(6 days ago)
Grand CommitteeMy Lords, Amendments 103 and 104 appear under my name. I confess that I can take no credit for drafting them; they started with my honourable friend Siân Berry in the other place. I take note of the Whips’ injunction on brevity, so I will largely focus on those two amendments. They may look rather long, with pages and pages, but they have the same injunction repeated three times relative to the Levelling-up and Regeneration Act, the Local Democracy, Economic Development and Construction Act and the Greater London Authority Act, so they are actually much shorter than they look.
As the proposed titles state, they would create a duty on mayors to establish a deliberative citizens’ assembly within six months of being elected to inform strategic decision-making. That word “strategic” is important, because we have seen it demonstrated again and again that citizens’ assemblies provide a great way to address the big strategic questions. Proposed new subsection (6) in each amendment states that the mayor must take into account any recommendation made by the assembly, and publish a response.
Assemblies have really taken off up and down the country, if in a very piecemeal fashion—perhaps despite Westminster, rather than because of it. I am holding previous Governments responsible for that, but the current Government now have a chance to turn over a fresh leaf and act towards democracy by encoding citizens’ assemblies in this Bill. The organisation Involve, which has organised many of these, stresses how citizens’ assemblies are a way to
“strengthen legitimacy, foster trust, and solve complex problems”.
As it said in a recent blog post, it is a
“powerful answer to the breakdown in trust in our elected representatives and the wider crisis of democracy”.
Just to give noble Lords a sense of the kinds of government organisations that have been making use of citizens’ assemblies, Involve has organised various events along these lines for Innovate UK, UKRI, the Care Quality Commission and the West Midlands Combined Authority. There is a very long list; that is just a sample of them.
Under different structures and local initiatives, one area where citizens’ assemblies have proved particularly powerful is in looking at climate action. We have seen many local authorities set net-zero targets and communities have got together through citizens’ assemblies to work out how to do that. I take two examples of very different ones. In Kendal, right in the depths of the Covid pandemic, the town council organised a climate change citizens’ jury that was regarded locally as very successful. Then, in another place, very different politically and demographically, there was the Westminster citizens’ climate assembly in 2023. This is something that is taking off, but in a piecemeal fashion. This is a chance to really put a focus on deliberative democracy at the heart of this Bill.
Finally, on citizens’ assemblies, I draw attention to the powerful speech by the noble Earl, Lord Clancarty, on the lead amendment in this group and the really powerful testimony from a group called Citizens for Culture, which is based in the south-west. It talks about championing citizens’ assemblies in terms of arts culture and says that:
“When diverse voices come together to learn, deliberate and decide, it leads to decisions that are more legitimate, more inclusive, and more connected to the lived experience of local people”.
Culture, brought together with a citizens’ assembly, creates a vital space where communities can make meaning, build identities and imagine new futures. I think that expresses the idea very well.
I can see the Whip looking at me so let me just say something about Amendment 104. There are many different amendments, both in this group and in previous groups, about mayors having to work with—in this case—local public service providers and other local government. This amendment would provide one more way of doing that. We have heard from all sides of the Committee that that is a really essential and necessary thing that is missing from the Bill; I am not attached to any particular way of doing it, but this would be one way of doing it.
My Lords, I wish to speak to Amendment 196D, which would place a duty on strategic authorities to work with local and community-based bodies when exercising their functions. Devolving powers to the level of the people whom they affect means that effective devolution depends not only on transferring powers from Whitehall but on ensuring that those powers are exercised in partnership with the communities they affect. Without an explicit duty to work with community-based bodies, there is a risk that decision-making becomes remote, technocratic and insufficiently grounded in local reality. This amendment would ensure that parish and town councils are treated not as an afterthought but as partners in governance, helping strategic authorities to understand local conditions, priorities and constraints before they are implemented.
Voluntary and community sector organisations also play a critical role in the delivery of local support and preventive services. They are often hubs of energetic volunteers—people who want both to be involved in their local communities and to bring enthusiasm, energy and drive to local life. Following on from the story of the noble Lord, Lord Bassam, when I was a member of a community council on the west coast of Scotland, volunteers and members of those communities persuaded the mighty Strathclyde Regional Council to support a town-twinning project and fund it. So you can find examples of this kind of thing all over the country.
I believe that, in all of the powers and strategic aims of this Bill, the key roles played by town and parish councils are forgotten; in fact, the Bill barely mentions them. Parish and town councils are key players in local communities. They are closest to the ground and most responsive to the day-to-day needs of communities. This Bill must contain a statutory obligation to work with the most local and community-rooted bodies—parish councils—as well as the other essential local groups and agencies that are involved in delivering services at a local level.
(4 years, 3 months ago)
Lords ChamberMy Lords, I begin by apologising to your Lordships for not taking part in Second Reading due to the volume of Bills currently before your Lordships’ House.
I will be very brief. I rise to offer the Green group’s support for the intention of all these amendments. I express my pleasure in following the noble Baroness, Lady Drake, and stress her point that we are not talking about a contest between generations here. There are some very poor people among our older communities, and they deserve not to live in poverty, but that does not mean taking money away from the young. I also stress the point made by the noble Baroness, Lady Wheatcroft, about how pensioner poverty is rising and that we should have a society where no pensioner is living in poverty.
I particularly want to address Amendment 3, which is the one I would most like to have attached my name to, had there been space. It is crucial: pension credit gets so many people to at least a basically decent, not awful, standard of living, but the fact is that that is useful only if you actually get it. I had a conversation—or a debate—with the Minister about a year ago. At that stage, the rate of pension credit take-up was 60%; that meant about a million pensioners were not receiving pension credit who would have been entitled to it. That was money the Government were not paying out—about £3 billion. It was estimated that it was costing the NHS and social care a spend of £4 billion. So not paying pension credit is actually costing the Government money. Can the Minister now—or later in writing, sharing it with other Peers—update me, a year later, on whether those figures still hold? Have the Government planned, as they did not plan a year ago, a programme to promote pension credit to ensure that those who are entitled to it take it up?
My Lords, as the noble Baroness, Lady Bennett, says, all these amendments seek to protect pensioners against price increases during a temporary suspension of the triple lock. I very much welcome the proposals made in Amendments 1, 2 and 3, and particularly welcome the proposal to include pension credit in the link with earnings.
I want to speak to Amendment 4 in my name, which seeks to base the uplift on the predicted increase as forecast by the Bank of England for April 2022. My amendment proposes that, as the pension increase will be in April 2022 and the previous pension increase was in April 2021, the best measure would surely be price increases between those two dates.
Circumstances have changed considerably since the Bill completed its passage through the Commons, including rising costs, rising inflation, unreliability of supply chains and the various pressures brought about by those circumstances. While we do not know what inflation will be by next April, there is plenty of reason to think that it will be higher than currently—that is sadly what the Bank of England thinks. For example, the energy cap went up 12% on 1 October, and is expected to go up again next April. I do not think the Government should be happy that these cost rises are not included in the inflation figure that they have used.
We know that pensioners, and older pensioners in particular, tend to spend more time at home and feel the cold more, and so energy bills tend to be a higher share of their household budgets. Given soaring energy costs, pensioner inflation is likely to be higher than average inflation. This is another reason to think that just linking to September’s average figure, when setting the state pension rate, is the answer to the wrong question. I know that some Members will think that using a forecast is not as robust as using an outturn, but this legislation is only for one year, so really we are not setting a precedent. In fact, I am reliably informed that, in the 1980s, the DWP used to use forecast inflation for benefit uprating.
Mention was made in the previous debate of the need to implement the new rates as quickly as possible. This really does not take as long, in this day and age; there are processes in place to make it much easier. Surely it would not take long for the preferred body—the Bank of England or the OBR—to come up with an inflation forecast; presumably the Budget will bring new inflation forecasts in any case.
If the Government are committed to protecting pensioners against rising prices when they set the pension in 2022, they should see that this is a more transparent, easily understood method of ensuring that pensioners are protected against the expected rise in prices, costs and pressures in the year ahead.
(5 years, 7 months ago)
Lords ChamberMy Lords, I rise—at least metaphorically—to speak to Amendment 34. I will also refer to Amendments 73 and 79, to which I have attached my name. I pay tribute to the Minister, who has been very generous with her time on those two later amendments addressing the climate emergency. Her department has paid a great deal of attention to them; this is an area on which progress has been made, which is appreciated. It is a positive sign.
However, Amendment 34 addresses the fact that the climate emergency is only one of the critical factors facing our society today. “Environmental, social, and governance” is one of those buzz-phrases that does not exactly trip off the tongue. It means this: how does a company perform as a steward of the natural world and as a part of the society from which it makes, hopefully, its profits? What is its impact on its employees, suppliers, customers and the community in which it operates? We are talking about systems thinking of the kind that lies behind the sustainable development goals, to which this Government and most others around the world have signed up. It means having a decent life within the physical limits of this one fragile planet.
You might say that that is a pretty good goal that we should write into pensions legislation anyway. Even if you do not think that it is something this legislation should try to achieve, if you consider the narrower situation of the direction and risks of investments, there is increasing awareness in the investment community that environmental, social and governance issues are also a very good measure of risk. In some of the great financial and natural disasters of recent times, such as the BP Deepwater Horizon oil well blow-out in 2010 that had such enormous environmental impacts and the Volkswagen “Dieselgate” scandal, we have seen a problem with a company’s actions, but with a narrow focus on the climate emergency and not considering other factors that proved to be a real issue.
On the technicalities of this amendment, I stress that it has taken on board the Minister’s comments in Committee. The amendment then suggested that this information be included in the pensions dashboard; it now proposes that it could be included elsewhere when supplied to the Pensions Regulator—perhaps on its website or the SIP repository.
I know that the noble Baroness, Lady Ritchie of Downpatrick, will say later in the debate on this group of amendments that some of the amendments relate to Northern Ireland and that pension Bills have previously been left to the Assembly. I would appreciate it if the Minister would address that in her response. I would also appreciate a response on the fact that, while the climate emergency is one of the critical issues we face, we are in an age of shocks. There are many others: the nature crisis, the social emergency and the big impacts some of our largest companies are having around the world, as we see in the protests and extreme distress in garment factories in countries such as Bangladesh, India and Cambodia. Pension investors should be able to take account of these issues.
I suggest to your Lordships’ House and the Minister that taking account of the climate emergency is a necessary condition in this Bill, but for the Bill to be sufficient for the 21st century, we also need to include the broader environmental, social and governance issues. I beg to move.
My Lords, I thank the noble Baroness, Lady Bennett, for her speech and her amendment. I also thank the noble Baroness, Lady Hayman, for her work on this issue and the Minister for all her work in achieving the government amendments on this important matter. While I recognise the major progress that has been made, I shall speak in support of Amendments 72 and 74, which are signed by my noble friend Lord Sharkey and myself. I shall speak also in support of Amendments 73 and 79 from the noble Baronesses, Lady Hayman, Lady Jones and Lady Bennett. I had also intended to sign these amendments and I apologise for not doing so.
In Amendments 72 and 74, the intention is to strengthen the obligation to ensure that the regulations of the scheme reflect the importance of the issue. Replacing “may” with “must” in the amendments to the Pensions Act strengthens the requirement on trustees to ensure that there is effective governance of the scheme with respect to the effects on climate change.
Amendment 73 strengthens the regulations and adds to our Amendments 72 and 74 by ensuring that relevant information in relation to climate change must be considered as part of the regulations.
Amendment 79 aims to ensure that the regulations place an obligation on trustees or fund managers to report on and publish how they have taken into account relevant treaties and other government commitments on climate change. The improvements to the Bill already made are very much welcomed, and we support these amendments today in the spirit of strengthening them. It has been well documented that more and more savers are keen that their savings should serve to strengthen ethical policies, particularly on climate change. As a result, they require more transparency on how their savings are invested.
Pension funds have huge economic power and must play their part in meeting our 2050 targets. UK pension funds hold more than £1.6 trillion in assets. The size and influence of pension schemes means they have a vital role to play in ensuring that the UK meets its climate commitments. It is essential that the Bill enables that to happen.