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House of Commons
Session 2009 - 10
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Public Bill Committee Debates



The Committee consisted of the following Members:

Chairman: Dr. William McCrea
Baker, Norman (Lewes) (LD)
Beresford, Sir Paul (Mole Valley) (Con)
Blizzard, Mr. Bob (Lord Commissioner of Her Majesty's Treasury)
Drew, Mr. David (Stroud) (Lab/Co-op)
Heath, Mr. David (Somerton and Frome) (LD)
Jones, Lynne (Birmingham, Selly Oak) (Lab)
Keeley, Barbara (Parliamentary Secretary, Office of the Leader of the House of Commons)
Lilley, Mr. Peter (Hitchin and Harpenden) (Con)
McCafferty, Chris (Calder Valley) (Lab)
Malins, Mr. Humfrey (Woking) (Con)
Moon, Mrs. Madeleine (Bridgend) (Lab)
Riordan, Mrs. Linda (Halifax) (Lab/Co-op)
Robathan, Mr. Andrew (Blaby) (Con)
Ryan, Joan (Enfield, North) (Lab)
Truswell, Mr. Paul (Pudsey) (Lab)
Vara, Mr. Shailesh (North-West Cambridgeshire) (Con)
Gosia McBride, Committee Clerk
† attended the Committee

Ninth Delegated Legislation Committee

Wednesday 9 December 2009

[Dr. William McCrea in the Chair]

Motion in the name of Ms Harriet Harman relating to the House of Commons Members’ Fund

2.30 pm
Mr. Peter Lilley (Hitchin and Harpenden) (Con): I beg to move,
That the Committee has considered the motion, 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 1 October 2009 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
(2) The whole of the Treasury contribution to the Fund.
It is a privilege to serve under your chairmanship, Dr. McCrea. The House of Commons Members’ Fund is, in essence, a benevolent fund for Members and their dependants who have fallen on hard times and need financial assistance. Currently, the fund has about 73 beneficiaries, mostly either very elderly former Members or more frequently their surviving widows and other dependants. The motion concerning appropriation is brought forward each year in line with the strange legislative requirements of the original Acts and it enables the trustees to continue making awards to ex-Members and their dependants, having regard to their individual circumstances.
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. The discretionary payments can be recurring to improve a person’s standard of living or they can be one-off grants to improve the quality of life. “As of right” beneficiaries are such because they are either not entitled to a parliamentary pension because they left the House before 1964 or are widows and widowers of former Members who have a parliamentary contributory pension fund benefit below the current specified level, and the fund makes up the difference. The average value of the recurring payments is about £2,400 per annum. A handful of one-off grants are made each year, with an average value of only about £4,000. Relatively small sums like that can make a great difference in some circumstances.
As some hon. Members will be aware, an extensive review of the fund was completed in 2007 and conclusions on the review have been reached and endorsed by the trustees and the Members Estimate Committee. However, implementation of the changes would require alterations to primary legislation. New legislation in line with the conclusions of the review would move the quasi-pension payments to the Treasury or another body. That would eliminate the need for a Treasury contribution to the fund and that part of the annual appropriation motion would cease to be necessary.
I am informed, however, that it might be difficult to find time within the current parliamentary term for the legislation, although I very much hope that it will be possible in some way to get the whole review implemented as soon as possible so that the then streamlined fund can operate on the reviewed basis in future Parliaments. Finally, I pay tribute to my fellow trustees for the work that they undertake on the fund’s behalf. It is not a hugely onerous task, but it is necessary for the House as a whole, and it takes up Members’ valuable time. Details of the fund’s work can be found in its annual report and accounts that are laid before the House each year.
2.33 pm
The Parliamentary Secretary, Office of the Leader of the House of Commons (Barbara Keeley): I add the Government’s support to the motion. It is an annual legislative formality, which allows contributions from Members’ salaries and a sum from the Treasury to be used both as of right and in discretionary payments to former Members, their spouses and dependants, having regard to their circumstances. The fund provides an invaluable service to former Members who have financial need. Indeed, we have heard that the sums involved are not very large, but I understand that they make a real difference to the lives of those former Members, and their widows and dependants—the 73 beneficiaries who have been mentioned.
I understand the need to make the structural changes recommended in the review by John Stoker and Lord Burnett. It is really just a matter of finding the best way forward, and I will have further discussions on that best way forward. I wish to conclude by taking the opportunity to thank the right hon. Member for Hitchin and Harpenden and the other trustees to the Members’ fund. I hope that members of the Committee will support the motion.
2.34 pm
Mr. Shailesh Vara (North-West Cambridgeshire) (Con): May I say what a pleasure it is to be serving under your chairmanship, Dr. McCrea. I take this opportunity to support the motion and, in so doing, also commend my right hon. Friend the Member for Hitchin and Harpenden as well as his fellow trustees for doing a tremendous amount of work. They do it quietly and efficiently, and it benefits a lot of people who are in desperate need of the funds. The funds tend to be quite modest, but as we have heard, they make a substantial change in the recipients’ quality of life. I hope that the Government will be able to find the time to ensure, as my right hon. Friend has said, that the process improves. I have nothing further to add except to again thank my right hon. Friend and his colleagues.
2.35 pm
Norman Baker (Lewes) (LD): I add the Liberal Democrats’ support to the motion and commend the work of those who have been involved in bringing it to this stage.
Question put and agreed to.
2.36 pm
Committee rose.
 
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Prepared 10 December 2009