Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, with reference to the Work and Pensions Select Committee report entitled Defined benefit pension schemes, published on 26 March 2024, HC 144, whether her Department plans to implement pre-1997 indexation for members of the (a) Financial Assistance Scheme and (b) Pension Protection Fund.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
The PPF and FAS rules on indexation have been the subject of much discussion. I am aware of the concerns surrounding the matter and understand the problems experienced by Defined Benefit pension scheme members adjusting to an income in retirement which may be less than they were expecting. I will continue to consider this issue, and the valuable report referred to (by the Work and Pensions Select Committee) and will respond fully to its recommendations in the coming months.
Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what steps she is taking to help tackle poverty experienced by older people, in the context of changes to the eligibility criteria for the winter fuel payment.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
The Government is honouring our commitment to the Triple Lock with a 4.1% increase to the basic State Pension and the new State Pension; and we are also increasing the standard minimum guarantee in Pension Credit by 4.1%. As such, according to the latest OBR projections, the full yearly rate of the new State Pension is forecast to increase by around £1,900 over the course of this parliament whilst the full yearly amount of the basic State Pension is forecast to increase by around £1,500.
The Government also offers an array of support to ensure pensioners remain comfortable and safe in the winter months. This includes direct financial help to low-income pensioners through Pension Credit, Cold Weather Payments and the Warm Home Discount (in England & Wales).
We know there are low-income pensioners who aren’t claiming Pension Credit. We want to ensure as many people as possible have access to this support and urge pensioners to check their eligibility. Pension Credit will passport them to receive Winter Fuel Payments in future, alongside other benefits – hundreds of pounds that could really help them. Our take-up campaign has been successful in boosting applications by 145% since July.
The Warm Home Discount scheme provides eligible low-income households across Great Britain with a £150 rebate on their winter energy bill. This winter, we expect over 3 million households, including over 1 million pensioners, to benefit under the scheme.
The Government and industry have worked together to deliver a £500 million Winter Support Commitment for customers, which will help customers most in need by providing credit on bills, enhanced debt write-off schemes, and increased funding for charity partners to target hard to reach customers.
Low-income pensioners and others struggling with the cost of living should contact their local council to see what support may be available to them, as they may be able to receive support from the Household Support Fund, Council Tax Reduction, or through energy support programmes such as the Homes Upgrade Grant and Energy Company Obligation.
We are also supporting consumers, including pensioners, through the Government’s ambitious Warm Homes Plan – which will transform homes across the country, making them cleaner and cheaper to run. We've committed £3.4 billion over the next 3 years towards heat decarbonisation and household energy efficiency. This includes £1.8 billion to support fuel poverty schemes, helping over 225,000 households reduce their energy bills by over £200.
Keeping people warm and well at home and improving the quality of new and existing homes will play an essential part in enabling people to live longer, healthier lives and reducing pressures on the NHS.
The difficult decisions we have made, such as targeting the Winter Fuel Payment, mean the Government is able to provide additional investment in the NHS, which benefits everyone including all pensioners who rely on these services. We have committed to returning NHS waiting times – including those for A&E and ambulances - to the standards set out in the NHS constitution that patients rightly expect.
Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, if she will make an assessment of the potential impact of Universal Credit rules for young people living in supported housing on their ability to find work.
Answered by Stephen Timms - Minister of State (Department for Work and Pensions)
People on a low income living in supported housing, can claim Universal Credit for help with their daily living costs and Housing Benefit for help with their housing costs. Customers living in supported housing are also able to access more housing support through Housing Benefit due to an exemption from the Benefit Cap.
The income taper in Housing Benefit ensures people in work are better off than someone wholly reliant on benefits. In addition to any financial advantage, there are important non-financial benefits of working. These benefits include learning new skills, improved confidence and independence as well as a positive effect on an individual's mental and physical health.
Notwithstanding these positive outcomes from work, the department acknowledges there is a challenge presented by the interaction between Universal Credit and Housing Benefit for those residing in Supported Housing and receiving their housing support through Housing Benefit and will consider the issue carefully in partnership with stakeholders.
Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what recent discussions her Department has had with stakeholders on the future of the two child limit.
Answered by Stephen Timms - Minister of State (Department for Work and Pensions)
Ministers meet regularly with stakeholders to discuss a broad range of topics relating to Universal Credit. Delivering our manifesto commitment to tackle child poverty is an urgent priority for this Government, and the Ministerial Taskforce is working to publish the child poverty strategy in the Spring. As set out in ‘Tackling Child Poverty: Developing our Strategy’, published on 23 October, the Taskforce will be harnessing all available levers across four key themes, including increasing incomes, to deliver a reduction in child poverty this Parliament. As part of this work, the Taskforce will hear directly from experts on each of the Strategy’s themes including children and families living in poverty and work with leading organisations, charities, and campaigners.
Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, if she will make an assessment of the potential merits of reducing the number of hours of care per week required to qualify for Carer's Allowance.
Answered by Stephen Timms - Minister of State (Department for Work and Pensions)
It is a long-standing principle, under successive Governments, since Carer’s Allowance was introduced, that the threshold for the number of hours spent caring is 35 hours a week.
Unpaid carers play a vital role in supporting elderly or disabled relatives or friends. Sometimes unpaid carers will need to turn to the benefit system for financial support, so it is right that we keep Carer’s Allowance under review, to see if it is meeting its objectives, and giving unpaid carers the help and support they need and deserve.
Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, if she will make an assessment of the potential merits of paying carers at national living wage rates.
Answered by Stephen Timms - Minister of State (Department for Work and Pensions)
Many people will care for friends or family members at some point in their life, and it is right that we recognise the vitally important role of unpaid carers. That is why we are expecting to spend around £4.2 billion this year to support them through Carer’s Allowance.
The principal purpose of Carer's Allowance is to provide a measure of financial support and recognition for people who are not able to work full-time because of their caring responsibilities. It was never intended to be a carer's wage nor a payment for the services of caring and is, therefore, not comparable with the National Living Wage.
The Secretary of State undertakes a statutory annual review of benefit and pensions, and the level of Carer’s Allowance is protected by Up-rating it each year in line with the Consumer Prices Index (CPI).
In addition to Carer’s Allowance, carers on low incomes can claim income-related benefits, such as Universal Credit and Pension Credit. These benefits can be paid to carers at a higher rate than those without caring responsibilities through the carer element and the additional amount for carers respectively.
Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, if she will make an assessment of the potential merits of extending eligibility for Carer's Allowance to carers in full-time education.
Answered by Stephen Timms - Minister of State (Department for Work and Pensions)
This Government recognises and appreciates the vital contribution made by all unpaid carers.
We think it is right that people in full-time education should be supported by the educational maintenance system, rather than the social security benefit system. That is why, as a general principle, full-time students are usually precluded from entitlement to income-related and income-maintenance benefits, including Carer’s Allowance. Part-time students may be able to claim Carer’s Allowance though. This reflects long-standing principles of the benefit system, and we have no plans to change these rules.
Department for Work and Pensions officials work very closely with their Department for Education and Department of Health and Social Care counterparts to ensure that young carers get the help and support they need. I will also be meeting the Carers Trust and the Learning and Work Institute to discuss these issues.
Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, if she will make an assessment of the potential merits of (a) increasing the carer's allowance and (b) introducing a taper to ensure unpaid carers are not subject to any removal of benefits.
Answered by Stephen Timms - Minister of State (Department for Work and Pensions)
The Secretary of State undertakes a statutory annual review of benefit and pensions, and the value of Carer’s Allowance is protected by up-rating it each year in line with the Consumer Prices Index (CPI).
This Government will keep eligibility criteria and processes of Carer’s Allowance under review, to see if it is meeting its objectives.
Introducing a taper in Carer’s Allowance would significantly complicate the benefit with awards having to be manually adjusted on a weekly basis for some recipients declaring earnings. This would add to administrative costs and potentially increase fraud and error. Those also receiving Universal Credit would need to have that adjusted if their payment of Carer’s Allowance changed because of an earnings taper rate.
A taper could therefore only be introduced following significant changes to the IT system that supports payment of Carer’s Allowance.
Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, if her Department will make an assessment of the potential impact of the two-child limit in Universal Credit on affected families' long-term (a) health, (b) social and (c) economic outcomes.
Answered by Stephen Timms - Minister of State (Department for Work and Pensions)
There are no plans to make such an assessment.
The Child Poverty Taskforce will explore how we can harness all available levers to reduce child poverty, including by listening to stakeholders on potential changes, before publishing a strategy in Spring 2025.
Asked by: Victoria Collins (Liberal Democrat - Harpenden and Berkhamsted)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what assessment she has made of the potential implications for her policies of the report by the Parliamentary and Health Service Ombudsman entitled Women’s State Pension age: our findings on injustice and associated issues, published on 21 March 2024, HC 638; and what steps she plans to take after meeting with the WASPI campaign on 5 September 2024.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
We will need time to review and consider the Ombudsman’s report along with the evidence provided during the investigation.
We need to consider the views that have been expressed on all sides including the points raised by representatives from the WASPI Campaign who I met on the 5th September.
Once this work has been undertaken, the Government will be in a position to outline its approach.