Pension Protection Fund (Moratorium and Arrangements and Reconstructions for Companies in Financial Difficulty) (Amendment and Revocation) Regulations 2020

Baroness Ritchie of Downpatrick Excerpts

Wednesday 21st October 2020 Lords Chamber

[Baroness Ritchie of Downpatrick (Non-Afl) [V]]

My Lords, I thank the Minister for the explanation of the regulations. My understanding is that they extend the Pension Protection Fund’s rights as a creditor when co-operative and community benefit societies have a moratorium in place to protect them from creditor action.

My first question for the Minister relates to community benefit societies. The Pension Protection Fund is UK-wide and therefore applies to Northern Ireland, credit unions being a type of community benefit society operating there. There are two types of credit unions but the one that is widespread and of which I am most aware is the Irish League of Credit Unions, which operates in two jurisdictions. Given that it is headquartered in Dublin, would it benefit from the rights outlined in the regulations? Maybe the Minister could write to me if she did not have the answer to hand.

I take note of the remarks of the noble Baroness, Lady Altmann, when she said that the Pension Protection Fund, set up by statute in 2004, exist to protect people and provide compensation when required. As a former Minister for Benefits and Welfare in Northern Ireland, I am fully aware that we have a system there of parity with London, particularly on social security and pension issues.

The Northern Ireland Assembly and the Executive bring forward their own legislation which is exactly the same as that which exists in London. In fact, these regulations were enacted back in August. Can the Minister say what discussions have taken place with the Northern Ireland Executive on the potential impact of these regulations, taking into consideration that the pandemic will perhaps result in some insolvencies? Many people have already lost their jobs, so this is really about the ability of the Pension Protection Fund to discharge its responsibilities, particularly in a place such as Northern Ireland which does not have the inbuilt financial capacity and resilience to do that. That is particularly the case when confronted with an issue such as the pandemic, which brings its own financial pressures.

The issue of financial resilience was raised in the other place, so on a more general basis, I will ask the Minister this: is the Pension Protection Fund resilient enough? Other noble Lords who have already spoken have referred to that. Does it have the necessary resources to address the extraordinary potential problems that could ensue around insolvencies as a result of the pandemic? What measures will be taken to ensure that the fund is ready and capable of absorbing what could be potentially thousands more pension scheme members who will require security over the coming year? Perhaps the Minister could advise me in writing about what meetings have taken place between the Department for Work and Pensions and the Pension Protection Fund to review its performance.

Covid-19: Over-60s

Baroness Ritchie of Downpatrick Excerpts

Monday 12th October 2020 Lords Chamber

[Baroness Stedman-Scott (Con)]

I am pleased to be able to confirm to the noble Baroness and indeed to the whole House that, since late March, the Health and Safety Executive has had an extra £14 million in its budget. It has carried out a programme of interventions to check how businesses are implementing measures to reduce the transmission of Covid. Concerns are acted on quickly, and the HSE decides on what kind of enforcement there has to be.

[Baroness Ritchie of Downpatrick (Non-Afl) [V]]

My Lords, for the avoidance of doubt, will the Minister redouble efforts with colleagues to correct the pension injustice done to the WASPI women, which has been exacerbated by the Covid issues of this year, and ensure fair transitional arrangements for all women born in the 1950s who are affected by these pension changes?

[Baroness Stedman-Scott (Con)]

I understand the noble Baroness’s concern. However, both the High Court and the Court of Appeal have supported the actions of the DWP and, because that is being appealed, we are not able to comment on ongoing litigation.

Pension Protection Fund (Moratorium and Arrangements and Reconstructions for Companies in Financial Difficulty) Regulations 2020

Baroness Ritchie of Downpatrick Excerpts

Monday 14th September 2020 Grand Committee

[Baroness Ritchie of Downpatrick (Non-Afl) [V]]

My Lords, I thank the Minister for providing a detailed explanation of this statutory instrument, the details of which I welcome because they will act as a measure of protection for members who work for companies in financial difficulty which face restructuring.

It is important to remember that companies and those who work for them are not working in normal times. There is the Covid pandemic and the uncertainty around a possible no-deal Brexit, the news last week of a run on the pound and the potential impact of the United Kingdom Internal Market Bill on markets and businesses. References to the Chancellor’s potential raid on the coffers and reserves of businesses that pay for Covid financial measures can also precipitate further anxiety in the marketplace. Many companies have been the bulwark of our economy, as well as their employees, in both the public and the private sector.

As the Minister has explained, and was also explained by the noble Baroness, Lady Drake, these regulations will enable the Pension Protection Fund to participate in key decisions in the process by enabling it to exercise creditor rights that would otherwise be exercisable by the scheme trustees or managers. It provides compensation for eligible pension scheme members whose employer has become insolvent and cannot meet the scheme’s liabilities. I understand that it will be funded mainly by a levy collected from pension schemes.

In considering the impact and legislative effect of these regulations under the Corporate Insolvency and Governance Act, I have some questions for the Minister. Does she think that there will be sufficient money within those pension schemes to pay for a scheme’s liabilities? When the compensation is in payment, could it increase in such insolvency circumstances? If I am an employee, what happens if my scheme is potentially eligible for that but is facing all these difficulties as a result of insolvency? Will it be possible, in such circumstances, for the employee to contribute during the assessment period? Does the assessment period operate in such different circumstances? Is it possible to define the potential costs of such schemes? Will they reduce, bearing in mind that many people have left defined pension schemes? Will that categorisation apply in circumstances to do with restructuring and insolvency? What impact will that have on the Pension Protection Fund in its work with companies? Finally, what other benefits, including social security, are those pension scheme members eligible for if their employers have become insolvent and cannot meet the scheme’s liabilities other than those that may be provided for under the Pension Protection Fund?

Pension Schemes Bill [HL]

Baroness Ritchie of Downpatrick Excerpts

Report stage & Report stage (Hansard) & Report stage (Hansard): House of Lords
Tuesday 30th June 2020 Lords Chamber

[Baroness Ritchie of Downpatrick (Non-Afl) [V]]

My Lords, I first declare an interest as a recipient of the parliamentary pension fund. I support the amendment in the name of the noble Baroness, Lady Bennett of Manor Castle. I will also refer to Amendments 85 to 88 in the Minister’s name, which make particular reference to Northern Ireland.

Universal Credit: Court of Appeal Judgment

Baroness Ritchie of Downpatrick Excerpts

Monday 29th June 2020 Lords Chamber

[Baroness Stedman-Scott [V]]

It may be helpful if I repeat for the House the Answer that my friend the Minister for Welfare Delivery gave in the other place last week. He said:

“I am absolutely determined to find a fix to this issue … a number of items are in the pipeline, ready to be changed on universal credit. Despite criticism from Opposition Members, we have made significant changes to universal credit, and much more is to come, such as the roll-on of legacy benefits next month, which will benefit people to the tune of £200. Those are all in the pipeline to be done, and this will be added to that. I will try to expedite it as much as I possibly can”.—[Official Report, Commons, 25/6/20; col. 1460.]

[Baroness Ritchie of Downpatrick (Non-Afl) [V]]

My Lords, will the Minister, along with her ministerial colleagues in the DWP, use this opportunity to have a root and branch review of social security policy, to ensure a refocus on the needs of people—many of whom have been reliant on food banks for a long time—a financial uplift of universal credit benefit and caution on the use of the digital system?

[Baroness Stedman-Scott [V]]

I assure the noble Baroness that the issues and successes coming out of universal credit are continually under review. However, I will take her specific question back to the department and will write to her with an answer.

Covid-19: People Living in Poverty

Baroness Ritchie of Downpatrick Excerpts

Thursday 30th April 2020 Lords Chamber

[Baroness Ritchie of Downpatrick (Non-Afl)]

My Lords, this debate presents an opportunity, with all the challenges of the Covid pandemic, for the Government to reshape the debate around welfare with a view to reducing poverty. There is no doubt that poverty will be deepened by the Covid pandemic, but it is important that the language and the legislation are changed from those of austerity to those of compassion, fairness, equality and social justice. Can the Minister say what plans the Government have to change and reformulate the policy to one of fairness, equality and compassion, which ensures that there is a reduction in poverty?

Child Maintenance Service

Baroness Ritchie of Downpatrick Excerpts

Tuesday 18th April 2017 Westminster Hall

[Marion Fellows]

The right hon. Gentleman makes an absolutely valid point. That is exactly what I am trying to argue. We should chase arrears; not to do so seems to fly in the face of common sense and natural justice.

Members of the public, and indeed Members of this House, may not be aware that during the switch from CSA to CMS case history is not transferred, leading to a loss in accumulated knowledge that wastes resources and could allow a non-resident parent another chance to renege on their payments. Despite waiting years for an effective service that will proactively seek to collect owed maintenance, these parents with care and their children are being forgotten, with no option for recourse. If debts are uncollectable or unlikely to be collected, parents must be made aware of that. Additionally, if the UK Government are unwilling or unable to take the steps to secure children their rights, they must compensate receiving parents for their failings.

Although the CMS is taking the approach of focusing on current maintenance, it is also failing in that regard. Most arrears were accumulated under the CSA. However, since the launch of the CMS in 2012, nearly half of paying parents have been allowed to accrue arrears. As I have said, those in direct pay are assumed to have paid the full maintenance. Given that 70% of CMS cases come under direct pay, compared with just 33% of CSA cases, the magnitude of the problem under CMS is likely to be far larger than the numbers show.

Just because parents agree to pay, it does not mean they will fulfil their obligations. Under the CSA, between January and March 2016, one quarter of paying parents did not pay the full amount due. Of that number, two thirds paid less than half or nothing at all, which demonstrates that the priority of focusing on the payment of current maintenance is not being met. This Government’s strategy is failing.

Stringent criteria must be fulfilled before CSA debts will even be considered for collection under the Child Maintenance Service: a parent must open a CMS case, and CSA arrears payments must have been received in the last quarter before moving to the Child Maintenance Service, or the parent must explicitly ask for those arrears to be collected.

The Child Maintenance Service process is extremely difficult to understand and is often not communicated properly to parents. For example, DWP figures show that 17% of those using direct pay whose payments stopped or never even started were not aware that the CMS could even pursue payments for them. Similarly, 15% did not even know about the collect and pay service. Shockingly, a recent report from PayPlan found that more than half of single parents did not even know their child was eligible for support from their absent parent. Communication with parents about services available to them and their rights is lacking; they need to be informed.

The CMS needs not only to take action to collect historical arrears, but to make parents aware of their rights and of what the CMS can do to assist them. A variation claim—the main tool for receiving parents to ensure that their ex-partners’ proper income is taken into account—is kept secret. The cynic in me believes that that information is intentionally withheld to reduce the likelihood of any sort of action being taken.

Taking simple measures such as providing written breakdowns of arrears, how they were accrued and what options are available to people would go a long way towards improving parents’ interaction with the service and awareness of their rights.

[Ms Margaret Ritchie (South Down) (SDLP)]

I congratulate the hon. Lady on securing this very important debate. Is she aware that in Northern Ireland, 40 members of staff in the Department for Communities who deal with child maintenance are apparently to be laid off? The Department will find itself without experienced staff when it should be ensuring that money goes from absent parents to the children who urgently require it.

Personal Independence Payments

Baroness Ritchie of Downpatrick Excerpts

Wednesday 15th March 2017 Commons Chamber

[Damian Green]

I can confirm that, and I have already quoted the specific figure for disability benefits. We now spend £11.4 billion on mental health services every year, and we will be spending more on disability benefits in every year of this Parliament than was spent in 2010.

[Ms Margaret Ritchie (South Down) (SDLP)]

In the view of the mental health charity Mind, the new regulations and guidance contradict the stated aims of the primary legislation. What information has been transferred to the Department for Communities in Northern Ireland, where parity applies, regarding the new guidance? Will the Secretary of State ensure that the regulations are taken off the table to allow a full debate in Parliament and to ensure that nobody with a mental health impairment is financially penalised in any way?

[Damian Green]

I can only repeat that the regulations, which are being returned to their original state, do not discriminate against people with mental conditions. If anyone observing these proceedings is unnecessarily worried by that assertion, I regret that. I am happy to assure the hon. Lady that the Minister for Disabled People, Health and Work has made direct contact to ensure that information is flowing properly.

State Pension Age: Women

Baroness Ritchie of Downpatrick Excerpts

Wednesday 30th November 2016 Commons Chamber

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

I confess that today I am in deep and utter despair because once again I find myself, for the fifth time, in a similar debate about the WASPI women. Each time, the junior Ministers who were rolled out for the occasion had what I can only call the brass neck to listen to plea after plea that the Government should and must act on this issue, and then respond by saying almost nothing at all, but characteristically taking a very long time to say it in vague and woolly terms. Today, however, we have the big cheese—we have the big gun rolled out—but his bullish and dismissive response was, quite frankly, astonishing.

I would say to all Members of this House—I am not referring to the hon. Member for Mid Bedfordshire (Nadine Dorries) but talking about something that was said much earlier in the debate—that they should be very careful about trying to portray the WASPI women as a band of mad militants who go around threatening MPs, because that could not be further from the truth. We are talking about women who have acted with dignity throughout this campaign and organised themselves simply to access that which is already theirs by rights. Some Members have disingenuously suggested that we in the SNP are arguing against equalisation. It is the old trick of people trying to misrepresent their opponents when they fear they are losing the argument—in this case, losing it on rational grounds, on ethical grounds and on financial grounds.

[Ms Margaret Ritchie (South Down) (SDLP)]

Will the hon. Lady give way?

[Patricia Gibson]

I will make some progress.

Despite four previous debates, a UK-wide petition that in my own constituency attracted 2,534 signatures, potential legal action against the Government in which they must surely fear a humiliating defeat—it is possible that the WASPI women will win a case against the Government on mis-selling of their pensions—and a report from the Work and Pensions Committee concluding that

“more could and should have been done”

to communicate these changes, we still appear to be no further forward. How utterly frustrating! It is frustrating for us in this place, so can the Secretary of State begin to imagine how frustrating it must be for the women caught up in this nightmare? Well, 4,800 women in my constituency are caught up in this nightmare, as are many more across the United Kingdom.

When will this Government wake up to the fact that pensions are not a benefit, despite the chuntering earlier that suggested otherwise? They are a social contract, which has been cruelly broken. It is time for the Government to step up and take responsibility for the way in which this entire matter has been mishandled.

[Ms Ritchie]

Will the hon. Lady give way?

[Patricia Gibson]

I really am conscious of the time. Under the solution offered by the SNP, which was outlined by my hon. Friend the Member for Ross, Skye and Lochaber (Ian Blackford), it would be possible to increase women’s pension age to 66 in the 2020s. The UK Government’s view on this, even after mistakes in the process have been laid bare for all to see, has been characterised by intransigence and wilful stubbornness. The Government have ducked their responsibilities in this matter for far too long. It is time to do what is right, fair and just. It is time for the Government to waken up and realise that pensions are not a privilege and they are not, as I have heard them referred to in another debate, a promise or a benefit.

A contract has been broken, and the breaking of that contract marks a fundamental shift between the Government and those they purport to represent. When contracts can be torn up and ignored, what does that say about a representative democracy? It is time for the Government to stop telling us that they have no choice. When it comes to writing blank cheques for Trident, there is a choice, so they have a choice here. It is time to make the right choice for WASPI women.

Supported Housing

Baroness Ritchie of Downpatrick Excerpts

Tuesday 29th November 2016 Westminster Hall

[Neil Coyle]

I will come on to ring-fencing. The trust that the hon. Lady puts in local authorities is, I am sure, welcome, but often that trust comes without the resources to meet the demand, and that has been a continual problem.

[Ms Margaret Ritchie (South Down) (SDLP)]

I congratulate my hon. Friend on securing this very important debate. Does he agree that as part of Government proposals regarding the provision of supported social housing, recognition needs to be given to the best locations, with good access to hospitals and other public services, as many of the people concerned are vulnerable and require care?

[Neil Coyle]

Location is important, and I will come on to discuss where needs are best met. For too many of the people directly affected, that has been in NHS accommodation, which has been inappropriate and at far greater expense, but the Government’s plans do not address that.

--- Later in debate ---

[Jim Shannon]

Yes, absolutely; my hon. Friend is right. That was a very wise decision. It was supported by all and was done for the very best reason: to help vulnerable people in society. I will focus on those people in the short time that I have.

We must surely consider that saving when looking at housing benefit and supported housing schemes over the long term. In March 2016, the Government confirmed that people living in supported and sheltered housing would be exempt from the LHA cap for a year to allow the Government to carry out a proper strategic review of how supported housing is funded. That is good news. Let us give credit where credit is due: that is a step in the right direction. I have been furnished with the results of the consultation carried out by members of the National Housing Federation, which represents housing associations. More than 200 organisations contributed their views to that consultation.

[Ms Ritchie]

Does the hon. Gentleman agree that the best way to deal with the need for supported housing is to provide additional resources for more housing, particularly more specialised housing, for those who are in most need?

[Jim Shannon]

I could not agree more. That is clearly what we are all trying to achieve, and I hope the Minister will confirm that that is the Government’s target too.

The National Housing Federation says that the following three principles should underpin reforms to the funding of supported housing:

“No-one with support needs will become homeless or end up in unsuitable accommodation…The actual housing and support cost of delivering a quality service will be fully met, and will be flexible enough to meet changing levels of demand”—

things change, and we must be ready for that—and the

“taxpayer and those living in supported and sheltered housing will have evidence of the quality and value for money of the services being funded.”

That seems a solid foundation on which to build a supported housing policy, and I hope that the Minister will respond positively to that.

We must look at all those principles in the light of what the Government seek to do. The local housing allowance cap will apply to all tenants in supported and sheltered housing from April 2019. Housing costs will continue to be paid through the benefits system up to LHA level. There will be no shared accommodation rate; the one-bedroom LHA rate will apply to under-35s in supported housing. There will be local authority top-ups, and ring-fenced funds will be transferred from the Department for Work and Pensions and allocated by the Department for Communities and Local Government. The 1% rent cut will apply to supported and sheltered accommodation from April 2017.

There are still problems and many issues to be addressed. The hon. Member for Waveney (Peter Aldous) referred to people with mental health issues, and I want to focus on them, because those issues come up every day in my constituency. I do not believe that the Government’s aims allow them to follow through on the principles that are in place. Only last evening, before I got my flight to Heathrow to come to the House, I had a young man with mental health issues in my office who was finding it difficult to get housing benefit to allow him to live close to his family. I had only to talk to him to know that he was suffering from severe depression, anxiety and angst and really needed help and support to allow him to live his life somewhat independently. I speak out for him, to ensure that the Government’s proposals do not stop housing associations creating supported housing schemes, which are needed not simply for the elderly but for people of all ages and from all walks of life.

We have had 30 years of conflict in Northern Ireland. We often say that, but that does not lessen the statement. We have acute and complex issues in Northern Ireland; many people from all sides of the community and of all ages suffer from anxiety and depression and need help. It is important that supported housing schemes can be created and sustained. The Government must recognise that need and allow for it in their proposals.

Although the ring fence and the commitment not to use a shared accommodation rate for LHA for people under 35 are most welcome, we must ask how local authorities will prioritise the spending of their devolved funding. For example, will they prioritise people with social care needs over single homeless people? How will the Government ensure that local authorities get the right amount of money and that funding grows in line with need? How will we ensure that services that require relatively little additional funding, such as sheltered housing, are not caught up in complicated administration? The hon. Member for Waveney spoke about how complex that is both for us and for our constituents. How will we ensure that existing tenants are protected in the transition from one system to another? I know the Minister, and I know that her response will be positive. We want to hear positivity from her when she addresses those questions. I am aware that this issue is out to consultation, but it has surely been considered since the initial review in 2011.

I conclude with this comment. Reform is needed. The present system can be taken advantage of. We speak for the most vulnerable people—those with mental health issues, emotional issues and complex personal issues, who are in situations where they are taken advantage of, not supported—and we must ensure that they are not left alone. I implore the Government and the Minister to consider fully the responses of the bodies that deal every day with those vulnerable people, and ensure that we leave no one alone and vulnerable without the support that they need to live.