Oral Answers to Questions

Stephen Phillips Excerpts

Monday 10th September 2012 Commons Chamber

[Mr Hoban]

The hon. Lady will be aware that the Old Swan jobcentre in her constituency was subject to an arson attack in May. The cases dealt with at the centre and the 63 members of staff working there have been moved to the West Derby jobcentre. I am confident that they can provide the same quality of service from there as they could from their previous centre.

[Stephen Phillips (Sleaford and North Hykeham) (Con)]

3. What discussions he has had with officials in his Department on the long-term financial benefits to the Government of up-rating frozen expatriate pensions.

[The Minister of State, Department for Work and Pensions (Steve Webb)]

We estimate that the cost of uprating frozen pensions would be about £655 million a year. We believe that this is substantially in excess of any hypothetical savings arising from changed migration behaviour that might follow a change in policy on frozen pensions.

[Stephen Phillips]

I am grateful to my hon. Friend for that answer. He will be aware of the Oxford Economics report published last year that suggested that the Government could make a net saving overall in relation to pensioners who wish to retire overseas but are incentivised not to do so by the frozen pension situation. He will also be aware of the grave injustice against British pensioners who have already retired overseas whose pensions have been frozen. Now that there appears to be an economic case for righting that historic wrong, will he undertake to reconsider the question so that those who retire overseas can enjoy the fruits of their work in this country?

[Steve Webb]

I have indeed read that report, which I think is flawed on a number of grounds. To give an example, it assumes that if we uprate pensions, far more people will emigrate, and it counts savings from health and social care that might not materialise for 15 to 20 years while counting the costs up front. Our colleagues in the Treasury are not so far seeking policies with large costs for the current comprehensive spending review period that will give savings in 2030.