Public Authorities (Fraud, Error and Recovery) Bill

Andrew Murrison Excerpts
Andrew Western Portrait Andrew Western
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I am sure the hon. Member for Torbay (Steve Darling) is grateful to you for that clarification, Madam Deputy Speaker, even if I am not, as Jenny would always be most welcome on this side of the House.

I hope that I have reassured the hon. Gentleman that we do have the legislation required to act.

Andrew Murrison Portrait Dr Andrew Murrison (South West Wiltshire) (Con)
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The Minister said that powers exist, but, plainly, they are not working, because we know that “sickfluencers” are doing their deeds and people are responding to them, particularly in the mental health sphere, where many of the claims are made. Indeed, we know that officials, or those acting on behalf of officials, are looking out for buzzwords, because, if there is a buzzword in there somewhere, they can bank the case and move on to the next one. Therefore, something plainly needs to be done to stop this. Will he look again at the Opposition’s new clauses 8 and 21, which would ensure that “sickfluencers” are targeted specifically, and say what, in the Government’s amended terms, they would do to deal with this particular group that are contributing significantly to the failure identified by my right hon. Friend the Member for Goole and Pocklington (David Davis) in relation to the amount of money that we are able to claim back from the huge sum that is lost to fraud every year?

Andrew Western Portrait Andrew Western
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I very much agree with the right hon. Gentleman that more needs to be done; what we differ on is the need for specific legislation in that regard. Where we are falling down at present is in the scale of the activity we are undertaking. We could be doing significantly more at the moment, but as I said in response to the previous intervention, I have commissioned work to ensure that that happens. We already routinely contact social media companies to ask them to take down specific posts that could help people to commit fraud against the welfare system. I am very happy to consider practical points, but I am convinced that we have the legislative weaponry required to take the necessary action to deal with people who are encouraging others to commit fraud, both online and elsewhere.

Government amendments 23, 24, 39 and 40 bring into scope the kind of information necessary for fraud investigations and enable the PSFA and DWP to compel certain types of special procedure material, including banking records or records of employment, in line with the policy intent. Requesting this type of information is not new for DWP and occurs under its existing powers. The amendments ensure that the PSFA and DWP can compel this information to support fraud investigations, while also ensuring that important exemptions are in place, such as those for excluded material and journalistic material.

Government amendments 30 and 31 seek to address two separate issues in respect of clause 67. Government amendment 30 includes a provision in the Bill so that the powers granted to the PSFA under the Police and Criminal Evidence Act 1984—or PACE—by clause 7 of the Bill are exempt from the application of clause 67(5). This will ensure that the clause does not interfere with existing PACE provisions in relation to legal professional privilege, enabling the Bill’s PACE measures to function as intended.

Government amendment 31 removes subsection (6) in clause 67, which currently overrides existing self-incrimination protections on the PSFA’s information-gathering powers and PACE powers. This allows the common law principle of the privilege against self-incrimination to apply in the usual way—under the information-gathering powers—and ensures that the proposed PACE powers align with established PACE practices. The amendments ensure that clause 67 provides essential safeguards for the PSFA powers in the Bill related to the processing of information.

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Government new clause 17 and Government amendments 32 and 46 ensure that the existing information gathering powers contained under sections 109A to 109C remain unchanged by the Bill for Scottish Ministers. That has resulted in some reordering and redrafting in clause 72, where the DWP’s new information-gathering power under the Bill is held. Government amendment 35 clarifies the position in relation to devolved benefits in clause 85, ensuring that the exemptions contained in proposed new section 109H do not impact Scottish Ministers’ powers under the 1992 Act.
Andrew Murrison Portrait Dr Murrison
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The Minister is presumably keen to determine how much money is lost to fraud in Scotland, and I imagine he will require the Scottish Government to report back to the UK Government on their progress in clamping down on benefit fraud, but the same should apply in the rest of the country. That, of course, is the purpose of new clause 13, which would require an annual report on the amount of money recovered through the processes that he has outlined. Will he accept new clause 13? Will he also assure me on the point about the Scottish Government’s reporting of fraud?

Andrew Western Portrait Andrew Western
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I assure the right hon. Member on his point with regard to the Scottish Government. However, I will resist new clause 13 because the publication of the DWP’s annual accounts will provide sufficient information about our performance on fraud and error.

Government amendment 42 specifies that the functions of the independent person who can be appointed by the Secretary of State in clause 87 do not apply to devolved benefits unless those are delivered by the Secretary of State under agency agreement. Government amendments 60 and 67 will amend the time required for compliance with a production order served in Scotland. That is to match normal conventions in Scotland. Government amendment 43 ensures that the new debt recovery powers taken by the Secretary of State under the Bill apply only to devolved benefits, while the Secretary of State recovers devolved debts under agency agreements.

Government new clause 18 and Government amendment 33 are consequential amendments to the Social Security Fraud Act 2001 and ensure that the powers of Scottish Ministers under the 2001 Act are unchanged by the Bill. Government amendments 36, 37 and 38 seek to clarify exemptions in the DWP’s information-gathering powers to deliver the intended policy outcome.

A key safeguard in the new DWP information-gathering powers is the exclusion of personal information about users of particular types of free services, such as advocacy and advice services that offer crisis support, for example when someone is fleeing domestic abuse. The intent of the safeguard is to ensure that nobody is deterred from seeking the support they need when they need it. However, the current drafting of that exemption in the Bill as “not for profit” is too broad. That excludes certain information that is very likely to be relevant to a DWP fraud investigation. For example, it prevents the Department from compelling information from housing associations, such as an individual’s address or tenancy, which can be instrumental in proving or disproving a suspicion of fraud.

Winter Fuel Payment

Andrew Murrison Excerpts
Wednesday 19th March 2025

(1 month, 1 week ago)

Commons Chamber
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Helen Whately Portrait Helen Whately
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My hon. Friend makes an important point about transparency, and he recognises that this policy has had an impact not only on pensioners, but on other parts of Government, and therefore on other constituents. It is another thing that I hope the Government Back Benchers in the Chamber are taking note of, to pass on to their colleagues who, for some reason, have chosen not to be present to discuss this topic this afternoon.

Andrew Murrison Portrait Dr Andrew Murrison (South West Wiltshire) (Con)
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My hon. Friend is being exceptionally generous in giving way. Does she agree that the Government need to be completely transparent about the costs of this policy? It has been estimated that it will cost the NHS—already pressed—£169 million. We know from NHS England that 100,000 extra people aged 65 or over have been through A&E this relatively warm winter. Is this policy not a case of robbing Peter to pay Paul?

Helen Whately Portrait Helen Whately
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My right hon. Friend, given his experience in this area, will know very well the connection between heating and health, particularly for older people. The Government must surely ensure that they understand the knock-on impact of the cut to the winter fuel payment on older people’s health, and therefore on admissions to hospital and on hospitals’ ability to cope. As we know, there are then the consequences for older people, who, when admitted to hospital, often end up having long hospital stays, with significant loss of independence and reduction in quality of life as a result.

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Torsten Bell Portrait Torsten Bell
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No, the change that we were elected to introduce was to save our NHS and to return our economy to growth so that we can raise living standards for pensioners and for workers right across the country. That is the change that we were elected to deliver and that is what we are going to do.

Andrew Murrison Portrait Dr Murrison
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The Minister is being generous in giving way; congratulations to him on making the best of a bad job. He knows that old people die in cold homes. In 2017, the Labour party did some research on which to attack the Conservatives, which showed that 4,000 old people would probably die in the event that we removed winter fuel allowance; we did not do that. I wonder whether he got his officials to repeat that research and, if so, what it showed.

Women’s Changed State Pension Age: Compensation

Andrew Murrison Excerpts
Wednesday 15th January 2025

(3 months, 2 weeks ago)

Westminster Hall
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Andrew Murrison Portrait Dr Andrew Murrison (in the Chair)
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We are massively oversubscribed. It is plain that we are not going to get everybody in. I remind those who wish to speak that they should bob. I also ask that, voluntarily, Members restrain themselves to two minutes. If we do that, we will get most people in, but not everybody.

John Hayes Portrait Sir John Hayes (South Holland and The Deepings) (Con)
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I beg to move,

That this House has considered compensation for women affected by changes to the State Pension age.

It is a pleasure to be able to speak in this Chamber and, as I often do, to draw a very substantial crowd. The genesis of betrayal is trust—the kind of trust that underpins the democratic legitimacy of Parliament and on which the authority of the Executive is founded, and the kind of trust that our constituents, when they send us to this place to exercise our judgment on their behalf, rely upon. Their faith in us is that we will honour what we say we will do and that when we make pledges, they are not empty pledges but are meaningful. When trust is breached and broken, the whole of that legitimacy is undermined.

That is precisely what has happened in the case of the so-called WASPI women—the Women Against State Pension Inequality Campaign. I will use the acronym, because it has become a familiar one to any of us who have taken an interest in this matter, as I have over some time, and as have the public. This campaign is a campaign for no less than justice, to restore trust.

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Susan Murray Portrait Susan Murray (Mid Dunbartonshire) (LD)
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I rise to speak as a WASPI woman myself, and I am very proud to associate myself with this campaign. I know that many people feel that perhaps we should perhaps not be entitled to compensation, because we were able to get mortgages and buy our own homes, we were able to generate more capital wealth, and many of us have private pensions. However, I personally had to stop work because my husband became ill, and I was looking forward to a retirement where my only income would have been the state pension. I am very thankful for my health; I knew that the retirement age had gone up, and when the right hon. Gentleman talks about skills and abilities—

Andrew Murrison Portrait Dr Andrew Murrison (in the Chair)
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Order. Interventions should be short.

Susan Murray Portrait Susan Murray
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I am sorry, Dr Murrison.

I was able to use my skills and abilities to become a councillor in 2022, and I am now looking forward to a much better retirement. However, does the right hon. Gentleman agree that the Government should do a U-turn and implement the ombudsman’s recommendation?

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None Portrait Several hon. Members rose—
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Andrew Murrison Portrait Dr Andrew Murrison (in the Chair)
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Order. Colleagues will have done the maths. Not everybody is going to get in. I am reluctant to introduce a formal time limit, but you really ought to limit yourselves to two minutes, please. I am sure John McDonnell will be an exemplar.

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Kirsty Blackman Portrait Kirsty Blackman (Aberdeen North) (SNP)
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Thank you for chairing this debate, Dr Murrison. I thank the right hon. Member for South Holland and The Deepings (Sir John Hayes) for securing it and allowing us the opportunity to speak.

It is truly shocking that the Government were willing to apologise, admit that there had been maladministration and then to say, “Sorry, we’re not doing anything about it.” The WASPI women have run one of the best campaigns I have ever seen. Imagine this society and economy without the contribution of the WASPI women. These women were told throughout their careers to be quiet, and were told that they were not as valuable as the men who were working with them. These women quietly got on with the job, raised children, looked after parents and worked incredibly hard for less money than their colleagues. These women put so much in, and made these islands what they are today.

The UK Government are sitting there knowing that they wronged this group of women and are unwilling to do anything about it. What would the Treasury’s coffers look like if they did not have the £200 billion from equalising the state pension age? Imagine what we have asked those women to put up with throughout their time, and this Parliament is saying to them, “You’re still not worth it. You’re still not valuable. You still do not deserve compensation, despite the fact that we’ve wronged you.”

The Government know that they are wrong; they know this is the wrong decision. What they need to do now is put it to a vote on the Floor of the House and give every single MP the opportunity to walk through the Lobbies to make clear their individual views on the actions being taken towards the WASPI women and the principle and administration of compensation. The WASPI women deserve compensation. The Government need to give us a vote.

Andrew Murrison Portrait Dr Andrew Murrison (in the Chair)
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Colleagues, the wind-ups will begin at 3.28 pm.

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Lillian Jones Portrait Lillian Jones (Kilmarnock and Loudoun) (Lab)
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I congratulate the right hon. Member for South Holland and the Deepings (Sir John Hayes) on securing this important debate. I have a long record of supporting and have worked closely with the WASPI women, both before and after being elected as their MP. I believed in their cause then, and I still believe in their cause today.

The Government were right to apologise for the delay in writing to the 1950s-born women, and they were right to acknowledge that there are lessons to be learned. Those were important first steps. However, I am very disappointed by the Government’s decision not to fully implement the PHSO recommendation to pay compensation. Let me explain why.

Claiming that most 1950s-born women knew that the state pension age was increasing is not accurate. That statistic is from a 2006 survey that referred to a general awareness across the whole population about future changes to the state pension age. It did not ask whether people knew about the specific impact of state pension age changes on them as individuals, and only around 5% of survey respondents were 1950s-born women.

For many, the abrupt change meant they were left with fewer financial resources, longer working years and, in some cases, significant personal distress, especially for women in low-paid jobs. The financial hardship that WASPI women have experienced is a direct consequence of the pension age increase. The parliamentary ombudsman ruled that the national financial challenges should not be a barrier to awarding compensation.

Although compensating WASPI women may not be an easy administrative task, that is not a reason for avoiding action. Government is difficult, but that is not a valid excuse. I am disappointed that the Government decided not to implement all the recommendations of the parliamentary ombudsman, who laid the report before MPs and handed the role of compensating WASPI women to Parliament. That is why WASPI women are so angry.

Every woman has a right to be able to plan for a dignified and secure retirement. I therefore urge the Government to look again at the ombudsman’s recommendations, do the right thing and ensure that WASPI women get the financial justice that they so deserve.

Andrew Murrison Portrait Dr Andrew Murrison (in the Chair)
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Jim Shannon, you have 30 seconds.

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Steve Darling Portrait Steve Darling
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Yes, and my hon. Friend also reminds me of Marilyn in my constituency, who suffered a significant illness and would have benefited from compensation—as would Pam, who cared for two terminally-ill family members. I totally agree with my hon. Friend.

What a baptism of fire this is for the new Minister, but we need him to address the real issues. He must not be wilfully blind to the recommendations of the ombudsman. I would also welcome an explanation why an answer to my named day question, which was named yesterday, remains outstanding.

Andrew Murrison Portrait Dr Andrew Murrison (in the Chair)
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Commendably brief, if I may say so. I call the Opposition spokesman.

DWP Estate: Office Closures

Andrew Murrison Excerpts
Thursday 17th March 2022

(3 years, 1 month ago)

Commons Chamber
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Chris Stephens Portrait Chris Stephens (Glasgow South West) (SNP)
- View Speech - Hansard - - - Excerpts

(Urgent Question): To ask the Secretary of State for Work and Pensions if she will make a statement on proposed office closures in the Department’s estate.

Andrew Murrison Portrait Dr Andrew Murrison (South West Wiltshire) (Con)
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On a point of order, Mr Speaker. May I seek your guidance on whether it is orderly for an hon. Member who has taken very substantial donations from a trade union to ask an urgent question on a matter of direct interest to that trade union?

Lindsay Hoyle Portrait Mr Speaker
- View Speech - Hansard - - - Excerpts

We need to be careful. Is the right hon. Gentleman sure that the hon. Member for Glasgow South West (Chris Stephens) took the donation, or was it an agreement with the constituency party? This is a very serious allegation. Is it a constituency party donation or was it donated directly to the hon. Gentleman?

Andrew Murrison Portrait Dr Murrison
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It is in the Register of Members’ Financial Interests.

Lindsay Hoyle Portrait Mr Speaker
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That is not what I asked. We will leave it for now. We had better move on.

Intergenerational Fairness

Andrew Murrison Excerpts
Lord Field of Birkenhead Portrait Frank Field
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It is, and my hon. Friend’s intervention could not be better timed. Members who followed closely the Archbishop of Canterbury’s Christmas message will know of an example from Feeding Birkenhead. A family would lower their child into a supermarket waste bin to scavenge for food before rescuing them and seeing what food they had. The mother is suffering from cancer. She is now fed by Feeding Birkenhead with food that would otherwise go to the tip, but she says that she has never been better fed. Is this House prepared to continue policies that put so much pressure on working-age families that that example will no longer be exceptional? More and more of us will be troubled by examples of our constituents nobly not feeding themselves, as my hon. Friend says, and it will happen more regularly. Destitution is an issue.

Andrew Murrison Portrait Dr Andrew Murrison (South West Wiltshire) (Con)
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I agree with the argument that the right hon. Gentleman is developing, but what he is suggesting would be politically unpalatable. Given that the majority of healthcare costs that we generate in our lifetimes come at the extremes of life, does he agree that one way of selling this to the population, and especially those pensioners who are principally in the frame, would be to say that the £2.2 billion per annum that the 2.5% element of the triple lock will probably generate by the end of this decade might be hypothecated into the national health service? In that way, we might gain some level of acceptance from pensioners.

Lord Field of Birkenhead Portrait Frank Field
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Again, I could not agree more. I did not want to fan out the debate—I wanted to keep it as tight as possible so that we might get some agreement—but these are proper options that have to be considered. There is no way, sadly, that we as pensioners can get all the goodies and expect other people to pay for them. The issue of how we integrate care into the NHS will grow in importance as each month of this Parliament passes.

The fourth and last way in which we could keep the triple lock would be to raise the retirement age continually. Again, I make a plea to Front-Bench and Back-Bench colleagues, because such a policy would adversely affect our constituents almost more than any other. The Select Committee has published the names of the constituencies where the average life expectancy for males is such that they simply will not reach retirement age if we say that we will square the books by increasing the retirement age from 68, which is the figure that it is expected to rise to, to 70 or 71.

There is a commonality between the constituents of my hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams), who leads for the Opposition on these matters, and my constituents. We do not say that no male in our constituencies will on average receive a pension if we raise the retirement age to 70 or 71, thank God, but we know that swathes of our poorer, older and frailer constituents will not actually reach the retirement line—the point at which they pick up the state retirement pension—at the age of 70 or 71, because they will simply have died.

Welfare

Andrew Murrison Excerpts
Monday 21st March 2016

(9 years, 1 month ago)

Commons Chamber
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Stephen Crabb Portrait Stephen Crabb
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Spending on welfare is rising, so, yes, the budget is increasing. I repeat that the Government have not got plans for further welfare savings beyond those that Parliament has already voted for, and we will focus on implementing them.

Andrew Murrison Portrait Dr Andrew Murrison (South West Wiltshire) (Con)
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I congratulate my right hon. Friend on his appointment and statement. In May, he and I stood on a manifesto that pledged to protect pensioner benefits, so I am sure that under his stewardship there will be no backsliding on our commitment to older people.

Stephen Crabb Portrait Stephen Crabb
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The commitment and promises that we made in our manifesto were clear, and the Government are absolutely focused on delivering those promises and keeping our commitments to the British people, including pensioners.

DWP Data

Andrew Murrison Excerpts
Tuesday 21st July 2015

(9 years, 9 months ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

Each Urgent Question requires a Government Minister to give a response on the debate topic.

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John Bercow Portrait Mr Speaker
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Order. I wish to say two things. First, I remind the House that moderation and good humour are underlined in “Erskine May” as being of the essence of good parliamentary proceedings. Secondly, it is important to say at the start that this urgent question is a narrow one, not an opportunity for a general exchange about employment support allowance or incapacity benefit, or the merit or demerit of the Government’s policies on those matters. There have been many such debates. This is an occasion for a narrow focus on the issue of data, upon which the urgent question was focused, so our proceedings will be tightly constrained. I do not intend there to be long exchanges on this matter. Perhaps we can be led, in a statesman-like manner, from the Government Back Benches by Dr Andrew Murrison.

Andrew Murrison Portrait Dr Andrew Murrison (South West Wiltshire) (Con)
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My right hon. Friend will be aware of the well-established link between good health, particularly good mental health, and work. Will she ensure that in the long term her Department gathers information that will support or refute that assertion?

Priti Patel Portrait Priti Patel
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Absolutely; we will be doing exactly that.

Disability Benefits and Social Care

Andrew Murrison Excerpts
Wednesday 20th June 2012

(12 years, 10 months ago)

Commons Chamber
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Andrew Murrison Portrait Dr Andrew Murrison (South West Wiltshire) (Con)
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My hon. Friend, like me, will have constituents who have found themselves at the whip end of work capability assessments conducted by Atos. I hope that her PIP assessments will be a great improvement on that and that we have learned the lessons from Atos and the work capability assessment criteria set out by the previous Administration. Is she able to give me that commitment?

Maria Miller Portrait Maria Miller
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We certainly need to ensure that lessons are learned from some of the problems we inherited on the work capability assessment. Many have already been learned and there is a clear read-across in the work we are doing. Although the PIP assessment is very different from the work capability assessment, there are many lessons to be learned.

CPI/RPI Pensions Uprating

Andrew Murrison Excerpts
Thursday 1st March 2012

(13 years, 2 months ago)

Commons Chamber
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John McDonnell Portrait John McDonnell
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I scoured the Welfare Reform Bill Committee discussions on that point, and as I understand it, those on the Labour Front Bench made it clear that they were not going to write their manifesto in advance of 2015. The hon. Lady can be assured, however, that I shall be pressing for that policy to be adopted.

Let me press on with Jim’s example. The guide to his pension—the “principal civil service pension scheme, classic”, as it is called—was published by the civil service in 2009. It explained that his pension would be “index-linked”. On page 24, the guide explained that this index-linking meant that

“your pension is guaranteed to increase in line with inflation, as measured by the retail price index”.

When he heard that the Government had changed the index-linking of his pension to CPI, he wrote to the Minister for the Cabinet Office and Paymaster General, the right hon. Member for Horsham (Mr Maude). He received the following reply:

“In hindsight, because the Minister has the discretion to decide which indicator best reflects the general level of prices, perhaps the booklet should have been drafted differently”.

That gives no satisfaction to Jim, who has lost so much money. He worked for 35 years with a guarantee of RPI, then, within a year of reaching his 60th birthday, the Government reneged on that guarantee. Over his retirement, the switch from RPI to CPI will not just be a minor change to an inflation indicator. For him, the switch will cost thousands.

Andrew Murrison Portrait Dr Andrew Murrison (South West Wiltshire) (Con)
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I congratulate the hon. Gentleman on securing this debate. I believe that the legal position is that the Minister is allowed to take into account prevailing economic circumstances when making his judgments. Does the hon. Gentleman agree, however, that it is important that literature such as that relating to the armed forces pension schemes of 1975 and 2005 should be scrutinised to ensure that nothing within it could give anyone misleading information on which they might base their future pension plans?

John McDonnell Portrait John McDonnell
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The hon. Gentleman is right. Jim did base his future plans with his wife on what he was told was a guarantee—a written guarantee—in the guide itself. That is not just unfortunate, but disgraceful. I agree that others should not be misled in that way in the future, and it should not have happened in the past. Thousands of pounds have been cut from Jim’s own pension. After 35 years of public service, the Government have knowingly cut his pension to pay off a deficit he did not create.

There are so many other Jim Singers. I recently met firefighters who were particularly angry that a firefighter retiring on a full pension will lose £52,000 over 20 years. This comes on top of a three-year pay freeze, after two years of only a 1% increase, which means no real increase in pension or pay for the best part of five years. The real cut in spending power for firefighters is a pre-retirement cut of 20% and a post-retirement cut of 22%. A 40% cut in income is a terrible price to pay for a crisis these people did not create.

I have met so many others, too. A Forestry Commission worker who worked for 24 years is losing £17,000; a jobcentre worker who worked at the Department for Work and Pensions for 26 years is losing £20,000; a tax inspector at Her Majesty’s Revenue and Customs with 36 years’ employment is losing £45,000. I became angry myself when I encountered examples provided by the Forces Pension Society of some horrendous losses—I do not know whether other Members have seen them. A disabled double amputee, a 28-year-old corporal, will lose £587,000 by the age of 70; a 40-year-old sergeant in the Royal Marines will lose £212,000 by the time he is 85; members of the Royal Fleet Auxiliary will lose literally tens of thousands of pounds. This is simply unacceptable.

Why, then, the change from RPI to CPI? In past discussions of this question, the Minister has been robust in his view that whether or not there was a need for cuts to deal with the deficit, CPI is a “better measure of inflation”. Numerous others have contested the suitability of CPI as an appropriate measure for pensions. The Royal Statistical Society is a particular example, and it provided us with another briefing yesterday. Its vice-president, Jill Leyland stated forcefully in a letter to the chair of the UK Statistics Authority:

“We do not feel that CPI currently serves the purpose of being a sufficiently good measure of price inflation as experienced by households to be used in uprating pensions”.

She went on to warn that its use would

“cause damage to consumer confidence in official statistics if it is perceived that uprating to pensions and other benefits is being governed by an index perceived by many as inappropriate and unfair.”

It was reiterated in the briefing sent to all Members yesterday that it is important for any index to enjoy the confidence of pensioners—and this index does not.

CPI was invented as a tool of macro-economic policy so that inflation rates could be compared across Europe, but because there was no agreement on how to calculate housing costs across European countries, that element was left out. CPI, because of its exclusion of housing costs, such as mortgages, council tax, and vehicle excise duty and TV licences, is criticised for not properly representing the real costs that pensioners face.

On top of that, as Members will know from the previous debate, there is what is described as the formula effect. CPI uses a geometric mean rather than an arithmetic mean, and we have long debates about those different means, so we have all become statisticians on this issue. In its calculations, CPI is supposed to take into account the ability of a person to shop around for cheaper goods. This—falsely in the eyes of many statisticians—assumes a sophisticated knowledge by pensioners of price variations and that consumers are sufficiently mobile to shop around. In reality, many pensioners are not the perfect shoppers of the economic model that CPI puts forward and are not mobile enough or capable of shopping around to secure the lowest price of all the goods in this basket.

Tackling Poverty in the UK

Andrew Murrison Excerpts
Thursday 10th June 2010

(14 years, 10 months ago)

Commons Chamber
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Lord Grayling Portrait Chris Grayling
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We should always seek to learn from the past. We will seek not to make the mistakes of the past 10 years, when billions of pounds were spend on employment programmes that failed to break down the culture of worklessness in many of our communities.

Andrew Murrison Portrait Dr Andrew Murrison (South West Wiltshire) (Con)
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My right hon. Friend is speaking very well about the inequalities between rich and poor, mainly in an urban context. Does he agree that nowhere is that difference more stark than in rural locations? Despite their rhetoric on rural-proofing over 13 years, the Opposition did absolutely nothing to narrow that divide. Will he provide an assurance sought by my constituents, and confirm that the plight of the poor in rural locations—they tend to be among the poorest in our society—will be addressed during our coalition Government?

Lord Grayling Portrait Chris Grayling
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My hon. Friend makes a powerful point. As we prepare the Work programme, I shall seek to ensure that it includes scope for the voluntary sector organisations that specialise in local communities and individual groups in our society that can make a difference. Groups that best understand rural areas can make the biggest difference to ensure that we help people in rural communities into prosperous and successful working lives, and not leave them stranded on benefits. I certainly give my hon. Friend that assurance.

We have a moral duty, even in difficult times, to do what we can to break down the cycle of deprivation that affects many of those communities. My right hon. Friend the Secretary of State for Work and Pensions and his team have committed years to identifying the challenges that face those deprived communities and how to solve them. We have demonstrated a willingness to look at ideas across the political spectrum. I am delighted that we can take advantage of the expertise of the right hon. Member for Birkenhead in his review. He is highly regarded in all parts of the House for the knowledge and insights that he has built up, and we look forward to seeing his conclusions, particularly on how we measure poverty and capture a more accurate understanding of it in all its forms. That work enables us to understand more clearly how to develop solutions for the problems that we face.

I hope that we can maintain dialogue with Members such as the hon. Member for Nottingham North, who is a leading thinker on how to use early intervention to tackle deprivation. He has worked closely with my right hon. Friend who is now the Secretary of State for Work and Pensions, and we believe that this is an issue that should capture expertise wherever it lies. In addition, we have established for the first time a cross-departmental Cabinet Committee under the chairmanship of my right hon. Friend to ensure that we join up all the thinking and work that we do on social justice across government.

All of that will require radical reforms. It is about stimulating economic growth by moving more people into work; providing more effective routes into truly sustainable jobs; establishing clearer links between work and reward; and helping people to make responsible choices and save for their retirement. And ultimately, in these straitened times, we must ensure that we are using the money available to the best possible effect, both for those individuals and the taxpayer.