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7 Mar 2005 : Column 1349
House of Commons Members' Fund (Discretionary Payments)
7.21 pm
Dr. Howard Stoate (Dartford) (Lab): I beg to move,
That this House resolves that pursuant to section 4(4) of the House of Commons Members' Fund Act 1948 and section 1(4) of the House of Commons Members' Fund Act 1957, in the year commencing 1st October 2004 there be appropriated for the purposes of section 4 of the House of Commons Members' Fund Act 1948:
(1) The whole of the sums deducted or set aside in that year under section 1(3) of the House of Commons Members' Fund Act 1939 from the salaries of Members of the House of Commons; and
The motion has been signed by Members on both sides of the House who, as managing trustees, share with me the responsibility of administering the House of Commons Members' Fund, a benevolent fund for former parliamentarians and their widows and widowers. Its main purpose is to make payments, at the discretion of trustees, to former Members and their dependants—having regard to their circumstances—and to make payments as of right to former Members of the House of Commons who were Members before the parliamentary contributory pension fund was established, and to their widows and dependants.
Two motions have been tabled, Mr. Deputy Speaker, and I think it would be helpful if—with your permission—I dealt with them at the same time. The first gives effect to the appropriation of Members' own contributions and the contribution from the Members' estimate to provide funds for discretionary awards. The second provides for inflation-linked increases in payments to beneficiaries of the fund.
The second motion is complicated. For reasons that are not entirely clear to the current trustees, the House has fallen out of the habit of passing the necessary motions for the Members' fund. Similar motions were last tabled by the right hon. Alf Morris, now Lord Morris of Manchester, in March 1994. I am privileged to follow in the footsteps of such a campaigner for the rights of the disadvantaged and disabled. Unfortunately, it seems that the annual resolutions required by legislation have not been put to the House since that was done by Lord Morris 11 years ago—almost to the day. Along with the other trustees, I now wish to put that right.
The beneficiaries of the fund are elderly former Members or their surviving spouses. Many of them, unlike current Members, are not entitled to the benefits available from the parliamentary contributory pension fund because they left the House before 1964. Others—widows and widowers of former Members—have their PCPF benefits topped up. Still others receive discretionary payments because of hardship and their personal circumstances. The discretionary payments can be recurring to improve a person's standard of living, or they can be one-off grants to improve quality of life—perhaps to facilitate a minor home adaptation.
David Taylor (North-West Leicestershire) (Lab/Co-op):
When the then Member for Bassetlaw left the House, he set up an organisation to cater for the needs
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of former Members and their widows and widowers. It seemed clear from an article published at the time that little effort was being made to establish where Members went after leaving the House, or where their widows or other dependants went. Is the fund reactive, or will it seek out those who would benefit from its assistance?
Dr. Stoate: That is a good point. The fund will seek out people in hardship when that is possible, but it relies very much on existing Members who may have access to the details of former Members. As I shall make clear later, we have improved access to the fund, and also improved the information that can make claiming easier than it has been in the past.
Mr. Eric Martlew (Carlisle) (Lab): As a fellow trustee, my hon. Friend may recall that we recently advertised in a journal for former Members. We wanted to alert people who would not know of the fund. But I think that the proposed system would be very effective, and should operate annually.
Dr. Stoate: My hon. Friend is right, and I hope that the fund will continue to operate proactively as far as possible.
Mr. Tam Dalyell (Linlithgow) (Lab): I have been a Member of Parliament for a long time, and I thank the trustees for the work that they do on behalf of us all.
I agree with my hon. Friend that it is often difficult to seek people out. It is less a question of pride than one of shyness, or not wanting to approach the fund. It should be made clear that there is nothing dishonourable in such an approach from people who, in many cases, are in need.
I am sometimes taken aback and embarrassed when old colleagues or their relatives are in financial difficulty, given that, morally and legally, they are certainly entitled to benefit.
Dr. Stoate: I am grateful to my hon. Friend for his great wisdom and knowledge. During his time in Parliament, he has done a great deal to bring such matters to our attention. He is right: some of the cases brought to us involve people in incredible hardship, living in straitened circumstances on very modest incomes. Not until they are hit by a disaster such as a leaking roof or a central heating breakdown and find that they simply cannot pay the bill do they even consider applying to the fund. We are anxious to track down such cases when that is possible, and to help however we can. That is one reason for the motion: we must regularise our affairs to ensure that we keep up with the times as far as we are able.
The fund currently has about 120 beneficiaries in any one year. The average value of the recurring payments is less than £2,000 per annum. A handful of one-off grants are made each year, with an average value of only about £5,000. As my hon. Friend implies, relatively small sums can make a great difference in some circumstances.
The first motion gives effect to appropriation of the contribution that all Members make from their salaries each month, and the sum of £215,000 from the Members' estimate, referred to in the motion as the Treasury contribution. The appropriations will enable
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the trustees to continue discretionary awards to ex-Members and their dependants, having regard to individual circumstances.
The second resolution achieves three things. First, it confirms the current rate of benefit for those in receipt of recurring payments from the fund. The increases are linked to inflation, and the amounts for April 2004 are some 2.8 per cent. higher than for the preceding year. Secondly, it regularises the position in respect of the years between 1995 and now by applying the relevant inflation figure each year to the benefit amounts. I should add that no beneficiaries have missed out on their increases during that period. Thirdly, paragraph (6) looks forward to future years, allowing an inflation-linked increase to be applied without further reference to Parliament. The trustees see no need to ask the House each year to approve inflation-linked increases for such a straightforward matter.
The fund is governed by a variety of Acts that stipulate the basis on which payments can be made, and the amounts payable. Some payments are known as "as of right payments"; others are awarded at the trustees' discretion. This motion and the increases mentioned therein apply to the different types of payment allowable. It is an over-complex legal arrangement—a point that the trustees will consider at their next meeting—and that might be one reason why former Members are sometimes put off applying to the fund. The current legislation is extremely complicated; indeed, even the trustees have great difficulty in interpreting the rules. The system needs regularising and the trustees hope to do so in the coming period.
The trustees are very appreciative of the fact that Members continue to bring to their attention information on the needs of former Members and their dependants now living in straitened circumstances. In addition, we have taken steps to improve the information available on the fund, so that it might more easily come to the attention of former colleagues. The trustees have also improved the application process, so that fairness and consistency are built into the system.
Finally, I pay tribute to my fellow trustees for the work that they undertake on the fund's behalf, particularly the chairman, the right hon. Member for Hitchin and Harpenden (Mr. Lilley), who unfortunately cannot be here this evening. I also thank the staff of the operations directorate of the Department of Finance and Administration, which handles the fund's administration. I want to thank in particular Terry Bird, secretary to the fund, who has given me enormous help in preparing for tonight's debate, and Ms Jane Trew, who deals with all the applications received with considerable skill and tact and brings them before the trustees for their consideration.
7.31 pm
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