Equitable Life (Payments) Bill

Esther McVey Excerpts

Tuesday 14th September 2010 Commons Chamber

[Mr Hoban]

I would be delighted to appear in front of the Committee to give the Government’s view. It is important that there should be scrutiny through the Public Administration Committee. My hon. Friend was right to highlight the work done by the previous Committee; I particularly commend the former Chair, Dr Tony Wright, who did a great deal, with other Committee members, to keep the issue in the public debate. They published two reports that were very critical of the previous Government. I am happy to take part in that process.

[Esther McVey (Wirral West) (Con)]

The fact that this matter has not been resolved for so long is an absolute disgrace, and I congratulate the coalition on the fact that it will deal with it so swiftly. It is vital that the compensation given should be suitable and satisfactory to all the victims of Equitable Life. Going forward and looking at the bigger picture, we need to consider pensions as a whole. What does this issue say about how far the general public can have faith in any pension scheme?

[Mr Hoban]

Indeed; my hon. Friend makes an important point. I would like to say two things in response to her. First, any compensation has to be fair to both the policyholders and the taxpayers who will foot the bill. No one else will foot the bill—no one involved, such as the previous management of Equitable Life, will pick up the tab. The taxpayer will foot the bill. We need to make sure that compensation is fair for the taxpayer and policyholders.

Secondly, my hon. Friend is right to highlight the issue of how we ensure that there is confidence for investors and savers in insurance and long-term saving in the future. That is one of the reasons why my right hon. Friend the Chancellor announced in June that we are going to reform financial regulation and set up a new consumer protection markets authority. That will strengthen the regulatory regime in this country.

We also need to make sure that we help improve financial capability for savers, so that they can understand some of the issues around the products that they take out. That is why we have proposed an annual financial health check, which will help savers understand some of those issues.

Oral Answers to Questions

Esther McVey Excerpts

Tuesday 13th July 2010 Commons Chamber

[Mr Hoban]

By tackling budget deficits, we will be in a better position to keep interest rates lower. Serious concerns were expressed before the Budget about the ability of the previous Government to tackle the deficit. The tough action we have taken has been welcomed across the world and by rating agencies. It lays the right foundation for future growth. This Government are prepared to take the difficult decisions that the hon. Gentleman’s Government ducked before the election.

[Esther McVey (Wirral West) (Con)]

13. What recent discussions he has had with the Secretary of State for Health on funding for mental health services.

[The Chief Secretary to the Treasury (Danny Alexander)]

I am grateful to the hon. Lady for her question. I know that she takes a great interest in these issues. We want to offer long-term solutions to people with mental health problems and provide psychological therapies to do that. Our coalition programme set out our intention to ensure greater access to talking therapies. That is why, on 23 June, the Secretary of State for Health pledged £70 million to continue the roll-out of psychological therapies across the NHS this year.

[Esther McVey]

Given the dire financial situation the last Government have left us in, and the very real impact it will have on each and every one of our lives, will the Minister go further to explain the £70 million that he plans to spend on psychological therapies in the current financial year? That is particularly important when one in four of us will in the course of our lifetimes suffer from problems in our mental well-being—including finance-related stress, reminding us of our inheritance from the previous Government.

[Danny Alexander]

The hon. Lady is quite right to spell out the importance of tackling mental health problems, which, as she says, many people experience during the course of their lives, so it should be taken very seriously. That is why we have continued to roll out funding for the expansion of talking therapies, which in many cases are the most effective. I also note that, unlike the Labour party, we have pledged to increase health spending in real terms during every year of this Parliament to enable these sorts of problems to continue to be tackled—even in very tight financial circumstances.