Pensioner Benefits

Oral Answers to Questions — Work and Pensions – in the House of Commons at 2:30 pm on 31st March 2008.

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Photo of Rosie Cooper Rosie Cooper PPS (Mr Ben Bradshaw, Minister of State), Department of Health 2:30 pm, 31st March 2008

What steps his Department is taking to increase the take-up of benefit entitlements by pensioners.

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Photo of Mike O'Brien Mike O'Brien Minister of State (Pension Reform), Department for Work and Pensions

We want every pensioner to claim the benefits to which they are entitled, which is why we are making it easier and more straightforward for them to do so. Pensioners can claim a number of benefits by making a telephone call, and the Department will then send them forms to fill in for council tax benefit. Some pensioners do not send those forms in, so, as from October, the process will be done automatically, obviating the need to send in forms. Pensioners will be covered for state pensions, pension credit, housing benefit and council tax benefit—one telephone call for all benefits.

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Photo of Rosie Cooper Rosie Cooper PPS (Mr Ben Bradshaw, Minister of State), Department of Health

To what extent does the Department work in partnership with non-governmental organisations that deal with the elderly and with partner organisations such as the health service, which may enable us to target pensioner groups? Does the Minister have any plans to extend that? Over-75s receive free television licences, but do we use that information to ensure that people who are eligible are targeted?

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Photo of Mike O'Brien Mike O'Brien Minister of State (Pension Reform), Department for Work and Pensions

We have access to information, particularly on winter fuel payments, that covers large numbers of pensioners and gives us quite a lot of data on where they are. We work with Help the Aged, Age Concern, citizens advice bureaux, Community Service Volunteers and others to increase the take-up of benefits, and partnerships have been developed with local authorities, too. The aim is to develop joint working partnerships so that we can raise take-up across all the benefits. There are no official links with the NHS as such—we co-ordinate through Departments, but there are not official links locally. We often receive referrals from GPs, hospitals and carers, and the Disability and Carers Service works closely with the Department of Health.

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Photo of Mike Penning Mike Penning Shadow Minister (Health)

Will the Minister confirm that many of my constituents who formerly worked for Dexion and had their pensions stolen from them no longer need to take up benefits, because they will receive compensation from the financial assistance scheme? Will he confirm that the Treasury will not—as a result of Government delay in giving my constituents the compensation that they deserve—take up to 40 per cent. tax from my constituents who have got their pensions through FAS?

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Photo of Mike O'Brien Mike O'Brien Minister of State (Pension Reform), Department for Work and Pensions

The hon. Gentleman will be pleased to know that, this morning, I was able to talk to his constituent, Mr. Humphries, and tell him that we hoped to make an announcement today that the Treasury had agreed that the lump sum payments to be paid to various FAS recipients can be taxed in a way that means that most of those people—it depends on their tax circumstances—will not be pushed into the higher tax bracket as a result of those lump sum payments, so they can spread their tax payment over time. I am sure that the hon. Gentleman's constituent will welcome that, and that he will, too.

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Photo of Michael Clapham Michael Clapham Labour, Barnsley West and Penistone

One of the benefits that pensioners draw, as my hon. and learned Friend will be aware, is the pension element of the industrial injuries disablement benefit. May I draw his attention to the fact that his Department has received a recommendation from the Industrial Injuries Advisory Council relating to men who worked in the screens on the colliery surfaces during the 40 years up to 1983, proposing that provision for COPD—chronic obstructive pulmonary disease—be extended to cover that group of workers? Will he look urgently at that decision, because the group of men who would claim that benefit are elderly, and we need to ensure that those who are eligible can claim industrial injuries disablement benefit and, in addition, explore whether there is a full and final payment of compensation, similar to that paid to their underground colleagues? It is urgent that that decision be looked at and the recommendation accepted.

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Photo of Mike O'Brien Mike O'Brien Minister of State (Pension Reform), Department for Work and Pensions

I can certainly assure my hon. Friend that we will look at that as a matter of urgency. He knows that I, too, represent an area with a working colliery and a large mining community, and these matters are important to such communities.

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Photo of Peter Bottomley Peter Bottomley Conservative, Worthing West

There will be a welcome from Members on both sides of the House if that review is successful. Is the Minister satisfied with the situation of men over 60 in relatively low-paid full-time work who are not automatically reminded that they are eligible for winter fuel payment? Will he look at that to see whether he can make a change to procedures?

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Photo of Mike O'Brien Mike O'Brien Minister of State (Pension Reform), Department for Work and Pensions

We want to ensure that everyone who is entitled to the winter fuel payment registers to receive it. There is a substantial advertising campaign to ensure that we get that take-up, but people have to register. Indeed, they should have registered already to take up the winter fuel payment this year.

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Photo of Frank Field Frank Field Labour, Birkenhead

Will the Minister convey the thanks of many Members of Parliament to the Pension Service for the quality of care it gives many of our constituents? Given that it is the Government's aim to increase take-up, what is his estimate for the coming years of the increased number of pensioners claiming the benefits to which they are entitled?

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Photo of Mike O'Brien Mike O'Brien Minister of State (Pension Reform), Department for Work and Pensions

I am pleased to be able to tell my right hon. Friend that our target for the year finishing tomorrow was to get 235,000 people on to pension credit. In fact, we have reached 250,000, so we have gone beyond that figure. I have indicated that I want to see it increased during the coming year, so I am pleased to tell him that we are continuing to press to get more people on to pension credit.

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Photo of Danny Alexander Danny Alexander Liberal Democrat, Inverness, Nairn, Badenoch and Strathspey

The Minister says that he wants to increase take-up and I welcome that, but the Budget tells a different story. If the Government were intending to get the benefits to every eligible pensioner, by 2010-11, an extra £1.75 billion would have been allocated in the Budget. Instead, the Budget assumes no increase in take-up over the next three years. How is he getting on with persuading the Treasury that getting the benefits to the pensioners who are entitled to them is not poor value for money, as the Treasury seems to assume?

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Photo of Mike O'Brien Mike O'Brien Minister of State (Pension Reform), Department for Work and Pensions

We certainly want to get benefits to all the pensioners who are entitled to them. That is one of the reasons why, just before Christmas, I announced the introduction of automaticity, which sounds complicated but basically means that with one phone call a person can obtain four different benefits.

The process of getting the benefits needs to be simplified. One of the problems that we have had in getting people on to pension credit is that we have written to pensioners—in some cases, four or five times—asking them to apply, and some have chosen not to do so. We cannot force them to apply; it is their decision. However, for those who apply, we can make it easier to get the benefits. That is why, from October, we will introduce the new system of automaticity, where those who get one benefit will get four.

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Photo of Sally Keeble Sally Keeble Labour, Northampton North

Will my hon. and learned Friend explain how the various Departments are co-operating in promoting benefits for pensioners? He will know that take-up of concessionary bus passes is not particularly high. In my area, they are claimed by about 57 per cent. of pensioners. Will the Pension Service remind pensioners of the enhanced benefits of the scheme and encourage them to apply?

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Photo of Mike O'Brien Mike O'Brien Minister of State (Pension Reform), Department for Work and Pensions

We certainly want everyone who wishes to have a concessionary bus pass to take up that concession. We will rely on local authorities to promote the project. One of the issues is that local authorities in different areas have different start and finish times. Although the Government are promoting a national scheme and paying for a certain proportion of it, some local authorities have felt able to go beyond that and have raised the extra funding from the council tax system. As a result, running a national campaign is a lot more difficult, but there has been plenty of national publicity, MPs and Ministers have been promoting the scheme, and the Government are proud of the fact that we have introduced it and ensured that pensioners can travel on local services around the country at off-peak times. That is something we have done; the Conservative party never even attempted it when it was in government.

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Photo of Nigel Waterson Nigel Waterson Shadow Minister, Work & Pensions

Any measures to boost take-up of benefits are welcome and long overdue, but has the Minister made any estimate of the number of pensioners who are forced to use their winter fuel allowance to pay soaring council tax and utility bills and to pay for basic foodstuffs? Is he not ashamed that the latest EU figures show that Britain is fourth from the bottom of the poverty league, so that only pensioners in Spain, Latvia and Cyprus are more likely to fall into poverty?

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Photo of Mike O'Brien Mike O'Brien Minister of State (Pension Reform), Department for Work and Pensions

We are the party that has lifted more than 1 million pensioners out of relative poverty. It takes some brass neck for Conservatives, who wanted to increase VAT on fuel to 17.5 per cent. and keep pensioners on basic pensions of £69, to say that they are now worried about pensioners. They seem to worry about the poor pensioner only when someone else is in government.

The Government are making winter fuel payments to deal with fuel poverty issues. We are ensuring that people who need help because they are poor are getting pension credit, and that we deal with the issues related to take-up. The Government whom the hon. Gentleman supported did nothing, and he has some brass neck to suggest otherwise.

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Photo of John Grogan John Grogan Labour, Selby

Is my hon. and learned Friend considering renaming council tax benefit "council tax rebate", as advocated by Sir Michael Lyons, to increase take-up among pensioners? Would it be possible to link the systems and computers of the Inland Revenue with those of local government to ensure automatic payment of council tax benefit?

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Photo of Mike O'Brien Mike O'Brien Minister of State (Pension Reform), Department for Work and Pensions

I always hesitate to assure people that it is easy to link computer systems; it is not always easy. However, we work with Her Majesty's Revenue and Customs and the Treasury to see where we can share data to ensure that we get the information we need to target pension credit in particular. After October, pension credit will be linked to council tax benefit, so it will be possible to ensure that people who claim one get the other as well.

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