Oral Answers to Questions

Debate between Iain Duncan Smith and David Mowat

Monday 22nd June 2015 Commons Chamber

[David Mowat (Warrington South) (Con)]

Earlier, the Minister pointed out that we have brought in a 0.75% cap on private pensions that are subject to auto-enrolment. That is excellent news. However, there is also abusive behaviour more widely in the industry. Do we expect that cap to be extended to non-auto-enrolled pensions?

[Mr Duncan Smith]

At the moment, the cap sits with automatic enrolment, but I am happy to hear the case for extending it. As I said earlier, we will consult on this issue in July and I am happy for my hon. Friend to make some kind of report or submission.

Universal Credit

Debate between Iain Duncan Smith and David Mowat

Tuesday 25th November 2014 Commons Chamber

[Mr Duncan Smith]

That is a really important question and I thank the hon. Lady for being positive. Two things should be understood about universal credit. First, in-work allowances, which are rather like tax allowances, allow different groups of people—such as those with disabilities and single parents—to earn a certain amount of money before the taper comes in. That gives them a real step up, which is why the bottom 40% with regard to income will benefit to a greater degree than anybody else.

Secondly, I am fully prepared to accept that there is a debate about the taper, but when any future Government budgets they will be able to say, “We want to lower the taper because we want people to be able to up their hours quicker.” Alternatively, if there is full employment, they may say that the taper is not so relevant. That is a debate for Governments. We have instituted a very simple process whereby Back Benchers and others can say whether they want a higher or a lower taper. We have set it at what we think we can afford, and that still makes it better for those claimants going into work. There will always be a debate, so the hon. Lady will be able to argue whether the taper should be raised or lowered.

[David Mowat (Warrington South) (Con)]

The Secretary of State must have been relieved to hear the Opposition reiterate their support for universal credit, even though they are concerned that it is being rolled out too slowly. Has he had a chance to review their four-point plan, which I presume is designed to address the issue? The first point is to stop the roll-out and lay-off about 1,000 people while Labour reviews the programme, and the second and third points are uncosted, significant scope increases, introduced at a late stage in the programme, which will almost certainly mean much higher costs.

[Mr Duncan Smith]

I think my hon. Friend has a point. The Opposition think that the programme is rolling out too slowly, so they want to roll it out even slower or stop it and not roll it out at all. They are caught in a classic Opposition trap—we have all been there; I spent some time in opposition—which is that they know that what the Government are doing is right, but they do not want to say so because that would make it look like they had nothing to say. Therefore, they are talking about little bits and pieces and nit picking, instead of saying that it is a good programme. When I was in opposition, if something was really good I used to say, “Let’s get behind it and support it, and we can deal with the detail later.”

Universal Credit

Debate between Iain Duncan Smith and David Mowat

Wednesday 9th July 2014 Commons Chamber

[Mr Duncan Smith]

That is pretty much what the hon. Lady says whenever she stands up on any question to do with welfare. The reality is that she is opposed to absolutely everything that we have done. If it was left to her and some of her colleagues on the Select Committee, they would repeal everything we have done, and welfare would be in the sort of chaos that Labour Members left us when they left Government.

[David Mowat (Warrington South) (Con)]

The Secretary of State may have seen Labour’s recent four-point plan for universal credit. Points 3 and 4 amount to significant uncosted scope increases, with no benefits applied to them. Given that, does he agree that it might be better for Labour to stay off the whole subject of business cases?

[Mr Duncan Smith]

I agree with my hon. Friend. The truth is that the Opposition do not want to talk about any of their welfare proposals because all of them would cost more money and deliver less. If we were to apply a business case to the Opposition, they would not exist any more.

DWP: Performance

Debate between Iain Duncan Smith and David Mowat

Monday 30th June 2014 Commons Chamber

[Mr Duncan Smith]

I was referring to PIP and the fact that the terminally ill will not have to wait longer than 10 days to be seen. I think that the hon. Lady is referring to WCA. They will go straight to the support group. [Interruption.] Well, I have given an undertaking that they should not have to wait more than 10 days to be dealt with.

[David Mowat (Warrington South) (Con)]

My right hon. Friend mentioned the shadow Secretary of State’s four-point rescue plan. Part 1 is a three-month delay, which would lead to a write-off. Parts 3 and 4 include scope increases, which at this phase in the programme would be bound to cause further write-offs. That is precisely why Labour lost £20 billion in the previous Parliament.

[Mr Duncan Smith]

I am grateful to my hon. Friend, who is right about that, and I will come to that point in a minute. That is what happens in the development process. Universal credit is rolling out against the time scale I set last year, as I will demonstrate.

Universal Credit

Debate between Iain Duncan Smith and David Mowat

Tuesday 10th December 2013 Commons Chamber

[Mr Duncan Smith]

We have the confidence of the Treasury.

[David Mowat (Warrington South) (Con)]

Such programmes are highly complex, involving many hundreds, if not thousands, of man-years of work—probably more complex than delivering the Olympics. Given that the Opposition apparently support the programme’s objectives, does the Secretary of State understand why they have spent the past three quarters of an hour undermining the project team?

[Mr Duncan Smith]

My hon. Friend again raises the point that the Opposition talk a lot about supporting universal credit but they voted against it. They have nothing to say about welfare reform. That is the problem. Up till now, they have failed on welfare reform. They are known as the welfare party because they have opposed everything that we have brought in. We will save more than £40 billion over this Parliament. They have opposed everything, which would cost them an extra £40 billion if they were to get into power.

Oral Answers to Questions

Debate between Iain Duncan Smith and David Mowat

Monday 20th May 2013 Commons Chamber

[Mr Duncan Smith]

The hon. Gentleman is fundamentally wrong. All the pathfinders are going ahead. The IT system is but a part of that, and goes ahead in one of the pathfinders. The other three are already testing all the other aspects of universal credit and in July will, essentially, themselves roll out the remainder of the pathfinder, and more than 7,000 people will be engaged in it. All that nonsense the hon. Gentleman has just said is completely untrue.

[David Mowat (Warrington South) (Con)]

22. The pilot commenced on time and substantially on budget at one of the pathfinder locations, implying that much of the application must be working. Does that not contrast well with the failed big-bang approach taken by the last Government in similar implementations?

[Mr Duncan Smith]

I repeat to my hon. Friend what I said to the hon. Member for Sheffield South East (Mr Betts): the reality is that it is far better for us to do this carefully, and to check each time that the systems work and that those who are meant to be using them know what they are doing, so we learn the lessons from the whole system. The last Government went for a big-bang approach in one project after another, and most of them literally did just that: they blew up.

Oral Answers to Questions

Debate between Iain Duncan Smith and David Mowat

Monday 11th March 2013 Commons Chamber

[Mr Duncan Smith]

I do wonder that the Labour party, which sat in government for 13 years, never once raised the issue of people living in overcrowded accommodation, and never once seemed to care that huge numbers of people were on the waiting list. Nevertheless, Labour Members bleat about those who are under-occupying and are being subsidised by poorer people who cannot find accommodation.

[David Mowat (Warrington South) (Con)]

The Pensions Minister will have seen the recent press coverage about the high margins generated by annuity providers. That comes as no surprise given the complete market failure that has occurred in large parts of the private pension industry. Will he consider imposing a uniform product structure—as has been done in energy—and will he enforce legally the open market option?

Oral Answers to Questions

Debate between Iain Duncan Smith and David Mowat

Monday 25th June 2012 Commons Chamber

[Mr Duncan Smith]

I accept the hon. Lady’s point and will look at the situation carefully to ensure that that does not happen. I will say that when we came into office food banks were not allowed to put their literature in jobcentres; the previous Government did not allow that and did not want them anywhere near jobcentres. We have since allowed them to put their literature in jobcentres. Jobcentre advisers are also telling people about that, so some of that expansion is due to the fact that people did not even know about this before we told them about it, which I think is fairly reasonable.

[David Mowat (Warrington South) (Con)]

Given the increasing evidence of market failure in the private pensions system and the Financial Services Authority’s recent estimate that between 30 % and 50% of private pension pots now go on charges, will the Government consider putting a cap on charges before auto-enrolment comes in?