing this Westminster Hall debate.

I remember the conversation back in September 2014. The SNP had produced its blueprint for an independent Scotland, which it claimed was a White Paper, but, as it has transpired, was a work of pure fiction. Events have proven that beyond doubt. On page 339 of the document there was a timeline for independence, and it put independence day in March 2016. That is a total of 560 days from the date of the referendum to the date of independence: 560 days to set up an entirely new country from scratch. The timeframe would include all the negotiations on how Scotland would withdraw from and have a future relationship with the rest of the United Kingdom. On reflection, how extraordinary those dates and numbers now seem, and how ridiculous, particularly in the light of what has transpired in relation to Brexit.

Today’s debate is about the establishment of the devolved Scottish social security system. The Scotland Act devolved the powers and they passed into law on 23 March 2016. The Act delivered on the promise made to the Scottish people about devolving more power to our Parliament. It fulfilled the commitments of the Smith commission, to which all the parties in Scotland contributed and agreed. The noble Lord Smith of Kelvin has confirmed that all the commitments made in the commission’s report have been delivered, so the powers in relation to social security should be transferred to the Scottish Government on 1 April 2020, but the SNP will not touch them. It will cost more than £308 million to set up Social Security Scotland. The SNP claimed, just five years ago, that it would cost £200 million to set up the new Scotland that it falsely promised the people of Scotland. In February, the Cabinet Secretary for Social Security announced that the Scottish Government would not be in a position to introduce and own the devolved powers until at least 2024.

[Ross Thomson (Aberdeen South) (Con)]

My hon. Friend is right that the Scottish Government have not touched the powers. The nub of the issue is this: their only desire is to have the constitutional change of independence, which means using any mechanism at their disposal to attack the UK Government, bash Westminster, and use the politics of grievance rather than come up with solutions to help people.

[Stephen Kerr]

My hon. Friend is correct; there is no issue that it is beyond the SNP’s powers to politicise and use for its own nationalist agenda. Clearly, these things are more complex than they seem, and I accept that. I do not really want the SNP taking these powers and using them if it cannot handle them, because we are talking about the lives of the most vulnerable people in Scotland, who deserve to be protected from any possible incompetence on the part of the SNP. The SNP’s track record on IT systems alone is a horror story, and the farm payments fiasco is a warning.

State Pension: Women born in the 1950s

Ross Thomson Excerpts

Thursday 22nd November 2018 Westminster Hall

[Alex Burghart]

The focus of the debate is compensation for the women involved. It is a fact that the Scottish Government could do more than they are doing.

[Ross Thomson (Aberdeen South) (Con)]

I want this issue to be addressed at UK level—that is absolutely right—but devolution across the UK means that different choices can be taken by those who are in power. It is not just section 28 that gives the Scottish Government the powers to act. Section 26 allows them to make short-term payments to people who need them to

“avoid a risk to the well-being of an individual.”

I genuinely believe that the Scottish Government should act where they can, and they should not play politics with this issue.

[Alex Burghart]

I am sure we all agree that that was a very interesting intervention. Once again, the SNP wants all the power and none of the responsibility. The Labour party has made multiple suggestions about how it would address the situation, and many Opposition Members seek the full compensation package of £70 billion. They proposed in their manifesto to keep the state pension age at 66, which reversed the Labour decision of 2007. It would cost at least £250 billion more than the Government’s preferred timetable, and that is not covered by the party’s 2017 manifesto.

In addition, I understand that there are particular legal difficulties in reintroducing a different retirement age for men and women. Unquestionably, any amendment to the current legislation that introduced a new inequality would be challenged. This is an unsatisfactory situation. I admire the very good campaign that the WASPI campaigners have put together. Having met them, I know that they are principled people who wish to see policy change for entirely understandable reasons. However, I see the cost of change as absolutely prohibitive, and I see no solution from either Opposition party.

--- Later in debate ---

[Jim Shannon]

The hon. Gentleman is absolutely right. They thought they had planned for their pension age, but suddenly found that it was grasped away from them at the last moment. The impact on women throughout Northern Ireland is incredible. I have said this before, and I will keep on saying it: we need to do the right thing. The hon. Member for North Ayrshire and Arran said that we must do the right thing. I am here to do the right thing and make sure it happens.

This equalisation was initially brought about in 1995, when an EU directive prompted the Government to equalise retirement age for men and women—then 65 and 60 respectively. The Government chose to level it at 65, and it was decided to increase women’s SPA in stages between 2010 and 2020. Women born in 1950-51 would retire at 61, those born in 1952-53 would retire at 62 and so on until 65 was reached for all post-1955 women in 2020.

I am unsure how we got to the stage at which we are asking women to work into their 70s and beyond. People are working longer, but they will not live longer if we make them work longer. I believe that enough is enough. I am not alone in that view. I read an article—the hon. Member for North Ayrshire and Arran referred to it—that said:

“A United Nations independent expert has affirmed the stance taken by campaign groups including the Women Against State Pension Inequality…that certain women have been affected disproportionately by recent pension age changes.”

We cannot ignore the United Nations—we often refer to it.

“Philip Alston’s report Statement on Visit to the United Kingdom on extreme poverty and human rights, out on Friday (16 November), showed the number of pensioners living in poverty in the UK had risen by 300,000 to 16 per cent in the four years to 2016/17. This was despite measures such as the triple lock guarantee. But he found a group of women born in the 1950s had been particularly impacted a ‘poorly phased in’ change in the state pension age.

Mr Alston said: ‘As was made clear to me in a number of submissions and through powerful personal testimony, a group of women born in the 1950s have been particularly impacted by an abrupt and poorly phased in change in the state pension age from 60 to 66.

The impact of the changes to pensionable age is such as to severely penalise those who happen to be on the cusp of retirement and who had well-founded expectations of entering the next phase of their lives”—

as the hon. Member for Ipswich (Sandy Martin) said—

“rather than being plunged back into a workforce for which many of them were ill-prepared and to which they could not reasonably have been expected to adjust with no notice.’”

[Ross Thomson]

I want to share the experience of Ann from my constituency, whom I met on Friday. Three months prior to her 60th birthday, she had to leave work due to a health issue. She lived alone and had no income, and therefore had nothing to resort to bar her life savings. She is now living on a very small work pension, but had to add to that significantly from her savings. Over the years, she had done exactly what the hon. Gentleman spoke about. She had planned how to spend her savings, but she now has to use them for ordinary living expenses instead. There is an inherent unfairness in that.

[Jim Shannon]

The hon. Gentleman is absolutely right. He has told us the experience of his constituent, as I have done—many of mine tell me the same thing. They are not physically able to continue to work and have planned their future in what they thought was the right way, only to find that it has been—if I may use this word—stolen from them by this system. I could not do anything other than come to the debate in Westminster Hall to speak on behalf of the 5,800 constituents of mine who have indicated their distress and need for the Government to address the issue.

I understand that others want to speak and I want to try and keep to the timescale that you indicated, Mr Bone, so I will conclude. It is clear that others can see what the Government cannot. We must address the issue, and address it now. I hope the Minister will outline how he intends to address it rather than—with respect—wash his hands of it. It is time for action, not for words. Enough is enough.

Independent Living Fund

Ross Thomson Excerpts

Tuesday 9th January 2018 Westminster Hall

[Sarah Newton]

As I said, we are spending more than £7 billion more than in 2010, and the changes we have made to the personal independence payment mean that more people are now eligible for support. People with conditions such as multiple sclerosis and those with variable conditions are now eligible, as are people with mental health problems. We have widened the range of people with health conditions and disabilities who can apply for the personal independence payment.

[Ross Thomson (Aberdeen South) (Con)]

Does the Minister agree that there is a stark difference between perception and reality, and that while some may use that perception for partisan reasons and to play politics, the reality on the ground is that the Government are supporting those who are disabled to live fulfilled and full lives, and helping them to gain choice and control over how their support is delivered?

[Sarah Newton]

I am grateful to my hon. Friend for pointing that out. The numbers clearly show a significant contribution to helping people live independently, but these things are not the only things we are doing. He is completely right to talk about enabling people to play their full part in society, including in work, and I am delighted that so many more disabled people are in work. The vast majority of disabled people want to play their full part in society and to be able to work, and we have set up very ambitious plans to ensure that more people have more support.

Let us look at some of that support. Not only do we have ESA and the personal independence payment, but enhanced and tailor-made support is available through the work coaches in Jobcentre Plus—that is more than £330 million. The marvellous Access to Work programme enables people to receive support of up to and over £40,000 a year so that they can go to work and stay in work. The subject of the newly launched Work and Health programme brings me on to the point raised by the hon. Member for North Ayrshire and Arran about working collaboratively with Scotland. I am delighted that in Scotland people are working so constructively on some of that innovation, and testing new ways that we can support people to get into and stay in work. We have a constructive working relationship with Scotland, and Scotland is benefiting from some of the considerable investment we are putting into that programme. Just this year we have two funds, one of nearly £80 million and another of about £35 million. I will, of course, always look to work with colleagues in any part of the country where we can work collaboratively and constructively to learn from each other, so that we can enable more people to play as full a part in society as they possibly can.

We have also talked about other parts of the funding. Adult social care is incredibly important for disabled people, and we have committed to publishing a Green Paper by the summer, setting out how we will reform the system and have a longer-term settlement on social care. An inter-ministerial group has been set up to do that, because it is an essential reform that we need to achieve. It is also important to have a cross-party, whole nation approach to doing that, because various Governments have tried to get it right, but we have yet to come up with a settled view we can all support. I think that is long overdue, and I will work hard to support that inter-ministerial group in coming up with a set of proposals that will aim to command the support of the whole House. Any hon. Members here who would like to join would be welcome.

State Pension Age: Women

Ross Thomson Excerpts

Wednesday 29th November 2017 Commons Chamber

[Ian Blackford]

There is a very simple answer. I have respect for the hon. Gentleman, as he knows, and he should go back and read the 2016 Act, because it is crystal clear that we cannot introduce new benefits, nor can we introduce payments based on age. The fundamental point that needs to be made is that we are talking about the state pension in the United Kingdom, which is a reserved matter. It ill behoves any Conservative Member to try to create the impression that the people of Scotland and elsewhere have powers that we do not have. If Conservative Members want the Scottish Government to have the powers to fix this, then give us the powers. Give us control over pensions and we will fix it tomorrow.

[Ross Thomson (Aberdeen South) (Con)]

The right hon. Gentleman has asked us to tell him what powers the Scottish Government have to help in this situation. Well, under section 28 of the Scotland Act they can create a new benefit, and they can make that argument on the basis of, but not because of, old age—the Department for Work and Pensions has accepted that argument. Further, section 26 allows the Scottish Government to make short-term payments to people who need them,

“to avoid a risk to the well-being of an individual.”

The Scottish Government have the powers. They choose not to use them. [Interruption.]

[Ian Blackford]

The hon. Gentleman should—[Interruption.]

--- Later in debate ---

[Guy Opperman]

I fully understand, and I will move on, but I will make one single point in reply to the right hon. Member for Ross, Skye and Lochaber. I specifically read the letter of 22 June from Jeane Freeman, quoting what she said. When the right hon. Gentleman criticises me, he should be aware and conscious that he is criticising someone from his own party.

[Ross Thomson]

Regarding the point of order, does the Minister agree that the argument can be made that people under the retirement age of 66 are not in old age? The Scottish Government have already been in correspondence with the Department for Work and Pensions, and the DWP has accepted that very argument. The Scottish Government have the powers, they just do not use them.

[Guy Opperman]

The reality of the situation, given the motion facing us today, is that one has to ask what the Scottish Government are doing. My hon. Friend is entirely right.

The issue dates back to 1995, when the Government legislated after two years of debate and consultation to equalise the state pension age in order to eliminate gender inequalities in state pensions. There had been welcome increases in life expectancy, and there was an anticipated increase in the number of pensioners in the years to come.

--- Later in debate ---

[Ross Thomson (Aberdeen South) (Con)]

Equalising the state pension age between men and women is a principle about which the UK Government, the WASPI campaign and I am sure all of us in the Chamber agree. However, there is rightly concern about the unfair and disproportionate impact of the 2011 reforms on women born in the 1950s, and this concern is shared by Members on both sides of the House.

Some 5,200 women in my constituency are affected. Since the general election in June, as Members might imagine, I have been meeting local women who are affected by the changes and who, in some cases, have had to change their retirement plans radically because they were not made properly aware of the changes made by 1995 Act.

One constituent I recently met was employed by NHS Grampian for 39 years. She worked hard and full time for her whole working life, with no maternity leave and no long-term sick leave, until in 2014, during her last few years of work, she had to take a couple of months off for health reasons—first due to cancer of the womb, and subsequently cancer of the bone marrow. She requested retirement, and she was 60 on 1 December 2016, but because of the changes to state pension policy, she is not receiving a state pension, even though she paid in, in full, during her 39 years of working. This has caused her great strain and worry, and she is naturally concerned about her finances.

Last Friday, I met a 61-year-old constituent who expected to receive her state pension in 2016. She also contributed through national insurance for more than 40 years. When she received her first letter about the age changes from the DWP back in 2013, she was in full employment and good health, but her circumstances changed in 2015, when she was made redundant and diagnosed with breast cancer. I am thankful that my constituent has made a recovery following successful treatment to date, but she finds herself with no income, and the downturn in oil and gas in Aberdeen has made it very difficult for her to get even a job interview. At the moment, therefore, she has to rely on the very pot of savings that she worked hard to build up.

I wanted to highlight my constituents’ cases as a reminder that the state pension system is founded on a contributory principle. It is not a welfare benefit. Those cases show that this group of women have done the right thing. They worked hard all their lives and paid their dues in good faith, but now they face being completely short-changed. That is not fair.

We have heard a lot of bluster from SNP Members, but let us be clear that the Scottish Government have the powers to make a change. Their record clearly shows not only their incompetence, but their refusal to use those powers. Let us be absolutely clear: my constituents know that I will make their voices heard loud and clear in this place.

--- Later in debate ---

[Mhairi Black]

Oh, the hon. Gentleman is a pleasure to talk to, but I will move on.

The motion was deliberately written to make sure that it was not party political—[Laughter.] I am loving the laughter from Conservatives Members. If they want to tell me what is funny, I would suggest an intervention.

[Ross Thomson]

I thank the hon. Lady very much for taking an intervention. She says the motion was written so that it was not party political. I am afraid that the diatribe we have heard from SNP Members has been nothing but narrow, party political point scoring that has achieved nothing for WASPI and nothing for those affected, and is only in the interests of the SNP. The women affected deserve better.

[Mhairi Black]

The motion says:

“That this House calls on the Government to improve transitional arrangements for women born on or after 6 April 1951 who have been adversely affected by the acceleration of the increase to the state pension age.”

What part of that can the hon. Gentleman not get on board with?

UN Convention on the Rights of Persons with Disabilities

Ross Thomson Excerpts

Thursday 12th October 2017 Commons Chamber

[Deidre Brock (Edinburgh North and Leith) (SNP)]

I wish to start by reading out a quote from journalist Frances Ryan:

“When the ‘most vulnerable citizens’ line is used by well-meaning voices, there’s a secret second sentence that’s rarely uttered: disabled people, truth be told, do not need to be vulnerable. Contrary to the myth sold by years of austerity, to be afraid, desperate or isolated is not a normal state of affairs for people with disabilities. Vulnerability comes when politicians choose to pull the support disabled people need in order to live dignified, fulfilling, independent lives—knowing full well the misery it will cause.”

The clarity of her writing is matched by the clarity of her thought.

We have failed people who have disabilities. Our attitude seems to be that disabled people only need to get up, and be washed, dressed and fed, and then nothing else matters—nothing about quality of life, social interaction, cultural activities or anything else that makes us human; just the basics of survival. Even there we are failing them. Leonard Cheshire last year produced research showing that half the disabled adults in the UK who need social care are living without any help at all, which is leaving them isolated, trapped at home, and unable to be part of society. That is our fault.

I will avoid reciting a list of cases of utter desperation involving people who come to my surgery on a regular basis, and I am sure every Member here can reel off, with little effort, a dozen cases that illustrate the damage to individuals caused by the Government’s policies, how austerity has stripped away dignity, and how an uncaring lead from Whitehall has left uncaring followers in its wake. I have no doubt—

[Ross Thomson (Aberdeen South) (Con)]

Will the hon. Lady give way?

[Deidre Brock]

In a moment.

I have no doubt that the Minister could add to the lament were she so minded. This river of human misery should shame the Government and every legislator who stands in this Chamber, but it does not. Instead, the atmosphere of persecution creates fear and distrust, leaving people isolated and alone, which is a form of psychological damage that may be even more cruel than the physical damage.

Jobcentre Plus: Closures

Ross Thomson Excerpts

Thursday 6th July 2017 Commons Chamber

[Mr Speaker]

We are always grateful to you, Mr Docherty-Hughes, for your observations from a sedentary position. No doubt we will be hearing more of them in due course.

[Ross Thomson (Aberdeen South) (Con)]

In Aberdeen, Greyfriars House will close and staff will move to the front-facing jobcentre at Ebury House. Can the Secretary of State reassure my constituents that the level and quality of service and support they receive will not diminish following the decision, and what improvements can they expect to see in the level of service?