---

Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2007

It is a great pleasure to follow the noble Lord, Lord Skelmersdale, the self-described gentle bully—I think I have heard him say that—and to agree with many but not all his points. I should be interested if the Minister could tell us who the two anonymous people are—FAS campaigners are happy to operate under their own names—but rather like them, we on these Benches are grateful for small mercies. To that extent we welcome the order as far as it goes. Clearly there are some serious questions to ask about the operation of the FAS and where it is now. First, there has been a great deal of talk—let us be clear that it is a con trick—about the concept of a core pension that has been invented by the Government. Whether it is 80 per cent or 90 per cent of this entirely fictional figure, can I ask the Minister straight out what is the difference between core pension, as the Government define it and the level of benefits to which pensioners would be entitled under the PPF, which is the policy that we on these Benches put forward clearly in our manifesto at the previous election? We are still putting that forward, and would like to know what typically, on average, the difference is. If the Minister is talking about 80 per cent or 90 per cent of core pension, what percentage is that typically of PPF benefits? The debate will be much more honest and open if we can all agree on a definition of that. Secondly, my colleague, Danny Alexander from the Commons and I were at the vigil outside Downing Street the other night, as I know was the Minister responsible for pensions reform. The people who were there are disgusted by the treatment they have received from this Government. They were kind enough to give me a T-shirt as I passed yesterday. I am glad that I did not have to wear it outside Downing Street on that cold night. I was a little tempted to wear it here today, but my Chief Whip dissuaded me. The Minister should be under no illusions about the deep disgust felt not just by pensioners but by many of us on these Benches. It is welcome news that the Young report is about to be dragged kicking and screaming into the light. Following the question asked by the noble Lord, Lord Skelmersdale, what does early next week mean? Will the report be published by Tuesday, before the House breaks up? Will there be an opportunity for a debate or a Statement? Surely by now, after the Prime Minister spoke yesterday, the Government have decided what they will do and how that will be properly discussed. On the administration of the payments, surely by now the Government can see that it makes much more sense to let the PPF, which is a highly efficient, well organised and well established operation, administer the payments under the FAS. We on these Benches argued right at the beginning in 2004, when the Bill was going through the House, how much simpler it would have been if that had been done. It is not too late to do it now. The PPF management has confirmed to my colleague Danny Alexander and me that it is fully able and willing to do that. Will the Government please focus on that to save time and money and to integrate that operation? In the Commons, the Minister for Pension Reform sneered at the Sunday Torygraph, as he called it. We have had a few cheap cracks at the expense of the press today. The Sunday Telegraph, among other newspapers, has run a splendid campaign under the editorship of Patience Wheatcroft, who is sadly no longer there, and Liam Halligan. Both have great expertise in these matters and a very strong interest and feeling for the pensioners who have been done. It ill becomes the Government to sneer at newspapers that have exposed the Government’s really very sad record on this issue. It would be better if the Government focused on getting payments and justice to these people rather than sniping in that way. We look forward to the report next week, I hope, before we break up. Again, the Minister in the Commons said that he would be happy to have discussions with members of other parties about whether we should say something over Christmas or whether it would be better to wait until the House returned. We would prefer it to be done next week, and if more money can be found, that money should get through to members as soon as possible. I have a simple question for the Minister, because he was kind enough to give me a Parliamentary Answer a few months ago to the effect that, in the next 10 years, simply bringing up FAS benefits to PPF levels would cost between £15 million and £20 million a year. What is his latest update on those figures? On that basis, how many minutes—I use the word ““minutes”” advisedly—of taxpayers’ funds pouring down the Northern Rock plughole would it take to give the FAS pensioners PPF-level benefits? I end by asking the Minister whether he has read the excellent publication, Pensions Week, this week? On the front page, under the heading ““ABI calls for saver trusts in government””, Maggie Craig, the director of life and savings at the Association of British Insurers, was quoted as saying that, "““the government must instil higher levels of confidence in a new generation of savers””." This is clearly in the context of the new Pensions Bill personal accounts. She was also quoted as saying: "““Establishing trust is going to be central if this is to be successful. In particular, there is a lack of trust in government when it comes to pension provision””." The article continued: "““Drawing on research conducted for the Department for Work and Pensions, that found 51% of people did not trust the government on pensions, Craig said a huge amount of work needed to be done to improve understanding and confidence””." Frankly, given the way in which the Government have treated the members of the FAS and the robbed pensioners there, I am amazed that nearly half of them have some trust in the Government. I would have thought that the figure would have been much lower, and the Government should accept at last that when they are trying to bring in a scheme to enrol vast numbers of people in this country into saving for a pension, they should at least give justice to the people who have been waiting and sort this problem out once and for all.