Oral Answers to Questions
Patricia Gibson Excerpts(5 years, 4 months ago)
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Alok Sharma
That is a typically forthright question from my right hon. Friend. To compare rates, in France the unemployment rate is over 9% I believe, but of course the other incredibly important progress we have made is in youth unemployment. That has been almost halved since 2010, thanks to the work we have been doing in government.
Mr Speaker
Order. We are now moving on to question 5, but I say to the hon. Lady that it is the first day back and we should celebrate her enthusiasm.
Patricia Gibson (North Ayrshire and Arran) (SNP)
Ronnie Cowan (Inverclyde) (SNP)
The Minister for Employment (Alok Sharma)
The roll-out of universal credit is now complete and is available in every jobcentre across the United Kingdom. By 2023, all existing legacy claimants will have been moved to universal credit which, as set out in our business case, will result in £8 billion in economic benefits a year to the British economy.
Patricia Gibson
Local authorities in Scotland have spent over £20 million on mitigating the harmful effects of UC, thus diverting money from key local services. Does the Secretary of State think this is acceptable, and was it envisaged when universal credit was conceived? Is it not more evidence that this system needs to be stopped and fixed to make it fit for purpose?
Alok Sharma
We do of course have the policy of new burdens funding, and in 2017-18 the Government paid out £30 million to local authorities across the country. If the hon. Lady has specific issues in relation to local councils on her patch, she should come forward as I will be very happy to have a discussion with her outside this oral session.
State Pension: Women born in the 1950s
Patricia Gibson Excerpts(5 years, 5 months ago)
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Patricia Gibson (North Ayrshire and Arran) (SNP)
I beg to move,
That this House has considered state pension equalisation for women born in the 1950s.
I stand today feeling the weight of despair, the burning sense of injustice and the genuine bewilderment felt by the women who, by sheer bad luck, were born in the 1950s and thereby inexplicably became fair game to be robbed, mugged and made the victims of theft of the most cruel and callous kind. For some women, that theft can be of up to £40,000 in lost pension. A large number of MPs—too many to mention—who support the Women Against State Pension Inequality in their quest for justice sent messages asking me to convey their support despite their absence. Many colleagues across the House dearly wanted to speak in the debate but were unable to attend.
In my lifetime, this could be the most unjust Government policy since the poll tax. It affects 3.8 million women, and 4,800 women in my constituency. The acceleration of the timetable set out in the Pensions Act 1995 has meant that these women have faced changes to the pension age abruptly, with little or no time to adapt and prepare. These women have had their pensions stolen from them—it is as simple as that. They paid into their pensions through a lifetime of work, raising their families, and often acting as carers for other members of their families. They did all the right things, only to be told, when it came time for them to be paid, that the rules of the game had changed. Not only that, but no one had thought to tell them that the rules of the game had changed—and that was just bad luck.
In addition, lower wages and broken employment periods mean that many of these women do not have a full national insurance record, so they receive lower state pensions than men anyway. Indeed, the average woman receives about 82% of what a man receives in his state pension. They also have a fraction of the savings of men. Equalisation is not just about the age at which people reach retirement.
With no time to make alternative plans, many women are suffering, and many are now living in poverty as a direct result of the political choice not to give them their due. Only last week, Philip Alston, the UN special rapporteur on extreme poverty and human rights, concluded that after decades of decline we are now witnessing a rise in pensioner poverty, with the figure rising in recent years by 300,000. He went on to say that
“a group of women born in the 1950s have been particularly impacted by an abrupt and poorly phased in change in the state pension age from 60 to 66.”
Patricia Gibson
I will just finish the quotation from the rapporteur. He continued:
“The impact of the changes to pensionable age is such as to severely penalize those who happen to be on the cusp of retirement and who had well-founded expectations of entering the next phase of their lives, rather than being plunged back into a workforce for which many of them were ill-prepared and to which they could not reasonably have been expected to adjust with no notice.”
I would be keen to hear the Minister’s response to the rapporteur’s words. If he wishes to intervene to rebut them, I would be delighted to give way, but in the absence of his seeking to intervene, I will take an intervention from the hon. Member for Coventry South (Mr Cunningham).
Mr Cunningham
I do not know about that. I congratulate the hon. Lady on securing this timely debate. We have had many such debates, but the Government do not seem to get the message. From the start of the recession until now, women have carried the burden of the recession. In tax adjustments, the Government saved something like £14 billion at the expense of women. The amount the Government are saving through not doing the right thing by these women probably runs into billions. A fraction of those billions could take care of the problem.
Patricia Gibson
The hon. Gentleman makes his point well. It was recently said to me that it was interesting that the Government have chosen to pick a fight with women of a certain age, with a policy that will most harshly affect women in a lower income bracket. They will feel the most pain as a result of the policy, and were perhaps considered an easy target. Perhaps the Minister has views on that.
I have participated in every debate on the WASPI women since I was elected, and I repeatedly hear from whoever is responding for the Government—a variety of Ministers have done so—that the policy is about us all living longer. However, the debate is not about life expectancy, although we know that that has stalled; it is about women who had their pension age changed with little or no notice, directly causing considerable hardship.
David Linden (Glasgow East) (SNP)
My hon. Friend has been a consistent campaigner on this issue; there have been so many debates, and it is heartening to see her pressing it so often. She is absolutely right to press the point about life expectancy. Whenever we have had a debate on state pension inequality, the Pensions Minister has been unable to tell me what the life expectancy in my constituency is. Newspapers such as The Guardian like to talk about the life expectancy in Glasgow East, so I am surprised that the Minister does not know that it is not that high. The changes really affect people in my constituency.
Patricia Gibson
I suspect that the Minister knows fine well the life expectancy in Glasgow East and various parts of the UK, but it might make uncomfortable reading when trying to impose a one-size-fits-all policy and stealing people’s pensions. Many of the women in my hon. Friend’s constituency, and indeed in my own, will die before they are of age to collect.
The Institute for Fiscal Studies has pointed out that more than one in five women—21.2%—in the group affected by the recent increases in the state pension age were in poverty, which is up 6.4% on the situation pre-reform. Meanwhile, analysis by the Centre for Longitudinal Studies found that the poorest pensioners are the least able to work into their later years. It concluded that both men and women who had been poor during their working lives were the most likely to leave the job market between the ages of 50 and 55, with poor health being the key driver.
With striking inequalities in life expectancy and health expectancy, there are great worries that the policy hits hardest the poorest and most vulnerable. That has been borne out by analysis by the Institute for Fiscal Studies that shows that a third of single women aged between 60 and 63 were in poverty after housing costs—up 13.5% since before the reforms. Similarly, nearly four out of 10 people who rent their homes are in poverty—up from around a quarter. The IFS also found that 1.1 million women had seen their individual incomes fall by an average of £50 a week. Increased income from earnings is simply not enough to offset the loss of pensions. TUC analysis shows that half a million workers who are within five years of state pension age have had to leave the workplace for medical reasons, and that those who have worked in the lowest-paid jobs are twice as likely as managers and professionals to stop working before retirement age, owing to sickness and disability.
In the absence of labour market reforms, it is hard to see how raising the state pension age will allow this group to continue working. Rather, it will mean greater reliance on working-age benefits, which the Government say they wish to avoid. That makes it even more indefensible—this point is key and I hope the Minister is listening, because I would really like him to address it in his reply—that the Government decided to implement the Cridland review’s recommendation to accelerate the rise in pension age to 68, but chose to ignore the welfare reforms that John Cridland said would be essential to cushion the impact of those changes. Will the Minister tell us why? The Government cannot just pick the bits they like; they should implement the whole review or none of it.
The Government have not listened, but that does not mean that these women are not suffering. Many of them have been left destitute. The Government may think that because they are ordinary women—organised, persistent and dignified as they are—they are easier to ignore than rich and powerful men, but the reality does not bear that out. These women have been robbed, betrayed, misrepresented and mistreated, and they will not go away. I repeat a question that I have asked the Government many times: where on earth do they expect these women to go?
Mr Bob Seely (Isle of Wight) (Con)
The 10,000 or so WASPI women in my constituency are certainly not natural protesters who wave a placard at the first opportunity. In fact, they have played a very positive role in our communities throughout the years. They are to be found in the women’s institute, making jam, and in many other voluntary groups. It is deeply disappointing that any Government should treat them in such a disrespectful way. Considering that the Chancellor announced more money in the recent Budget, it would have been nice if that Budget had given the WASPI women some recognition.
Patricia Gibson
I agree with everything the hon. Gentleman says. One of the most frustrating things that WASPI women have found in their quest for justice is not that they are not getting what they are asking for—bad as that is—but the wall of silence with which they have been met. It is as though they do not exist. That is not acceptable.
Sir Peter Bottomley
There have been too many occasions on which Pensions Ministers have said how many years women will get a pension for—once they get it. Can we make it plain that the question is what happens in the years before they get the state pension?
Patricia Gibson
The Scottish National party commissioned independent research into how this could be resolved, but the Government rejected it. As far as I can see, they have rejected every other potential solution proposed from every quarter. I would like the Minister to tell us how he thinks the matter can be progressed, because doing nothing is not a sustainable option—certainly not for the WASPI women.
Patricia Gibson
I will make some progress.
The WASPI women’s situation is doubly unjust because they are a group who have faced pay discrimination throughout their working lives. They have been paid less, acknowledged less and valued less. Now, when they should be enjoying retirement, they are expected to sit quietly and simply accept the loss of their well-deserved and much-needed state pension. This is not pin money; it is money to pay the rent, buy food, do the shopping and pay the bills. How is that decent, by any measure? It is an absolute disgrace.
The Minister really must have a brass neck if he thinks he can talk his way out of this. The UK Government’s lack of engagement on the issue has been breathtaking in its arrogance. These women know that many of the hardest hit among their number have been driven to self-harm and suicide. Of 873 respondents to research undertaken for the BackTo60 campaign group by the charity SOS Silence of Suicide, almost half had self-harmed because of the stress and hardship caused by this pension reform, while 46% reported having suicidal thoughts as a direct result, and 70 women had attempted to take their own lives. All the while, the UK Government wring their hands and stutter about people living longer.
Such is the Government’s intransigence that these women have been forced to go to court. BackTo60 has launched a judicial review to force the Government to reverse their decision. The argument will be made by Michael Mansfield QC that the pension policy implemented by successive Governments is a gross injustice and is discriminatory, even though the delay in paying out the pensions is in the name of equality—there’s a wee irony for you. Law professor Jackie Jones has argued that the UK is in breach of its international treaty obligations. The demand for what is right—fair transitional arrangements for these women—will not be silenced.
Inconveniently for the Government, the former Pensions Minister, Steven Webb, has conceded that not enough was done to inform and prepare these women for the changes. The Select Committee on Work and Pensions concluded that
“more could and should have been done”
to communicate the changes. It seems that a mess was made of the acceleration of the changes in the Pensions Act 2011, but the only people to pay the price for that mess are the women involved.
Chris Stephens (Glasgow South West) (SNP)
Many women, including constituents of mine at the Blackfriars pub in Glasgow, are watching this debate and listening to my hon. Friend’s excellent speech. Does she agree that the mythical letters that the Department for Work and Pensions was supposed to send to so many women to tell them that their pensions were changing were so elusive that there was a better chance of finding a golden ticket in a Wonka bar than of getting one?
Patricia Gibson
Indeed. I am sure that the WASPI women are gratified to hear the support in this Chamber for their cause and their quest for justice.
Let me turn, before the Minister does, to the well-worn phrases and half-hearted justifications that may well form part of his reply. Let me be clear: this debate is not about the age at which people should retire, nor is it about how we are all living longer. It is about successive UK Governments not communicating significant changes in the women’s pension age, and about the political choice not to address that in order to save money. It is about how expendable women born in the 1950s are to this Government. The fact is that pension equalisation was not supposed to begin until 2020, as set out in the Pensions Act 1995, but that was accelerated in 2011 with no communication of or care for the effect on women. That had the added bonus—accidental, I am sure—of saving the Treasury about £5 billion a year by equalising the state pension age at 65.
In an interesting development, Baroness Altmann, who was formerly a great champion of older people but was neutralised in this debate by being elevated to the Lords and given a ministerial portfolio on pensions, has now told us that she was informed that the 1950s women
“would go away sooner or later.”
Well, guess what: they are still here. They are watching today in this Chamber and in towns and villages across the UK, willing this cruel and heartless Government to listen and do the right thing.
We continue to hear from this Government—I am sure the Minister is planning to mention it—that concessions of £1.1 billion have already been made. That figure is trotted out as though the Government have targeted money at the women affected. That is, at best, disingenuous. The £1.1 billion did not go solely to women and the concessions were limited to 500,000 men and women who were born within a short timeframe—between January and October 1954. The concession took the form of limiting the delay with the change in annually managed expenditure, estimated at £1.1 billion. I want to be clear: £1.1 billion of cash was not doled out to people in envelopes; in fact, it was not a monetary exchange for those involved.
Today I and my party stand beside the WASPI women, who have been the victims of a great injustice. As I said earlier in my speech, it is no less of an injustice than the poll tax. We will continue to stand beside them. The issue has not been debated in the Commons for more than nine months, and I am sure the Government thought the storm had passed. It has not passed. It will not pass. These women are engulfed by the storm every single day they have to manage without their pensions. Up and down the country, in all parts of the UK, WASPI women are watching the debate, inside and outside the Chamber—including Cunninghame WASPI, to whom I pay tribute. All the WASPI women are waiting for justice, hoping against hope that this heartless Government will finally hear their pleas for what is rightfully theirs to be restored to them.
Patricia Gibson
I am sorry; I am just about to wrap up.
In the name of all that is just and all that is right, I urge the Minister to go back from the debate today and tell his Government that this must not stand. The WASPI women need and deserve their pensions. Let us get this sorted. Let us undo the damage once and for all, and let us do it now.
Alex Burghart
That makes two of us, Mr Bone.
The hon. Member for North Ayrshire and Arran did not talk much about the cost of reversing Government policy, which is a shame. I understand that the SNP has costed the reversal of the Pensions Act 2011 at £8 billion, but other experts see that as a vast underestimate. It would actually cost the taxpayer £30 billion or more. There is no doubt that the Scotland Act 2016 gives the Scottish Government the powers that they need to address the issue.
Patricia Gibson
I am really disappointed that we have a speech from somebody who clearly has not read the Scotland Act 2016 and has just lifted the headline from the Daily Mail or whatever it is that he reads. There is no power in that Act to mitigate yet more Tory cuts. We already mitigate Tory cuts to the tune of tens of millions of pounds. Even if we wanted to, under section 28 of the Act—the hon. Gentleman can look it up—we do not have the power. Once again, I urge him to stick to the focus of this debate. He says that I did not talk about money, but I talked about what it has saved the Treasury. Let us spend that money on these women.
Alex Burghart
The focus of the debate is compensation for the women involved. It is a fact that the Scottish Government could do more than they are doing.
Guy Opperman
That is the debate that, clearly, has to be held. I return to the point that the decision was originally taken in 1993 by my—then very youthful— right hon. and learned Friend the Member for Rushcliffe (Mr Clarke) and was supported by a series of Governments and Ministers way more experienced than I am, who have been here over the past twenty-something years. I am merely continuing that debate and discussion about how we progress.
Patricia Gibson
I thought I heard the Minister say that there had been a fall in pensioner poverty. That leads me to question where he gets his information. The UN special rapporteur was clear: between 2012-13 and 2016-17 there was a 300,000 rise in pensioner poverty in the UK, which he specifically linked to the rise in state pension age. Is the special rapporteur wrong?
Guy Opperman
We may take some time to dissect the specific figures on that, but I will attempt to do so—[Interruption.]—if the hon. Lady bears with me.
One starts with the basic principle that the figure used to be at 40% for relative poverty and is now down to 16%. The reason for the 300,000 increase is that more pensioners are in relative poverty after housing costs. That is the issue in relation to relative poverty, because in the past few years the housing costs of those of working age have reduced, because of lower mortgage rates. That reduction in housing costs increases income for those with mortgages, and that pushes median income up. That then feeds through to increase the number of pensioners who are below the 60% of median income poverty line, as the vast majority of pensioners do not have a mortgage and so do not see any benefit from lower mortgage rates. There can be a discussion about relative and absolute poverty and how to measure them, but the overall trend is dramatically down for such poverty, and I believe the explanation of what the rapporteur said is as I have just set out.
I have not addressed the specific point about the Scottish National party proposals and the vexed question of the Scotland Act 2016. As I understand it, various previous proposals—and specifically the one outlined today—would reverse the 2011 Act in its entirety. The SNP’s projected cost for that is £8 billion. We manifestly disagree and suggest it would be in the region of £30 billion, with further costs as long as women’s state pension age was below 66.
As to the Scotland Act powers, I accept that the hon. Members for North Ayrshire and Arran and for Paisley and Renfrewshire South (Mhairi Black) and I have had robust debate on many such occasions, but I would always say as I have previously, “Don’t take this from me.” I will read the letter from Jeane Freeman of 22 June 2017, in which she sets out what payments can potentially be made under sections 26, 28 and 24 of the Scotland Act 2016. Under the heading of section 26 she states:
“This power is limited to providing help with ‘short term needs’, and those needs must require to be met to avoid a risk to a person’s wellbeing… Their needs and the risks to their well-being would have to be assessed individually.”
Patricia Gibson
I know that I have just two or three minutes to sum up the debate. I am beyond disappointed. We have heard nothing new today. We have seen again a huge lack of any real and meaningful engagement from the UK Government. That lack of engagement has to end. It is dismissive of and disrespectful to an entire generation of women.
Giving speeches on the history of pensions is not what the debate was about, and it does nothing to address either the fact that women’s pensions were stolen or the suffering caused as a result. The debate was not about life expectancy; it was about the theft perpetrated upon women. These women were often excluded from company and workplace pensions. They raised families and cared for relatives and they have now been abandoned by the UK Government. To be told that there is no solution, as we heard from one Government Member today, is frankly an insult. It is not good enough, and the campaign will go on.
Brexit is entirely consuming UK politics, but we can and will continue to keep this issue firmly on the agenda. These women are our mothers, sisters, grannies and wives, and the UK Government have not heard the last of this. The entire state pension system has been undermined by this travesty. A social contract has been broken, and I remind those in this place that an injustice anywhere is a threat to justice everywhere.
Question put and agreed to.
Resolved,
That this House has considered state pension equalisation for women born in the 1950s.
Universal Credit
Patricia Gibson Excerpts(5 years, 6 months ago)
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Gareth Johnson (Dartford) (Con)
Let me say at the outset that I do not claim that everything about universal credit is perfect, or that everything has gone according to plan. I think it is inevitable that such a huge reform will involve issues that will need to be dealt with. To suggest that it should be scrapped, however—as the hon. Member for Garston and Halewood (Maria Eagle) has just done—is to risk losing the significant benefits that it has brought about. We should not be in the business of throwing the baby out with the bathwater, but that is precisely the attitude of those who say that this whole benefits system should be scrapped.
It is worth noting why it was necessary to bring in universal credit and to consider where we have come from. Under the last Government, we had a system that was confusing, bureaucratic and unfair, and ensured that people did not receive the benefits to which they were entitled. Indeed, that was factored into the budget of the DWP, which knew that the system was so complicated that it would not have to pay out the money that it would otherwise have had to pay out. Those arrangements also led to the worst aspect of the system, which was that it prevented people from working.
Patricia Gibson (North Ayrshire and Arran) (SNP)
The hon. Gentleman is telling us about the faults of the previous system. Single parents are particularly hard hit by universal credit: cuts in the work allowance mean that the average parent loses about £800 a year, and some lose up to £2,000 a year. Given that 91% of single parents are women, this system discriminates hugely against women. Does he agree that that is unfair and should be addressed?
Gareth Johnson
I do not agree. There have been these transitional protections that we need to have in place. I am not saying that every aspect of universal credit has been correctly implemented—I do not think anyone is claiming that—but I think it is right that we try to ensure that people are better off under this system and that it is a fairer system. Most important, as I have said, is that it should enable people to work.
Under the previous system, I lost count of the number of times people said to me, “I cannot afford to work.” They used to say that they could not possibly get a job even though they would love to do so because they would lose their benefits as a consequence. That was as frustrating as it was wrong. It trapped people into staying on benefits and ensured that people got out of the habit of working. The best way out of poverty is through work and we need a benefits system that allows for that, and we did not have that under the previous Administration. What we saw was excessive tinkering, which added to the confusion surrounding benefits. Myriad different types of tax credits were introduced and abolished during that time; it was described at the time as being like a gardener going around pulling up plants to see if the roots were still there. That is how complicated the system was that we had to take over. We needed change and we had the courage to bring about that change. We should take the credit for having done so.
The strength of universal credit is that it simplifies things and encourages work. Benefits should mirror the working world. That is why it is right that most UC payments are monthly; most salaries are paid monthly. It should provide a way back into work and not provide a way of life.
One major test for UC is whether it is helping people get back into work. The answer to that is an emphatic yes. We have seen huge increases in employment. Youth unemployment is at its lowest rate ever and wages have exceeded inflation every month for the last seven months. Part of the reason for this is that we have a benefits system that facilitates work. We were told—I think it was Ed Balls who said this—that our policies would result in unemployment going up by 1 million, but the contrary is the case: employment has gone up by 3 million as a consequence of our policies. No one is claiming that the system is perfect—I am certainly not—but it is a massive improvement on what we previously had, so is well worth keeping.
One of the reasons we have low unemployment in the UK while it is much higher in other countries, particularly on the continent, is that we have a benefits system that allows people to get back to work. Yet some people inexplicably say that that system should be scrapped.
I will cut my comments short now, as I am running out of time. Care and consideration are needed during the rest of the implementation of UC. It needs to be done and it needs to be adequately funded. I ask the Minister to be cautious in doing this. We must not be complacent about it, but we should not scrap UC, as we have been asked to do.
Universal Credit
Patricia Gibson Excerpts(5 years, 6 months ago)
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Alok Sharma
It is interesting that the hon. Gentleman talks about employment on the day that we have reached a record low level of unemployment since 1975. The policies of this Government are clearly working: 80% of first payments are made fully and on time; in some cases, that figure gets up to 90%. It is important that we get the right information from people to be able to verify their costs. If we are able to do that, payments are made.
Patricia Gibson (North Ayrshire and Arran) (SNP)
Despite the Minister’s responses today, universal credit is causing chaos, hardship and unnecessary suffering to people in my constituency as they seek to access essential support. Will he accept my invitation to visit my constituency to discuss the challenges of universal credit with my constituents so he can explain to them why he believes that universal credit is working?
Alok Sharma
I do visit jobcentres in different parts of the country. If the hon. Lady would like, we could have a discussion with the people in her jobcentre who are delivering this service; I am happy to arrange a call together with her.
Women and Equalities
Patricia Gibson Excerpts(5 years, 7 months ago)
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Patricia Gibson (North Ayrshire and Arran) (SNP)
Sarah Newton
The hon. Lady will be aware that £1.1 billion of concessions have been made, and it is really important to note that as a result of our reforms, more than 3 million more women will receive £550 a year more by 2030.
[Official Report, 13 September 2018, Vol. 646, c. 866.]
Letter of correction from the Minister for Disabled People, Health and Work, the hon. Member for Truro and Falmouth (Sarah Newton):
An error has been identified in the response I gave to the hon. Member for North Ayrshire and Arran (Patricia Gibson).
The correct response should have been:
Patricia Gibson (North Ayrshire and Arran) (SNP)
Sarah Newton
The hon. Lady will be aware that £1.1 billion of concessions have been made, and it is really important to note that as a result of our reforms, more than 3 million women will receive on average £550 a year more by 2030.
Funeral Poverty
Patricia Gibson Excerpts(5 years, 8 months ago)
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Patricia Gibson (North Ayrshire and Arran) (SNP)
I thank the hon. Member for South Shields (Mrs Lewell-Buck) for the constructive and informed way she opened the debate. Funeral poverty remains a pressing issue, which affects far too many of our constituents. I have spoken in debates on this matter on every occasion it has arisen since I was first elected in 2015. I have spoken to far too many constituents who have been deeply distressed by the costs of burying their loved ones. As the hon. Member for Southend West (Sir David Amess) pointed out, there is a rare consensus on this issue, because we all recognise that it cuts across party boundaries.
The matter I keep returning to in these debates is that when a family loses a loved one, a bereaved person’s human instinct, through the shock, fog and bewilderment of grief, is to give the person they have lost the best and most dignified send-off they can. There is nothing else they can do. Often, understandably, thoughts about the cost of the funeral do not factor into their considerations at that time of grief, and only later—albeit when the grief is still raw—does the reality of the debt and the cost of that send-off become apparent. Too often, for too many people, the anxiety over this debt works against and interferes with the entire grieving process.
We can agree that, for those on benefits and low incomes, help with funeral costs has not kept pace with the cost of funerals. That must be a cause of great concern to all of us. In our constituencies, we have all witnessed the anxiety of those struggling to meet funeral costs for their loved ones, as they battle through their grief.
As we have heard from the hon. Member for Southend West, it is important to remember that, as well as the huge variations in the cost of funerals, funeral plans are not realistic for those struggling week on week to put food on the table. The over-50 plans we hear about can also mean that those on low incomes pay thousands upon thousands of pounds over many years, with the full amount paid never recovered by families, despite the deceased having paid in more money than the funeral actually costs.
Now that responsibility for funeral payments has been devolved to the Scottish Parliament, I look forward to a much more well-rounded and compassionate approach to support for bereaved families struggling with these costs. The Scottish National party Scottish Government plan that the funeral expense assistance benefit will replace the current DWP funeral payment by summer 2019, with an additional £3 million to support another 2,000 people each year who would have received no support at all from the DWP under the old scheme. They are also looking at uprating the flat-rate part of that payment to take inflation into account, unlike in the rest of the UK, where, as we heard from the hon. Member for South Shields, the payment has been frozen since 2003 at £700, which is a help, but is woefully unequal to the task of helping families with these costs. The SNP Government will also ensure that guidance is provided on funeral costs, funeral planning and strengthening consumer protection with regards to funeral plans. They will make a real effort to tackle funeral poverty by working with credit unions and delivering a social innovation fund.
Funeral poverty is a cruel and bitter obstacle to grief. Coping with the loss of a loved one is bad enough, but 12%—one in eight—of people report that they got into debt trying to pay for a loved one’s funeral. It is simply not acceptable that, in the increasingly unequal society in which we live, people often cannot afford to live and now, it seems, cannot afford to die, as I have pointed out in every single debate on the subject since 2015.
I am heartened by the Scottish Government’s measures. I urge the Minister to at least carefully study their proposals and try his best to match the commitment to supporting bereaved families at their most vulnerable time.
Widowed Parent’s Allowance
Patricia Gibson Excerpts(5 years, 8 months ago)
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Justin Tomlinson
May I first express my personal condolences to the family at this distressing time? I understand the points that the hon. Lady makes, and they are being considered. In the short term, I urge hon. Members to look at the other potential benefits that could be offered to support families, including universal credit and tax credits. I will return to update the House fully as soon as I can following the ruling by the Court last week.
Patricia Gibson (North Ayrshire and Arran) (SNP)
In a debate on 2 March 2017 on bereavement support benefit, I pressed the then Minister on the issue of cohabiting couples. I pointed out that they are treated as couples for other benefits such as tax credits, but I was told that extending eligibility to cohabitees would “increase spend” and be “complex to administer”. Despite what the Minister has said about legal certainties, we know that many bereaved cohabitees and their children have lost out because of the UK Government’s reluctance to recognise them as families. In the light of the Court judgment and the hardship caused to bereaved cohabitees and their children, does he agree that the Government should apologise for their inaction and that, as soon as can possibly be arranged, this needs to be corrected retrospectively so that justice is obtained for the people affected?
Justin Tomlinson
This issue was considered at great length in debates on the Pensions Act 2014 and the subsequent regulations. It is not straightforward. How do the Government act as judge and jury in situations in which someone could be living with a different partner? At a time of great distress, the emphasis has to be on providing appropriate and quick support particularly targeted at those in the most need. Following the ruling in the Supreme Court, the points raised will be considered and I will come back as quickly as is appropriate to provide an update to the House.
Oral Answers to Questions
Patricia Gibson Excerpts(6 years, 1 month ago)
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Kit Malthouse
My hon. Friend is absolutely right, and is a renowned champion of those in poverty in his constituency. It is interesting to note that nearly three quarters of children in poverty move out of poverty when their parents move into full-time work. We must capture and use that in our constant fight against poverty.
Patricia Gibson (North Ayrshire and Arran) (SNP)
Kit Malthouse
I have seen reports of the new analysis this morning and, obviously, we are more than willing to have a look. However, such reports—there have been several in the past few weeks—tend to accept in the small print that forecasting poverty in the future is a very inexact science and often leads to odd results, not least because they often do not take behavioural change into account. The whole thrust of the Government’s welfare reforms has been not just to ensure that we get assistance and money to people efficaciously, but to effect behavioural change because we know that accessing work is by far and away our most potent tool in the fight against poverty.
Scottish Welfare Powers
Patricia Gibson Excerpts(6 years, 1 month ago)
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Bill Grant
I do not think that I would pass judgment on the private sector system based simply on that one example. You can pick out poor examples from any system. Any identified problem will be rectified. The Government have been rectifying issues over a long period of time.
Patricia Gibson (North Ayrshire and Arran) (SNP)
Are you seriously coming to the Chamber today and telling us that since you have been elected, no constituent has come to you to complain about the way their applications for DWP assessments have been treated? Is that what the hon. Gentleman is telling us? If he is telling us that, it must be the only constituency in Scotland where that is the case.
Bill Grant
I respect the hon. Lady’s intervention, but for clarity, I never indicated or suggested—sorry if you have interpreted it as such—
Mr Sweeney
I agree that the complexity of the social security system should not be underestimated, but none the less we should have committed at the outset to the objectives and the vision that we wanted to see, which we share. Surely they should live up to their rhetoric on this issue.
Patricia Gibson
The hon. Gentleman says that the Labour party has been leading from the front on this issue. In the light of that statement, I ask him whether he regrets, and would like to apologise for, the fact that 184 members of his party abstained on the Welfare Reform and Work Bill in 2015, thereby letting through £12 billion of welfare cuts.
Mr Sweeney
I am afraid that is a total misrepresentation of what Labour was voting for in that case. If anything, the SNP should apologise for abstaining on the Third Reading of the Tory Finance Bill just last month, when we were all in Parliament. I cannot speak for colleagues who were not elected at the time she refers to, but I can accuse the hon. Lady of that act just last month.
On the progress of the Social Security (Scotland) Bill and how complex it has been, even at stage 2 in February, Labour continued to challenge the Scottish Government to deliver a number of further improvements, which have been resisted. For example, a child benefit top-up of £260 per year was blocked by the Tories and the SNP voting together. Changes that would prevent the winter fuel payment as well as disability and industrial injuries benefits from being means-tested were backed unanimously by Labour, the SNP, the Tories, and the Greens—a good concession. Binding targets to boost the take-up of all benefits were also backed, and protection for carers from inflation—the current carefully crafted Scottish Government plans look set to save £5 million—was backed unanimously.
However, a requirement in law to secure the automatic splitting of universal credit so that women are protected from financial abuse was blocked. The competency of that is contained in section 30 of the Scotland Act 2016. The Tories and the SNP blocked that by voting together—just days before, somewhat ironically, the hon. Member for Central Ayrshire (Dr Whitford) introduced a Bill in this place on the same issue. It is an example of how the SNP talks a good game at Westminster, yet acts very conservatively at Holyrood. An attempt to secure a higher legal threshold to prosecute claimants who fail to notify a change of circumstances was also blocked when the Tories forced a vote on it.
There is clearly much more scope to improve the quality of the social security system in Scotland. The only party that has driven real change and a real defence of working people in Scotland who rely on a social security system and a safety net has been the Labour party at every stage. We should not forget that the only force that will ensure that we have real, radical change for disabled people, that we tackle poverty, and that we reinforce the safety net will be a Labour Government at Holyrood in Edinburgh, and at Westminster in London.
Patricia Gibson (North Ayrshire and Arran) (SNP)
I will try to be brief. I am bewildered about what this debate is supposed to achieve. The hon. Member for Ayr, Carrick and Cumnock (Bill Grant) agreed with many of the points we put to him—for example, that social security is a human right. I wonder what the Minister will think of that.
We will take no lessons from the Labour party. It does not matter what the hon. Member for Glasgow North East (Mr Sweeney) says, £12 billion-worth of cuts on welfare went through in 2015 and 184 Labour MPs abstained. That is why we need to have people in here protecting Scotland’s interests.
The hon. Member for Ayr, Carrick and Cumnock talked of the need for mitigation. By definition, if we need to mitigate Tory cuts in Scotland, that suggests that the Tory cuts should not be taking place.
In setting up the new welfare system in Scotland, there has been widespread consultation. For the hon. Gentleman to suggest that it is some dark secret and nobody knows what is happening is clearly nonsense. His colleague, Adam Tomkins MSP, talked about the welfare legislation in Scotland as being landmark legislation and the great consensus around it. It is a pity that the hon. Gentleman cannot agree with his Tory colleagues in the Scottish Parliament. Adam Tomkins MSP congratulated the Scottish Government on bringing the legislation forward in the form that they did. It is very clear that the only people who are standing up for the people who find themselves relying on benefits—
Pensions Auto-enrolment
Patricia Gibson Excerpts(6 years, 2 months ago)
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This information is provided by Parallel Parliament and does not comprise part of the offical record
Patricia Gibson (North Ayrshire and Arran) (SNP)
We can all agree that auto-enrolment has been a positive development in helping to encourage people to save and prepare for their retirement. I have been sitting here and enjoying the unusual consensus. I thank the hon. Member for Chippenham (Michelle Donelan) for securing the debate; I agree with almost every point she made.
A good, clear pension plan is an important tool in tackling existing inequalities that need to be eradicated, with fairness at the heart of our system. If I may threaten the consensus for just a second, in all the talk about pensions and preparing for retirement, I am briefly reminded of the hardships that our WASPI women are going through. They thought they had a little security in retirement, but they found that was not the case. I know that is not the focus of the debate, but it is a reminder of the importance of pensions in people’s lives.
Auto-enrolment is to be welcomed, and everyone supports it, but a number of concerns, which hon. Members have touched on, need to be addressed. As the hon. Lady and others pointed out, progress in ensuring that self-employed people are included in auto-enrolment has been disappointing. The announcement of feasibility testing is positive, but it still risks leaving too many millions of workers behind. That matters because, as we have heard, 4.8 million people in our workforce—about 15%—are self-employed, so the numbers are not insignificant.
As far back as 2004, the Pensions Commission identified the self-employed as a group for which pension provision had always been deficient. The need to include self-employed people in attempts to improve pension provision for that group is hardly breaking news, but it simply has not been addressed. I know the Government have argued that that is a complicated issue—the hon. Member for Chippenham also set that out—but the fact that it is complicated does not mean that it should have been kicked into the long grass for as long as it has. There are too many people losing out on opportunities to build on their financial plans for retirement. The fact that something is difficult is not a reason not to do it.
It cannot be beyond the wit of Government. We have heard others, including the right hon. Member for Preseli Pembrokeshire (Stephen Crabb), tell us that we have a great Pensions Minister. I am sure that it is not beyond the wit of the Minister to try to address the issue of helping self-employed people to navigate their way through that difficulty, as set out by the hon. Member for Chippenham. I agree with her, and others, that it is imperative that those on low pay are covered and included in auto-enrolment, for exactly the same reason. As long as they are not, they are denied the chance to prepare financially for their lives after work.
The 2017 review indicated that bringing the low-paid into auto-enrolment would be of great benefit to those workers, but that will not be implemented until the mid-2020s. Given that we know that the earlier in life someone starts paying into their pension, the better their pension is, we need to make progress on that much more quickly. Those on low pay during their working life must not be denied the opportunity to build up a pension pot for their retirement.
The hon. Lady is absolutely correct that persuading young people to save for their pensions is important. The fact that the inclusion of 18-year-olds in auto-enrolment is not expected to be implemented until the 2020s is also extremely disappointing. With a pension crisis looming for younger generations, those who are now 18 years old will have lost out on precious years of potential pension savings if the issue is kicked further down the road. I agree with the right hon. Member for Preseli Pembrokeshire and the hon. Members for Chippenham, for Horsham (Jeremy Quin) and for East Renfrewshire (Paul Masterton) that that really needs to change.
I would say to the Minister that good progress has been made with pension auto-enrolment and it is right that that should be recognised, as the right hon. Member for Preseli Pembrokeshire and the hon. Member for Horsham pointed out. We have to recognise success when we find it, but there are still whole swathes of the working population who as yet are not eligible for auto-enrolment, and they are at risk of being left without enough years of pension savings if that is not urgently addressed. I know that when the Minister gets to his feet, he will tell us how he intends to do that.
I will end by saying—the Minister will have heard me say this before, if he was listening—that we need a full and independent pension commission, looking holistically at every aspect of pensions, so that we have a system that is as fair as possible for all. We all need to have a system that we can have confidence in and rely on when our working lives are over. We need a pension system that is sustainable and takes into account shifting variables such as life expectancy, which is drastically different depending where in the UK someone lives.
With 1 million pension pots accessed early since reforms enabled that to happen, with the self-employed and young people not included in auto-enrolment until the mid-2020s and with rising life expectancy, the issue of pension provision and pensioner poverty is becoming all the more urgent. That is why I am keen to hear what the Minister has to say on how he will move forward with this.