---

Mortgage Rates

11. Mr. Peter Pike (Burnley) (Lab): What assessment his Department has made of the effect on the housing market of recent mortgage rate increases. [190547]

Mr. Boateng: Interest rates remain low by historical standards, ensuring that mortgage interest payments also remain historically low. Households' total interest payments are now 7.6 per cent. of disposable income, compared with a peak of over 15 per cent. in the early 1990s.

Mr. Pike: I thank my right hon. Friend for that answer. It is to the Government's great credit that we have seen low interest rates and low mortgage payments, which are so important. He knows that we have had to do something to stop the increase in house prices in London, which were escalating at too high a rate. Does he recognise that in my constituency, which I know he knows well, we have a problem with low demand, and that we do not want that to be affected by increases in interest rates?

Mr. Boateng: On previous occasions, my hon. Friend raised his particular concerns, which I know are shared by his constituents, about housing in Burnley. Interestingly, mortgage interest rates are only one factor impacting on the housing market in his constituency. As research has shown, in the north-west there remains a need to tackle underlying problems of poor quality and insufficient choice in housing. That is why the Government are ensuring that we are investing nearly £7 million this year specifically in housing in Burnley, and that is on top of the investment being leveraged in by the East Lancashire housing market renewal pathfinder, which amounts to some £15 million over two years. I will be visiting—next week, I believe—the Burnley pathfinder, where I look forward to seeing for myself the good work that I know is being done.

Ms Sally Keeble (Northampton, North) (Lab): Is my right hon. Friend looking at any particular measures to
 
14 Oct 2004 : Column 422
 
help first-time buyers, particularly in my constituency where there are real difficulties now because of house prices?

Mr. Boateng: There continue to be real concerns about affordability in relation to the housing market. That is why the Deputy Prime Minister is working on a long-term national goal for affordability in the housing market. Reforms to the planning system are being introduced to facilitate and help with that and we intend to consult on those changes in the coming year. It has to be about long-term solutions, but in the short to medium term we are also of course taking steps to improve access to the housing market for key workers.

It is important to remember that since 1997 there have been over 1 million new households as a result of the stability of the housing market, which reflects the underlying stability of the economy. People have more money that they are able to spend on housing, and that money is being spent, and spent in a way that improves not just people's access to housing but the quality of housing available to those people who will never be able to buy, because they are important too.

Financial Advice and Services

12. Mr. Nigel Beard (Bexleyheath and Crayford) (Lab): If he will reform the rules governing the delivery of financial advice and services through the workplace. [190548]

The Financial Secretary to the Treasury (Mr. Stephen Timms): Yes we will, as part of the two-year review of the Financial Services and Markets Act 2000. We have had a large and supportive response to the consultation on our proposals, which concluded in May. I will announce the key outcomes of the review shortly. The changes will make it easier for employers to promote their pension scheme in the workplace, subject to safeguards.

Mr. Beard: I thank my hon. Friend for that reply. Is he aware that in the evidence to the Treasury Committee on restoring confidence in long-term savings, there was widespread agreement on the advantages of being able to promote pension and savings schemes in the workplace, but at present employers are prevented from doing that? An employer cannot, for instance, promote a stakeholder pension scheme to which they contribute, although a very similar occupational scheme could be promoted. Does my hon. Friend agree that unless these legal inhibitions and anomalies are removed, the pension and savings issues raised by the Turner commission report this week cannot be properly addressed?

Mr. Timms: My hon. Friend makes a very important point. I had noticed that that point had been made in the evidence and I pay tribute to him for his work on the Select Committee and on the all-party group on financial markets and services. Research by the Association of British Insurers has shown that about 40 per cent. of employers feel inhibited from promoting their schemes by the current financial promotion regime. We are proposing an exemption from the regulations for employers so that they can provide
 
14 Oct 2004 : Column 423
 
advice to employees on their pensions without having to be regulated by the Financial Services Authority, along the lines that my hon. Friend proposes. I also take his point about urgency. I want to announce the outcome of the two-year review before Christmas and I hope that the regulations will be in place by next spring.

Mr. David Laws (Yeovil) (LD): Is it not difficult for advisers to give good financial advice when Government policy keeps changing so rapidly, particularly in areas such as pensions? For example, can the Minister give people any guarantee that the pension credit will still be around in 10 years' time?

Mr. Timms: I think the hon. Gentleman would acknowledge that there have been enormous gains from the economic stability that we have enjoyed since 1997, including confidence for people making their preparations for the future. The pension credit has been an enormous success and I can certainly say to him that, subject to this Government's being re-elected, we will maintain the policy that has done so much to increase the incomes of the less well-off pensioners.

Pensions and Saving

13. Mr. Damian Green (Ashford) (Con): If he will make a statement on pensions and saving. [190549]

The Financial Secretary to the Treasury (Mr. Stephen Timms): Since 1997, the Government have provided £80 billion in support for pensions and saving. The pension credit supports more than 3 million of the least
 
14 Oct 2004 : Column 424
 
well-off pensioners, ending the scandal of pensioners forced to live on as little as £69 a week. With stakeholder pensions, individual savings accounts and, from next year, the child trust funds, we are delivering new incentives, simpler products and better information for pensioners and all savers.

Mr. Green: A few minutes ago, the Minister called for a mature, cross-party debate on pensions. I agree with him, and in that spirit I commend to him the words of the Secretary of State for Work and Pensions, who said in the House yesterday that the means-tested pension credit could not continue indefinitely. It is welcome that the Secretary of State is moving into the consensus that already contains the Conservative party, other Opposition parties and many outside bodies with an interest in pensions. So may I invite the Minister today to join that widening consensus—that progressive consensus, as the Chancellor would, no doubt, call it—and agree with the Secretary of State for Work and Pensions that the means-tested credit will go?

Mr. Timms: I was present at the debate yesterday. Of course, my right hon. Friend the Secretary of State—who made an excellent speech on the subject, by contrast with the speech made by the hon. Member for Havant (Mr. Willetts), who led the debate for the Conservative party—was talking about the future trajectory of indexation, which is a rather different matter from the one to which the hon. Gentleman refers. However, I can tell him that our determination to increase the income of the least well-off pensioners will continue. We have seen very dramatic improvements as a result of the pension credit, and I want that progress to be maintained.
 
14 Oct 2004 : Column 423
 

 
14 Oct 2004 : Column 425
 

Business of the House

12.31 pm

Mr. Oliver Heald (North-East Hertfordshire) (Con): Will the Leader of the House please give us the business for next week?

The Leader of the House of Commons (Mr. Peter Hain): The business for next week will be as follows:

Monday 18 October—Opposition Day [19th Allotted Day]. There will be a debate entitled "Government's Failure on Crime", followed by a debate entitled "Government's Failure to Tackle Climate Change". Both debates arise on an Opposition motion.

Tuesday 19 October—Remaining stages of the Companies (Audit, Investigations and Community Enterprise) Bill [Lords].

Wednesday 20 October—Consideration of Lords Amendments to the Armed Forces (Pensions and Compensation) Bill, followed by a debate on the national service framework for children, young people and maternity on a motion for the Adjournment of the House.

Thursday 21 October—A debate on defence in the world on a motion for the Adjournment of the House.

Friday 22 October—The House will not be sitting.

The provisional business for the following week will be:

Monday 25 October—Opposition Day [20th Allotted Day]. There will be a debate on an Opposition motion. Subject to be announced.

Tuesday 26 October—A debate on programming and other House business.

Wednesday 27 October—Remaining stages of the Domestic Violence, Crime and Victims Bill [Lords].

Thursday 28 October—Second Reading of the School Transport Bill.

Friday 29 October—The House will not be sitting.

I should like to inform the House that business in Westminster Hall will be:

Thursday 28 October—A cross-cutting question session on antisocial behaviour, followed by a debate on the United Kingdom in the United Nations.

Thursday 4 November—A debate on the report from the Foreign Affairs Committee on foreign policy aspects of the war against terrorism.

Thursday 11 November—A debate on the western Balkans: the challenges of post-conflict development.

As the House will have noted, I have announced the Second Reading of the School Transport Bill for Thursday 28 October. The House will also wish to know that we intend to introduce the Gambling Bill and, subject to the progress of business in the Lords, the Disability Discrimination Bill. All three Bills will be carried over into the next Session.

With permission, Mr. Speaker, I should like to announce the recess dates for the Commons calendar for the Session 2004–05. In doing so, I should reinforce my previous warning to the House that it is in the interests of everyone to treat the following dates as very provisional. Clearly, they are subject to the progress of
 
14 Oct 2004 : Column 426
 
business and I am sure that hon. Members on both sides of the House and staff will bear that in mind before making any plans to travel abroad.

The dates are as follows. For Christmas, the House will rise at the close of business on Tuesday 21 December and return on Monday 10 January. The constituency week will start at the close of business on Thursday 10 February, with the House returning on Monday 21 February. The House will rise for the Easter recess on Thursday 24 March and return on Monday 4 April. For the Whitsun break, the House will rise at the close of business on Thursday 26 May and return on Monday 6 June. The House will rise for the summer recess on Thursday 28 July and return on Monday 10 October.

The printed calendar will be available in the Vote Office for next week's business statement. However, details of the calendar are now available to our constituents, and to Members, on the website of the Leader of the House—www.CommonsLeader.gov.uk.

---