Non-funded Pension Schemes

Oral Answers to Questions — Wales – in the House of Commons at 12:00 am on 24th October 2018.

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Photo of Ben Lake Ben Lake Plaid Cymru, Ceredigion 12:00 am, 24th October 2018

What assessment he has made of the implications for public authorities in Wales of the Treasury’s draft valuation directions for non-funded pension schemes.

Photo of Mims Davies Mims Davies Assistant Whip (HM Treasury), The Parliamentary Under-Secretary of State for Wales

The valuations indicate that the amount employers pay towards the schemes will need to increase, and details will be finalised when the valuations are completed early next year. Treasury has committed to support the Welsh Government with additional funding in accordance with the statement of funding policy.

Photo of Ben Lake Ben Lake Plaid Cymru, Ceredigion

The 2016 actuarial valuations will have an unprecedented impact on the constrained resources of local authorities, teaching institutions, the fire service and police forces in Wales if UK Government funding is not forthcoming. Will the Minister confirm that this funding will be forthcoming from the Treasury to the Welsh Government?

Photo of Mims Davies Mims Davies Assistant Whip (HM Treasury), The Parliamentary Under-Secretary of State for Wales

The hon. Gentleman raises this concern on behalf of his constituents, and it is correct that some increases in costs were predicted in the 2016 Budget. We will of course apply the principles set out in the statement of funding policy in determining any additional funding for the devolved Administration, and continue to do what is right for Wales.

Photo of Eddie Hughes Eddie Hughes Conservative, Walsall North

On the Minister’s first outing at the Dispatch Box, will she join me in welcoming the additional funding given to the Welsh Government to fund teachers’ pay rises in Wales?

Photo of John Bercow John Bercow Speaker of the House of Commons, Chair, Speaker's Committee on the Electoral Commission, Chair, Speaker's Committee for the Independent Parliamentary Standards Authority, Chair, Commons Reference Group on Representation and Inclusion Committee

Order. This is about non-funded pension schemes, not funding pay rises. It was a nice try, and the hon. Gentleman is a cheeky chappie, but we will leave that one there and come to the other Smith, Nick Smith.

Photo of Nick Smith Nick Smith Opposition Whip (Commons)

What is the Minister going to do to protect police numbers, given these financial pressures?

Photo of Mims Davies Mims Davies Assistant Whip (HM Treasury), The Parliamentary Under-Secretary of State for Wales

The hon. Gentleman will know that we have tackled the fiscal challenge that Wales has suffered with for decades. In fact, Wales now benefits from £120 for every £100 spent in England. As I said earlier, we will do what is right for Wales, as we have done in the case of teachers raised by my hon. Friend Eddie Hughes.