| Previous Section | Index | Home Page |
Mr. Jim Cunningham: The hon. Gentleman mentions the Chancellor in relation to the measurement of inflation, the RPI. I remind the hon. Gentleman that his party took elements out of the RPI measurement when it was in government. The charge that he levels against the Government Front Bench applies equally to his Government because that change had the same effect on pensioners at the time.
Mr. Heald: I remember when the hon. Gentleman used to stand up for pensioners. If he thought there was a threat to the uprating of their benefits he would say that it should not happen. Does he agree that it is right for the Opposition vigorously to tackle a measure that would halve the rate of increases that pensioners receive? Does he agree that we are entitled to an answer from the Minister in the Department that is responsible for pensions?
Mr. Cunningham: I notice that the hon. Gentleman has not answered my question and has waffled on about something else instead. I reassure him that if I am fortunate enough to catch Mr. Deputy Speaker's eye, I will champion the pensioners' cause. He should not worry about that.
Mr. Heald: I am grateful that the hon. Gentleman is able and willing to be part of the consensus in the Chamber that is trying to improve things for pensioners
and pension scheme members in Britain, unlike the Government who just spend all their time talking about it.
Mr. Pond: Will the hon. Gentleman give way?
Mr. Heald: The hon. Gentleman has already had a good go. I want to move on.
The House will know that 375 hon. Members on both sides of the House, including 173 Labour Members, have signed early-day motion 572 which calls for a simpler system of application for a Post Office card account over the counter and fewer barriers to customers obtaining cash from the post office, as they do now. The Government's change to direct payment has been fraught with difficulties, including the revelation that thousands of keypads installed in post offices will have to be torn out or seriously amended. Those with disabilities such as blindness, autism, and Alzheimer's disease, will be severely affected by those changes.
I have received hundreds of letters on that issue and I shall read brief extracts from just two of them. A pensioner from Suffolk wrote to me last month stating:
- "I am 83 and have rheumatoid arthritis. I . . . keep active by collecting pension at the Post Office".
- "very, very dubious if I would be able to slot my fingers on the right numbers. Meanwhile some bright spark can be watching and noting my number—so no secrecy (or security) even if I manage to mentally retain the number . . . I have no recollection of officially being advised of the alteration of payment, beyond grapevine and advertisements".
- "I am registered blind. I recently went to my local post office and saw the key pad on the counter. I could not read the figures at all and would not have enough sight to use the key pad . . . I understand that a relative or friend can use the PIN number that is given, and draw the benefit on my behalf. I do not want this at all. I am very independent and value my privacy . . . This whole situation is a complete mess . . . We have enough difficulties with day to day living without having all this hassle."
Some of the most vulnerable people in our country want to know how they are to receive their income in future. Will the Minister tell them? The Government's record on pensions is, unfortunately, one of which they cannot be proud. They are the Government of the pensions tax, the Government of the savings gap, and the Government of wind-up, HICP and poor take-up. They have failed millions of British pensioners, who are falling behind and will receive worse pensions than their parents for the first time in living memory. What is the
Government's response? Is it just the consultation culture, rather than the action that is needed for true reform?We want a system where no one is held back but, equally importantly, no one is left behind. We want a fair deal on pensions for everyone. We intend to support the motion in the Lobby this evening. I invite Labour Members who believe in standing up for pensioners and pension scheme members to send a message to the Government that they must listen, in the interests of present and future pensioners, to the consensus that is emerging on the Opposition Benches and among some on the Labour Benches. What is needed is not more talk, but urgent action.
Mr. Deputy Speaker: Order. Before I call the next Member to speak, I remind the House that there is now an 8-minute limit on Back-Bench speeches.
6.7 pm
Mr. Jim Cunningham (Coventry, South): I was interested in the tirade from the hon. Member for North-East Hertfordshire (Mr. Heald). I remember when he was in government, and the attitude of his Government. He made much of the fact that there had been a number of consultations between the Labour Government and various pensioners groups—he gave us the total numbers involved. That was in contrast to his Government, who never consulted anybody about anything and merely inflicted changes on people.
Much more has to be done for pensioners, but we should not lose sight of the fact that the Government have done a considerable amount for them already. I remember the debate in the Chamber one Friday morning about the winter chill allowance. The hon. Gentleman and some of his hon. Friends sabotaged the argument, which resulted in a Minister going. From our point of view, he was an effective Minister in that area, despite being a Tory Minister. That individual happened to be on the receiving end because he was sympathetic to the idea of doing more for pensioners, but his hon. Friends were not so keen on that, so he ended up on the scrap heap of history.
I also remember the debate about the £10 that used to be given to pensioners once a year as a handout. The Labour Government started to put that right by means of the winter chill allowance, which is worth about £200 a year. That is a positive step to help pensioners and alleviate pensioner poverty.
Under the Tories, some local authorities granted free bus passes whereas others did not, and there were disparities. The Tory Government did nothing about that, but the present Government have taken a step in the right direction and at least pensioners now only pay half fare. In the west midlands, pensioners get free bus travel. A start has been made, but a lot more needs to be done.
There is some concern about the Green Paper. I do not think that people want to work beyond a retirement age of 65. Obviously, some may want to work on, and it may be in the interests of the economy for them to do so, but by and large most people like to think that they will retire at 65.
The pensions crisis began under the Tory Government. I worked in factories then, so I have first-hand knowledge. I was involved in the trade union
movement when it encouraged people to stop in the state earnings-related pension scheme. When in government, the Conservative party encouraged people to go into private occupational pension schemes. It tends to be forgotten that those schemes were often introduced to offset a wage deal. We should not lose sight of the fact that the seeds of the present pensions crisis were sown under the Conservative Government. When they were in government they used to give us chapter and verse on the misdemeanours of previous Labour Governments. What they sow, they also reap.The hon. Member for North-East Hertfordshire (Mr. Heald) said that I champion pensioner causes. One of the causes that I am involved in at the moment concerns occupational pension schemes. I think that a pensioner trustee should be elected by pensioners' groups on to the boards, so that they can look after the statutory interests of the scheme and represent pensioners who have paid into the scheme, but who seem to be forgotten when dividends and other matters are considered. Next week, I shall be pursuing a Bill to do that. I hope that the House will let it go through, but I have a funny feeling that it may not.
The hon. Member for North-East Hertfordshire also said that if the Conservatives were to come to power they would cut tuition fees. They introduced them, then they ducked the issue by setting up the Dearing inquiry. They never took a decision: they left it to the incoming Labour Government to deal with.
There is a serious problem with pension funds. It is known that at least 100 companies have serious difficulties in financing their pension schemes, especially those providing staff pensions. Having said that, I must give the Government a little credit. About two years ago they set up what I would have called the financial services regulator. The regulator has had only one or two years, and the House may want at some future point to examine the work of the regulator and see what remains to be put right.
The Rolls-Royce pension fund has liabilities that are more than the value of the company. We heard from people from Rolls-Royce a couple of weeks ago. The regulator knows that the company is sitting down with the trade unions to address the problem, and it is prepared to find extra resources. I am not criticising Rolls-Royce, because it is trying to look after the interests of employees in the pensions area.
As for the criticisms of the Government, I remember the debates about VAT on fuel. The Conservative Government wanted to go for the maximum rate, but when we came to office we reduced it as far as we could within European regulations and agreements. The present Government should be given credit for that. They should also be given credit for providing free television licences. When we attack the Government, we tend to forget that they have done some positive things.
The other policy with a big effect not only on us, but on pensioners, is free eye testing. I can certainly remember that some hon. Members were not too happy about the abolition of free eye tests, which we have brought back. From a health perspective, that must be a very valuable thing.
There are some concerns among pensioners. I take the point about post offices and especially cashpoint services. The Government are trying to address the
matter, but I know that many pensioners prefer to go to their local post office and draw cash. We know that there are safety elements, but there is still a culture of people who much prefer to see cash than to use smart cards. That issue will be gradually overcome, and I notice that the numbers are diminishing.I am one of those people who believe in the pensions link; I always have and I always will. I know that there are arguments against it—
| Next Section
| Index | Home Page |