Diplomatic Missions: Congestion Charge
Lord Forsyth of Drumlean Excerpts(1 week, 2 days ago)
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Lord Ahmad of Wimbledon (Con)
I thank the noble Baroness for her kind remarks, which reflect the best of your Lordships’ House. As we have often said, we have differences, but it is important that we recognise the value, wisdom and indeed wit that many noble Lords bring to our discussions. I pay tribute to all who have served in government over the last few years, particularly, in the current Session, to my noble friend the Leader of the Lords and the Chief Whip, who in the last 12 hours, has had to put together a very extensive agenda. It is a team effort; I thank the noble Baroness and, in doing so, pay tribute to her Front Bench, particularly the noble Lord, Lord Collins, for his strong support and to the noble Lord, Lord Newby, and his Front Bench, particularly to the noble Baroness, Lady Northover, and to the Cross Benches, of course. I am thinking of names, which is always dangerous once you embark on that particular avenue, but everyone has played an important part. I remember talking with the late Lord Judge about a particular Bill that I was taking through. He said, in his quiet way, “Tariq, you know what I think. You’ll do the right thing”—and, hopefully, in some of what I have done, I have managed to achieve that goal.
Lord Forsyth of Drumlean (Con)
My Lords, I say to my noble friend that the whole House hugely appreciates the service he has given and, at the risk of embarrassment to him, all of it has been as an unpaid Minister in this House. In the coming days, when people come up and complain about this House, they should look to his example and the examples of so many others who have served this country so well.
Lord Ahmad of Wimbledon (Con)
I thank my noble friend for those very kind remarks; his kindness is always well respected and well received. It demonstrates again, as I look around our Benches and pay tribute to noble Lords across the House, our strengths and that public service is about how we stand up. Often, we are challenged and criticised as an appointed Chamber, but there are many shining examples of what public service and public duty are, and they are found right here in your Lordships’ House.
Forest Risk Commodity Regulations
Lord Forsyth of Drumlean Excerpts(2 months, 3 weeks ago)
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Lord Benyon (Con)
I will write to the noble Baroness about Drax, because it is a very complicated issue. It fits into the UK’s net zero balance sheet in terms of what Canada is doing, where the woodchip comes from. I want to be absolutely right in my answer, so I will write to her.
Lord Forsyth of Drumlean (Con)
My Lords, further to the question from the noble Baroness, I entirely agree with her. What are the Government doing spending hundreds of millions of pounds in subsidies to Drax in order to have trees cut down in America and then brought across the Atlantic? All of this is because somebody has designated “burning wood” as ticking the box for “saving the planet”, which it clearly is not.
Lord Benyon (Con)
Biomass is a perfectly legitimate renewable energy source if the wood that is being used is a renewable and sustainable harvest. My noble friend and the noble Baroness are absolutely right that if the wrong sort of timber is used and being shipped to this country at huge carbon cost, taxpayers, shareholders and investors need to know the precise and genuine cost to our net zero commitments that that poses.
UN: Individuals Displaced by Conflict
Lord Forsyth of Drumlean Excerpts(1 year, 1 month ago)
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Lord Goldsmith of Richmond Park (Con)
I draw the noble Lord’s attention to the Integrated Review Refresh and the international development strategy, both of which were published recently, in which we reiterated our commitment to championing international humanitarian law. We are focused on protecting those most at risk, including from gender-based violence, and on barriers to accessing humanitarian assistance. We work closely with the UN humanitarian agencies, the UN General Assembly and the UN Security Council to promote compliance with international law, and will continue to do so.
Lord Forsyth of Drumlean (Con)
My Lords, given the atrocities being committed in Ukraine, can it be right that the presidency of the Security Council is held by the Russians?
Lord Goldsmith of Richmond Park (Con)
The noble Lord makes an important and valid point.
Her Late Majesty Queen Elizabeth II
Lord Forsyth of Drumlean Excerpts(1 year, 8 months ago)
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Lord Forsyth of Drumlean (Con)
My Lords, I begin by congratulating my noble friend Lady Williams on her appointment as Chief Whip. I am very sad that her first duties should be in connection with this sad news, but we look forward to great things from her.
My Lords, I am lost for words. Having listened to the fantastic tribute made by the new Leader of the House—what a tremendous 24 or 48 hours he has had—and to those from the Leader of the Opposition, the noble Baroness, Lady Smith, from the noble Lord, Lord Newby, from the noble and learned Lord, Lord Judge, on the Cross Benches, and in particular the contribution of the most reverend Primate the Archbishop of Canterbury. There is very little I can say that is new to encapsulate what we are all feeling at this present time. However, I would like to express and extend my sympathy to His Majesty the King and members of the Royal Family on this day of great sadness but also thankfulness.
I do not know if I am alone in experiencing feelings of bereavement and sadness that quite took me by surprise yesterday evening. I found myself hugely emotional, and I think many people in the country felt the same, on hearing the dreadful news. I think we all secretly hoped that the Queen would go on forever—a view that was expressed by the noble Lord, Lord Newby, and by the noble and learned Lord, Lord Judge, earlier. However, I would like to concentrate on the thankfulness rather than the sadness: thankfulness for the example, the dedication, the stability, the love and the leadership that Queen Elizabeth gave to our country and the Commonwealth. As we heard today, the thousands of tributes from every corner of the globe talk of duty, dignity, humility, integrity, humanity, compassion, kindness and faith, which were indeed the hallmarks of our late Queen and shone brightly in everything she did.
As Secretary of State for Scotland I was privileged to spend some time with her, and in Royal Week, where my role was basically to follow behind carrying the handbag, almost, I was privileged to spend some time with her and to see these qualities and her sense of humour at first hand. Her love of Scotland and her dedication to the United Kingdom—our United Kingdom—are well known, and it is a real blessing that she was able to die in her own bed in her beloved Balmoral in Scotland, having carried out her duties right to the end.
In the many millions of words written about her in the last 24 hours all over the world, many folk will have commented on how she could have shown these astonishing qualities so consistently over so many years and carried that great burden of office and responsibilities without putting a foot wrong. I believe, as the most reverend Primate indicated in his remarks, that the key to answering that question lies in her Christian faith and a life lived following the teachings of Jesus Christ. May God bless her and may she rest in peace.
Gender Pensions Gap
Lord Forsyth of Drumlean Excerpts(1 year, 11 months ago)
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Baroness Stedman-Scott (Con)
In relation to the point that many noble Lords have made about the time women have out of the workplace, I have outlined national insurance credits. In terms of the specifics that the Government are doing, I will need to write to the noble Baroness because I am not fully up to date on them.
Lord Forsyth of Drumlean (Con)
My Lords, would my noble friend like to remind the House that pensions are not provided for by any fund and come out of taxation? The fact that the Government have been able to increase the pension by the rate of inflation as from September is to their enormous credit. It is an enormous bill and the Government cannot do everything.
Baroness Stedman-Scott (Con)
I completely agree that the Government cannot do everything. It just is not possible. The triple lock is being restored for the rest of the Parliament and I think that, in the circumstances we are in, the Government have done a fine job on that.
Senior Citizens: Means-tested Benefits
Lord Forsyth of Drumlean Excerpts(2 years ago)
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Baroness Stedman-Scott (Con)
On pension credit take-up, the noble Baroness has made interesting and accurate points. We have this campaign. The Minister for Pensions is working with the BBC, other media outlets, GP surgeries, post offices and so on. It is our job to make sure that people are aware of the benefits of pension credit and to encourage take-up, but there is only so much we can do in that way. We really believe that families could be helping relatives entitled to pension credit to claim it.
Lord Forsyth of Drumlean (Con)
My Lords, further to the answer my noble friend gave earlier, when will the triple lock be restored?
Baroness Stedman-Scott (Con)
When the benefit uprating comes, based on the September figures for that year, the triple lock will be restored.
Social Security System: Rising Cost of Living
Lord Forsyth of Drumlean Excerpts(2 years ago)
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Baroness Stedman-Scott (Con)
I thank the noble Baroness for her contribution. I will reiterate what the Chancellor said:
“We stand ready to do more as the situation evolves.”
Child benefit does not sit with the DWP, but I will find the person it does sit with and pass on the noble Baroness’s message.
Lord Forsyth of Drumlean (Con)
My Lords, would my noble friend help me with a problem I have? Could she explain why it was appropriate to increase universal credit by £20 a week during the Covid epidemic but not now, when people are faced with exponential increases in their food and energy bills? Will she tell the Chancellor that we cannot wait—we need the money now? He got enormous credit for what he did during Covid, but the need is greater and the Government need to act.
Baroness Stedman-Scott (Con)
I assure my noble friend and the whole House that the Chancellor does understand and is working hard on the issue that many noble Lords have raised today. I can tell my noble friend and others who are impatient to get something going—I do not mean that lightly—that the £20 uplift was a success but it was a temporary measure, and I honestly cannot make any promises that it might be reintroduced.
Universal Credit (EAC Report)
Lord Forsyth of Drumlean Excerpts(2 years, 2 months ago)
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Lord Forsyth of Drumlean
That the Grand Committee takes note of the Report from the Economic Affairs Committee Universal Credit isn’t working: proposals for reform (2nd Report, Session 2019–21, HL Paper 105).
Lord Forsyth of Drumlean (Con)
My Lords, I rise to introduce the Economic Affairs Committee report Universal Credit isn’t working. In the first paragraph of their response to the report, the Government say that they are
“surprised by several of the Committee’s observations with regard to Universal Credit … In particular, in contrast to the title of the report, the effectiveness of UC as a comprehensive benefits system has been admirably demonstrated in response to the pandemic.”
I pay tribute to the department for the way in which it dealt with the Covid outbreak and the speed with which it was able to put people on universal credit, but I have to say that the rest of the response from the Government shows that they are remarkably tin-eared.
In introducing the report, I begin by thanking our outstanding clerk Adrian Hitchins and our policy analyst Will Harvey for the splendid support that they gave to the committee to enable us to produce this report, which at long last has been given time to be debated. So much time has passed that I am no longer the chairman of the committee, but we have an excellent new chairman in the noble Lord, Lord Bridges, from whom I am looking forward to hearing later in the debate.
When the Government announced plans to introduce universal credit in 2010, the scale of their ambition was largely greeted with approval in Parliament and among commentators. However, support seeped away as universal credit was rolled out. The way that universal credit has been designed and implemented appears to be based around a kind of idealised claimant and it has features that are harming many of the most vulnerable people in our country. It is certainly linked to the exponential growth in food banks and it is probably also linked—although rent rises are a feature—to the dramatic increase in rent arrears. Many claimants reported to our committee that they find the system incomprehensible. Overall, it is fair to say that universal credit’s reputation has nosedived.
The Government’s response indicated that they were surprised by the title of the report, as I said. A couple of recommendations were accepted, although one of them was actually rejected and has now been accepted. Indeed, this very afternoon, the Government have been taking credit for reducing the taper for universal credit, which is a welcome measure. Nevertheless, during our inquiry, which was completed in July 2021, most witnesses thought that universal credit should not be abolished because of the severe disruption that this would cause for millions of people and thought instead that substantial reform was required in order to make it fit for purpose.
Change cannot come soon enough as far as I am concerned. The country is facing a major assault on living standards as a result of soaring inflation, tax increases, rising mortgage costs and savage fuel and energy price increases. The Chancellor’s decision to cut universal credit by £20 a week at this moment is simply indefensible. Conservatives believe in securing a safety net below which no one can fall and it is hard to see how millions of families in this country will manage in the months ahead. The conflict in Ukraine is forecast to put up energy and food prices substantially. Inflation is expected to rise to 8% this spring and perhaps even higher later in the year according to the Bank of England, which has consistently underestimated the rate of inflation and the impact of its policies of quantitative easing.
Of course, the basket of items used to calibrate CPI inflation does not begin to measure the actual inflation that many of the poorest families in the country experience. Scandalously, many of these very poor families have higher electricity charges through pre-paid meters. Benefits are due to rise by 3%, resulting in a substantial real-terms cut to income as essential bills escalate. Since our report was published, the Government have increased the work allowance and reduced the taper rate, as I have alluded to, to ensure that working universal credit claimants can keep more of their earnings. This is very welcome, especially since it supports the original purpose of universal credit to incentivise work. It still means that some of the lowest-paid people in the land are facing an effective marginal rate of tax of 55%—I note that the Chancellor has started to call the reduction of the taper rate a “tax cut” but, if it is a tax cut, it is an effective marginal rate of tax of 55%. That is 10% higher than people earning over £150,000 in taxable income. As if things were not tough enough, deductions from universal credit awards have left some claimants with an income that is substantially lower than their essential needs. Surely the DWP should be required to conduct affordability assessments before making deductions from awards.
Scandalously, universal credit is being used by the Government as a vehicle through which to recover debt. Most of this is comprised of around £6 billion of historic tax credit debt. Many people who owe this money are unaware of it. Certainly, the original receipt of an overpayment may have been outside of their control. The recovery of the money is leaving many households with an income that is well below what is needed to get by on, even before the current cost of living crisis. We called on the Government to write off historic tax credit debt that is owed by universal credit claimants. It should be treated as a sunk cost. Who really believes that this money is ever going to be repaid? Why create so much misery and anxiety among people who are extremely vulnerable in many cases?
The five-week wait for the first universal credit payment is the main cause of insecurity for claimants. Many people have nothing on which to fall back during this period, when their needs are most acute. The wait entrenches debt, increases extreme poverty and harms vulnerable groups disproportionately. The Department for Work and Pensions has introduced some measures to mitigate the most harmful effects, but these fall well short of what is needed. In the view of the committee, the DWP should introduce a non-repayable, two-week initial grant for all claimants. This would provide some security to claimants, mitigating the timing problems in relation to housing costs, and would make repayments of advances more manageable.
The way in which universal credit payments are calculated is based on a monthly assessment period and is designed to mimic the world of work. I ask the Committee: on which planet are these people living? Most people about whom we are concerned here are not used to be being paid on a monthly basis with index-linked pension plans, like the civil servants who have produced this scheme. However, it can result in substantial fluctuations in income month to month, which makes it extremely difficult for claimants to budget. This is impractical and fundamentally unfair and it should be resolved. We recommend that the DWP fixes the level of awards at the same level for three months. If claimants experience significant falls in income or disadvantageous changes in circumstances during this time, a mechanism should be introduced to enable them to have an early reassessment.
Paying awards on a monthly basis does not reflect the lived experiences of many claimants. It forces them to fit the rigid requirements of the system and causes unnecessary budget and cash-flow problems, both for those out of work and for those who are used to receiving wages more frequently. All claimants should be able to choose whether to have universal credit paid monthly or twice monthly.
Moreover, the way universal credit is paid as a single household payment should be revisited. Access to an individual income is important for maintaining balanced and equal relationships and, in more distressing cases, for reducing the risk of financial coercion and even domestic abuse. The DWP should review the option of a separate payment by default, drawing on the review carried out, I am pleased to say, in Scotland.
The conditionality requirements on claimants who can look for or prepare for work should be rebalanced. The extent of conditionality has increased significantly over recent years, too often to the detriment of claimants. Less emphasis should be placed on obligations and sanctions. Instead, there should be more support to help coach and train claimants to find jobs or to progress in their current roles.
The UK has some of the most punitive sanctions in the world, but there is very little evidence that they have a positive effect. Removing people’s main source of support for extended periods risks pushing them into extreme poverty, indebtedness and reliance on food banks. Furthermore, there is a great deal of evidence that sanctions, and the threat of sanctions, are harmful to claimants’ mental health.
We recommend that the Government publish an evaluation of the impact of conditionality and sanctions on mental health and well-being. Furthermore, we recommend that the DWP evaluates how the current length and level of sanctions facilitate positive behaviour change and how they lead to sustainable work outcomes. The DWP should also expedite its work on introducing a written warning system before the application of a sanction. Sanctions should always be a last resort.
Our report was an appeal for the Government to act now. That was in July; it is now even more important. Universal credit needs an immediate increase in funding to match the cost of living crisis, reform in its design and implementation, and improved support for claimants to find and prepare for work.
In his Mais lecture last month, the Chancellor quoted the opening paragraph of Adam Smith’s Theory of Moral Sentiments, which I am sure everyone in the Committee will have read. I will remind them of what it says:
“How selfish soever man may be supposed, there are evidently some principles in his nature, which interest him in the fortune of others, and render their happiness necessary to him, though he derives nothing from it except the pleasure of seeing it. Of this kind is pity or compassion, the emotion which we feel for the misery of others, when we either see it, or are made to conceive it in a very lively manner.”
In the difficult months ahead, may these words be his guiding light. I beg to move.
Lord Forsyth of Drumlean (Con)
My Lords, this is an unusual experience for me, because I have not found anyone to disagree with. On the fact that this committee is so much in agreement, on 9 March 2021, we did something rather unusual: we had a joint meeting of the Economic Affairs Committee and the House of Commons Select Committee concerned with these matters. We were unanimous in our view, and we took evidence from Mr Couling and the then Minister, Will Quince MP. There was universal agreement, except with Mr Couling, who thought that we were interfering with his perfect system. I think he said that making any changes would make it even more complicated and that he had devised a system which he thought would be around for generations to come. It is a classic example of coming up with a perfect system that everyone has to fit into and then ignoring the problems that occur.
I pay tribute to my noble friend the Minister. She does a fantastic job, and we all know that she is very well aware, from her own background, experience and the care with which she does her ministerial job, of the kinds of problems that arise. We know that the real problem here is the Treasury.
Lord Forsyth of Drumlean (Con)
That reminds me of something from my noble friend Lord Dobbs: “You may say that, but I couldn’t possibly comment”.
I very much appreciate the way in which the Minister responded to the debate, but I know that the noble Baroness, Lady Taylor, has been very patiently waiting to get on with the debate on the excellent Constitution Committee report, so I just thank everyone who has participated. Let us hope that the urgency and severity of the situation means that Mr Couling, the Secretary of State and the Treasury will mend their ways. I beg to move.
Women: Cost of Living
Lord Forsyth of Drumlean Excerpts(2 years, 2 months ago)
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Baroness Stedman-Scott (Con)
I understand the passion with which the noble Baroness makes her points. All I can say, and I have said it time and again, is that I will take the representation back to the department and make it known, but I am not able to give the response.
Lord Forsyth of Drumlean (Con)
Will my noble friend look again at the report of the Economic Affairs Committee on universal credit and in particular reconsider the decision to take away £20 a week from the poorest families in the country? I understand that it is very expensive—it costs £6 billion—but that is because it affects 6 million people: 6 million people who are going to have to cope with these astonishing increases in bills, not just energy bills but bills across the piece. Surely, in the name of humanity if not in the interest of politics, we should look at this again, given that the Chancellor is getting increased revenue from the rising costs of petrol and other energy sources.
Baroness Stedman-Scott (Con)
Many noble Lords have made the point about the £20 uplift. To be absolutely straightforward and open, there is nothing I can say about it, other than that for those on universal credit the taper rate compensated for some of the withdrawal. There are moments when I wish I was Chancellor.
State Pension Underpayments and Arrears for Women
Lord Forsyth of Drumlean Excerpts(2 years, 3 months ago)
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Baroness Stedman-Scott (Con)
The noble Baroness makes a very good point. All I can say at the moment is that the Government do not have any plans to change. However, I will take the point back to the department, because it is a very fair one.
Lord Forsyth of Drumlean (Con)
My Lords, should my noble friend not be taking the point back to the Treasury? Is this not an example of the Government hiding behind the skirts of local government? The Government provide guidance to local authorities; why can they not provide guidance saying that they should disregard these payments?
Baroness Stedman-Scott (Con)
I am very happy to take the point back to the Treasury, although I would not hold my breath—I will probably get told off for saying that. But again, I will take the point back to the department. My noble friend has made the point very clearly, as has the noble Baroness.