Oral Answers to Questions

Debate between Stephen Phillips and Steve Webb

Monday 1st July 2013 Commons Chamber

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

I am grateful to the hon. Gentleman and pay tribute to his assiduous work on behalf of his constituents in that case. I hope that this afternoon he was able to have a telephone conversation with the Pensions Regulator to discuss it. In general terms, the Pensions Regulator has powers to act overseas, as in the 2007 Sea Containers case and the 2011 Great Lakes case. I am happy to continue working with the hon. Gentleman on the issue.

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

T8. What steps is the Department taking to support those who have worked for one company for most of their lives and whose pensions have now gone into the pension protection fund?

[Steve Webb]

I am pleased to announce that we recognised that the cap in the pension protection fund on those who are early-retired was affecting people particularly adversely if they had long service. We will be tabling amendments to the Pensions Bill so that those who have long service of more than 20 years with a firm will get an enhanced level of protection.

Oral Answers to Questions

Debate between Stephen Phillips and Steve Webb

Monday 10th September 2012 Commons Chamber

[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.