Oral Answers to Questions

Debate between Steve Webb and Andrew Jones

Monday 3rd November 2014 Commons Chamber

[Steve Webb]

The largest number of people who have benefited most from tax cuts during this Government are those who are in work and paying income tax. Under this Government, a typical basic rate taxpayer is £800 a year better off in cash terms as a result of our changes to the personal income tax allowance, and over 3.2 million individuals will have been taken out of income tax altogether.

[Andrew Jones (Harrogate and Knaresborough) (Con)]

Harrogate borough is part of the roll-out of universal credit, and the feedback from jobseekers and employers has been universally positive. Will the Minister explain a bit more about the benefits to the UK economy as a whole when this roll-out is completed?

[Steve Webb]

My hon. Friend is quite right that the early indications from those receiving universal credit have been positive, in line with the expectations of my right hon. Friend the Secretary of State. We are designing the system to be simpler for people and to make sure that when they take work, work pays. Already those on the front line who are working with unemployed people are welcoming the new freedoms universal credit gives them to support people back to work.

Quality Workplace Pensions

Debate between Steve Webb and Andrew Jones

Thursday 27th March 2014 Commons Chamber

[Steve Webb]

I am grateful to the hon. Gentleman. Our central interest in all this is the well-being and welfare of scheme members. We would not put transaction costs, for example, into a cap if we thought that might result in certain transactions that would benefit scheme members not taking place. On the other hand, if we thought that there was overtrading or that people’s money was being invested in a way that generated income that did not benefit them, we would need to take account of those issues. One of the challenges we face in making policy in this area is that so little is known about what is going on. Step one is therefore to get transparency so that we know the scale of what is going on and what sorts of charges there are out there, and then we can make an informed decision.

[Andrew Jones (Harrogate and Knaresborough) (Con)]

I warmly welcome the statement. Strong, quality workplace pensions are critical to dignity and security in old age. Who does the Minister think will be the big beneficiary of these changes?

[Steve Webb]

I am grateful to my hon. Friend. As I have said, we estimate that around £200 million over the next 10 years will go from the pensions industry to savers, which we think will cover around 2 million pension savers, many of whom will work for smaller firms, because we know that the biggest firms have been able to negotiate good deals with providers. That is good news for people who work for Britain’s small firms, in particular, who might not otherwise have got good value for money in their pensions.

Oral Answers to Questions

Debate between Steve Webb and Andrew Jones

Monday 13th January 2014 Commons Chamber

[The Minister of State, Department for Work and Pensions (Steve Webb)]

I am pleased to update the House and say that more than 2.5 million workers have now been automatically enrolled into a workplace pension. That puts us roughly a quarter of the way through the entire programme of automatic enrolment.

[Andrew Jones]

What have the Government done to ease the burdens on employers, particularly the small and medium-sized enterprises that play such a dominant role in the business mix in my constituency?

[Steve Webb]

My hon. Friend is quite right. Every change that we have made to the administration of automatic enrolment has been designed to reduce the burden on firms. For example, we have raised the wage threshold at which people are automatically enrolled, and we have delayed the staging for the smallest firms so that no one who employs fewer than 50 people will have to stage before April 2015.

Oral Answers to Questions

Debate between Steve Webb and Andrew Jones

Monday 5th November 2012 Commons Chamber

[Steve Webb]

Two sorts of risk are associated with pensions: financial risk and political risk. We have had SERPs—the state earnings-related pension scheme—which successive Governments cut and cut again. So that scheme did not provide any guarantee either. I want a balance of risks for people, a state promise and a private sector entitlement as well.

[Andrew Jones (Harrogate and Knaresborough) (Con)]

rose—

[Andrew Jones]

16. I am developing it as fast as I can, Mr Speaker.

Can the Minister update the House on how employees have responded to auto-enrolment?

[Steve Webb]

Yes. The first firm to auto-enrol was RBS bank, which did so in July. It had 86% scheme membership before auto-enrolment. That has now risen to 93%. The early signs are encouraging.

--- Later in debate ---

[The Minister of State, Department for Work and Pensions (Steve Webb)]

The hon. Gentleman is right to raise the important issue of governance. We do not think that we have a significant problem with the early stages of automatic enrolment for the biggest firms. They are coming in at a low cost and are well governed. The issue will arise further through the process and we are indeed looking at the quality of schemes into which people are auto-enrolled, including charges and governance.

[Andrew Jones (Harrogate and Knaresborough) (Con)]

T7. What progress is being made to ensure that work capability assessments are sensitive to fluctuating medical conditions such as stroke care?