Universal Credit

Patricia Gibson Excerpts

Tuesday 16th October 2018 Commons Chamber

[Alok Sharma]

It is interesting that the hon. Gentleman talks about employment on the day that we have reached a record low level of unemployment since 1975. The policies of this Government are clearly working: 80% of first payments are made fully and on time; in some cases, that figure gets up to 90%. It is important that we get the right information from people to be able to verify their costs. If we are able to do that, payments are made.

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

Despite the Minister’s responses today, universal credit is causing chaos, hardship and unnecessary suffering to people in my constituency as they seek to access essential support. Will he accept my invitation to visit my constituency to discuss the challenges of universal credit with my constituents so he can explain to them why he believes that universal credit is working?

[Alok Sharma]

I do visit jobcentres in different parts of the country. If the hon. Lady would like, we could have a discussion with the people in her jobcentre who are delivering this service; I am happy to arrange a call together with her.

Women and Equalities

Patricia Gibson Excerpts

Tuesday 9th October 2018 Ministerial Corrections

The following is an extract from Women and Equalities Topical Questions on Thursday 13 September 2018.

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

T5. It is extremely important that the injustice suffered by the WASPI women is not allowed to slip off the political agenda, because many women in my constituency are suffering terribly as a result. Will the Minister stand up for women and commit today to urging the Chancellor to put in place transitional arrangements at the autumn Budget?

[Sarah Newton]

The hon. Lady will be aware that £1.1 billion of concessions have been made, and it is really important to note that as a result of our reforms, more than 3 million more women will receive £550 a year more by 2030.

[Official Report, 13 September 2018, Vol. 646, c. 866.]

Letter of correction from the Minister for Disabled People, Health and Work, the hon. Member for Truro and Falmouth (Sarah Newton):

An error has been identified in the response I gave to the hon. Member for North Ayrshire and Arran (Patricia Gibson).

The correct response should have been:

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

T5. It is extremely important that the injustice suffered by the WASPI women is not allowed to slip off the political agenda, because many women in my constituency are suffering terribly as a result. Will the Minister stand up for women and commit today to urging the Chancellor to put in place transitional arrangements at the autumn Budget?

[Sarah Newton]

The hon. Lady will be aware that £1.1 billion of concessions have been made, and it is really important to note that as a result of our reforms, more than 3 million women will receive on average £550 a year more by 2030.

Funeral Poverty

Patricia Gibson Excerpts

Tuesday 11th September 2018 Westminster Hall

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

I thank the hon. Member for South Shields (Mrs Lewell-Buck) for the constructive and informed way she opened the debate. Funeral poverty remains a pressing issue, which affects far too many of our constituents. I have spoken in debates on this matter on every occasion it has arisen since I was first elected in 2015. I have spoken to far too many constituents who have been deeply distressed by the costs of burying their loved ones. As the hon. Member for Southend West (Sir David Amess) pointed out, there is a rare consensus on this issue, because we all recognise that it cuts across party boundaries.

The matter I keep returning to in these debates is that when a family loses a loved one, a bereaved person’s human instinct, through the shock, fog and bewilderment of grief, is to give the person they have lost the best and most dignified send-off they can. There is nothing else they can do. Often, understandably, thoughts about the cost of the funeral do not factor into their considerations at that time of grief, and only later—albeit when the grief is still raw—does the reality of the debt and the cost of that send-off become apparent. Too often, for too many people, the anxiety over this debt works against and interferes with the entire grieving process.

We can agree that, for those on benefits and low incomes, help with funeral costs has not kept pace with the cost of funerals. That must be a cause of great concern to all of us. In our constituencies, we have all witnessed the anxiety of those struggling to meet funeral costs for their loved ones, as they battle through their grief.

As we have heard from the hon. Member for Southend West, it is important to remember that, as well as the huge variations in the cost of funerals, funeral plans are not realistic for those struggling week on week to put food on the table. The over-50 plans we hear about can also mean that those on low incomes pay thousands upon thousands of pounds over many years, with the full amount paid never recovered by families, despite the deceased having paid in more money than the funeral actually costs.

Now that responsibility for funeral payments has been devolved to the Scottish Parliament, I look forward to a much more well-rounded and compassionate approach to support for bereaved families struggling with these costs. The Scottish National party Scottish Government plan that the funeral expense assistance benefit will replace the current DWP funeral payment by summer 2019, with an additional £3 million to support another 2,000 people each year who would have received no support at all from the DWP under the old scheme. They are also looking at uprating the flat-rate part of that payment to take inflation into account, unlike in the rest of the UK, where, as we heard from the hon. Member for South Shields, the payment has been frozen since 2003 at £700, which is a help, but is woefully unequal to the task of helping families with these costs. The SNP Government will also ensure that guidance is provided on funeral costs, funeral planning and strengthening consumer protection with regards to funeral plans. They will make a real effort to tackle funeral poverty by working with credit unions and delivering a social innovation fund.

Funeral poverty is a cruel and bitter obstacle to grief. Coping with the loss of a loved one is bad enough, but 12%—one in eight—of people report that they got into debt trying to pay for a loved one’s funeral. It is simply not acceptable that, in the increasingly unequal society in which we live, people often cannot afford to live and now, it seems, cannot afford to die, as I have pointed out in every single debate on the subject since 2015.

I am heartened by the Scottish Government’s measures. I urge the Minister to at least carefully study their proposals and try his best to match the commitment to supporting bereaved families at their most vulnerable time.

Widowed Parent’s Allowance

Patricia Gibson Excerpts

Wednesday 5th September 2018 Commons Chamber

[Justin Tomlinson]

May I first express my personal condolences to the family at this distressing time? I understand the points that the hon. Lady makes, and they are being considered. In the short term, I urge hon. Members to look at the other potential benefits that could be offered to support families, including universal credit and tax credits. I will return to update the House fully as soon as I can following the ruling by the Court last week.

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

In a debate on 2 March 2017 on bereavement support benefit, I pressed the then Minister on the issue of cohabiting couples. I pointed out that they are treated as couples for other benefits such as tax credits, but I was told that extending eligibility to cohabitees would “increase spend” and be “complex to administer”. Despite what the Minister has said about legal certainties, we know that many bereaved cohabitees and their children have lost out because of the UK Government’s reluctance to recognise them as families. In the light of the Court judgment and the hardship caused to bereaved cohabitees and their children, does he agree that the Government should apologise for their inaction and that, as soon as can possibly be arranged, this needs to be corrected retrospectively so that justice is obtained for the people affected?

[Justin Tomlinson]

This issue was considered at great length in debates on the Pensions Act 2014 and the subsequent regulations. It is not straightforward. How do the Government act as judge and jury in situations in which someone could be living with a different partner? At a time of great distress, the emphasis has to be on providing appropriate and quick support particularly targeted at those in the most need. Following the ruling in the Supreme Court, the points raised will be considered and I will come back as quickly as is appropriate to provide an update to the House.

Oral Answers to Questions

Patricia Gibson Excerpts

Monday 26th March 2018 Commons Chamber

[Kit Malthouse]

My hon. Friend is absolutely right, and is a renowned champion of those in poverty in his constituency. It is interesting to note that nearly three quarters of children in poverty move out of poverty when their parents move into full-time work. We must capture and use that in our constant fight against poverty.

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

17. Two thirds of children in poverty live in a household where at least one parent works. New analysis shows that child poverty will increase dramatically by 2030, with the main reason cited as UK Government cuts. Will the Secretary of State come to my constituency to see for herself the devastating effects of her Government’s cuts, which already have an impact on too many children in North Ayrshire and Arran?

[Kit Malthouse]

I have seen reports of the new analysis this morning and, obviously, we are more than willing to have a look. However, such reports—there have been several in the past few weeks—tend to accept in the small print that forecasting poverty in the future is a very inexact science and often leads to odd results, not least because they often do not take behavioural change into account. The whole thrust of the Government’s welfare reforms has been not just to ensure that we get assistance and money to people efficaciously, but to effect behavioural change because we know that accessing work is by far and away our most potent tool in the fight against poverty.

Scottish Welfare Powers

Patricia Gibson Excerpts

Tuesday 20th March 2018 Westminster Hall

[Bill Grant]

I do not think that I would pass judgment on the private sector system based simply on that one example. You can pick out poor examples from any system. Any identified problem will be rectified. The Government have been rectifying issues over a long period of time.

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

Are you seriously coming to the Chamber today and telling us that since you have been elected, no constituent has come to you to complain about the way their applications for DWP assessments have been treated? Is that what the hon. Gentleman is telling us? If he is telling us that, it must be the only constituency in Scotland where that is the case.

[Bill Grant]

I respect the hon. Lady’s intervention, but for clarity, I never indicated or suggested—sorry if you have interpreted it as such—

--- Later in debate ---

[Mr Sweeney]

I agree that the complexity of the social security system should not be underestimated, but none the less we should have committed at the outset to the objectives and the vision that we wanted to see, which we share. Surely they should live up to their rhetoric on this issue.

[Patricia Gibson]

The hon. Gentleman says that the Labour party has been leading from the front on this issue. In the light of that statement, I ask him whether he regrets, and would like to apologise for, the fact that 184 members of his party abstained on the Welfare Reform and Work Bill in 2015, thereby letting through £12 billion of welfare cuts.

[Mr Sweeney]

I am afraid that is a total misrepresentation of what Labour was voting for in that case. If anything, the SNP should apologise for abstaining on the Third Reading of the Tory Finance Bill just last month, when we were all in Parliament. I cannot speak for colleagues who were not elected at the time she refers to, but I can accuse the hon. Lady of that act just last month.

On the progress of the Social Security (Scotland) Bill and how complex it has been, even at stage 2 in February, Labour continued to challenge the Scottish Government to deliver a number of further improvements, which have been resisted. For example, a child benefit top-up of £260 per year was blocked by the Tories and the SNP voting together. Changes that would prevent the winter fuel payment as well as disability and industrial injuries benefits from being means-tested were backed unanimously by Labour, the SNP, the Tories, and the Greens—a good concession. Binding targets to boost the take-up of all benefits were also backed, and protection for carers from inflation—the current carefully crafted Scottish Government plans look set to save £5 million—was backed unanimously.

However, a requirement in law to secure the automatic splitting of universal credit so that women are protected from financial abuse was blocked. The competency of that is contained in section 30 of the Scotland Act 2016. The Tories and the SNP blocked that by voting together—just days before, somewhat ironically, the hon. Member for Central Ayrshire (Dr Whitford) introduced a Bill in this place on the same issue. It is an example of how the SNP talks a good game at Westminster, yet acts very conservatively at Holyrood. An attempt to secure a higher legal threshold to prosecute claimants who fail to notify a change of circumstances was also blocked when the Tories forced a vote on it.

There is clearly much more scope to improve the quality of the social security system in Scotland. The only party that has driven real change and a real defence of working people in Scotland who rely on a social security system and a safety net has been the Labour party at every stage. We should not forget that the only force that will ensure that we have real, radical change for disabled people, that we tackle poverty, and that we reinforce the safety net will be a Labour Government at Holyrood in Edinburgh, and at Westminster in London.

--- Later in debate ---

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

I will try to be brief. I am bewildered about what this debate is supposed to achieve. The hon. Member for Ayr, Carrick and Cumnock (Bill Grant) agreed with many of the points we put to him—for example, that social security is a human right. I wonder what the Minister will think of that.

We will take no lessons from the Labour party. It does not matter what the hon. Member for Glasgow North East (Mr Sweeney) says, £12 billion-worth of cuts on welfare went through in 2015 and 184 Labour MPs abstained. That is why we need to have people in here protecting Scotland’s interests.

The hon. Member for Ayr, Carrick and Cumnock talked of the need for mitigation. By definition, if we need to mitigate Tory cuts in Scotland, that suggests that the Tory cuts should not be taking place.

In setting up the new welfare system in Scotland, there has been widespread consultation. For the hon. Gentleman to suggest that it is some dark secret and nobody knows what is happening is clearly nonsense. His colleague, Adam Tomkins MSP, talked about the welfare legislation in Scotland as being landmark legislation and the great consensus around it. It is a pity that the hon. Gentleman cannot agree with his Tory colleagues in the Scottish Parliament. Adam Tomkins MSP congratulated the Scottish Government on bringing the legislation forward in the form that they did. It is very clear that the only people who are standing up for the people who find themselves relying on benefits—

[Andrew Rosindell (in the Chair)]

Order. I call Stephen Kerr.

Pensions Auto-enrolment

Patricia Gibson Excerpts

Wednesday 28th February 2018 Westminster Hall

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

We can all agree that auto-enrolment has been a positive development in helping to encourage people to save and prepare for their retirement. I have been sitting here and enjoying the unusual consensus. I thank the hon. Member for Chippenham (Michelle Donelan) for securing the debate; I agree with almost every point she made.

A good, clear pension plan is an important tool in tackling existing inequalities that need to be eradicated, with fairness at the heart of our system. If I may threaten the consensus for just a second, in all the talk about pensions and preparing for retirement, I am briefly reminded of the hardships that our WASPI women are going through. They thought they had a little security in retirement, but they found that was not the case. I know that is not the focus of the debate, but it is a reminder of the importance of pensions in people’s lives.

Auto-enrolment is to be welcomed, and everyone supports it, but a number of concerns, which hon. Members have touched on, need to be addressed. As the hon. Lady and others pointed out, progress in ensuring that self-employed people are included in auto-enrolment has been disappointing. The announcement of feasibility testing is positive, but it still risks leaving too many millions of workers behind. That matters because, as we have heard, 4.8 million people in our workforce—about 15%—are self-employed, so the numbers are not insignificant.

As far back as 2004, the Pensions Commission identified the self-employed as a group for which pension provision had always been deficient. The need to include self-employed people in attempts to improve pension provision for that group is hardly breaking news, but it simply has not been addressed. I know the Government have argued that that is a complicated issue—the hon. Member for Chippenham also set that out—but the fact that it is complicated does not mean that it should have been kicked into the long grass for as long as it has. There are too many people losing out on opportunities to build on their financial plans for retirement. The fact that something is difficult is not a reason not to do it.

It cannot be beyond the wit of Government. We have heard others, including the right hon. Member for Preseli Pembrokeshire (Stephen Crabb), tell us that we have a great Pensions Minister. I am sure that it is not beyond the wit of the Minister to try to address the issue of helping self-employed people to navigate their way through that difficulty, as set out by the hon. Member for Chippenham. I agree with her, and others, that it is imperative that those on low pay are covered and included in auto-enrolment, for exactly the same reason. As long as they are not, they are denied the chance to prepare financially for their lives after work.

The 2017 review indicated that bringing the low-paid into auto-enrolment would be of great benefit to those workers, but that will not be implemented until the mid-2020s. Given that we know that the earlier in life someone starts paying into their pension, the better their pension is, we need to make progress on that much more quickly. Those on low pay during their working life must not be denied the opportunity to build up a pension pot for their retirement.

The hon. Lady is absolutely correct that persuading young people to save for their pensions is important. The fact that the inclusion of 18-year-olds in auto-enrolment is not expected to be implemented until the 2020s is also extremely disappointing. With a pension crisis looming for younger generations, those who are now 18 years old will have lost out on precious years of potential pension savings if the issue is kicked further down the road. I agree with the right hon. Member for Preseli Pembrokeshire and the hon. Members for Chippenham, for Horsham (Jeremy Quin) and for East Renfrewshire (Paul Masterton) that that really needs to change.

I would say to the Minister that good progress has been made with pension auto-enrolment and it is right that that should be recognised, as the right hon. Member for Preseli Pembrokeshire and the hon. Member for Horsham pointed out. We have to recognise success when we find it, but there are still whole swathes of the working population who as yet are not eligible for auto-enrolment, and they are at risk of being left without enough years of pension savings if that is not urgently addressed. I know that when the Minister gets to his feet, he will tell us how he intends to do that.

I will end by saying—the Minister will have heard me say this before, if he was listening—that we need a full and independent pension commission, looking holistically at every aspect of pensions, so that we have a system that is as fair as possible for all. We all need to have a system that we can have confidence in and rely on when our working lives are over. We need a pension system that is sustainable and takes into account shifting variables such as life expectancy, which is drastically different depending where in the UK someone lives.

With 1 million pension pots accessed early since reforms enabled that to happen, with the self-employed and young people not included in auto-enrolment until the mid-2020s and with rising life expectancy, the issue of pension provision and pensioner poverty is becoming all the more urgent. That is why I am keen to hear what the Minister has to say on how he will move forward with this.

Work and Pensions Committee

Patricia Gibson Excerpts

Thursday 8th February 2018 Commons Chamber

[Frank Field]

I am immensely grateful to my hon. Friend for that question, because the central part of any business case for universal credit is that there will be a movement from benefits into work. We know the Government have no up-to-date data on that, yet they are pressing ahead. That is why I asked the Economic Secretary to the Treasury not to sanction further cash for this programme until the Department for Work and Pensions has produced a business case.

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

I thank the right hon. Gentleman, the Chair of the Work and Pensions Committee, for his work on this report. Given the key economic assumption underlying universal credit—the claim that it will deliver much improved employment outcomes for the vast range of people who claim it—and given that a full business case for the biggest reform of the welfare state in 50 years has not been made, does he share my concern that claimants have been pushed into dire financial straits because universal credit is simply not fit for purpose? We know the Government say that they are confident about the progress of universal credit, but does he agree that there needs to be more openness about this internal review?

[Frank Field]

There needs to be some internal sharing of information with the Treasury, if the Department has it, and the Treasury should put a stop to any expansion until it gets the business case. I underscore what the hon. Lady says: our constituents will be on the rough end of this if it all goes wrong.

Social Security

Patricia Gibson Excerpts

Monday 5th February 2018 Commons Chamber

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

I rise to focus on the pensions aspect of this debate. We would all agree it is the duty of the United Kingdom Government to make sure that pensioners fully understand the impact that pension changes will have on their retirement planning. This is, of course, an extremely complex matter, and we know that many people struggle to understand the impact that changes to their pensions will have on their pension pots. The movement from a basic state pension and a state earnings-related pension scheme—commonly known as SERPS—to a one-off calculation is far from straightforward, and it will have an impact on people’s ability to understand their pension pots. Indeed, some people who have been extensively contracted out will get just the basic state pension figure.

We have heard tonight from my hon. Friend the Member for Airdrie and Shotts (Neil Gray) that it is good that there will be a minimum guarantee linked to the consumer prices index, but there will also be some adverse impacts. We know, for example, that those who were contracted out were not necessarily aware and did not necessarily understand what it meant, and certainly could not and would not have anticipated that their future retirement income would be negatively affected by the Government’s changes to the state pension. Those without savings to fall back on, such as the WASPI women, are hit very hard. They face a significant loss of income and real hardship.

Many of us are tired of saying it, but I hope that the Minister is not tired of hearing it—he is hearing it, but he and his Government do not seem to be listening. The UK Government should have better communicated the impact of these changes on those who were contracted out. It is absolutely imperative that the UK Government make sure they adequately inform people of the impact of the new state pension on their pension pots, as they have a duty to do.

That is worth saying because, apart from Government Members, just about everyone agrees that the UK Government have completely failed in this duty with regard to WASPI women. Changes under the Pensions Act 1995 began to be made in 2010, but women were written to only from 2009. Many were simply not told, so they were completely unaware of the changes being made to their pensions. That is an appalling abdication of responsibility, and it shows complete disregard for the impact of such changes on the lives of those affected.

Many WASPI women were simply unaware of the changes, but the Government have not been listening. It is worth remembering that DWP research carried out in 2004 found that less than half the women surveyed were aware of the impact the changes would have on their state pension age, with awareness particularly low among those who would arguably be worst affected—women who were economically inactive.

In addition, the Pensions Commission said in 2005 that

“a policy of significant notice of any increase (e.g. at least 15 years) should be possible”.

In 2008, the Pensions Advisory Service also reported low levels of knowledge about the state pension and said that that “must be addressed” by the Government. The warning signs were all there, despite how much the UK Government insist that they did enough to inform women of changes to their pension age.

This whole episode has undermined the social contract that the state pension represents. If Members do not believe that, perhaps it is worth spending five minutes with a WASPI woman. With the impact of contracting out, it is extremely important that the Government tell the House what provisions are in place now, and have previously been in place, to ensure that people are fully informed of the impact on their pension pots. If some people are unable to make ends meet due to lower pension payments because of contracting out, the Government need to explain what support and advice will be made available to them.

The fact is that pensions are far too important to be kicked about by Governments of different political persuasions. Once again, as we have heard from my hon. Friend the Member for Airdrie and Shotts, we in the SNP are asking for an independent pensions commission, and we will continue to do so. Only then can we properly address the needs of pensioners and prepare for the looming pensions and savings crisis that many fear will come to pass. I draw the Minister’s attention to the spike in pensioner poverty, which shows that many of those in the over-60 age bracket are being failed by the Government.

[Stephen Lloyd]

Does the hon. Lady agree that perhaps one way forward is for the parliamentary ombudsman to look at what was clearly poor-quality communication, from the 1995 Act onwards, and to make a ruling on whether the communication was good enough? We would then find out for sure what I think is true, which is that there was poor communication. We rely on the parliamentary ombudsman to give us that steer.

[Patricia Gibson]

I thank the hon. Gentleman for his insight. That idea is worth pursuing, but, rather sadly, I fear that the WASPI women now feel that the only option left to them is a legal challenge in the courts. If that is where the matter finds itself, that in itself is an indictment of a Government who have let these women down. Either way, the WASPI women are not going to go away, and perhaps through the parliamentary ombudsman and perhaps through the courts, this matter is far from over.

The Joseph Rowntree Foundation has said that 300,000 more pensioners have been driven into poverty over the past four years, which is the first sustained increase in pensioner poverty for more than 20 years. That, on its own, should give us pause for thought. [Interruption.] The Minister shakes his head, but he should take it up with the Joseph Rowntree Foundation, which is a very credible organisation.

There has been a sustained attack on pensioners, and we saw that in the Government’s election campaign with the attack on the triple lock and the threat of a dementia tax. Thankfully those threats have receded, because they cost the Government their majority, but the matter requires the Government’s full attention. The Government should reflect on the electoral consequences, as well as the moral consequences, of these attacks.

According to the European Commission’s 2015 research, the UK has a wider than average gender pensions gap. We are trailing behind the rest of Europe on how we treat our pensioners, which is a matter the Government should take seriously. After the WASPI fiasco, confidence in pensions has been undermined at a time when we are trying to encourage younger generations to plan for their future. Those two situations do not sit side by side very comfortably.

An independent pensions commission would ensure that employees’ savings are protected and that a more progressive approach to fairer savings is considered, as we move towards a period when the new state pensions take effect. An independent pensions commission is needed more than ever. It is time for the Government to consider it seriously in the long-term interest of pension security, and I urge the Minister to do so.

--- Later in debate ---

[Drew Hendry]

I am going to make some progress, as this question needs answering. We are using the limited social security powers to support young families at key stages of children’s lives with the best start grant. We are providing free childcare—up to 45%. We are providing free school meals for primary 1 to 3 and expanding all early years. We are mitigating the Tory bedroom tax and maintaining council tax benefit. And we have the Scottish welfare fund.

[Patricia Gibson]

Will my hon. Friend confirm something that may be of interest to Conservative Members? Is he telling me that the Scottish Government have put in all these measures to tackle child poverty in the face of a £2.6 billion cut over 10 years?

[Drew Hendry]

My hon. Friend makes that point extraordinarily well; this comes against a background of having to backfill to deal with the poverty and misery caused by UK Tory policies. Lessons could be learned, but will they be? They should be, in order to provide justice, fairness and dignity. In order to achieve that—

Financial Guidance and Claims Bill [Lords]

Patricia Gibson Excerpts

2nd reading: House of Commons
Monday 22nd January 2018 Commons Chamber

[Ms McVey]

There will be a ban on pension cold calling, and we will work through the detail of how that will work best for consumers at home.

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

Will the Secretary of State give way?

[Ms McVey]

If I may, I will continue a little bit further and then I will take another question.

I will reflect on the passage of the Bill through the Lords. There was overwhelming support in the other place for the measures originally contained in the Bill. The amendments in the other place sought to include a Government manifesto commitment—a debt respite scheme—because noble Lords were concerned about legislative space. Some amendments made explicit in the Bill what was always implicit in policy, including making it clear that the single financial guidance body’s services are free at the point of use, and ensuring that the information, advice and guidance are impartial.

Other changes were more substantial, but none the less welcome. These ranged from the inclusion of a clause making it a criminal offence to impersonate the body to safeguarding clauses for its wind-up and requiring the FCA to create rules on signposting individuals to the body. Further additions include an interim fee cap for PPI claimants, which will ensure that CMCs charge fair and proportionate fees in relation to financial services claims during the interim period between Royal Assent and the introduction of the FCA’s fee cap, and making provision for the establishment of a debt respite scheme, which I will expand on shortly.

[Patricia Gibson]

Does the Secretary of State share my concern about the UK Government’s intentions with regard to adopting the provisions in my ten-minute rule Bill to do with director-level responsibility for unsolicited marketing communications? The Government have on two occasions set themselves a deadline to adopt this legislation, and on two occasions the deadline has passed. I hear what the Secretary of State has said about the provisions in this Bill, but is she concerned, like me, that it will be confined to protecting consumers with regard to pensions, not in a whole host of areas right across the marketplace?

[Ms McVey]

We are of course looking at pensions today, but other rules, regulations and laws are in place to protect people from unsolicited, unwanted cold calls and the Department for Digital, Culture, Media and Sport is looking at how to strengthen them further. I now want to address some of these issues.

--- Later in debate ---

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

I am delighted to contribute to today’s debate. The Bill deals with a range of issues, but I want to focus on pensions. The pensions market is often complicated and confusing, so any moves to make it more accessible to consumers must of course be welcomed, although we on the Scottish National party Benches are still disappointed that the Government have not championed a fully independent pensions commission to look at all aspects of pensions. We want a pensions system that is fair for all, but the opportunity to achieve that has not been presented today. However, we will continue to argue for it.

We know that there is a challenge in addressing consumer confidence on pensions. Too many people feel that pensions, though important, are over-complicated, and that can create inertia and inaction. That can have a profound effect on pension outcomes, as the decisions that consumers make can have serious financial consequences for their future. The Bill offers a perfect opportunity to introduce a legal duty of care on financial institutions and to put the most vulnerable members of our communities at the heart of decisions and services that can be used to protect them. It is disappointing that that has not been enshrined in the Bill, but I am confident, given what I have heard today, that the Minister is paying close attention to that point.

We need to be sure that consumers have access to the best independent advice, especially those who are vulnerable. Pension matters are confusing and can be complicated. We need to be confident that, whatever decisions people make about their pensions, they are properly and independently informed. I wonder how many consumers are even aware of Pension Wise, which offers free independent advice on pensions. What more can the Government do to promote such services? I heard the Secretary of State talking earlier about the service’s reach being improved as it is amalgamated with other services, but sadly I did not hear any details about how that might happen. We have to remember that those most in need of independent financial and pension advice are often the hardest to reach.

The Financial Conduct Authority pointed out that consumers may be choosing to draw down their pension instead of shopping around for what may be a more appropriate pension product because they find choosing between the alternatives simply too challenging. The challenge for those of us trying to understand pensions and how to get the best deal has been complicated by the introduction of pension freedoms and new savings products. There is nothing wrong with introducing such freedoms to allow people more say and choice about financial options in retirement, but vital safeguards for older people who may choose to free up funds were missing or not prominent enough when such schemes were introduced. More work needs to be done to ensure that those who choose to free up funds get the financial advice about the long-term implications of making such choices that is correct for their particular circumstances, especially as so many of us can expect to live long lives in retirement. We need to be careful that we are not living longer simply to live in poverty and that the vulnerable are not easy prey for those who would take advantage.

Poor advice on pension decisions can lead to years or even decades of lost benefits and a much reduced quality of retirement. I understand that the aim of merging the current services into one is to create a more efficient service, but I want more detail on how that will be done in practice. What specific measures will be put in place to ensure that the new service will actively engage with people of pension age? Australian research into that issue shows that a substantial minority consume their pension pots quickly, with around 25% of people exhausting their pot by the age of 70 and 40% by 75. That really should give us pause for thought.

As we heard earlier, accessing pension pots early has become the new normal, but the FCA has expressed alarm that many who do so do not access independent, impartial advice. Indeed, only about 20% of those who accessed their pension pots in the third quarter of 2016 had a Pension Wise appointment, either by telephone or face to face. As for the other 80% who accessed their pension pots, one has to wonder what advice they received—if any. Did they get the best advice as they made that important decision? Were they vulnerable consumers? How can the interests of such people be best protected? I am sure that the Minister remembers the fallout from consumers taking out endowment mortgages because the advice they were being given was not always the most robust. We do not want to be looking back at this debate in 10 years’ time and saying the same about those who accessed their pensions early.

If we do not address the complexity and confusion around pension information and the difficulty of reaching some of the most vulnerable consumers—those who are arguably the most in need of robust independent advice—we shall only see younger generations feeling alienated from the whole concept of long-term saving for retirement. The SNP welcomes the fact that clause 2 includes a recognition of the need to bear in mind the needs of those in vulnerable circumstances, but I cannot impress it strongly enough on the Minister that we need more detail of how that will work in practice. What statutory weight will it be given? Much more detail is needed on how free independent pension advice can extend its reach, and I look forward to hearing from the Minister.

The Bill does seek to address the need to protect vulnerable consumers, but more robust measures are needed. We know that scam calls are a huge issue in our communities, with 10.9 million consumers receiving unsolicited contact about their pension since April 2015. I continue to wait for the UK Government to deliver on their promise to adopt into legislation my ten-minute rule Bill on unsolicited marketing calls. Despite enthusiastic initial support, the dates mooted for bringing it in— April 2017 and October 2017—have passed without incident or explanation from the Government despite my best efforts to elicit some kind of response via umpteen written questions, questions on the Floor of the House, a point of order, about half a dozen letters to the relevant Secretary of State, and other ingenious ways. Support for that Bill has clearly waned somewhat and that is a real cause for concern, especially given that I have heard warm support from Government Members for measures in that area.

The new plan to bring forward proposals to tackle cold calling must focus on director-level responsibility if any such measures are to have the required strength to deal with this blight on consumers. Such proposals ought not just to be about pensions—although they are a very important area—because all consumers in all industries and all sectors must be protected, and I am keen to hear whether that will be the case. I realise that not all areas are within the scope of the Bill or for the Minister to decide upon, but I know that he will take that point back to his colleagues with great enthusiasm. I am becoming increasingly impatient with the delays, as are my constituents, people across the UK and, I expect, Members on both sides of the House. So when I hear that action on unsolicited marketing will be taken in “early 2018”, if the Minister is being kind, he will understand my scepticism about yet another deadline and what this “action” will be. Will there be any measures to deal with director-level responsibility? If not, why not? Perhaps the Minister can address that in his closing remarks.

If we are banning cold calling to protect people’s pensions, that is an admission that cold calling is a problem. If it is problem with pensions, it is a problem for all consumers in all areas. We need to protect people, and cold calling causes fundamental problems. I am extremely disappointed with the shilly-shallying around extending the recognition of the need to protect people outwith the pensions sector. The UK Government committed to considering director-level responsibility, even going so far as to put it on their website for well over a year. It is therefore a bit curious that they have gone suspiciously quiet on that despite, as I say, my best efforts to use every means available to me in this House to elicit some kind of response.

For consumers who want to access their pension early and to do so based on sound advice, we need to ensure that they are making the correct decisions, and I say good luck to them. However, our concern must be for those who do not have access to robust independent advice that safeguards their long-term financial interests and who will find themselves in financial difficulties as result of poor advice or a lack of advice. I want the Minister to put some flesh on the bones of how the reach of financial advice will be extended, particularly to vulnerable consumers. I remind the Minister that there are thought to be around 800,000 people living with dementia in the UK. Even conservative estimates suggest that by 2030, that figure could be as high as 1.2 million. Their interests must be protected with demonstrably robust measures and a genuine duty of care. Policy making in this area must be mindful of and guided by that notion, and a new approach is essential to improve guidance usage among non-advised customers. The SNP sees the Bill as a positive step forward, but there is more to do, and a few minor legislative changes could save consumers now from many potential difficulties in the future.

[Rachel Maclean (Redditch) (Con)]

It is a great pleasure to follow the hon. Member for North Ayrshire and Arran (Patricia Gibson).

I rise to support the Bill. It is a key part of our Conservative philosophy to back responsible financial management, and the Bill contains measures to help individuals manage their finances responsibly, which is something we all support. It is important to acknowledge the great strides this Government have already made. As a small employer in my previous life, I saw the impact of auto-enrolment. The Government were very successful in encouraging people—particularly younger people, who often fail to save for their pension and their retirement—to take part in an auto-enrolment scheme. The statistics are positive. We now see 16.2 million people saving for their pension in that way, up from 10.7 million in 2010.

I have a few remarks and a couple of suggestions for the Minister, and I seek a few assurances. I promise that my speech will be short.

First, I have touched on my experience as an employer. Will the Minister consider the impact on small businesses? The hon. Member for Oldham East and Saddleworth (Debbie Abrahams) mentioned the self-employed. Small businesses and small employers have to think about the right auto-enrolment system for their staff and for themselves. Will the single financial guidance body have the remit to cover that issue for employers and employees?

Secondly, how will the new body seek to target advice at young people specifically? Young people are often at risk of poor financial planning and of falling prey to some of the worst debt issues. They are most likely to be at risk of being influenced by social media and of inadvertently falling into debt, sometimes because they are not engaged with the financial system.

We have heard much in this Chamber about students and student loans. When students consider their future, it is important that they get accurate advice on student loans. Unfortunately there are many myths out there in the public domain, and it is important that that misinformation is addressed so that students have accurate advice, outside the heat and light of the political spectrum, when undertaking that significant step to secure their future.

Will the body cover credit unions? I have a pertinent issue right now with a credit union in my constituency. Concerns are being raised about people who are dealing with credit unions and about how those people will seek advice.

Many people have mentioned cold calling, and I wish to add my voice. I am the daughter of an over-80-year-old dementia sufferer, and I have seen at first hand how many calls she receives. These companies are completely flouting the Telephone Preference Service regulations. There is no recourse for people in that situation to take action, and why should they have to? It is completely unfair that companies are preying on them.

[Patricia Gibson]

The hon. Lady correctly says that there is no recourse for people who are plagued by cold calls. Does she agree that cutting the problem off at source by having director-level responsibility would be a very effective way forward?

[Rachel Maclean]

I thank the hon. Lady for her intervention. She made some excellent points in her speech, and I hope the Minister will consider them. Getting this right so that we treat the most vulnerable in our society well is at the heart of what this Government are doing, and we need to go further in this Bill, as well as through other measures.

I urge the Minister to work closely with the Secretary of State for Education. We have seen the introduction of financial education in our schools, and the previous lack of financial education is part of the root cause of some of the issues we seek to address. We are seeing people getting into debt, sometimes through no fault of their own, simply because of their lack of financial education and their lack of capacity to manage their finances at an early age.

People are now so influenced by the world of social media, and it is all too easy for them to think that many of the positive things they see on social media could be within their grasp, if only they took out a loan or got into debt to afford holidays, clothes, cars or whatever it is—it can seem very easy to people. I call on the Minister to work with colleagues in the Department for Education to introduce education on financial responsibility at an early age so that people get into good habits early.

I finish by welcoming the measures in the Bill. At our surgeries we have all seen the suffering that getting into debt and a lack of advice can bring. I am glad that there will be advice and support for the people who need it most.