Public Service Pensions Bill

Simon Hughes Excerpts

Wednesday 24th April 2013 Commons Chamber

I am glad that we have extracted some concessions from Ministers and that the further review is on the table. I also commend David Kirby and MOD firefighters and police representatives for their unrelenting hard work in getting the Government to this position. The story is not over. We need to keep a watchful eye on things, particularly when the review is published. I want the Minister’s reassurance on each of the three points that I have raised, because they matter and it would be preferable if the House reached consensus.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

I join in the thanks to the Minister and our noble friend Lord Newby for their work during all the stages of this end-of-term attempt at reconciliation, which has at last been achieved. I also thank colleagues on the Labour Benches and those on our Back Benches and on the Cross Benches in the Lords who made sure that the remaining issue in this huge Bill could be resolved amicably. The Lords’ proposal and the Minister’s amendment mean that this is not a closed book and I hope that this hugely important Bill to reform public sector pensions will be put on to the statute book this week. There is now a fixed time frame in which to address further the anomaly that was not spotted by the previous Government or by Lord Hutton, but that has since been brought to our attention.

I also join in the thanks to Mr Kirby and his colleagues for their efforts in making sure that we understood their concerns. Their request is not unfair. They are asking to be put in a position similar to those who do similar jobs—they are not identical jobs—in the civilian services. My hon. Friend the Member for Colchester (Sir Bob Russell) made the obvious point about the logic of that position when he said earlier this week that the argument in favour of Ministry of Defence firefighters and police and rescue people retiring at 60, as is the case in the civilian services, is, bluntly, that they do dangerous jobs that require them to be particularly fit. The argument that they can be expected to do their job properly and protect themselves and others after they reach 60 has not been made. We are all in favour of more flexible ages of retirement. I buy the argument that the retirement age has to go up, both in general and in relation to public servants, and I support the Government’s proposals, but we have to accept that the time when people are not fit enough to do certain jobs will come earlier than others.

I have a few questions. The Bill’s provisions will commence when it is enacted, but that does not apply to those in clause 9—the pension age provisions—which will be subject to an announcement by the Chancellor or a Treasury Minister at a later date. That is a perfectly normal procedure. Will the Minister explain in his response to the hon. Member for Nottingham East (Chris Leslie) when he expects that announcement to be made? That will be of wider interest, because it is a hugely important issue.

Secondly, I ask the Minister to accept that some of the facts and figures that he has used, which I think have also been used by the Government in the other place, are not accepted as facts and may be misinformed. I am not accusing the Minister of doing that wilfully. For example, he has made the fairly strong argument that an 8% increase in contributions would be required from these firefighers, rescue workers and police to fund a pension age of 60. The workers say that it would be a very small figure of about 2%.

That ties in to my third question. It is important that we take into account what this change would cost the Treasury and the taxpayer. The Government have in both Houses given the estimate of £10 million a year. The people who have come to see me have argued that the sum will be much smaller and may be in the order of £2 million a year. I do not pretend to be an expert on these issues, but I am sure that the Minister will say when he winds up that the Government will not go into this process with a closed view. It is a negotiation, so the arguments will be heard and I hope that the true facts will be accepted.

It has been accepted already in the conversations with the Ministry of Defence that the pension age for fire and rescue workers and police in the services can be held at 65 and not rise in line with the provisions of the Bill, which take account of increasing life expectancy. I want to reinforce the point that the people who will be affected argue not that their pension age should held at 65, but that it should be 60, in line with similar civilian workers. If that age is later renegotiated across the piece for firefighters, rescue workers and police, that is fine. I think the Minister understands that, but I wanted to put it on the record that that is where the workers want to start from. That is a reasonable expectation.

I am grateful to the Minister and am pleased that we have been able to carry out this bicameral activity again in a spirit of determined resolution, which I hope will mean that this important Bill becomes an Act on the statute book this week.

[Sir Bob Russell]

I am delighted that the trust and confidence that I placed in the Minister on the public record on Monday has been justified. I thank him, those around him and those in the other place for bringing matters to a resolution that, although a compromise, is one that I hope we can all live with. In that spirit of concord, I thank Opposition Front Benchers for their contribution. We should praise the representatives of the Ministry of Defence police and fire and rescue service, because without their sterling endeavours, we might have ended up with a right mess.

I remain critical of the Ministry of Defence, because if it had been involved at an earlier stage, we would not have got to the stage where a resolution was needed. I am still concerned that we are looking at this matter the wrong way around. It is the fitness of the people to do these very dangerous jobs that should be paramount, not the retirement age or the pension. They defend and provide security and fire services for nuclear installations. I urge the Ministry of Defence, notwithstanding the resolution of this particular matter, to look calmly at the security and fire protection that its police and fire and rescue services provide in the national interest to ensure that they are fit for purpose. Nobody doubts the courage and commitment of the individuals concerned. However, as I said on Monday, do we really want our nuclear installations to be looked after by people of my age?