Proceeding contribution from Danny Alexander (Liberal Democrat) in the House of Commons on Wednesday, 5 December 2007. It occurred during Ministerial statement on Benefits Uprating.
Benefits Uprating
I am grateful to the Minister for advance notice of his statement. The uprating announced today will be welcomed by many, but tackling poverty must be the key test against which such statements are judged. On that basis, some serious questions need to be answered. Even with today's rise, the state pension is still worth less than it was in 1950. Is it not simply unjustifiable that the uprating in line with earnings is to be delayed until 2012 at the earliest? Can the Minister confirm that, yet again, there is no uprating of the winter fuel payment? Is he not aware that due to rising fuel prices, that payment is now worth roughly half its value when introduced, leading many to slide back into fuel poverty? The Minister has talked about backdating of the pension credit, but is he not aware that with between 1.2 million and 1.7 million people not claiming it, there will inevitably be some individual losers, notwithstanding the fact that money is being redistributed, as he rightly said, within the pension pot? While the steps the Minister is taking to simplify the application process for pensioners are welcome, is he not accepting by doing so that complexity is a major barrier to benefit take-up? Does he not agree that with 51 different benefits and 250 different rates, Britain's benefit system is the most complex in the world? Does he not further agree that that complexity makes the system a nightmare for many who will wish to claim today's uprated benefits such as pension credit? Is it not time to seek much greater simplification—through the introduction of a single working age benefit, for example? Does the Minister also agree that deep public anxiety about data security within the Department for Work and Pensions and about tax credits could also undermine benefit take-up? What reassurance can he offer to give claimants confidence in how their data will be handled by his Department? The Minister mentions the Pensions Bill and we will carefully study the proposals on deregulation. The personal accounts scheme is welcome, but does the Minister share my concern that the mass means-testing of pensioners continued by today's statement could muddy the waters for many people about whether saving is worthwhile? What steps is he taking to ensure that those people and those with huge personal debts will have access to appropriate advice to ensure that they are able to take the right decision? One group of pensioners—the 125,000 whose pension schemes collapsed—will have heard nothing of comfort in today's statement. Will the Minister tell us when he expects to publish the results of the Young review? Is it his intention, as was reported in the press at the weekend, that the assets within the unclaimed scheme should be privatised? Would it not make more sense to hand those assets over to the management of the Pension Protection Fund, which has shown considerable expertise? That matter cannot wait much longer and I hope that the Minister will give us some reassurances on that. [Interruption.]
Secondary information
- Type
- Proceeding contribution
- Reference
- 468 c847-8
- Session
- 2007-08
- Chamber / Committee
- House of Commons chamber
- Subjects
- Council tax benefits Children Housing benefit Jobseeker's allowance Income support Pension credit Pensioners Workplace pensions Pension rights Overseas residence Social security benefits State retirement pensions Young people Telephone services Uprating Pension Service
- Link
- View this Proceeding contribution on www.publications.parliament.uk
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