Oral Answers to Questions

Steve Webb Excerpts

Monday 19th July 2010 Commons Chamber

[John Robertson (Glasgow North West) (Lab)]

3. What assessment he has made of the likely effect on pensioners of his proposed changes to the welfare system.

[The Minister of State, Department for Work and Pensions (Steve Webb)]

Since the general election a number of changes have been announced to benefits and pensions. The most significant for pensioners was our decision, after 30 years of decline in the pension’s real value, to restore the earnings link with the basic state pension.

[John Robertson]

I thank the Minister for his answer, but he is well aware that the earnings link will not help pensioners as of January, when they start to pay their increased VAT. That increase amounts to almost £8 billion over the life of a Parliament, so when will the hon. Gentleman stick by his party’s promise during the general election campaign to fight any VAT rise? What will he do to protect those elderly people who, through no fault of their own, will be left with enormous debts, thanks to this Government?

[Steve Webb]

I am not sure whether the hon. Gentleman is aware that the Office for Budget Responsibility estimates that the country’s structural deficit is now more than £12 billion larger than it was thought to be at the election. I do not know where he would have got that £12 billion from. As for pensioners, not only will we ensure that we restore the earnings link, but in April 2011 the full value of the cash increase in the state pension will go through to the poorest pensioners on pension credit.

[Ms Angela Eagle (Wallasey) (Lab)]

Does the Minister agree that if the pensions in payment today had been linked to the consumer prices index rather than to the retail prices index for the past 20 years, pensions would be 14% lower than they are now? Does not the proposed shift in the definition of price indexation represent a huge raid on pension benefits, which gets worse and worse as time goes on and makes all current and future pensioners poorer?

[Steve Webb]

It pains me to suggest that the hon. Lady is being selective in her use of statistics, but if she looks at the increase in pensions as a whole—the basic state pension and additional pensions—she will see that we have linked the basic state pension to earnings, which over the course of 20 years, for a typical person retiring this year, will add £15,000 in extra state pension compared with price indexation, which was the policy of her Government.

[Miss Anne Begg (Aberdeen South) (Lab)]

In a written statement, the Minister said that the Government would force occupational pensions to be linked to the consumer prices index instead of the retail prices index. What powers do they have, or will they have, to take to make that happen?

[Steve Webb]

I am grateful to the Chair of the Select Committee on Work and Pensions for her question, as this matter has not been well understood. Statute provides a floor above which occupational pension schemes have to operate. In other words, we will not force occupational pension schemes to cut their increases; we simply provide a floor, which used to be linked to the RPI and is now linked to the CPI. Schemes remain entirely free to go beyond that if they wish.

[George Eustice (Camborne and Redruth) (Con)]

4. What discussions he has had with the Industrial Injuries Advisory Council on industrial injuries linked to the mining industry.

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[Miss Anne McIntosh (Thirsk and Malton) (Con)]

10. What public consultation will be held on proposed changes to the retirement age for state pensions; and if he will make a statement.

[The Minister of State, Department for Work and Pensions (Steve Webb)]

On 24 June we published a call for evidence for plans to increase the state pension age to 66 on a more rapid time scale. The closing date for that consultation is 6 August.

[Miss McIntosh]

There is a general understanding of the need for such a change, but those who will be affected by what will be an arbitrary date desperately need the knowledge to enable them to plan their finances, to give them certainty and security in their retirement.

[Steve Webb]

My hon. Friend makes an important point, and we are seeking to move as quickly as possible to reach a conclusion on the change to the age of 66, to give people the maximum notice so that they can make appropriate plans.

[Malcolm Wicks (Croydon North) (Lab)]

Notwithstanding the need to increase the age at which people draw the state pension, will the Minister and his Department look into the social class dimension? According to the latest statistics, 19% of men from the poorest social backgrounds do not survive to get their pension. Those from poorer backgrounds, who often do heavy manual work throughout their lives, die much earlier in their pension careers than those from better-off backgrounds. Will he look into the social class dimension?

[Steve Webb]

The right hon. Gentleman is very knowledgeable about pensions and social issues, and he has highlighted an important matter. We specifically referred to this in the call for evidence for the change to 66. The good news is that life expectancy is increasing across all social groups, but the factor that he mentioned is an important one, and we will consider it when we examine state pension ages.

[Mr David Burrowes (Enfield, Southgate) (Con)]

11. What steps Jobcentre Plus plans to take to assist education leavers into employment and training in 2010.

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[Nadhim Zahawi (Stratford-on-Avon) (Con)]

T4. In my constituency, a large number of people—much larger than the national average—are pensioners, and in my region an amazing 22% of pensioners are in effective poverty. What will my hon. Friend be doing for the most vulnerable pensioners?

[The Minister of State, Department for Work and Pensions (Steve Webb)]

We need to ensure that, as well as lifting the level of the basic state pension, the most vulnerable pensioners, who receive the pension credit, get the full benefit of the increase that we will be introducing next April. However, in the longer term we do not want to allow people to retire poor and then try to catch them through a means test; we want to ensure that more people have, for example, workplace pensions, so that fewer people retire poor in the first place. That is a better strategy for the long term.

[Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)]

T3. Given the brief opportunity afforded by Lord Young for others to input into his review of health and safety legislation, what comfort can the Minister give my constituents that its motivation is a serious effort to ensure that the right protection is in place to prevent disasters such as the one that occurred in the constituency of my hon. Friend the Member for Glasgow North (Ann McKechin), at Stockline, rather than another excuse to trot out the usual litany of myth and distortion for the gratification of the Daily Mail?

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[Robert Halfon (Harlow) (Con)]

T6. Does the Minister agree that more must be done to help the unemployed over-50s, who are not necessarily on benefits? A constituent of mine, Mr Kevin Forbes, who was made redundant, has applied for more than 4,700 jobs without any luck. What comfort can the Minister give him and many others that we will radically improve back-to-work schemes for the over-50s?

[Steve Webb]

My hon. Friend raises an important point, not least about ageist attitudes, particularly among employers. One of the worst examples is that it is currently legal to sack somebody for being over 65. We think that that is outrageous. The previous Government talked about it, but we are going to change the law, and that will be part of a cultural change. We need to see longer working lives. Many people want to go on making a contribution, and, like my hon. Friend’s constituent, they are thwarted in their attempts to do so. We need to change that culture and to change attitudes.

[Mr Speaker]

It is always a pleasure to listen to the Minister. May I just ask him to face the House? It is a very natural temptation to look backwards, but facing the House helps us all.

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[Nick Smith (Blaenau Gwent) (Lab)]

My question is on pensioner poverty. Parts of my constituency are more than 1,200 feet above sea level and in the winter they can be very cold, so will the Minister guarantee not to cut the cold weather payments in the coming five years?

[Steve Webb]

As the hon. Gentleman knows, the underlying level of cold weather payments has been £8.50, which was increased to £25 for the past two winters. We are considering the rate for the coming winter, but we take representations each year on cold weather stations to make sure that they match the exact geography of local areas, for the sort of reasons that he gives.

[Mr David Burrowes (Enfield, Southgate) (Con)]

T8. Will my hon. Friend inform the House of the estimate of the number of benefit claimants who are addicted to alcohol and/or drugs? Will she outline the opportunities that will arise under the Work programme to reduce dependency, which can often be both on drugs and alcohol, and benefits?

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[Julian Smith (Skipton and Ripon) (Con)]

T9. At my surgery on Saturday, Liz Harlow, a benefits adviser, told me that it is taking weeks to process applications for crisis loans. Given that they are described as loans that can provide help in “an emergency or disaster”, can Ministers reassure me that they will be processed more quickly in future?

[Steve Webb]

My hon. Friend raises a vital issue. We need to ensure that crisis loans are administered far more efficiently than they are at present. I am aware that there are delays. I am happy to look not only into the individual case that he raises, but more systematically at whether the social fund is delivering—I do not think that it is.

[Joan Walley (Stoke-on-Trent North) (Lab)]

Given the vital role that Jobcentre Plus staff play in getting people back to work and given that about 13,500 of them are on fixed-term contracts, some of which are due to end in November, can the Minister give the House an assurance that talks are taking place to extend or make permanent job contracts?