Pension Funds
Debate between Torsten Bell and Richard Foord(1 week, 6 days ago)
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Richard Foord (Honiton and Sidmouth) (LD)
My hon. Friend the Member for Hazel Grove (Lisa Smart) asked whether pensioners might be given more control over where their pension funds are invested. That issue has also arisen recently in terms of whether pension funds can be invested in defence companies in the UK. Will the Minister comment on that?
Torsten Bell
I thank the hon. Member for the reminder to respond to that point. He will know that trustees already have a responsibility to invest in the interests of their members and that the law requires trustees of significant schemes—with more than 100 members—to set out a clear statement of their investment principles. The hon. Member for Hazel Grove (Lisa Smart) mentioned some of the issues they will want to consider in that. That is how trustees provide clarity to their savers. There is also then scope for individuals, particularly in larger pension schemes on the defined contribution side, to make choices about where they invest their funds. We see that, for example, with the National Employment Savings Trust, the Government-backed pension scheme, where individuals make different choices on the grounds of ethical issues across the board, including defence, as mentioned by the hon. Member for Honiton and Sidmouth (Richard Foord). I thank him for his intervention and for reminding me to come back on that point before concluding.
It is important that we offer people secure retirements. That is the job of this Government, it is my job as the Pensions Minister, and it is what our pensions review is focusing on doing. It is what this Government will always do.
Question put and agreed to.
Winter Fuel Payment
Debate between Torsten Bell and Richard Foord(1 month, 2 weeks ago)
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Torsten Bell
On the question of savings, this measure will make savings, even taking into account the increase in take-up; the evidence of that is very clear. I will also just reflect on the right hon. Gentleman’s point that his party’s Government did not take up the opportunity that the Treasury presented to means-test winter fuel payments. The truth is that the last Government and the new Labour regime before that allowed pension credit to be eroded year after year by inflation. Since the period when he considered the measure, there has been over 50% inflation erosion, so the policy of the previous Government was to cut the winter fuel payment year after year. In real terms, I am afraid that is how inflation operates.
We will not just carry out research; we will put the evidence that it provides into practice. I welcome suggestions from right across the House on what more we can do to drive take-up of pension credit.
Richard Foord (Honiton and Sidmouth) (LD)
My point relates to the cliff edge. Anne Addis from Cullompton is a 76-year-old widow. Her late husband’s Army pension pushed her just £15 over the pension credit threshold. That means that she is one of 130,000 people who are worse off than those on lower incomes who continue to qualify for pension credit. Will the Minister consider introducing a taper to get rid of that cliff edge?
Torsten Bell
We have all met constituents who raise this issue, and the hon. Member is right to say that there are challenges with the cliff edge. It is in the nature of the pension credit regime, because the regime is about a minimum income guarantee. People sometimes think about it as if it had a threshold, but it is about providing minimum guarantee of minimum income, so I do not think that that is an appropriate way forward, but I would be happy to discuss this with him, as it is always useful to discuss these issues.