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Category: Pensions

  • David Linden – 2022 Speech on the State Pension

    David Linden – 2022 Speech on the State Pension

    The speech made by David Linden, the SNP MP for Glasgow East, in Westminster Hall, the House of Commons, on 12 December 2022.

    As ever, it is a pleasure to serve under your chairmanship, Sir Robert, and to reply to a debate on behalf of the Scottish National party. I congratulate the hon. Member for Battersea (Marsha De Cordova) on opening the debate, and I commend the hon. Member for Cynon Valley (Beth Winter) on her speech.

    Before I get into the substance of my speech, I want to note that my remarks today are my first since returning to the SNP Front Bench. I pay tribute to the hard work and dedication of my hon. Friend the Member for Aberdeen North (Kirsty Blackman), who as my party’s spokesperson on work and pensions repeatedly held the British Government to account, fought for the poorest in society and highlighted the sheer inadequacy of the UK’s social security system. She will be a tough act to follow, and I wish her well in her new position as Cabinet Office spokesperson—a role I am sure she will thrive in.

    The petition that triggered this debate calls for an increase to the state pension and for us to reduce the state pension age to 60. I will come to the appalling financial inadequacies of the state pension in a moment, but I will first address the age at which people become eligible. We are by no means outliers among developed nations in having an ageing population, which presents the state with many problems to solve in terms of service provision and many fiscal challenges.

    As we debate this issue, every one of us in this room should be mindful of the fact that not all jobs are the same. As we sit here in the luxurious comfort of a palace, people out there are carrying out manual labour jobs—indeed, some today in sub-zero conditions. Sir Robert, you and I may not think that we will be ready to retire at 60, but many others will, so I believe that a balance must be struck. Although, for practical reasons, the Scottish National party cannot support reducing the retirement age to 60, the notion that the pension age needs to go up and up, as a simple solution to the British Government’s problems, is both cruel and unrealistic.

    It feels like little has changed at the Department for Work and Pensions since I last shadowed this brief. The British Government continue their heartless policies, the cost of living crisis ravages on, and it is the poorest and most vulnerable who bear the brunt of the hardship. As I was preparing for today’s debate, I found myself despairing, because for me, as a Scottish nationalist, Westminster often feels like groundhog day, and no more so than when we are looking at the policies of the Department for Work and Pensions.

    I find myself today critiquing the same Tory policies that I criticised last year. It seems that the DWP’s strategy for addressing the cost of living crisis is largely to shove its fingers in its ears and just hope that inflation comes down. Despite that, the cost of living crisis continues to spiral out of control and inflation has risen to 11.1%—a 41-year high. The cost of essential family goods has risen sharply over the past year, and the Office for Budget Responsibility predicts that average household disposable incomes will fall by 7% this year and next.

    Food banks, such as Glasgow NE Foodbank in my constituency, are struggling to keep up with the rising demand. Across the constituency, I have heard food bank volunteers say that many people are, sadly, using food banks for the very first time—I was surprised to hear from one volunteer that a family who had previously donated to the food bank were now forced to use it themselves.

    One thing I reflected on when I previously held this brief was that we as politicians are used to talking regularly about child poverty, but some of us find it a lot less natural and a lot more embarrassing—we wince a lot more—to talk about pensioner poverty, which is something that we do not give enough focus. However, as Independent Age has emphasised, with

    “more than 2 million pensioners already living in poverty and the cost-of-living crisis hitting hard, we know people are being forced to make impossible choices on how to cut back to be able to afford heating, electricity and food.”

    As Christmas approaches, research by Age UK has shown how frightened older people are about surviving the next few months, with a significant number this year anticipating a more solitary and lonely Christmas period than usual. Age UK’s polling also found that more than one in five older people are already reducing or stopping their spending on medication or specialist foods, or expect to do so in the coming months, and that one in seven is skipping meals or expects to do so in the same period.

    I have genuine respect for the Minister, and I know that she will say that the cost of living crisis has come about as a result of Vladimir Putin’s invasion of Ukraine, but it is not solely because of Putin’s invasion of Ukraine or, indeed, the economic hangover from the coronavirus pandemic. I would certainly argue, and I am sure others would as well, that the touchpaper was lit on the cost of living crisis 12 years ago, when a Government that Scotland did not vote for embarked on a brutal assault via Tory austerity. I am afraid that that has been exacerbated by Brexit—something else that people in Scotland did not consent to.

    The UK has one of the lowest state pensions in north-western Europe, and after a decade of Tory austerity cuts, pensioner poverty is now on the rise. Some 85% of social security and the state pension itself is reserved to this institution and the British Government, so Scotland has little say in this hugely important policy area. SNP MPs have campaigned vehemently for the Tories to maintain the triple lock. Only after multiple U-turns and breaking their manifesto pledge last year—and after a very unhealthy dose of uncertainty for pensioners across these islands—did the British Government finally retain the triple lock.

    However, the suspension of the triple lock in 2021 shows that Scotland does not have the powers to prevent Tory cuts for pensioners. The suspension ended up costing each pensioner £520 on average during the cost of living crisis. Additionally, the Scottish Government under the current devolved settlement have no power to raise the state pension, as Ministers know fine well, although some often like to pretend otherwise.

    The SNP has continually implored Ministers to devote a larger percentage of GDP to state pensions and indeed to pensioner benefits. The British Government are allowing £1.7 billion of pension credit to go unclaimed during the cost of living crisis. We know that pension credit is a vital lifeline for many older people, but only seven in 10 of those eligible claim the money that they are fully entitled to. The British Government must introduce a full take-up strategy for reserved benefits, including pension credit, as the Scottish Government have done in respect of devolved benefits. I genuinely welcome the conversation I had with the Minister before the debate, when we said that we would discuss this issue offline.

    The Conservative Government have a rather long track record in picking the pockets of our pensioners: from the WASPI women and the triple lock to the low take-up of pension credit, the frozen pensions of overseas pensioners, many of whom are veterans, and the scrapping of free TV licences for the over-75s, the list goes on and on. This Government have very much been found wanting in terms of their record on pensioners.

    Only with full powers over pensions can the Scottish Government at least remedy these injustices. In an independent Scotland pensioners could be protected from Westminster austerity. We in the SNP want Scotland to be the best place to grow old—a place where retirement means dignity and fairness for all. I know that adhering to manifestos or, in some cases, leadership election pledges is a bit of a quaint novelty for the two biggest parties in this House. However, my party’s 2019 manifesto committed me and my colleagues to continue advocating for a fairer pensions system and to oppose plans to increase the state pension age beyond 66.

    Alongside that, we will continue to call on the British Government to establish an independent saving and pension commission to ensure that pension policies are fit for purpose and genuinely reflect the demographic needs of the different parts of these islands. I am struck by the fact that the life expectancy in Kensington and Chelsea is very different from that in my own constituency.

    Of course, all of this is predicated on Ministers in Whitehall listening to the voices of those that Scottish voters send to this House—something the Government have a poor track record on. Therefore, the only way to ensure that our pensioners grow old with dignity is for Scotland to become an independent country, with powers to protect pensioners and ensure that they live their final days in prosperity, not poverty.

  • Beth Winter – 2022 Speech on the State Pension

    Beth Winter – 2022 Speech on the State Pension

    The speech made by Beth Winter, the Labour MP for Cynon Valley, in Westminster Hall, the House of Commons, on 12 December 2022.

    Thank you, Sir Robert, for the opportunity to speak. Before I became an MP, I conducted more than 10 years of research on how poverty and inequality affect older people’s inclusion in society, so this subject is a particular interest of mine.

    Pensioner poverty is significant in the UK, and it continues to increase. It is estimated that over 2 million—one in five—older people are living in relative poverty, with the greatest impact on women and other vulnerable groups. The level of pensioner poverty is similar in my country, Wales. The Older People’s Commissioner for Wales—I am very proud that Wales is still, I think, the only nation in the UK to have an older people’s commissioner—along with other organisations, has expressed serious concern about the detrimental impact that the cost of living is having on older people. My constituency had the third highest death rate from covid in the whole of the United Kingdom. That exemplifies the effect that poverty and the industrial legacy of Cynon Valley have on the health and wellbeing of older people.

    Just before the summer, I conducted a cost of living survey in Cynon Valley. Nearly nine out of 10 pensioners who responded said that they felt worse off than they did 12 months earlier. Security in retirement was the biggest cause for concern among pensioners. One older person said:

    “Us elderly people have worked very hard over the years and we get very little back to survive on.”

    I pay tribute to a range of organisations in Wales, including Age Cymru and Age Connects in Cynon Valley, who are doing amazing work with older people, trying to empower them and giving them a voice in our communities.

    The petition calls for an increase in the state pension to £380 a week and a reduction in the state pension age to 60, which would be a significant change. However, the demands of the petition open up a debate on where pension levels are set and what is the right age to start receiving the state pension.

    At the 2019 election, my right hon. Friend the Member for Hayes and Harlington (John McDonnell), the then shadow Chancellor, rightly sought to deal with state pension inequality for women and offered a major compensation scheme. He said:

    “This is an entitlement. This is not a benefit…This is a historic injustice. We have to address it.”

    Over 4,000 women in my constituency are affected, and I am working closely with an active group of local women to continue campaigning for justice for the WASPI women. I have continued to support their demand for compensation, through demands for full restitution and through the minimum compensation proposal of the WASPI campaign and the all-party parliamentary group on state pension inequality for women. As we know, the ombudsman has found that there was maladministration, and we are now waiting for the full report to be published and for the recommendations for remedy. We must compensate these women.

    The other group of older people I am working closely with in Cynon Valley are former miners. I welcomed the Business, Energy and Industrial Strategy Committee report in 2021, which recommended giving £1.2 billion held in the investment reserve to former miners. It really is regrettable that the Government have rejected the Committee’s recommendations, and I urge them to look at those again. The WASPI women and former mineworkers are examples of pensioners who have been let down—and let down massively—by the UK Government.

    More broadly, there is a debate around the level of the state pension. Much is being said about how pensioners’ incomes have been safeguarded, compared with real changes to incomes and social security in recent years. However, pensioner poverty is growing, and the petition demands a significant increase in the state pension. The National Pensioners Convention says that the state pension should be set at 70% of the living wage and above the official poverty level, at £242.55 a week. That is what a pensioner in the Netherlands gets, with an equivalent of more than £250 a week. The petition demands £380 a week, and in Denmark the folkepension for a single pensioner is £370 a week. This can and should be done here. These other countries’ pensions put the demands of the NPC and this petition into perspective—they are not unreasonable demands.

    The question about funding these increases is welcome. There are many sources of untaxed wealth that could deliver the revenues to pay for higher pensions. A wealth tax could raise in the region of £260 billion to £300 billion. The country has the money; it is a political choice not to redistribute the wealth of this country to ensure that older people and many millions of other vulnerable people have the money to maintain a basic standard of living. That is a basic human right, and everybody should have that entitlement.

    Before I conclude, I will take the opportunity to highlight the fact that a third of those entitled to pension credit—over 750,000 people—do not claim it, although they are entitled to. As my hon. Friend the Member for Battersea (Marsha De Cordova) said, that equates to about £1.7 billion of unclaimed money. I urge the UK Government urgently to take action on this issue. I truly wish that they would pay as much attention to ensuring that people claim what they are entitled as they do to stigmatising people on social security benefits, who are entitled to that money and should have it as a matter of right.

    To conclude, pensioner poverty is rising. Combatting it is a question of principle and values. If we are to achieve justice for pensioners, we must take action to deliver it.

  • Marsha De Cordova – 2022 Speech on the State Pension

    Marsha De Cordova – 2022 Speech on the State Pension

    The speech made by Marsha De Cordova, the Labour MP for Battersea, in Westminster Hall, the House of Commons, on 12 December 2022.

    I beg to move,

    That this House has considered e-petition 617603, relating to the state pension.

    It is a pleasure to serve under your chairmanship, Sir Robert. I thank the hon. Member for Glasgow East (David Linden) for his point of order.

    I start by congratulating Michael Thompson on creating the petition, as well as the creators of the six other petitions being debated today. I thank Age UK and Silver Voices for their briefings, and the whole of the Petitions Committee team for all their hard work. The petition calls on the Government to increase the state pension to £380 a week, and to lower the retirement age back to 60. The petition has already been signed by more than 110,000 people.

    The current full state pension is £185.15 per week, and the basic state pension is £141.85. Many of us are here today because we believe that the state pension should provide adequate financial support for the 12 million pensioners in the UK, ensuring that they are protected in old age after paying into the system. Given this country’s wealth, we can afford to look after our pensioners. By increasing the state pension or introducing a minimum pension income guarantee, we could lift thousands of pensioners out of poverty.

    While financial support is vital, the issue is not just about money. Measures to address pensioner poverty must include a broad range of actions to underwrite acceptable living standards, including support for our wider public services, such as social care to support our pensioners to live independently, and day centres to reduce loneliness and social isolation. On that point, I thank Age UK Wandsworth in my Battersea constituency. I visited last week and met many of the older people who value the services provided by that day centre, but they really want more access to it, more often. More importantly, all of them wanted the state pension to increase.

    Poverty and inequality among pensioners are rising, with more than 2 million people in relative poverty. There are many reasons why some are falling into poverty. The first and most urgent is the cost of living crisis. Research by the Centre for Ageing Better found that a further 200,000 elderly people have already been pushed into poverty in the last year, and a recent report by Age UK found that this Christmas will be among the most difficult ever for nearly 3 million older people.

    The measly 3% rise in the state pension this financial year was dwarfed by inflation and the intersecting impacts of rocketing food, fuel and energy bills, with the latter alone forecast to rise to £3,000 by next April. After shamefully reneging on their manifesto commitment on the triple lock last year, the Government finally committed to its reinstatement, as well as a cost of living payment for pensioners, in last month’s autumn statement. However, given that neither measure is scheduled to come into force until next year, they will be too little, too late for many who need the support right now. The misery is compounded by cuts to public services and the Government’s U-turn on their social care reforms: 10% of older people will reduce or stop their care in the coming months because of the cost of living crisis.

    These causes of poverty only add to the challenges faced by pensioners. Although older people have a higher rate of home ownership than the general population, many are asset rich but cash poor. That means that some are driven to sell their homes to make up for shortfalls in pensions and are pushed into the higher-cost private rented sector.

    Inequalities in state pension rates are also dragging the elderly into poverty. Department for Work and Pensions statistics for the 2020 financial year show that less than 10% of all pensioners received the full new top rate of pension—£185.15—and less than a third of those on the old pension receive the full rate.

    The rise in the eligibility age for the state pension from 65 to 66 from 2018 has also increased hardship. According to the Institute for Fiscal Studies, more than 700,000 65-year-olds have missed out on entitlements and postponed retirement. The elderly are compelled to remain in the job market, and they simultaneously lack opportunities to increase their income. The Government need to consider targeted support for people who are much older as endemic age discrimination in employment affects their ability to build a work pension or find work to complement their state pension.

    The third factor is the pension credit system, which can play an important part in helping to close the pensioner poverty gap, especially for women, disabled people and black, Asian and ethnic minority pensioners. Since Labour introduced the measure, its efficacy has been undermined by low take-up. In its July report, the Work and Pensions Committee stated that

    “an estimated further 850,000 eligible households are not claiming Pension Credit worth £1.7 billion a year.”

    It strongly recommended that the Government improve the identification of eligible people, streamline the application process and make it more accessible.

    The risk of pensioner poverty is amplified for women, disabled people and black, Asian and ethnic minority pensioner groups. Women disproportionately experience later-life poverty, with the proportion of those suffering rising from 14% to 20% in the eight-year period from 2013. The equivalent figures for men were 12% and 18%. Those figures are expressions of the wider inequalities endured by women. The Women Against State Pension Inequality Campaign highlights a particularly egregious instance of those disparities. The Government have a legal and moral obligation to deliver for the many WASPI women in our constituencies. Pensions, lifetime earnings and national insurance contributions are typically lower for women due to the gender pay gap and caring responsibilities—we are all aware of those factors.

    For black, Asian and ethnic minority pensioners, the inequalities are even starker. According to Age UK, 33% of Asian and 30% of black pensioners are in poverty—double the proportion of their white counterparts. Similarly to those faced by women, these inequalities are the expression of lower average wages and labour market discrimination, which translate to less generous state pensions. That has often led to some ethnic minority people earning below the minimum salary threshold for auto-enrolment in workplace pensions. Lowering that threshold would be an easy fix for this injustice; according to a report by The People’s Pension, it would double the enrolment of ethnic minority employees.

    Employment and pay disparities also create later-life poverty for disabled pensioners, who are less likely to possess a work pension or a private pension as a result. We know that those effects will be exacerbated by higher living costs of around £600 per month on average for disabled people, including older disabled people.

    All that shows emphatically that some pensioners are really struggling. The Government need to look at how they can support them. I hope that the Minister will address the issues I have raised, as well as making reference to the following points. First, the Government talk a lot about tackling pensioner poverty. If they are serious about doing so, why will they not commit to increasing the state pension, or introducing a minimum pension income guarantee for everybody, irrespective of their contribution record, their sex and gender, their age or their marital status?

    In the current crisis, the additional cost of living payments announced in last month’s autumn statement clearly will not be enough for some pensioners. Will the Government therefore introduce additional financial support targeted at those pensioners who are most in need?

    Have the Government carried out an impact assessment of how the delay caused by the U-turn on social care reform will impact our pensioners? What plans do they have to address the inequality I highlighted of the low percentage of people on the full new state pension rate?

    My next point is probably the most crucial; it concerns pension credit. Why will the Government not deliver a take-up campaign to identify eligible pensioners, and introduce a streamlined and accessible application process, so that the pensioners who are entitled to that additional top-up can receive it? Pension credit is there to top up income, and I strongly believe that the Government could be proactive in identifying pensioners who might qualify.

    The WASPI women need justice. When will the Government provide compensation for the failings? Will they commit to ensuring that there is a proper, lengthy notice period for any future change to the state pension age?

    Will the Government seek to bring down the minimum salary for auto-enrolment to workplace pension schemes? That would increase the participation of under-represented groups, particularly our black, Asian and ethnic minority communities.

    We all know, particularly at this time of year, that loneliness and social isolation are key contributors to material deprivation. More investment is needed in public services and the social support networks that are available to older people; in fact, we need an overarching strategy to address that. What are the Government doing to support community and local organisations, such as Age UK Wandsworth in my constituency? It provides a lifeline and vital services to people who live in the local area. I reiterate the point I made earlier: because of the funding available, many can attend that centre only a couple of days a week, but they would like to go three or four times a week. It is unfair that the time they can spend at such centres is being limited.

    Finally, I call on the Government to explore alternative ways to fund our pension system. The state pension is unfunded, meaning that its obligations are not underpinned by assets that could generate investment and return. That funding model is implicitly appealed to when the Government object to the rising cost of pensions due to our ageing population and the impact that will have on younger people, although that probably does not apply to any of us in the Chamber, as none of us is very young. [Interruption.] Well, some might be. However, an appreciation of funding models used in other countries could point the way towards a systemic shift that could help fund the state pension system.

    We owe it to our elderly and all our pensioners, as well as to the generations that come after us, to be progressive in our thinking and innovative in our approach. We must look at all options to ensure that when people reach their later years they will not fear retirement but embrace it, because they will know that, in the state pension system, there is a safety net in place to support them and they will not be struggling.

  • Cat Smith – 2022 Parliamentary Question on the Cost of Living for Pensioners

    Cat Smith – 2022 Parliamentary Question on the Cost of Living for Pensioners

    The parliamentary question asked by Cat Smith, the Labour MP for Lancaster and Fleetwood, in the House of Commons on 5 December 2022.

    Cat Smith (Lancaster and Fleetwood) (Lab)

    What steps his Department is taking to support pensioners with increases in the cost of living.

    The Parliamentary Under-Secretary of State for Work and Pensions (Laura Trott)

    All pensioner households are in the process of receiving an extra £300 to help them cover the rising cost of energy this winter. For those in receipt of pension credit, the second cost of living payment of £324 was issued in November.

    Cat Smith

    Rural pensioners face additional challenges to the cost of living crisis, and I have recently heard from constituents in the villages of Forton and Winmarleigh who are still waiting for information from the Government on the payment of the alternative fuel payment scheme, as they are off grid. Additionally, the removal of the Bay Plus Megarider bus ticket has increased the price of bus tickets, which may not directly affect those pensioners, but where they are supporting adult children and school-age children in their households, it is impacting on their family budgets. What steps are the Government taking to support pensioners who live in rural parts?

    Laura Trott

    I recognise a lot of the challenges that the hon. Lady mentions, and this is why we are giving pensioners £850, and people on pension credit £1,500, to get through this winter.

    Sir David Evennett

    I welcome my hon. Friend to her position and I would like to thank her for the answer she has just given us. I wish her well in her job. The Government’s £300 boost to the winter fuel payment will give pensioners vital support this winter, and I know it is much appreciated by my constituents. However, will she join me in encouraging pensioners on low incomes to look into whether they are eligible for pension credit and to submit an application for this additional support as soon as possible?

    Laura Trott

    I thank my right hon. Friend for his question. He is, as always, absolutely right. I know that he visited Age UK recently and raised these issues. It is vital that any pensioners receiving less than £182.60 a week look into whether they are eligible for pension credit, and if they are, they should try to claim it before 18 December, because the cost of living payment of £324 can be backdated.

  • Helen Morgan – 2022 Parliamentary Question on WASPI Women

    Helen Morgan – 2022 Parliamentary Question on WASPI Women

    The parliamentary question asked by Helen Morgan, the Liberal Democrat MP for North Shropshire, in the House of Commons on 5 December 2022.

    Helen Morgan (North Shropshire) (LD)

    If he will take steps to compensate women born on or after 6 April 1950 affected by changes to the state pension age.

    The Parliamentary Under-Secretary of State for Work and Pensions (Laura Trott)

    State pension age equalisation and subsequent increases have been the policy of successive Governments. The phasing in of state pension age increases was agreed to by the hon. Lady’s party in 2011 and 2014.

    Helen Morgan

    Last July the pensions ombudsman concluded that the Government had been too slow to inform many women that they would be affected by the rising state pension age. Along with the cost of living crisis, this means that many of the WASPI women—Women Against State Pension Inequality—are struggling to get by, and it is one of the concerns most frequently raised in my weekly surgeries. I wonder whether the Secretary of State will commit himself to an interim payment for the women affected by the change in pension age while they wait for the release of the ombudsman’s final report.

    Laura Trott

    As the hon. Lady knows, the investigation is ongoing, so it would not be appropriate to take any further steps at this stage.

  • Mel Stride – 2022 Statement on State Pension and Benefits Rates

    Mel Stride – 2022 Statement on State Pension and Benefits Rates

    The statement made by Mel Stride, the Secretary of State for Work and Pensions, in the House of Commons on 17 November 2022.

    The Social Security Administration Act 1992 places an annual statutory duty on the Secretary of State to review the rates of state pensions and benefits after consideration of trends in price and earnings growth in the preceding year. I have now concluded this review for the tax year 2023-24.

    I have decided that state pension and benefit rates should increase in line with the consumer prices index (CPI) for the year to September 2022. This means that they will increase by 10.1% from 10 April 2023.

    I will deposit the full list of the new rates in the Libraries of both Houses in due course, but I am pleased to announce here the increases to some of the largest benefits. The full rate of the new state pension will increase from £185.15 to £203.85 a week. The basic state pension will increase from £141.85 to £156.20 a week. The standard minimum guarantee for a couple in pension credit will increase from £278.70 to £306.85 a week. The enhanced rate of the daily living component of personal independence payment will increase from £92.40 to £101.75 a week. The universal credit standard allowance for a couple where one or both are over 25 will increase from £525.72 to £578.82 a month; the limited capability for work and work-related activity amount will increase from £354.28 to £390.06 a month; and the child element for those born on or after 6 April 2017 will increase from £244.58 to £269.58 a month.

    This decision will increase expenditure on state pensions and pensioner benefits by £13 billion in 2023-24 compared to no change in these rates for the same period. It will meet the Government’s manifesto commitment to apply the triple lock to the new and basic state pensions. It will also extend CPI protection to those who rely on the standard minimum guarantee in pension credit at a cost of £700 million above the statutory minimum requirement.

    The decision will also increase expenditure on reserved non-pensioner benefits by £9 billion in 2023-24 compared to no change in these rates for the same period. This includes benefits for those with additional disability or care needs and increases to universal credit which provides essential support to people on the lowest incomes while they seek work, seek progression in work, or are unable to work.

    In view of the exceptional situation that currently pertains with respect to fuel costs, I have also decided to freeze the standard fuel cost deductions in housing benefit, rather than increase them in line with the normal convention of the fuel element of CPI.

    I can also confirm that the local housing allowance rates for 2023-24 will be maintained in cash terms at the elevated rates agreed for 2020-21.

    I have also completed my periodic statutory review of the levels of the benefit cap which, since 24 March 2022 and under Section 96A of the Welfare Reform Act 2012, I am obliged to undertake at least once every five years. I have concluded that each of the four benefit cap levels should be increased in line with CPI for the year to September 2022. This means that they will increase by 10.1% from April 2023. The annual benefit cap levels will therefore increase as follows:

    to £25,323 for couples and lone parents in London and £22,020 for the rest of Great Britain

    to £16,967 for single people without children in London and £14,753 for the rest of Great Britain.

    Social security is a transferred matter in Northern Ireland.

  • Laura Trott – 2022 Speech on the State Pension Triple Lock

    Laura Trott – 2022 Speech on the State Pension Triple Lock

    The speech made by Laura Trott, the Parliamentary Under-Secretary of State for Work and Pensions, in the House of Commons on 8 November 2022.

    I thank all hon. Members for their valuable contributions to the debate.

    Since 2010, pensioner incomes have gone up, absolute pensioner poverty has gone down and we have corrected the historic inequalities towards women in the state pension. That is a record that we on the Government Benches can be proud of. The decision on how to uprate state pension for this year is taken by the Secretary of State at the same time as the uprating decision on all benefits for those of working age and over state pension age.

    Alan Brown

    The Minister is repeating what the Secretary of State said earlier about pensioner poverty going down. The reality is that it is down only on old statistics. Pensioner poverty is increasing. Fuel poverty is increasing. So will the Government update the House on what the true figures on poverty are in the UK?

    Laura Trott

    We absolutely recognise that this is a very difficult time for pensioners. That is why we put a substantial package of support in place, which I will come on to later.

    The Secretary of State set out, when opening the debate, that the results of his uprating review will be announced alongside the autumn statement on 17 November. To nobody’s surprise, I will not be pre-empting the outcome of that review today. However, reflecting the debate this afternoon, it is important to highlight how pensioners have been supported since 2010.

    The yearly amount of the basic state pension has risen by over £2,300 in cash terms, rightly highlighted during the debate by my hon. Friends the Members for South Cambridgeshire (Anthony Browne), for Torbay (Kevin Foster) and for Heywood and Middleton (Chris Clarkson). Average weekly pensioner incomes have increased by 12% in real terms and as a result absolute pensioner poverty has fallen by 400,000 since 2010.

    We are forecast to spend over £134 billion on benefits for pensioners in 2022-23. That amounts to 5.4% of GDP.

    Karin Smyth (Bristol South) (Lab)

    If everything has been so good since 2010, why did the Government stand on a manifesto commitment in 2019 to protect the triple lock? What was the point of that?

    Laura Trott

    We have been absolutely clear about our record since 2010. I have been clear that I cannot pre-empt the decisions of the Secretary of State. The point is that we on the Government Benches have put plans in place to help pensioners this winter. We are not waiting until next April.

    Mr Mohindra

    I welcome the Minister to her place. Can the Minister confirm to the House again that, if we wait nine days, we will be given all the information this House seeks on the financial statement, which is due next week?

    Laura Trott

    My hon. Friend, on this as with so many other things, is absolutely right. I will make some progress now on my speech.

    At the heart of the 2016 reforms we made to the state pension was a correction of some of the historic unfairness in the previous system, particularly for women, the self-employed and lower-paid workers.

    Paula Barker

    Will the Minister give way?

    Laura Trott

    I am just going to make some progress, I am sorry.

    That means women no longer need to rely on the pension contributions of their husbands, and it is more generous to those who spend time looking after their children, as my hon. Friends the Members for Guildford (Angela Richardson) and for Broadland (Jerome Mayhew) pointed out. As a result, more than 3 million women stand to receive an average of £550 more a year by 2030.

    Paula Barker

    Will the Minister give way?

    Laura Trott

    I am sorry, but as I said, I will make some progress.

    Under the state pension, outcomes are projected to equalise for men and women by the early 2040s, more than a decade earlier than they would have done under the old system.

    The other important pillar of the 2016 state pension reforms was automatic enrolment. That was raised by my hon. Friends the Members for South West Hertfordshire (Mr Mohindra), for Rother Valley (Alexander Stafford), for Broadland and for Heywood and Middleton. Automatic enrolment into workplace pensions has had a transformative effect on pension-saving participation. As my hon. Friend the Member for Broadland pointed out, private savings for pensions went down under Labour.

    Over 10.7 million people have been automatically enrolled into a pension by more than 2 million employers in every sector of the economy, seeing an additional £33 billion saved into workplace pensions each year compared with 2012. Automatic enrolment has helped many previously under-represented groups to begin pension savings, such as low earners, young people and women.

    Margaret Greenwood

    The Minister is being generous in giving way. It is good to see her being so keen on auto-enrolment. Will she be clear with the House that that policy was designed by the Labour party?

    Laura Trott

    But it was not implemented under the Labour Government.

    In 2012, 40% of eligible women working in the private sector participated in a workplace pension. As of 2021, that had increased to 87%—higher than for eligible men.

    Paula Barker

    Will the Minister give way?

    Laura Trott

    I will make a bit of progress; I have been quite generous on interventions.

    We know that the coming months will be tough for everyone, but especially for pensioners. I thank all hon. Members who have raised cases on behalf of their constituents. The Government fully understand the difficulties that pensioners will face this winter and will stand by those in the most need. That is why the Government have made substantial support available for pensioners struggling with the cost of living this winter. As my hon. Friends the Members for Wantage (David Johnston) and for Gloucester (Richard Graham) pointed out, we have not heard much from the Labour Front-Bench team today about what their plan would be for this winter.

    We have a plan that includes the £650 cost of living payment for those on pension credit to help with the rising cost of living. There is a £400 reduction on energy bills for all domestic electricity customers over the coming months and the £150 council tax rebate received by 85% of all UK households. Those on state pension will also receive an increased £500 winter fuel payment if they are under 80 or a £600 winter fuel payment if they are 80 or over. In total, that will mean that all pensioners receiving the state pension could receive up to £850 of additional support in the coming months and that pensioners on the lowest income who are claiming means-tested benefits will receive up to £1,500.

    Alan Brown

    Will the Minister give way?

    Laura Trott

    I will make a bit of progress and then come back to the hon. Gentleman.

    Pension credit was raised by a number of Members, including the hon. Member for Kilmarnock and Loudoun (Alan Brown), my hon. Friend the Member for Torbay, the right hon. Member for East Ham (Sir Stephen Timms), the hon. Member for Birmingham, Erdington (Mrs Hamilton), my hon. Friend the Member for Rother Valley and the hon. Members for Arfon (Hywel Williams) and for Wirral West (Margaret Greenwood). My predecessor—the Minister for Employment, my hon. Friend the Member for Hexham (Guy Opperman)—put in a huge amount of work to increase awareness of pension credit. We have seen a significant increase in the number of claims, peaking at a 275% increase year on year during pension credit awareness week in June. We know, however, that only seven out of 10 people who are eligible to claim it do so. That means that £3,300 of additional support is not being claimed by around 850,000 households. Clearly, it would make a significant difference if even some of that money—totalling £1.7 billion—made its way into the pockets of the poorest pensioners.

    The benefit of pension credit is that, as many Members have mentioned, it passports to an array of additional support, even when a person’s entitlement is very small. A pension credit recipient will receive a TV licence if they are over the age of 75 and get access to housing benefit and council tax support. The second half of the Government’s cost of living support—worth £324—will also be paid to all pension credit recipients. However, time is running out for those who have not yet claimed pension credit. The crucial date is 18 December. If someone claims pension credit by then and is eligible for the maximum three-month backdating, they will receive £324 of support to which they are entitled. It is therefore essential that all of us here urge our constituents to visit the pension credit page of gov.uk or to call the number listed to check eligibility of claim.

    On automatic enrolment, the right hon. Member for East Ham and my hon. Friend the Member for Torbay raised an interesting idea. From the information that I have, the Government do not have the data to be able to do it, but I will definitely explore further the point about local government and what more we can do with data.

    Alan Brown

    The Minister spoke about the extra support for pensioners—I think she said it was £850. Does she realise that that does not even cover the increase in the average energy bill, which has gone up from £1,100 to £2,500? More importantly, what does she think energy bills will be when the Government’s support ends come April?

    Laura Trott

    That does not include the energy price guarantee.

    As the Secretary of State set out to the House and as I said at the start of my speech, we cannot pre-empt the fiscal statement, but it is the Conservatives who have increased the state pension, it was the Conservatives who introduced automatic enrolment and it is the Conservatives who have reduced absolute pensioner poverty. This Government have always protected and will always protect the most vulnerable: that has been our track record since 2010, and that is what we will continue to do.

  • Matt Rodda – 2022 Speech on the State Pension Triple Lock

    Matt Rodda – 2022 Speech on the State Pension Triple Lock

    The speech made by Matt Rodda, the Labour MP for Reading East, in the House of Commons on 8 November 2022.

    I am pleased to close this important debate for the Opposition. As my right hon. Friend the Member for Leicester South (Jonathan Ashworth) said, it is about a simple and very important question: will the Government honour their manifesto pledge to millions of pensioners—13 million, many of whom have no income other than the state pension? As we have heard, the Government failed to raise the state pension in line with the triple lock last year and, to make matters worse, pensioners face in effect a £900 cut to their income if the triple lock is ignored this year.

    The state pension matters enormously and, so far, the Government have failed to give pensioners the reassurance that they deserve. As my right hon. Friend said, this should not be a controversial question; it should simply be something that the whole House can agree with, yet that request for simplicity, clarity and reassurance at a difficult time has been met with a lack of understanding. I hope that the Minister in responding will think again, treat pensioners with more respect and reassure them that the Government will stick with the triple lock. The uncertainty of the last few weeks has put pensioners under terrible stress. That should never have happened. The Government should now reassure pensioners. As food and fuel bills soar, the very least that Ministers can do is give the simple answer that they will keep the triple lock in this difficult situation.

    The debate has been an important opportunity for Members from across the House to remind Ministers of their duty to pensioners. Powerful arguments have been made for openness and clarity. We have heard that, at a very difficult time, pensioners and others on fixed incomes are under real pressure. The hon. Member for Kilmarnock and Loudoun (Alan Brown) reminded the House that pensioners face a desperate situation with bills rising and called for clarity. The hon. Member for Torbay (Kevin Foster), who is in his place, stressed his support for the triple lock and the importance of the state pension to many of his constituents. He also called on the Government to do much more to encourage pensioners to claim pension credit.

    The Chair of the Select Committee, my right hon. Friend the Member for East Ham (Sir Stephen Timms), made some excellent points, including that the Government, sadly, made a series of serious blunders in September. There has already been a big fall in the value of state pensions and the Government gave an assurance that pensions would be uprated. That was a manifesto commitment. He also gave us historical context, going back as far as the 1970s. Pensions have been uprated over a long period. Further, he went on to make the telling point that there is a social contract between people in work, the Government and pensioners.

    Other Members made excellent points. The hon. Member for South West Hertfordshire (Mr Mohindra) called for the triple lock to be retained. My hon. Friend the Member for Liverpool, Wavertree (Paula Barker) made a powerful speech in which she talked about the importance of protecting the most vulnerable and the Government’s duty to do that on behalf of society as a whole.

    There was a huge number of other contributions, which I cannot refer to in great detail. However, in summary, my hon. Friend the Member for Birmingham, Erdington (Mrs Hamilton) made an excellent speech, the hon. Member for Rother Valley (Alexander Stafford) spoke, and my hon. Friend the Member for Wakefield (Simon Lightwood) also spoke powerfully. The hon. Members for South Cambridgeshire (Anthony Browne), for Wantage (David Johnston), for Guildford (Angela Richardson), for Broadland (Jerome Mayhew), for North East Fife (Wendy Chamberlain) and for Heywood and Middleton (Chris Clarkson) spoke, as did my hon. Friends the Members for Easington (Grahame Morris), for Stockton North (Alex Cunningham) for Gower (Tonia Antoniazzi) and a number of others.

    My hon. Friend the Member for Barnsley East (Stephanie Peacock) made a fascinating and important point about the miners’ pension fund and the need for the Government not to take money out of it. The hon. Member for Gloucester (Richard Graham) spoke, as did my hon. Friend the Member for Newport West (Ruth Jones). The hon. Member for Arfon (Hywel Williams) made an important point about ASW, the issues with the Pension Protection Fund and those pension funds that got into difficulty before the PPF was set up. My hon. Friend the Member for Birmingham, Hall Green (Tahir Ali) made some powerful points as well, as did my hon. Friend the Member for Wirral West (Margaret Greenwood), who pointed out the pressure on pensioners from the cost of living crisis.

    My hon. Friend the Member for Blackburn (Kate Hollern) made some powerful points, as did my hon. Friend the Member for Warrington North (Charlotte Nichols), who talked about pensioner poverty rising, affecting half a million people. Finally, my hon. Friend the Member for Enfield North (Feryal Clark) spoke eloquently about the need for security at this time.

    Time is pressing. Today’s debate has been full and frank, and I hope Ministers will now respond with the honesty and transparency that pensioners deserve. As my hon. Friends and Members from across the House have said, this is a very important issue. The Government made a manifesto pledge and, last year, Ministers broke that pledge. Pensioners across the country are now facing unprecedented levels of inflation, particularly in food and fuel. Given that, it is vital that Ministers keep the triple lock and that they reassure pensioners of their intentions before the financial statement at the end of this month. Quite simply, pensioners have waited for too long, suffered too much uncertainty and put up with far too much stress for the Government to do anything less.

    It is, as hon. Members have mentioned, the first duty of Government to protect the most vulnerable. I hope the Minister will now offer clarity and reassurance for millions of people across the country.

  • Feryal Clark – 2022 Speech on the State Pension Triple Lock

    Feryal Clark – 2022 Speech on the State Pension Triple Lock

    The speech made by Feryal Clark, the Labour MP for Enfield North, in the House of Commons on 8 November 2022.

    It is a pleasure to follow my hon. Friend the Member for Blackburn (Kate Hollern). My constituents of Enfield North simply cannot afford, and do not deserve, to pay the price for this Government’s mistakes. The Tories have crashed the economy, and now pensioners could be paying the price. As Members across the House have said, people who have worked hard their entire lives rightly expect security in retirement, and the only reason that the Government are considering not protecting the triple lock is due to the mess they have pushed our economy into.

    The economic crisis created in Downing Street means that, in addition to the triple lock, every pledge made in the summer leadership contest is now under review. In my constituency, abandoning the 2019 Conservative manifesto commitment to the triple lock on state pensions for a second year in a row could leave almost 13,000 pensioners £900 worse off on average. The past 12 years of Tory mismanagement have left more and more of my constituents in poverty. Over the past decade, pensioner poverty has risen by almost half a million people. Since 2015, Enfield has risen from being the 12th to the 9th most deprived London borough, and since 2021, homelessness has risen by 250%. One in three workers in Enfield is paid below the London living wage, and one in five workers is low paid. Now, the Government are considering enforcing an average cut of £408 next year on pensioners in Enfield North, if the triple lock is broken again when pensions are uprated in April.

    How can pensioners in Enfield North and around the country ever trust a word the Conservatives say when the Prime Minister just weeks ago committed to the triple lock? When the then Chancellor suspended the triple lock last year, he promised to reinstate it the following year. He now refuses to give certainty to pensioners, leaving them wondering whether they will be betrayed yet again. However, trust is not the issue here—we all know we cannot trust this Government. They tell us that they are doing something one day, and the next day it is gone. Pensioners in Enfield North tell me that they are already struggling with soaring food and petrol costs. Pensioners are already staying on the bus all day just to keep warm, and they are terrified of turning their heating on this winter, due to the costs that will incur.

    A 73-year-old constituent wrote to me this week, concerned about how they will manage their Raynaud’s disease this winter, after receiving a large bill for their consumption and the rocketing cost of living. Pensioners should not now pay the price for Tory mismanagement of the economy. The Government must commit to keeping the triple lock, and not keep my constituents, and pensioners across the country, waiting. My constituents deserve not just to survive this winter, but to thrive, and that is why I will be backing the motion today.

  • Kate Hollern – 2022 Speech on the State Pension Triple Lock

    Kate Hollern – 2022 Speech on the State Pension Triple Lock

    The speech made by Kate Hollern, the Labour MP for Blackburn, in the House of Commons on 8 November 2022.

    A number of Conservative Members have asked why we are having this debate today, and given the events over the last few weeks, I agree we should ask why we are having it. It is because only a few weeks ago the Prime Minister said he was “totally committed” to protecting the triple lock for pensioners. Subsequently, we have had Ministers refusing to answer direct questions: “Will you protect the triple lock?”—“Well, it’s under review.”

    As I say, only weeks ago the Prime Minister said he was “totally committed” to the triple lock, so I suspect another reason we are having this debate today is that the beauty contest in the summer, with very bold statements, has left a number of areas now under review, and that does not give us any confidence at all. The Government took a huge gamble in September and made a complete mess of it, and that is why we are here today. Unfortunately, there is a chance that pensioners and less well-off people will pay the heavy price for the mistakes that were made.

    In April, the state pension rose by 3.1%; it should have been by 8.3%. A number of Conservative Members have spoken about the party that protects the triple lock, but it was broken last year and it is in real danger of being broken this year. Last year, that left pensioners £487 worse off. This year, if the same applies, that will be another £480. We have heard Conservative Members talk about covid, and I accept that the Government stepped up and delivered support for many across this country. We have heard about the war in Ukraine, which is a terrible situation. Putin’s war is absolutely terrible. However, these facts were of course known before the Prime Minister gave that total commitment to the triple lock, so what happened in that period of time?

    In Blackburn, 13,694 pensioners will be left £900 worse off, right in the middle of a cost of living crisis. We know that pensioners are particularly vulnerable in the energy crisis. What is the sense of giving support for pensioners to brave the energy crisis—only partial support, because they will still pay £1,000 more than they would have done—and then to take it back with the other hand?

    Pensioner poverty has been on the rise since 2013, despite the broad statements from Conservative Members. The facts speak for themselves, and this information can be checked. More than half a million pensioners across this country are living in poverty, and we should hang our heads in shame at that, given the wealth this country actually has. The triple lock has been so important in holding back those numbers, and not only do we not want them to increase, we want them to be drastically reduced. These people have worked all their lives and deserve better. They have been penalised for mistakes made by members of the Government.

    Is the Minister concerned about breaking the triple lock? I would like an answer to that. What assessment has he made, should he break that promise, of the potential for pensioners dying in poverty? How many Conservative Members agree with what the former Chair of the Conservative party said, which is that people should work more hours and go for better jobs? Tell that to pensioners. The Government made this promise for good reason, and Conservative Members stood on that promise to ensure that older people have the security and dignity they deserve. What has changed? Does the Minister still believe that voters deserve security, dignity and peace of mind in their old age? Will he accept that a second year cut or change to the triple lock is not acceptable?