Buckland Review of Autism Employment
Rosie Winterton Excerpts(2 days, 12 hours ago)
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Sir Stephen Timms
That sounds like a wonderful model. The more of that kind of initiative around the country, the better.
The report makes the point that a line manager in a mainstream business may well not know that somebody they are managing is autistic. Whether the employer can agree reasonable adjustments for the employee, as is their right under the Equality Act, will depend on them self-disclosing their diagnosis to their line manager. As the review notes, whatever the level of understanding among company directors or senior staff, if the line manager is unable or unwilling to provide support, the employee will struggle to stay in their job.
The review is right to point out that at the moment there is no easily accessible guidance for employers and line managers on how to support autistic staff. Evidence to our inquiry so far suggests that, as the hon. Member for Worcester rightly said, employers want to do the right thing but often simply do not know how. When they are pointed in the right direction and try it, it turns out to be a positive experience. What can the Government do to give employers confidence in this area?
The review calls on the Department to
“Continue to develop Disability Confident, increasing the rigour of developmental work needed to achieve the higher Disability Confident levels”.
I think that is a very kind way of expressing the point. The noble Lord Shinkwin, who sits on the Government Benches in the other place and chaired the disability commission for the Centre for Social Justice, spoke for many of our witnesses when he said that Disability Confident
“is not making a measurable impact”
at the moment. Employers can, as things stand, achieve the highest level of Disability Confident accreditation without employing a single disabled person.
In response to our predecessor Select Committee six years ago, the Department said that it was developing proposals for an evaluation of Disability Confident. That commitment, first expressed six years ago, was announced again in response to our report almost three years ago in November 2021. However, I have still seen no sign of anything happening. Perhaps the Minister can update us. Is that evaluation of Disability Confident now complete, and when can we expect Disability Confident finally to be reformed?
The review is absolutely right to highlight the importance of Access to Work and to call for improvements there. It makes the point—I think the right hon. and learned Member for South Swindon referred to this in his speech—that almost two thirds of disabled people stated that it took over three months for their application to be processed, and 20% said that it took over six months. He is absolutely right that that is far too slow. I agree that, as the review suggests, if the adjustment passport produces positive results, it should be rolled out nationally as soon as possible. However, in response to our Committee’s report three years ago in November 2021, we were promised that the adjustment passport would be piloted from November 2021 and, if successful, would be expanded to support all Access to Work customers. As far as I can tell, we seem to be no further forward in 2024 than we were in November 2021. When are these long-promised improvements actually going to materialise?
One other policy lever the Government could pull is mandatory disability workforce reporting, which was recommended unanimously, on a cross-party basis, in our 2021 report. There is a voluntary framework through which employers can choose to report, but in late 2021 the Government launched a consultation on whether to require large employers to report the number of disabled people they were employing. That work was then paused, but I understand that it has now been resumed, and that the Government plan to publish their findings and next steps in the course of this year. I wonder whether the Minister can update us on when we can expect to see that work. Does she agree that requiring employers to report on the number of disabled people they employ and, within that, perhaps the number of autistic people, could be effective in encouraging the employment of people with autism and other health impairments?
I very much welcome the report, which has highlighted important issues, and the opportunity to debate it today. I also welcome the positive approach that the right hon. and learned Gentleman took, when introducing the report earlier, in seeing the scale of opportunity if we get this right. However, laudable aspirations in this area are just not enough if delivery is delayed for years. We need an ambitious target to increase the rate of employment among people with autism and other disabled people. We need worked-up plans and timescales to deliver them. I very much hope that—perhaps as a result of the work of the task group that he mentioned—we will finally see some of that when the Government respond formally to this very welcome report.
Marion Fellows (Motherwell and Wishaw) (SNP)
Thank you, Madam Deputy Speaker. Running through my mind are the words, “Follow that!” I thank the right hon. and learned Member for South Swindon (Sir Robert Buckland) for producing this outstanding report. His family’s lived experience has absolutely made for a much better report, and I thank him for all the work that he has done on it. To follow the right hon. Member for East Ham (Sir Stephen Timms) is always a privilege and a pleasure—he has taken away some of my best lines, but I will carry on regardless.
It is a real pleasure to speak in the debate, which I signed up for immediately, having spoken many times in this place on the subject of autism. I think it would be remiss of me not to mention Dame Cheryl Gillan at the start of my remarks. One of the first debates that I spoke in was on the closure of the autism One Stop Shop in Motherwell back in 2015, and Dame Cheryl was so kind and helpful to me when I spoke to that important topic. I should point out that I am very close to someone with three autistic sons. My own youngest son has never been diagnosed, but I do not think there is much doubt that he is somewhere on the spectrum, and I think he would admit that himself. I also thank Ambitious about Autism and the National Autistic Society for their briefings, which are always helpful.
The current situation regarding employment for those with autism is simply not good enough across the UK. The UK Government have consistently banged on about reducing economic inactivity and encouraging people into work, but their rhetoric is still not matched with proper support, especially for the neurodiverse, about whom we are talking today.
As we have heard, issues with access to work and the provision of workplace adjustments mean that many autistic people are slipping through the gaps. This is certainly the case for those with autism: as we have also heard, only three in 10 working-age autistic people in the UK are in employment. That statistic is five in 10 for all disabled people, and eight in 10 for non-disabled people. Ambitious about Autism’s employment survey found that 71% of those unemployed would like to be in work, but less than a third were confident that they would find work within the next year. That signifies a huge gap in the support currently provided.
I have seen at first hand the transformative power of employment when autistic and disabled people are properly supported into work. I had the privilege of visiting University Hospital Wishaw to meet some of the participants in the supported internship scheme run by DFN Project SEARCH, and met some of the students on that scheme. Some of them have now found employment. Some of them have now married. The transformation in their lives and those of their families cannot be over- estimated—I literally had to be dragged off the scene, because that was one of the most uplifting visits I have undertaken as an MP.
Employment brings fulfilment, independence and purpose, and as I have said, it can positively transform the life of the employee if they are well supported. However, even when employed, autistic people face challenges and discrimination. The Buckland report finds that autistic workers face the largest pay gap of all disability groups, earning on average a third less than their non-neurodiverse counterparts. Further, the report notes that autistic graduates are twice as likely as non-disabled graduates to be unemployed after 15 months. Only 36% find work in that period, and autistic graduates are more likely to be overqualified for the job they have. They are the most likely people to be on zero-hour contracts and the least likely to be in a permanent role. All of those things require looking at properly, because the statistics are appalling.
Morally, we should be ensuring that autistic workers are supported when trying to find employment, but it is also incumbent upon Government, employers and other stakeholders to ensure that those with autism are adequately supported when they are in work. The SNP welcomes the publication of the Buckland review of autism and employment, and urges the Government to implement its recommendations to ensure that autistic people have the opportunities they deserve. I further welcome the report’s engagement with autistic organisations, as lived experience is vital when shaping policy. That is something the UK Government do not always have a good track record on.
A lack of access to good-quality careers advice, inflexible hiring practices and non-inclusive workplace cultures are just some of the barriers facing autistic people. Once employment has been achieved, autistic people can struggle when employers do not or cannot put in place proper adjustments to support them. Autistic people process information differently and experience a built environment in a totally different manner, which can impinge on their ability to carry out their work—too much bright light, noise, or social interaction can be overwhelming. Additionally, as has been said, autistic people might need more time to process interview questions. It is imperative that employers are aware of such differences and take steps to accommodate autistic workers—or any disabled workers, for that matter. A person close to me has an autistic son who wears a badge at work to indicate his mood to his co-workers. It is a simple thing: if he is feeling overwhelmed and does not want people to talk to him or to be interrupted, he turns the badge to indicate that.
From my own experience in further education, I know that my students benefited immensely when we had autistic students in class. At first they thought it was strange—they were a bit wary—but over the year they developed an understanding of autism and a real respect for the autistic students who sat next to them. The same happens in workplaces: if we can get people into the right place and the right job, everyone benefits. Not accommodating autistic workers wastes so much talent and skill. It makes no sense for businesses either—we have already heard about the special skills that autistic people can bring to the workplace. When businesses properly accommodate neurodiverse employees, the results can be amazing. I have visited the Barclays bank campus in Glasgow, designed by a woman architect who has autistic sons. The difference in that building is awesome: it is built with neurodiverse people in mind, with big open-plan offices with chill pods and a real understanding of what needs to happen. As a result, Barclays has great employees, and people are getting good work and proper jobs.
It is imperative that the UK Government act urgently to improve support for all disabled people, including those with autism, and tackle barriers to employment. We are really worried about the Prime Minister’s recent announcement on fit note reform: pushing people into work without considering what they are suffering and what they need is appalling. As you know, Madam Deputy Speaker, I get very passionate about this topic, so I will try to rush through.
It is important that Access to Work is reformed, as the Buckland report calls for, and reforms to sick pay also need to be introduced for when people need time off. In Scotland, the SNP Government try our best. We are trying to be a fair work nation and are investing money in autism, as well as in simple things such as working within education to get initial teacher education courses that will teach trainee teachers about autism, because as we know, education is the gateway to employment. I will stop there, Madam Deputy Speaker. Again, I congratulate the right hon. and learned Member for South Swindon, and I want the Minister to take on board all the report’s recommendations and make life much easier for those with autism in the workplace.
Mims Davies
There have been some changes, and I have mentioned some of the updates. There is more to come, which I think the right hon. Gentleman will be interested in and will welcome, if he can just bear with me. If I am not constantly in the Chamber being examined, I can get on with the bits that I want to bring forward to the House, if that makes sense to those watching. We are seeing some great progress and some best practice. Things always work best when there is real change in getting autistic people into employment. I agree with the hon. Member for Wallasey. I agree with the whole reason for the report, and I thank James and the charity and all those who brought the report together. We need to deliver for autistic people. This is just the start, and may we long continue to deliver on that ambition.
Food Poverty Strategy
Rosie Winterton Excerpts(5 days, 12 hours ago)
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Jo Churchill
I thank the hon. Gentleman for giving me the opportunity to put to bed completely the idea that there has been any change in our policy. We have always signposted that support. The only thing the DWP has done is brought in a new slip to replace the one used previously. There is no change to the existing policy, but the new slip allows us to improve our existing practices and to comply with our departmental responsibilities under GDPR. Our jobcentres continue to provide customers with guidance to find that additional support, including signposting to emergency food support where appropriate. We stand ready to help people when they are most in need.
The hon. Gentleman mentioned the two-child policy. The latest statistic that we have for households in receipt of universal credit is that the majority of families—some 78%—have fewer than three children. Surely it is right that all families, whether in receipt of universal credit or not, should face the same financial choices when deciding whether to grow their family.
While our actions have shown that we remain committed to a strong welfare safety net—particularly during challenging economic times—we know that the best way we can help is through support to move into work. That approach is based on clear evidence on the role of full-time work in substantially reducing poverty. The latest statistics show that working-age adults in workless households were about seven times more likely to be in absolute poverty after housing costs. Children living in workless households were more than six times more likely to be in absolute poverty after housing costs than those in families where adults work. There are now over 1 million fewer workless households in the UK than in 2010—that is 680,000 fewer children growing up in a home where no one works. That is a cause for some gratitude.
There are more than 900,000 vacancies across the UK, and through our core job centre offer we are firmly supporting people to get into work. We support them with travel costs through the flexible support fund, with face-to-face time with work coaches, and help with interviews. The voluntary in-work progression offer is in all jobcentres across Britain, providing an estimated 1.6 million low-paid workers on universal credit with access to personalised work coaches.
We have also reduced the taper rate from 63p to 55p in the pound. We provide childcare costs, capped at £1,000 for a single child and more than £1,700 a month for larger families. We can even help with the advance.
To ensure that work pays, we have put the national living wage for people aged over 21 up by over 9.8% to £11.44 an hour, as the hon. Member mentioned. That makes sure that people are rewarded for the work they do, and it means an extra £1,800 for someone working full time. We are also providing a tax cut for 27 million people by further reducing the main rate of class 1 national insurance contributions.
Our focus continues to be on providing opportunities for people to be supported and to succeed in work, based on our firm belief that this is a sustainable way of tackling all forms of poverty. At the same time, we understand the challenges that people face, and we will continue to work across Government and party to ensure food security and that the broader welfare system will support those who need it.
Madam Deputy Speaker (Dame Rosie Winterton)
Order. I wish to inform the House that the message to the Commons from the Lords is that the Lords do not insist on their amendment to the Safety of Rwanda (Asylum and Immigration) Bill to which the Commons disagreed.
Question put and agreed to.
Budget Resolutions
Rosie Winterton Excerpts(1 month, 3 weeks ago)
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Madam Deputy Speaker (Dame Rosie Winterton)
I call the shadow Chancellor of the Exchequer.
Several hon. Members rose—
Madam Deputy Speaker (Dame Rosie Winterton)
Order. Before I call the Secretary of State, I remind Members that if they intervene on another Member, it is important to wait until the end of their speech before leaving the Chamber. It is discourteous to leave before the speech has finished. That is just a reminder. I am sure that everyone will follow that rule. I call the Secretary of State.
Mel Stride
You are thinking of the national minimum wage. The national living wage was a Conservative decision —[Interruption.] You did, but it is a pleasure to correct you on this occasion—[Interruption.]
Madam Deputy Speaker (Dame Rosie Winterton)
Order. This is the problem with conversations across the Dispatch Box. It is very difficult for the Hansard writers to follow if we veer off into private conversations. It should all come through the Chair.
Mel Stride
I am sorry Madam Deputy Speaker, and I am sorry for Hansard, but it was quite enjoyable. This debate is about making work pay, and the right hon. Member for Leeds West had precious little to say about that. I wonder why that might be. Might it be because unemployment has always gone up under Labour Governments? That is a simple fact for her to think about. It rose by 1 million under the last Labour Government. Youth unemployment rose by 45% under the last Labour Government, and the number of households in which no one had ever worked doubled during the last Labour Government. I find it particularly striking that under Labour 1.4 million people spent almost a decade on out-of-work benefits. Labour should be ashamed of that record of its time in office.
Mel Stride
I am being asked to conclude, so I think I need to do that. [Interruption.] I have been pretty generous in giving way to just about everybody who has sought to catch my eye.
This is a Budget that rewards work and will grow the economy. It comes on the back of a once-in-a-century challenge that this Government have met. We have turned the corner, and this Budget takes us further still. It rewards work with lower taxes, it delivers growth, it makes work pay, and it ensures a brighter future for us all.
Pensions (Special Rules for End of Life) Bill
Rosie Winterton ExcerptsFriday 2nd February 2024
(2 months, 3 weeks ago)
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The Minister for Employment (Jo Churchill)
It gives me great pleasure to confirm that the Government give their full support to this private Member’s Bill. I thank my hon. Friend the Member for Tewkesbury (Mr Robertson) for bringing forward what he said was a small and limited piece of legislation, but we have heard over the past hour and a bit how important these small changes will be to those affected. I thank my hon. Friend the Member for North East Bedfordshire (Richard Fuller), my right hon. Friends the Members for East Yorkshire (Sir Greg Knight) and for Ludlow (Philip Dunne), and my hon. Friends the Members for Stoke-on-Trent Central (Jo Gideon), for Shipley (Philip Davies) and for Aylesbury (Rob Butler) for their contributions.
My hon. Friend the Member for Shipley explained why the alignment is ultimately a good idea. As we have heard, a life-limiting illness can cause unimaginable suffering for the patient and their loved ones—and that is just at diagnosis, yet alone across the trajectory of the disease. Many people have said that they feel as though they have been hit by an emotional tsunami, and we should do anything we can to help and support those nearing the end of life. My hon. Friend the Member for Stoke-on-Trent Central poignantly outlined some of the challenges that people can face at this stage in their life.
Many charities have been mentioned, but I pay particular tribute to Marie Curie, which often provides nurses who sit with people as they near the end of life. It is an incredible service for our constituents, and ensures that people do not die alone. Its work is incredibly important—its motor neurone disease campaign has been mentioned—but we must also thank people in the hospice sector and more broadly across the NHS, particularly those who work in end-of-life and palliative care.
We have heard much about the Social Security (Special Rules for End of Life) Act 2022, which changed the special rules process to allow simple and fast access to financial support through the benefit system. The changes made in the Act covered the disability living allowance, the personal independence payment and the attendance allowance, and ensured that people at this most difficult of times could receive their support more quickly and easily. The special rules were then extended to universal credit and employment and support allowance through secondary legislation that came into force on 4 April 2022. Under those rules, claims are fast-tracked and a medical assessment is not required. No waiting period is applied, and in the majority of cases the highest level of benefit is awarded. Since 1990, eligibility under the special rules had been limited to those who had been diagnosed with a condition that meant that they were unlikely to live for more than six months. The changes that the Government made in 2022 meant that people receiving certain social security benefits who were thought to be in the final year of their life were shown additional compassion and were able to receive that vital support six months earlier.
When the 2022 regulations came into force, they were welcomed by key end-of-life charities such as the Motor Neurone Disease Association, whose chief executive said at the time:
“I welcome the announcement that changes to the Special Rules will come into force next month. This change will enable more people living with complex and unpredictable terminal illness like motor neurone disease to access the support they need swiftly and sensitively. This is an important first step and we hope that this positive change can be enacted for other applicable benefits as soon as possible.”
Marie Curie also welcomed the changes, saying that they would
“make it easier for terminally ill people to access support quickly”,
and that
“the scrapping of the six-month rule for fast track access to benefits is a significant step forward.”
Macmillan Cancer Support said:
“Patients deserve better co-ordination of care into the last year(s) of life and this change gives us a brilliant opportunity to help them benefit from end of life financial support while having treatment, so they can make the most of the last year(s) of life.”
This Bill takes a further step in supporting those with a terminal illness by extending similar support through compensation payments made by the Pension Protection Fund and payments under the financial assistance scheme. As my hon. Friend the Member for Tewkesbury explained, the Pension Protection Fund pays compensation to members of eligible defined benefit pension schemes if the sponsoring employer became insolvent on or after 6 April 2005 and the scheme has insufficient assets to meet its pension liabilities. Members can claim their compensation payments before their scheme’s normal pension age, generally from the age of 55. The financial assistance scheme makes payments to members of qualifying schemes that are unable to meet their pension liabilities in full.
Currently, members of the PPF who are not yet entitled to receive compensation may make an application to their scheme for a terminal illness payment if they are expected to live for six months or less. Terminal illness is currently defined in legislation as
“if... the person’s death in consequence of that disease can reasonably be expected within 6 months.”
The Bill amends that definition to ensure that members with a life expectancy of up to 12 months can now receive the payments. It will restore the original policy intention of alignment between the social security special rules and the Pension Protection Fund. The same definition applies to the financial assistance scheme, and the Bill therefore amends that definition as well. The financial assistance scheme differs from the PPF in that a terminal illness diagnosis allows payments from the financial assistance scheme to be put in place immediately, rather than a specific lump sum being provided.
My right hon. Friend the Member for East Yorkshire and my hon. Friend the Member for North East Bedfordshire asked what consultation we had carried out. As I think my hon. Friend the Member for Shipley mentioned, we have consulted general practitioners, consultants, specialist nurses and other medical professionals.
Some may argue that the Government should take a more open-ended approach and not put any time limit on the payments. That argument, as we have heard, may be particularly pertinent for those who have conditions such as motor neurone disease, chronic obstructive pulmonary disease, Parkinson’s disease and a plethora of other conditions that can make it exceedingly difficult for clinicians and doctors to accurately predict how much time a patient has until the end of their life.
Unfortunately, there is not a clearcut, correct answer on how terminal illnesses should be defined, so as my hon. Friend the Member for Tewkesbury said, that should be left to the professionals. In recognition of that, the 2022 Act was preceded by an evaluation in which the majority of clinicians who responded said that a 12-month definition was preferable, as it would bring the special rules for benefits into line with NHS practice and NHS initiatives, such as the gold standards framework. The Department agreed, and the 2022 legislation aligned the definition of terminal illness with that used in the NHS, providing consistency for clinicians and tying the special rules into the NHS long-term plan to provide proactive, personalised and well co-ordinated care for all those in their final year of life.
This Bill builds on the previous legislation by aligning the definition used for the Pension Protection Fund and financial assistance scheme payments with that used more widely in the Department for Work and Pensions and the NHS. The Government believe that the 12-month timeframe is appropriate for defining the period for serious ill health payments in tax law. For an individual to meet the definition of a person in serious ill health, evidence is required from a registered medical practitioner that the individual is expected to live for less than one year.
The Pension Protection Fund may be a compensation scheme, rather than a pension scheme, but in many ways it is treated as a pension scheme for taxation purposes. That means that the Pension Protection Fund terminal illness payment falls under the category of a serious ill health lump sum. That allows it to be paid without triggering unauthorised payment tax charges on either the individual or the Pension Protection Fund. Extending the definition of terminal illness to longer than a year would open up members to significant tax charges on their terminal illness payments, which is not what the Government want at all.
My hon. Friend the Member for North East Bedfordshire asked about the impact on the levy. We believe that the cost to the Pension Protection Fund will be marginal. Most members will simply get their payments earlier. He also asked about pension funds having a 12-month provision. The benefits provided will depend on scheme rules. We do not know how many schemes have such a provision, but we believe that many schemes already provide early access to lump sums for terminally ill members, or those with a life expectancy of 12 months or less, because that is allowed under tax law.
My hon. Friend the Member for Shipley and my right hon. Friend the Member for East Yorkshire asked about commencement. As with any Bill that passes through both Houses, it will come into force on a day appointed by the Secretary of State. It is the intention for that to be as soon as practicable after Royal Assent, to ensure that all measures relating to the Pension Protection Fund and financial assistance scheme come in at the same time.
I heard that my right hon. Friend the Member for Ludlow had written to the Secretary of State, and I will make sure that an answer comes to him in a timely way. He asked who makes the decisions; the answer is clinicians, medical assessors and specialist nurses. In response to my right hon. Friend the Member for East Yorkshire, let me say that one can obtain a second opinion, and that goes for all the illnesses that I mentioned.
I thank all hon. and right hon. Members for their contributions, and for the sensitive way in which they have approached this matter. I appreciate the “time-bound” argument that my hon. Friend the Member for Shipley put forward, but these matters are always a challenge for clinicians. I agree with him and my hon. Friend the Member for Stoke-on-Trent Central that a better conversation about end of life, and how we treat issues as we move forward into that stage of our life, would be a very good thing for us all. We should be a lot more discussive about it.
I thank my hon. Friend the Member for Tewkesbury for bringing forward the Bill and all right hon. and hon. Members for their contributions. These changes will make a significant, positive impact for people nearing the end of their lives by ensuring that most pension fund members will be able to receive a payment at an earlier stage. That will give them the financial support they need at a most difficult time for them and their families, as well as help them plan more effectively to get the most out of the finances they are due. These changes send a message about end of life: that the conversation must be alive and vibrant for us all, so that we do the best we can. I am pleased to support the Bill and wish it a speedy passage through both Houses.
Madam Deputy Speaker (Dame Rosie Winterton)
I call Mr Laurence Robertson to wind up, with the leave of the House.
Pensions
Rosie Winterton Excerpts(2 months, 3 weeks ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)
I beg to move,
That the draft Guaranteed Minimum Pensions Increase Order 2024, which was laid before this House on 15 January, be approved.
I feel almost like a Netflix series, in that people can now binge-watch two episodes of me in a row. I hope none the less that this matter is worth equal consideration.
The Guaranteed Minimum Pensions Increase Order sets out the yearly amount by which a guaranteed minimum pension pot of an individual’s contracted-out occupational pension earned between April 1988 and April 1997 must be increased. Occupational pension schemes are required to increase GMPs that were earned during that period and are in payment by 3% for the 2024-25 financial year.
As this is quite a technical matter, I will provide a little background information on GMPs, and what they are and are not. GMPs were created to help make occupational pension provision more affordable and more secure. As many Members present will be aware, the state pension used to be made up of two parts: the flat-rate basic state pension and the earnings-related additional state pension. The flat-rate state pension was funded through the national insurance scheme, and paid the full rate to those with sufficient qualifying years of NI contributions, or pro rata to those with a partial record. The second part of the state pension, the earnings-related additional state pension, was linked to a person’s earnings. The national insurance contributions paid by both the employee and their employer gave the employee the right to an additional earnings-related state pension. That was designed to ensure that as many workers as possible were able to save for their retirement through a work-based pension.
However, many employers already offered their workers a company pension through their own scheme, so many people were already building up an occupational pension, and an earnings-related additional state pension in effect replicated that provision. That was considered onerous and potentially unaffordable for both employers and employees. It was seen as double provision and over-complicated. In order to simplify the situation, the Government of the day introduced in 1978 the system of contracting out, and the provision of guaranteed minimum pensions, which are the subject of this order.
Between April 1978 and April 1997, employers sponsoring a salary-related occupational pensions scheme could “contract out” their occupational pension schemes from the earnings-related additional state pension. People who were members of a contracted-out scheme were taken out of the additional state pension, so as a result both the employer and the pension scheme member paid lower-rate national insurance contributions. In return, salary-related contracted-out occupational pension schemes were required to take on the responsibility for paying their members a guaranteed minimum pension as a part of their occupational pension from the scheme.
The guaranteed minimum pension that the member built up in the scheme would be broadly equivalent in value to the additional state pension that they would have received had they stayed in the state system. The majority of employees would also have built up an occupational pension over and above the guaranteed minimum pension amount, but the scheme pension could never be lower than that guaranteed minimum. The crux of the idea was that, rather than paying additional national insurance to the state in order to build up an additional state pension, people could build up a similar amount of occupational pension through a workplace pension scheme. The system ran in that way from 1978 to 1997. Having set out the detail, which I accept is complicated, let me turn to the order before us.
The order provides a measure of inflation protection for the guaranteed minimum pension part of an occasional pension built up between April 1988 and April 1997. Legislation stipulates that, when there has been an increase in the annual level of prices as measured the previous September, the order must increase the guaranteed minimum pension part of the occupational pension by that percentage or 3%, whichever is lower. As the September 2023 figure was 6.7%, the increase for the financial year 2024-25 will be 3%. The cap of 3% aims to achieve a balance between providing some measure of protection against inflation for members and, crucially, not increasing schemes’ costs beyond what they can generally afford, in order to avoid undermining the viability of some schemes and seeing them go into the Pension Protection Fund.
An obvious question comes to mind: what happens when inflation is above 3%, as it is currently? Most members who reached the state pension age before 2016 will still get the same inflation protection for their post-1988 guaranteed minimum pensions as if they had never been contracted out. That is achieved through an uplift that they receive in their additional state pension. For those reaching state pension age after April 2016, who are therefore receiving the new state pension, there are transitional arrangements in place, which are particularly beneficial for people who are contracted out. These members will therefore still get the 3% increase from their occupational pension schemes.
I recognise that this is perhaps a very complex and technical area, but I am satisfied that the order ensures that the burden placed upon schemes is an appropriate one, but also one that ensures that recipients get an increase in their pensions that gives them some measure of protection against inflation. I therefore commend it to the House.
Alison McGovern
I am not entirely sure whether that intervention was for me, so I will let the Minister respond when he winds up. However, on companies keeping their promises, that seems like one of the basics to me.
As I said before, we support these measures and will not oppose the Government’s proposals, but I would very much welcome the Minister’s comments on the questions I have raised.
Social Security
Rosie Winterton Excerpts(2 months, 3 weeks ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)
I beg to move,
That the draft Social Security Benefits Up-rating Order 2024, which was laid before this House on 15 January, be approved.
The draft order will increase relevant state pension rates by 8.5%, in line with the growth in average earnings in the year to July 2023. It will also increase most other benefit rates by 6.7%, in line with the rise in the consumer prices index in the year to September 2023. Subject to parliamentary approval, the changes will take effect from 8 April and will apply for the tax year 2024-25. [Interruption.]
Madam Deputy Speaker (Dame Rosie Winterton)
Order. May I ask those not participating in the debate to leave quietly? It is difficult to hear the Minister.
Madam Deputy Speaker
Order. Minister, I have just been asked to clarify that you are moving motion 3 on social security.
Paul Maynard
For the information of the House, this order covers state pensions. Motion 4 covers the guaranteed minimum pension, which is a sub-element of the pensions issue. As I will explain, the different elements—
David Linden (Glasgow East) (SNP)
On a point of order, Madam Deputy Speaker. Can I clarify whether we are taking motion 3 on social security and motion 4 in one debate, or will we scrutinise the orders separately? It would be helpful for the House to have clarity on exactly what is happening.
Madam Deputy Speaker
We are debating motion 3 on social security. We will then debate motion 4 on pensions.
Paul Maynard
Indeed, a few days ago I was asking those questions about whether to take the motions separately or together. They are being taken separately.
Autumn Statement Resolutions
Rosie Winterton Excerpts(5 months ago)
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Madam Deputy Speaker (Dame Rosie Winterton)
Order. As I still have to get 16 speakers in, I shall have to reduce the speaking time limit to six minutes.
Richard Foord (Tiverton and Honiton) (LD)
Last week, as the Chancellor of the Exchequer set out his autumn statement, there was much anticipation about what kind of rabbit would be pulled out of the hat. Despite the Chancellor’s upbeat delivery, the performance was less Harry Potter magic and more Paul Daniels-style trickery.
Almost all of the Government’s financial headroom—the amount they have left over after their commitments—was blown on a small tweak to national insurance contributions. The Chancellor lauded the changes, suggesting that they would save people hundreds of pounds every year, but he failed to mention that even with the changes, the average person will pay more in tax overall. I can see that the cost of covid must be paid for, but I object to the spinning of a larger tax burden as a smaller one. That is partly because the Chancellor continued a freeze on tax thresholds—the level at which our constituents start to pay tax. Higher inflation means that many more will be dragged into paying more tax, whether at the higher or the basic rate. That is giving with one hand while taking substantially more with the other. The Resolution Foundation has identified that under the plans, taxes will rise by the equivalent of £4,300 per household in the decade from 2019. Even by the end of this Parliament, it expects that households will be £1,900 worse off than at the beginning of it.
In Government, the Liberal Democrats delivered tax cuts for millions by doubling the amount someone could earn before they started paying tax. By contrast, this Conservative Government are one of the highest taxing Governments in history, allowing increasing numbers of low and middle-income earners to be dragged into paying ever increasing amounts of tax. It is simply not sustainable. We need more efficient spending of public money, with targeted investment, to ease the squeeze and save us money down the line. For example, of the £784 billion of taxpayer money that the UK Government spent last year, £39.3 billion was given to households as an energy subsidy. It would not have been necessary to give away so much of that taxpayer money had Lord Cameron, as Prime Minister, not cut the “green crap”.
There were a couple of welcome measures in the statement. I was pleased to see the extension of the business rate discount, including for retail, hospitality and leisure businesses, of which we have many excellent ones in my part of east Devon. The decision to keep the triple lock on pensions was also welcome, and ensures that pensions rise to match earnings, giving pensioners peace of mind and financial security. I called for that in Treasury questions less than a fortnight ago, so it is pleasing to see it rise in line with earnings at 8.5%. But the rest of the autumn statement was notable for what the Chancellor did not say. There was no additional money for the NHS or social care, despite the fact that the winter cold is already starting to set in. I am genuinely puzzled by that. It is a disastrous oversight that risks inflicting real challenges on our dedicated health professionals and our communities in the year ahead.
The Secretary of State for Work and Pensions is lucky: like me, he represents a constituency in Devon. That means he knows how much people in Devon value our community hospitals. In my own corner of Devon, Seaton Community Hospital is at risk of having a whole ward of the facility stripped away to be sold off or even demolished. That is due to the continued squeeze on local healthcare budgets, with Devon NHS alone facing an almost £40 million shortfall. The Chancellor’s statement did nothing to address that grim situation.
There was also a distinct lack of funding to help clean up our rivers and beaches. Because of the wayward activities of water companies and the fact that the Government have just left this issue to Ofwat, we are seeing huge levels of raw sewage put into our once pristine local rivers and beaches. That is harming biodiversity and putting the health of people and animals at risk. The scandal also pervades England’s chalk streams. For example, those that empty into the River Itchen near Winchester contain unique biodiversity and ecosystems. Our sites of special scientific interest also see sewage dumping and ecological vandalism.
How would I sum up the autumn statement? Overall, it sums up the current Conservative Government: out of touch. Floundering for a buoyancy vest, their party ship continues to list and sink. Our communities deserve better. Devon deserves better.
Madam Deputy Speaker (Dame Rosie Winterton)
I call the shadow Chief Secretary to the Treasury.
Work Capability Assessment Consultation
Rosie Winterton Excerpts(7 months, 3 weeks ago)
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The Secretary of State for Work and Pensions (Mel Stride)
With your permission, Madam Deputy Speaker, I will make a statement on our proposed changes to the work capability assessment, which aim to ensure that no one who can work is permanently written out of this country’s strong labour market story. It is a story that has seen nearly 4 million more people in work compared with 2010, 2 million more disabled people in work than in 2013 and record numbers of people on payrolls. But although the overall number of people who are economically inactive has fallen strongly from its pandemic peak, there remain over 2.5 million people who are inactive because of long-term sickness and disability. Yet we know that one in five people on incapacity benefits who are currently not expected to prepare for work want to work in the future if the right job and support were available, and the proportion of people going through a work capability assessment who are being given the highest level of award and deemed to have no work-related requirements at all has risen from 21% in 2011 to 65% last year.
This situation is excluding significant numbers of people from receiving employment support to help them to move closer to work opportunities. It is holding back the labour market and the economy, but perhaps most important of all, it is holding back human potential. I want to ensure that everybody who can do so benefits from all the opportunities that work brings—not just the financial security, but all the physical and mental health benefits too. No one who can work should be left behind. That is why, earlier this year, we announced an extra £2 billion-worth of investment to help disabled people and those with health conditions to move into work. That includes bringing in our new universal support employment programme, which will assist disabled people and those with health conditions to connect with vacancies and provide support and training to help them to start and stay in a role.
Through our individual placement and support in primary care programme, we are investing £58 million to help more than 25,000 people to start and stay in work. We are modernising mental health services in England, providing wellness and clinical apps, piloting cutting-edge digital therapies and digitising the NHS talking therapies programme. We have also published fundamental reforms to the health and disability benefits system through our health and disability White Paper. That will see the end of the work capability assessment and a new personalised tailored approach to employment support to help everyone to reach their full potential.
The scale of our reforms means that it will take time to implement them, but there are changes we can make more quickly that will also make a difference. So before the White Paper comes in, I want to make sure that the work capability assessment—the way we assess how someone’s health limits their ability to work, and therefore the support they need—is delivering the right outcomes and supporting those most in need. Today my Department is launching a consultation on measures to ensure that those who can work are given the right support and opportunities to move off benefits and towards the job market. As I have said, we know that many people who are on out-of-work benefits due to a health condition want to work and, assisted by modern working practices, could do so while managing their condition effectively.
We have seen a huge shift in the world of work over the last few years, a huge change that has accelerated since the pandemic. This has opened up more opportunities for disabled people and those with health conditions to start, stay and succeed in work. The rise in flexible working and homeworking has brought new opportunities for disabled people to manage their conditions in a more familiar and accessible environment. More widely, there have been improvements in the approach many employers take to workplace accessibility and reasonable adjustments for staff. And a better understanding of mental health conditions and neurodiversity has helped employers to identify opportunities to adapt job roles and the way disabled people and people with health conditions work.
The consultation I am publishing is about updating the work capability assessment so that it keeps up with the way people work today. The activities and descriptors within the work capability assessment, which help to decide whether people have any work preparation requirements to improve their chances of getting work, have not been comprehensively reviewed since 2011, so it is right that we look afresh at how we can update them given the huge changes we have seen in the world of work.
For instance, the work capability assessment does not reflect how someone with a disability or health condition might be able to work from home, yet many disabled people do just that. Our plans include taking account of the fact that people with mobility problems, or who suffer anxiety within the workplace, have better access to employment opportunities due to the rise in flexible working and homeworking.
We are consulting on whether changes should be made to four of the activities and descriptors that determine whether someone can work, or prepare to work, to reflect changes in working practices and better employment support. This includes looking at changing, removing or reducing the points for descriptors relating to mobilising, continence, social engagement and getting about. We are not consulting on changes to the remaining descriptors, which will remain unaltered. These changes will not affect people who are nearing the end of life or receiving cancer treatment, nor will they affect the majority of activities for those with severe disablement, such as if a person has severe learning disabilities or is unable to transfer from one seat to another.
We are also consulting on changes to the provision for claimants who would otherwise be capable of work preparation activity but are excluded from work preparation requirements on the basis of substantial risk, most commonly on mental health grounds. The original intention for substantial risk was for it to be advised only in exceptional circumstances. It was intended to provide a safety net for the most vulnerable, but the application of risk has gone beyond the original intent. We are therefore consulting on how we might change how substantial risk applies, so that people can access the support they need to move closer to work and a more fulfilling life. We are also considering the tailored and appropriate support that will be needed for this group, safely helping them move closer to work.
These proposals will help people to move into, or closer to, the labour market and fulfil their potential. We are consulting over the next eight weeks to seek the views of disabled people, employers, charities and others on our proposed changes. If the proposals were taken forward following consultation, the earliest we could implement any change would be from 2025, given the need to make changes to regulations and to ensure appropriate training for health assessors.
These plans are part of our wider approach to ensuring that we have a welfare system that encourages and supports people into work, while providing a vital safety net for those who need it most. A welfare system that focuses on what people can do, not on what they cannot do, and that reflects the modern changes to the world of work. It is time to share the opportunities of work far more fairly. It is time for work to be truly available to all those who can benefit from it. It is time to get Britain working.
I commend this statement to the House.
Mel Stride
I share my right hon. Friend’s keenness to see these proposals—whatever may or may not emerge—come forward as soon as possible. They will require a lot of work on IT systems and changes to systems. The providers will have to incorporate the changes that may or not come forward as a result of this consultation. Let me reassure him that, given the benefits there will be to many people who will otherwise not benefit from work, I am as anxious as he is to make sure that we move forward at speed.
Madam Deputy Speaker (Dame Rosie Winterton)
I call the Scottish National party spokesman.
David Linden (Glasgow East) (SNP)
The big difference between the SNP and the Conservative and Labour parties is that we do not approach this from the point of view that people are somehow on the make and on the take; we do not assume that when somebody comes for an assessment they are somehow trying to cheat the Government. That is why it is important that the Select Committee on Work and Pensions noted in its recent report the concerns that disabled people are still experiencing psychological distress as a result of undergoing these health assessments.
Let me show just how perverse some of those assessments are. One of the first constituency cases I dealt with as an MP involved someone literally being asked at an assessment whether they still had autism. That gives us an idea of how fundamentally flawed this whole process is. Has the Secretary of State read the Institute for Public Policy Research report that came out today? It makes a specific recommendation to:
“Limit conditionality to facilitate person-centred support on universal credit.”
It says:
“People with health conditions, single parents and parents of young children on universal credit should be exempt from requirements or financial penalties under any circumstances.”
Has he seen that?
Will the Secretary of State also agree to look again at the Access to Work scheme? Far too often, the Government’s own Committee has received evidence that shows that Access to Work simply is not working. I come back to my fundamental point: will the Government change their philosophy—this deep suspicion that somehow claimants are on the make and on the take? All they actually need is support from their Government.
Mel Stride
I believe that my hon. Friend the Minister for Disabled People will be meeting the hon. Lady very shortly. That is in the diary, so those matters can be discussed in greater detail then. Specifically, she asks what support we will be providing. It will be exactly the kind of support to which she has just alluded. There will be universal support to help train and place individuals in work, and it will stay with those individuals for up to 12 months to make sure that they get the support to hold down that job.
Madam Deputy Speaker (Dame Rosie Winterton)
I thank the Secretary of State for his statement.
Cost of Living Support
Rosie Winterton Excerpts(10 months, 1 week ago)
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Tom Pursglove
My right hon. Friend is trying to tempt me to make commitments on behalf of the Treasury today that of course I am not able to do, but what I am able to do is ensure that the point he has made in this debate is relayed to Treasury colleagues. Again, there are ongoing conversations being had involving the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Mid Sussex (Mims Davies), who leads on housing within the Department for Work and Pensions, and colleagues in the Department for Levelling Up, Housing and Communities, for example, around some of the challenges that people are facing with housing. She is working proactively on this, along with colleagues elsewhere.
David Linden (Glasgow East) (SNP)
I too thank the Minister for advance sight of his statement, although in reality it is a nine-page press release rehash of previous Government announcements. The only new thing today is the £150 disability payment. Will the Minister reflect on the excellent report from Scope, “Disability Price Tag 2023: the extra cost of disability”, which shows that, on average, disabled households have expenditure that is £975 higher per month? We know that, for example, as a result of specialised diets, higher transport costs, higher energy costs and higher insurance premiums, there is a cost to disabled people.
Unfortunately, the Government do not have a good record when it comes to disabled people, particularly the 2.5 million legacy benefit claimants who were so cruelly overlooked during the pandemic and did not get the equivalent of the £20 uplift. I welcome the £150, but I ask the Minister to reflect on the wise words of Scope, which says that that will not touch the sides. To that end, as the Government are not quite getting this, may I invite the Minister to come to Glasgow to meet me and the Glasgow Disability Alliance, where he will hear the message, loud and clear, that this simply does not go far enough and that far too many people are going to struggle unless the Government up their game?
Tom Pursglove
I thank my right hon. and gallant Friend for his question. This is a significant issue in his constituency and a challenge in constituencies across the country. Ministers across the Government are mindful of it. It draws focus back to the key, overarching mission of this Government and the economic plan that the Chancellor and Prime Minister are advancing. That is why it is so critical that we tackle the inflationary pressures. We must not add to those inflationary pressures. If we can deal with that root cause, that is the best way to help people in that situation.
Madam Deputy Speaker (Dame Rosie Winterton)
I call the Chair of the Work and Pensions Committee.
Sir Stephen Timms (East Ham) (Lab)
The cost of living payments have made a vital contribution to millions of families in supporting people through the current crisis and I welcome the contribution they have made. However, the need for them does reflect, particularly following the removal of the £20 a week uplift from universal credit, the historically low headline level of benefits—at the moment, in real terms, the lowest for 40 years. What consideration are the Minister and his colleagues in the Department giving to consolidating those occasional one-off payments into the mainstream benefits— universal credit and the rest—so that people can budget with confidence, week by week?
State Pension Age: Review
Rosie Winterton Excerpts(1 year ago)
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The Secretary of State for Work and Pensions (Mel Stride)
With permission, Madam Deputy Speaker, I will make a statement on the second review of the state pension age, which I am publishing today.
The purpose of this review has been to determine whether the existing rules about pensionable age remain appropriate, as required by the Pensions Act 2014. Two reports commissioned by the Government have formed part of the evidence base: one from the Government Actuary and an independent report led by Baroness Neville-Rolfe, both of which I am publishing alongside this review.
l am grateful to both the Government Actuary and to Baroness Neville-Rolfe for their thoughtful and valuable reports. I would also like to thank those who responded to the call for evidence that informed the independent report.
As today’s review underlines, this Government are committed to providing dignity and security in retirement and to delivering the certainty that people need to plan for later life. It also highlights the importance of ensuring that we have the best available evidence before making decisions about the course of the state pension age that impacts millions of people.
It is thanks to the measures that this Conservative Government have taken that there are now 200,000 fewer pensioners in absolute poverty than there were in 2009-10. This year, we are projected to spend around £117 billion on state pension-related expenditure. Next month will see the state pension’s biggest ever increase, and, as a result, the new state pension will surpass £10,000 a year for the first time.
I want to make sure that the state pension in this country continues to be the foundation of income in retirement for future generations, while also being sustainable and fair. I welcome Baroness Neville-Rolfe’s independent report. It highlights an important challenge: a growing pensioner-age population and the affordability and fiscal sustainability of the state pension. It also looks at how we can balance that with our commitment to providing fairness between the generations.
As a society, we should celebrate improvements in life expectancy, which has risen rapidly over the past century and is projected to continue to increase. Since the first state pension age review was undertaken in 2017, however, the increase in life expectancy has slowed. In fact, the rapid rises in life expectancy seen over the last century have slowed over the past decade, a trend seen to a varying degree across much of the developed world. For most people and communities, people alive today are expected to live longer than their predecessors. Life expectancy is still projected to improve over time but, compared with the last review of state pension age, those improvements are expected to be achieved at a slower rate.
Having had regard to the relevant factors, I agree with the independent report’s conclusion that the planned rise in the state pension age from 66 to 67 should occur between 2026 and 2028 and that that rise is appropriate. It has been in legislation since 2014 and will continue to give certainty to those planning their retirement.
I have noted the independent report’s recommendations that the rise from 67 to 68 should take place between 2041 and 2043. That is four years later than the first independent reviewer, John Cridland, proposed in 2017—a proposal that the Government accepted, subject to a further review—but three years ahead of what is provided for in legislation. However, Baroness Neville-Rolfe was not able to take into account the long-term impact of recent significant external challenges, including the covid-19 pandemic and global inflation caused by Putin’s illegal war in Ukraine.
The Government Actuary also notes the challenges of assessing long-term mortality trends, particularly in the context of the covid-19 pandemic. He states that,
“relatively minor changes in the mortality assumptions can result in fairly large changes to the calculated State Pension age timetable”.
Given the level of uncertainty about the data on life expectancy, labour markets and the public finances, and the significance of these decisions on the lives of millions of people, I am mindful that a different decision might be more appropriate once those factors are clearer.
I therefore plan for a further review to be undertaken within two years of the next Parliament to consider the rise to age 68 again. That will ensure that the Government are able to consider the latest information, including life expectancy and population projections that reflect the findings of the 2021 census data, the latest demographic trends and the current economic situation. We will also be able to consider the impact on the labour market of the measures we have announced to increase workforce participation and of any other relevant factors.
The current rules for the rise from 67 to 68 therefore remain appropriate and the Government do not intend to change the existing legislation prior to the conclusion of the next review. All options that meet the 10-year notice period will be in scope at the next review. The Government remain committed to the principle of 10 years’ notice of changes to state pension age and will ensure that any legislation can be brought forward in a timely manner.
The approach I am setting out today is a responsible and reasonable one—one that continues to provide certainty for those planning for retirement, while ensuring that we take the time to get this right for the longer term so that the state pension can continue to provide security in retirement and is sustainable and fair across the generations.
Mel Stride
I hear what my right hon. Friend says. As I set out in my statement, there are a number of uncertainties, some of which are in the fiscal sphere. In fact, if he reads pages 13 and 14 of the Office for Budget Responsibility economic and fiscal outlook, he will see what the OBR has to say about the uncertainty of the public finances around labour supply, energy prices and, indeed, interest rates. For that reason, among others, I believe it appropriate to wait until we are more certain about what the future holds.
Alan Brown (Kilmarnock and Loudoun) (SNP)
I thank the Secretary of State for advance sight of his statement. The Work and Pensions Committee called on the Government to publish the reports by Baroness Neville-Rolfe and the Government Actuary, which have been used to inform the review of the state pension age, and it is regrettable that that did not happen in good time. I am sure that many of us are left wondering why the Government did not publish those reports earlier to allow proper parliamentary scrutiny and a more informed decision. Is it not the case that this is a political decision because this Government, who are at the end of their days, do not want another fight before the next general election?
We in the SNP oppose further increases to the state pension age. We are glad that life expectancy is now finally being factored into the wider consideration of what is an appropriate state pension. The reality is that Tory austerity, followed by covid, has caused an overall reduction in average life expectancy figures. The UK has one of the worst state pensions in western Europe; too many pensioners in Scotland live in poverty, which is a damning indictment in what is supposed to be the sixth largest economy on the planet. Is the Secretary of State not embarrassed that pensioners on these islands have to choose between heating and eating in 21st century Britain? He talks about a reduction in poverty rates, but that is because the Government are using lagged data to analyse poverty rates and ignoring the cost of living crisis that is on us now. With 7 million households in fuel poverty, the Government cannot talk about poverty rates decreasing.
There is evidence that increasing the state pension age from 65 to 66 caused absolute poverty rates to rise. Has the Secretary of State seen the Institute for Fiscal Studies report on that and, if so, has it been part of the decision-making process? What lessons has he learned from the Women Against State Pension Inequality Campaign about raising the state pension age for women born in the ’50s? When will they see some compensation?
Finally, we look forward to an independent Scotland being the best place to grow old in prosperity, not in poverty with a Westminster Government we did not vote for.
Mel Stride
That is a beautiful question because it is precise; it requires an answer that one cannot duck. I will write to my right hon. Friend with that information.
Madam Deputy Speaker (Dame Rosie Winterton)
I call the Chair of the Work and Pensions Committee.
Sir Stephen Timms (East Ham) (Lab)
I am grateful for early sight of the statement. I understand why the Secretary of State has chosen to defer the key decision. Like John Cridland’s independent review six years ago, Baroness Neville-Rolfe’s report should have been published soon after the Department received it six months ago, rather than kept needlessly under wraps until today. John Cridland proposed early access to pension credit. Will the Secretary of State consider leaving access to pension credit at age 66 when the state pension age rises to 67 in three years’ time?