Oral Answers to Questions

Steve Webb Excerpts

Monday 13th January 2014 Commons Chamber

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

I am pleased to update the House and say that more than 2.5 million workers have now been automatically enrolled into a workplace pension. That puts us roughly a quarter of the way through the entire programme of automatic enrolment.

[Andrew Jones]

What have the Government done to ease the burdens on employers, particularly the small and medium-sized enterprises that play such a dominant role in the business mix in my constituency?

[Steve Webb]

My hon. Friend is quite right. Every change that we have made to the administration of automatic enrolment has been designed to reduce the burden on firms. For example, we have raised the wage threshold at which people are automatically enrolled, and we have delayed the staging for the smallest firms so that no one who employs fewer than 50 people will have to stage before April 2015.

[Dr Matthew Offord (Hendon) (Con)]

11. What transitional arrangements his Department will make in respect of the ending of basic state pension inheritance.

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

The ability to access or increase a state pension based on the national insurance record of a partner or former partner was introduced in the 1940s, but less than 5% of people reaching pension age after the single tier is introduced will be affected by the removal of this facility. We are putting in place transitional arrangements for certain women who paid the married woman’s stamp, but to go beyond that and make transitional arrangements for a broader group would severely damage the simplicity of the scheme.

[Dr Offord]

Can my hon. Friend confirm that protection will be put in place for those women who have paid the married woman’s stamp, to ensure that they receive a decent state pension?

[Steve Webb]

Yes, I can. Women who paid the married woman’s stamp at any point in the 35 years before the scheme comes in will get the pension that they expected—namely, the 60% for married women and the 100% widow’s pension.

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

When the Minister announced his flat-rate state pension reform, the key argument was that the public would henceforth have clarity about what they could expect from the state in retirement. Now we find, via a parliamentary question tabled by my hon. Friend the Member for Erith and Thamesmead (Teresa Pearce), that the Government have no intention of writing to individuals to communicate what the state pension changes will mean for them and their families. Why did the Minister give the impression that the Government would write to people about their state pension entitlement if he has no intention of doing so?

[Steve Webb]

I am slightly baffled by that question, because our reforms to the state pension will affect everyone who reaches state pension age after 2016. That is almost the entire working age population. Is the hon. Gentleman really suggesting that we should write 40 million letters?

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

12. What assessment he has made of the appropriateness of the eligibility criteria for funeral payments allocated from the social fund.

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

It is important that help is targeted at those who are least well off at the time the need arises. The Government therefore firmly believe that the qualifying criteria for the funeral payments should be linked to the receipt of one of a number of income-related benefits.

[Mrs Lewell-Buck]

I thank the Minister for his response, but the reality is that almost one in five people struggles to pay the cost of a funeral service for a member of their family, and more and more are taking on debts so that they can afford to pay for a service for their loved one. Will the Minister therefore consider adjusting the criteria so that families suffering emotional hardship need not experience financial hardship as well?

[Steve Webb]

I am grateful to the hon. Lady for her question. We have expanded the scope of the budgeting loans scheme to include funeral costs, which were not previously eligible. If someone is short of cash to meet funeral costs, they can borrow money through the social fund if they are eligible for a budgeting loan, as well as applying for the grant that we pay, which averages £1,200.

[Nic Dakin (Scunthorpe) (Lab)]

16. What assessment he has made of the effect of the under-occupancy penalty on household incomes.

--- Later in debate ---

[Neil Carmichael]

With the popularity of the Post Office in mind, does the Minister agree that the value of the Post Office card account is immense, benefiting some 2.9 million people? Will he think about extending it?

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

I indeed agree with my hon. Friend that the Post Office card account has played an important part in supporting the post office network and enabling pensioners and benefit recipients to receive their money at a local post office. All of the options under consideration conclude that access to pensions and benefits via the post office will continue beyond March 2015.

[Rachel Reeves (Leeds West) (Lab)]

We already know that 600,000 people are affected by the bedroom tax, two thirds of them are disabled and 60,000 are carers. Will the Secretary of State now tell the House exactly how many long-term residents have been wrongly paying the bedroom tax since April because the Government failed to spot a loophole in the legislation?

--- Later in debate ---

[Dr Matthew Offord (Hendon) (Con)]

T7. Will the Minister confirm that under the new system, 80% of individuals will be entitled to a full single-tier pension in their own right by 2030?

[Steve Webb]

I am encouraged by the close interest my hon. Friend is taking in the single-tier pension, and I feel he is a kindred spirit. He is right that, as the 35-year qualifying rule includes not just earned contributions but credits for caring and so on, the vast majority of people will qualify for the full single-tier pension.

--- Later in debate ---

[Kelvin Hopkins (Luton North) (Lab)]

T4. The Government’s auto-enrolment pension scheme will provide relatively poor and insecure returns, based as it is on the private pensions industry and subject to stock market vagaries. Is not the only long-term solution a comprehensive and compulsory state scheme for all, with defined and guaranteed returns, in line with schemes overseas?

[Steve Webb]

I pay tribute to the hon. Gentleman for his consistency on the issue. His view is that he wants his income in retirement to be wholly dependent on a promise that future taxpayers would fund it. I must say that I would prefer to spread my risks by having a decent, simple state pension, such as the single-tier pension that we are introducing, and a stock market-linked investment that will benefit in the long run as the economy grows and, crucially, will benefit from a contribution from the employer, too, which is not the case in the state scheme.

[Bill Wiggin (North Herefordshire) (Con)]

T9. Will the Secretary of State say how many fewer children there are in workless families since 2010?

--- Later in debate ---

[Greg Mulholland (Leeds North West) (LD)]

Tragically, nearly 10,000 families suffer the death of a child each year, including 7,800 babies under the age of one. Is it not time that the Government did the right and compassionate thing in the remainder of this Parliament by backing the Change Bereavement Leave campaign and introducing a statutory right to bereavement leave for all parents who lose a child?

[Steve Webb]

As my hon. Friend knows, the Government are reforming bereavement benefits. The intention, having talked with bereaved families, is to focus the funding on the point of bereavement and the immediate year thereafter, but obviously ongoing support for bereaved families will be available through universal credit. I will be happy to discuss the matter with him further.

[Jonathan Ashworth (Leicester South) (Lab)]

A few moments ago the Secretary of State quoted the Minister for the Cabinet Office on universal credit, but he forgot to mention the part where the Minister called its implementation “lamentable” and said that a lot of money has been wasted. We also learned last week that the Cabinet Office withdrew the Government Digital Service from universal credit, a decision described as “disappointing” by the lead official. Why did the official describe it in such terms?