I thank my hon. Friend for his point. He talks about the legitimate paying of taxes, and I will touch on that later in my speech. The people who entered into such schemes, whether they were in oil and gas, social care or healthcare, did so legitimately and because they were advised to do so. Some did so because their employers asked them to.
My hon. Friend is being generous with his time and is making some excellent points. Something that struck me from the correspondence that I have received from constituents is that they were often advised by accountants to enter into arrangements that would allow them to take home a large proportion of their income, and they were told that that was not illegal, that it was totally above board, and that any tax liabilities would lie with the employer, not the employee. Part of the problem is that we are dealing with people who were acting in good faith and yet feel that they are now being penalised.
I cannot add much more to that, because my hon. Friend is absolutely right.
(6 years ago)
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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.
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.
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.
(7 years ago)
Commons Chamber