Tag: Baroness Altmann

The below Parliamentary question was asked by Baroness Altmann on 2016-09-13.

To ask Her Majesty’s Government why cold calls regarding mortgages can be banned but not cold calls offering free pension reviews or unregulated pension investments.

Lord Ashton of Hyde

The Financial Conduct Authority (FCA) prohibition on cold calling applies to financial promotion of mortgages by FCA regulated firms. Under the FCA rules, regulated entities (including mortgage providers) are not allowed to engage in real-time financial promotion of mortgages and therefore no legitimate market for telephone promotion and sales exists.

The Government tightened controls on cold calling earlier this year, when amending the Privacy and Electronic Communications Regulations (PECR), making it a requirement for organisations making direct marketing calls to display their Calling Line Identification (CLI). These controls need time to bed in before considering whether further changes, specific to pensions, are appropriate. If there is a case for change, the Government will take the necessary action.

The below Parliamentary question was asked by Baroness Altmann on 2016-10-10.

To ask Her Majesty’s Government how many pension scams were (1) reported, and (2) stopped by official action, in each year from 2010 to 2016.

Lord Freud

The Government takes the threat posed by scams very seriously and recognises that these can be complex and multifaceted, often spanning departmental and agency boundaries. It is for this reason that the Government established Project Bloom, a multi-department, multi-agency group of officials to help co-ordinate action to tackle scams, monitor trends and share intelligence on emerging threats. Members include the National Crime Agency, police forces, Pension Wise, regulators and key Government departments.

Those scams which are reported, including Pension Liberation reports, are collected and collated by the National Fraud Reporting Centre (Action Fraud), within the City of London Police, which was established in 2013. However, the true extent of pension scams in the UK is unknown because many go un-reported.

The data on the number of reported scams will include those which have been reported over the past three years by individuals, pension providers, the Pensions Regulator or other agencies but, on which, Action Fraud has not yet received any feedback from the investigating police force, for example, a report on whether suspects have been charged or summonsed. This delay is due to the complexity of pension fraud investigations which can take several years to investigate. Action Fraud would not know the outcome until the end of the court case. Frequently, numerous fraud reports will relate to a single suspect.

The data on the number of reported scams also includes reports where organisations have taken action to prevent that fraud. Outcome feedback would only be received in respect of these reports if the Police became involved.

We expect the number of charges and summons to increase as outcome feedback from investigating police forces for pre 2014 reports is received and collated. The available data is provided in the table below:

Year	No. of Action Fraud Reports	Suspect charged / summonsed
2014	911	1
2015	807	6
2016 (to date)	290	0
Total:	2,008	7

The below Parliamentary question was asked by Baroness Altmann on 2016-09-13.

To ask Her Majesty’s Government what estimate they have made of the percentage of pension scams in the UK that (1) originate overseas, and (2) are initiated by UK-based firms.

Lord Freud

The Government has not made an estimate of the geographic origin of pension scams. Scams are often complex in nature and those reported to Action Fraud as taking place in the UK may have originated elsewhere.

The below Parliamentary question was asked by Baroness Altmann on 2016-10-10.

To ask Her Majesty’s Government what action they are planning to take to prevent cold calling for pension scams.

Lord Ashton of Hyde

My Department is in conversations with Her Majesty’s Treasury and the Department for Work and Pensions on how best we tackle nuisance calls and the scams associated with them, which is a priority for the Government.

We are exploring several measures that will help strengthen the Information Commissioner’s enforcement powers against those organisations that continue to breach the direct marketing rules. Specific measures under consideration are; extending the Information Commissioner’s powers of compulsory audit to more of the organisations that generate nuisance calls and exploring the options for enabling the Information Commissioner to hold company directors to account for breaches of the direct marketing rules.

The Government will continue to work closely with the City of London Police (CoLP), the national lead force for fraud, to help local forces and partners deliver protective advice to the public on fraud, including phone scams. CoLP operates Action Fraud, the national reporting centre for fraud and cyber crime, and the National Fraud Intelligence Bureau, to ensure that the public has the information they need to protect themselves from telephone fraud. Action Fraud, for example, places an alert on its website when a serious threat or new type of fraud is identified – which members of the public can sign up to receive by email.

The below Parliamentary question was asked by Baroness Altmann on 2016-09-13.

To ask Her Majesty’s Government how many (1) women, and (2) men, are working but do not receive any credit towards their National Insurance state pension each year, due to being in one or more jobs that pay less than the lower earnings limit.

Lord Freud

DWP analysis suggests that at any one time around 10,000 men and 40,000 women have multiple jobs below the lower earnings limit (LEL) with combined earnings above it, but are not receiving any qualifying years towards the State Pension on those earnings.

DWP analysis estimates that of the women with multiple jobs below the LEL but total earnings above it, around 30% are getting a childcare credit for their State Pension. Others in this group may also be receiving credits through another route or be paying voluntary national insurance contributions.

The below Parliamentary question was asked by Baroness Altmann on 2016-10-10.

To ask Her Majesty’s Government, in the light of the risk of pension fraud and scams, what are their reasons for not banning cold calling about pensions.

Lord Ashton of Hyde

We are determined to tackle the scourge of nuisance calls especially those of a fraudulent nature. Our efforts are focused on taking action against companies that are deliberating break the rules, rather than penalising legitimate businesses who comply with the law.

My Department is in conversations with Her Majesty’s Treasury and the Department for Work and Pensions on how best we tackle scams as a result of pensions cold calls.

The below Parliamentary question was asked by Baroness Altmann on 2016-09-13.

To ask Her Majesty’s Government how women who are in multiple part-time jobs, none of which pay more than the National Insurance lower earnings limit, are able to claim credit for their state pension.

Lord Freud

DWP analysis suggests that at any one time around 10,000 men and 40,000 women have multiple jobs below the lower earnings limit (LEL) with combined earnings above it, but are not receiving any qualifying years towards the State Pension on those earnings.

DWP analysis estimates that of the women with multiple jobs below the LEL but total earnings above it, around 30% are getting a childcare credit for their State Pension. Others in this group may also be receiving credits through another route or be paying voluntary national insurance contributions.

The below Parliamentary question was asked by Baroness Altmann on 2016-10-10.

To ask Her Majesty’s Government what plans they have to ensure that individuals who are currently working in multiple low paid jobs without receiving national insurance credits will not lose out on their future state pension relative to people who are not working and still being credited for National Insurance contributions.

Lord Freud

The population working in multiple low paid jobs is not static and there is little evidence that people are engaged in this type of work pattern for significant periods in their working life, or that their state pension outcomes are affected, so many of those affected are likely to build up sufficient qualifying years in the future through paid or credited contributions. There is also a very wide gateway to National Insurance cover already: the lower earnings limit, the threshold for access to contributory benefits (including the State Pension) is set at the equivalent of less than 16 hours per week at the national living wage; there is a comprehensive system for National Insurance credits; people can pay voluntary contributions to protect their State Pension position, and finally, new State Pension allows for substantial gaps in National Insurance cover – up to 15 years over a 50 year working life – without penalty.

The below Parliamentary question was asked by Baroness Altmann on 2016-09-12.

To ask Her Majesty’s Government what is the total value of tax relief not paid to low-paid workers in (1) 2014–15, (2) 2015–16, and (3) 2016–17 to date, as a result of those workers contributing to a net pay scheme from which they were unable to receive the tax relief to which they would be entitled in a relief-at-source scheme.

Lord O’Neill of Gatley

The Government does not collect data on the number of workers earning less than the personal allowance who are also members of pension schemes that operate a net pay system. The Government does not hold employee level data on employees enrolled in net pay pension schemes, as such schemes are not obliged to report pension contributions to HM Revenue and Customs. The Government does not therefore hold information on the value of tax reliefs paid out to employees in net pay schemes.

However, the Pensions Regulator provides guidance to employers on choosing a pension scheme for their staff in order to discharge their statutory obligations under automatic enrolment. This guidance covers the choice between net pay and relief at source schemes, and the implications of net pay schemes for employees who do not pay tax.

The below Parliamentary question was asked by Baroness Altmann on 2016-10-17.

To ask Her Majesty’s Government, further to the Written Answers by Lord Freud on 15 September (HL1460, HL1461 and HL1462), what assessment they have made of (1) the proportion of addresses held by the Department for Work and Pensions that are incorrect, and (2) the number of people who will not have received a letter informing them of the change in their state pension age.

Lord Freud

This information requested is not collated centrally and could only be provided at disproportionate cost.