Oral Answers to Questions

Steve Webb Excerpts

Monday 20th May 2013 Commons Chamber

[Roger Williams (Brecon and Radnorshire) (LD)]

5. What assessment he has made of the effects of planned changes to the state pension on women born between April 1952 and April 1953.

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

We have published a detailed assessment of women in that group, and we have found that an overwhelming majority will receive more pension over their lifetime than under the existing system than would a man born on the same day who receives a single-tier pension.

[Roger Williams]

I thank the Minister for that reply, and for the work that he has done on this matter. Given the fact that the new system and the current one will run concurrently after the implementation of the single-tier pension, can he reassure women in the affected age group that none will lose out in the transition, compared with women who are eligible for the proposed single-tier pension? Would he also consider meeting a group of women from my constituency to discuss the matter?

[Steve Webb]

Obviously, women in the age group we are talking about get a basic state pension based on 30 years, whereas those under single tier will need 35 years and those a few years older need 39 years. Each group has a different system, but the key point is that the new system will cost exactly the same as the system it replaced. We are not putting extra money into new pensions and ignoring today’s pensioners; it is the same amount of money, but spent in a simpler way.

[Andrew Gwynne (Denton and Reddish) (Lab)]

There are 900 of my constituents who are female and were born between 6 April 1951 and 6 April 1953, and who will not receive these new pension entitlements while men of the same age will. Will the Minister take this opportunity to apologise to those 900 women and bring forward proposals to look again at making sure that we have proper equality in the system?

[Steve Webb]

I think that the hon. Gentleman might have written his question before he heard my earlier answer. Comparing those women in his constituency with men born on the same day, as he did, misses the point that those men will have to wait several years longer for their pension. They would far rather be in the position of the women who get their pension at 62 or 63.

[Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab)]

The Minister’s response to my hon. Friend the Member for Denton and Reddish (Andrew Gwynne) is to say that these women are in a far better position than equivalent men. Let me push him a little on this. How did he come to a calculation suggesting that these women are better off? My understanding is that, under the Government’s plan, 700,000 women currently aged between 60 and 62 will on retirement receive a lower state pension every week than a man of the same age. Will he tell us specifically how much less a week on average these women will receive on retirement than a man of the same age?

[Steve Webb]

As the hon. Gentleman knows, two things matter: how much people get, and when they get it, and he ignores the second thing. A man born on the same day has to wait until he is 65, but the women he is talking about will get a pension at 61, 62 or 63. The fact that they get the pension for years longer more than offsets a lower average receipt.

[Paul Flynn (Newport West) (Lab)]

6. How many households in Wales have been affected by the under-occupancy penalty to date.

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

Our equality impact assessment estimates that around 40,000 claimants will be affected by the removal of the spare room subsidy in Wales. A formal evaluation of the policy will be carried out over a two-year period with initial findings available early next year.

[Paul Flynn]

BBC Wales reports that for every 70 victims of the bedroom tax, only one alternative unit of accommodation is available. That means that 69 out of every 70 will have no choice but to endure this tax, which is unfair, impractical and will further impoverish the already poor.

[Steve Webb]

The hon. Gentleman is right that we are asking social tenants to pay £2 a day towards a spare room—something that private tenants had to do under Labour’s local housing allowance scheme. Within Wales, a quarter of all social accommodation is one-bedroom properties. If we can deal with overcrowding and people on the waiting list in Wales, we will be doing the right thing by the people of Wales.

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

I am pleased that £50 million-worth of discretionary housing payments have been made available to ease the transition in difficult cases and to support families. How will the Minister ensure that my constituents are aware of this extra support?

[Steve Webb]

My hon. Friend makes an important point. We need local authorities and social landlords, with which we have been working, to alert tenants to the fact that over £150 million has been made available to local authorities this year to help individuals in hard cases.

[Jessica Morden (Newport East) (Lab)]

Monmouthshire council has allocated over a third of its £121,000-worth of discretionary housing payments in the six weeks since the bedroom tax came in. Given that the demand and the need is so high, does the Minister really believe that the Government have given enough money?

[Steve Webb]

It was always the case that there would be high demand at the start of the year, because unlike other discretionary housing payments that arise randomly through the course of the year, this will apply for the whole year. We expected and planned for a higher rate of demand at the start of the year. We do keep these things under review, of course, and we are in close contact with local authorities in Wales to monitor the early implementation of this policy.

[Philip Davies (Shipley) (Con)]

What will the Minister do to ensure that councils actually use the discretionary funding that has been given and do not hide the money away in order to make a political point against this particular policy?

[Steve Webb]

My hon. Friend is right. We need to ensure that local authorities use the money that has been given to them to assist households when an extra contribution would be helpful. We have given a huge amount of taxpayers’ money to councils for that purpose, and we expect them to use every penny of it.

[Glenda Jackson (Hampstead and Kilburn) (Lab)]

19. Government changes already require the British taxpayer to find nearly £2 billion more to rehouse vulnerable families. How many families does the Minister think will need to be rehoused as a result of this punitive bedroom tax?

[Steve Webb]

I do not recognise that number at all. In fact, many of the scare stories that have come from the hon. Lady and others have proved not to transpire. When we capped rents in the private rented sector, we were told that there would be mass evictions and that vast droves of people would be moving all over London, but the evidence has not borne that out.

[Pauline Latham (Mid Derbyshire) (Con)]

7. What recent estimate he has made of the number of people in full-time employment.

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[Gavin Williamson (South Staffordshire) (Con)]

9. What steps he is taking to help pensioners.

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

Even where we have had to take difficult decisions on welfare spending, we have systematically protected pensioners from the impacts of changes. Indeed, we have gone further: we have permanently increased the cold weather payment to £25, and the basic state pension is now a higher share of average earnings than at any time in the past 20 years.

[Gavin Williamson]

Unlike the Opposition, we on this side of the House recognise that it is not right to increase basic state pensions by 75p: we give proper increases. What more is the Minister doing to ensure that retirement incomes continue to rise in the future?

[Steve Webb]

As my hon. Friend knows, our goal is to have a retirement income based on the foundation of a simple, single, decent state pension—the legislation on this was announced in the Queen’s Speech—complemented by automatic enrolment into a workplace pension, so people have a pension based on their national insurance and a pension of their own with a contribution from both the employer and the taxpayer. That is a good combination to build on.

[Mr Nick Raynsford (Greenwich and Woolwich) (Lab)]

What does the Minister have to say to my constituent, a 91-year-old pensioner who is occupying a four-bedroom property and has been told that, because the priority has to be given to allocating smaller homes to people currently being hit by the bedroom tax, she has no immediate prospect of being housed in smaller, more suitable accommodation?

[Steve Webb]

We expect social landlords to manage their housing stock effectively, and many social landlords have put in place schemes to enable older tenants to trade down, which many of them would want to do. If the right hon. Gentleman’s constituent is 91, I would think the housing association in question has had plenty of time to do something about that.

[Mike Freer (Finchley and Golders Green) (Con)]

One of the barriers to pension planning is uncertainty. Does the Minister agree that auto-enrolment and the single-tier pension will give the certainty that both pensioners and the pension industry need?

[Steve Webb]

My hon. Friend is right: we cannot build a building on an uneven foundation. That is why we had to get state pension reform right with a single, simple, predictable state pension. That makes private saving and automatic enrolment far more effective, and I am grateful for his support for that principle.

[Mr Clive Betts (Sheffield South East) (Lab)]

10. What assessment he has made of the preparedness of the universal credit IT delivery system.

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[Mr Bain]

Seven weeks in, the true devastating consequences of the bedroom tax are becoming clear: claims for discretionary housing payments up 338% in a month, and in Glasgow rising to 5,500, the highest in the entire country. Is it not the case that the Secretary of State has not provided local councils with the resources they need to deal with a crisis of his making?

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

We have substantially increased the budget for discretionary housing payment, so it is not surprising that there is a rising number of people applying for it. My officials are in regular contact with Scottish local authorities to look at the issues there, as well as in other parts of the country. We have formal evaluation over the next year and two years, and we are monitoring the situation on the ground to see how these reforms are working.

[Jason McCartney (Colne Valley) (Con)]

T5. I am proud to have given full-time jobs to two young people who did some short-term work experience in my constituency office. That was work experience, not an internship. What evidence has my hon. Friend that work experience helps people get back into work?

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[Paul Flynn (Newport West) (Lab)]

T2. For many, retirement is a welcome liberation from demeaning drudgery. For others, it is an unwelcome end to their useful lives, often leading to ill health. What are the Government doing to ensure more choice in the age of retirement?

[Steve Webb]

One of the measures we implemented early on, and of which I am proudest, was the abolition of forced retirement. The previous Government talked about it a lot, but we abolished it, so people can no longer be forced out of their jobs simply for turning 65. However, there is much more to do. We are working with employers’ groups on attitudes to older workers to encourage them to retain them and enable them to stay in the work force if they wish to do so.

[Tim Loughton (East Worthing and Shoreham) (Con)]

T7. Ministers will be aware of the long-overdue changes to shared parenting in the current Children and Families Bill. Will they liaise with their hon. Friends in the Department for Education to ensure that non-resident fathers are not deterred from engaging in their children’s lives as much as possible because of welfare changes that might make it difficult for them to secure appropriate accommodation when their children come to stay?