Arcadia and Debenhams: Business Support and Job Retention

Suzanne Webb Excerpts

Wednesday 2nd December 2020 Commons Chamber

[Paul Scully]

I am grateful to the right hon. Gentleman for raising some really important points. On pension schemes and support for those facing redundancy, the majority of defined pension schemes are run effectively. We are fortunate to have a robust and flexible system of pension protection in the UK. The independent Pensions Regulator has a range of powers to protect pension schemes, and it works closely with those involved. For schemes where the employer goes insolvent, the Pension Protection Fund is there to help protect the members. Anybody already in receipt of a pension will continue to be paid, and other members will receive at least Pension Protection Fund compensation levels. The Pension Protection Fund is confident that its funding plan investment approach positions it well to weather the current market volatility and future challenges.

It would not be appropriate at this stage for Ministers to comment on individual cases, which are a matter for the regulator. However, in respect of staff facing possible redundancy, the Department for Work and Pensions’ rapid response service has been in ongoing conversations with Debenhams and has now been in contact with Arcadia. Both have been offered support by the rapid response service, including connecting people to jobs in the labour market, helping with job search—including CV writing, interview skills, where to find jobs and how to apply for them—helping to identify transferable skills and skills gaps linked to the local labour market and what benefits they may get and how to claim. I talked about the fact that we have doubled the number of workplace support staff in Jobcentre Plus. Clearly, knowing where the big stores are, for Debenhams in particular, we will be able to offer that sort of targeted support.

The right hon. Gentleman talked about his proposed changes to the Corporate Insolvency and Governance Bill. This was a matter of balance, because elevating pension debts, which can often be quite large, will by its very nature dilute the amount available to trade and credit suppliers, but also to other suppliers, including people with unpaid wages. It is trying to get that complexity and balance right.

Finally, the right hon. Gentleman talks about hospitality and support for other sectors. Clearly, the high street is an ecosystem—it is not only about shops and retail. We need to make sure that we do as much as we can to continue to wrap our arms around the economy at this particularly challenging time. As he acknowledges, there is light at the end of the tunnel, but we must not take our foot off the gas. We must remain alert, in terms of our own behaviours, as community members going up and down the high street, shopping local where we can to support retailers as they remain open, but also as a Government, making sure that we support the retail and hospitality sectors through both the support that I mentioned but also through encouraging them to be able to trade and remain open in all three tiers as best we can.

[Suzanne Webb (Stourbridge) (Con)]

I am sure the thoughts of the whole House will be with employees of Debenhams and Arcadia, who face huge uncertainty this week, particularly in the run-up to Christmas. These are long-standing bastions of the high street. However, both organisations have been struggling for quite some time; indeed, Debenhams has been in administration since January. While no redundancies have yet been announced, many of my constituents will be affected. Can my hon. Friend assure me that, if the worst were to happen, the Government are ready to support anyone affected, whether through jobcentres or universal credit?

[Paul Scully]

My hon. Friend is absolutely right. I know her constituents will be concerned about this. We are prepared to step up concentration within Jobcentre Plus. We will make sure there is support for people in finding jobs and for retaining as many jobs as possible on our high streets.