(1 year, 4 months ago)
Lords ChamberMy Lords, of all the weeks when I am not going to start making up national insurance policy on the hoof, this is most definitely one of them. However, I hear what my noble friend says, and I will pass that along.
My Lords, what assessment have the Government made of the impact on employment, particularly for older people, of increasing NI contributions for employers, bearing in mind that the winter fuel payment has been withdrawn?
My Lords, to separate those two out, the Treasury has published documentation on GOV.UK relating to the Budget and an impact assessment of different aspects of the Budget. On the question of the winter fuel payment, the noble Baroness will know that the vast majority of people who will be entitled to it are being encouraged, if necessary, to apply for pension credit or other benefits. For most of the rest, many of them will not be in employment and will not intend to be in employment. The winter fuel payment is aimed at people of pension age, so I do not see the connection between the winter fuel payment and national insurance, but if the noble Baroness wants to speak to me about it afterwards, I am happy to talk to her.
(1 year, 4 months ago)
Lords ChamberTo ask His Majesty’s Government what steps they are taking to ensure every pensioner who is eligible for Pension Credit receives it.
My Lords, the Government want all eligible pensioners to apply for pension credit. The Government have written to pensioners providing advice about claiming pension credit following the change to the winter fuel payment, alongside a range of other creative media campaigns. We are engaging directly with pensioners as well as with stakeholders, including devolved Governments, councils and charities, in a joint effort to raise awareness through our combined networks and channels.
I say to the noble Lord: feel free. Having run a pension credit campaign, I can understand what the Minister is undertaking. Do the Government intend to guarantee that the DWP has the capacity to deal with what could well be a rapid uptake of applications for pension credit—with all the extra administration needed to process the claims —after this Government’s shameful decision to deprive pensioners who need it most of their winter fuel payment?
My Lords, on that final point, which, obviously, I cannot let go, the poorest pensioners are protected because those on pension credit will still have access to the winter fuel payment.
On the bulk of the noble Baroness’s question, we continue to operate good service levels. Around 500 additional staff have now been brought in to support processing during the recent surge in pension credit claims. Processing times may increase; we have advised customers who apply that it could take nine weeks to process their claims. However, anyone who applies before the deadline of 21 December can have their application backdated, which means not only that they will get winter fuel payments but that they may well get pension credit on top of that.
(1 year, 6 months ago)
Lords ChamberMy Lords, this is the first opportunity I have had to congratulate the noble Baroness, Lady Sherlock, on her appointment as a Minister. I genuinely wish her well in that capacity and look forward to working with her on areas where we can.
The Government’s decision to end the winter fuel payment for all pensioners except those in receipt of relevant benefits will be a real blow to millions of older people across the country this winter. Reducing financial support for older people before the colder months will harm many who rely on their winter fuel payment. This is a betrayal on a shocking scale. The Opposition are critical of this policy for three primary reasons: it will leave millions of vulnerable pensioners worse off this winter; the Government are wrong to prioritise above-inflation pay rises for public sector workers over the interests of vulnerable older people; and the Government were not straight with the British people about their plans during the general election this year. The Government should listen to the concerns of noble Lords and take time to consider how they can make the savings they need without punishing older people. That said, it is not the place of this House to override the decision of the elected House, and that is why the Opposition have tabled a regret Motion today.
In government, the Conservatives showed a stalwart commitment to pensioners who had paid in all their lives, with the triple lock, pensioner cost of living payments, the warm home discount and winter fuel payments. All these measures were either introduced or maintained by the Conservatives because we on these Benches know what is right for pensioners and that it is patently unfair to put the most vulnerable pensioners in jeopardy as winter approaches. The Conservative Party consistently did what was right for pensioners throughout our time in office, and there are valuable lessons for the Government in that record.
The winter fuel payment has been a lifeline for millions of pensioners, with 11.4 million older people receiving it in 2023. Vulnerable pensioners rely on this support, and it is that group about which the Opposition are most concerned. The Government have said that pensioners in receipt of relevant benefits will continue to receive winter fuel payments, but the Government’s own estimates show that approximately 880,000 households are eligible for pension credit but do not currently receive it.
It is important that we remember just what position those 880,000 people are in. To be eligible for pension credit, a single person must have a weekly income of less than £218.15; it is £332.95 for a couple. These are some of the most vulnerable people in our society and I ask the Minister: is she comfortable depriving 880,000 of the most vulnerable pensioners of the winter fuel payment this year?
In April this year, the now Prime Minister, writing in the Daily Express, said:
“I firmly believe that if you spend your lifetime working hard and contributing to society, you deserve a comfortable, secure retirement”.
He went on to say:
“It was that belief that meant the last Labour government introduced winter fuel payments, free bus passes and pension credits”.
Please can the Minister tell us in detail what has changed from that statement?
I trust noble Lords will forgive me if I pre-empt the Minister’s reply. We will hear, no doubt, that the previous Government left office with a £22 billion black hole in their public finances. This is not a fair statement of facts. When the Chancellor of the Exchequer stood at the Dispatch Box in the other place, setting out the Conservatives’ supposed profligacy, she included in that calculation a total of £9.4 billion of spending on public sector pay awards. The Chancellor claims that these were a result of Conservative decisions, but they are political choices. It is not a fair presentation of the facts to say that the Conservatives are responsible for a £22 billion black hole when almost half of that calculation is made up of public sector pay awards agreed by the Government.
Ministers have also claimed that the public finances were worse than they expected when they took office earlier this year. I need not remind the House that the Office for Budget Responsibility, which was founded under the Conservative Government, audited the public finances just 10 weeks before the general election was called. Indeed, since January this year the then shadow Chancellor, in line with constitutional convention, had privileged access to the Treasury Permanent Secretary. The books were open, yet the now Government did not come clean during this period about their plans to remove the winter fuel payment for most pensioners.
Indeed, if the public finances were as tight as the Chancellor would have us believe, Ministers would be showing pay restraint across the board. In fact, the truth is quite the opposite. Since taking office, the Government have allocated £8.3 billion for GB Energy, £7.3 billion for a national wealth fund and, of course, the £9.4 billion I spoke of a moment ago for vast above-inflation public sector pay awards. It is becoming clearer every day that the Government will prioritise train drivers, junior doctors and civil servants—their own political vanity projects—over the needs of the most vulnerable pensioners in our society.
In addition to these concerns, we must ask the Government whether this policy change will be successful in achieving its stated aim. During Treasury Questions in the other place last week, the Chancellor of the Exchequer confirmed that the Government expect to raise £1.5 billion a year by cancelling the winter fuel payment for the majority of pensioners. This led me to look up the total value of unclaimed pension credit. The latest official statistics show that up to £2.1 billion of available pension credit went unclaimed. If 100% of eligible pensioners claimed their pension credit, the Government would make no saving at all. We can conclude that the fact that 880,000 pensioners who are eligible for pension credit will be deprived of their winter fuel payment by the Government is not an unintended consequence. The savings the Government expect to make are predicated on those people not claiming.
We on these Benches put in a great deal of effort to drive up pension credit when we were in office. In June 2022 the Pensions Minister launched a campaign to urge pensioners to check whether they were eligible. In June 2023 the then Pensions Minister, Laura Trott, launched a further campaign and trialled the Invitation to Claim initiative through which the Department for Work and Pensions wrote directly to potentially eligible households that received housing benefit, encouraging them to apply. In July 2023 the DWP confirmed that these campaigns had been effective, and applications were around 75% higher in the year to May 2023 than in the same period the year before.
We have made progress on this in the past, and the Government’s new campaign is unlikely to succeed in getting every eligible person to claim pension credit. The Government should listen carefully to these concerns and take action to protect this vulnerable group.
While it is unlikely that we in this House will be able to convince the Government to change their chosen course—although I live in hope—I hope that the concerns raised by Members across the House will at least encourage Ministers to work on mitigating measures to ensure that pensioners eligible for pension credit are not left without the support they need.
I know that many noble Lords would want me also to highlight the needs of pensioners who are only just above the pension credit threshold. My friend, the noble Baroness, Lady Altmann, has already done this. Can the Minister confirm whether the Government have considered increasing the pension credit threshold so that pensioners in that group are protected?
Before I conclude, I ask the Minister whether she will commit—I implore her—to meeting concerned Peers to discuss other options to this policy, to suggest ways to make the pension credit uptake campaign more effective and to explore the alternatives. I know that noble Lords would appreciate the opportunity to engage with the Government constructively to protect the most vulnerable pensioners.
In conclusion, it is clear that the Government have the wrong priorities, putting public sector workers and their own vanity projects first while depriving vulnerable pensioners of a lifeline. Indeed, the Prime Minister is damned by his own words earlier this year, when he said he believes pensioners “deserve a comfortable … retirement”. This Government took office on a change theme, which we are so encouraged by, and said they would make money so that everybody would be better off and have a better quality of life. As yet I have not seen too much of the making of money, but I see a lot of taking and I hope it is not a trend that will continue.
(2 years, 6 months ago)
Lords ChamberMy Lords, I apologise for not being here for the start of the Statement. In all my time in the department, now being carried on by my noble friend the Minister, there was real ambition to help those people in the work capability assessment—earlier rather than later, because the longer you leave it, the worse the condition gets.
This weekend, I was trying to tidy up my study, which is a massive job, when I came across an independent evaluation of a programme we ran at Tomorrow’s People when I was there—I declare an interest, although I am not there any more. We had a programme in a doctor’s surgery called “The Right Prescription: A Job”. When somebody was physically or mentally unwell and came to the doctor, if there was nothing he could do for them, he called them his “heartsink patients” because his heart sank when they walked in the room. He wrote “a job” with us on the prescription pad.
We had a consulting room and, initially, we worked with a cohort of 200 people. The results were pretty astounding. We ended up with 880 surgeries across the country wanting us, representing millions of patients. The Government at the time—I will not declare which—said that it was too expensive, but for an investment of £2,000 you got a return to society of £10,000. We reduced the anti-depressant prescription bill by 34% for those 200, saved the doctor 20% of his time, saved referrals to counsellors and got people into work. On average, 80% of them were there 12 months later, although it was intense.
We must look at the consultation as an opportunity for people to put forward ideas that make life better for people. If the department will have me in for 10 minutes, I will certainly come back and share that evaluation to see whether it can help, because people with mental health issues in particular need all the help we can give them.
I take this opportunity to encourage all those who are interested to give input to the consultation. To pick up on my noble friend’s point about GPs, a key principle is that the WCA considers what impact the person’s disability or health condition has on them, not the condition itself. To clarify, the department does not ask claimants’ doctors to make decisions about their patients’ capability for work. This is because the doctor diagnoses and treats a patient’s illness, whereas the WCA healthcare professional’s role is to assess the effects of the claimant’s illness on their ability to perform everyday work-related activity. It is important to make that distinction.
(2 years, 8 months ago)
Lords ChamberTo ask His Majesty’s Government what progress they have made with the Reducing Parental Conflict programme, and what plans they have for the future of that programme.
My Lords, since its announcement, we have allocated £77 million to the reducing parental conflict programme, 151 local authorities have been directly supported, and the programme has developed evidence and approaches to relationship support that benefit families. We are committed to a cross-government approach to provide a strong, early help offer to families, and we continue integration into local services and alignment with other key government programmes, including family hubs and Supporting Families.
My Lords, I thank my noble friend for that Answer. I am very encouraged about the encouragement of cross-government department working. If I have understood it correctly, Supporting Families is being more aligned to DfE work and family hubs. Does my noble friend agree that there is much to be gained by aligning the reducing parental conflict programme in this way?
I believe the work achieved and continuing to be done within the RPC is invaluable. The programme has had three interim reports published that give strong evidence for that. As announced yesterday, three reports to be published in due course further demonstrate the impact of the programme with more granular detail. We are working to integrate RPC outcomes into other key government programmes, including family hubs and the Supporting Families programme, but for the moment the RPC programme remains firmly within DWP.
(2 years, 9 months ago)
Lords ChamberThe noble Lord makes an important point about defined benefit schemes, which he will know are still maturing, with decreasing numbers of active contributing members and increasing numbers of pensioner members. It is therefore important that their pensions are properly protected and that these schemes are properly funded. The majority of schemes in the DB sector are well run, plan for the future and manage their risks effectively, but the gist of the noble Lord’s question is that there is still more to be done.
What assessment has been made of the burdens placed on trustees in respect of reporting? This must have a chilling effect on getting people to become trustees of pension funds.
We are not unaware of this. We have carefully considered the balance between the burden of reporting requirements for trustees on climate risk and the need for urgent action in this area. That is why we have introduced TCFD requirements only for the very largest schemes, as my noble friend will probably be aware, which have, let us face it, more capability and capacity. It gives us the widest coverage of pension scheme numbers while minimising burdens on trustees.
(2 years, 10 months ago)
Lords ChamberMy Lords, I thank my noble friend Lady Redfern for sponsoring this important Bill in this House. The Bill is important, as it will help to ensure that action is taken to get money to children who desperately need it sooner rather than later.
When I first arrived in the DWP as a Minister, I found that one of my responsibilities was the Child Maintenance Service. I quickly found out that it was not the portfolio area that many Ministers were clamouring to take responsibility for. I suppose you could say that in some cases it might have been the hospital pass. Having said that, once I understood how important it was and how much children and families needed this money, I tried to get to grips with it—and, as some would say, I became quite obsessed with child maintenance. My first ministerial visit was to Gingerbread, and what a baptism of fire that was. I learned more in the couple of hours I spent there than I probably would have just by reading books and papers.
It became very clear to me that some paying parents would do anything they could to avoid accepting responsibility for their children. Noble Lords would not believe the lengths that people would go to in order to avoid doing it. I toyed with the idea of giving some examples. I was not going to, but let me give your Lordships one: getting your brother to do a DNA test to prove that you are not the father so you do not have to pay. That is outrageous. Of course, some hide income in other accounts as well. There are some people who genuinely cannot pay, and there are some who can but who mess about a bit, delay it and cause havoc in the home. But there are some people who shamelessly do everything they can to avoid paying their maintenance. I was not going to have that, and I know that my noble friend the Minister is not going to have that either.
The Child Maintenance Service has a range of tools at its disposal to ensure that it gets the rightful payments that are due. Equally, I should say that there are many parents who do pay—let others follow their example. Exactly how will the Bill improve the experience of child maintenance customers and speed up the process? How much time will the introduction of this administrative liability order save?
I make another plea to my noble friend. For those paying parents who are in dispute with the Child Maintenance Service—there are a fair few of them—I ask that the new liability enforcement orders will not be applied until their appeals have been resolved. As I have said, the Child Maintenance Service has a number of enforcement powers at its disposal. Can my noble friend tell the House what is being done to ensure that existing powers are being used effectively and, if possible, can he share with the House how many orders the Child Maintenance Service currently obtains? Securing payments from paying parents has an impact on the reduction of child poverty. Can my noble friend tell us the effect that child maintenance has on children growing up in poverty?
The Child Maintenance Service is not perfect, but I ask your Lordships to understand and appreciate the effort and commitment of the child maintenance team in using all its powers to secure funding. Please, do not underestimate the effort that is put in. As Minister Tom Pursglove said in the other place, the Child Maintenance Service
“is committed to delivering service and support to the highest standard and is working hard to transform itself into a more customer-focused, digital organisation, which I am sure is something we all welcome. Although there is still much more we can do, the CMS should no longer carry the stigma with which its predecessors were associated”.—[Official Report, Commons, 17/3/23; col. 1119.]
I pay tribute to the child maintenance team, its leadership and its delivery, and especially to the financial investigation unit. If noble Lords spent some time with it, they would see how amazing it is at finding things that other people have not been able to find. At this point, I pay tribute to Arlene Sugden, who led the organisation and has now retired, Chris Smith, and Stuart Richards. If I owed money, I would not want him on my back—I can tell your Lordships that.
Finally, if your Lordships have not gathered already, I am fully supportive of the Bill. I hope that the whole House will stand four-square behind it. I know that there are many other changes that can be made to the Child Maintenance Service and lots of other things we wanted to introduce that have not got here yet. I hope my noble friend the Minister will get them here as quickly as possible, and then we will speed up the process to get more money to children who really need it.
(2 years, 11 months ago)
Lords ChamberThe House will be very aware of this subject, which does keep cropping up. The House will be aware that, since 6 April 2017, families have been able to claim support for up to two children and there may be further entitlement for other children if they were born before 6 April 2017 or if an exception applies. As the right reverend Prelate will know, there are a number of exceptions, including any child in a household who is adopted, any child living long-term with friends or family or who would otherwise be at risk of entering the care system.
My Lords, can the Minister tell us what the Government are doing to help those having difficulty purchasing essentials due in some part to mandatory deductions from their universal credit?
The Government recognise the importance of supporting claimants to manage their liabilities. It is true that some households get into quite severe debt. Under universal credit, there is a co-ordinated approach to deductions from benefits which supports claimants to manage their financial obligations. The primary aim of deductions from universal credit is to protect vulnerable claimants by providing a last-resort repayment method for arrears of essential services. The House might be aware that the Government have reduced the standard deduction cap from 40% to 25% of the standard allowance in recent years.
(3 years, 4 months ago)
Lords ChamberThat the draft Regulations laid before the House on 18 and 20 October be approved. Relevant document: 16th Report from the Secondary Legislation Scrutiny Committee. Considered in Grand Committee on 21 November.
(3 years, 4 months ago)
Grand CommitteeThat the Grand Committee do consider the Cessation of EU Law Relating to Prohibitions on Grounds of Nationality and Free Movement of Persons Regulations 2022.
My Lords, this instrument was laid before the House on 20 October. It disapplies retained EU equal-treatment provisions relating to nationality and freedom of movement so that they cease to be recognised and available in domestic law in relation to access to social security, statutory payments, social assistance, housing assistance, education, training, apprenticeships and childcare-related matters.
These retained EU provisions have been redundant since the end of the transition period. The withdrawal agreement provides the necessary protections for those EU citizens who were resident in the UK before the end of the transition period and their family members. By disapplying the redundant provisions, this instrument furthers the Government’s aim of ensuring that all UK law is right for the UK. Correcting this deficiency in retained EU law will bring greater clarity to the UK statute book. I am satisfied that these regulations are compatible with the European Convention on Human Rights.
Prior to the UK’s exit from the EU, these equal-treatment provisions granted EEA and Swiss citizens rights to access benefits, services and educational entitlements on the same basis as UK nationals, if their presence in the UK was based in the exercise of specific freedom of movement rights. The UK voted to leave the EU and, as a result, freedom of movement between the UK and EEA countries came to an end on 31 December 2020. Equal-treatment provisions based in freedom of movement arrangements therefore became redundant.
Disapplying these redundant equal-treatment provisions clarifies the situation that is already in effect for EEA and Swiss nationals coming into the UK. In line with the Government’s manifesto commitment, EEA nationals are now treated on an equal basis with other non-UK nationals arriving in the UK after the end of the transition period, with the exception of those EEA or Swiss nationals granted status under the EU settlement scheme.
While the instrument does not effect a policy change for any group of EEA or Swiss nationals in the UK, I particularly emphasise that it in no way alters the rights of EEA or Swiss nationals that are protected under the EU-UK withdrawal agreement, the EEA European Free Trade Association separation agreement and the Swiss citizens’ rights agreement. They will continue to be able to access benefits and services on broadly the same basis as they did before the end of the transition period, and their rights to do so are protected by the European Union (Withdrawal Agreement) Act 2020. Additionally, we already have domestic law that protects individuals from discrimination. Retained EU provisions based on freedom of movement are therefore not only redundant but unnecessary.
In summary, this instrument is a technical correction of the statute book that will address a deficiency arising from retained EU law. I therefore commend the regulations to the Committee.
No other takers—I am shocked, given that it is such an exciting instrument. I thank the Minister for her introduction to these regulations, in which I am interested. I was going to say, “and all noble Lords who have spoken”, but it is just me. I am also grateful for the briefing on the regulations from the Minister’s officials. I confess that, despite reading everything I could, I am struggling to work out what these regulations actually change, if anything.
I read a summary of this instrument done by the House of Commons Library for a colleague at the other end. It noted that Parliament has already legislated to end the underlying right of free movement for EU citizens moving to the UK. The Immigration and Social Security Co-ordination (EU Withdrawal) Act 2020 repealed the main provisions of retained EU law relating to free movement and disapplied the equal treatment obligations supporting free movement, in so far as they were inconsistent with the UK’s immigration laws. However, the note went on to say that
“these equal treatment rights ‘would continue to apply in non-immigration contexts unless disapplied’. The draft measure now disapplies those equal treatment rights in the specific areas set out in the schedule, including social security payments and housing.”
The Minister said that these rights “became redundant” as a result of the 2020 Act having ended the underlying right to free movement. I am still not clear as to exactly what rights may still exist that this instrument is disapplying. Can the Minister clarify that? I can see that the aim is to make it clear that EEA nationals who are not subject to the settlement arrangements should have the same rights as anyone else subject to the points-based immigration system going forward. I am just not clear what, if any, rights they have now that they will not have once this instrument becomes law. If the answer is none, I ask the Minister to say that categorically for the record. It may be about legal clarity; I would just like to be really clear.
I want to make two other points. Regulation 4 makes changes to Regulation (EU) No. 492/2011. I looked this up; it turns out that it amends Article 7—it prohibits different treatment of EU nationals in respect of employment, social and tax advantages—to say that this will not apply in relation to the matters in the Schedule to this draft instrument, namely: social security, social assistance, housing, education and training, and childcare. Do Article 7 rights continue to apply to any other areas?
Finally, the instrument also removes Articles 9 and 10, which provide for the rights of EU nationals in relation to social housing and to state education for their children. Are there any other rights that EU or EEA nationals still enjoy that have not been repealed? If the answer is that any such rights that exist will be swept away by the sunset provisions of the advancing retained EU law Bill, why not wait for that rather than using Section 8 powers? I look forward to the Minister’s reply.
I thank the noble Baroness, Lady Sherlock, for her contribution and questions and congratulate her on her stamina in these matters. I will try to answer all the points raised.
The noble Baroness asked how the EU provisions to be disapplied became deficient or redundant. Prior to the end of the transition period, through the EU freedom of movement of persons rights, EEA and Swiss citizens had access to certain benefits, services and education entitlements. When the freedom of movement of EEA citizens ceased at the end of the transition period, the application of these rights became redundant, as the rights granted by these provisions have been redundant since the close of the transition period. They represent the deficiency arising from retained EU law. The regulations clarify the situation already in effect.
The noble Baroness asked what rights the provisions to be disapplied still grant. First, let me clarify that these regulations should not be understood as implying that these provisions continue to grant rights outside of the relevant matters as per Regulation 1(4). The department involved in these regulations examined the provisions as they relate to the benefits and services covered in the relevant matters and is confident that these rights are redundant as they relate to the relevant matters. We are disapplying them to clarify the position that is already in effect.
The noble Baroness, Lady Sherlock, asked what would happen if these provisions were allowed to remain on the statute book. These redundant provisions are not in line with domestic legislation on immigration and access to benefits and services. They therefore create confusion in the statute book. Not disapplying them would leave this deficiency in UK law unaddressed. It could also mean that EEA nationals who are not eligible for benefits or services could bring legal challenges against the Government to try to bypass domestic legislation by instead relying on those retained EU freedom of movement provisions. This would set back progress on implementing the public’s decision to leave the EU and end freedom of movement.
The noble Baroness asked me to clarify whether that was a change in policy. The answer is categorically no. These regulations do not effect any policy change; they are a technical rectification of the statute book to clarify the position already in effect after the end of the transition period. She asked why the regulations were being laid now. Why not let these retained provisions be sunsetted by a reform and revocation Bill? Work on the regulations was initiated independently of the Retained EU Law (Revocation and Reform) Bill under Section 8 powers from the European Union (Withdrawal) Act 2018. Those powers allow Ministers to address deficiencies in retained law. Section 8 powers expire on 31 December 2022, thereby creating a need to lay these regulations.
The noble Baroness also asked whether any rights still applied. Rights and entitlement for EEA citizens set out in the withdrawal agreement and domestic legislation still apply.
These regulations are a technical rectification to ensure that UK law functions with legal clarity. The retained EU provisions that they disapply are redundant, and that deficiency should be corrected. This instrument will not change the policy in place regarding any rights currently enjoyed by EEA nationals in the UK. However, it will bring greater clarity to the UK statute book. I therefore commend the regulations to the Committee.