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Category: Pensions

  • Paula Barker – 2022 Speech on the State Pension Triple Lock

    Paula Barker – 2022 Speech on the State Pension Triple Lock

    The speech made by Paula Barker, the Labour MP for Liverpool Wavertree, in the House of Commons on 8 November 2022.

    The Prime Minister recently appeared on the front page of The Times beneath the headline “State can’t fix all your problems”. While that may be true in the absolute sense, I think that the British people are right in making two basic assumptions. First, they rightly assume that the state will not make life harder, and secondly, given that the very essence of politics is priorities, they rightly expect their welfare, financial security and basic dignity to be the prime concerns that govern our actions in this place and the Government’s actions across Whitehall Departments. On both counts this Government have failed miserably, and have done so for 12 long years. In response to today’s motion, they have a golden opportunity to be unequivocal in stating that the triple lock on pensions is here to stay and will be protected.

    Margaret Ferrier (Rutherglen and Hamilton West) (Ind)

    I have been inundated with emails from pensioners in my constituency expressing a mixture of anger, fear and despair at the removal of the triple lock. A 70-year-old woman has described sitting in her living room with only candles for heat because she cannot afford to pay her energy bills. That is unthinkable. Does the hon. Member agree that the Government must consider the full impact of removing the triple lock on our most vulnerable?

    Paula Barker

    I entirely concur with what the hon. Lady has said. My inbox, like hers, is full of emails giving examples similar to that of her 70-year-old constituent, from people who are choosing between heating and eating.

    Why is it so important for the triple lock to be protected? The answer is quite simple. Our elderly people are suffering under this cost of living crisis, and have been suffering under Tory austerity for much longer. Pensioner poverty has been on the increase since the first half of the last decade: this is not something new. It is now widely reported that the number of pensioners living in poverty has topped the 2 million mark, including an extra 200,000 more poor pensioners in 2021 alone, according to the Centre for Ageing Better. That is a figure that should bear the hallmark of deep shame for any Government, and not least for a Prime Minister who was in No. 11 while the problem was becoming worse. Pensioners are falling into debt for the first time in their lives, with all the anxiety that that brings in later life.

    Anthony Browne

    Is the hon. Member aware of a report on the triple lock that I mentioned earlier, produced by the House of Commons Library? It shows that as a proportion of average earnings, the basic state pension is now higher than it was at any time under the last Labour Government, and that is a result of Conservative policy.

    Paula Barker

    I refer the hon. Member to the response from my right hon. Friend the Member for Leicester South (Jonathan Ashworth) to that very point, which I think was more than eloquent.

    It is good, decent, working-class pensioners who are suffering, along with many more who may be asset-rich yet cash-poor. People who have worked for many decades are being denied the basic dignity of living free from fear. In the north-west region alone, nearly half a million pensioners are living in some form of poverty, including too many in my own constituency. Inflation is due to start falling; the Government know that. We already know that it would not be right to scrap the triple lock, nor would it make for sound economics—especially at this moment—to hit pensioners in the pocket with a real-terms cut in their incomes. People need support now, rather than the drawbridge being pulled up. The shift of wealth from working and middle-class households upwards has never been as great, and those inequalities are borne out in the way we treat our older people.

    When Ministers hold great offices of state and lecture the British people about tough choices while dishing out billions in failed public sector contracts to their friends, removing the cap on bankers’ bonuses and increasing the cost of mortgages to pay for unfunded tax cuts for the few, it is particularly galling that the Government cannot come out and unequivocally back our pensioners today. If they can prioritise all that in times like covid and during these economic headwinds, the very least they can do is walk through the Lobby with the Opposition today. The last thing that our pensioners need now is uncertainty, and I urge all right hon. and hon. Members to join us in the Lobby this afternoon.

  • Gagan Mohindra – 2022 Speech on the State Pension Triple Lock

    Gagan Mohindra – 2022 Speech on the State Pension Triple Lock

    The speech made by Gagan Mohindra, the Conservative MP for South West Hertfordshire, in the House of Commons on 8 November 2022.

    It is an honour to follow the right hon. Member for East Ham (Sir Stephen Timms). I was brought up in the area that he represents, and I have fond memories of his part of the world. Let me also welcome the Secretary of State to his place, and, indeed, welcome the whole new Front Bench.

    As we all know, our country finds itself in an incredibly difficult economic position, and I look forward to the Chancellor’s fiscal event next week. My hon. Friend the Member for Guildford (Angela Richardson), in an intervention earlier, made an important point about why the slight delay was required, namely to ensure that we have the OBR figures that Members in all parts of the House have requested during previous debates on our finances.

    My party has a strong record of supporting older people, and I hope that that record will continue: we need it to do so now more than ever. One of the highlights of our Government over the last 12 years has been auto-enrolment for employees in small companies, which means that 88% of eligible employees now have savings pots that they would not have necessarily been encouraged to have before. During the pandemic, my right hon. Friend the Member for Richmond (Yorks)—now the Prime Minister—took the necessary steps to keep our economy afloat, but those decisions came at a cost. In the wake of that spending, coupled with the awful Putin’s illegal war in Ukraine, we now face a cost of living crisis. Sacrifices must be made. The Chancellor has some extremely difficult decisions to make, the results of which we will hear in nine days.

    Given the cost of living crisis, and notably the hike in energy bills, it is more important than ever to protect the most vulnerable members of our society, and I am grateful to the Government for the work they are doing to support pensioners at this difficult time. As we enter the colder months, I am particularly proud of their commitment to help keep energy bills as low as possible and the additional support that is specific to pensioners, including the £300 winter fuel payment.

    Like many of my colleagues, I have received countless items of correspondence from constituents pleading for the triple lock to be retained, and I trust that that decision will be made in nine days’ time. I hope that the Chancellor will continue the good work that he is already doing, and I look forward to our honouring the commitments that we have historically made in our manifesto. I agreed with the right hon. Member for East Ham when he said that when people have done the correct thing before, we should ensure that we protect them as much as possible. We should always seek to incentivise good and indeed best behaviour, and I hope that next week’s statement will demonstrate that that is being done.

  • Stephen Timms – 2022 Speech on the State Pension Triple Lock

    Stephen Timms – 2022 Speech on the State Pension Triple Lock

    The speech made by Sir Stephen Timms, the Labour MP for East Ham, in the House of Commons on 8 November 2022.

    I am pleased to follow the hon. Member for Torbay (Kevin Foster). I thank him for the help he gave me when he was a Minister, and I agree with what he says about pension credit. I think the key is probably for local government to work more closely with central Government, because local councils have the pensioner income data to work out whether pensioners are entitled to pension credit. If we could improve co-operation, judgments could be made much more automatically.

    I agree with my right hon. Friend the Member for Leicester South (Jonathan Ashworth) that this debate is happening only because of the catastrophic Government blunders in September. Before then, there was no issue; there was a very clear commitment from the then Chancellor, who is now Prime Minister, that the triple lock would be honoured. Unfortunately, what happened in September has created the very difficult situation that the Secretary of State rightly described.

    It is important to remember that there has already been a big real-terms fall this year in the value not only of the state pension, but of working-age benefits, which were increased by 3.1% in April when inflation was at nearly 10%. That was justified at the time on the basis that that is how the usual uprating formula works: pensions and benefits are uprated in April by the rate of inflation in the previous September. The then Chancellor acknowledged that the effects would need to be addressed next April, so he gave an assurance in May that the same formula would be applied again for next April’s uprating. We now know that pensions and benefits will be uprated by 10.1%, which was the rate of inflation in September.

    On pensions, as we have been reminded, there is also a Conservative manifesto commitment. As I said in my intervention on the Secretary of State, if the promise on pensions is not kept next April and pensions are instead uprated by less than the rate of inflation, it will be almost without precedent.

    Since 1977, there has been a statutory obligation, defined in a variety of ways, to uprate in line with inflation. It has been honoured every year since then except 1986, when the rate of inflation was 1.1% and the decision was made to uprate the state pension by 1%—0.1 percentage points less. Apart from that, there has been uprating by at least the rate of inflation every single year. To depart from that approach now, on the scale that has apparently been considered recently, would be absolutely without precedent in 50 years. In November 1980, inflation was at 16.5%; the state pension was uprated by 16.5%. In April 1991, inflation was at 10.9%; the state pension was uprated by 10.9%.

    It is clear why there has been that commitment all the way through: because people who have given a lifetime of work and have retired from working have already made their contribution, so there is nothing that they can do to make up the difference if the value of their state pension falls. I think we all recognise that there is an obligation on the state—a social contract—to maintain the value of the state pension. That contract should not be breached as a result of the Government making catastrophic errors in their management of the economy in September.

    The considerations with working-age benefits are different. They have also been sharply reduced in real terms this year, but over the years they have frequently not been uprated in line with inflation. As a cumulative result, according to the Library, they are now at their lowest level in real terms in the 40 years since 1982-83. Trussell Trust food banks gave out 2.1 million emergency food parcels in 2021-22; they gave out 60,000 in 2010-11. They have reported that demand in August and September this year was 46% higher than last year. Why is the economy failing so many people? How many more are the Government willing to push into destitution?

    The annual family resources survey has started to collect data on food insecurity to get a handle on what is going on with food banks. We now have results for the first two years, 2019-20 and 2020-21; the Secretary of State and I had an exchange about them at Work and Pensions questions recently. Food insecurity among universal credit claimants fell from 43% in 2019-20 to 27% in 2020-21, reflecting the £20 universal credit uplift introduced in March 2020, just between those two financial years. Now that that has been taken away, food insecurity will have shot up again. We will have to raise the level of universal credit to address the current mass dependence on charitable food banks.

    Tahir Ali (Birmingham, Hall Green) (Lab)

    Does my right hon. Friend agree that it is outrageous that we now have more branches of food banks than of McDonald’s?

    Sir Stephen Timms

    It is a great shame on us all that so many people are dependent on charitable food banks, and the numbers are still rising. We certainly must not fail to uprate social security, universal credit and pensions in line with inflation in April, because otherwise there will be yet another big surge in demand. That is why it is so important for the Prime Minister to honour the promise that he made as Chancellor.

    There is one more uprating we need that cannot be ignored. The benefit cap was introduced in 2012. At the time, it was based on the level of median earnings. It has never been uprated. It has changed only once: in 2016, it was reduced. Its value has lost any connection with the earnings level to which it was supposed to be linked when it was introduced. If it is not uprated next April, whatever level of uprating is decided on, thousands more families will crash into the cap for the first time and many will have to start going to a food bank to keep themselves alive.

    It is time to recognise that mass food bank dependence is not inevitable. We can turn back from this. We can do much better than this. In the decisions announced next week, we must—at the very least—not make things worse.

  • Kevin Foster – 2022 Speech on the State Pension Triple Lock

    Kevin Foster – 2022 Speech on the State Pension Triple Lock

    The speech made by Kevin Foster, the Conservative MP for Torbay, in the House of Commons on 8 November 2022.

    This is my first Opposition day speech in a while and I welcome the opportunity to speak on an issue that is so important for Torbay. It will perhaps be unlike some of my previous speeches in that, first, I am not following the hon. Member for Strangford (Jim Shannon), and secondly—I see the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Mid Sussex (Mims Davies), on the Front Bench—this will not be quite as thorough an analysis of the issue as some have occasionally enjoyed from me on a Friday. It is a particular pleasure to see the Secretary of State on the Front Bench; I know that he will be a doughty champion for our beautiful county and its people, and that he will ensure that the most vulnerable are protected.

    Turning to the motion, it is fascinating to see the huge enthusiasm from Labour Members for our 2019 manifesto. I cannot remember the same enthusiasm three years ago, when they were not that enthusiastic to have a general election in the first place. This measure was a key part of the pledges that we made. We have heard some knockabout today, but we have to remind ourselves that the pension triple lock was introduced in 2010 and not before. For the 13 years prior to that, pensions had been linked to the rise in inflation and in prices, rather than the position adopted under the triple lock.

    We know why we introduced the triple lock. As has been referred to, the inspiration came from the 75p increase some years earlier. It aimed to give a clear sense of the direction in which state pensions would go. It would either be in line with prices, as was done previously, or earnings—by reinstating a link to those—or it would be a minimum of 2.5%, providing clarity for those looking ahead to their retirement. As that was done in a simple way, it meant that pensions would be protected against price shocks and that they would keep pace with earnings as they went up. Since 2010, the level of the basic state pension has gone up by £2,300.

    The measure also has to be seen in the light of other changes, such as the end of opting out and the introduction of the new state pension, which is clearer about what people will get when they retire. As has been touched on, it allows more years in which, for example, someone is bringing up children to count towards the state pension. The changes were about making what people have clearer and simpler so that they can plan in their retirement.

    That was very welcome in Torbay. Those commitments were probably a reason why a seat that was held by another party for 18 years is solidly Conservative again. Most pensioners and those who vote in Torbay are realistic people. They recognise the impact of the pandemic last year and the odd outcomes it produced for earnings—for example, in the previous year when earnings went down, and last year when earnings jumped up. The double lock was therefore introduced for one year last year, using the CPI rate for the increase in the state pension.

    Some people say, “If inflation was good enough to be the rate of increase last year, it should be good enough this year, not least given the impacts we are seeing on prices.” I accept that there is a need for balance and the Secretary of State’s point that he cannot pre-empt what will be said next week. We cannot have a running commentary in the run-up to a fiscal event, with a different Department every day ruling something in or out, or putting something in or out. I take his point, but those of us who are not on the Front Bench can make our comments more freely about the outcome that we would like next week.

    On the position in Torbay, the Secretary of State was right to highlight other benefits and support that is being offered to pensioners. The second cost of living payments are starting today, not just for pensioners; I think 16,300 families in Torbay will start to get that payment, taking the total up to £650. Members have rightly touched on the energy price guarantee, which helps to cap the price being paid for energy. On top of that, there were such things as the council tax rebate earlier this year. Councils have discretionary funding to apply that to those in band E and above when they have particular pressures. Therefore, when we discuss the triple lock and the state pension, we have to consider some of the other support. Of course, I have not mentioned the £400 per household energy bill discount from which pensioners will innately benefit.

    It is interesting to hear people making comparisons with other countries and talking about wanting to emulate some of them. I would be interested to hear whether SNP Members would like to emulate the situation in many European countries whereby, although the position on the pension might be different, pensioners have to pay certain medical charges and there are social care levies applied to pension income and taxes that would not be paid here. Certainly, many services that are provided free at the point of use and point of need under the NHS are charged for in other jurisdictions. If we make comparisons and say we want to emulate other countries, we need to be conscious of what we are arguing we should emulate. We can do more to help people to get pension credit.

    Alan Brown

    I used a whole suite of comparators to make my point, and the key thing is that the UK has the 12th highest poverty rate out of 35 countries. That is shameful, is it not?

    Kevin Foster

    The hon. Gentleman made the point in his speech that he was looking to emulate the packages given to pensioners in other countries. If he wants to emulate them, he should look at what those packages include, such as charges for medical services and tax rates that we do not charge here. The council tax rebate of £150 did a lot for my constituents. As for whether that applies in Scotland, that is a devolved matter.

    On the triple lock, the rise in prices has hit many people. Many people over the state retirement age are unlikely to have the type of options that others may have to meet some of the rising costs. It is therefore vital that we look to honour our pledge to them. I accept that that pledge cannot be made immediately today, but I look forward to hearing further clarity on that next week.

    About £4.7 million of pension credit went unclaimed in Torbay last year. That could have gone to some of the poorest households in the bay. When the Minister sums up, I would be interested to hear about the Government’s thoughts on that issue, particularly when so much data is available. The era of people filling in paper forms or going to a post office with a pension book is long gone. The vast majority of that is done through electronic means. This is about what could be done to fill the gap so that more people can get the support to which they are entitled, not least because once someone is assessed as being eligible for pension credit, it opens the door to a range of other benefits and support.

    Anne McLaughlin

    Is the hon. Gentleman aware of the work done by Loughborough University that was commissioned by Independent Age? It stated that if everybody who was entitled to pension credit claimed it, that would cost an extra £2 billion. I understand that that is a lot of money, but it also stated that the extra cost to the NHS and social care now is £4 billion, so if we could find a way of making sure that everybody got it, we would put more money into the Treasury’s coffers.

    Kevin Foster

    I do not recognise the statistics from that report, but I welcome the overall thrust of that argument. When we as a Parliament have decided that we want people on a low income to receive a particular type of support, we want them to be able to get that.

    I was interested to hear the suggestion that the hon. Member for Glasgow East (David Linden) made about working with banks. An institution that might be slightly easier to work with is post offices, where many people on lower incomes go to collect their pension and do other banking. The Secretary of State, who represents the rural constituency of Central Devon, will be aware of people going to post offices to withdraw the exact cash amounts that they need. Cashpoints mostly operate with multiples of £10 or £20, which may be difficult for someone who has to budget tightly for their bills and spending, whereas at a post office counter they can withdraw amounts literally to the penny. That allows very precise budgeting for those who need it.

    This is a welcome debate. I must say that I am interested to hear Opposition Members’ comments on who they expect to oppose the motion. We may hear one of those suspicious shouts of “No!” that are not followed by anyone showing up to vote in the No Lobby.

    Pensioners in Torbay put their faith in this Government back in 2019. I believe that they put their faith in a manifesto that offered them a positive choice, and I continue to believe that that is the right basis for us to move forward. I hope to hear next week that we will honour that commitment to them.

  • Alan Brown – 2022 Speech on the State Pension Triple Lock

    Alan Brown – 2022 Speech on the State Pension Triple Lock

    The speech made by Alan Brown, the SNP spokesperson at Westminster on Work and Pensions, in the House of Commons on 8 November 2022.

    I will pick up some of the Secretary of State’s comments. He started off by trying to claim that there was not much illumination from the shadow Secretary of State’s speech, but we got absolutely no illumination from his speech, either. There is still no clarity on what the Government are going to do. As I said, it is just not adequate to say, “It’s irresponsible to come forward and provide clarity on what is going to happen on the triple lock.” The Secretary of State kept talking about being honest with the public, so he should be honest and tell us what will happen with the triple lock.

    The Secretary of State attacked Labour with the old trope about Labour doing borrowing. I am sure that, not that long ago, he was backing the mini-Budget that was all about borrowing to give tax cuts to the rich. That was economic madness. Does he want to come back to the Dispatch Box and apologise for that?

    I am happy to support the motion. It is simple and, as it references the Tory manifesto, it should win the entire House’s support—hopefully without the chaos that we witnessed in the Opposition day debate about fracking. I note that that was also the day when the former Prime Minister was questioned at the Dispatch Box by my right hon. Friend the Member for Ross, Skye and Lochaber (Ian Blackford); she did her 55th U-turn and said that she would protect the triple lock, so it should be easy for the Government to further confirm that, rather than holding on to the line about waiting until next week.

    Last year’s breaking of the triple lock cost each pensioner £520 on average during the cost of living crisis, and the Red Book shows that it will take £30 billion in total from pensioners by 2026-27. At least uprating the state pension this year in line with September’s 10% inflation rate would give certainty of income to its recipients.

    However, we should also look at the reality. If the triple lock is reinstated and pensions are uplifted, we are actually almost celebrating not cutting pensions in real terms in the Budget. That is how desperate things are. If that is the measure of compassionate conservativism—not making further cuts to pensions—then it shows the reality of where we are with this Government.

    In terms of inflation in the here and now, we know from the Office for National Statistics that tea is up 46%, pasta is up 60% and bread is up 38%. The price of budget food in supermarkets is up an astonishing 17% in the year to September. On energy costs, the average bill, based on the previous cap, was £1,100 a year just a year and a half ago. Now, with the so-called energy guarantee, we are supposed to be pleased that bills are now, on average, £2,500 per year during the winter period.

    For the Energy Prices Act 2022, the Government’s own figures estimated that energy bills would go up on average to £4,400 without the support package. That is almost 50% of an average state pension. Given that it is perfectly obvious that pensioners are more likely to use more energy than an average household, it is not just the triple lock that needs to be reinstated; we need this Government to come forward with confirmation of what the future energy support package will be for those who need it. The Secretary of State talked about protecting the most vulnerable. Well, they need to know what is happening with energy going forward as well.

    In Scotland, average usage already means that bills are in the order of £3,300 per annum even with the current energy support package, so for people on fixed incomes it really is unaffordable.

    Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)

    I am grateful to my hon. Friend, who is telling it like it is for people in their homes just now. He is talking about energy costs. That does not include those people, including pensioners, who live off the gas grid and are therefore paying far, far more than those he is quoting.

    Alan Brown

    I agree wholeheartedly with my hon. Friend. The £100 payment to those off gas grid is almost an insult, because it does nothing to help them fill their oil tanks.

    In a similar vein on inflation, petrol prices are still massively up compared with recent years. I drive an Insignia, which is not a huge car, but last week it still cost me over £100 to fill the petrol tank. That is clearly unaffordable for those on a fixed income, and it would account for 55% of one week’s full pension.

    When we look at the UK in the round, we see that it is one of the most unequal countries in the world. Unfortunately, that inequality continues during retirement. The Gini coefficient shows that the UK is 14th out of 14 north-west European countries. It is the same for the S80:S20 quintile share ratio; when we compare the ratio of the poorest to the richest, the UK has by far the worst ratio and is again 14th out of 14. Scandinavian countries—all small, independent countries—lead the way on these measures.

    Poorer pay and lower incomes for those struggling also means that later on in life they are less likely to have private pensions and so are reliant on the UK state pension. Again, the UK state pension fails in comparison with those of other countries. When we look at the proportion of earnings derived from state pensions, the UK sits 30th out of 37 OECD countries. I understand that there is an argument that it can be good to move away from dependence on state pensions, but the UK is clearly among outlier countries near the bottom of the pile, and way below the OECD average. Many people are using occupational pensions and capital as sources of income, but that increases inequality in pension age for those without access to such means.

    If we look at the UK’s flat pension rate and compare it with other countries that pay a flat rate—Ireland, Denmark and the Netherlands—we see that the UK rate is again lower and fails in comparison. If we look at state pension expenditure compared to a country’s GDP, we see that the UK is again way below the OECD average and is ranked 28th out of 38 countries. Ministers might say that those measures can be somewhat subjective, but the UK trails in each one, so there is a common theme. One other measure is the replacement rate that compares all sources of pension income versus previous earnings. On this measure, the UK, with an average over 10% less than those of the EU27 and the OECD, is ranked 19th out of 37, so still in the bottom half of the table.

    As I have stated, this means that inequality in the UK continues into retirement and the UK has the 12th highest pensioner poverty rate out of 35 countries measured by the OECD. What that means, if we turn that around, is that in terms of disposable income to support a standard of living for those aged 66-plus, the UK is ranked 24th out of 35 countries, while Iceland, Denmark and Norway occupy the top spots. Ireland is in eighth place. And those statistics are based on comparisons before the UK broke the triple lock and the link to earnings last year. It is absolutely critical that the triple lock is restored. Independent Age emphasises that:

    “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”.

    One additional income support measure is pension credit, but we know that take-up levels are still too low—the Secretary of State acknowledged that. Previous research commissioned by Independent Age estimated that full take-up of pension credit could lift 440,000 older people out of poverty. So when will that be tackled by the Government? The unclaimed £4 billion in pension credit could make the lives of hundreds of thousands of pensioners more bearable. It is also money that would then be recirculated within local economies as it is spent on vital household needs.

    David Linden

    Does my hon. Friend think that banks have a role to play? Given that the vast majority of pensioners receive their pension payments from the Department for Work and Pensions into their bank accounts, banks have the ability to identify where payments are coming from and the amount. Does he agree that there is an opportunity for banks to play a role in promoting pension credit?

    Alan Brown

    That is a very good point. I agree with my hon. Friend that that is an ideal way of managing that. I urge the Secretary of State to take heed of that intervention and work with banks and other organisations to try to increase pension credit take-up.

    In terms of pension policies, of course I have to refer to the WASPI—Women Against State Pension Inequality Campaign—scandal and the fact that the Government are still not moving forward on fast and fair compensation, given that the Parliamentary and Health Service Ombudsman found there was maladministration. The PHSO made it clear that the Government do not have to wait for the end of its investigation to take action to remedy this injustice.

    There is also the frozen pensions scandal, whereby whether your pension gets uprated or not is arbitrary, depending on which country you reside in. It is also scandalous that the UK Government have yet again rejected offers from the Canadian Government to enter into reciprocal arrangements. I urge the Secretary of State to reconsider that and engage in meaningful talks with the Canadian Government.

    All those aspects show that the state pension in the UK is not the safety net we are told it is. It shows clearly that the Better Together mantra of staying in the UK to protect pensions in Scotland was a cruelly false premise. Indeed, with private pensions nearly collapsing after the Tory mini-Budget, that claim looks even more ridiculous. It also shows that when Gordon Brown, at a Better Together event, said:

    “Our UK welfare state offers better protection for pensioners, disabled and the unemployed”,

    he was, frankly, lying.

    Madam Deputy Speaker (Dame Eleanor Laing)

    Order. It would be better if the hon. Gentleman found other words—perhaps a little gentler—rather than those he has just used.

    Alan Brown

    I take your point, Madam Deputy Speaker, but of course I was not referring to any hon. Member in this place.

    Madam Deputy Speaker

    Order. I fully appreciate that and the hon. Gentleman is technically correct, but I take the view that anyone who has been a right hon. Member, and held a most senior position in this place, should be treated with respect even after they have left. A different form of words would therefore be appreciated.

    Alan Brown

    Thank you, Madam Deputy Speaker. I respectfully say that his comments were misleading because, as I have outlined, the UK pension is not as good as it is made out to be and is one of the poorest in north-west Europe.

    Moving on, it is little wonder that the Scottish Government have been publishing papers comparing the UK to comparator countries for an independent Scotland. Scotland has a lower pensioner poverty rate than the rest of the UK at present, but we want to do much better than that. We want to match or better the comparator countries, reduce inequality during working life, and allow a more dignified and enjoyable retirement for all. We no longer want to be left here hoping, yet again, that Westminster will make the right decisions on such measures as the triple lock. We want to do things for the betterment of the citizens of Scotland.

  • Mel Stride – 2022 Speech on the State Pension Triple Lock

    Mel Stride – 2022 Speech on the State Pension Triple Lock

    The speech made by Mel Stride, the Secretary of State for Work and Pensions, in the House of Commons on 8 November 2022.

    Can I open by saying that it is a pleasure to at last stand opposite the right hon. Member for Leicester South (Jonathan Ashworth) in debate at the Dispatch Box? We have heard a lot of sound and fury from the Opposition Benches, but not much illumination and light. Indeed, the entire speech was predicated on a perceived answer to the question that he has put in the motion—namely, that we will short-change pensioners in some way—and that is far from necessarily the outcome we will see.

    The right hon. Gentleman’s speech started pretty well—he read out the motion and so far so good—but it was on the intervention of my right hon. Friend the Member for South Holland and The Deepings (Sir John Hayes), who claimed him as a close friend, that he started to go down hill and lose his politics bearings. I should just correct my right hon. Friend, who I think was being over-harsh on Gordon Brown by suggesting that, in 1999, Labour put up pensions by 50p. It was, of course, 75p—a full 50% more than he suggested.

    Sir John Hayes

    I am immensely grateful to my right hon. Friend for correcting the record. I did say we were friends and I was trying to be generous to the right hon. Member for Leicester South, but adding the extra 25p would have come as cold comfort to the pensioners who suffered under Labour. We should remember that the triple lock was a Conservative policy, which is why we must stand by it.

    Mel Stride

    I thank my right hon. Friend, and given the impact his intervention had on a speech that deteriorated very rapidly thereafter, he will now be my secret weapon in every debate now; he will be there, poised.

    Ms Lyn Brown (West Ham) (Lab)

    I am actually quite offended by the idea that this is theatre and knockabout because my constituents do not see that way. Can I bring some facts to this debate? The Labour Government took 1 million pensioners out of poverty. This Government have put half a million into poverty. Does the Secretary of State not feel that this is just outrageous, and that he needs to make it clear today that the promises of his manifesto will be fulfilled?

    Mel Stride

    I will of course come on to the issue of the impact of the Government’s huge commitment to pensioners over the years on issues such as poverty that the hon. Lady has raised. However, may I begin by saying that I am slightly surprised the right hon. Member for Leicester South should have come forward with this motion at all? He was present at departmental questions just a few days ago, when the question about what the Government would do in respect of the triple lock, and indeed the uprating of benefits, was put on many occasions to me and my fellow Ministers, and we gave a very clear, rational and sound response. It is that a fiscal event will take place soon—on the 17th of this month—and, as he will know, it is completely out of order for Ministers under those circumstances to start giving a running commentary on what is expected to be included in that fiscal event. Indeed, in the event that he was in my position, stood up and pre-announced measures that were coming forward in the Budget, he would rightly be required to resign from his position. No doubt that is something that, in my case, would please him no end, but I am afraid I am not going to give him that pleasure.

    Angela Richardson (Guildford) (Con)

    On the autumn statement coming on 17 November, which is next week, it is accompanied by a full forecast from the Office for Budget Responsibility. Is that not the responsible time to talk about the uprating of pensions and benefits? It is irresponsible of the Opposition to bring this forward ahead of the full OBR forecast.

    Mel Stride

    My hon. Friend is entirely right. That is precisely the point I am making. It would be entirely irresponsible for any member of the Government to prejudge or give a running commentary on anything that may appear in that statement.

    Alan Brown

    Can the Secretary of State outline why it would be irresponsible to confirm that the Government are keeping a manifesto commitment and promise?

    Mel Stride

    As I have set out, we are facing what is being called a Budget. It is a major fiscal event and many decisions will be taken within it. It would not be right for a member of the Government at the Dispatch Box to prejudge what may be included in it.

    Sir Stephen Timms (East Ham) (Lab)

    I welcome the Secretary of State to his first Department for Work and Pensions debate. Surely he is not suggesting that the current Prime Minister was irresponsible when he said last May that the triple lock would be honoured for next April. Will he confirm that, if the triple lock is not honoured for next April, it will be almost without precedent, going back 50 years or more, for the state pension not to be uprated at least in line with inflation?

    Mel Stride

    I welcome the question from the Chair of the Work and Pensions Committee. As a former Pensions Minister, he will know that, in the situation we are in at the moment, right hard up against a major fiscal event that is about to set out major tax and spending decisions, it would simply not be right, as I have said on countless occasions, for any member of the Government to prejudge and pre-empt the measures that the Chancellor will be coming forward with.

    David Linden (Glasgow East) (SNP)

    The Secretary of State talks about prejudging, pre-empting and following due process, but he knows that, if the Department was intending to suspend the triple lock, his officials would already be preparing the relevant legislation, as was brought forward by then Pensions Minister, the hon. Member for Hexham (Guy Opperman), when the triple lock was last suspended. In the interests of being transparent and following process, can the Secretary of State see whether those officials have been instructed to draft that legislation?

    Mel Stride

    That is simply an ingenious way—I congratulate the hon. Member—of asking precisely the same question. I have noticed that Members do that in this House from time to time, sometimes quite effectively.

    The process is extremely clear. I have a duty under legislation to assess the triple lock and the uprating of benefits and, taking into account the September CPI figures and the average wage increases in the preceding period, and in conjunction with the Chancellor—because these decisions have a major impact on the Department’s annual managed expenditure—to come to a decision. That process is ongoing and will be concluded by the 17th, when the hon. Member will have the answers to all the questions he asks.

    Let me focus on part of the central charge from the shadow Secretary of State regarding what this Government have or have not done for pensioners over a long period. As has been pointed out by Conservative Members, the triple lock was brought in under a Conservative-led Government in 2011. As to what has happened to the pension in that intervening period, the basic state pension has increased by £2,300, outperforming inflation by £720. We spend £110 billion a year supporting pensioners through the pension and £134 billion if we take wider measures into account. That is more than 5% of the entire output of the economy dedicated to supporting our pensioners.

    Gary Sambrook

    Talking of wider measures, pension credit can be worth up to £3,300 for individual pensioners, and it can open the door to many other benefits such as free NHS dental treatment and other cost of living measures. There are 800,000 people in the UK, many of whom will be in Birmingham, Northfield, who could claim pension credit but do not. Will the Secretary of State take this opportunity to encourage as many people as possible to claim pension credit?

    Mel Stride

    That is a truly constructive intervention because, as my hon. Friend points out, not everybody who would be qualified for that benefit has applied. About 70% of those who we believe are eligible receive pension credit, but 30% do not. My hon. Friend the Minister for Employment did an extraordinarily good job in June in encouraging people to sign up to pension credit, through the campaign that the Department launched, and I believe there was an increase in take-up of 275% due to his efforts. My hon. Friend the Member for Birmingham, Northfield (Gary Sambrook) is right: this is important not just for the benefits that we think of, and the credit itself, worth £3,300, but in terms of recent measures that the Government have announced, the £650 of support, which is available to pensioners only if it is unlocked by access to pension credit. It is an important credit to apply for.

    Anne McLaughlin (Glasgow North East) (SNP)

    The £650 cost of living grant to those on pension credit is great, and would have been a great incentive to get that other 30% to 40% to sign up for pension credit. We know that some people feel that they should not do it, and we need to persuade them. Unfortunately, however, unless someone applied successfully by 19 August, they can no longer get that £650. My campaign to extend that deadline to 31 March has been running for a couple of months, and I have had some positive responses. Will the Minister consider meeting me to talk about the possibility of extending the deadline to the official end of winter, so that we can convince people to take it?

    Mel Stride

    I thank the hon. Lady for that intervention and I recognise the solid and important work that she has done in this area. I can correct her, and hopefully please her, by saying that the deadline is 18 December, because pensions credit can be applied for three months retrospectively, which would bring it into the reference period for the £650 payment.

    Anne McLaughlin

    The 19 December deadline only allows people to get £324. I will be getting my constituents to sign up for that on the basis of the £324, but I am asking whether somebody who applies until the end of March can get the whole amount of £650, which is a bigger incentive than £324.

    Mel Stride

    I thank the hon. Lady for that clarification and I accept the point she makes. I would be happy for the Minister for Pensions to meet her to discuss the issue she has raised.

    Richard Graham (Gloucester) (Con)

    The key point my right hon. Friend is stressing is that a huge amount has been done consistently by this Government to help pensioners since 2011—innovations that the Opposition opposed at the time or certainly did not come up with, including benefits for women who can claim pension years when they were bringing up children, and auto-enrolment with 20 million new people. I hope that the one-off payment my right hon. Friend just alluded to will be valid for a bit longer, and there is the increase of £3,200 per pensioner on the state pension alone. Does my right hon. Friend agree that today’s debate is largely designed for the Opposition, and about the shadow Minister who was behind the 1999 75p increase—[Interruption.]—trying to park his tanks—

    Mr Speaker

    Order. Mr Graham, when I stand up I expect you to sit down and not carry on your speech. Do we understand each other about the rules of this House?

    Richard Graham

    We do.

    Mr Speaker

    Right. So in future please sit down.

    Mel Stride

    Thank you, Mr Speaker. The points raised by my hon. Friend the Member for Gloucester (Richard Graham) are well made. This Government have done a huge amount over many years to do what we can.

    Ms Lyn Brown

    So why is poverty going up?

    Mel Stride

    The hon. Lady asks from a sedentary position why poverty is going up, and I will come to poverty in a moment. There is no doubt that my hon. Friend the Member for Gloucester is right: for a long time the Government have stood up for the interest of pensioners as one of our prime priorities, and we know why. Many pensioners are particularly vulnerable. When economic conditions are difficult—as they are at the moment—it is hard for them to adjust their economic circumstances, to re-engage with the workforce and so on, so it is important that we have that duty.

    I turn to poverty. Since 2009-10, 400,000 fewer pensioners are in absolute poverty—before or after housing costs—and the proportion of pensioners in material deprivation has fallen from 10% in 2009-10 to 6% in 2019-20. Over the much longer sweep since 1990, relative poverty has halved, but there is still more to be done.

    Alan Brown

    Does the Secretary of State accept that poverty analysis figures lag real time and that poverty figures are going up? We only have to look at how an estimated 6.7 million households are in fuel poverty. Will he remember that when he stands at the Dispatch Box and talks about figures coming down?

    Mel Stride

    Those figures are simple facts about what has happened to absolute poverty across the period that I quoted.

    I turn to an important issue: the economic circumstances in which the country finds itself.

    Margaret Greenwood (Wirral West) (Lab)

    Will the Secretary of State give way?

    Mel Stride

    In a moment. That is a difficult situation, largely visited upon us through a major pandemic that shut down a substantial proportion of the economy, followed by a war between Ukraine and Russia. That, of course, has had a huge impact in terms of inflation, the cost of energy and people’s bills. It is only right that we are honest with the public and honest in the House about the ramifications of that situation. On 17 November, we will see some difficult choices brought forward by the Chancellor of the Exchequer on both tax and spending. We have to understand why that is. They will be brought forward because the country must demonstrate that it will live within its means and act fiscally responsibly. As a consequence, we see bond yields and interest rates softening, which will be good for mortgage holders, good for businesses who are borrowing and good for the servicing costs of the Government and their national debt.

    Those hard choices must be made, but within them the Government have a core mission to look after the most vulnerable. Those who say that we do not do that are simply wrong. The evidence bears out my statement. The £650 cost of living payment that we have discussed is there for pensioners through pension credit and is there more widely for 8 million low-income households up and down the country. There is the £300 payment to all pensioner households. There is the £400 reduction in fuel bills, which comes through the bills themselves. There is a £150 reduction for those living in houses in council tax bands A to D—many of them will be pensioners—and a £150 payment to those who are disabled. That is on top of the household support fund administered by local authorities, who perhaps have a better grip of local need than those at the centre, which was recently expanded by £500 million to over £1 billion. Of course, there is also the energy price guarantee holding average fuel bills for the average family at £2,500, saving £700 across the winter. All those measures and more are clearly indicative that the Government care about those who have the least and are there to protect them at every turn.

    David Linden

    Going back to what the Secretary of State said earlier, one would think that before covid and the war in Ukraine everything was hunky-dory and there were no problems at all. The reality is that the cost of living crisis is not recent but a result of 12 years of Conservative austerity. [Interruption.] If only Conservative Members got so outraged about pensioner poverty. When he talks about the hard fiscal decisions that will have to be made on 17 November, does he understand that my pensioners in Belvidere are shocked that the Government are not doing enough while lifting the cap on bankers’ bonuses?

    Mel Stride

    I am surprised by the hon. Gentleman’s intervention. When a pandemic comes along and contracts the economy by a greater level than at any time since about 1709—the year of the great frost—and a war breaks out that has a huge impact on energy costs in electricity, oil and gas, very few of our constituents up and down the country would not accept that those have been major contributors to the inflation and other challenges that we face. Only yesterday, the International Monetary Fund stated that about a third of economies in the world will be going into recession. We are not an outlier; we are right in the middle of the pack of nations who are suffering the consequences of the events that I described.

    Margaret Greenwood

    The Secretary of State has been telling us that the Government are committed to protecting the most vulnerable and looking after pensioners, but that will ring hollow to pensioners in my constituency who are devastated at the squeeze on public services. They see libraries closing—places they rely on as social hubs where they can go and interact with people—and the local authority having problems providing the social care that they need. Those issues really affect them. I know that they do not come under his Department, but will he commit to speaking to the Cabinet about them?

    Mel Stride

    The hon. Lady raises a perfectly legitimate concern. We are all concerned about public services, and certainly those of us on the Government side care deeply about public services, but we must be honest with the British public in saying that times are extremely difficult and there will be some tough decisions.

    Margaret Greenwood indicated dissent.

    Mel Stride

    The hon. Lady shakes her head, but economically there are really three choices: we can either raise taxes, cut spending or borrow more money. The Labour way, we know, is to borrow, borrow, borrow. Unfortunately, we all know where that leads. [Interruption.] The shadow Secretary of State needs to calm down. He is getting a bit excited. What we need—

    Mr Speaker

    Order. Mr Ashworth, you need to calm down. [Interruption.] No, no. I will make the decision on who needs to be calm, and it is you who is going to be calm.

    Mel Stride

    Mr Speaker, you are a man after my own heart. We are on the same page and I could not agree with you more. Thank you very much indeed for that timely intervention.

    That brings me to my closing remarks.

    Alan Brown

    Will the Secretary of State give way?

    Mel Stride

    I will not.

    I respect the fact that the right hon. Member for Leicester South brought forward the motion and, to the extent that it underlines the absolute importance of standing up for our pensioners, I welcome it. Government Members will always be there to support pensioners. We always have been in the past, we are now and we always will be.

  • Jonathan Ashworth – 2022 Speech on the State Pension Triple Lock

    Jonathan Ashworth – 2022 Speech on the State Pension Triple Lock

    The speech made by Jonathan Ashworth, the Labour MP for Leicester South, in the House of Commons on 8 November 2022.

    I beg to move,

    That this House calls on the Government to commit to maintaining the state pension triple lock in financial year 2023-24 as promised in the Conservative and Unionist Party manifesto 2019.

    I hope not to detain the House long, because the proposition before it this afternoon is very simple: we are asking the House to stand firm in instructing the Chancellor and the Prime Minister to honour the triple lock promise and uprate the state pension in line with inflation for the next financial year. The motion should not be controversial; indeed, every Member should be able to endorse it in the Division Lobby this evening.

    The reason we have tabled this motion is that pensioners deserve certainty that the promise of protection offered by inflation-proofing the state pension will be honoured. Let us remind ourselves of the facts. Pensioner poverty is up by 450,000 since 2010. Prices in the shops are up. Energy bills are up. The Office for National Statistics found that between June and September this year 3.5 million pensioners had already been forced to spend less on food and essentials because of the soaring cost of living. Over half of pensioners are cutting back on gas and electricity in their homes, and Age UK has projected that 2.8 million older households are set to be in fuel poverty this winter—1.8 million more than in previous years.

    Alex Cunningham (Stockton North) (Lab)

    Did my right hon. Friend read the reports in The Times that the Government are in fact going to follow our example and to confirm that they will increase the state pension in line with inflation? Does he agree that the Minister could intervene now and save us several hours debating these issues by just confirming that the Government do in fact intend to do that?

    Jonathan Ashworth

    I have read not only The Times but the 2019 Conservative manifesto, which committed Conservative Members to maintaining the triple lock, so I look forward to their joining us in the Division Lobby this evening—[Interruption.] I look forward to the hon. Member for Birmingham, Northfield (Gary Sambrook) joining us in the Division Lobby.

    Gary Sambrook (Birmingham, Northfield) (Con)

    Did the Institute for Fiscal Studies not say that the 2019 Labour party manifesto would benefit high earners rather than low earners on pensions, so is the biggest threat to UK pensioners not the Labour party?

    Jonathan Ashworth

    On the topic of manifestos, the new Prime Minister tells us that we do not need a general election because the 2019 manifesto gives the Conservative party a mandate. If that is the case, Conservative Members should not break their promise on the triple lock, and the hon. Member should join us in the Lobby this afternoon. Indeed, those in his marginal constituency will be watching carefully to see which way he votes later.

    Sir John Hayes (South Holland and The Deepings) (Con)

    I am delighted that the right hon. Gentleman, who by the way—and I do not want to lower his reputation on his own Benches—is a friend of mine, has given way. He knows very well that today is not about a lasting decision by Government but about political theatre. When we vote this afternoon, we will not be voting for what happens in practice; we will be voting because Labour has chosen to try to make political capital out of a difficult issue. I simply say to him that if the Government were to propose breaking that promise, they would not have my support, and they know that, by the way. I would stand by the triple lock. But will the right hon. Gentleman just answer this: was he not the adviser to the former Labour Chancellor Gordon Brown, who awarded pensioners a 50p increase?

    Jonathan Ashworth

    On the latter point, the right hon. Gentleman will recall that the state pension rose by over 50% under the last Labour Government and has risen by around 40% under this Government. I do not want to make an enemy of the right hon. Gentleman, because I know that he agrees with me; I read his comments in the Daily Express yesterday. Indeed, I suspect that he will agree with probably 90% of my speech—so much so that I was tempted to email it to him in advance of this debate, but I did not want to be removed from the Front Bench.

    Let me make a bit of progress. The real-world impact in our constituencies of cutting the state pension again means more and more pensioners turning to food banks and more pensioners shivering under blankets in cold, damp homes, putting themselves at risk of hypothermia. It means more pensioners cutting back, at a time when they have already had to swallow a real-terms cut in the state pension of around £480. Breaking the promise on inflation uprating for next year amounts to a further real-terms cut in the value of the full state pension of £440. We are talking about a £900 cut, around £37 a month in the fixed incomes of Britain’s retirees; a cut in the fixed incomes of groups of the population who cannot easily earn a wage; a cut in fixed income when one in three relies solely on the state pension; and a cut that is punishing at the best of times, but is more devastating when prices are rising and energy bills are increasing.

    Wendy Chamberlain (North East Fife) (LD)

    Does the shadow Minister agree that we are talking not only about a cut, but about the uncertainty that the Government have created over the weeks, with their U-turns upon U-turns? Pensioners do not know whether to trust this Government and they have no certainty, even despite what has been reported this morning.

    Jonathan Ashworth

    We have had continued mixed messaging from the Government, which is why today is an opportunity for Conservative Members to send a clear message to their constituents about their position on the triple lock.

    Kim Leadbeater (Batley and Spen) (Lab)

    Does my right hon. Friend agree that there is a broader point here? A couple in their 70s in my constituency have contacted me to say that they are concerned about their pensions for themselves, but that they also care for members of their extended family who have physical ailments, autism and attention deficit hyperactivity disorder. As the costs of that care are increasing, the impact of reducing their pensions becomes a massive factor. Does my right hon. Friend agree that if the Government abandon their triple lock promise and inflict this real-terms pensions cut, that will have a knock-on effect on some of the most vulnerable people in our society?

    Jonathan Ashworth

    My hon. Friend has described with great eloquence the real-life impact that this cut will have on our constituents. Although I do not know the particular circumstances of the family she refers to, they may well be reliant on other social security payments, and we have no clarity from the Government about whether they will also be cut in real terms.

    Alan Brown (Kilmarnock and Loudoun) (SNP)

    Does the right hon. Gentleman agree that those other social security payments also need to be uprated in line with inflation? If so, should Labour not have made the motion wider to include that?

    Jonathan Ashworth

    Today’s debate is about the triple lock, but we do agree that payments such as universal credit should be uprated in line with inflation and not suffer a real-terms cut.

    Jim Shannon (Strangford) (DUP) rose—

    Jonathan Ashworth

    I give way to my fellow Leicester City fan.

    Jim Shannon

    We are on a roll: three games we have won in a row.

    Some people believe that retired people live a wonderful life, but the reality is often much bleaker: less heat, less food and making the most out of a meagre income. Does the shadow Minister agree that the Government must honour those who have paid tax and national insurance contributions over their lifetimes? Now is the time to support them, when they need us.

    Jonathan Ashworth

    My friend and fellow Leicester City fan makes his point with the same force and precision as Youri Tielemans putting one in the back of the net against Everton at the weekend. He is absolutely right.

    Let me make a bit of progress. A cut in the pension will also disproportionately hit retired women, who rely on the state pension and other benefits such as pension credits for more than 60% of their income. This £900 cut in income is for those who have worked hard all their lives, who have paid their dues and who, as my mum would say, have paid their stamps.

    Liz Kendall (Leicester West) (Lab) rose—

    David Johnston (Wantage) (Con) rose—

    Jonathan Ashworth

    I will give way to my hon. Friend from Leicester, given that I am a Leicester MP, and then let the hon. Gentleman in.

    Liz Kendall

    I am grateful to my right hon. Friend for giving way. I am sure he knows that half of all Leicester pensioners live in the most deprived 20% of the country, and one in five live in the most deprived 5% of the country. They are frightened for their future and will feel betrayed by Conservative Members if they do not walk through the Lobby with us tonight.

    Jonathan Ashworth

    My hon. Friend is absolutely spot on, as she always is. May I also say what a pleasure it is to see her back defending the people of Leicester West after her maternity leave.

    David Johnston

    Does the right hon. Gentleman accept that, given that the Government are making their announcement about the triple lock next week and that it takes effect in April, it is therefore irresponsible to suggest that pensioners will face the sort of cuts that he is talking about? We should just wait for the announcement.

    Jonathan Ashworth

    I do not know if the hon. Gentleman was in the House about three weeks ago, but that was when the then Conservative Prime Minister committed from the Dispatch Box to maintain the triple lock. If the hon. Gentleman wants to stand up for the 21,000 pensioners in the Wantage area who are set to lose £425 from a real-terms cut, he should vote with us in the Lobby this afternoon.

    Let me make a bit of progress. A £900 cut in income, around £37 per month, is punishing at the best of times, and it is a cut for people who feel they have paid their dues—people who, like my mum, feel they have paid their stamps. It is a cut for those who have worked all their lives and who often live now with a disability or in ill health because of their hard work. Whether because of the hard, unyielding occupations that they may have worked in, they might live with chapped hands, sore backs and sore knees. They deserve a retirement of security, dignity and respect. It would be a betrayal of Britain’s almost 13 million pensioners to cut the pension a second year in a row, and this House should not stand for it.

    Why has the triple lock been in the Chancellor’s crosshairs? It is because Conservative Members presented, cheered and welcomed the most disastrous Budget in living memory. It was a Budget so reckless and so cavalier with the public finances that it crashed the economy with unfunded tax cuts, sent borrowing costs soaring, gave us a run on pension funds, and forced mortgage rates to ricochet round the money markets, costing homeowners hundreds of pounds extra a month, and now they want us all to think it was just an aberration—that it was all just a bad dream; that Bobby Ewing was in the shower all along. But for the British people it remains a real nightmare, and now the Government are expecting pensioners to pay the price. Well, we will not stop reminding them of the Budget that they imposed on the British people.

    In recent days, ahead of this debate, I have been inundated with messages from Britain’s retirees saying that that price is far too high. This was what Hilda wrote:

    “We believed that with the triple lock in place, our state pension would keep pace with wages and inflation…This government cynically dismantled the triple lock and threw state pensioners under the bus”.

    This was what Mary wrote to me:

    “I am in tears of frustration and anger…Not all pensioners are well off. I for one am really struggling”.

    This was from Patrick, who is aged 73:

    “How can a responsible government minister welch on a promise?”

    That is the crux of the matter, because every Government Member stood on a manifesto in 2019 that made a clear promise to the triple lock.

    Six months ago, the Prime Minister, when he was the Chancellor, told us from that Dispatch Box that the promise of inflation-proofing the state pension would be honoured for the next financial year:

    “I can reassure the House that next year…benefits will be uprated by this September’s consumer prices index”.

    He went on:

    “the triple lock will apply to the state pension.”—[Official Report, 26 May 2022; Vol. 715, c. 452.]

    Those were the Prime Minister’s words six months ago. He tells us that we should not have a general election because that 2019 manifesto gives him a mandate, but he will not give us a straight answer to a very simple question: will he honour the promise he made from the Dispatch Box six months ago? So much for his promise to restore “integrity and professionalism” to Downing Street.

    A year ago, the House debated breaking the triple lock. The then Pensions Minister, now promoted to Minister for Employment as Minister of State—I congratulate him of course, and I am pleased that he is back in the Department after a brief period away—last year justified cutting the state pension, telling us it was only for one year. Just a year ago, on 15 November 2021, he said:

    “The triple lock will, I confirm, be applied in the usual way for the rest of the Parliament.”—[Official Report, 15 November 2021; Vol. 703, c. 372.]

    So what has changed?

    Anthony Browne (South Cambridgeshire) (Con)

    I repeat that this is political theatre and, for those in doubt, whatever the vote is today, it will have absolutely no impact on the legislation whatever. I just want to know if the right hon. Member is aware of the very good House of Commons briefing on the triple lock, which compares the basic state pension with average earnings over the last 30 years. The low point of it was between 2000 and 2008, when it went down to 16%. That is the lowest the basic state pension has ever been compared with average earnings, and who was in power at that time? It was the last Labour Government. In fact, the previous Conservative Government and successive Conservative Governments have been more generous on the basic state pension compared with average earnings than the last Labour Government.

    Jonathan Ashworth

    If we want to go down memory lane, a previous Conservative Government broke the earnings link and that is why we need to keep the triple lock, so it builds up its value. The reason those inflation upratings were so low is that we had inflation under control under that Labour Government; we had not lost control of it. We introduced the minimum income guarantee, which the Conservative party voted against, and we introduced pension credit, which the Conservative party opposed at the time, in order to improve the incomes of the poorest pensioners. We brought pensioner poverty down and it is increasing again under this Tory Government.

    As I have said, the then Pensions Minister said that the triple lock would

    “be applied…for the rest of the Parliament”.

    I was sceptical about that. We have these debates across the Dispatch Box and he will recall my scepticism. He is always very noisy on the Front Bench and, when I was asking questions, he was shouting at me and said, “No, we’ve committed to the triple lock. You shouldn’t have to worry.” I asked the then Work and Pensions Secretary, the right hon. Member for Suffolk Coastal (Dr Coffey), and she told me at the time:

    “I am again happy to put on record that the triple lock will be honoured in the future.”—[Official Report, 21 March 2022; Vol. 711, c. 99.]

    That was in March 2022 from that Dispatch Box, yet here we are with the prospect of another real-terms cut in the pension on the table again. Breaking such a promise two years in a row in a cost of living crisis is surely unacceptable.

    That brings me to the new Work and Pensions Secretary, who of course prior to his elevation just a month ago, when real-terms cuts to the pension and other benefits were raised, led the charge at the Tory party conference. He undermined the position of the then Prime Minister and the then Chancellor, telling Sky News it was

    “one of those areas where the Government is going to have to think again.”

    But of course this morning, he did not repeat his line that the Government should think again, because now he is saying we have to wait until next week’s emergency Budget. So we have a U-turn on the U-turn. In fact, the Conservative Twitter account is still saying:

    “We will protect the Triple Lock”.

    The Conservative Twitter account is still repeating what the former Prime Minister, the right hon. Member for South West Norfolk (Elizabeth Truss), told us from the Dispatch Box three or four weeks ago. So it is a U-turn on a U-turn on a U-turn, and it makes us all dizzy just watching it.

    After all this Conservative party triple lock hokey-cokey, today is a clear opportunity for Conservative Members to finally tell us where they stand. Today is an opportunity for Conservative Members to finally end the uncertainty, finally end the mixed messages and finally end the worry for millions of pensioners who have seen their state pension cut while their cost of living soars, and confirm that the pension will not be cut next year. The uprating of the state pension is crucial to millions of today’s pensioners, but it is also about protecting the incomes of tomorrow’s pensioners. It is about ensuring that the state pension recovers its value relative to wages. Given the move away from final salary schemes, it means certainty for tomorrow’s pensioners as well.

    In the name of today’s pensioners and tomorrow’s pensioners, Conservative MPs should offer us certainty. Our retired constituents have worked hard all their lives, contributed to national insurance and served our communities. They deserve security and dignity. As the former Conservative Pensions Minister Baroness Altmann warned this week:

    “Short-changing pensioners during a cost of living crisis should be unthinkable…Snatching protection away this year could be the biggest betrayal pensioners have ever known.”

    I could not put it better myself. Ministers should stop dithering. They should reject the cut in the state pension and support our motion in the Lobby tonight.

  • Liz Truss – 2022 Comments on Triple Lock on Pensions

    Liz Truss – 2022 Comments on Triple Lock on Pensions

    The comments made by Liz Truss, the Prime Minister, on 19 October 2022.

    We are protecting the triple lock on pensions to ensure pensioners get the most generous support, as well as providing extra support with their energy bills.

  • Emma Hardy – 2022 Comments on the State Pension

    Emma Hardy – 2022 Comments on the State Pension

    The comments made by Emma Hardy, the Labour MP for Kingston upon Hull West and Hessle, on Twitter on 17 October 2022.

    The Chancellor refused to commit to raising the state pension in line with inflation in April. The PM had promised to do this previously. If the rise doesn’t come it will push many more pensioners into poverty.

  • Danny Alexander – 2011 Speech to the House of Commons on Public Service Pensions

    Danny Alexander – 2011 Speech to the House of Commons on Public Service Pensions

    The speech made by Danny Alexander, the then Chief Secretary to the Treasury, in the House of Commons on 2 November 2011.

    I wish to update the House on progress in reform of public service pensions to set out the new offer we have made as we seek to bring this issue to a conclusion by the end of this year.

    Our objective is to put in place new schemes that are affordable, sustainable and fair – to both taxpayers and public service workers. And to put in place schemes that can be sustained for decades to come.

    It’s not easy, but it’s the right thing to. I recognise that this is a contentious area. Public service workers deserve a good pension in retirement, as a fair reward for a lifetime spent serving the public.

    That is why in June last year the Chancellor commissioned Lord Hutton, the Work and Pensions Secretary in the previous Government, to take an impartial, dispassionate look at this to bring forward proposals for reform.

    His landmark report has set the terms of the debate, and I am sure the whole house will share my gratitude for his work.

    In his interim report, he found that there was a clear justification – based on the past cost increase borne by the taxpayer for an increase in member contributions.

    We accepted that recommendation, and increases in member contributions will take place starting next year – although next year’s increase merely reflects the increase already planned by the previous Government.

    In his final report, he set out a blueprint for a new landscape of public service pensions based on retaining defined benefit schemes, but moving to a fairer career average basis, and increasing the retirement age in line with the State Pension Age to protect the taxpayer against future increases in life expectancy.

    We accepted his recommendations in full as a basis for consultation, and we have been discussing the recommendations with the trade unions.

    Those discussions started in February, and are still going on. Despite some of the public comment, significant progress has been made. And I want to pay tribute to the Minister for the Cabinet Office and the General Secretary of the TUC for their tireless work to reach common ground on reform.

    The trade unions have welcomed many of the commitments that we made at the start of this process:

    • That public sector schemes will remain defined benefit, with a guaranteed amount provided in retirement
    • That all accrued rights will be protected. Everything public servants have earned until the point of change, they will keep and will be paid out in the terms expected, at the retirement age expected. Final salary means just that – your accrued rights will be based on the final salary not at the point of change, but your final salary whenever your career ends or you choose to leave the scheme.

    No public sector worker needs to have anything to fear at all for any of the entitlements they have already built up.

    We have reached agreement the importance of transparency, equality impacts, participation rates and opt-outs, scheme governance, and high level principles to inform consultations on scheme level pensions.

    However, the central issue of the value of new schemes remains to be agreed.

    Two aims need to bet:

    First, that for most low and middle income workers, the new schemes would generate an income at retirement at least as good as the amount they receive now.

    Second, that the taxpayer needs to be properly protected from the future risks associated with further increases in life expectancy, by linking the scheme normal pension age to State Pension Age.

    In early October, we set cost ceilings to meet these tests.

    Cost ceilings based on Lord Hutton’s recommendations that generate an accruals rate of 1/65th for the new schemes.

    Scheme by scheme discussions have been taking place on this basis, since the beginning of October.

    And while the talks have been productive,  trade unions and departmental ministers have given consistent feedback about what they think needs to change.

    Last week, the Minister for the Cabinet Office and I met the TUC negotiating team who pressed for a more generous cost ceiling was needed, and explicit protections for those workers nearest to retirement.

    I have received similar feedback from the Secretaries of State for Education and Health.

    Having listened to their views, I have decided to revise the government’s offer.

    Cabinet discussed these matters yesterday, and I met the TUC this morning to set out the terms of our new offer.

    It is an offer that increases the cost ceiling and provides for generous transitional arrangements for those closest to retirement, and I have made available to Members today a document that sets out the detail.

    This generous offer should be more than sufficient to allow agreement to be reached with the unions.

    But it is an offer that is conditional upon reaching agreement.

    I hope that on the basis of this offer, the Trade Unions will devote their energy to reaching agreement not on unnecessary and damaging strike action.

    That way this offer can inform the scheme by scheme talks that will continue until the end of the year. Of course, if agreement cannot be reached we may need to re-visit our proposals, and consider whether those enhancements remain appropriate.

    I can announce today that I have decided to offer an increase to the cost ceiling. So future schemes will now be based on a pension to the value of 1/60th of average salary, accruing for each year worked. That is an 8% increase on the previous offer.

    Let me give some examples of what that means.

    A teacher with a lifetime in public service with a salary at retirement of £37,800 would receive £25,200 each year under these proposals, rather than the £19,100 they would currently earn in the final salary Teachers’ Pension Scheme.

    A nurse with a lifetime in public service and a salary at retirement of £34,200 would receive £22,800 of pension each year if these reforms were introduced, whereas under the current 1995 NHS Pension Scheme arrangements they would only get £17,300.

    Pensions that remain considerably better than available in the private sector.

    To earn the equivalent pension in the private sector, the teacher retiring on £37,800 would need a pension pot of around £675,000, the nurse retiring on £34,200, a pot of £600,000. Both would require an annual contribution of around a third of their salary.

    In addition, I have listened to the argument that those closest to retirement should not have to face any change at all.

    That is the approach that we have taken in relation to increases to the State Pension Age over the years, and I think it is fair to apply that here too.

    I can also announce that scheme negotiations will be given the flexibility, outside the cost ceiling, to deliver protection so that no-one within 10 years of retirement will see any change in when they can retire nor any decrease in the amount of pension they receive.  .

    Anyone ten years or less from retirement age on 1 April 2012 are assured that there will be no detriment to their retirement income.

    We need to be clear about the backdrop against which this offer is made.

    I fully understand that families across the country are feeling financial pressure right now. These are unprecedented and tough economic times.

    But reform is essential because the costs of public service pensions have risen dramatically over the last few decades.

    The bottom line is that we are all living longer.

    The average 60 year old today is living ten years longer now, than they did in the 1970s. That is a remarkable and welcome feat of science and healthcare. But it also means that people are living in retirement longer and claiming their pension for longer.

    As a result the costs of public service pensions have risen to £32bn a year. An increase of a third over the last 10 years. And whilst they accounted for just under 1 % of GDP in 1970, they account for around 2% of GDP today.

    More than we spend in total on police, on prisons, and the courts.

    And for the most part, it hasn’t been the public service workers footing the bill. It’s been the general taxpayer.

    We have to reform to ensure the costs of pensions are sustainable in the long term and to ensure costs and risks are fairly shared between employees and taxpayers.

    I believe this package is affordable. I believe it is also fair, not just to public sector workers, but delivers significant long term savings to taxpayers who will continue to make a significant contribution to their pensions.

    If reform along these lines is agreed, I believe that we will have a deal that can endure for at least 25 years and hopefully longer.

    People are living longer, so public sector pension reform is inevitable. But we’ve listened to the concerns of public sector workers, and come up with a deal that’s fair and affordable. The lowest paid and people ten years off retirement will be protected – and public sector pensions will still be among the very best available.

    If reform of this sort is agreed, then no party in this house will need to seek further reform of the overall package. This sustainability is an important prize.

    So I hope that the trade unions will now grasp the opportunity that this new offer represents.

    And I hope party opposite will do the right thing, put party politics aside, and support the proposals, which came from John Hutton, in the interests of securing a long term consensus on the future of public service pensions.

    It is the chance of a lifetime to secure good, high quality, and fair public service pensions.

    Yes we are asking public service workers to contribute more.

    Yes, we are asking them to work longer, along with the rest of society

    But we are offering the chance of a significantly better pension at the end of it for many low and middle income earners.

    A fairer pension, so that low income workers stop subsidising pensions of the highest earners.

    A sustainable deal, that will endure for at least 25 years.

    An affordable deal, that ensures that taxpayers are being asked to make a sensible contribution, but keeps costs sustainable and under proper control.

    That is the new offer I am putting on the table today, it is an offer that the opposition should support and the unions should agree to and I commend this statement to the House.