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Pension Credit

3. Mr. Bob Blizzard (Waveney) (Lab): What recent assessment he has made of take-up of pension credit. [57318]

The Minister for Pensions Reform (Mr. Stephen Timms): In November there were more than 2.7 million households in Great Britain receiving pension credit—about 1 million more than received the minimum income guarantee that preceded it. New figures on Thursday showed a further sharp fall in the number of pensioners living below the poverty line as a result of the introduction of pension credit.

Mr. Blizzard: Earlier this year I carried out an exercise for Anglia television, living on the minimum pensioner income of £109.45. An overwhelming majority of the pensioners whom I met felt that they were much better off with pension credit and all the other things that this Government have done for them. However, I urge my hon. Friend to continue to raise pension credit each year in line with average earnings. Thanks to council tax benefit and housing benefit, I did just manage on £109.45, but it was a little tight.
 
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Mr. Timms: I congratulate my hon. Friend on his experience. It is certainly right to say that pension credit is helping a large number of pensioners. Last week's figures showed a fall of 1 million—from 2.8 million to 1.8 million—in the number of pensioner households living below the 60 per cent. of median household income threshold since 1997. That is a remarkable achievement at a time when median incomes have been rising quickly thanks to the success and stability that we have seen in the economy. My hon. Friend will be pleased to hear that pension credit will be uprated to £114 from next month, and uprating will continue to be in line with earnings until at least 2008.

Mr. Nigel Dodds (Belfast, North) (DUP): On the subject of take-up of pension credit, on Thursday the Department for Social Development published figures showing that annually £221 million of pension credit goes unclaimed by up to 60,000 pensioners in Northern Ireland. Reasons outlined by those who work in this area are confusion and lack of information. Will the Minister tell the House that more will be done, targeting information at those who are entitled to claim but do not?

Mr. Timms: Yes, I can certainly tell the hon. Gentleman that we are doing a great deal to increase the take-up of pension credit. As I said, there are now more than 2.7 million pensioner households in Great Britain receiving help from pension credit. The Pension Service has sent out 1.5 million mail shots in the past six months and attracted a good response. This year, Pension Service staff will have made 800,000 home visits. I have no doubt that similar arrangements are being made in Northern Ireland, and the figures released on Thursday showing a sharp fall in the number of pensioners living below the poverty line, just in the year following the introduction of pension credit, show how successful the policy has been.

Michael Jabez Foster (Hastings and Rye) (Lab): Scaremongering reports in the press recently suggested that as a result of mistakes that have happened in the system, pensioners will be asked to pay back money. Does my hon. Friend agree that, if they have not made mistakes in their submissions, no one will be made to pay back money as the result of official error?

Mr. Timms: Nobody can be compelled to pay back money as the result of official error. As my hon. Friend rightly suggests, the Conservative party, I am afraid, has been guilty of irresponsible scaremongering, and I hope that we will hear the Conservatives make an apology today to pensioners who have been unduly alarmed. Based on what Conservative Members said, it was reported on Friday that millions of pensioners were being written to, whereas the actual number last year was 76. If it is now Tory policy to frighten pensioners with false claims of that kind, it is just as well that we have found out.

Mr. Philip Hammond (Runnymede and Weybridge) (Con): In the hon. Gentleman's judgment, would a long, complicated and intrusive application form, low levels
 
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of take-up, poor understanding of entitlement by claimants and high levels of error in payment constitute the elements of a well-designed benefit?

Mr. Timms: The hon. Gentleman will have seen the figures on Thursday, showing a further sharp reduction in pensioner poverty as a direct result of pension credit. I am pleased that he has not sought to defend the hon. Member for Bury St. Edmunds (Mr. Ruffley), whose claims were indefensible, but there is no doubt that we have seen a very sharp reduction in pensioner poverty as a direct result of pension credit. That is what it is for, and that is what it is successfully delivering.

Mr. Hammond: I am interested to hear the Minister of State's response. Lord Turner has calculated that 70 per cent. of pensioners will come within the pension credit means test by 2050 if nothing changes. Does the Minister agree that a halt to the spread of means-testing is an essential prerequisite to an effective reform of the pension system—and if so, can he tell the House whether, as far as he is aware, his right hon. Friend the Chancellor now shares that analysis?

Mr. Timms: Of course, Lord Turner drew attention in his report to the success of pension credit in reducing pensioner poverty. He also said that a large future expansion of means-testing could have a damaging effect on incentives to save. My view is that he made a strong case, and the hon. Gentleman will see the Government's response to those points in our White Paper in the spring.

Asbestos

4. Mr. Stephen Hepburn (Jarrow) (Lab): If he will make a statement on asbestos exposure in the workplace. [57319]

The Parliamentary Under-Secretary of State for Work and Pensions (Mrs. Anne McGuire): The use, importation and supply of asbestos has been banned since 1999. However, building and maintenance workers are still at risk, as they are often unaware that asbestos is present in the fabric of buildings. Consequently, a duty was introduced in 2002 to require employers to identify and manage asbestos. Any work with asbestos must be carefully assessed and planned. Employees carrying out work must be properly trained and work in accordance with plans of work. The Health and Safety Commission has recently consulted on proposals to strengthen worker protection further and implement amendments to the asbestos worker protection directive.

Mr. Hepburn: Is it not a disgrace that employers are yet again trying to renege on their obligations to their ex-employees who worked with asbestos? Will the Minister confirm whether, if the Law Lords up the corridor determine against common decency and fairness, and against the welfare of workers, in a case over the next few days, we will intervene?

Mrs. McGuire: Although I understand my hon. Friend's concerns, it would be inappropriate for me to make any comment on the case now before the Law Lords.
 
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Mark Pritchard (The Wrekin) (Con): Does the Minister agree with the hon. Member for Jarrow (Mr.   Hepburn) that another disgrace is what is happening now with regard to asbestos-related diseases in the workplace—not least with those thousands of personnel who served with the Royal Navy pre-1986 who are unable to get compensation? Is it not a strange idea of fairness when the Royal Navy and the Ministry of Defence will pay people compensation for what happened post-1986, but not for exposure to asbestos pre-1986?

Mrs. McGuire: The hon. Gentleman will be aware that the Ministry of Defence has previously considered some of the issues that he raises—but I will, of course, draw his concerns to the attention of my colleagues in the MOD.

Mr. Michael Clapham (Barnsley, West and Penistone) (Lab): I can tell my hon. Friend that before coming into the Chamber, I joined a demonstration of people outside the Lords involving asbestos groups and widows from all over the country who have lost husbands as a result of mesothelioma. Her Department is to undertake a review of the industrial injuries scheme later this summer. Will she make it part of that review to look at the possibility of introducing a scheme, financed by    insurance companies, to pay compensation to mesothelioma sufferers and their widows?

Mrs. McGuire: I know of my hon. Friend's deep concerns. Only a few weeks ago we had a debate in Westminster Hall highlighting some of the concerns that he has raised again today, which other hon. Members on both sides of the House share. The Health and Safety Commission is consulting on new guidance. I appreciate the fact that my hon. Friend will work to ensure that every effort is made to secure justice for asbestos workers and their families. I assure him that we will look at all ways in which we can make that happen.

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