Oral Answers to Questions

Guy Opperman Excerpts

Monday 6th June 2022 Commons Chamber

[Felicity Buchan (Kensington) (Con)]

14. How many people have been auto-enrolled in workplace pensions in Kensington constituency since 2012.

[The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)]

Since 2012, in the Wantage constituency, 14,000 local men and women have been automatically enrolled into a workplace pension. We thank the 2,410 local employers who are helping these employees to save from 8% of their earnings.

[David Johnston]

Auto-enrolment has been one of the most successful Government policies for the workplace in decades, but my hon. Friend will know that contributions are often not yet at the levels needed for people to have a secure retirement. What steps is he taking to encourage an increase in contribution levels?

[Guy Opperman]

We keep all policies under review, and auto-enrolment got to 8% only in 2019. We will proceed with the 2017 auto-enrolment review by lowering the eligibility age and making it from the first £1 earned in due course. We will also look at all matters in terms of contribution rates on a longer-term basis as time moves on.

[Felicity Buchan]

I understand that 36,000 people in Kensington have been signed up through auto-enrolment, which is great news. What can my hon. Friend do to ensure that even more people in Kensington are signed up?

[Guy Opperman]

Where Kensington leads, the rest of the country follows. There is no doubt that 36,000 is a phenomenal number of employees who are saving the 8% through auto-enrolment. My hon. Friend will be aware that, in her community and in this country, less than 40% of women were saving in a workplace pension prior to 2012, and it is now 86%. Less than 24% of young people were saving in a workplace pension, and it is now 84%. This is a game-changing policy developed under successive Governments but pioneered by this Conservative Government.

[Elliot Colburn (Carshalton and Wallington) (Con)]

2. What steps she is taking to help support pensioners with the cost of living.

[The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)]

The Government have provided a generous package for those most in need with a one-off cost of living payment of £650, including to those in receipt of pension credit. In addition, all pensioner households will receive an extra £300 to help cover the rising cost of energy this winter.

[Elliot Colburn]

I welcome the measures the Government have taken to support pensioners with the rising cost of living. Many pensioners in Carshalton and Wallington who are eligible for pension credit still do not know that they are entitled to it, so they are not claiming. Will my hon. Friend set out what steps the Government are taking to increase the uptake of pension credit? Will he join me at an older persons fair in my constituency later in the year to promote it?

[Guy Opperman]

I will be delighted to join my hon. Friend at his older persons fair, which is one example of how we want to promote the take-up of pension credit. I was pleased today to meet a group of stakeholders, ranging from Citizens Advice to Independent Age, the BBC, ITV, local authorities and utility companies, all of which are trying to work collectively to promote pension credit take-up. As we know, pension credit is a £3,000-plus benefit to the most venerable in our society, and it is particularly important that they claim it this winter.

[Mr Speaker]

I call Sir Stephen Timms, Chairman of the Select Committee, whom I congratulate on his knighthood.

[Sir Stephen Timms (East Ham) (Lab)]

Thank you very much, Mr Speaker. I welcome the efforts on pension credit take-up. The Chancellor’s additional payments are very welcome, but the need for them highlights the failings of the current pensions and benefits uprating system. The Select Committee will be looking at this, but does the Minister agree that now is the time to review how we uprate pensions and benefits each year and the level at which they are set?

[Guy Opperman]

You got there first, Mr Speaker, but I also congratulate the former Pensions Minister, the Chair of the Select Committee, on his knighthood, which is genuinely deserved. The whole House wishes him well when he goes to meet the Queen for his investiture.

The right hon. Gentleman is a former Pensions Minister and will recall that the present uprating policy started in April 1987 and has continued under successive Governments, including the 13 years of Labour Government. I will, of course, come to the Select Committee to listen to its suggestions, but the same process has been in place for the best part of 35 years. The level is set between September and November, and the uprating takes place thereafter.

[Mr Richard Holden (North West Durham) (Con)]

Pension credit is important, and I have been pushing take-up in my North West Durham constituency. The Minister will understand that ensuring better pension savings is the most important thing in the long term. I backed the 2019 manifesto, and I back the Prime Minister who delivered it. Will my hon. Friend the Minister implement the auto-enrolment review, and will he back my private Member’s Bill to deliver it as soon as possible?

[Guy Opperman]

Answer that one! The truth is that, in respect of the 2017 auto-enrolment review and the changes that my hon. Friend sought in his outstanding ten-minute rule Bill and the private Member’s Bill we did not get to debate before the close of the last parliamentary Session, he knows he has my full support. The matter will be brought before the House as soon as possible.

[Mr Speaker]

I call the shadow Minister, Matt Rodda.

[Matt Rodda (Reading East) (Lab)]

The cost of living crisis is leaving families and pensioners wondering how on earth they will make ends meet. Inflation is running at 11% for everyday goods, and petrol is now nearly £2 a litre, yet the Government’s response has favoured the wealthier while failing those in greatest need. Will the Minister explain why second home owners were offered extra help while at the very same time the Government have yet to drive up the take-up of pension credit? Will he also now publish the advice he received from his own civil servants that warned of the effect of this deeply unfair policy?

[Guy Opperman]

I do not believe that £37 billion of support should be sneered at. The Chancellor set out £22 billion of support in the spring and a further £15 billion of support last month; that includes £650 on top of the pension credit from July, and the winter fuel payment of £300 going to 8.2 million households. I strongly believe that shows that the Government are taking serious action to support the most vulnerable.

[Mr Speaker]

I call the SNP spokesperson, Alan Brown.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

The removal of the triple lock is costing pensioners £500 this year alone, and come October energy bills will have risen by £1,700 compared with April 2021. The £300 winter fuel payment does not come close to plugging that gap, let alone addressing the other inflationary pressures that pensioners are dealing with. Then we have the WASPI women, who have been struggling for years. Following the findings of the parliamentary and health service ombudsman, surely now—this time of crisis—is the time for the Government to agree fair and fast compensation for the WASPI women.

[Guy Opperman]

There was a lot in that question. In respect of the full package of support, most pensioner households will receive £850 via the additional winter fuel payment, the council tax rebate and the energy bills support scheme. Pensioners who receive means-tested benefits and are most in need of support will receive £1,500, including payments in July and September.

The hon. Gentleman will be aware that the matter of the WASPI women is a subject of and decision for the Court of Appeal, where the matter was decided in favour of successive Governments—this and the previous Labour Government—and that the ombudsman process is an ongoing one, on which we do not comment.

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[Mhairi Black (Paisley and Renfrewshire South) (SNP)]

24. What (a) information and (b) financial advice her Department provides to people approaching state pension age on deferring their entitlement to the state pension.

[The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)]

Information regarding deferral is published on gov.uk and provided in the state pension claim invitation letter and through the “Check your State Pension” forecast service, or someone can speak to the Pension Service direct. Deferring a state pension is a personal choice, and whether deferring a claim to the new state pension is the right decision will depend on a range of factors that are relevant to the personal circumstances of the individual, but no specific financial advice is given.

[Mhairi Black]

The DWP wrote to my constituent encouraging him to defer his pension. Unfortunately, he passed away last year, but the DWP told his wife Caroline that she was entitled to a £30,000 lump sum and £100 a week. After weeks of being passed from pillar to post, the DWP is now saying that Caroline is entitled to nothing, but it will give her £50 for the emotional distress and incorrect information. All the correspondence that she has from the DWP contains conflicting information and no warning of the risks of deferring a pension. Will the Minister meet me to rectify the situation and ensure that it does not happen to anyone else?

[Guy Opperman]

If the hon. Lady sends me the correspondence, I will make sure that it is looked into within a matter of days.

[Carolyn Harris (Swansea East) (Lab)]

T1. If she will make a statement on her departmental responsibilities.

--- Later in debate ---

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

T3. I congratulate the Minister on his campaign to increase the uptake of pension credit, which is a vital way of ensuring that our most vulnerable pensioner households get everything they are entitled to. Although more than 2,000 people in my constituency are already claiming pension credit, following recent announcements on cost of living support, where does my hon. Friend suggest that people look to check whether they are getting everything they are entitled to?

[The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)]

Obviously, there is the Government site—gov.uk—and the phone number 0800 99 1234. More particularly, I today met Citizens Advice, Age UK and various other pensioner charities that would be very keen to assist on an ongoing basis. I must very strongly recommend my hon. Friend to get behind the pension credit awareness day, which takes place on Wednesday 15 June. Obviously his local authority, Essex County Council, has a role to play, as do all local authorities, because it has the data that can identify specific individuals who could apply for but do not have pension credit.

[Mr Speaker]

I call the SNP spokesperson.

--- Later in debate ---

[Guy Opperman]

The reality is that the Chancellor has announced two packages, worth £37 billion. Those will see a £650 uplift in pension credit from July this year, as well as a £300 increase in the winter fuel payment, which goes to 8.2 million households. There are also the council tax rebate, the energy bill support scheme and the disability cost of living payment, on top of other matters that have been set out.

[Robert Halfon (Harlow) (Con)]

T9. As colleagues on both sides of the House will know from personal experience or from their constituents, it is often smaller things, rather than big Government schemes, that help those with a disability to get by. I will soon be presenting my disability charter to Harlow Council to ensure that Harlow is a disabled-friendly town. That includes measures such as enforcing parking restrictions for disabled bays, using CCTV cameras to prevent people from taking up disabled parking spaces, and making sure that clean and accessible toilets are available. What is the Minister doing to ensure that appropriate fines or penalty measures are actioned when people who do not have a disability are found to be breaking the rules and parking in disabled spaces in public or private areas?

[Mohammad Yasin (Bedford) (Lab)]

T7. I welcome the DWP’s campaign to encourage the take-up of pension credit with its awareness day on 15 June, but given that more than three quarters of a million pensioner households—including the most vulnerable in Bedford and Kempston—are missing out on that crucial help, what plans does the Minister have to improve benefit take-up in the longer term?

[Guy Opperman]

We met a whole host of organisations, from Citizens Advice to Age UK, BBC and ITV as well as utilities, banks and local authorities, all of whom will try to assist with the process over and above what the Government are already doing. But, much as I said to my hon. Friend the Member for South Basildon and East Thurrock (Stephen Metcalfe), there is a role for Bedfordshire county council to play, which I believe is the hon. Member’s local authority—[Interruption.]. Well, his local authority can play a role in identifying and supporting people from the local area and getting them to claim.

[Chris Bryant (Rhondda) (Lab)]

Fruit is going unpicked, there are long delays at airports because there are not enough baggage-handlers, flights are being cancelled because there are not enough people to work in the airline industry and lots of bars and restaurants cannot open at all because they simply have not got enough staff. Where will we find the additional workers to ensure that the economy grows?

--- Later in debate ---

[Helen Morgan (North Shropshire) (LD)]

I am troubled by the number of constituents who have recently come to me because either they have been overpaid in error by the DWP or they are struggling to receive their first payment because of administrative difficulties, when they are already really struggling. What steps is the Department taking to ensure that errors and disputes can be resolved satisfactorily and in a timely way so that those repayments will not push them over the edge and into poverty?

[Guy Opperman]

If the hon. Lady writes to the Department, whether to me or to the Secretary of State direct, we will look into those specific examples, ensure that they are addressed and get a decent answer to her on the specific problems. However, I cannot give a generic answer today.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

According to the Child Poverty Action Group, each month some 4,300 households in my constituency are receiving an average of £57 less than they are entitled to because of automatic deductions from their universal credit, and that affects about 3,700 children. What action is the Department taking to reform the deduction system so that innocent children are not disadvantaged?