Oral Answers to Questions

Steve Webb Excerpts

Monday 8th December 2014 Commons Chamber

[John Pugh (Southport) (LD)]

3. What his policy is on the freezing of pensions of British nationals living abroad; and if he will make a statement.

[The Minister for Pensions (Steve Webb)]

The policy of the Government on the uprating of UK state pensions paid to people living overseas is the same as that of successive post-war Governments—namely, to uprate such pensions where we are legally required to do so under the terms of EU law or a bilateral social security agreement.

[John Pugh]

I thank the Minister for that, I think, but surely there are enough anomalies and inconsistencies in the system to warrant a wholesale review. British pensions should not be country-dependent.

[Steve Webb]

I agree with my hon. Friend in the sense that if one were designing a system from scratch, one would not necessarily design the one that we have arrived at over the course of 50 years. He will be aware, however, that paying for this indexation would cost some half a billion pounds a year, and I do not believe that any party in this House has committed to such an increase in public spending.

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

The state pension and associated benefits are very important to UK pensioners. Will the Minister therefore explain why, following last week’s uprating statement, 1.6 million pensioners will see their state pension income rise by just 87p?

[Steve Webb]

I am surprised that the hon. Gentleman did not raise this point last Thursday when I made an oral statement on this issue; perhaps he heard about it on “Money Box” on Saturday. As he knows, not all pensioners receive the full rate of the state pension. Many people—many women, particularly older women—receive a reduced rate, and, as has always been the case, the increase is proportionate to the rate of pension they receive. They get the same percentage increase; it is lower if they get a lower pension.

[Simon Kirby (Brighton, Kemptown) (Con)]

4. What steps he has taken to increase support for heads of households in the workplace.

--- Later in debate ---

[Sandra Osborne (Ayr, Carrick and Cumnock) (Lab)]

17. What steps he plans to take to support older people experiencing long-term unemployment.

[The Minister for Pensions (Steve Webb)]

We have taken a range of steps. Most recently, in last week’s autumn statement, we announced a new pilot that will test how we support older claimants to help them return to work. It will benefit 3,000 older claimants whose age is a barrier to their finding work.

[Sandra Osborne]

Why does the Work programme fail the over-50s so badly, and why has it taken the Government more than three years even to begin to do anything about that?

[Steve Webb]

On the contrary, the labour market performance of older workers has been among the best during the last four years. During a period of slow economic growth, older workers actually did the best. Nevertheless, we are not complacent, hence the new pilots that I announced last week.

[Stella Creasy (Walthamstow) (Lab/Co-op)]

18. What steps he is taking to ensure that child maintenance is paid to parents with care in separated families.

[The Minister for Pensions (Steve Webb)]

When possible, our child maintenance options service and the £14 million investment in better support services help families to reach their own family-based arrangements in the best interests of their children. When that is not possible, the 2012 statutory scheme provides a more efficient service, including swifter action against the minority of parents who do not pay in full and on time.

[Stella Creasy]

The Government’s system is predicated on the idea that, on the whole, parents can negotiate, but we know that that is simply not possible for some families. What is the Department doing to ensure that women who have experienced domestic violence are aware of the application fee exemption, and what evidence has he that women who are unaware of it are not being deterred from applying for child maintenance?

[Steve Webb]

I discussed this issue with my officials recently. We will publish the figures shortly, but we know that a significant proportion of women are applying successfully for the domestic violence exemption from the £20 fee. We have made the rules relating to access to the exemption as relaxed as possible, and the domestic violence charities with which we have worked believe that we have drawn the right definition for the purpose.

[Steve Baker (Wycombe) (Con)]

20. What steps he has taken to help small businesses prepare for automatic enrolment.

[The Minister for Pensions (Steve Webb)]

We have deferred the date by which small businesses must be automatically enrolled, and have made a number of other changes to ensure that the system works best for them.

[Steve Baker]

When the time does come, how are the very smallest firms to choose a suitable pension scheme?

[Steve Webb]

When the Pensions Regulator notifies employers of their automatic enrolment duties, that letter flags the National Employment Savings Trust, which was designed with small businesses in particular in mind, but the regulator is considering putting more information on its website about other potential providers. I shall be hosting an event in the House for all Members to help them to support small businesses in their constituencies.

[Rehman Chishti (Gillingham and Rainham) (Con)]

T2. If he will make a statement on his departmental responsibilities.

--- Later in debate ---

[Mr Jim Cunningham (Coventry South) (Lab)]

T6. Her Majesty’s Revenue and Customs is sending letters to taxpayers detailing how their tax revenues are being allocated. This is being done in the name of transparency, but will the Minister tell his colleagues in the Treasury that teachers’ pensions are not welfare?

[The Minister for Pensions (Steve Webb)]

As the hon. Gentleman appreciates, the letters are sent by HMRC on behalf of the Treasury, and he is welcome to address his concern to our colleagues there. However, we clearly appreciate that there is a distinction between social security benefits and pensions paid to public servants in retirement.

[Jenny Willott (Cardiff Central) (LD)]

T9. We have heard today about the use of food banks, and the right hon. Member for East Ham (Stephen Timms) mentioned a recent report from the Church of England, the Child Poverty Action Group, Oxfam and the Trussell Trust that highlighted the problems that arise when those who have been sanctioned lose all their benefits, including housing benefit. I understand that the Department for Work and Pensions is working on a fix to prevent housing benefit from being stopped when a claimant is sanctioned, but while that is being worked on, will the Minister consider sanctioning all but, say, 10p of jobseeker’s allowance or employment and support allowance now so that other benefits are not automatically cancelled and claimants do not need to use a food bank and end up in rent arrears while they are being sanctioned?