Amendment of the Law

John Bercow Excerpts

Monday 23rd March 2015 Commons Chamber

[Stephen Twigg]

That is not what the Leader of the Opposition has said. I worked on that policy. We want to ensure that apprenticeships are high quality, learning from the countries I mentioned that have a great track record in this area. Our policy is not the policy to which the hon. Gentleman referred.

I appear not to have received the extra minute for the intervention that I think I should have had, Mr Speaker. Should I have that extra minute?

[Mr Speaker]

Yes. I would not want the hon. Gentleman to be denied, and I think that in the interim the appropriate adjustment has been made. I am glad that he is alert to his rights.

[Stephen Twigg]

I am immensely grateful to you, Mr Speaker.

To get this right, we need to give priority to spending on education. That is why the commitment that the Labour party has made to protect the entire budget of the Department for Education, including early years and 16 to 19, is so important. That contrasts significantly with the Conservative policy, which does not protect early years and 16 to 19. Those are precisely the areas that have faced the biggest cuts over the past five years, and they would face even bigger cuts were the Conservatives to win again. Investment in education and fairness in the jobs market should be features of a Budget, but they were not features of this one.

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[Chris Leslie]

I commend to Conservative Members, who should have a good read of it, this very authoritative document with very carefully crafted figures:

“Source: Chief Secretary to the Treasury”.

It was a classic. My hon. Friend knows that the real Budget was in the Red Book. Shall I pass it to him? Perhaps not.

The Chancellor told us in the Budget that everything was sunshine and roses, but in coalition Britain, 900,000 people use food banks, 600,000 people are affected by the bedroom tax, the typical working person is £1,600 a year worse off and the NHS is in crisis. The Chancellor tried to find the best statistic, however obscure, to muddy the waters and deny what most working people know, which is that their wages have eroded year after year as we have experienced the longest period of prices exceeding income since the 1920s. He did that by relying on a forecast for this year, rather than real data, and by adding university and charitable income, as well as what are known as imputed rents from homes even if they are not actually rented. That was basically designed to say, “If you stand on one leg and squint a little, there you are—you’re back to 2010 levels of affluence and incomes.” Even on that statistical measure, from election date to election date—rather than the start of the calendar year, as the Chancellor tried to use—people are still worse off than they were. Of course, all that does nothing to change the burden of higher taxes and lower tax credits that have seen families worse off by more than £1,000 a year. As ever, the Chancellor may give a little with one hand, but he takes away much more with the other.

By the way, now that the Chancellor has taken the time to enter the Chamber, it would be interesting to know whether he has spotted the Prime Minister’s announcement this afternoon. I understand that the Prime Minister has indicated that he will not stand for election again after this general election. He has said tonight that he is likely to be gone in a couple of years’ time, so what will the country be voting for at the next election? I can see the poster now—“Vote Cameron, get Osborne”—and all the right-wing agenda that would go with it. A Prime Minister who did not win his first election, and had not won a second election, would be saying that he would not win a third.

Of course there were a few give-away measures in the Budget, and we welcome anything that helps those on lower and middle incomes. Why, however, does the Chancellor still stand by the biggest give-away of them all? His tax cut for the wealthiest 1%—those earning £150,000—means that someone earning £1 million each year gets an annual tax cut of £42,000. That is simply unfair and unacceptable, and that is why we will vote against those income tax plans this evening. We will vote against the Government’s Budget plans for public services and public investment, because although we must balance the books as soon as possible in the next Parliament, going so far beyond that—with cuts over the next three years that are twice as deep as those of the past three years—means extreme cuts to services on a scale not experienced for generations. [Interruption.]

[Mr Speaker]

Order. There is a most discourteous exchange taking place between those on the two Front Benches while the hon. Gentleman the shadow Chief Secretary is addressing the House. Modesty forbids me from naming the errant Members, but I feel sure that they will correct their behaviour at once.

[Chris Leslie]

Perhaps we can ask Hansard for a transcript later. I would certainly be interested to read that.

When we look at the Chancellor’s plans—and those of the Secretary of State for Work and Pensions—we see that he is thinking about cutting for the next three years at twice the level we have seen over the past three years. The Chancellor realised how toxic his plans were shortly after the autumn statement, when he published the trajectory that showed he would take Britain back to 1930s levels of public investment as a share of national income. In the days running up to the Budget, we were therefore told that he had had a change of heart on public spending—coincidentally, it was just weeks before an election campaign. Sure enough, the figures for 2019-20 were shuffled around in the Budget. However, in the end, he just could not fight his gut instinct, so all he did was to front-load the cuts on to the first three years of the next Parliament and hope that nobody would notice.

Unfortunately for the Chancellor, the Office for Budget Responsibility did notice. It said that his plans will mean

“a much sharper squeeze on real spending in 2016-17 and 2017-18 than anything seen over the past five years”

and

“a sharp acceleration in the pace of implied real cuts to day-to-day spending on public services”.

That will create what the OBR calls

“a rollercoaster profile for implied public services spending through the next Parliament”.

We remain with a path of public spending that is based on ideology and political game playing, rather than a Budget for our public services based on what the economy requires and what our country needs.

I ask my hon. Friends to imagine the impact these extreme plans will have, especially on the public services that the Government say are unprotected—the police, bus and rail services, the Army and our defences—and on all those who depend on tax credits to make ends meet. I encourage my hon. Friends to take a moment to look at exactly what those extreme cuts will mean. They are not just statistics in the Red Book; they will have real consequences for real people’s lives.

To take social care as an example, in the past five years, the number of vulnerable people who receive social care support has fallen by 500,000 and the number of home-delivered meals—meals on wheels—has fallen by 59%. Of course, there has also been a rise in the peremptory 15-minute visits. That is just what has happened so far, before the Government tip social care over the precipice of the rollercoaster. Just imagine what the next three years could bring. Care cuts like this are health service cuts. As my hon. Friend the Member for Birmingham, Edgbaston (Ms Stuart) said, our health services will be placed in real jeopardy in that scenario. It says everything one needs to know about this Chancellor that the battle of Agincourt got twice as many references in the Budget speech as the NHS. When I look at the Government’s Budget, it is not so much “Henry V” that comes to mind as “The Comedy of Errors”.

This path of spending—extreme and unnecessary, going way beyond tackling the deficit—is why we will vote against the Budget resolutions tonight. This is a Budget that delivered little, but revealed much. It revealed the Conservatives’ ideological obsession with shrinking public services in preparation for a privatised society. There is no support for those struggling on low incomes and in insecure work, no credible action to tackle tax avoidance and close the tax gap, nothing to reverse their tax cut for millionaires and no help for the NHS. We have a Chancellor who is full of spin but is fooling no one, and a Chief Secretary who is enjoying his final days in office but not in power.

What we need is a Labour Government who will put the interests of the British people first; who will balance the books in a fair way; who will help small businesses with a cut in business rates, rather than simply helping the largest corporations; who will raise living standards by raising the minimum wage and expanding free child care; and who will govern for the many and not for the few, because Britain succeeds when working people succeed. That would be a better plan and a better Budget. That is why I urge my hon. Friends to reject the Budget of this failing Government.

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22:29

Division 181

Ayes: 337

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Conservative: 282
Liberal Democrat: 44
Democratic Unionist Party: 6
UK Independence Party: 2
Independent: 1
Alliance: 1

Noes: 240

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Labour: 228
Scottish National Party: 6
Plaid Cymru: 3
Green Party: 1
Independent: 1

[Mr Speaker]

With the leave of the House, I will put the remaining motions together.

6. Taxable Benefits (diesel cars)

Resolved,

That—

(1) In section 141(2) of the Income Tax (Earnings and Pensions) Act 2003 (diesel cars: the appropriate percentage), in Step 3, for “35%” substitute “37%”.

(2) The amendment made by paragraph (1) has effect for the tax year 2015-16.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

7. Taxable Benefits (vans)

Resolved,

That—

(1) The Income Tax (Earnings and Pensions) Act 2003 is amended as follows.

(2) In section 155 (cash equivalent of the benefit of a van), for subsections (1) and (2) substitute—

“(1) The cash equivalent of the benefit of a van for a tax year is calculated as follows.

(1A) If the restricted private use condition is met in relation to the van for the tax year, the cash equivalent is nil.

(1B) If that condition is not met in relation to the van for the tax year—

(a) if the van cannot in any circumstances emit CO2 by being driven and the tax year is any of the tax years 2015-16 to 2019-20, the cash equivalent is the appropriate percentage of £3,150, and

(b) in any other case, the cash equivalent is £3,150.

(1C) The appropriate percentage for the purposes of subsection (1B)(a) is—

(a) 20% for the tax year 2015-16,

(b) 40% for the tax year 2016-17,

(c) 60% for the tax year 2017-18,

(d) 80% for the tax year 2018-19, and

(e) 90% for the tax year 2019-20.”

(3) In section 156(1) (reduction for periods when van unavailable), for “155(1)” substitute “155”.

(4) In section 158(1) (reduction for payments for private use), for “155(1)” substitute “155”.

(5) In section 160(1)(c) (benefit of fuel treated as earnings), for “section 155(1)(b)” substitute “section 155(1B)(b)”.

(6) In section 170 (orders etc relating to Chapter 6 of Part 3), for subsection (1A) substitute—

“(1A) The Treasury may by order substitute a different amount for the amount for the time

being specified in—

(a) section 155(1A) (cash equivalent where van subject only to restricted private use by

employee),

(b) section 155(1B)(a) (cash equivalent for zero-emission van), and

(c) section 155(1B)(b) (cash equivalent in other cases).”

(7) Article 3 of the Van Benefit and Car and Van Fuel Benefit Order 2014 (S.I. 2014/2896) is revoked.

(8) The amendments made by this Resolution have effect for the tax year 2015-16 and subsequent tax years.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

10. Income Tax (PAYE)

Resolved,

That provision may be made as to the matters that may be provided for by regulations under section 684 of the Income Tax (Earnings and Pensions) Act 2003.

11. dISTRIBUTIONS

Resolved,

That provision may be made amending Chapter 3 of Part 4 of the Income Tax (Trading and Other Income) Act 2005.

12. Disguised investment management fees

Resolved,

That provision may be made about sums arising to individuals who perform investment management services.

13. Losses from miscellaneous transactions

Resolved,

That provision (including provision having retrospective effect) may be made amending Chapter 7 of Part 4 of the Income Tax Act 2007.

14. Remittance basis of taxation

That provision may be made increasing the remittance basis charge.

15. Loan relationships

Resolved,

That provision (including provision having retrospective effect) may be made amending Part 5 of the Corporation Tax Act 2009.

16. Intangible fixed assets

Resolved,

That provision (including provision having retrospective effect) may be made amending Part 8 of the Corporation Tax Act 2009.

17. Expenditure on research and development

Resolved,

That provision may be made about tax relief for expenditure on research and development.

18. Deductions for carried-forward losses

Resolved,

That provision (including provision having retrospective effect) may be made for and in connection with restricting the deductions that may be made by companies in respect of losses carried forward from earlier accounting periods when calculating their profits for the purposes of corporation tax.

19. Pensions

Resolved,

That provision may be made in connection with the taxation of pensions.

20. Pension Flexibility (beneficiaries’ annuities etc)

Resolved,

That—

(1) Part 4 of the Finance Act 2004 is amended as follows.

(2) Section 167(1) (the pension death benefit rules) is amended as follows.

(3) In pension death benefit rule 3A (payments that may, by way of exception, be made to a nominee) after “other than” insert “a nominees’ annuity in respect of a money purchase arrangement or”.

(4) In pension death benefit rule 3B (payments that may, by way of exception, be made to a successor) after “other than” insert “a successors’ annuity in respect of a money purchase arrangement or”.

(5) Part 2 of Schedule 28 (interpretation of the pension death benefit rules) is amended as follows.

(6) After paragraph 27A insert—

“Nominees’ annuity

27AA(1) For the purposes of this Part an annuity payable to a nominee is a nominees’ annuity if—

(a) either—

(i) it is purchased together with a lifetime annuity payable to the member and the

member becomes entitled to that lifetime annuity on or after 6 April 2015, or

(ii) it is purchased after the member’s death, the member dies on or after 3 December

2014 and the nominee becomes entitled to the annuity on or after 6 April 2015,

(b) it is payable by an insurance company, and

(c) it is payable until the nominee’s death or until the earliest of the nominee’s marrying, entering into a civil partnership or dying.

(2) For the purposes of sub-paragraph (1)(a) a nominees’ annuity is purchased together with a lifetime annuity if the nominees’ annuity is related to the lifetime annuity.”

(7) After paragraph 27F insert—

“Successors’ annuity

27FA (1) For the purposes of this Part an annuity payable to a successor is a successors’ annuity if—

(a) the successor becomes entitled to it on or after 6 April 2015,

(b) it is payable by an insurance company,

(c) it is payable until the successor’s death or until the earliest of the successor’s marrying, entering into a civil partnership or dying,

(d) it is purchased after the death of a dependant, nominee or successor of the member (“the beneficiary”),

(e) it is purchased using undrawn funds, and

(f) the beneficiary dies on or after 3 December 2014.

(2) For the purposes of sub-paragraph (1)(e), sums or assets held for the purposes of an arrangement after the beneficiary’s death are undrawn funds if—

(a) immediately before the beneficiary’s death, they were held for the purposes of the arrangement and, as the case may be, represented (alone or with other sums or assets) the beneficiary’s—

(i) dependant’s flexi-access drawdown fund,

(ii) dependant’s drawdown pension fund,

(iii) nominee’s flexi-access drawdown fund, or

(iv) successor’s flexi-access drawdown fund,

in respect of the arrangement, or

(b) they arise, or (directly or indirectly) derive, from undrawn funds under paragraph (a) or from sums or assets which so arise or derive.”

(8) In section 216(1) (benefit crystallisation events and amounts crystallised) the table is amended as follows.

(9) In the second column of the entry relating to benefit crystallisation event 4, after “any related dependants’ annuity” insert “and any related nominees’ annuity”.

(10) After the entry relating to benefit crystallisation event 5C insert—

[Mr Speaker]

With the leave of the House I will put the four procedure motions together. The House will be intimately conscious that I am referring to the motions on future taxation, television tax relief, wholesalers of alcohol and country-by-country reporting referred to on page 21 of the Budget resolutions.

Procedure (future taxation)

Resolved,

That, notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills, any Finance Bill of the present Session may contain the following provisions taking effect in a future year—

(a) provision about the basic rate limit for the purposes of income tax,

(b) provision about personal allowances for the purposes of income tax,

(c) provision for corporation tax to be charged for the financial year 2016,

(d) provision about the tax treatment of certain employment-related expenses and benefits,

(e) provision amending the description of vehicles which are exempt vehicles for the purposes of the Vehicle Excise and Registration Act 1994,

(f) provision about the rates of climate change levy,

(g) provision about the rates of landfill tax, and

(h) provision about the taxable value of single-dwelling interests for the purposes of the annual tax on enveloped dwellings.

Procedure (television tax relief)

Resolved,

That, notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills, any Finance Bill of the present Session may contain provision for tax credits to be paid to television production companies in respect of expenditure or losses on television production activities in connection with further descriptions of programmes.

procedure (wholesalers of alcohol)

Resolved,

That, notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills, any Finance Bill of the present Session may make provision for the approval and registration of wholesalers of alcohol.

procedure (country-by-country reporting)

Resolved,

That, notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills, any Finance Bill of the present Session may contain provision enabling the implementation of the guidance on country-by-country reporting contained in the OECD’s Guidance on Transfer Pricing Documentation and Country-by-Country Reporting, published in 2014 (or any other document replacing that Guidance).

Oral Answers to Questions

John Bercow Excerpts

Monday 9th March 2015 Commons Chamber

[Richard Harrington (Watford) (Con)]

Question 5, Mr Speaker.

[Mr Speaker]

No, no. I was calling the hon. Member for North West Leicestershire (Andrew Bridgen) to ask about Question 4. Several hon. Members were on their feet in respect of this question.

[Andrew Bridgen (North West Leicestershire) (Con)]

Does the Minister agree that it is important for us to acknowledge the role that sanctions play as the ultimate backstop in support of our welfare system, particularly as 70% of claimants say that they are more likely to abide by the rules when they know that their benefits are at risk if they do not?

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[Esther McVey]

We know that over 99.4% people on ESA and with a mental health condition are not sanctioned, so only 0.6% are. Again, we look to see how we work with people; and for very vulnerable people there is clear guidance on what counts as good cause, so they would know how and why they would not be sanctioned. We always know we need to do more. We have various pilots going on that seek better to understand people with mental health conditions.

[Mr Speaker]

I am reminded of the feeling when one thinks the washing machine will stop—but it does not!

[Dr Eilidh Whiteford (Banff and Buchan) (SNP)]

Over 143,000 benefit sanctions were imposed in Scotland in the two years from October 2012, and one in four food bank users is using them because of delays in the benefit system. Yet today we read in the Financial Times that the Tories are planning to cut 30,000 jobs from the Department for Work and Pensions if they win the next election, most of them in the nations and regions. Is this not a recipe for further chaos and misery? Do not both claimants and DWP staff deserve better?

[Esther McVey]

For the sake of brevity and clarity, those figures are not true at all.

[Mr Speaker]

That was exemplary brevity and clarity, I must concede.

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[Kelvin Hopkins (Luton North) (Lab)]

Would the Secretary of State like to thank the former Labour Government—[Interruption.]

[Mr Speaker]

Order. Mr Hopkins is on his feet, seeking to ask a question in his normally robust but courteous manner, and being shouted down by a Member on his own Benches. That is not satisfactory. I want to hear Mr Hopkins; the people of Luton North want to hear Mr Hopkins, the nation wants to hear Mr Hopkins.

[Kelvin Hopkins]

I am most grateful to you, Mr Speaker, for that help. Would the Secretary of State like to thank the former Labour Government for keeping Britain out of the euro, which is the principal cause of the devastation of the southern European members of the eurozone?

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[Esther McVey]

My hon. Friend is quite right. University is one route into work, and if it works for people that is great, but apprenticeships are another route, and this Government have done more than any other to get young people into apprenticeships—there are now more than 2 million apprentices—and into work. I know that my hon. Friend works closely with his university and local businesses to make that happen.

[Mr Speaker]

We are running late, but this is the last Work and Pensions Question Time of the Parliament and there are two colleagues I wish to accommodate.

[Mr Ronnie Campbell (Blyth Valley) (Lab)]

Youth unemployment in my constituency is still very high. Unlike some Tory Members, I cannot brag about a 50% reduction in youth unemployment. In fact, I cannot even go to 5%. Will the Minister do something about it?

[Mr Duncan Smith]

Of course we want to ensure that every young person has a chance to get a job, none less so than we on the Government side and the hon. Gentleman, but he must remember that the reason they are unemployed is that the economy crashed and fell by 6% of GDP, and we have to put that right. What we are seeing now is more young people across the country getting back into work. I believe that this does and will affect his constituents for the better, which is exactly what it is all about.

[Mr Speaker]

Last but not least, Mr Duncan Hames.

[Duncan Hames (Chippenham) (LD)]

Now that the roll-out of universal credit is beginning in Wiltshire, what effect will it have on the identification of children’s eligibility for free school meals, and what conversations has the Secretary of State had with Ministers in the Department for Education on how that will affect the allocation of the incredibly popular pupil premium?

Points of Order

John Bercow Excerpts

Monday 9th March 2015 Commons Chamber

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

On a point of order, Mr Speaker. I am known to be a long-term champion of equality for women in our society and at work. During Question Time, only a few moments ago, I referred to the Minister for Employment, the right hon. Member for Wirral West (Esther McVey), as “hard-hearted Hannah”, which I think she thinks was a sexist remark. It was not meant as a sexist remark; it is actually the name of a famous song sung by Ella Fitzgerald. The Minister has a reputation for being a very hard champion of the welfare reforms that this Government have introduced, so I believe that it was a fair comment to make and that it was unfair to call me a sexist. [Interruption.]

[Mr Speaker]

Order. All I need say is twofold. First, the hon. Gentleman has put his point on the record. Secondly, the way I would prefer to characterise it—I am not arguing with the hon. Gentleman—is that the Minister of State is an extremely robust character who can make her own case with force and skill, as she has done on several occasions today, and indeed at all times. If the Minister, who felt aggressed against and to an extent aggrieved, wishes to speak briefly on the matter, I would of course give her that opportunity.

[The Minister for Employment (Esther McVey)]

Further to that point of order, Mr Speaker. The reason I want this put on the record is that it is not the first time Opposition Members have been like this to me. John McDonnell came to my constituency and asked people—I know this is unparliamentary language—to “lynch the bitch” live in Wirral West. That is what Labour Members ask people to do in other people’s constituencies. The Opposition have form. [Interruption.]

[Mr Speaker]

Order. My role is to seek to defuse this. There are strongly held views on both sides. I asked the hon. Member for Huddersfield (Mr Sheerman) to raise his point of order and he did, and I thought it right that the Minister of State should have a right of reply and she has had it. I understand there are strong feelings. Let us try to preserve the courtesies as best we can in the days and weeks ahead. In all sincerity, I thank—and I mean that—both Members for having made their contribution. We will leave it there.

Armed Forces (Service Complaints and Financial Assistance) Bill [Lords] (Programme) (No. 2)

Ordered,

That the Order of 2 February 2015 (Armed Forces (Service Complaints and Financial Assistance) Bill [Lords] (Programme)) be varied as follows:

(1) Paragraphs (4) and (5) of the Order shall be omitted.

(2) Proceedings on Consideration shall (so far as not previously concluded) be brought to a conclusion, at today’s sitting, two hours after the commencement of proceedings on the motion for this order.

(3) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion, at today’s sitting, three hours after the commencement of proceedings on the motion for this order.—(Anna Soubry.)

Pension Schemes Bill

John Bercow Excerpts

Tuesday 24th February 2015 Commons Chamber

[The Minister for Pensions (Steve Webb)]

I beg to move, That this House agrees with Lords amendment 1.

[Mr Speaker]

With this is will be convenient to take Lords amendments 2 to 9, 44, 49, 56 to 65, and 117.

[Steve Webb]

I believe that the Bill is in a better state as a result of the two groups of Lords amendments that we shall discuss today. Many of them are Government amendments, designed to tidy things up or deal with errors, and some reflect their lordships’ desire for the affirmative procedure to be used in the case of certain statutory instruments. The amendments are largely technical, but I shall of course be happy to deal with them in more detail if the House wishes me to do so.

Lords amendments 1 to 9, 49, and 59 to 65 deal with defined ambition and collectives. The Bill contains key reforms to private pensions; encouraging and enabling “defined ambition” or “shared risk” pension schemes and “collective benefits”. In the following amendments, their lordships sought to refine or build on the legislation since it had left the Commons.

Lords amendments 1, 2, 3 and 6 introduce minor changes to ensure drafting consistency. Clause 27 provides for regulations to require a scheme providing collective benefits to wind up the whole or part of the scheme, while clause 37 provides for regulations to impose a duty on managers of non-trust-based schemes to act in the best interests of the members when making certain decisions. Both clauses refer to different types of obligation that may apply in relation to the scheme, including those that are part of the scheme—that is, provisions of the scheme—and those contained in legislation that applies to the scheme. The amendments provide for descriptive consistency in the clauses in relation to those different types of obligation.

Lords amendments 4 and 5 clarify “publication of documents” provisions. Powers in part 2 of the Bill may require trustees or managers of schemes providing collective benefits to have policies in relation to a number of matters, including the factors used to calculate member benefits, the calculation of transfer values, and steps to deal with a deficit or surplus in relation to the target. Clause 32 allows regulations made under part 2, which require trustees or managers to prepare or obtain any document, to include requirements relating to the publication of those documents and the sending of copies to a specified person. Specified persons could include members and regulators.

The publication of various policies is a key feature of the regime that we are seeking to introduce in order to ensure that it is clear how members’ assets and benefits will be managed or calculated by the scheme. It ensures that there will be transparency in regard to the way in which collective benefit assets are treated in certain circumstances, because there is a less direct relationship than there is in a money purchase benefit when it comes to a member’s entitlement in relation to contributions. We also have regulation-making powers to make certain requirements in relation to the policy. An amendment was required to put it beyond doubt that the provisions of clause 32 also apply to the policies specifically. The amendment ensures there is no possibility of a scheme’s “having” a policy that we cannot require to be published or sent to a specified person.

Lords amendment 7 puts the meaning of the amendment made by clause 45 beyond doubt. The change to section 67A of the Pensions Act in the clause makes any modification to an occupational pension scheme that would replace a member’s accrued rights with a right to a collective benefit a “protected modification”. Protected modifications can be made only if the member consents. Lords amendment 7 makes it clear that the provision applies only when the existing accrued right is not a right to a collective benefit.

Lords amendments 8, 9, 59 and 60 address an omission in the current legislation. While the changes made by the Bill were being checked, omissions in the Pensions Act 2014 came to light. The amendments that were needed all relate to overriding legislation. When legislation overrides conflicting provision in the scheme rules, there are circumstances in which that legislation needs to be treated as if it were part of the scheme rules. The amendments ensure that overriding requirements made under regulations provided for by schedules 17 and 18 to the Pensions Act will be treated as part of the scheme rules for the purposes of the Pensions Act 2004, in the case of Lords amendments 64 and 65, and subsisting rights provisions in the 1995 Act, in the case of Lords amendments 8 and 9. The amendments provide for consistency and clarity in the way in which the overriding provisions are dealt with.

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[Steve Webb]

I beg to move, That this House agrees with Lords amendment 10.

[Mr Speaker]

With this it will be convenient to consider Lords amendments 11 to 43, 45 to 48, 50 to 55 and 66 to 116.

[Steve Webb]

This group of amendments relates primarily to the new pensions freedoms announced by the Chancellor in the Budget last year, which will generally come into effect on 6 April this year. I shall begin with the pension guidance and guarantee, now known as Pension Wise, covered by amendment 10 and amendments 66 to72. The Government intend that all those who stand to benefit directly from the new pensions flexibilities provided by the Taxation of Pensions Act 2014 should have access to guidance. The amendments to clause 47 and schedule 3 are technical amendments to ensure that that is the case.

The amendments adjust the definition of pensions guidance in new sections 333A and 137FB of the Financial Services and Markets Act 2000 to extend pensions guidance to survivors of members who have flexible benefits, rather than just the members of pension schemes. This is needed because in some circumstances pension schemes may provide benefits to survivors of members of the scheme other than insurance-based products or cash lump sums—that is, flexible benefits—without their becoming members of the scheme.

Amendments 11 to 18 and amendment 50 provide advice safeguards. Clauses 48 and 51 were amended in the Lords via Government amendment. These contain the provisions creating the advice safeguard, which requires schemes to check that financial advice has been received before an individual exchanges their safeguarded rights for those that can be taken flexibly. Clause 48 makes provision for Great Britain, while clause 51 makes corresponding provision for Northern Ireland. Amendments 11 and 15 improve the drafting of clauses 48 and 51, while amendments 12 and 16 ensure that the requirement to take advice also applies when a member takes an uncrystallised funds pension lump sum from benefits that are safeguarded.

On Report in the other place, a second group of amendments to those clauses were made in response to the recommendations of the Delegated Powers and Regulatory Reform Committee. Amendments 13 and 17 specifically provide for the only exception to the advice requirement that is intended to be in effect by 6 April—namely, an exemption from checking that advice has been received in the case of those with safeguarded wealth of £30,000 and below. Amendment 50 provides that regulations creating this exception are subject to the negative procedure, while regulations creating any other type of exception are subject to the affirmative procedure.

Amendment 14 provides more detail on the nature of the “appropriate independent advice” that is to be required under the safeguard. It provides that “appropriate independent advice” must be given by an “authorised independent adviser”, who has permission under the Financial Services and Markets Act 2000 to carry out a regulated activity specified in regulations. The Financial Conduct Authority sets out the standards for regulated activities in its rules, and that will allow it to set the standards for advice provided under the advice safeguard. Amendment 18 makes corresponding provision for Northern Ireland.

Let me now deal with amendments 19 to 21, 23 to 25, and 38 to 43, which are amendments to clauses 55 and 56, consequential on the Taxation of Pensions Act 2014. They allow a person to leave any remaining money purchase funds to a nominee or a successor. Schemes will be able to offer both nominees and successors a drawdown fund, so they need to be included in the clauses which deal with such arrangements. Amendments to clauses 60 and 61 do the same thing for legislation covering Northern Ireland, while amendments to clauses 72 to 74 make small changes to the definitions of terms used in part 4 of the Bill.

Let me now deal with amendments 22, 26 and 73 to 116, which are technical amendments to reflect the extension of the statutory right to transfer benefits and to ensure that the transfer process continues to operate smoothly after the requirement to take “appropriate independent advice” comes into force in April. Without these amendments there is a risk that the new transfer rights would not operate as intended after the new flexibilities come into force. Schedule 4 of the Bill amends the existing transfer rights provisions contained in part 4 of the Pension Schemes Act 1993 to give scheme members a statutory right to transfer a particular category of benefits, and gives scheme members with flexible benefits a statutory right to transfer these rights up to and beyond their scheme’s normal retirement age. Amendments 73, 92, 94, 96 and 115 would make consequential amendments to reflect numbering changes made elsewhere in schedule 4.

Amendments 22, 82 and 83 ensure that clause 55 and regulations under clauses 56 and 57 override any pension scheme rules which conflict with the statutory right to transfer overriding provisions for the purposes of the definition of “scheme rules”. These provisions amend the Pension Schemes Act 1993, the Pensions Act 1995 and the Pensions Act 2004, while amendments 26, 105 and 106 make corresponding provision for Northern Ireland. Amendment 75 replicates existing powers in the 1993 Act and will be used to preserve the effect of existing regulations under those powers, while amendment 98 makes identical provisions for Northern Ireland legislation.

Amendments 76 and 78 provide powers to extend the period within which a member who has received a statement of entitlement must take the cash equivalent of their accrued rights, and for the right to take the cash equivalent to lapse. Amendment 80 provides a power to extend the time in which the trustees of a scheme must do what the member requires. Amendments 88 and 89 make similar provision to extend time for pension credit members, and for trustees to act on members’ instructions. Amendments 99, 101, 103, 111 and 112 make similar amendments to the corresponding Northern Ireland legislation.

Amendments 79 and 102 make changes to section 98(1) of the 1993 Act and clarify that a member’s right to take a cash equivalent falls away where the trustees’ duty to carry out the member’s wishes is extinguished because they have been unable to confirm that the member has taken appropriate independent advice. Amendments 81, 86, 93 and 95 ensure that the definitions of scheme rules in the 1993 Act and the 2004 Act work for personal pension schemes. Amendments 82, 83 and 105 ensure that the definitions of “scheme rules” in the 1993 and 2004 Acts also apply for personal pensions, while taking account of any provisions that override these rules. Amendments 104, 109 and 116 do the same for Northern Ireland. Amendment 87 inserts a power to disapply the right of a pension credit member to transfer their pension credit rights in relation to prescribed descriptions of persons. Amendment 110 makes a similar amendment to Northern Ireland legislation. The remaining amendments in this group make a number of drafting, technical and consequential amendments to schedule 4 of the Bill.

Amendments 27 to 37 relate to public service scheme transfers. These are technical changes to improve drafting and ensure that the new safeguard applies where it should. The remaining amendments 45 to 48 and 51 to 55 are general amendments to part 6 of the Bill and are what are often known as the “back of the Bill” provisions. Amendments to clauses 80 and 81 would extend provisions to Northern Ireland, while the amendment to clause 84 would ensure that pension flexibilities provisions come into force at Royal Assent. I hope that what I have said has been helpful, and I commend the amendments to the House.

Compulsory Jobs Guarantee

John Bercow Excerpts

Wednesday 11th February 2015 Commons Chamber

16:28

Division 153

Ayes: 215

---

Labour: 202
Scottish National Party: 6
Plaid Cymru: 3
Social Democratic & Labour Party: 2
Green Party: 1
Democratic Unionist Party: 1

Noes: 301

---

Conservative: 259
Liberal Democrat: 40
Independent: 1

[Mr Speaker]

I have now to announce the result of the deferred Division on the draft Smoke-Free (Private Vehicles) Regulations 2015. The Ayes were 342 and the Noes were 74, so the Question was agreed to.

[The Division list is published at the end of today’s debate]

Oral Answers to Questions

John Bercow Excerpts

Monday 26th January 2015 Commons Chamber

[Mr Harper]

The hon. Gentleman is right. One thing we are doing through our Disability Confident campaign is ensuring that employers are aware not only of those with physical disabilities but of those with mental health problems. There was, for a period, a statutory bar on Members of Parliament serving in this House in this respect. When I was in Opposition I challenged the then Justice Secretary on the matter, and this Government have now delivered change to ensure that we set a good example. We now say that if someone has a mental health problem, they are just as capable as anyone else to work both as a Member of Parliament and as staff in the House.

[Mr Speaker]

On that matter, the Minister of State wisely heeded the recommendation of the Speaker’s Conference on Parliamentary Representation, which enjoyed all-party support.

[Dr Eilidh Whiteford (Banff and Buchan) (SNP)]

Voluntary sector organisations working with the most vulnerable claimants are expressing concerns that people with mental illness are still over represented among those being sanctioned. Does the Minister accept that there is still a problem here, and what more can he do about it?

--- Later in debate ---

[Wayne David (Caerphilly) (Lab)]

rose—

[Mr Speaker]

The hon. Gentleman’s constituency is a considerable distance from Shipley and Yorkshire, but no doubt he will say he has a half-sister there, or something.

[Wayne David]

I am an only child, Mr Speaker.

With regard to Shipley and Yorkshire, can the Minister say how many of the jobs she mentioned were part-time, on zero-hours contracts or on the minimum wage? If she is not sure of the figures, does she agree with me that a heck of a lot of jobs are in those categories?

--- Later in debate ---

[Mr Duncan Smith]

My right hon. Friend is correct. The reality is that delays in benefit payments have fallen under this Government. There are now fewer delays. The Opposition say that we need to speed up the payment of benefits. I remind them that under Labour benefits were not paid until two weeks after the claim, so unless they are now saying that benefits should be paid earlier than that, I really have no idea what the Opposition’s policy is on this. We pay benefits as quickly as possible. There is no determination to delay payment. Jobcentres and benefit offices do their level best to ensure that people get money when they need it, and hardship funds are available if anybody has any difficulty.

[Mr Speaker]

We shall squeeze in one more. I call Sheila Gilmore.

[Sheila Gilmore (Edinburgh East) (Lab)]

18. What recent assessment he has made of the reasons for changes in the number of employment and support allowance claimants.

--- Later in debate ---

[Steve Webb]

Action is already being taken. Those statistics were a snapshot showing the position in April 2014. Measures that we have announced, such as the charge cap, mean that some of those schemes will be dealt with, and by the end of this week I shall have met six major pension providers to discuss how we can speed up the process of tackling the high legacy pension charges which the last Government did nothing to tackle.

[Mr Speaker]

Last but not least, Mr Graham Allen.

[Mr Graham Allen (Nottingham North) (Lab)]

T10. The Secretary of State will be aware that 1,250 young people in my constituency are long-term unemployed. As well as helping those people directly, will he link much more closely with the Department for Education so that we can pre-empt those problems through good careers guidance, helping the pre-NEETs and ensuring that young people are job-ready at the age of 16, 17 and 18?

Pensions and Benefits Uprating

John Bercow Excerpts

Thursday 4th December 2014 Commons Chamber

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

rose—

[Mr Speaker]

Order. The hon. Gentleman did not appear to be in the Chamber at the start of the statement. Was he present then?

[Steve McCabe]

I think I was 25 seconds late, Mr Speaker.

[Mr Speaker]

If the hon. Gentleman was not in the Chamber at the start of the statement, it is not seemly for him to seek to participate. I would not want him to behave in an unseemly manner—wittingly or unwittingly. I am in a sense saving the hon. Gentleman from himself in saying that he should not participate on this occasion. We will store him up and look forward to his words of wisdom subsequently.

[Ian Swales (Redcar) (LD)]

I congratulate my right hon. Friend on today’s pension announcement and on getting the Liberal Democrat policy of a triple lock increase into this Government’s programme. Does he agree that with a safety net of 2.5%, the minimum pension increase that people can look forward to in the future is nearly £3 a week and that they will have no more insulting 75p a week increases?

Oral Answers to Questions

John Bercow Excerpts

Monday 3rd November 2014 Commons Chamber

[Mr Duncan Smith]

I completely agree that in the right hon. Gentleman’s individual case, which I do know about and I recognise, that money should go to the parent with care. We fully agree with that and the CSA, part of the Child Maintenance and Enforcement Commission, is bearing down to try and get the details of this individual. As he knows, this case is a little complicated because the individual moves time and again before the agencies can get hold of him, but I have to say that I have already intervened by talking to them about this, and I promise the right hon. Gentleman this, and ask him to pass this on to his constituent: I personally will take direct interest in this because it is outrageous that this individual gets away with what he is doing. I have told the CMEC that it must bear down on these cases. The reforms we are bringing in will do just that, and I hope the right hon. Gentleman can reassure his constituent that we will sort this out.

[Mr Speaker]

There will be a further report to the House on the matter in due course. I am quite confident of that.

[Pauline Latham (Mid Derbyshire) (Con)]

Can my right hon. Friend confirm that, in spite of what Opposition Members say, relative child poverty has fallen by 300,000 under this Government since 2010?

--- Later in debate ---

[The Minister of State, Department for Work and Pensions (Mr Mark Harper)]

When I was asked this at the last departmental questions, I said that the straightforward answer was that PIP claimants were having to wait too long and we are putting that right. I am pleased to say that since I answered that question we have made considerable progress; both the assessment providers have significantly increased the number of claims they are processing. That is good, and we will meet the Secretary of State’s commitment that nobody would be waiting 16 weeks by the end of the year. On the statistics, we will pre-announce the publication in due course, in line with the UK Statistics Authority code of practice.

[Mr Speaker]

Let us speed up, as these answers are taking too long.

[Cathy Jamieson]

Thank you, Mr Speaker. I also thank the Minister for that answer, but I would like him to make something absolutely clear. If one of my constituents phones up the Department today to make a PIP claim, will that be dealt with within 16 weeks or will they hear what people are often hearing, which is that it could take up to six months?

--- Later in debate ---

[Mr Duncan Smith]

I have talked to employers endlessly about making sure that they pay a decent wage—first, making sure that people pay the minimum wage, which the last Government were rather slack about but we have done a lot on. My own Department pays our employees in London the London living wage, and we negotiated with the contractor to make sure everybody gets it, including all the cleaners.

[Mr Speaker]

I am sure that the House is aware—but if not, I can inform Members—that the House of Commons is itself an accredited living wage employer.

[Mr Dominic Raab (Esher and Walton) (Con)]

T1. If he will make a statement on his departmental responsibilities.

--- Later in debate ---

[Rachel Reeves]

On a point of order, Mr Speaker.

[Mr Speaker]

A point of order will come after questions. If it relates to these matters—[Interruption.] No, there is discretion. Exceptionally, I can take it after Question Time if it relates to these matters.

[Rachel Reeves]

It relates to the Secretary of State’s answer.

[Mr Speaker]

That is fine: I can take it after this questions session, most certainly.

[Chris White (Warwick and Leamington) (Con)]

T2. The number of young people claiming jobseeker’s allowance in Warwick and Leamington has fallen by 70% since April 2010. Will the Minister join me in congratulating local businesses and the young people who work so hard to make this possible, and outline what measures are being taken to ensure that this trend continues?

--- Later in debate ---

[Mr Duncan Smith]

As the hon. Gentleman knows, we are in the middle of discussing devolution proposals that emanated in Scotland but that cover all other elements of the United Kingdom. The key point that I make to him again and again is that Northern Ireland has not implemented the welfare legislation. As a result of that, it is difficult for us to deal with Northern Ireland directly on these matters, but I am certainly willing to engage.

[Mr Speaker]

As I indicated earlier, I will take the point of order because it relates to these matters.

[Rachel Reeves]

On a point of order, Mr Speaker. The Secretary of State criticised me for not turning up to vote on an Opposition day motion last week. He knows nothing of why I was not able to attend last week. I kindly ask him to withdraw his criticism and apologise for the aspersion that I could not be bothered to turn up to vote in the House of Commons.

--- Later in debate ---

[Mr Speaker]

Order. We cannot have a protracted exchange on this one matter. However, if the hon. Lady wishes to add anything further, I am content that she should do so.

[Rachel Reeves]

Thank you, Mr Speaker. I was not in Rochester last week. I will give the Secretary of State one last opportunity to withdraw the aspersion and apologise. He knows nothing of the reason why I was not here last week, so I ask him to withdraw the aspersion and apologise.

[Mr Duncan Smith]

I stand by my assertion that the hon. Lady did not vote and that her name was not on the Order Paper.

[Mr Speaker]

Order. That is the end of it for now.

School Governors (Appointment)

John Bercow Excerpts

Tuesday 28th October 2014 Commons Chamber

[Neil Carmichael (Stroud) (Con)]

I beg to move,

That leave be given to bring in a Bill to require that school governors be appointed on the basis of experience relevant to the role; and for connected purposes.

I would first like to thank all the school governors across the land, because the role they play in ensuring that our schools are well managed, well led and well planned is enormous. The tribute I pay to them is heartfelt. They also contribute massively to local communities, and that, too, needs to be recognised.

Our schools are going through a changing landscape. There are more schools with increasing autonomy than ever before, and that direction of travel is continuing. That is quite right, because there is support across this House for academy status, and other schools are beginning to benefit from more autonomy. The structures behind those schools are changing as well, with the introduction of the regional commissioners, the changing role of local authorities and, indeed, the emerging debate on academy chains, and that means that governors and governance are becoming increasingly important. Another driver has been the role of Ofsted in focusing on the importance of leadership and governance as part of the inspection process by making the latter category one of the four that will determine whether a school is graded in the way it wants to be.

Already in Westminster we have seen a large number of actions under the auspices of those who want improved governance across the piece. The Education Committee—I see that its Chair, my hon. Friend the Member for Beverley and Holderness (Mr Stuart), is in his place—has conducted an inquiry into school governance and made a number of recommendations to which the Government have, quite properly, responded. I established the all-party parliamentary group on education governance and leadership almost as soon as I arrived here, with the purpose of talking about school governors and ensuring that their role is properly understood and develops in line with education policy, and that we recruit good governors.

Another thing that has happened is the Inspiring Governors initiative whereby various organisations have formed an alliance, including the Department for Education, the CBI, employment and education bodies, and a whole range of others. They have come together to make sure that we can promote governance to people who may not necessarily have thought of being a governor before. I am running through this activity to demonstrate that there is a lot of thought behind what I am proposing in this Bill—thought that is underpinned by substantial work. Other bodies that are key for our governors include the National Governors Association, the Wellcome Trust, the School Governors’ One-Stop Shop, and Wild Search. They have all contributed to the wider debate about the role of governors.

So where do we need to be? First, we want school governing bodies to be flexible. We want them to be able to decide how they are constructed, how they develop their plans, and how they interface effectively with their schools. The need for more autonomy for school governing bodies is recognised and required. Strong accountability of head teachers matters. A governing body needs to be able and willing to take on a head teacher who is not delivering—that is absolutely critical. We do not want weak governing bodies; we want strong and supportive governing bodies that are nevertheless capable of making a harsh decision if it ever becomes necessary. Nobody wants to do that without forethought, but the governing body needs to be capable of backing up the decision if necessary.

We need to make sure that strategic thinking takes place in schools. Governing bodies have to set the scene, the ethos and the direction of travel in making sure that the head teacher and everybody else is aware of the process. It is also important to engage with the wider community. No school can survive successfully without proper engagement in the community, and the governing body is part of that process. An effective governing body is the type of structure with good communication skills that can make the difference in this whole field.

We also want better links with employers. We must cultivate circumstances in which schools are talking to businesses much more readily and frequently about the requirements that businesses have. If we are going to start measuring the performance of schools by the destinations of their pupils, we need to be clear that schools bear some responsibility in making sure that their pupils know where they can go and where they should go, and are equipped to get there.

Getting the right people is an important mission. We need to enable employees of businesses to perform on governing bodies if they agree to do so. As the Department for Education has acknowledged, that may require an amendment to the Employment Rights Act 1996, and I would certainly want this Bill to incorporate that. We need to raise the profile of governors so that they can be recognised properly. I include national honours in that, but also civic responsibilities, civic duties and civic recognition.

Strong chairs of governors are absolutely essential and it is worth considering selecting as chair somebody who was not previously on the governing body. We need to choose the best people, not wait for them to come through the pipeline. We need an accelerated process to enable them to get where they need to be. That needs to be debated.

We also need to have a rapid response to failing schools. The Government are taking action, but some local authorities are not necessarily doing so as fast as they should be. The introduction of an interim executive board has often yielded good results and turned schools around, but there is no use in waiting for things to get so bad that turning them around is such a big job. We should be acting swiftly. Governing bodies have a role to play by recognising when they have themselves lost control and need some outside help.

I want to suggest some further steps to pave the way. We need pools of tested and proven governors who are able to address certain situations. The regional commissioners may well want to consider that suggestion as their role develops during the course of the current reforms. It is important that we have governors to choose from, rather than have to search for somebody who will do the job reluctantly. That is essential for good governance in all areas, certainly in schools.

We need to think about the transparency of decision making. The more people understand what governors do and the more they see the responsibility they have and how it can make a difference, the better. Transparency of school governing bodies is important.

A further next step for school governing bodies to take is on the need to be more corporate in how they conduct their affairs. We have already seen that pattern emerge and develop in the further education sector, so I think we should see more of it in the school sector, because it will encourage the sorts of skills, characteristics and processes I have already discussed.

In short, this Bill would make it easier, more attractive and rewarding to be a school governor, because we want the right people with the right skills, enthusiasm and motives to make sure not only that learning is a school’s top priority, but that its other characteristics can be encouraged and developed.

Finally, we are enormously thankful to those governors who currently serve, but we need to move to the next stage, which is a new shape for education, with more autonomy and responsibility. That will, of course, be a greater challenge for governing bodies, and that is why we need governors of the calibre I have described.

Question put and agreed to.

Ordered,

That Neil Carmichael, Alistair Burt, Mr Graham Stuart, Richard Graham, Mr Robert Syms, Sir Alan Beith, Fiona Bruce, Matthew Hancock, Chris Skidmore, Jeremy Lefroy and Robert Jenrick present the Bill.

Neil Carmichael accordingly presented the Bill.

Bill read the First time; to be read a Second time on Friday 23 January 2015 (Bill 109).

[Mr Speaker]

We will have to delete the name of Mr Hancock, because he now occupies the illustrious post of Minister of State.

[Neil Carmichael]

You are absolutely right, Mr Speaker, and I don’t know why he is on this list, because he shouldn’t be.

[The Minister of State, Department for Work and Pensions (Mr Mark Harper)]

He’s a great man!

[Mr Speaker]

He may be a great man—that is a divisible proposition, but what is not a divisible proposition is that he cannot sponsor a 10-minute rule motion. The hon. Member for Stroud (Neil Carmichael) has enough supporters and he need not trouble his head about the matter any further.

Parliamentary Under-Secretary of State for Welfare Reform (Disabled People)

John Bercow Excerpts

Tuesday 28th October 2014 Commons Chamber

[Several hon. Members]

rose—

[Mr Speaker]

Order. A great many hon. and right hon. Members are seeking to catch my eye, as a consequence of which, I have had to impose a six-minute limit on Back-Bench speeches. However, we are about to hear a maiden speech, so the House will understand why I have decided that the limit should apply after the first two speeches from the Back Benches.

--- Later in debate ---

[Hon. Members]

Hear, hear.

[Mr Speaker]

We are extremely grateful to the hon. Lady. We enjoyed her speech, and we will now hear from Sir George Young.