Oral Answers to Questions
Debate between Steve Webb and Robert Flello(9 years, 9 months ago)
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Robert Flello (Stoke-on-Trent South) (Lab)
7. What progress he has made on the introduction of face-to-face pensions advice.
The Minister for Pensions (Steve Webb)
Our summer response to the consultation “Freedom and choice in pensions” outlined the policy and legislative details underpinning the implementation of the guidance guarantee. We will bring forward amendments to the Pensions Schemes Bill to introduce the guidance guarantee, and the Treasury implementation team continues its extensive service design work. We will publish an update note on the project in the autumn.
Robert Flello
Despite the announcements made in the summer, I understand that the pensions industry continues to express considerable concern about funding the guarantee levy, whether the service will be ready in time and how the scheme will operate. I understand that there is also widespread concern among consumers about how the scheme will operate and whether it will be ready in time. Given that this is perhaps the most important decision that people will face in their lives—it is certainly one of the most important decisions—and that there is concern that people will receive guidance and think it is advice, or that the guidance will not be comprehensive enough, what will the Minister do to ensure that the proposal works properly and quickly?
Steve Webb
We are actively engaged in making those preparations, but we entirely accept that the time scale is tight. I contrast our proposals with the current situation, in which hundreds of thousands of people reach an age at which they choose whether or not to buy an annuity and get no guidance, advice or help whatever. This will be free. The guidance will be independent and will be face to face if people want that. It will be a vast improvement on what currently happens.
Housing Benefit
Debate between Steve Webb and Robert Flello(10 years, 6 months ago)
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Steve Webb
We have estimated £25 million to cover adapted properties. The hon. Lady might have better statistics than the Government on adapted properties, but I suspect that the default position of Labour Members is to say, “It’s not enough; it should be more.”
Let me address the issue directly to respond to the hon. Lady’s point. In 2012-13, we made available £60 million of discretionary housing payments. This year, we have trebled that amount to £180 million. That money is what we might call hard cash for hard cases—the cases to which hon. Members have referred. I say this sincerely to hon. Members: those who raise individual cases should be holding their local authorities to account. The Government have given local authorities the money to help people in need. In fact, we have gone further. Within year, we have allocated an extra £20 million for local authorities to bid for. If they have exhausted, or if they anticipate exhausting, their discretionary housing payments budgets, they can come to the Government for a top-up. So far, barely a dozen local authorities have asked for additional funding.
The hon. Member for Leeds West mentioned the strain being putting on her local authority’s discretionary housing payment. Leaving aside the fact that Leeds has an extraordinarily low rate of home swaps—in other words, is the local authority doing the right thing by its tenants?—it has not asked the Government for a share of the £20 million. If Leeds is so cash-strapped for DHPs, why has it not asked us for the money it says it needs, rather than turning away people it thinks are vulnerable?
Robert Flello
The Minister talks about cash-strapped authorities. Stoke-on-Trent has been the third hardest hit by cuts every year and simply cannot mop that up. He made a point about swaps. In Stoke-on-Trent, approximately 11,000 people are on the waiting list. Where are the one-bedroom flats? Where are the two-bedroom places? They do not exist in Stoke-on-Trent. Will he tell me where they are?
Steve Webb
The hon. Gentleman misses the point. He mistakes the issue of empty properties for properties that are currently accommodated. The social housing swap website indicates tens, if not hundreds, of thousands of people in smaller properties who want to trade up, while people in larger properties want to trade down.
In response to the hon. Member for Manchester Central, I am rather startled by this figure, but it appears that last year Manchester local authority sent back to the Government £595,000 of unspent DHPs.
Living Standards
Debate between Steve Webb and Robert Flello(12 years, 6 months ago)
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Robert Flello (Stoke-on-Trent South) (Lab)
The hon. Member for Poole (Mr Syms) almost had me agreeing with some of his speech, certainly in its early moments, but I am afraid that he blew it at the end when he talked about the Chancellor being sensible and then praised the Liberal Democrats—neither of the main parties in this House should stoop to such a level.
We have heard the phrase, “We’re all in this together”, many times over the past 18 months. I wonder how the 11,600 families in my constituency who will see their tax credits cut by an average of £680 per annum—on top of the three-year child benefit freeze and all the other cuts that they have seen—will feel about our all being in this together. I think they will be sitting there thinking that we are certainly not all in it together. Around the country, 100,000 more children will be in poverty as a result of this Government’s plans, proposals and policies. Will they think that we are all in it together? I somehow do not think they will. The number of young people in my constituency who are aged between 18 and 24 and have been claiming jobseeker’s allowance for six months or more has increased by 154%. That is a huge increase in the number of young people who find themselves in the position of not having any work. They will not think that we are all in this together, and rightly so, because we are not.
The Minister sneered a few times when the issue of bankers came up. The Government are keen, with their coalition pals, to talk about how hard they have been on the bankers with their levy. They always seem to forget that they offset the hit of the levy with the corporation tax cut and other giveaways to the bankers. The bankers are not sitting there saying “We’ve been really hard hit by this; we’re all in this together”—of course they are not. They are quite happy because on the face of it, they have had this big levy, but the reality is that that is diminished by the corporation tax changes and other benefits.
The pay of FTSE 100 directors has risen by 49% but my constituents can only dream of a 4.9% increase in income. Are we all in this together? I do not think that we are. A pattern is developing. The wealthiest, the bankers and the FTSE 100 all seem to do nicely as against the children and the poorest. The three poorest deciles are being hit three times as hard as the top decile.
Robert Flello
The Minister shakes his head, but I am afraid that the figures do not support his position.
The Opposition are wrong to say that the Government’s policies are hurting, not working, because they are not hurting but murdering our communities. They are so punitive that they are destroying our communities. We are not all in this together by any stretch of the imagination. We heard earlier about a list of areas that were among the most vulnerable to the impact of the cuts. Stoke-on-Trent was high up on that list but the Government’s policies actively take money away from places like Stoke-on-Trent to help all-in-it-together places like Kensington and Chelsea or Westminster, which obviously need the money far more than do the people of Stoke-on-Trent.
Then there is this nonsense, this con––let us get it out on the table––of the freeze on council tax. I am sorry but this 2.5% increase in council tax, which is what this nonsense would amount to––