Topical Questions

T1. If she will make a statement on her departmental responsibilities.

Today I am delighted to confirm that 10 million workers have now been automatically enrolled into a workplace pension. Since 2012 this policy has been transforming savings culture. The increase in pension uptake has been particularly marked in younger workers, women and those on low earnings. For many, a private workplace pension was once a pipe dream. Thanks to the action we have taken, it is now a reality. Today I am also bringing forward plans to strengthen the Pensions Regulator to protect final salary pensions, including a new prison sentence of up to seven years in certain circumstances. These measures show that the Government are on the side of workers saving for retirement and that we will protect their incomes from the reckless behaviour of a small number of unscrupulous bosses.

I have many female constituents who are self-employed or on zero-hours contracts. They do not have a set regular monthly wage, yet the DWP insists on a four-week assessment period to assess their earnings and determine their benefits. Those women are being forced into hardship by sudden cuts to their benefit payment and a lengthy appeals process, which can take up to three to four months. Why can the DWP not recognise the situation that those on fluctuating incomes are put in and revise its guidelines accordingly?

I hope the women the hon. Lady refers to are engaging with their work coaches, who try to provide a tailored service to enable individuals to realise how much better supported they are under this system. I would also point out that female employment is at a record high—jobs and support are out there. With the help of work coaches, we want to ensure that the women she refers to do not just get the average jobs they may start on, but have a real opportunity to develop careers.

T6. I join the Secretary of State in welcoming the fantastic news that 10 million people are involved in auto-enrolment. Could she tell us a little bit more about the measures the Government will be taking to enable them to increase their savings once they are in auto-enrolment?

I thank my right hon. Friend for his support. In his constituency, 21,000 people and 4,290 employers are now auto-enrolled. It is working well in his constituency. In April, we will increase the amount of contribution from employers.

Social security sanctions can be detrimental to the health and wellbeing of claimants, and, in extreme cases, push people into destitution. The Government’s response to the Work and Pensions Committee report was shocking. Apparently, they are only prepared to consider increasing the length of sanctions, not reducing them. What has happened to the concept of compassion? Will the Secretary of State end the Government’s cruel and counterproductive sanctions regime?

I do not recognise the hon. Lady’s description. I have been around jobcentres. I always make a point of speaking to work coaches, asking them about the way they impose sanctions and when. They always say to me that it is a last resort only done after a series of engagements. This is a personal choice that work coaches make. They have a lot of discretion and in my experience they are using it correctly.

T8. How will the Government ensure that the roll-out of universal credit continues to support the benefits of being in work, while providing the required flexibility for people who are often moving through life-changing circumstances as we support them back into the workplace?

I am happy to say that that is exactly the aim of universal credit: to ensure that it helps people while they are in work, gives them the additional funds they may need, and ensures that the taper rate, the amount of tax they pay as they move into more employment or a higher level of pay, does not adversely affect their ambitions and their ability to earn more.

The Government are about to enact an element of policy passed seven years, two Parliaments and two Governments ago without a debate or a vote. Mixed-age pensioner couples are set to lose £7,000 from their household income if the changes to pension credit go ahead. Surely, with the Joseph Rowntree Foundation saying that 300,000 more pensioners are in poverty now compared to 2012, the Secretary of State must seek a new mandate from this House for these cuts and have a debate and a vote?

The reality is that the absolute poverty rate for pensioners has fallen to a record low, with over 200,000 fewer pensioners in absolute poverty before housing costs. The state pension has also increased by over £1,000 in cash terms since 2010 by reason of the triple lock, as well as many other reasons.

T9. Will the Minister explain how today’s announcement will deter reckless bosses from mismanaging pensions?

My hon. Friend’s constituents in Southport will be reassured that the Government are cracking down on the mismanagement of existing defined benefit pensions, so that his constituents can ensure they get the pensions they deserve and have saved for.

T2. European Union citizens who have worked in this country primarily through agencies are at risk of failing the habitual residence test although they have lived here for many years, because their employment might not have been continuous. Will the Minister meet me to outline what protections are available for those EU citizens?

Yes, of course I will meet the hon. Lady. As she knows, there are set criteria in place before people are able to claim benefits or universal credit, but I am of course very happy to meet her.

T10. Last week, I was interviewed on Bolton FM—[Interruption.] Last week, I was interviewed on Bolton FM by a group of young carers who make an immense contribution, but who are concerned about the level of support they receive. Will my right hon. Friend outline what support is available?

I am sure that it was a fantastic interview, which we will all be looking to hear in the archives online. As set out in the earlier questions, we are doing a huge amount to support care leavers. I am very grateful for the support of charities such as the Children’s Society and Barnardo’s, who are helping to shape that. Only last week, I met a group of care leavers from the Big House charity in London, who were able to give me their personal wish list of things that we can do. We will continue to work with care leavers, charities and support organisations so that they can have the maximum opportunities, which many take for granted.