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Retirement Pensions
11. Sir Teddy Taylor: To ask the Secretary of State for Social Security what plans Her Majesty's Government have to increase the retirement pension beyond the increase in the retail prices index; and if she will make a statement.[4345]
Mr. Denham: We shall announce the uprating of the retirement pension at the normal time. Our manifesto said that we would increase it at least in line with prices.
Sir Teddy Taylor: Does the Minister accept that it would be helpful if the Government could say whether they intend to increase the pension above the rate of the retail prices index in the longer term? In the meantime, will he consider carefully the possibility of linking pension rises to a separate pensioners' price index that takes full account of the special needs and costs faced by elderly people compared with those faced by others in the community?
Mr. Denham: That is an interesting question from an hon. Member who supported the previous Administration for most, if not all, of the past 18 years, during which neither of the two things that he has suggested was done. In contrast to the previous Government, we shall have a review of the central areas of insecurity for elderly people, which will include the basic state pension and its value. Again in contrast to the previous Administration, we will listen to the views of pensioners and pensioner organisations during that review.
Mr. Winnick: Is my hon. Friend aware that about the last group of people who should criticise us on pensions are the Tories, whose behaviour in office was quite disgraceful? Is he also aware that many pensioners believe that they should receive an increase above the retail prices index, that they have a very strong case indeed and that they have a great deal of support on the Government
Benches? One hopes that it will not be long before the Government are in a financial position to give pensioners the rewards to which they are perfectly entitled.
Mr. Denham: My hon. Friend is right in his judgment of the previous Administration. We shall increase the basic state pension at least in line with prices. We shall have a review of the central area of insecurity facing pensioners to ensure that we hear their voices and listen to their concerns. We have made it clear that we are committed to examining ways to get more automatic help to the poorest pensioners. I look forward to the cut in VAT on fuel, which will cut pensioners' winter fuel bills.
Mr. Gibb: Are the Government still considering the proposal for a flexible decade of retirement from age 60, which the Secretary of State said before the election would involve a lowering of the basic state pension by £20 a week?
Mr. Denham: My right hon. Friend did not make any such statement before the election. We did say before the election that there are attractions in a flexible decade of retirement and that we would wish to move in that direction. I have no doubt that it is one of the matters that will be considered in the pensions review. I want to make it perfectly clear that there is no question of anybody who is retired today or who retires at state retirement age in future receiving anything other than the right pension for that age.
Housing Benefit
12. Mr. Bennett: To ask the Secretary of State for Social Security when she expects to issue new housing benefit regulations.[4346]
Ms Harman: We gave a commitment before the election to review the regulations that extended the single room rent to people aged 25 and over. We have done so--in the context of our commitment to keeping within spending totals.
We have listened to the advice and views of hon. Members--including those on the Environment Committee, on which I know my hon. Friend played a major part--local authorities and housing organisations such as Shelter and Crisis and decided not to go ahead with the single room rent provision for over 25-year-olds. We will revoke the regulations laid by the previous Government.
Mr. Bennett:
I thank my hon. Friend for that answer, which is very welcome. What is the magic about the age of 25? Will it be possible to reduce the hardship being suffered by people under 25 years old?
Ms Harman:
My hon. Friend is right to draw attention to the situation of those under 25 years old. The previous Government had already introduced a single room rent provision for under-25-year-olds, which requires them to live in shared accommodation. They cannot get housing benefit for anything more than a shared room; it will not even cover a bedsit. That was one of the many measures brought in by the previous Government which we opposed.
I have made an announcement today about one of the measures that was on the table when we arrived in government. The regulations had been laid in the House but had not been implemented. Although the rest of the announcements on benefits will be made around the time of the Budget, we brought forward this announcement because we knew that, due to regulations laid before the House, local authorities were making plans to implement the single room rent for over 25-year-olds.
Mr. Gorrie:
Will the Secretary of State consider trying to simplify the housing benefit regulations and making them more humane? I have wrestled with them for many years as a councillor and now as a Member of Parliament, and I know that they are complex and put many people off claiming their rights.
Ms Harman:
The hon. Gentleman is right to raise that point. The complexity of the housing benefit system means that people are not able to understand the factors that change their entitlement. There is also clear evidence that the way the system works keeps some people on benefit because they cannot pay their housing costs if they start work. We have already announced that we will review housing benefit as part of wider housing policy.
The previous Government abandoned any attempt to have a housing policy for those on lower incomes: they stood back and let the housing benefit system take the strain. It did--to the tune of £11 billion a year--while investment in housing collapsed. The review will be undertaken cross-departmentally, but in the meantime we need to ensure that the current system is made simpler and easier to understand.
13. Mr. Clapham:
To ask the Secretary of State for Social Security what is the Government's policy for getting young people off benefit and into work.[4347]
Mr. Field:
The Government believe that work is preferable to welfare. Shortly, the House will be given details of our plans to offer real opportunities to 250,000 young people who have been unemployed for six months or more.
Mr. Clapham:
I am grateful to my right hon. Friend for that reply. Does he agree that one of the saddest aspects of the former Government's policy was their failure to give opportunities to young people and that, as a result, between 500,000 and 600,000 young people are now out of work? For the benefit of the Conservatives, will he reiterate his determination to ensure that young people are given opportunities and their life chances are improved?
Mr. Field:
I willingly give that commitment to my hon. Friend. I hope that the House will appreciate that, when the plans for moving people from welfare to work are unveiled, we will offer that group of claimants an opportunity that no other Government have ever offered them. Because we regard every individual as important, they will all be given four options. Because we will meet that part of our commitment, the Prime Minister's view that there should be no fifth option of remaining on benefit will also be part of the package.
Mr. Duncan Smith:
Does the Minister of State agree that the complexity of his welfare-to-work programme
Mr. Field:
I, too, welcome the hon. Gentleman to his post and look forward to his using his considerable skills to develop our welfare reform programme.
Given the lead the Social Security Committee took on fraud in the previous Parliament, is he not trying to teach his grandmother to suck eggs?
15. Mr. Cohen:
To ask the Secretary of State for Social Security when she will hold discussions with the Home Office on the social security rules governing benefits to asylum seekers.[4350]
Mr. Keith Bradley:
As the House is aware, we are committed to a wide-ranging review of social security. Our aim is to encourage independence and reduce poverty. With the Home Office, the Department of Health and other Departments, we will consider all arrangements for asylum seekers to ensure that they are dealt with fairly and promptly.
Mr. Cohen:
Will my hon. Friend ensure that the review is conducted urgently? Asylum seekers and their dependants, who are sometimes young children, should not have to wait long periods without social security subsistence and their asylum applications should be decided promptly. Can Government policy be co-ordinated so that starvation is not used as a weapon against asylum applicants?
Mr. Bradley:
I am as anxious as my hon. Friend that the review of the asylum system is undertaken across Departments as swiftly as possible. It is crucial that we speed up the process of determining applications to ensure that the scenario that my hon. Friend raises does not happen. The review is led by the Home Office, which has prime responsibility, but I shall ensure that the departmental review is undertaken as swiftly as possible.
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