Oral Answers to Questions

Debate between Shailesh Vara and David Mowat

Monday 11th July 2016 Commons Chamber

[Mr Vara]

As I said, the result of the referendum came only some few days ago, but I can assure the hon. Gentleman that detailed conversations are going on in the Cabinet unit. Let me provide him with the further assurance that Britain still remains a member of the EU. I want to reassure British people living in EU countries and those EU citizens who are living in the UK that there will be no immediate changes in their circumstances.

[David Mowat (Warrington South) (Con)]

3. What progress his Department has made on auto-enrolling people into workplace pensions.

[The Parliamentary Under-Secretary of State for Work and Pensions (Mr Shailesh Vara)]

Automatic enrolment has been a great success with nearly 6.3 million people automatically enrolled into a workplace pension by almost 143,000 employers. We will continue with our programme to get many more people enrolled.

[David Mowat]

Auto-enrolment has met or exceeded all initial targets. However, to maximise pensions in the long term, we need to bear down on charges. Two years ago, the Government put in place a cap of 0.75%, which is half that permitted by the Opposition when they had one for stakeholders. The Government said they would review the level of the cap, with a view to it being lower in future. Will the Minister update us on the status of that review?

[Mr Vara]

I am grateful to my hon. Friend for raising this very important issue. I can give him an assurance that, in 2017, we will review whether the level of the charge cap should change, and whether to include some or all transaction costs in the cap.

Oral Answers to Questions

Debate between Shailesh Vara and David Mowat

Tuesday 14th June 2016 Commons Chamber

[Mr Vara]

The Government’s proposed reforms will ensure that the current cost of £2 billion annually for whiplash claims should be reduced to £1 billion for the insurance industry. They will also ensure that the average person’s insurance premium should go down by up to £50.

[David Mowat (Warrington South) (Con)]

In the UK, 80% of road traffic accidents generate a whiplash claim; in France, 3% of road traffic accidents generate a whiplash claim. In the UK, whiplash claims are increasing as accidents decrease; in France, it is the other way round. Insurance premiums in the UK are 50% higher, meaning that many young people cannot afford insurance. Will the Government act to get this sorted out?

[Mr Vara]

I am grateful to my hon. Friend for making that point. He is absolutely right to say that it is important, to benefit all our constituents, that we deal with this. The way to do so is through our proposed reforms, on which there will be a consultation in the not-too-distant future. That will ensure that premiums go down.

Oral Answers to Questions

Debate between Shailesh Vara and David Mowat

Tuesday 26th April 2016 Commons Chamber

[Mr Vara]

I simply say to the hon. Lady that there are a series of exemptions for vulnerable people. We need to recognise that the court system has to be paid for, and it is perfectly reasonable for the British taxpayer to expect those who use our court system to make a contribution towards its running.

[David Mowat (Warrington South) (Con)]

12. What progress he has made on reducing the cost to the public purse of legal aid.

[The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)]

Before the process of legal aid reform began in 2010, our legal aid system cost the taxpayer over £2 billion each year. During the period 2014-15, the legal aid spend was £1.64 billion.

[David Mowat (Warrington South) (Con)]

Ours is still the only country in the world that pays foreign nationals to sue our own soldiers, and last week the Supreme Court told us that the Government did not have the power to curtail legal aid for that purpose. The only solution, apparently, is primary legislation. Will the Minister tell us how he intends to make progress on this matter?

[Mr Vara]

I refer my hon. Friend to some of the comments that I made earlier. However, he has made a good point about the residence test. He will appreciate that, while I have enormous sympathy with his view—as do many other people, including, in particular, millions in the country outside—we for our part await the written judgment of the Court, and will reflect on it.