Dame Harriett Baldwin
MP for West Worcestershire · Conservative · United Kingdom
“I welcome the Chancellor to his new role. I paid close attention yesterday to the long speech he made to reset the narrative and drive growth Britain. In paying tribute to his predecessor, will he recognise that she left the highest tax burden on record? Instead of postponing the words he could utter to my hon.”
“I welcome the new Prime Minister to the Dispatch Box. I note that in his statement he referred to the biggest issues facing the country as being “the economy and the cost of living crisis”. Will he accept that one of the things that has damaged our economy and caused prices to be higher is the tax-and-spend Budget in November 2024?”
“Could the Leader of the House make a commitment that the new Chancellor of the Exchequer will come to the House on the first day we are back from recess?”
“With a stroke of his Whitehall pen, the Secretary of State has just abolished Malvern Hills district council, Worcester city council, wonderful Wychavon district council and Worcestershire county council. He said in his statement that this is about making “real improvements to people’s lives and…communities”.”
“In recent weeks in West Worcestershire, I have met local police and the police and crime commissioner; the police and crime commissioner is being abolished, and the police are being reorganised. I have met the local health commissioners; they are being reorganised, and Healthwatch is being abolished.”
“Will the Leader of the House confirm that, given that the other place is sitting next week, there is nothing to stop him tabling a business statement to enable this House to sit next week? Given the enormity of the events happening in the Government next week, does he not think that would be a good idea?”
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“It would be helpful to use the debate to clarify the fact, which does not seem to have got through loud and clear to certain segments of the media, that the Work Experience programme is a voluntary one for people under 24. It changes the unfortunate situation that existed under the previous rules. We have heard that the BBC, ITV and The Guardian offer work experience, often in four-week tranches. Under the previous rules, a young person looking for work who was fortunate enough to be offered work experience by one of those organisations would have to give up jobseeker’s allowance for taking work experience that lasted longer than two weeks. That is profoundly unfair, because we all know, as my hon.”
“The producer said to me, “We are going to have one young person with a good experience of work experience, and one with a bad experience, and we would like you to come and debate it.” I thought it seemed sensible, but when I turned up there were three people, one of whom was a young person who had had a positive experience of work experience. However, there was also a 48-year-old gentleman who was clearly either in some form of the Work programme, or had some other experience, and a 40-year-old gentleman. It did not help—I do not know whether it was deliberate or accidental—that the producer had accumulated three people with experience of different aspects of back-to-work activity.”
“Thank you for calling me to speak, Mr Howarth, despite the fact that I have an awful cold. I hope to get through my speech without coughing too much. I congratulate my hon. Friend the Member for Nuneaton (Mr Jones) on securing the debate. I asked for a debate on the same matter in business questions recently. It is important to use this opportunity to clarify the terminology, which I shall do in the form of a media guide, as it were. I hope the Minister will confirm my understanding of the categories. The three that get most confused are Work Experience programme, the Work programme and workfare. My experience of the media confusion came when, like my hon. Friend the Member for Great Yarmouth (Brandon Lewis), who is a colleague on the Select Committee on Work and Pensions, I was invited on to “Newsnight”.”
“I thank the hon. Lady for giving way. I am a bit disappointed that this is becoming a political rant, when there is so much to celebrate about women in this country. Does she think it is right that I receive child benefit when I earn £65,000 a year? Will it be in her party’s manifesto at the next election to bring it back?”
“Is my hon. Friend going to make the point that this problem will keep on increasing? We are all living longer and one in three girls born today can expect to live to the age of 100.”
“Can the Minister confirm that, under the current system, a single parent who is offered more than 16 hours’ work a week by his or her employer would face a marginal withdrawal rate of up to 97%, and that such anomalies will disappear with the change to the universal credit?”
“Will the Prime Minister confirm that, at this meeting and other European meetings, political leaders need to have a clear idea of what is in their national interests, that decisions often have to be taken in the middle of the night on whether to participate in treaties, and that we cannot dither for weeks afterwards about whether to sign them?”
“Following yesterday’s excellent news on the increasing number of companies joining the coalition’s voluntary work experience programme for young people, may we have a debate on this topic so that certain sections of the media, which seem to be confused about voluntary work experience for young people, workfare and the Work programme can be enlightened?”
“I thank the hon. Gentleman for giving us the range of examples. Is it his understanding that it is not his party’s policy to fight the next general election on a promise to revert to RPI?”
“We had a terrific private sector-led system, and workers in the public sector were also in very good schemes. I believe that Britain’s leadership in that regard began to unravel in the first Labour Budget after the general election in 1997, when the then Chancellor imposed a tax on pension schemes. It was pretty apparent at the time that that would undermine a private sector pension system which, as I have said, used to be the envy of the world.”
“Thank you for allowing me to speak in this important debate, Madam Deputy Speaker. I congratulate the hon. Member for Hayes and Harlington (John McDonnell) and the Backbench Business Committee on organising the provision of parliamentary time for discussion of this topic. Having been a professional pension fund manager myself, I leapt at the opportunity to speak today. It is not often that, on a Thursday afternoon, we experience the excitement of discussing the difference between the geometric and the arithmetic mean in indexing. I thought I would put in a few words, as I also represent a constituency that is inhabited by a higher than average number of pensioners. As a former pension fund manager, I recall the days when Britain had a pension fund system that was the envy of the world.”
“That contrasts with the position in the public sector, in which about 5.5 million of the 6 million employees are members of pension schemes. That is the proportion that we should aspire to in terms of pension provision throughout the work force. I know that our pensions Minister aspires very much towards movement in that direction.”
“The hon. Gentleman has clearly forgotten the imposition of a tax on private pension schemes in that first Labour Budget of 1997, which I think many people realised at the time would be a recurrent year-on-year tax that would lead to the erosion of private pension funding over time. Private companies then acted very rationally. Many of them ceased to offer defined benefit pension schemes. Let me give some figures which I take to be rough estimates. There are approximately 29 million people in Britain’s work force today, 23 million of whom are employed in the private sector. I was shocked to learn that only 3.2 million of those 23 million were currently active members of a pension scheme in which the employer makes any contribution.”
“In that instance, we decided that we did not want that so we maintained a zero rate, but people still complained to me that their pension had not increased that year.”
“CPI is the inflation measure that we have instructed the Bank of England to target and to average out over time. I therefore think the Bank of England should, perhaps, consider moving its own pension scheme on to a CPI link. That scheme is currently linked to RPI, but it would increase everybody’s confidence in the Bank’s long-term ability to meet its CPI target if it were to adopt that measure for its pensions. That is a cheeky aside, however. Neither the RPI nor the CPI measure will ever accurately reflect the inflation that pensioners experience. We have talked about the fact that mortgage interest is not included in the RPI basket. Interest rates fell dramatically in 2008 and that led to the RPI being negative in 2009—it was minus 1.4%. Do we want to follow an index that results in people having reduced income in some years?”
“Otherwise, we will be woefully under-pensioned in future. We are currently a very under-pensioned country. It is tragic that our country has eroded its position in respect of pensions so much. In 1997, we were one of the leading pension countries in the world, but we now have a lot of catching up to do. I welcome all the steps the pensions Minister is putting in place to improve the situation. Having mentioned the triple lock and auto-enrolment, I shall now make a few points about the difference between CPI and RPI. We all know that inflation is the big enemy of the pensioner, as nothing erodes retirement income more. Lower inflation results in less erosion of retirement income, of course, but all pensioners must understand that they need to protect their fixed retirement income from inflation.”
“Of course, we need to aspire to be a country where everyone has an additional employment-related pension. About 12 million people are already pensioners, and we welcome the fact that their inflation-linked increase will rise by over 5% this year: I believe that that is the largest cash increase in the history of the state pension. This Government’s budgeting decisions are therefore focusing on the needs of current pensioners, and for future pensioners the largest employers will from October start to auto-enrol their employees into employment-linked schemes. That measure enjoys cross-party support, and it will mark the beginning of a savings programme that is estimated to bring in a further 5 million to 8 million pension savers and add a substantial sum to the savings of this country.”
“Personally, I aspire to a future in which all Britain’s pensioners can rely on a secure retirement income, which will come from three main elements. I welcome measures taken by the pensions Minister and the Chancellor to provide a triple-lock guarantee: the linking of the basic state pension, and increases in that pension, to CPI, average earnings or 2.5%, whichever is the highest. That, I think, is an extremely robust foundation. As the Minister knows, I look forward to the inclusion in the Queen’s Speech of further legislation simplifying the state pension system, eliminating the means-testing deterrent to saving and creating a stable, predictable and inflation-linked state pension that will be the foundation for a basic level of income in retirement.”
“That has also been rising sharply. Neither CPI nor RPI accurately represent pensioners’ experience of inflation.”
“I do not think that either the CPI or the RPI basket accurately represents inflation as experienced by pensioners. Most of them will have paid off their mortgage by the time they retire. Also, the CPI basket does not include council tax. Following the 100% increase in council tax under the previous Government, many council taxes have been frozen for the past few years. That is helpful for pensioners, as council tax represents a substantial proportion of their outgoings. Food also represents a significant element of pensioners’ costs, and food inflation has been very high recently. Over the past 20 or 30 years, however, it has been largely on a downward trend, and food now represents a smaller proportion of overall costs than it did in the past. The cost of fuel and of heating the home is also an important factor for pensioners.”
“They serve to put the overall public sector pension liability on a more sustainable footing, which is important for all future public sector workers. They also make the bargain between those with no pension provision and those who enjoy final salary, inflation-linked pensions fairer. The Chancellor and the pensions Minister have faced a series of difficult choices, and they have made the right decisions. I believe the new measures will lead to more people across the work force saving for a comfortable retirement, which is an objective we all want to achieve.”
“I certainly accept the point that CPI implies that people are active shoppers. Most of the pensioners I have come across are extremely good active shoppers, however. Every individual faces a unique rate of inflation. We have given the Bank of England the task of managing the CPI rate. It is therefore sensible to use that measure for assessing pension increases. We have talked about the high proportion of Britons who do not have any pension savings for retirement, the fact that many private companies have closed down their pension schemes, and the fact that Britain has become woefully under-pensioned. Giving private sector companies the flexibility to shift their index and linking pensions to CPI are both wise policies.”
“Foundation trusts will be given the freedom to increase private services and patients will have the right to choose any provider that meets NHS standards. Was the Secretary of State as surprised as I was to learn that that was in the Labour party’s 2010 manifesto?”
“Last week in Ethiopia with Save the Children, I saw at first hand how malnutrition is stunting the growth of the world’s poorest children. Does the Prime Minister agree that the UK has a real opportunity to lead the international debate in tackling malnutrition, which will help the growth of the world’s children, and economic growth as well?”
“Has the right hon. Gentleman read the article in The Times today by Stephen Bubb, which says: “When in government . . . Labour’s Shadow Health Secretary spoke of his vision for a preventive, people-centred NHS that would allow the maximum freedom for local innovation… And yet, to judge by the reaction that” the Secretary of State’s “Bill has provoked, one would think that a centralised, bureaucratic and too often inefficient NHS is politically sacred and permanently untouchable”? [Interruption.] Is that the impression that the shadow Secretary of State is trying to create?”
“On that very point, I should like to understand where the right hon. Gentleman is coming from in his objections to the Bill. What was his philosophy in terms of separating the supervision of banks from the Bank of England, which has day-to-day responsibility for monitoring that canary in the goldmine—their day-to-day funding operations?”
“The hon. Lady is making many interesting points. Does she agree that when a person has a degenerative illnesses such as multiple sclerosis, their condition may change during any finite period, so it is important to emphasise that people can be reassessed and put into the support group if their condition deteriorates?”
“My right hon. Friend is right that in the 26 sittings of the Welfare Reform Bill Committee, which I had the pleasure of attending, we did not hear once about the regional benefit cap. Fifty-seven per cent. of those affected live in London. Does the timing of the Opposition proposal have anything to do with the London mayoral elections?”
“I am glad that the right hon. Gentleman enjoyed my recently published Centre for Policy Studies policy that mentioned regional benefits. On that subject, for the most expensive part of the London would he set the benefit higher or lower than £26,000?”
“Will the right hon. Gentleman answer my second question? Would the regional benefit cap in central London be set higher or lower than £26,000?”
“The Prime Minister has referred to the five European countries that are now less competitive than Iran. On competitiveness, his announcement today is welcome, but how quickly will those steps be taken to increase the competitiveness of the single market?”
“13. What assessment he has made of the potential effects on UK oil and gas supplies of any disruption of shipping through the Strait of Hormuz.”
“My constituents already suffer from high fuel and heating oil prices, so will the Secretary of State reassure them that EU sanctions on Iranian oil will not cause further price pressures in that market?”
“With 2 million children living in workless households, does the Minister agree that the essential steps include not only the additional child care places, but the universal credit and the fact that every hour of work will count towards increased reward for the household? That is an essential part of those fiscal measures.”
“Does my hon. Friend agree that the cost of moving from Brussels to Strasbourg on a regular basis is an ideal budget item to be struck through before forcing member states to spend money on these proposals?”
“As we rebalance the economy towards business growth and entrepreneurship, may we have a debate on employer-supported child care vouchers, because at the moment the only people who cannot access such support are the self-employed?”
“There are three fine community hospitals in my constituency: Pershore, Tenbury and Malvern. My hon. Friend may wish to invite her constituents to visit the Pershore hospital, which is owned by the district council and operated by the NHS care trust. It is an interesting model.”
“So, without further ado, I shall sit down and eagerly await that announcement.”
“28WS.] In the debate on my private Member’s Bill on 9 September, we again heard that the Government were keen to address this thorny constitutional topic as soon as possible. It is a problem that could become quite serious if it is not addressed. It has taken 100 years to get this far towards establishing a commission on the West Lothian question, and we must welcome the enormous progress that has been made. I was delighted when the Deputy Leader of the House was able to confirm last week that the announcement was to be made shortly. I am therefore pleased to be able to give him this additional chance today, while we are still in 2011, to embrace this issue with the enthusiasm that I know he shares and to announce the establishment of the West Lothian commission.”
“As time progressed throughout the year, a debate on the West Lothian commission took place in Westminster Hall, at which the Parliamentary Secretary confirmed that, in referring to “this year”, he did indeed mean 2011. I was therefore very excited when a written ministerial statement was made on 8 September to assure the House that the commitment in the coalition’s programme for government to “establish a commission to consider the ‘West Lothian question’” would result in a commission being established after the conclusion of a “short process of consultation and further deliberation. I expect that this will be in the weeks after the House returns in October.” —[ Official Report , 8 September 2011; Vol. 532, c.”
“Friend the Member for Forest of Dean (Mr Harper) said in July 2010 that he anticipated that the commission would be set up by autumn 2010. That was confirmed again later that July by the Under-Secretary of State for Scotland, who said that he would bring forward proposals in the autumn. However, by October we heard that, in fact, the aim was to announce plans for a commission by the end of 2010. Then, when I raised the subject in last year’s Christmas Adjournment debate, I was assured that we would get the announcement in the new year. When I asked whether that meant 2011, I was assured that the Government were happy to confirm that that was the case. Imagine my excitement, then, when 2011 arrived, and when we were told, in March, that the commission would shortly be established.”
“Mr Deputy Speaker, may I take the opportunity in this eclectic Christmas debate to wish you, your colleagues and all right hon. and hon. Members, as well as all parliamentary staff, a very happy Christmas and all the best for the new year? I want to raise a topic of constitutional importance to a Government who have embraced parliamentary and constitutional reform with great enthusiasm: the West Lothian question. In fact, I would go so far as to say that all I want for Christmas is a West Lothian commission. I know that the Government share my enthusiasm to set up such a commission, because they have referred to it on many occasions. I think the first occasion in this Parliament was when the Parliamentary Secretary, Cabinet Office, my hon.”
“I pay tribute to all those who have the fortitude to serve on submarines underwater for many months at a time, particularly at this time of year. Can the Secretary of State say whether there will be any cost to the public purse from adapting submarines to accommodate both sexes?”
“T3. Cyber-security is an integral part of the nation’s defences, so may I invite the new Defence Secretary to visit the wide range of cyber-security firms located in cyber valley in Malvern in my constituency?”
“There certainly has been a great deal of parliamentary reform. One commitment in the coalition agreement was to establish the West Lothian commission. A written ministerial statement on 8 September said that that would happen in the weeks following October, but certainly by the end of the year, so exactly when will we get that commission?”
“Given the media headlines yesterday on young people’s unemployment, it is easy to forget that young people aged 18 to 24 have experienced high unemployment as a percentage of the population since 2006—for many years now. It is obviously a structural issue, so may we have a debate on how we can help young people’s aspirations? I hope that we could debate in a non-partisan way measures such as those incorporated into the youth contract and take into account the cross-party report on the future jobs fund published by the Select Committee on Work and Pensions.”
“T6. Malvern has a cluster of firms—small, medium and large—with expertise in cyber-security. I invite the Minister down to Malvern to meet them.”
“As QinetiQ in my constituency has restructured, many of the brilliant brains employed there have started new businesses in a range of different areas. May I invite the Minister to Malvern to help back my campaign for phase 4 of the Malvern Hills science park as a further incubator?”
“May we have a debate in Government time about the state pension? In addition to the record cash increase announced this week, which I know pensioners have welcomed, the Government are proposing two other alternatives in their White Paper for reform of the state pension age, as the state pension is the foundation of the retirement income of 100% of our constituents.”
“The Minister will be aware that many more women than men are on pension credit and that about 60% of pensioners are women. Does this increase not therefore disproportionately help women?”