Cost of Living Increases: Pensioners
Debate between Thérèse Coffey and Emma Hardy(2 years, 1 month ago)
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Emma Hardy (Kingston upon Hull West and Hessle) (Lab)
Will the Secretary of State give way?
Dr Coffey
No, I will not.
The extra support is on top of a range of existing help for pensioners, including: winter fuel payments, which support over 11 million pensioners’ energy bills and is worth about £2 billion every year; cold weather payments, ensuring pensioners in need keep warm during the colder months; and the warm home discount, which we are extending until 2026, including expanding it to more recipients of pension credit, namely those who receive the savings credit element and live in a home with high energy costs. I am conscious that the warm home discount is a spreading of support towards people in this vulnerable cohort, but nevertheless it is thanks to Government intervention that that is the case. As a result, the number of households benefiting from the warm home discount will increase by almost a third, to 3 million—up from nearly 1 million at the moment—with the vast majority getting their payment automatically with no need to apply. Together, I think that will be welcomed by many people, recognising the extra support that people who are not currently eligible today will receive later this year.
Emma Hardy
I want to raise a point about prepayment meters. A written question to the Department for Business, Energy and Industrial Strategy—admittedly, this Secretary of State represents a different Department—asked how people on prepayment meters would receive the £200 discount, many of whom happen to be pensioners. The answer, given on 25 February, was:
“BEIS will consult in the spring.”
It seems that the Government do not have a plan for how to refund the money to those on prepayment meters, but I hope that the Secretary of State can update us.
Dr Coffey
The hon. Lady asks a valid question. As I have said to the House before, tackling the cost of living and poverty more broadly is shared across Government. Although that may come under our umbrella—recognising our general role in support through the welfare system—my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy leads particularly on items to do with energy and fuel poverty more broadly. I will ask him to contact her.
That leads me on to pension credit, which has been highlighted as a passport to a range of other benefits, including free TV licences, help with council tax and NHS dental treatment. Together, those are making a real difference, reflecting the Government’s commitment to supporting pensioners and continuing the work of successive Governments since 2010—when the Conservatives took office—to tackle and alleviate pensioner poverty.
The facts speak for themselves. The latest figures show that 200,000 fewer pensioners are in absolute poverty than in 2010, with levels of material deprivation having fallen from 10% to 6%, a record low. It is because of our commitment over that time and policies such as the triple lock that, from next month, the full yearly basic state pension will be more than £2,300 higher in cash terms than it was in 2010. In fact, no Government have paid more to pensioners than we will this year: £105 billion alone through the state pension. When we include all the other pensioner benefits, that rises to £129 billion a year.
Our aim over the two years of the pandemic has been to give fairness to pensioners and taxpayers, recognising what has happened with covid. For 2021-22, we protected the value of the state pension by legislating to secure and increase the state pension by 2.5%, despite a decline in earnings and inflation rising by just 0.5%. Had we not acted, the state pension, by law, would have remained frozen. Again, through the Social Security (Up-rating of Benefits) Act 2021, which Parliament passed last November, we legislated to temporarily suspend the earnings part of the triple lock in 2022-23 for one year. As I outlined at the time, that was in response to exceptional circumstances caused by the distorting effects of the pandemic on the earnings statistics.
Pensions will still rise by 3.1% next month. That reflects the inflation index that has been used consistently for many years, so over the past two years, pensions will have risen by a total of 5.6%. Next year, we will return to implementing the triple lock in the usual way for the remainder of the Parliament. I reinforce that full commitment, and whatever the right hon. Member for Leicester South may suggest—he may be trying to score points on politics, which, as the shadow Secretary of State he is absolutely entitled to do—I want to make sure that he avoids scaremongering.
Dr Coffey
The hon. Lady raises a valid point. I know that we have had paid advertising in post offices and in GPs’ waiting areas in the past; doctors often tell us that they do not necessarily like to be attached to benefit claiming and similar matters, but I hear what the hon. Lady says, and my understanding is that we intend to resume that contact. I have also asked the leading pharmacy chains to be involved, because that is often a more regular way in which people get help. We will try different outlets, in addition to those we have tried in the past, to make people more aware of the potential opportunities.
Dr Coffey
The hon. Lady has already made one intervention, and I want to make some progress.
The right hon. Member for Leicester South asked about issues relating to state pension underpayment. I give credit to my hon. Friend the pensions Minister, who has rolled up his sleeves and really got stuck in. We have 500 people working on the state payment exercise, and before the end of the year we are aiming to have up to 1,500 people getting on with it. There will be an update after the fiscal statement; we have always said that we would give updates more or less in line with it, so the right hon. Member for Leicester South will have to be slightly patient. This issue has been going on for some considerable time. There was an element of shambles in previous Administrations, which was not helped by the 2008 reforms. I respect the former Minister Steve Webb, but he did not find this element at all in his five years as pensions Minister—not even when he was going through the whole process of creating a brand-new state pension. We are getting on with this element, which was not discovered until recently, and we will get on with the job and sort it out.
When we say that we are committed to tackling pension poverty, we mean it, and we have the track record to back it up. On Wednesday, it will have been two years since we took unprecedented action to lock down the country to protect lives. We invested in vaccines and subsequently rolled out the biggest and most successful vaccination programme in the history of the NHS, prioritising pensioners. Today, as we start inviting the over-75s to get their spring covid booster, we want to encourage pensioners to consider getting the boost to their income that pension credit could provide. With the wider range of financial and other support that we are providing, we are doing our best to help to ease the current cost of living squeeze.
We must unite as a House to get more pensioners to access the support that is available. While I am conscious that many people will think that there is more to do, we can do it only if all MPs in this House make a commitment to their pensioners—I look forward to their doing so—to continue to provide as much information as possible.
Covid-19: DWP Update
Debate between Thérèse Coffey and Emma Hardy(3 years, 11 months ago)
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Dr Coffey
Several of those groups of people who are seeking support may well be able to get support through universal credit. I am conscious that the design of the furlough scheme and the self-employed scheme does not address every single worker or self-employed person in this country. I know that the Treasury worked at pace to establish those schemes, and they do cover the vast majority of people who are now seeking support.
Emma Hardy (Kingston upon Hull West and Hessle) (Lab) [V]
Last week, I was contacted by a constituent who has a heart condition. He is also immobile because of a problem with his spine, and he has had a liver transplant. He applied for personal independence payments in October 2019 and has still not had a reply. When I contacted the DWP, I was told that, because of covid-19, there would be delays in responding to me, but that application was from October. I am sure the Secretary of State agrees that that is unacceptable, so what is she going to do to ensure that benefits are processed in a reasonable timeframe?
Dr Coffey
In the light of what has been happening, we have tried to streamline the process. I do not know the details of the individual case to which the hon. Lady refers, and I am sure that my hon. Friend the Minister for Disabled People, Health and Work would be happy to look into that situation. I do not know whether no assessment had been made at all or whether the outcome was being contested. I want to make sure that we are not ignoring situations and that new claims are still being processed, but I accept that there may be people we need to follow up on, and I would be happy for my hon. Friend to do that on the hon. Lady’s behalf.