Oral Answers to Questions

Laura Trott Excerpts

Monday 5th December 2022 Commons Chamber

[Helen Morgan (North Shropshire) (LD)]

14. If he will take steps to compensate women born on or after 6 April 1950 affected by changes to the state pension age.

[The Parliamentary Under-Secretary of State for Work and Pensions (Laura Trott)]

State pension age equalisation and subsequent increases have been the policy of successive Governments. The phasing in of state pension age increases was agreed to by the hon. Lady’s party in 2011 and 2014.

[Helen Morgan]

Last July the pensions ombudsman concluded that the Government had been too slow to inform many women that they would be affected by the rising state pension age. Along with the cost of living crisis, this means that many of the WASPI women—Women Against State Pension Inequality—are struggling to get by, and it is one of the concerns most frequently raised in my weekly surgeries. I wonder whether the Secretary of State will commit himself to an interim payment for the women affected by the change in pension age while they wait for the release of the ombudsman’s final report.

[Laura Trott]

As the hon. Lady knows, the investigation is ongoing, so it would not be appropriate to take any further steps at this stage.

[Vicky Ford (Chelmsford) (Con)]

15. What steps his Department is taking to reduce benefit fraud.

--- Later in debate ---

[Sir David Evennett (Bexleyheath and Crayford) (Con)]

22. What steps his Department is taking to support pensioners with increases in the cost of living.

[The Parliamentary Under-Secretary of State for Work and Pensions (Laura Trott)]

All pensioner households are in the process of receiving an extra £300 to help them cover the rising cost of energy this winter. For those in receipt of pension credit, the second cost of living payment of £324 was issued in November.

[Cat Smith]

Rural pensioners face additional challenges to the cost of living crisis, and I have recently heard from constituents in the villages of Forton and Winmarleigh who are still waiting for information from the Government on the payment of the alternative fuel payment scheme, as they are off grid. Additionally, the removal of the Bay Plus Megarider bus ticket has increased the price of bus tickets, which may not directly affect those pensioners, but where they are supporting adult children and school-age children in their households, it is impacting on their family budgets. What steps are the Government taking to support pensioners who live in rural parts?

[Laura Trott]

I recognise a lot of the challenges that the hon. Lady mentions, and this is why we are giving pensioners £850, and people on pension credit £1,500, to get through this winter.

[Sir David Evennett]

I welcome my hon. Friend to her position and I would like to thank her for the answer she has just given us. I wish her well in her job. The Government’s £300 boost to the winter fuel payment will give pensioners vital support this winter, and I know it is much appreciated by my constituents. However, will she join me in encouraging pensioners on low incomes to look into whether they are eligible for pension credit and to submit an application for this additional support as soon as possible?

[Laura Trott]

I thank my right hon. Friend for his question. He is, as always, absolutely right. I know that he visited Age UK recently and raised these issues. It is vital that any pensioners receiving less than £182.60 a week look into whether they are eligible for pension credit, and if they are, they should try to claim it before 18 December, because the cost of living payment of £324 can be backdated.

[Mr Speaker]

I call the shadow Minister.

[Matt Rodda (Reading East) (Lab)]

Pensioners who have worked hard and saved all their lives face an unprecedented cost of living crisis. Meanwhile, the Government dithered and delayed, but after considerable pressure from the Opposition side of the House, they eventually agreed to increase the state pension to offer some help with fuel bills. However, these delays have left pensioners angry, confused and, as we heard earlier, frustrated. Can the Minister please tell the House how many pensioners will be left freezing and cold with no heating on this winter?

[Laura Trott]

I am grateful to the hon. Member for highlighting the record rise in state pension brought forward by this Government. We are, as ever, on the side of pensioners as we go through this winter, and I would point out that the state pension has doubled from the level we were left by Labour in 2010.

[Gareth Davies (Grantham and Stamford) (Con)]

21. What progress his Department has made on increasing the number of people with disabilities in work.

--- Later in debate ---

[Cat Smith (Lancaster and Fleetwood) (Lab)]

What measures are the Government taking to speed up repayments to the 200,000 pensioners who have yet to be compensated for the historical underpayments in the state pension?

[The Parliamentary Under-Secretary of State for Work and Pensions (Laura Trott)]

We have hired more than 1,000 people to look at that. It was a mistake and we are working as hard as we can to rectify it as quickly as possible.

[Saqib Bhatti (Meriden) (Con)]

A number of constituents have written to me about the build-up of childcare vouchers that they were not able to use over the pandemic. It has been suggested to me that we could reduce restrictions on getting a refund and allow parents to take advantage of that during the cost of living crisis. Is there something the Minister can suggest we should do about that?

--- Later in debate ---

[Laura Trott]

Pension credit is a complicated system that also involves people’s savings, so it is not possible with the information the Government have to award it automatically. That said, we are looking at what we can do, working with local authorities and others, to try to speed up delivery of the payments.

[Mr Speaker]

Order. As there are no more questions, we are going to have to suspend the House for three minutes.

Draft Pensions Dashboards Regulations 2022

Laura Trott Excerpts

Tuesday 15th November 2022 General Committees

[The Parliamentary Under-Secretary of State for Work and Pensions (Laura Trott)]

I beg to move,

That the Committee has considered the draft Pensions Dashboards Regulations 2022.

It is a pleasure to serve under your chairmanship, Mrs Murray. The regulations were laid before the House on 17 October. I am pleased to introduce this instrument that, subject to approval, will create the framework in which pensions dashboards will operate.

Pensions dashboards are digital tools that present individuals with their pensions information. The Pension Schemes Act 2021 gave the Government the powers to create these regulations. The regulations place requirements on registerable Great Britain-based occupational pension schemes with over 100 active, deferred or pension credit members, and specify when those schemes must connect to the Money and Pensions Service, or MaPS. The Department for Communities is expected to make corresponding regulations for Northern Ireland. Once connected, pension schemes must follow the requirement to find pensions and send the relevant information to an individual’s chosen qualifying pensions dashboard service.

The regulations provide that the Pensions Regulator may take enforcement action in relation to pension schemes that do not comply. The regulations also cover the requirements to be satisfied in order for a pensions dashboard service to be a qualifying pensions dashboard service, which include connection and functionality, display of view data, reporting and monitoring of the dashboard and enabling an independent person to audit the provider’s dashboard. Further to this, the Financial Conduct Authority has published final corresponding rules in relation to the providers of personal and stakeholder pension schemes, and will be consulting on a regulatory framework for qualifying pensions dashboard services later this year.

[Michael Fabricant (Lichfield) (Con)]

The dashboards are to be used by consumers to see how their pensions will evolve over time. Will they be easily accessible? People, particularly those approaching pensionable age—although some are computer-literate, some are not—find so many of these computer programs rather difficult. How accessible will they be?

[Laura Trott]

I thank my hon. Friend for his intervention. The standards will be consulted on by MaPS and the FCA, but it is absolutely intended that they will be as user friendly as possible. A lot of testing will take place to ensure that that is the case.

The regulations, in combination with a planned order to amend the Pensions Act 2004, will enable MaPS and the Pensions Regulator to disclose information to each other in connection with dashboard functions only. That will support MaPS and the Pensions Regulator in their pensions dashboards programme and compliance roles respectively, and support the secure delivery of the ecosystem and pensions dashboard services. The Data Protection Act 2018 and General Data Protection Regulation duties continue to apply to the sharing of information about an individual.

I will briefly revisit why we need pensions dashboards and their potential to change people’s relationships with their pensions. We know about the huge success that automatic enrolment had in getting people saving into a pension, with millions of people now saving. However, research has found that almost three quarters of UK adults have multiple pensions, as people move around the labour market throughout their working life. Some people may not know either who their pension is with, what their pensions are worth or how many pensions they have. Pensions dashboards have the power to change all that.

We have conservatively estimated that reuniting people with lost pensions could be worth £541 million to individuals over 10 years, and it could be much more. The Pensions Policy Institute estimated in its most recent paper on lost pots that the total value could be up to £26.6 billion. Instead of relying on a box of paper under the stairs, pensions dashboards will help individuals to find their lost and forgotten pensions quickly and easily, and all in one place.

We are setting up a brand-new digital service that will connect thousands of individual pensions schemes covering millions of memberships. As Members may expect, a huge amount of work and thought has gone into developing these regulations. We have worked throughout with our delivery partners, the pensions dashboards programme as part of the Money and Pensions Service, the Pensions Regulator, and the FCA. I thank them all for their expert input into this cross-cutting project. We have also gained insight from those in the pensions industry and consumer groups through two public consultations and other fora.

The delivery of pensions dashboards needs to be both timely and operationally manageable for both the pensions dashboards programme and the pensions industry. The regulations set out a phased approach, known as staging, to connect different categories of scheme to MaPS. By prioritising schemes in order of type and membership size, we can maximise the member coverage on pensions dashboards in the shortest possible timeframe. Schemes will connect to the MaPS digital architecture, which is the technology that underpins dashboards. The architecture, and all parties and technical services that connect to it, form the dashboard ecosystem.

All Members are eager to see dashboards made available to the public. The point at which that will happen is referred to in the regulations as the “Dashboards Available Point”. The Secretary of State will issue a notice at least six months ahead of that point, having considered matters such as the coverage of memberships and service levels. This notice will give the pensions industry time to prepare to answer queries resulting from people engaging with their pensions information.

Lastly, it would be remiss of me not to update the House on the delivery of this programme. I am pleased to say that the pensions dashboards programme has delivered the digital architecture underpinning this project, and it is currently testing and refining the service in readiness for schemes to begin connecting from April 2023. Early participants will begin connecting in the new year. We are grateful to schemes for their co-operation, which is helping to prepare the ground and setting an example for others to follow.

I am satisfied that the draft Pensions Dashboards Regulations 2022 are compatible with the European convention on human rights. Subject to the view of this House, the approval of the regulations puts us one step closer to delivery for consumers. I commend the regulations to the Committee.

--- Later in debate ---

[Laura Trott]

I am grateful for both Opposition parties’ support for these important regulations.

I will write to the hon. Member for Reading East on some of the specifics, but will just cover some of his points. On the steps being taken to ensure data accuracy on dashboards, it is obviously crucial that the data in front of an individual is accurate. Trustees and managers have existing legal obligations relating to data quality, and all the data is obviously being pulled from existing pension providers. The Pensions Regulator has set out expectations on data quality in its record-keeping guidance. This includes that data are measured at least once a year. The regulator’s guidance on dashboards is also clear that trustees and managers need to ensure that values provided are accurate and urges them to work with administrators to improve data if required.

I absolutely take the hon. Gentleman’s point about changes, including to addresses. They are an issue throughout the pensions system. It is something that we need to do a lot more work on, but I will write back to him on that specific point.

As for testing and the preparedness of the pensions schemes, schemes and administrators must act now, if they have not already, to prepare their data and engage with administrators and other suppliers on how they will meet their legal duties. The Pensions Regulator has already published guidance on practical steps that trustees and schemes managers should be taking now. They are also writing to all pension schemes at least 12 months ahead of the connection deadline with a call to action to ensure that the data they use is accurate and complete. They will contact schemes several times in the run-up to their duties to help them remain on track. I had a meeting with the Pensions Regulator yesterday to discuss exactly such issues, and I will continue to have such meetings to ensure that it is providing all the support it can to schemes.

On testing, there will be a lot of user testing—it is built into the approach. The hon. Gentleman is completely right in his caution about IT schemes. I am sure that he and I will correspond regularly on that, and we need to build testing into the programme.

The hon. Member for Glasgow East asked several questions, and I thank him for his support. The lack of pensions literacy is a big problem. It is, ironically, one of the things that has led to automatic enrolment being a success, but we need to tread the tightrope between making sure that people are as informed as possible and making sure that they are building up their pension pot. I would absolutely like to work with him on advice, guidance and ensuring that people are making the best use of their pension pot.

I should probably have a further conversation offline with the hon. Gentleman about amending the age for automatic enrolment. Automatic enrolment is a success, and we would like to see that expanded, and I would like to have further conversations.

As for MaPS and the dashboard launch, we strongly believe that it is important to have a Government-backed dashboard, and the Government have committed to launching the Money and Pensions Service dashboard from the “Dashboards Available Point”. It will also be the point at which authorised qualifying pensions dashboard services may begin to provide a pensions dashboard service as well, but they are highly regulated, and that again is something we can pick up further through the process.

I know that colleagues across the House care passionately about the success of pensions dashboards, and I thank all members of the Committee for their contributions today. Pensions dashboards will reunite individuals with their lost or forgotten pots and engage potentially millions of savers. It is important that we press ahead with this ambitious project so that savers can realise the benefits. I therefore commend the regulations to the Committee.

Question put and agreed to.

State Pension Triple Lock

Laura Trott Excerpts

Tuesday 8th November 2022 Commons Chamber

[The Parliamentary Under-Secretary of State for Work and Pensions (Laura Trott)]

I thank all hon. Members for their valuable contributions to the debate.

Since 2010, pensioner incomes have gone up, absolute pensioner poverty has gone down and we have corrected the historic inequalities towards women in the state pension. That is a record that we on the Government Benches can be proud of. The decision on how to uprate state pension for this year is taken by the Secretary of State at the same time as the uprating decision on all benefits for those of working age and over state pension age.

[Alan Brown]

The Minister is repeating what the Secretary of State said earlier about pensioner poverty going down. The reality is that it is down only on old statistics. Pensioner poverty is increasing. Fuel poverty is increasing. So will the Government update the House on what the true figures on poverty are in the UK?

[Laura Trott]

We absolutely recognise that this is a very difficult time for pensioners. That is why we put a substantial package of support in place, which I will come on to later.

The Secretary of State set out, when opening the debate, that the results of his uprating review will be announced alongside the autumn statement on 17 November. To nobody’s surprise, I will not be pre-empting the outcome of that review today. However, reflecting the debate this afternoon, it is important to highlight how pensioners have been supported since 2010.

The yearly amount of the basic state pension has risen by over £2,300 in cash terms, rightly highlighted during the debate by my hon. Friends the Members for South Cambridgeshire (Anthony Browne), for Torbay (Kevin Foster) and for Heywood and Middleton (Chris Clarkson). Average weekly pensioner incomes have increased by 12% in real terms and as a result absolute pensioner poverty has fallen by 400,000 since 2010.

We are forecast to spend over £134 billion on benefits for pensioners in 2022-23. That amounts to 5.4% of GDP.

[Karin Smyth (Bristol South) (Lab)]

If everything has been so good since 2010, why did the Government stand on a manifesto commitment in 2019 to protect the triple lock? What was the point of that?

[Laura Trott]

We have been absolutely clear about our record since 2010. I have been clear that I cannot pre-empt the decisions of the Secretary of State. The point is that we on the Government Benches have put plans in place to help pensioners this winter. We are not waiting until next April.

[Mr Mohindra]

I welcome the Minister to her place. Can the Minister confirm to the House again that, if we wait nine days, we will be given all the information this House seeks on the financial statement, which is due next week?

[Laura Trott]

My hon. Friend, on this as with so many other things, is absolutely right. I will make some progress now on my speech.

At the heart of the 2016 reforms we made to the state pension was a correction of some of the historic unfairness in the previous system, particularly for women, the self-employed and lower-paid workers.

[Paula Barker]

Will the Minister give way?

[Laura Trott]

I am just going to make some progress, I am sorry.

That means women no longer need to rely on the pension contributions of their husbands, and it is more generous to those who spend time looking after their children, as my hon. Friends the Members for Guildford (Angela Richardson) and for Broadland (Jerome Mayhew) pointed out. As a result, more than 3 million women stand to receive an average of £550 more a year by 2030.

[Paula Barker]

Will the Minister give way?

[Laura Trott]

I am sorry, but as I said, I will make some progress.

Under the state pension, outcomes are projected to equalise for men and women by the early 2040s, more than a decade earlier than they would have done under the old system.

The other important pillar of the 2016 state pension reforms was automatic enrolment. That was raised by my hon. Friends the Members for South West Hertfordshire (Mr Mohindra), for Rother Valley (Alexander Stafford), for Broadland and for Heywood and Middleton. Automatic enrolment into workplace pensions has had a transformative effect on pension-saving participation. As my hon. Friend the Member for Broadland pointed out, private savings for pensions went down under Labour.

Over 10.7 million people have been automatically enrolled into a pension by more than 2 million employers in every sector of the economy, seeing an additional £33 billion saved into workplace pensions each year compared with 2012. Automatic enrolment has helped many previously under-represented groups to begin pension savings, such as low earners, young people and women.

[Margaret Greenwood]

The Minister is being generous in giving way. It is good to see her being so keen on auto-enrolment. Will she be clear with the House that that policy was designed by the Labour party?

[Laura Trott]

But it was not implemented under the Labour Government.

In 2012, 40% of eligible women working in the private sector participated in a workplace pension. As of 2021, that had increased to 87%—higher than for eligible men.

[Paula Barker]

Will the Minister give way?

[Laura Trott]

I will make a bit of progress; I have been quite generous on interventions.

We know that the coming months will be tough for everyone, but especially for pensioners. I thank all hon. Members who have raised cases on behalf of their constituents. The Government fully understand the difficulties that pensioners will face this winter and will stand by those in the most need. That is why the Government have made substantial support available for pensioners struggling with the cost of living this winter. As my hon. Friends the Members for Wantage (David Johnston) and for Gloucester (Richard Graham) pointed out, we have not heard much from the Labour Front-Bench team today about what their plan would be for this winter.

We have a plan that includes the £650 cost of living payment for those on pension credit to help with the rising cost of living. There is a £400 reduction on energy bills for all domestic electricity customers over the coming months and the £150 council tax rebate received by 85% of all UK households. Those on state pension will also receive an increased £500 winter fuel payment if they are under 80 or a £600 winter fuel payment if they are 80 or over. In total, that will mean that all pensioners receiving the state pension could receive up to £850 of additional support in the coming months and that pensioners on the lowest income who are claiming means-tested benefits will receive up to £1,500.

[Alan Brown]

Will the Minister give way?

[Laura Trott]

I will make a bit of progress and then come back to the hon. Gentleman.

Pension credit was raised by a number of Members, including the hon. Member for Kilmarnock and Loudoun (Alan Brown), my hon. Friend the Member for Torbay, the right hon. Member for East Ham (Sir Stephen Timms), the hon. Member for Birmingham, Erdington (Mrs Hamilton), my hon. Friend the Member for Rother Valley and the hon. Members for Arfon (Hywel Williams) and for Wirral West (Margaret Greenwood). My predecessor—the Minister for Employment, my hon. Friend the Member for Hexham (Guy Opperman)—put in a huge amount of work to increase awareness of pension credit. We have seen a significant increase in the number of claims, peaking at a 275% increase year on year during pension credit awareness week in June. We know, however, that only seven out of 10 people who are eligible to claim it do so. That means that £3,300 of additional support is not being claimed by around 850,000 households. Clearly, it would make a significant difference if even some of that money—totalling £1.7 billion—made its way into the pockets of the poorest pensioners.

The benefit of pension credit is that, as many Members have mentioned, it passports to an array of additional support, even when a person’s entitlement is very small. A pension credit recipient will receive a TV licence if they are over the age of 75 and get access to housing benefit and council tax support. The second half of the Government’s cost of living support—worth £324—will also be paid to all pension credit recipients. However, time is running out for those who have not yet claimed pension credit. The crucial date is 18 December. If someone claims pension credit by then and is eligible for the maximum three-month backdating, they will receive £324 of support to which they are entitled. It is therefore essential that all of us here urge our constituents to visit the pension credit page of gov.uk or to call the number listed to check eligibility of claim.

On automatic enrolment, the right hon. Member for East Ham and my hon. Friend the Member for Torbay raised an interesting idea. From the information that I have, the Government do not have the data to be able to do it, but I will definitely explore further the point about local government and what more we can do with data.

[Alan Brown]

The Minister spoke about the extra support for pensioners—I think she said it was £850. Does she realise that that does not even cover the increase in the average energy bill, which has gone up from £1,100 to £2,500? More importantly, what does she think energy bills will be when the Government’s support ends come April?

[Laura Trott]

That does not include the energy price guarantee.

As the Secretary of State set out to the House and as I said at the start of my speech, we cannot pre-empt the fiscal statement, but it is the Conservatives who have increased the state pension, it was the Conservatives who introduced automatic enrolment and it is the Conservatives who have reduced absolute pensioner poverty. This Government have always protected and will always protect the most vulnerable: that has been our track record since 2010, and that is what we will continue to do.

Question put.

Office for Nuclear Regulation Annual Report and Accounts 2021-22

Laura Trott Excerpts

Thursday 3rd November 2022 Written Statements

[The Parliamentary Under-Secretary of State for Work and Pensions (Laura Trott)]

My hon. Friend, the Under-Secretary of State, Department for Work and Pensions (the Baroness Stedman-Scott), has made the following written statement.

Later today I will lay before this House the Office for Nuclear Regulation annual report and accounts 2021-22. These documents will also be published on the ONR website.

I can confirm, in accordance with schedule 7, section 25(3) of the Energy Act 2013, that there have been no exclusions to the published documents on the grounds of national security.

[HCWS353]

Oral Answers to Questions

Laura Trott Excerpts

Monday 31st October 2022 Commons Chamber

[John McDonnell (Hayes and Harlington) (Lab)]

9. If he will take steps to provide additional support during winter 2022-23 to women affected by the rise in state pension age.

[The Parliamentary Under-Secretary of State for Work and Pensions (Laura Trott)]

A wide range of support is available to those of state pension age and for those on low income who are entitled to pensioner benefits.

[John McDonnell]

Members across the House will have appreciated the sense of grievance and injustice from women born in the 1950s who were not given proper notice of the rise in the state pension age. The ombudsman has recognised this as maladministration, the right hon. Member for Uxbridge and South Ruislip (Boris Johnson), when he was the Prime Minister and leading the campaign in the 2019 general election, said he would address this matter. Since then, more of those women are now living in poverty and 200,000 of them have died, yet not a single Minister has met them since 2016. Is the Minister willing to meet a delegation from the WASPI campaign to talk about their plight and find a way forward?

[Laura Trott]

I thank the right hon. Gentleman for his question and understand where he is coming from, but there is an ongoing investigation so it would be inappropriate for me to meet people at this stage.

[Mr Speaker]

I call the Scottish National party spokesperson.

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

The Minister knows that in July 2021 the Parliamentary and Health Service Ombudsman found the DWP guilty of maladministration regarding state pension age increases. The PHSO also suggested that the Department could consider being proactive in remedying the injustice suffered by 3.8 million women, rather than waiting for its final conclusions. Given the ongoing cost of living crisis, does the Minister agree that now is the time for the Government to step up to the plate and agree fair and swift compensation for the women suffering that injustice?

[Laura Trott]

I am sorry to disappoint the hon. Gentleman but I must repeat that I cannot comment where there is an ongoing investigation.

[Rob Roberts (Delyn) (Ind)]

10. What recent estimate he has made of the number of pension credit claimants.

[The Parliamentary Under-Secretary of State for Work and Pensions (Laura Trott)]

As of the latest public data of February 2022 there were 1.38 million pension credit claimants.

[Rob Roberts]

I welcome the new Minister to her place and hope she can continue the excellent work done by the hon. Member for Hexham (Guy Opperman) in this area. Despite all that excellent work, however, take-up is still relatively low, and my constituency has 20% more over-65s than the UK average. Will the new Minister meet me to discuss how we might be able to make pension credit at least in part an automatic benefit so that struggling pensioners can get the money they are rightly entitled to?

[Laura Trott]

The hon. Gentleman makes a good point but it is difficult to enrol people automatically on pension credit given the data the Government hold. I am, however, keen to see how increased data sharing could be used to produce a larger number of claims.

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

12. What support his Department is providing to pensioners during the cost of living crisis.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

14. What support his Department is providing to pensioners during the cost of living crisis.

[The Parliamentary Under-Secretary of State for Work and Pensions (Laura Trott)]

This winter more than 8 million pensioner households will receive an increased winter fuel payment; in addition, those eligible for pension credit will receive an extra £650. This Government will always support the most vulnerable.

[Gerald Jones]

Earlier this month I contacted approximately 6,000 people in my constituency who may have been eligible for pension credit, and about 200 people attended a local action day organised with my local citizens advice bureaux. Citizens Advice informs me that as of last week at least £200,000 has been accessed in take-up of pension credit and other benefits as a result of contacts on that day. So far the Department’s action has been limited and half-hearted; the Government should put their money where their mouth is and pay pensioners what they are entitled to. With the information and data the Government have at their disposal, what further action will they take to increase pension credit take-up?

[Laura Trott]

I applaud the hon. Gentleman for the work he is doing in his constituency. This is an incredibly important matter; seven out of 10 people who are entitled to pension credit claim it and we want to drive that rate up. My hon. Friend the Member for Hexham (Guy Opperman) has done a huge amount of work on this and I intend to continue that in the Department.

[Mr Dhesi]

Irresponsible Conservative policies have meant pension funds needed three emergency bail-outs to the tune of billions of pounds, while the spiralling prices of energy, food and other essential items have meant millions of people will be facing a very difficult winter. Statistics from earlier this year, before the cost of living crisis worsened even further, showed that 20%, or well over 2 million, pensioners already lived in poverty, a dramatic increase from a decade ago. Why should pensioners trust this Government to help them through this mess when the reckless behaviour of Conservative Ministers has worsened their plight?

[Laura Trott]

I point the hon. Gentleman to our record: absolute pensioner poverty has gone down; real incomes have gone up. This Government are on the side of pensioners.

[Wendy Morton (Aldridge-Brownhills) (Con)]

I welcome my hon. Friend to the Dispatch Box and I welcome the work that the Government are doing to support pensioners, particularly on winter fuel costs in difficult times. However, many of my pensioners in Aldridge-Brownhills are anxious about the continuous rise in the cost of living. When can we have some clarity regarding the triple lock?

[Laura Trott]

I completely understand my right hon. Friend’s question. However, that is a matter for the autumn statement, and I would not want to pre-empt that.

[Mr Speaker]

I call the shadow Minister.

[Matt Rodda (Reading East) (Lab)]

I welcome the new Minister to her place. The last few weeks have been difficult and, at times, chaotic. The Government have crashed the economy and there has been a revolving door in Downing Street and Government Departments. After all that confusion, will the Minister take the opportunity to reassure the House that the Government are truly committed to the triple lock? Will she apologise to pensioners for the stress and uncertainty that the Government have caused through their repeated attempts to wriggle out of their manifesto commitment?

[Laura Trott]

I do understand the uncertainty, but we must wait for 17 November. However, the average state pension is £185 a week, which is about double what it was in 2010 when we took over.

[Kenny MacAskill (East Lothian) (Alba)]

13. What recent discussions he has had with (a) Cabinet colleagues, (b) the devolved Administrations and (c) other relevant stakeholders on uprating benefits in line with inflation.

--- Later in debate ---

[Ruth Jones (Newport West) (Lab)]

T3. Since I came to this place in 2019, I have worked with and fought the corner of all the women in Newport West who face discrimination due to their gender and age. Those WASPI women—Women Against State Pension Inequality—have shown incredible perseverance and tenacity over the years. Will the Minister set out the steps that are being taken to address this issue? If she cannot meet the women because of the ongoing investigation, will she meet me to discuss this important issue at the earliest opportunity?

[The Parliamentary Under-Secretary of State for Work and Pensions (Laura Trott)]

I am happy to meet the hon. Lady. I point out, however, that the state pension system corrects some of the historical inequalities of the previous system, producing considerably higher outcomes for women.

[Dr Ben Spencer (Runnymede and Weybridge) (Con)]

T8. At Runnymede and Spelthorne citizens advice bureau, I recently met and was incredibly impressed by Becky and her superb team of staff and volunteers and the crucial support that they give to Runnymede and Weybridge residents, working alongside the Department for Work and Pensions. Will my hon. Friend join me in thanking Becky and her fantastic team for the work that they do?

--- Later in debate ---

[Mary Robinson (Cheadle) (Con)]

My constituent suffered months of worry and stress because his employer failed to pay any pension contributions into his workplace scheme. Raising it with his boss made him fear for his job. The regulator gives no feedback on investigations, so will the Secretary of State consider whether the current £400 statutory penalty notice and regulatory powers are sufficient to ensure that employers fulfil their pension contributions duties?

[Laura Trott]

The independent Pensions Regulator has robust powers in place to investigate compliance and issue fines; I urge my hon. Friend’s constituent to report his concerns to it in confidence. I am happy to meet my hon. Friend to discuss the matter further.

[Dan Jarvis (Barnsley Central) (Lab)]

Harry, my 11-year-old constituent, has cerebral palsy. He was previously awarded the higher rate mobility component of the disability living allowance, until it was downgraded. It took nearly two months for a mandatory reconsideration to uphold the decision, which his family are now appealing. There is currently no tribunal date, which means that the family face a prolonged period of uncertainty and anxiety. Will the Minister look at the detail of Harry’s case with a view to expediting a date for the tribunal?

--- Later in debate ---

[Helen Morgan (North Shropshire) (LD)]

Along with many other Members who are present today, I have received a number of emails from concerned pensioners, including one who wrote that if the triple lock is not maintained:

“myself and many others will have to pare our spending even more. Occasional meet-ups with friends will be the next to go and then more and more people will become isolated and depressed.”

Does the Secretary of State agree that maintaining the triple lock will improve the health and wellbeing of our pensioners as we go into the winter?

[Laura Trott]

I completely understand those concerns, but that is why we have provided a package of support—now—which is worth more than £850 for everyone receiving a state pension and £1,500 for those receiving pension credit.

[Gareth Davies (Grantham and Stamford) (Con)]

Last week we celebrated the 10th anniversary of automatic pension enrolment. This is, genuinely, an amazing cross-party policy achievement which has transformed the saving culture across our country. As we look back on that success, will the Ministers consider expanding the system to 18-to-22-year-olds?

Oral Answers to Questions

Laura Trott Excerpts

Monday 6th June 2022 Commons Chamber

[Mims Davies]

Through the Way to Work campaign, we will continue to bring employers and claimants together in our jobcentres, and we know that that is what changes lives and fills vacancies faster. In the local jobcentre in Rother Valley, we are offering sector-based work academy programme swaps in those priority vacancy sectors, such as health and social care, warehousing, construction and security to support people to get quickly into the labour market.

[Laura Trott (Sevenoaks) (Con)]

8. What steps she plans to take to support young people into work following the closure of the Kickstart scheme.

[Jane Stevenson (Wolverhampton North East) (Con)]

19. What steps she plans to take to support young people into work following the closure of the Kickstart scheme.

[The Parliamentary Under-Secretary of State for Work and Pensions (Mims Davies)]

Following the success of Kickstart, which has seen over 162,600 young people start their new roles, the DWP youth offer will continue to support our young people. I have observed at first hand how our new youth hubs and our extended Jobcentre Plus network have helped to move young people into those local opportunities more quickly. That includes recent visits to Eastbourne’s Hospitality Rocks and the Wolverhampton College’s electric vehicle and green technologies centre.

[Laura Trott]

In Sevenoaks and Swanley, the Kickstart scheme was welcomed with open arms. It is used by many brilliant local employees, including Go-Coach and the Mount Vineyard in Shoreham. Will my hon. Friend ensure that the Way to Work scheme focuses particularly on helping younger people in this way, and on helping specific sectors that are struggling to recruit, such as social care?

--- Later in debate ---

[Laura Trott (Sevenoaks) (Con)]

T2. Parents across Sevenoaks and Swanley are facing rising childcare costs. I know that there is a huge amount of support available, so can the Secretary of State update the House on what she is doing to simplify the system so that it is clearer to people what they are entitled to and easier for people to claim?

[The Parliamentary Under-Secretary of State for Work and Pensions (David Rutley)]

The Department is promoting the generous universal credit childcare costs offer as part of a wider national advertising campaign, and it is also working across Government to promote the full range of childcare support through the “Childcare Choices” website and by putting new guidance in place for our work coaches.

Universal Credit and Working Tax Credits

Laura Trott Excerpts

Wednesday 15th September 2021 Commons Chamber

[Dr Coffey]

The last Labour Government—admittedly that was quite a long time ago and many Members of this House will not have been serving here then—did not build enough homes. Prices were not tackled, money was not well spent and we were left with no money.

The shadow Secretary of State will be aware that I am not a fan of talking about relative poverty, because it is simply a statistical element. However, since 2010, there have been 60,000 fewer children in absolute poverty before housing costs. Children living in workless households were around five times more likely to be in absolute poverty last year than those in households in which all adults worked. We know that full-time work reduces the chance of being in poverty. Overall, there are also 220,000 fewer pensioners in absolute poverty.

[Laura Trott (Sevenoaks) (Con)]

When we talk about the legacy of the last Labour Government, we must never forget the sky-high rates of youth unemployment that we inherited from them. Will my right hon. Friend commit to carrying on the brilliant work that she has done to reduce youth unemployment in the midst of this crisis?

[Dr Coffey]

My hon. Friend will be conscious that we are making progress right across the country in tackling that issue. I am conscious that we intend to level up. That is why we are doing a lot of work to make sure that communities right around the country, as well as in her great constituency of Sevenoaks, can take advantage of the schemes so that they can get on and prosper.

With the economy rebounding, now is the time to trust in our track record, which delivered the highest ever employment levels before the pandemic. We know that work and progressing in work are the best route out of poverty. We now have a unique opportunity, with more than 1 million vacancies in the labour market, to help people to move into new and better-paid jobs or to progress in their existing job, raising their earnings and building their financial resilience. We will continue to deliver our plan for jobs, because as we build back better and fairer, a working Britain is at the heart of a Britain that works.

Universal Credit and Working Tax Credit

Laura Trott Excerpts

Monday 18th January 2021 Commons Chamber

[Jonathan Reynolds]

Yes, it is our policy to replace universal credit—not to abolish the welfare state, as some of those videos from Conservative central office have tried to make out today. After I address the causes and the question before us today, I will be happy to talk about some other problems that go beyond the core amount of universal credit, and about why replacing universal credit is the right policy. But before we get to that point, I have to stress that, if this cut goes ahead, it will leave unemployment support at its lowest level ever relative to average earnings. That is not just morally unjustifiable; it is economically incompetent. Cutting unemployment support in the middle of a recession is always the wrong choice, which is why no Government have done so since the great depression.

[Laura Trott (Sevenoaks) (Con)]

I am grateful to the hon. Gentleman for his tone at the beginning of the debate. Just for our understanding, will he tell us whether the Opposition propose making this increase permanent? If so, how do they propose to pay for it?

[Jonathan Reynolds]

We believe that this uplift should stay in place during the crisis, and I do not think anyone believes that the crisis will end in April. I will make some points about long-term proposals near the end of my speech, as well as about why the whole system requires much more considerable reform than just tinkering around with the core amount.

The cost of paying for all this is significant: around £6 billion. That would vary depending on the levels of unemployment throughout the year, but any measure right now that cuts public spending or raises taxes in the middle of the biggest economic downturn for 300 years would be the wrong policy. Decisions will have to be made as we get into the middle of this decade to address the levels of debt that have been accrued by the Government during this crisis, but that is not the right choice now.

I want to focus on the point raised by the hon. Member for Sevenoaks (Laura Trott), because if the Government are seriously thinking about economic recovery, cutting universal credit is like pulling the rug from under the economy’s feet. This £20 a week is not saved by families; it is spent in shops and businesses across the country, stimulating the economy. We all agree that this pandemic and the unemployment crisis will not be over by April this year, and whatever protestations we have heard on social media or in the press—and, frankly, however people vote today—I know that there are many people on the Government Benches who agree with this case. The former Secretary of State for Work and Pensions, the right hon. Member for Preseli Pembrokeshire (Stephen Crabb), recently said:

“Withdrawing the uplift would reduce the spending power of people on lowest incomes. This will likely reduce consumption, meaning families going without essentials and household debts rising. It would also see a reduction in spending just when the economy needs it most.”

I could not agree more with that assessment. He is also right to draw attention to the levels of personal debt for some households.

As well as the real value of benefits being historically low as we went into this crisis, the pandemic has meant very real additional costs for most families. There are more meals for people to cook at home, and more days to heat their house. People have devices and lights on at times they would not normally, and have to buy what they need to teach their children at home. The clinically vulnerable have been forced to buy food locally, at a higher cost than in larger supermarkets. Everyone has experienced the pandemic differently, but for some the costs have piled on.

Citizens Advice told me this week that three quarters of the people it helps with debt who currently receive universal credit and working tax credit would have a negative budget if the £20 was cut. That means that they will have less money coming in than going out, and will not be able to cover basic essentials such as food or heating—and it will come at a time when one in three households has lost income because of covid, and 7.3 million people are behind on their bills.

The proposed cut to universal credit and working tax credit is not the only issue causing consternation in the country right now. I would particularly highlight the continuing injustice for those people on employment and support allowance and jobseeker’s allowance, who did not even get the uplift to begin with. That is unjustifiable and discriminatory, and I ask the Minister if he would mind specifically referencing that point in his speech. Reversing the April cut to universal credit is a specific, clear and unavoidable decision that needs to be taken, which is why it is right that we are bringing it to Parliament today.

Some of the speeches that we will hear today will no doubt say that we should focus on jobs and getting people back to work, and not on social security. The Prime Minister said something along these lines at the Liaison Committee last week, but Members will know that universal credit is an in-work as well as an out-of-work benefit—40% of universal credit claimants are in work—so that argument does not work at all. To be frank, it would be helpful if someone told the Prime Minister that. Universal credit is also means-tested, so if people go back to work and do not qualify for it, they will not receive it at all. If we want to have a serious discussion about boosting employment and making work pay, let us discuss work allowances, the taper rate and deductions, but let not the Government try to use that as an excuse to do the wrong thing on this cut.

Others might say that support should be more targeted and the basic allowance is the wrong element to target. In that case, the Government would, logically, scrap the two-child limit or the benefit cap, which disproportionately affect people in the most difficulty—larger families in areas with higher housing costs. However, when we put that forward, it, too, was rejected.

Finally, there has been a proposal for a one-off payment to compensate people affected by this cut. That is an awful idea. It does not address the real-terms reduction in support, just as unemployment is expected to peak. More than that, although 6 million families are affected by this now, that cohort will change in composition throughout the year. A one-off payment based on who is eligible now will fail to support some of the people who need that help the most. So please, Minister, ask the Chancellor to think that one through again.

I know it sometimes frustrates Conservative Members that we are still determined to replace UC altogether—I was asked that question earlier—but I say to them that, if they will not listen to those on the Opposition Front Bench, they should read the work of the cross-party Select Committee on Work and Pensions and read the report of the cross-party House of Lords Economic Affairs Committee, which is chaired by Lord Forsyth. They are clear and robust in highlighting the fundamental problems that currently exist: the five-week wait; the two-child limit; the erratic assessment period; the problems with paying for childcare in arrears; and the shocking design that means that many disabled people are worse off on UC. The last one of those is very personal to me and it simply is not right not to replicate how the severe disability premium worked under the previous arrangements. All this means that UC’s brand is severely tarnished. If everything was working as well as Ministers sometimes say, would we really be a country where food banks have gone from being a niche form of support, mainly for those without recourse to public funds, to a mainstream and essential method of keeping people fed? Would we have had the fundamental increase in child poverty, which is getting bigger with every year of Conservative government? Those questions deserve answers.

Throughout the crisis, the Government have often been behind the curve, never out in front, and they have left some decisions, such as on furlough extension, to the very last minute, in a reckless game of brinkmanship. That is heavily why we have, tragically, the highest death toll in Europe and the biggest economic downturn of any major economy. Let us not repeat that with this decision. We all know that families are looking at us, wondering what we will do to help make getting through this crisis just that bit easier. What they do not expect is the Government making it even harder. I hope that one thing we can all agree on is that the crisis has shone a light on some of the problems in the UK, problems that have made tackling the pandemic harder and provoked a discussion about what kind of society we want to rebuild when the pandemic is over.

If the ambition of Conservatives really is to level up the UK, it is hard to see how they can support a cut that would be so regressive to low-income families and which disproportionately affects the places the Government say they want to help. I am talking about families such Bethany and her child in Blackpool. She said to me, “I was made redundant due to coronavirus. As a single parent to a one-year-old, universal credit is now the only income I receive. If the Government does cut £20 a week, I will become one of the statistics needing to use a food bank. It devastates me to think that I will not be able to provide for my child should this decision be finalised.” Margaret, who has been volunteering at a food bank in Luton, says, “A young man came in for a food parcel. He looked thin and his face was grey. He sat down and he said that he thought he could last with no food until the universal credit came through, but he found that he couldn’t. He’d come in on a Wednesday and his universal credit was due on the Friday.” That is the reality before the cut has gone ahead. My inbox is full of personal accounts such as those. I urge every Member to look at what is in their inbox, read about the human cost of what it will be like for people if this cut goes ahead, address the worries people have about not being able to put food on the table, and think long and hard about the uncertainty and fear that all families face after 10 long, hard months of this pandemic.

I want to make a special appeal to the new MPs on the Conservative Benches whose constituents elected them in good faith for the first time in 2019. Many of those people are the first Conservative to ever be elected to those places. They have already made history and their success is a significant personal achievement. They will be remembered, but so will their votes. Most of all, when thinking about how to cast their vote today, I urge everyone to take a moment to reflect on what this cut will mean to the people who send us here: the uncertainty it will add in an already uncertain time; the loss it will bring when we have already lost so much; the fear it will cause when what people need is hope. So, for our constituents, for the economy and for the national interest, we need to cancel this cut and I ask every Member of the House today to support our motion to do so.

--- Later in debate ---

[Laura Trott (Sevenoaks) (Con)]

I am grateful to the Opposition for bringing forward this debate, because it gives Conservative Members an opportunity to talk about the wide-ranging and comprehensive support that we provided to the lowest-income and most vulnerable families in this country. We did so not just through the £20 universal credit uplift, but through the furlough scheme, which we know is critical to keeping that vital link to work—the sustainable route out of poverty—through the hardship fund, through the winter support grant and through the catch-up schemes. This support has been provided to the families who most need it—and in a timely fashion.

It is worth dwelling on a point that the Minister and others have made: at points during this crisis, we had 100,000 people a day applying for universal credit, yet nine out of 10 applicants were paid on time—a fact that I hope to see recognised by more Opposition Members. In that context, it is inexplicable that we would now seek to scrap universal credit, and it is worth dwelling for a second on what we inherited from the Labour Government. It can be summed up in two simple words: welfare trap. We had a welfare system that was inexplicable, with six interacting benefits. If a person went into work, they actually lost money. There was an effective tax rate of 90%.

[Jonathan Reynolds]

I am grateful to the hon. Lady for raising that matter. The politics of the taper rate is one of the fundamental points in any welfare system. Under universal credit, the taper rate is 63%, but that does not account for income tax or national insurance, so the withdrawal rate is effectively 75p in the pound. She did not give the full picture. Universal credit, according to the Joseph Rowntree Foundation, reduces the deduction rate from over 80% for some families, but it increases the deduction rate for other families. There are more families facing a deduction rate of between 60% and 80% than before, so the situation is more complicated. It depends on a person’s circumstances, including the hours they work and whether they rent. Putting this in binary terms is not, I am afraid, correct. We should look at the detail, because that is what the debate deserves.

[Laura Trott]

The hon. Gentleman is quite right that there is a debate to be had about the right level of the taper rate, but I think we can all agree that it is better that people should want to earn more by working, and that the previous situation was worse. We have moved forward, but there is always more progress to be made, and it is important that we make progress. I think the new system is better than the last. We have a welfare system in which it pays, for the most part, to go to work. We are trying to provide a safety net, not a trap; that is the difference between now and what we had.

Today, we are discussing a complex question. The hon. Gentleman and other Labour Members will know that getting people out of poverty is more complicated than just giving them money. That is necessary, but not sufficient in and of itself. We need to provide re-training, help to get into work, and support for the whole family in the numerous challenges that they may face. It is absolutely right that this decision be taken in the round at a fiscal event, when we can think about how to look at all these things, and, crucially, how we pay for them.

The Opposition said this was not the time to think about fiscal events. We have shown that we will throw the kitchen sink at protecting the most vulnerable during this crisis, but that does not mean that we can make uncosted spending pledges. We need to think very carefully about how we deploy our money. That is not to say that a debate should not take place, but we should think about this in the context of our wider spending pledges, and in the context of making sure that we target support at the most vulnerable in society. I am very glad that, at the outset, all of us, wherever we sit in this House, recognised that we are all here to do that.

Covid-19: DWP Update

Laura Trott Excerpts

Monday 4th May 2020 Commons Chamber

[Dr Coffey]

In the light of what has been happening, we have tried to streamline the process. I do not know the details of the individual case to which the hon. Lady refers, and I am sure that my hon. Friend the Minister for Disabled People, Health and Work would be happy to look into that situation. I do not know whether no assessment had been made at all or whether the outcome was being contested. I want to make sure that we are not ignoring situations and that new claims are still being processed, but I accept that there may be people we need to follow up on, and I would be happy for my hon. Friend to do that on the hon. Lady’s behalf.

[Laura Trott (Sevenoaks) (Con) [V]]

Despite the enormous support being given to business, many people are newly unemployed. What steps are being taken to highlight to them the job opportunities in growing sectors of the economy?

[Dr Coffey]

I am pleased that we have added to the jobs website on dwp.gov.uk, and there are about 58,000 vacancies currently advertised there. I am supportive of all the work that has gone on under my right hon. Friend the Secretary of State for Education, such as on how people can get new skills, including through courses that are being made available online. There are, therefore, opportunities to consider upskilling while people are, sadly, not working, and people can also speak to their work coaches about potential further assistance.

Oral Answers to Questions

Laura Trott Excerpts

Monday 9th March 2020 Commons Chamber

[Dr Coffey]

I am conscious of CPAG’s report, which tends to use the relative “after housing costs” poverty measure. However, it is important to say this about the relative element; if we go back just over 10 years, we can see that just having a recession reduces relative poverty. We need to keep focused on what is really happening to families. That is why, if we use the absolute poverty measure, we will see that fewer people are in poverty than was the case 10 years ago. We will continue to work with parents to ensure that they try to earn the amount of money that they need so that they can continue support their children.

[Laura Trott (Sevenoaks) (Con)]

Childcare costs place a huge strain on family finances. Will my right hon. Friend outline what help is being given to families with up-front costs of childcare?

[Dr Coffey]

The way universal credit works is for people to have payments in arrears, but 85% of eligible childcare costs are covered, compared with 70% under the legacy system. It is also important to stress that the flexible support fund can be used to help with those sorts of costs, but we need to ensure that people are paying according to their salaries, as opposed to our simply giving grants up front.