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Pension Credit
13. Mr. Win Griffiths (Bridgend) (Lab): What percentage of eligible pensioners are claiming pension credit in (a) Bridgend, (b) Wales and (c) the UK. [181900]
The Minister for Pensions (Malcolm Wicks): We cannot estimate eligibility with precision at the regional or constituency level. Up to 31 May, 2.5 million pensioner households, including more than 3 million individuals, were receiving pension credit in Great Britain. Of those, nearly 180,000 people are in Wales. I am also pleased to inform my hon. Friend that 4,405 individuals in Bridgend now receive pension credit, with an average award of £42.62 a week.
Mr. Griffiths: I thank my hon. Friend for that response. I am sure that the statisticians scattered about the United Kingdom could put together a programme to enable us to make the estimates, but can he tell me what further steps the Department will take to encourage more people to apply for the credit? From my experience, I know that a number of pensioners who have applied lately were amazed at how easy it was and at how helpful the phone line was in enabling them to get their forms filled in and benefit received.
Malcolm Wicks: We are increasingly going local with the take-up campaign's local advice surgeries and the excellent work of our local Pension Service, and people are pleasantly surprised when they realise that they can apply for pension credit over the telephone. Indeed, I read of a case study in The Daily Telegraph—so it must be true—where a man who had applied on behalf of his elderly mother-in-law said:
"I found the phone form-filling service to be first class, sent all the information requested, and my mother-in-law quickly received her extra pension . . . Again, everybody was most helpful."
Certainly, in Porthcawl, I know of case studies where people thought that they might be not eligible for pension credit, but £93 a week was awarded in one case. They said:
"To say we are pleased would be an understatement."
We need to go local, and we will.
Mr. Nigel Waterson (Eastbourne) (Con): Can the Minister confirm that the figures that his Department produced only today show that, between now and 2014, the projection of individuals eligible for pension credit will rise from 4,850,000 to 6,550,000—an increase of 35 per cent.? Should his own assumption that 1.4 million of the poorest pensioners never claim pension credit be increased proportionally to show an extra 500,000 people by 2014 not claiming what they are entitled to?
Malcolm Wicks: The crucial thing is that the pension credit has been a success. More than 3 million individuals now receive it and the older elderly particularly benefit—the very group who were neglected by the last Tory Administration. In terms of gender, it is important to note that, of those 3 million individuals, 2 million are women, who often have the poorest pension record and whom we are now targeting. I only wish that the hon. Gentleman, instead of being cynical about the pension credit, would get out into the community and help to make it an even greater success.
Mr. Waterson: Do not those figures show the inexorable rise in means-testing projected under this Government? Is it any wonder that a recent survey conducted for Age Concern England showed that nine out of 10 pensioners receiving pension credit were not happy with the pension credit process and that they wanted the Government to provide a higher basic state pension? Will the Minister now look seriously at the Conservative policy of restoring the link with average earnings?
Malcolm Wicks: I will look seriously at Conservative policy when I see a serious policy, rather than the absurd apocalyptic vision that the hon. Gentleman is presenting, according to the national prints today: a ridiculous idea that what he calls a pension crisis—we call it a pension challenge—can be equated with the threat to this country from international terrorism. I think that he should grow up in his analysis.
Child Support Agency
14. Miss Anne McIntosh (Vale of York) (Con): If he will make a statement on the level of error in Child Support Agency decisions. [181901]
The Parliamentary Under-Secretary of State for Work and Pensions (Mr. Chris Pond):
Last year, 85.7 per cent. of decisions on old scheme cases were correct to the nearest penny—the best ever level of accuracy, against the target of 82 per cent.—and 14.3 per cent. contained errors. From a sample of new scheme cases taken in February and March this year, 82 per cent. of decisions were correct to the nearest penny, against an agency target of 90 per cent. We will not be satisfied until we get accuracy to the highest levels that we target.
5 Jul 2004 : Column 544
Miss McIntosh: Will the Minister undertake to take a personal interest in the individual cases of error found among constituents who live in the Vale of York? Such errors are deeply distressing and stressful for the individuals involved and cause a great deal of upset. Will he also look into a case that has just to come my attention where a father who is in receipt of incapacity benefit is, in fact, working for a family firm and not making any payment? That is clearly an error that has not yet been identified. Will he take a personal interest in that case?
Mr. Pond: We understand the hardship and heartache that can be caused when errors occur, both for parents with care and non-resident parents, which is why we are doing everything that we possibly can to ensure that there is as much accuracy as possible. I, or my noble Friend Baroness Hollis, would be happy to talk to the hon. Lady about specific cases to find whether there is anything further that we can do to help to resolve them.
Mr. Gordon Prentice (Pendle) (Lab): We all know of individual case examiners who have found CSA error, after which they often recommend a consolatory payment. I have a constituent whose life was put on hold for more than two years, during which he lost his driving licence, who was offered a consolatory payment of £250. What is the average amount paid to people who have suffered at the hands of an incompetent CSA, and what are the Government going to do about the problem?
Mr. Pond: My hon. Friend will understand that averages are not always terribly helpful in such circumstances because payments relate to the details of each individual case. He will not expect me to comment on those cases. However, we want to ensure that people who have suffered due to errors that the agency should not have made are properly compensated. I extend the offer that I made to the hon. Member for Vale of York (Miss McIntosh). If my hon. Friend would like to discuss individual cases, I am sure that my noble Friend Baroness Hollis or I would be happy to do so.
Mr. Steve Webb (Northavon) (LD): The Minister will know that the independent case examiner deals with the most difficult cases from constituents who have had no satisfaction from the CSA. Last week, she produced her annual report, which showed a 50 per cent. increase in complaints during the first year of the Government's shiny new CSA system. I think that the Minister admitted to the hon. Member for Vale of York (Miss McIntosh) that the new, simple "really-easy-to-do" system had more errors in it than the old system. When will he admit that the new system has failed?
Mr. Pond: I am sure that the hon. Gentleman has read the report carefully, as have I. He will be aware that only 0.15 per cent. of CSA clients complained last year and that more than half the increased number of cases were not accepted for consideration by the independent case examiner. However, she pointed out:
"As the year started, the Child Support Reforms had just come into effect. It is not surprising that the major legislative, system and organisational changes faced by the Agency in implementing the Reforms have engendered a variety of problems and resulting complaints."
There are reasons why there has been a substantial increase—it is actually a 31 per cent. increase—in the number of cases that could be referred to the independent case examiner, but we are not complacent. We have firm targets on improving accuracy, and we intend to do that.
Mr. Peter Pike (Burnley) (Lab): Given the welcome news about the improvement in the accuracy of CSA cases, will my hon. Friend tell me when we will complete the transfer to the new scheme? People are getting agitated while waiting to move from the old system to the new one.
Mr. Pond: We understand the impatience of some clients of the CSA, although there is often a difference of opinion between parents with care and non-resident parents. I understand the impatience of hon. Members for the transfer to a system that we all think will be simpler and more effective. However, my right hon. Friend the Secretary of State has said on several occasions that we will not transfer old cases to the new system until we are absolutely certain that the technology is working effectively. It would be irresponsible to do so before that time, so I cannot give my hon. Friend a date on which it will happen. We will make the transfer as soon as it is responsible to do so.
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