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Parliamentary Debates (Hansard) Monday Volume 638 26 March 2018 No. 117 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Monday 26 March 2018 © Parliamentary Copyright House of Commons 2018 This publication may be reproduced under the terms of the Open Parliament licence, which is published at www.parliament.uk/site-information/copyright/. 489 26 MARCH 2018 490 the years, support the Scottish National party calls for House of Commons the UK Government to urgently set up an independent savings and pension commission to take a robust look Monday 26 March 2018 at the pensions landscape? Ms McVey: The regulator is independent, and that is The House met at half-past Two o’clock what it does: look at pension schemes. We have, through the White Paper, strengthened the regulator’s powers PRAYERS and now for the first time brought forward criminal sanctions should any director or employer bring into [MR SPEAKER in the Chair] harm wilfully and neglectfully the workers’ pension scheme. Jack Dromey (Birmingham, Erdington) (Lab): The Oral Answers to Questions catastrophic collapse of Carillion saw thousands of workers pay the price, including with their pensions. It was a monumental failure of governance and by WORK AND PENSIONS Government, who knew Carillion was sinking into difficulties and went on awarding contracts despite The Secretary of State was asked— profit warnings. The Secretary of State has said before Pension Protection Fund: Former Carillion Employees the Select Committee that the Pensions Regulator knew about the mounting problems in 2014; were the Government 1. Eleanor Smith (Wolverhampton South West) (Lab): alerted and did they choose to ignore those warnings, or What steps she is taking to ensure support for former did the regulator chose to ignore them and fail to alert Carillion employees whose pensions will not be covered the Government? by the Pension Protection Fund. [904547] Ms McVey: The regulator and assessors are now The Secretary of State for Work and Pensions (Ms Esther looking into a whole series of issues. Fundamentally, McVey): There are 12 Carillion defined benefit schemes one of them has to be how Carillion’s books went from in a PPF assessment period. The PPF is working with being a healthy balance-sheet to, a year later, not being scheme administrators to determine whether they can a healthy balance-sheet. The auditors and accountants pay pensions at or above PPF benefits. Where a scheme who had signed those books are now being thoroughly cannot do this, the PPF will assume responsibility and examined to establish what happened there before the pay compensation. regulator would have had to look into things, so a lot of investigations are going on. Eleanor Smith: The workers in the Carillion defined contribution scheme should not have to suffer any Universal Credit Roll-out detriment to their pension. Will the Government be looking to draw back bonuses paid to the Carillion 2. Richard Graham (Gloucester) (Con): What assessment executives to put back into the pension funds? she has made of the efficacy of the roll-out of universal credit. [904548] Ms McVey: As I said, the Carillion schemes are at present in the assessment period for the funds, and we The Secretary of State for Work and Pensions (Ms Esther are looking at what happened in those instances. The McVey): Universal credit is a modern flexible benefit hon. Lady will be pleased to know that we have brought which provides tailored support to claimants. Three forward our White Paper on defined benefits and increasing separate research studies show that UC is having a the regulator’s powers to support these schemes in the positive impact on employer outcomes. The changes best way possible, to make sure pensioners get those announced in the Budget are giving even more support pensions that they so rightly deserve. It is the Conservative for claimants. party that will be strengthening that for workers, to Richard Graham: Before Christmas, many on the make sure we look after such pensioners. Opposition Benches predicted disaster as more of our James Gray (North Wiltshire) (Con): Will the Secretary constituents claimed their benefits through universal of State pay particular attention to that group of public credit. In fact—and I believe the changes made by the sector workers who transferred into Carillion and are DWP have made a significant difference—the early now retired, and who were covered not so much by the anecdotal evidence in Gloucestershire, from the Jobcentre PPF, because they were given ex gratia payments rather Plus and Gloucester City Homes, is that things are than pensions, at the time they transferred? moving smoothly ahead. Does my right hon. Friend agree that this is broadly the case across the country, Ms McVey: My hon. Friend raises an important and that the introduction of trusted landlords is making question, and he is right: a number of Carillion employees a significant improvement to relationships with housing were compulsorily transferred from the public sector, associations, and will she do more to roll that out? and we are looking at whether they can now rejoin the public sector service scheme. We are working hard to Ms McVey: My hon. Friend is correct. Three independent determine that. studies are saying that universal credit is getting people into work quicker, and that they are staying in work Deidre Brock (Edinburgh North and Leith) (SNP): longer and also looking for more work. He is exactly Does the Secretary of State agree that the Carillion right about the trusted partner status. The reason he has pension crisis, as well as the many pensions crises over started to do extra work with his jobcentre, looking at 491 Oral Answers 26 MARCH 2018 Oral Answers 492 tenants who might not have a roof over their head, was 18. [904564] Chi Onwurah (Newcastle upon Tyne Central) the false information cited in Prime Minister’s questions (Lab): Thank you, Mr Speaker. Let me take this by Jeremy Corbyn, who said that one in eight would be opportunity to tell the Secretary of State that in three evicted. That was not the case, and, as we are seeing, of the eight wards in my constituency, child poverty is people are now getting into work and their homes are at over 50%. Universal credit has only just started to be being protected. rolled out, and it will only make things worse. Her Government are also going to take away free school Mr Speaker: I say gently to the Secretary of State that meals—[Interruption.] In the future, there will not be one must not refer to other Members by name. The the access to free school meals that there is now. What right hon. Member for Islington North is the Leader of is the level of child poverty that she is willing to the Opposition, but he should not be referred to by support? name. Ms McVey: We have had this debate before, and this Frank Field (Birkenhead) (Lab): I ask the Secretary has been corrected many times. Actually, 50,000 more of State not to give an immediate reply to this question children are going to have free school meals. These but to ponder it. The Secretary of State has told me that scaremongering stories are not true at all. Let us look the 98 members of jobcentre staff on temporary contracts at what is happening. We now have 1 million fewer in Birkenhead are going to be laid off because they have people in absolute poverty—a record low. We now have come to the end of their contract period. Unlike Gloucester, 300,000 fewer children in absolute poverty—a new record we are having real problems with the roll-out of universal low. There are also 500,000 fewer working-age adults in credit. I had five cases last week, including one involving absolute poverty—a record low. This Government are a woman who had been reduced to living on 7p. Might about helping people to get into work, which is the first not some, if not all, of those staff be redeployed to step they can take towards taking control of their life. ensure a smooth transition from traditional benefits to From there, they can have career progression. the new one? Jeremy Quin (Horsham) (Con): I commend my right hon. Friend for the roll-out of universal credit. How Ms McVey: I appreciate the right hon. Gentleman does that compare with the debacle that was the saying that I could speak to and work with him to see implementation of tax credits under a previous what is happening in Birkenhead. What I know is that Government? we on this side of the House brought forward up to 100% advances, so that anyone in need of money could Mr Speaker: Order. No dilation is required. A pithy have it. We have also stopped the waiting days, and encapsulation of what the Secretary of State regards as from April we are providing the two-week housing her personal triumph is one thing, but a lengthy denigration payment. That is what we on this side of the House have of the policies of the previous Government would be done to protect the most vulnerable, but the Opposition another. voted against it. Ms McVey: Universal credit is working, and it had to 23. [904569] Craig Tracey (North Warwickshire) (Con): be put in place, in part because the Opposition’s tax I recently visited jobcentre staff in Bedworth to see how credits were a failure. universal credit was helping my constituents. I was delighted to hear of encouraging examples of success, Mr Speaker: Very fleet of foot. including one claimant who had been helped into work within weeks.
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