Draft Child Support (Management of Payments and arrears and fees) (Amendment) Regulations 2023
Paul Maynard Excerpts(4 months, 1 week ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)
I beg to move.
That the Committee has considered the draft Child Support (Management of Payments and Arrears and Fees) (Amendment) Regulations 2023.
It is a pleasure to serve under your chairmanship, Mrs Latham, and I am pleased to introduce this statutory instrument, which, subject to approval, will help more families to access vital support through the Child Maintenance Service. It will also ensure that efforts and resources can be focused on taking action to collect unpaid arrears in those cases that will make the biggest difference to children.
The draft regulations are intended to further improve access to the Child Maintenance Service for all families, and to ensure that it runs effectively to focus on getting more money to children. First, to improve access, the regulations remove the £20 application fee to access the Child Maintenance Service. The fee was introduced in 2014 to encourage parents to come to their own collaborative family-based maintenance arrangements, rather than go down the statutory route by default. Evidence published by the Department for Work and Pensions as part of an evaluation of the fee and its impact shows that the £20 fee is not a significant factor for parents when making decisions about their child maintenance arrangements.
However, the evaluation found that families on lower incomes, whom we know disproportionately experience conflict and therefore are often in need of support, can find the application fee a financial barrier to accessing the service. It is important to highlight that around 54% of all applicants already pay no fee because of existing waivers, such as those for victims of domestic abuse and those aged under 19. Therefore, it is sensible to remove the application fee completely for all, ensuring that those most in need can get support more easily.
The regulations will also ensure that the service can more efficiently focus resources on getting larger, more recoverable unpaid payments flowing to children. To be clear, we continue to come down on parents who refuse to pay child maintenance and fail to take responsibility for their children. We do so using a range of enforcement powers to collect unpaid amounts. However, we are taking a pragmatic approach in these regulations by bringing forward powers to write off minimal amounts of £7 or less in a small number of inactive cases that would have been closed were it not for small outstanding balances.
We are introducing that measure for two reasons. First, keeping such cases open requires considerable resource, and taking action to recover such small amounts often costs more than the value of the debt. The cost of leaving such cases open could increase for decades, with no greater chance of money being paid to receiving parents. We need to ensure that taxpayers’ money, as well as caseworker time and effort, is directed effectively, for example by focusing action against parents who owe significantly larger sums and where the impact on children missing out on money is greater. Secondly, given that we close cases only when we have stopped calculating child maintenance payments, it is likely that such cases will no longer be needed. That could be because the child has become an adult, the parents have reconciled, or the absent parent has sadly passed away. It therefore makes sense to close these cases, not least for the certainty and clarity it provides for families.
Siobhan Baillie (Stroud) (Con)
I have just been before the Backbench Business Committee with the right hon. Member for East Ham (Sir Stephen Timms) to ask for a debate on child maintenance, so if we get our way, the Minister will hopefully be talking about this again. I see that the proposals affect only 2,800 cases, and both measures seem sensible, but every single MP gets many cases about the service, response times, or things being lost. How will the Department and the Government make sure that even this small change does not send the message that they are not interested in such cases or in ensuring that arrears are paid to families?
Paul Maynard
I very much look forward to the next debate that comes my way. I am slightly trepidatious, because this is not my policy area, but it is a good chance for me to learn a bit more and understand it better. My hon. Friend is quite right that we all get many such pieces of constituency casework, which shows the importance of getting this right. I can talk at much greater length about what we are doing, so I look forward to the debate.
The full details of the criteria permitting a debt to be written off are set out in the regulations. They include the maintenance calculations having ceased, and no payments having been made in the previous three months. In addition, the Child Support Act 1991 provides that for write-off powers to be exercised, we must be satisfied that it would be unfair or otherwise inappropriate to enforce liability in respect of the debt.
The changes build on a number of improvements that we have already made, and they are among the first in a wave of measures that we plan to bring forward to ensure that the service is more accessible, simpler and speedier, and ultimately gets more money to more children more quickly.
The measures represent proportionate, common-sense changes that will further improve the Child Maintenance Service. They are good for parents, good for the taxpayer and, most importantly, good for children. I hope that colleagues will join me in supporting them.
Paul Maynard
I thank both the Front-Bench spokesmen for their support, and for their helpful summary of the questions, which gave me that bit longer to make sure that all my notes for answering them were in the right order. First, the hon. Member for Wirral South mentioned application numbers. The main thing that the Government have been doing is trying to use a more digital service called “get help arranging child maintenance”, which has been operational since 2022 and has seen the number of applications increase. That shows that we can we can create a pathway, so that people going through a breakdown in a relationship can seek out the right support.
The hon. Lady mentioned research. It helpfully says in my notes that research has shown that those on the lowest incomes are least likely to have an effective arrangement. It does not give me much more than that, I am afraid, so I will commit to writing to her on that point. I will try not to have to write to her on any other point, but I am giving the best answers I can.
The hon. Lady rightly raised the issue of domestic abuse. After we have removed the fee, we will continue to capture information about parents who need additional support, including as a consequence of domestic abuse, and ensure that they are able to safely use the service, because there are many safety issues around how money is transferred. We will move away from collecting the figures and towards using externally reported quarterly stats, but we will look at how best to capture the information in a usable format in the future.
The hon. Lady may be aware that CMS has a domestic abuse plan, which outlines key steps for caseworkers to follow to ensure that victims of domestic abuse are supported. That includes advice on contacting the police, for example, if the parent is in immediate danger. CMS can also act as an intermediary in direct pay cases, and provide advice on how to set up bank accounts with a centralised sort code to limit the risk of a parent’s location being traced. We also reviewed our domestic abuse training, and commenced using a single named caseworker to ensure that victims of DA are appropriately supported, so I think we are doing an awful lot on abuse in the home.
Alison McGovern
Could I ask the Minister to be clear on the statistics that will be published about victims of domestic abuse? I understand his point about training and the pathway that will be there, but from the point of view of public transparency, it is important that we can see how many users of the service are victims of domestic abuse, and that the data is publicly reported. I say that simply because, as he will understand, abuse has so often been completely hidden. Many people would be quite shocked to find out how many people are victims of financial abuse, so it is important that that is reported publicly, not just understood within the system. Could the Minister confirm that the Government will still report publicly how many users of CMS are victims of domestic abuse?
Paul Maynard
I take the hon. Lady’s point. It says in my brief that CMS will look at how it captures that information. I will ensure that that point is passed on to Viscount Younger in the other place when he is looking at whether the proposals are adequate. No decision has yet been made. Nothing has been ruled out; nothing has been ruled in. I accept her point, and like her, I am a champion of transparency wherever possible, so I will ensure that Viscount Younger writes to the hon. Lady.
On the points that were made about collect and pay and the calculation more generally, we are consulting on how we can improve both those things. I believe that the consultation on collect and pay is yet to start, but we announced in October that we would be consulting on how to collect and transfer maintenance payments. I understand that the consultation on the calculation side of things will also be launched shortly.
Finally, there is a very valid point, which I often hear in my own constituency, about cases involving vast sums that parents are unable to access for one reason or another. Where parents have certain categories of taxable income that are not captured by a standard child maintenance calculation, they can make a request to CMS to have the calculation varied. We have consulted on proposals to include more types of taxable income held by His Majesty’s Revenue and Customs in the standard maintenance calculation. The proposals were accepted, and legislation will be brought forward when parliamentary time allows. Cases involving complex income can be investigated by the financial investigation unit, which is a specialist team. Where there is evidence of fraud, the FIU will seek to prosecute, or forward the case to HMRC for action.
In summary, as everyone has agreed, the regulations mark the beginning of a more comprehensive legislative journey towards improving the Child Maintenance Service and represent a clear road map to action. I am committed to working with Viscount Younger to drive these plans forward in order to deliver a fairer, faster service for more families, especially the poorest. I thank everyone for attending the Committee.
Question put and agreed to.
Cost of Living: Pensioners
Paul Maynard Excerpts(4 months, 1 week ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)
I congratulate the hon. Member for North East Fife (Wendy Chamberlain) on securing the debate. I am always happy to meet her, as she knows. I think I have been given eight minutes to respond. Is that correct, Madam Deputy Speaker? [Interruption.] I have been misinformed. Madam Deputy Speaker, you will get more of me than I anticipated! I will do my best to respond to all the hon. Lady’s points where I can.
As the hon. Lady will of course know, we have both toured the United Kingdom looking into issues relating to poverty and visiting food banks in Hackney and Newcastle. I have toured North East Fife and thoroughly enjoyed myself, and the hon. Lady has come to Blackpool to look at the situation on the ground—an experience that I trust she enjoyed equally. I know how passionate she feels about this matter, and I hope she knows how passionate I feel about it. As I have said, I shall be more than happy to meet her. She put forward so many ideas in her speech that I may not be able to do justice to them all, but I will do my best to touch on some of them in the time that is available.
The Government fully recognise the challenges facing pensioners owing to the higher cost of living, and we are committed to action that helps to alleviate levels of pensioner poverty. We have taken significant steps to ease financial pressures by providing total support of £104 billion over 2022-25 to help households with the high cost of bills. In 2023-24 we will spend more than £152 billion—5.6% of GDP—on benefits for pensioners, including £125.4 billion on the state pension alone. Tackling high inflation remains a core priority for the Government. At its peak inflation was 11.1%, but the latest Office for National Statistics data shows that we have reduced it to 3.9%, which is good news for everyone but particularly for pensioners, on whom, in my view, inflation bears down particularly hard.
We also recognise the exceptional circumstances of the last two years and have committed ourselves to providing timely relief for those who need it most. That has been especially important following the inflationary pressures. We have provided one of the largest support packages in Europe, including two rounds of cost of living payments. More than 8 million UK households receiving means-tested benefits for which they are eligible, including an estimated 1.4 million pensioner households, may receive additional cost of living payments totalling up to £900 in the current financial year, and 8.9 million pensioner households across the UK will have received an additional £300 cost of living payment this winter as a top-up to their winter fuel payment, worth a total of £4.8 billion.
The Government remain committed to ensuring that older people can live with the dignity and respect they deserve. When I was a Member of Parliament in the coalition, we achieved many things, and to put it bluntly, I happen to think that the Conservatives have a good record as well. I will not get into a fight over whose idea was what when, and who first made the comment when, because I do not think that that would do much credit to the joint endeavours on which we are engaged, but we have stuck with the triple lock. The state pension will increase by 8.5% in April 2024, following the 10.1% increase in April 2023, and the standard minimum guarantee in pension credit will also increase by 8.5%. Like the hon. Lady, I often meet Steve Webb and listen carefully to what he says; he is a wise man indeed.
The hon. Lady focused a great deal on pension credit, as do I, for that matter. It provides invaluable financial support for about 1.4 million households claiming about £5.4 billion. The hon. Lady is right: the latest figures suggest that take-up is 63%, although they are based on cohort estimates, so they are not quite as accurate I would like them to be. Unfortunately, it is often hard to identify actual take-up; that, I think, is one of the deficits of our data system. However, take-up of the guarantee credit element, which is perhaps the main safety net, is at 70%.
I believe we can always do more. In benefit circles, we talk about stock and flow. The new pensioners flowing on to the system need an approach that will ensure that they are signposted speedily, and at an early stage, to the existence of pension credit and the question of whether it is right for them, but in recent years we have been trying to focus on the stock, not least through the advertising campaigns to which the hon. Lady referred. I am sad that Harry Redknapp did not get a mention, given the fantastic video that we put out on social media. As the hon. Lady said, we have also been considering more targeted efforts, including writing to housing benefit claimants. There has been an important trial run, but I do not have the results yet. I want them yesterday because I think they are so important, but I also want to ensure that the data is validated properly and actually means something, so that decisions based on it can then be made.
However, the work we have done already has improved uptake. The quarterly caseload statistics show a rise in the number of households in receipt of pension credit, after about 12 years of the caseload being in decline. I cannot say that that is entirely due to our campaign; Martin Lewis can probably take a share of the acclaim following his ITV series this year. I entirely agree that there are much more creative things that we can do, and we can discuss some of those ideas during our meeting when we get around to it.
The hon. Lady made a point about topping up national insurance and the issues around that. We are looking at introducing online services that will allow people to make their own payments for voluntary national insurance contributions directly to HMRC. I heard the point she made around receipting and the proper provisioning of the service, and she was quite right to do that. That will be uppermost in my mind as we go forward.
I could talk for half an hour on the gender pensions gap, although I am not sure that I have that much time. We all know that the pension gap is there, and part of the reason why auto-enrolment was introduced was to try to address that pension gap over time. In 2012, 40% of eligible women were participating in a workplace pension; 10 years on, that has increased to 86%. That shows that auto-enrolment has been a great success, but in my view it is a work in progress. There are still groups in society who are under-saving, even among those participating in auto-enrolment, and women and those with caring responsibilities are at the forefront of my mind. The hon. Lady might have seen a report by Scottish Widows back in November that identified those issues. I have had multiple discussions within my Department on what we are going to do about each particular group, so that is of particular interest to me as well.
My other point relates to pensioner poverty and poverty indicators, and I suspect we could argue about this until the cows come home. The latest statistics show that in 2021-22 there were 200,000 fewer pensioners in absolute poverty after housing costs than there were in 2009-10. Average pensioner incomes are growing in real terms, and in 2021-22 the average net income of all pensioners was £349 per week after housing costs, compared with £335 in 2009-10. As I have outlined, the Government take the cost of living pressures facing pensioners and pensioner poverty extremely seriously.
The amount we are spending is clear, but I recognise that the task will never end. The hon. Lady is quite right about that, and I think the hon. Member for Strangford (Jim Shannon) mentioned it as well. She and I discovered this on our tours around the country. She will have been sick of hearing me talk about trying to identify people upstream, as soon as something occurs, when the state can intervene and help them, rather than waiting for issues to accumulate further down the track, where the cost to the public purse is that much higher. That is very much the spirit in which I have embarked on this particular part of my ministerial journey. Many of the questions the hon. Lady raised are the questions that I have been raising in my introductory meetings, and I am now getting a chance to put some of the ideas into practice. When she and I meet, I will be in listening mode and I look forward to hearing more about some of her ideas.
Question put and agreed to.
Oral Answers to Questions
Paul Maynard Excerpts(5 months, 1 week ago)
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David Simmonds (Ruislip, Northwood and Pinner) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)
More than 8 million pensioner households will receive a £300 payment this winter to top up their winter fuel allowance payment. The 1.4 million pensioners currently in receipt of pension credit may also receive cost of living payments totalling up to £900 in 2023-24.
Damien Moore
In Southport we have a significant number of pensioners who, having lost their partners, now face the added challenge of managing increased living costs alone. Can the Minister kindly elaborate on what specific initiatives or support mechanisms are in place to assist people in those financially difficult circumstances, to ensure that they get the support they deserve?
Paul Maynard
Anyone who suffers a bereavement at any time will potentially be in severe financial difficulties. I direct my hon. Friend to the funeral expenses payment, which is part of the social fund. I would also point to the wider measures that we have taken, such as applying the triple lock—there will be an 8.5% increase in the state pension next year. We will also include cost of living payments in the winter fuel payment, of £500 or £600, depending on the age of the recipient.
David Simmonds
Despite the welcome fall in inflation, my constituent Deborah Garrard speaks for herself and many pensioners who are concerned about a second winter of high fuel prices. Will my hon. Friend outline what further measures the Department is considering to help reduce pensioners’ financial burden?
Paul Maynard
I know that Mrs Garrard will not be the only older resident in the country concerned about energy prices this winter. I just mentioned the increased cost of living payment that we are adding to the winter fuel payment. In addition, we have increased the warm home discount to up to £150, and there is a whole suite of cold weather payments that can be made in the event of seven days of sustained cold weather. We have a wide range of measures to help support people when faced with cold weather and high energy costs.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
Mr Alistair Carmichael (Orkney and Shetland) (LD)
The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)
I am fortunate in having already been able to meet representatives of the Pensions Regulator twice since my appointment to discuss the full gamut of their responsibilities.
Mr Carmichael
Members of the BP pension scheme, a defined-benefit scheme, have seen the value of their pensions fall by 11% in real terms as a consequence of their senior management’s refusal to upgrade them in line with the cost of living, although the pension fund itself has a £5 billion surplus. Does the Minister agree that if the rules allow companies such as BP to deal from the bottom of the deck when it comes to their own pensioners, these are rules that need to be changed?
Paul Maynard
That is certainly something I need to look into. When people raise the issue of specific pension schemes, I am always conscious of just how many thousands of scheme members are potentially watching, so I do not wish to speak off the cuff and raise hopes that I may not be able to fulfil. However, I shall be happy to meet the right hon. Gentleman to discuss the circumstances in greater detail and see what can be done.
Mr Speaker
I call Rob Roberts. He is otherwise engaged. I call Virginia Crosbie.
Sarah Dyke (Somerton and Frome) (LD)
The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)
The advice to anyone seeking to top up their pension or buy extra national insurance credits would be to ring the Future Pension Centre in advance of making any payments, to determine whether they would actually enhance their pension by making them. It is always best for people to check before they make those payments, to make sure that they will improve their pension.
John Penrose (Weston-super-Mare) (Con)
Paul Maynard
As pensions Minister, my main focus is on making sure that we have a high-quality, sustainable pension system that, year on year, keeps the value of the overall state pension as high as possible and that meets our manifesto commitment to the triple lock. That is the best way of focusing on the value of the state pension.
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
Twenty months ago, the Equality and Human Rights Commission issued a section 23 agreement request to the Department, following concerns regarding breaches and potential discrimination against disabled people. Why has the Department still not reached an agreement?
David Simmonds (Ruislip, Northwood and Pinner) (Con)
My constituents Susan and David Cfas have made representations to me about the situation facing them and many other pensioners who are having to access benefits and other Government support because they are stuck in an annuity trap, whereby at retirement they posted an annuity, which has remained fixed. Will my right hon. Friend meet me to discuss the plight of pensioners in that situation to see whether more can be done to encourage them to access different approaches to increase their income?
Paul Maynard
That is certainly one reason why we are trying to get people to engage in a more considered way with what they do at the point of the decumulation of their pension funds, but I am more than happy to meet my hon. Friend to discuss his specific concerns about annuities in due course.
Andrew Western (Stretford and Urmston) (Lab)
The Trussell Trust has recently reported that in the past year there has been an 80% increase in the number of children in Stretford and Urmston being supported with food parcels. Can the Minister tell me why it believes that is the case?
Draft Occupational Pension Schemes (Amendment) (Equal Treatment) (Northern Ireland) Regulations 2023
Draft Pensions (Pension Protection Fund Compensation) (Northern Ireland) Regulations 2023
Draft Pensions Act 2004 (Amendment) (Pension Protection Fund Compensation) Regulations 2023
Draft Pensions Act 2004 and the Equality Act 2010 (Amendment) (Equal Treatment by Occupational Pension Schemes) Regulations 2023
Paul Maynard Excerpts(6 months, 1 week ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)
I beg to move,
That the Committee has considered the draft Occupational Pension Schemes (Amendment) (Equal Treatment) (Northern Ireland) Regulations 2023.
The Chair
With this it will be convenient to discuss the draft Pensions (Pension Protection Fund Compensation) (Northern Ireland) Regulations 2023, the draft Pensions Act 2004 (Amendment) (Pension Protection Fund Compensation) Regulations 2023 and the draft Pensions Act 2004 and the Equality Act 2010 (Amendment) (Equal Treatment by Occupational Pension Schemes) Regulations 2023.
Paul Maynard
It is a pleasure to serve under your chairmanship, Sir George.
The regulations were laid in the House on 18 September 2023 and are compatible with the European convention on human rights. We have four instruments: two relating to the Allonby and Walker judgments, and a similar set of two relating to the Hampshire judgment. I must make it clear that Allonby is being restated in relation solely to the impact of guaranteed minimum pensions legislation from 17 May 1990 onwards.
The well-known Retained EU Law (Revocation and Reform) Act 2023 allows the UK to reassert the sovereignty of Parliament. Where required, the UK Government are now able more easily to amend, revoke or replace retained EU law. After 31 December, certain retained EU law addressed in the three court cases I mentioned will cease applying. Two of those cases, Walker and Allonby, are about equality law for pension schemes, and the other, Hampshire, is about pension protection for those who, unfortunately, find themselves in the Pension Protection Fund, which is a compensation scheme.
I have decided to restate the law addressed in those cases because two of them are about the effects of EU equality law for pensions schemes, and the other is about protecting people’s old-age benefits when they find themselves in the PPF. It is important that any ambiguity is removed for occupational pension schemes and that we ensure there is equality in the outcomes for pension benefits.
Let me go through the judgments as speedily as I can, without going into great detail. The first judgment, Allonby, is about the right to pension benefits paid on an equal basis between men and women, where discrimination has arisen in an occupational pension scheme because of legislation on guaranteed minimum pensions. The second judgment, Walker, is about the pension rights on which survivor benefits are based, where a member is in a same-sex marriage or civil partnership.
The Allonby amendments are relatively straightforward: they are about the right to equal treatment between men and women in the absence of a direct real-life comparator to show discrimination, where the discrimination has arisen in an occupational pension scheme because of legislation on guaranteed minimum pensions. How we get to that point requires some more explanation.
First, guaranteed minimum pensions are unequal for men and women. That can result in a different amounts of occupational pension benefits being paid because GMPs are paid to women at the age of 60 and to men at the age of 65. Secondly, the 1990 Barber judgment found that pension benefits must be paid to men and women on an equal basis for pensionable service from May 1990 onwards. That means that pension schemes are required to equalise pension benefits to correct the unequal effect caused by members having a GMP.
Thirdly, the European Court of Justice judgment in the case of Allonby in 2004 means that it is not necessary for someone who brings an equal pay claim to be able to point to a real-life comparator in relation to such discrimination. For example, a man who was employed as a dustman—a role predominantly performed in the past by men—would not now need to point to a real-life female comparator who was being treated differently to demonstrate that his pension should be equalised to take account of the unequal effect of the GMP rules. A notional comparator could instead be used to show whether he would have received a higher pension if he had been a woman, because of the GMP rules.
Until the end of this year, the Allonby judgment overrides the need for an opposite-sex comparator in our equality legislation, but we of course want and need schemes to equalise for the differences between men and women resulting from GMP legislation. That is why we are amending equality legislation to ensure that the requirement to equalise occupational pension benefits as a result of GMP does not fall away where there is no real-life opposite-sex comparator.
Continuing on the theme of equality, the Walker case was about equal treatment on the grounds of sexual orientation in occupational pension schemes. The Supreme Court ruled that the Equality Act could not permit Mr Walker’s scheme to restrict the survivor benefits payable to his husband to only those based on pension rights earned since December 2005—the date civil partnerships were introduced.
The restriction in the Equality Act had previously meant that a person in a same-sex marriage or civil partnership who had worked their entire working life and built up an occupational pension could leave their surviving spouse or civil partner survivor only benefits relating to pensionable service from December 2005—potentially only a few years of their working life.
For example, someone in a civil partnership who retired in 2015, having built 45 years of occupational pension rights, could find that their surviving civil partner was entitled to only 10 years of survivor benefit rights. Mr Walker challenged that unequal treatment and won.
The changes we are making will mean that legislation will not allow schemes to restrict the pension rights that are used to provide survivor benefits for survivors in a same-sex legal relationship to only those earned after December 2005. Survivor benefits are important to so many people and help provide reassurance that a member’s survivor will be provided for, should the worst happen. That is why it is important that we reflect the Walker judgment in the Equality Act.
Moving on, the Hampshire judgment provides protection in the event of employer insolvency. The regulations retain the effects of the judgment in domestic legislation and remove redundant references to the Pension Protection Fund compensation cap from it.
Briefly, by way of context, Mr Hampshire took legal action in the domestic and European courts against the Pension Protection Fund, because under the PPF’s rules, his benefits were substantially reduced. He was under his scheme’s normal pension age when his employer became insolvent. The European Court ruled that former employees must receive at least 50% of the value of their pension rights in the event of their employer’s insolvency.
There was further litigation in the domestic courts—the Hughes judgment—which concluded with the UK’s Court of Appeal upholding the High Court’s ruling that the cap on Pension Protection Fund compensation constituted unlawful age discrimination. The cap previously applied to individuals below their scheme’s normal pension age when their employer became insolvent.
The Pension Protection Fund is now identifying its members and members of the financial assistance scheme affected by the Hampshire judgment, increasing their payments and paying arrears, where appropriate, to comply with the terms of the judgment. It is also uncapping the compensation payments of its affected members and backdating arrears.
In practice, most PPF members already receive more than the 50% minimum established by the Hampshire judgment and few were affected by the compensation cap. As a matter of fairness, however, the Government have decided to retain the effects of the Hampshire judgment beyond the sunset date. That means that all members of eligible pension schemes affected by the judgment—not just those with an entitlement before the sunset date—can be reassured that they will receive at least 50% of the value of their original pension benefits in the event of their employer’s insolvency. To tidy up the legislation, the regulations also remove redundant references to the Pension Protection Fund compensation cap, which no longer exists. That will improve the legislation and reflect the High Court’s ruling.
The regulations will give reassurance to the pensions industry and to members of defined benefit occupational pension schemes from 31 December. In practice, nothing will change in relation to the Allonby, Walker and Hampshire judgments. It is important that pension scheme members are treated fairly and equitably, regardless of sexual orientation, sex or age. I commend the regulations to the Committee.
Paul Maynard
May I also welcome the hon. Member for Sheffield, Brightside and Hillsborough? I am sure I will enjoy working with her. She made three points, and I am hoping that a note about the third might be coming my way—time will tell. She is right that the changes are quite distinct in and of themselves. They apply already, so the sector does not have to do anything new to reflect them. It has already been reflecting them since the judgments, quite some time ago.
On the timing, one of my first observations in this role has been the absolute avalanche of evidence—calls for evidence, consultations and consultation responses. The pensions industry is swamped, and finding people to respond to these things must be a growth industry. The hon. Lady is right that it has taken some time for the judgments to come to the House. Many of the judgments, of course, took place way back last decade, but the court system itself takes quite some time. When their final application is eventually decided, we have to start consulting on how to apply them within the private pensions industry that we have to rely on to deliver them; it is not a matter of pressing a button at the Department for Work and Pensions.
Finally, the hon. Lady asked whether there were any more retained EU laws to deal with. My understanding is that we have now completed our trawl, and I do not expect any more to come my way. Should the situation turn out to be any different, I will write to her. But I think I am right—I would have been tapped on the shoulder if I had been wrong.
I thank the hon. Lady for her comments. We have had a useful and helpful initial interchange. As I said in my opening speech, these are important equality protections. We do not want them to disappear because of sunsetting. They are important and came about for good reason in the first place. I hope all Members will be happy that we are to retain them.
Question put and agreed to.
Draft Pensions (Pension Protection Fund Compensation) (Northern Ireland) Regulations 2023
Resolved,
That the Committee has considered the draft Pensions (Pension Protection Fund Compensation) (Northern Ireland) Regulations 2023.
Draft Pensions Act 2004 (Amendment) (Pension Protection Fund Compensation) Regulations 2023
Resolved,
That the Committee has considered the draft Pensions Act 2004 (Amendment) (Pension Protection Fund Compensation) Regulations 2023.
Draft Pensions Act 2004 and the Equality Act 2010 (Amendment) (Equal Treatment by Occupational Pension Schemes) Regulations 2023
Resolved,
That the Committee has considered the draft Pensions Act 2004 and the Equality Act 2010 (Amendment) (Equal Treatment by Occupational Pension Schemes) Regulations 2023.—(Paul Maynard.)
Office for Nuclear Regulation Annual Report and Accounts 2022-23
Paul Maynard Excerpts(6 months, 1 week ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)
Later today I will lay before this House the “Office for Nuclear Regulation Annual Report and Accounts 2022-2023”. This document 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 document on the grounds of national security.
[HCWS38]
Oral Answers to Questions
Paul Maynard Excerpts(6 months, 2 weeks ago)
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Mel Stride
Very briefly, I have set out our employment record, which we are proud of. In his last Budget, the Chancellor set aside £2 billion to fund measures to tackle long-term sickness and disability. That includes a consultation on occupational health, the roll-out of universal support and Work Well, about which the hon. Lady will hear more presently.
Paul Maynard (Blackpool North and Cleveleys) (Con)
Mel Stride
I thank my hon. Friend for his typically astute question and for his advice in this area over a number of months. We have gone out to consultation on the work capability assessment. We have not come to our conclusions on how to move forward, but right at the centre of that will be a strong belief that if people can work, with our support and encouragement, that is the best of all outcomes.
Work Capability Assessment Consultation
Paul Maynard Excerpts(8 months, 3 weeks ago)
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Mel Stride
That sentiment of taking on the employers is probably not conducive to having an economy that is generating the jobs that have occurred under this Government. As to the descriptors—indeed, the activities—that the hon. Gentleman refers to, there is a plethora of information out there about exactly what those mean. If he has trouble finding that, I would be very happy to have my Department point him in the right direction.
Paul Maynard (Blackpool North and Cleveleys) (Con)
The Secretary of State rightly points to the tripling of the number of people receiving the highest award after a work capability assessment. Does he share my concern that a false assumption is growing not only that those people cannot work, but that they should not work, which therefore writes them off? Do we not have a serious moral obligation to remove all sorts of barriers that come between those individuals and the workplace? His approach is exactly right in trying to target those obstacles that most get in the way of people enjoying the agency and autonomy that activity in the workplace brings.
Mel Stride
I thank my hon. Friend for the advice and support he has given me when we have discussed these issues over the last few months. I know he is extremely knowledgeable in this area. He is absolutely right that we do not want people to be trapped, to use that expression, on benefits. We want to help people to move into the labour market and work. That is better for the economy and the labour market, but most importantly it is better for the physical and mental health of the individual concerned, as shown by all the evidence.
Oral Answers to Questions
Paul Maynard Excerpts(8 months, 3 weeks ago)
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Paul Maynard (Blackpool North and Cleveleys) (Con)
In parts of my constituency, the healthy life expectancy is now just 53 to 54—a true regional inequality if ever there was one. That means that people—even those in the Minister’s age group—are dropping out of work far too early, which is not good for them or the economy. What steps is the Department taking as a consequence of the health and disability White Paper to address this serious inequality?
Mel Stride
I have already mentioned the measures that we brought forward at the last Budget, including universal support and WorkWell. The Government are of course constantly looking at how we can go further in that respect. On the over-50s specifically, the midlife MOT that we are running, the returnerships and the changes to the pension tax arrangements are all helping to bear down on economic inactivity in that group.
Social Housing: Furniture Affordability
Paul Maynard Excerpts(1 year ago)
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Paul Maynard (Blackpool North and Cleveleys) (Con)
I beg to move,
That this House has considered the matter of furniture affordability and social housing.
It is a pleasure to serve under your chairmanship, Ms Elliott. I am surprised to be starting the debate early—I was taken unawares, but strike while the iron is hot, I always say. I am delighted to be here, partly because this has been a very tricky debate to secure. Every time I go to the Table Office, they rewrite the topic. To get pulled out of the hat, I re-submit it with that same title and it gets rejected, so I have to rewrite the title again. That causes confusion.
Then we had no idea which Department should reply to the debate. Was it the Department for Work and Pensions? Was it the Department for Levelling Up, Housing and Communities? Even the Minister did not know, but I am delighted that she has made it here today. Maybe she will enjoy the experience—who knows?
On hearing mention of the term “furniture poverty”, many people say, “What do you mean?” Some Members did so when I walked in the door. Many take it for granted that they have a chair to sit on, a fridge or freezer in which to keep food and a cooker with which to cook it. Far too many people in this country lack such basics. Some 26% of those in social housing lack one or more of the major pieces of furniture in the average household, compared with just 3% of homeowners.
Take something as basic as flooring. In social housing, more than 700,000 people—9% of those in social housing —do not have any flooring. The situation is worsening because of the cost of living crisis. Furniture inflation is running at 35%, which is even higher than food inflation. Appliance inflation is running at 21%. The answer is not to just go down to IKEA to get something cheap, because inflation at IKEA is at 80%.
The problem is not just the cost of furniture. There are some underlying problems. The first is the lack of a savings culture in this country. The average savings of people in my constituency are just £95, and most people in my constituency could not cope with an unexpected bill of even £500. That puts them in a very vulnerable position in the first place. We could have a whole debate just on the lack of a savings culture.
The second reason is the disappearance of cheap and readily available credit for the most deprived in my constituency. The usual financial service providers have withdrawn from that market entirely, leaving people with nowhere to go for credit other than to those who charge very high costs. That causes further financial problems for them.
The final reason is the lack of microinsurance products. The insurance sector has pulled out of allowing people to pay a very small amount to insure a fridge, cooker or any other piece of furniture. People are therefore flooded with large unexpected bills to replace significant items. When faced with that financial impact, they are often tipped over to the more dangerous forms of lending. I can spare the Minister a debate on illegal moneylending, but only because I recently had an Adjournment debate on the subject. Those unexpected bills push many in my constituency into risky doorstep lending. Often they borrow from illegal moneylenders, but sometimes they borrow from friends or family members. That is a type of illegal moneylending that is quite disguised, and it is a real problem.
Furniture poverty is not just about lacking items, but about the associated costs. The charity Turn2us calculates that not having a cooker can add more than £2,000 to the annual expenses that an average family of four face, because it means that they must rely on takeaways, which are becoming increasingly expensive. People who do not have a fridge cannot buy in bulk, store food for the future or plan meals. That leads to further costs, as they must rely on local convenience stores—again, we could have a separate debate on the difference between food prices in convenience stores and in supermarkets. Lacking a washing machine adds about £1,000 to the average bills of a family of four, because they have to go to the launderette to wash their clothes, which they often require for work. Launderettes are a rapidly disappearing phenomenon anyway, and significant energy costs mean that the prices they charge are going up.
There is a vicious, vicious cycle here. Let us take two examples. People may think that a dining table is almost luxury item and not necessary for a household at all—that it is something someone might go to John Lewis for, perhaps. I would argue that if we are talking about social mobility and life chances in my constituency, nothing is more important than the dining table. In smaller houses, that is where children do homework. If they have nowhere to do their homework, their educational performance will decline. There are 2.4 million people in this country who do not have a dining table, so when I hear about social mobility and everyone fretting over how to get more working-class people into Oxford and Cambridge, that is not “life chances” to my constituents. To my constituents, “life chances” means having a dining table as a space to do homework—something as simple as that.
I mentioned flooring earlier. I would love to have an hour-and-a-half debate on flooring. I put the Minister on warning: that is on the way.
Paul Maynard
Flooring, yes—I am about to talk about it. You will learn something. End Furniture Poverty, the charity that has helped me on this topic, is doing a separate piece of work on the issue of flooring, which I will come on to.
Let me share a quote from one individual in social housing. He says:
“It’s cement downstairs and upstairs it’s wood with a lot of nails sticking out. It is a hazard…I have a young child.”
The lack of flooring is perhaps one of the great unknown scandals of 21st-century Britain. When someone enters into a new social housing tenancy and moves into a new flat or property, in all likelihood the social housing provider has ripped out the flooring in advance, often when it is in perfectly good condition. They do so because they believe that that is what they should do with void tenancies, and it means the person moving in is faced with a great bill to replace the flooring. Often it is simply beyond their means and capacity to afford it.
Paul Maynard
I was waiting for the moment. I was looking eagerly at the hon. Gentleman, and he has finally taken the bait.
Jim Shannon
I commend the hon. Gentleman for bringing this issue forward. Covid had a medical effect on everybody, but it also brought about many broken relationships. What I have found in my constituency over the last three years is that families are parting because of domestic abuse, and the ladies are moving with their children into houses that are not furnished. In my area, I am fortunate that we have churches and charity groups that can help to furnish houses, but there are so many domestic abuse cases that not everybody can be helped. I support what the hon. Gentleman is putting forward. At this stage, maybe the Government, and particularly the Minister, should be looking to see what can be done to help people who have had to move out of their property because of domestic abuse and who find themselves with nothing but the clothes on their back, and certainly not the furniture that they need for their house.
Paul Maynard
I agree entirely. The hon. Gentleman makes a very important point, and he anticipates my 13th point, which I will come to, about why that does indeed matter.
The Minister might have thought that I was acting as a Labour Member of Parliament for the past few minutes, as I have been bemoaning the state of affairs and demanding that more be done. Of course the Government are doing something, but the challenge is that local government is not quite doing its part as well. The Minister will be more than aware of the local welfare assistance scheme. It is worth £167 million, which has been passported over to local councils to disburse as they see fit. Unfortunately, not every council uses that money to its fullest extent.
It is a wonderful pot of money, because it allows so many options: for example, that is where those fleeing domestic violence ought to go for help and support. The whole point of the local welfare assistance scheme is to meet that sort of need, but unfortunately, as End Furniture Poverty has discovered, 35 councils have now scrapped their local welfare assistance scheme, despite getting funding from the Department for Work and Pensions. Many more are spending less than 10% of what they have been allocated, which means that the burden is falling on a wider range of groups. Many charities, benevolent organisations and even churches are filling the gap that councils ought to be filling, including, sadly, Blackpool Council, which I gently chastise. I do not normally do that, but in this case I do, because it has shrunk its LWAS budget. The local welfare assistance scheme is there, but it is not being used by councils.
I urge the Minister not to overlook the existence of the local welfare assistance scheme, because since I started banging on about local welfare assistance about three years ago, the pandemic has come along, as has the household support fund, which dwarfs the LWAS in budget. The Minister now has a choice to make, and I am keen to hear her views. The household support fund is being put to so many different uses by so many different councils that it is marginalising the local welfare assistance scheme, but that means that there is now a focus on targeted pots of money for grants given to particular groups in society, which is how the household support fund has been devised, defined and decided on. That means less focus on the situation-specific support that is needed, such as for those fleeing domestic violence —as the hon. Member for Strangford (Jim Shannon) said—who get squeezed out of the household support fund. If local welfare assistance schemes are not maintained, people cannot access the emergency support that they need to replace their furniture and white goods.
I urge the Minister to review the Welfare Reform Act 2012. Every time we have these debates, Labour Members say they want that Act to be reviewed. Even I am calling for it to be reviewed, not because I want to reverse much of what was in it, but because I want to look at the evolution of Government decision making, which I feel has been a bit patchwork. We make one change and then another, and then another, without considering the golden thread that ought to run through them, which is whether we are preventing people from falling into destitution. That is why the household support fund and local welfare assistance schemes are so important. I hope that the Minister will agree to meet me and End Furniture Poverty to discuss its ideas about how both schemes can be strengthened.
Of course, this should not just be down to the Department for Work and Pensions. One of my frustrations is that so many Departments are doing so many different things. It is often the Treasury. One of my great frustrations has been the slow gestation, and almost the non-birth, of the no-interest loan scheme, which would have enabled people to borrow money at no interest to purchase the white goods that they lack. I think the Minister needs to look at what other Departments are doing in support of that.
The private sector is doing stuff, too. Iceland—the supermarket, not the country—has a superb arrangement with a social housing provider called Clarion Housing Group to fund freezers for people who do not have one so that they can manage their food requirements more prudently and get more for their money. There are many, many ideas out there.
Another aspect of furniture poverty, particularly in social housing, is partly flooring and also the wider issue of furnished tenancies. Hon. Members might think that furnished tenancies are quite common. People often look for furnished flats and apartments in the private rented sector—Members of Parliament who are down in London for long periods of time certainly do that—but in social housing, they are vanishingly rare. A great deal of effort is being put in to encourage social housing providers to consider at least making 10% of their tenancies available on a furnished basis. I am pleased to say that Blackpool Coastal Housing does just that. It has recently approved a business case to do so, and it makes a lot of effort to improve furniture reuse, but that is by no means common across the social housing sector as a whole.
This is not about putting greater burdens on social housing landlords. A social housing provider in Yorkshire and Humberside called the Thirteen Group has gone down the path of improving its offer of furnished tenancies. It has seen its arrears fall from £7 million to £4.8 million, and the cost of a void tenancy has plummeted by £500 as those moving in can sustain their tenancies far better, because they are not lacking the essential ingredients of a household. Even the number of unstable tenancies that the social housing provider is carrying at any one time has reduced by more than half. It makes the point that it is not spending more money doing that; it is actually spending its money much better.
The Minister might wonder what in heaven’s name this has to do with the Department for Work and Pensions. This is about social housing, so it is for the Department for Levelling Up, Housing and Communities. Actually, the funding for a lot of that capital investment comes through the services charges that are permitted through the universal credit system. I urge her—once again, we can discuss this if and when she meets End Furniture Poverty—to ensure that the mechanisms within universal credit that allow these services charges to be made are slightly easier to understand for the tenant and the social housing provider to boost the demand for at least 10% of tenancies to be furnished.
It is clear that we do not speak about furniture poverty enough in this country. The Government are trying to do a lot to put in place a safety net beneath the safety net, but the problem is perhaps the fondness of Government Members not to ringfence things in local government, and to allow councils to spend as they see fit. That means that when we pull a lever here in Westminster, we find that it is not attached to anything out in the community.
Furniture poverty needs to be part of the national conversation. It does not get debated here enough and I am not sure that it is properly understood by many Members of Parliament, yet if they went out to the more deprived parts of our constituencies, they would see it in house after house. I hope that the Minister will agree to have the meeting so that we can all learn a bit more, not least about flooring, about which I could have a separate debate. I also hope that the Department for Work and Pensions, in particular, can look again at how local welfare assistance schemes and the household support fund interact, and how universal credit can support the introduction of more furnished tenancies in the social housing sector.
Cost of Living: Financial Support for Disabled People
Paul Maynard Excerpts(1 year ago)
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Paul Maynard (Blackpool North and Cleveleys) (Con)
It is a pleasure to serve under your chairmanship, Sir Robert, to follow the hon. Member for Battersea (Marsha De Cordova) and, indeed, to have a second bite of the cherry in speaking about this topic, given that last Tuesday I could not make it to the debate secured by the hon. Member for Motherwell and Wishaw (Marion Fellows). It is always good to have a second coming, I have to say—although in my case perhaps not. We have had an eloquent debate so far.
I am sure that we will hear many numbers in the course of the debate. Two stick out to me. One comes from Kidney Care UK, which cites the average annual extra cost to an individual facing dialysis as £1,918. The second big figure comes from the charity Contact a Family, which works with disabled children. It says that the average cost of the energy needs for the disabled children that the charity works with is £1,596. That covers such matters as pumps, monitors, hoists and electric wheelchairs, all of which are related to an individual’s health condition. That is one type of extra cost that the disabled face in regard to energy needs.
The second type of cost does not really relate to health needs but is a consequence of a person’s disability. I chair the all-party parliamentary group for assistive technology. Many people with profound and severe disabilities, particularly cerebral palsy, rely on computer or some sort of IT aids to engage with the wider world. They are vital to their quality of life. Such aids can be voice recognition software, eyeball-controlled software and so on. All that relies on electricity, which of course costs money as well. Those needs are a consequence of their disability but are not health needs per se.
The third sort of extra cost is that those with any sort of disability need to maintain their home at a higher temperature than might otherwise be the case merely to keep themselves warm. On that point, I give a small plug to my Westminster Hall debate at 4 pm on Wednesday, which is about furniture poverty and affordability. One area that I will focus on is the fact that all too often new tenants move into social housing and find that floor coverings have been removed, and they cannot afford to replace them. They end up with a much less well-insulated property, which for many of them affects their health. Those are the three areas that we need to consider.
Having read the Hansard report of last week’s debate online in preparation for this debate, and listening to questions, I think a consensus is emerging. The phrase “social tariff” crops up time and again, and there is much discussion about the role of personal independence payments and a recognition of the £150 that the Government have made available. There is also a lot of talk about the lump sum of £650, which one of the petitions refers to. There are positives and negatives with all of those, in my view.
I am always interested in how the personal independence payment works. It clearly has an important role to play, and is designed to meet the additional costs that people face due to their disability in their day-to-day lives. There has been a long-term debate over the extent to which it fulfils that goal. The purple pound—the premium that so many people face—is not always reflected in PIP. Whether a non-means tested benefit, which PIP is, is the right avenue to support the energy needs of the most vulnerable in society is a debate worth having. We should not automatically assume that PIP is the answer to every problem. If that is the argument, Members have to justify to me why millionaires should benefit equally to some of my poorest constituents, and why those constituents should not get more intense and focused support.
The second issue is around the social tariff. Social tariffs sound all well and good; everyone thinks they are a wonderful idea. A social tariff has to be paid for, and that subsidy is often taken from other bill payers’ accounts, where it often ends up on a standing charge. What we risk doing by our continual focus on solving every problem with a social tariff is that it then gets put on a standing charge, and there is an ever decreasing circle where more people will see their standing charges go up and then have cause to revert to a social tariff themselves because they cannot afford their bills, thereby increasing the standing charges. In reality, that would not occur, but it is a logical inference. Once again, we cannot keep solving every problem in our energy system and our cost of living crisis by placing them on a standing charge—other ways have to be found.
I accept that the intention behind the £650 payment is a good one. My point is that it is an arbitrary figure. It certainly does not reflect the overall costs experienced by many of the people I just mentioned, which go far above £650. While good, I do not think it is necessary the answer either.
The hon. Member for Battersea briefly made mention of the Retail Energy Code Company, and its report. I am going to give it a bit more of a plug, because I think it is much more exciting than the hon. Member suggested.
Paul Maynard
The hon. Member mentioned the Retail Energy Code Company only briefly, and I wanted to talk a little more about it because the detail in it is actually quite interesting. I am not mocking the hon. Member at all, I just have the time to cover it in more detail, whereas she had more to cover. I urge her not to take offence unnecessarily.
The Retail Energy Code Company advises energy companies on the code of conduct they must adopt towards their customers. Given some of my casework, I am not sure how much the energy companies are listening to it, but that is its role within the energy sector. Andrew Mower, who has been working with it on a set of proposals on how to deal with energy costs for disabled people, has done a superb job in exploring this area and finding some of the flaws in the proposals that have been made in recent months.
In particular, it is worth looking at the NHS schemes that exist at the moment for those on oxygen concentrators and dialysis machines. It is a perfectly good model; I am glad to see the NHS recognising that it has to help people meet energy costs, but it is not universal. It goes back to my old friend the postcode lottery. In addition, the subsidy does not go up when energy prices go up, so people are always playing catch-up. People are paid in arrears, so they have to stump up the cash to pay their bills in the hope that they will get the money back at some future date. That money may not actually reflect the bill they have to pay.
It is interesting how the NHS model, which we think may be the answer to many things, actually causes as many problems as it solves. Similarly, with social tariffs, Mr Mower points out the immense difficulty they have found in the broadband sector when trying to come up with a social tariff that actually works and does not disrupt the market in perverse ways with unintended consequences that could see social tariffs costing more than the one that is available on the market to families now. Social tariffs by themselves are quite difficult to get right and need to be extremely flexible. I am not convinced that Ofgem spending hours each week reinventing what this week’s social tariff should look like every time the energy cap changes is actually the answer either.
Hannah Bardell (Livingston) (SNP)
The hon. Gentleman is very informed and detailed on this topic so I defer to his superior knowledge, but does he not agree that the Retail Energy Code Company, Ofgem and all those involved in the market are clearly failing the most vulnerable in our society? I have vulnerable and disabled constituents who are turning off their energy just so they can survive, yet the disaster of the structure and the standing charges—which the hon. Gentleman mentioned —means they are no better off, but they are freezing cold.
Paul Maynard
I share the hon. Lady’s view about the reality that her constituents, and indeed mine, are facing. I share some of her criticisms of the energy companies themselves. The Retail Energy Code Company is trying to provide an answer, which I hope the energy companies will listen to and I hope might just persuade her that it is worth a second look, but I do not know. Time will tell, perhaps.
When coming up with proposals for the disability sector, many charities emphasise the broadness of eligibility and auto-enrolment. That is entirely logical and sensible for them to do. They have learned from the reality of the priority services register. In my constituency, I find that the people who really ought to be on that register are the least likely to be on it, so charities are right to be concerned about whether some sort of voluntary enrolment would actually get to where we want it to go. At the same time, they are missing out the potential for a more tailored scheme, which goes back to my earlier point. Everybody’s energy costs are going to be different, and one-off payments do not necessarily meet that challenge.
Liz Twist (Blaydon) (Lab)
The hon. Gentleman is making a very thoughtful speech about a complex issue. Does he accept that having some money, while imperfect, has to be preferable to being left without that amount of money?
Paul Maynard
Something is better than nothing. However, part of the art of speech making is building an argument, as I hope the hon. Lady understands. I have not yet culminated my argument in what I think we should do. By all means, she can agree or disagree with my critique of what is being proposed, but I am about to come on to what I think should be done, which I hope might just persuade her yet again.
Mr Mower looked at what is being done in the Australian states. They have gone into great detail on this topic, looking at all the different forms of medical equipment that people are using and their energy intensity. Each piece of equipment has a different energy consumption rate. It cannot just be measured by minutes or hours; some of them are more energy intensive than others. Australian states have done calculations enabling them to oblige energy firms to discount the energy at the point of consumption. There is then no need to request a rebate from an energy company, or some supplementary top-up, because it occurs at the point of consumption of that energy. That helps to solve the problem of how we support those with energy-intensive equipment needs. However, I agree it does not meet the needs of those who have to heat their properties generally for their own health benefits.
The hon. Member for Battersea briefly mentioned the issue of the warm home prescription, which the Energy Systems Catapult has been introducing. It has had a limited roll-out in Gloucestershire, and I think it is now operating in four areas as a pilot. It has great potential, but where I issue caution is that we need to understand, if we do not already, whether it is actually saving the NHS money. The idea is that a social prescriber looks at a person’s energy consumption, the insulation in their home and their energy needs, and works out whether a form of prescription to help with energy prices is a way of forestalling more expensive treatment for more severe health conditions at some future date. That is quite hard to capture in a short period of time because we have not seen the long-term consequences yet, but that measure seems positive to me. It would deal with the issue of people needing to warm their homes over a longer period of time, so it is a twin-track approach.
I have tried to put Mr Mower’s report into my own words and not read it out verbatim, because that would be a boring way to make a speech. In his conclusion, he said that the electricity costs of these consumers—in other words, those who rely upon equipment—would best be met through a scheme that can tailor support to the needs of each eligible consumer, rather than a policy targeted at a wider range of vulnerable consumers, so that they can have full confidence that the costs of the relevant equipment are being met. To me, that is the key word in this debate: confidence. The hon. Member for Battersea mentioned it, as did other Members in interventions. Individuals with severe health conditions who do not continue to heat their properties and run their equipment are running the risk of disadvantageous health outcomes because they do not have the confidence that they will be able to afford their bills.
I urge the Minister, and the Minister for Energy Consumers and Affordability, who was present briefly, to really engage with the Retail Energy Code Company and look at the matter in great detail to bring together the NHS and the Social Prescribing Network—I know that social prescribing is the answer to everything in life these days, but in this case it might just be—and try to work out with Ofgem whether the twin-track approach could solve the problem that we are seeking to solve.