4. Ian Blackford (Ross, Skye and Lochaber) (SNP): What discussions he has had with the Chancellor of the Exchequer on ensuring that people accessing new pensions freedoms receive appropriate advice. [901149]

 

The Parliamentary Under-Secretary of State for Work and Pensions (Mr Shailesh Vara): Ministers in this Department have met and continue to meet the Chancellor and Treasury Ministers to discuss this and other matters. My Department works closely with the Treasury, as well as with the Financial Conduct Authority, to ensure that the requirement for individuals to take independent financial advice works as intended.

 

Ian Blackford: Has the Minister read the report from the Strategic Society Centre which points out a link between guaranteed retirement income and wellbeing? I am deeply concerned that we are not offering adequate protection to pensioners, given the choices that they face, and I ask the Government to look again at the question of promoting guaranteed income in retirement and to accept their responsibility to protect pensioners.

 

Mr Vara: I do not agree with the hon. Gentleman when he says that we are not taking our responsibility seriously. He will be aware that Pension Wise offers free impartial guidance that can be given by telephone, online or in face-to-face meetings, and that the Money Advice Service provides a free directory with more than 2,250 firms registered on it. That equates to more than 6,000 individuals who can give advice. In Scotland, there are 162 firms that can give such advice to people, so there are plenty of people out there, but if the hon. Gentleman knows of individual cases, I would be happy to hear from him.

 

Nigel Mills (Amber Valley) (Con): Is the Minister aware that certain savers who have old, with-profits policies are being forced to pay for financial advice and to get a sign-off, sometimes on an insistent client basis? It can often cost them a lot of money to access their money under the new freedoms. Would the Minister be prepared to look at this matter again, in order to strike the right balance between providing the right advice and not pricing people out of the market?

 

Mr Vara: My Department is keen to ensure that the consumer does not miss out, and we are working closely with the Financial Conduct Authority to ensure that the rules and regulations are fit and proper. If my hon. Friend would like to bring any particular cases to my attention, I would be happy to look at them.

 

Yvonne Fovargue (Makerfield) (Lab): Will the Minister tell us when the Government are going to publish the information on the take-up of the Pension Wise service, and what action they are taking to combat the scammers, who have scammed £4.7 million out of people in the first month of the new scheme?

 

Mr Vara: If the hon. Lady has any specific information on that, I would be happy to receive it from her. We will be publishing the figures on the take-up of the Pension Wise service in due course, but I do not have them at the moment. It is a relatively new operation, and we need to give it some time. In relation to dealing with scams, we are working with the Financial Conduct Authority and we are seeking to stem these scams and any others that there might be.

 

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7. Graham Evans (Weaver Vale) (Con): What steps he is taking to increase public awareness and understanding of the new state pension. [901153]

 

The Parliamentary Under-Secretary of State for Work and Pensions (Mr Shailesh Vara): We have begun a new media campaign for the new state pension. It will use the full range of communication tools, including press, radio and digital means. Material has been updated to be clearer, to engage people and to help them better understand what the changes mean for them.

 

Graham Evans: The basic state pension would have been £560 a year higher by the end of the last Parliament if it had been uprated by earnings alone. Does my hon. Friend agree that maintaining the triple lock gives pensioners the greater certainty about their security that they definitely deserve?

 

Mr Vara: My hon. Friend is absolutely right, and I am grateful to him for making that point in this House. It is important to remember, notwithstanding the tough economic climate, that we on the Conservative Benches have looked after the pensioners. We have given them security and the protection that they need, and I can assure the House that they will continue to have that protection with the triple lock.

 

Andrew Gwynne (Denton and Reddish) (Lab): Does the Minister understand that a great number of women who were born in the 1950s feel that the Government did not adequately inform them not only about the changes to the state pension age affecting their retirement, but about the speeding up of that process? Will he look again at that basic unfairness for a group of women who have paid in but who are getting nothing out?

 

Mr Vara: May I gently remind the hon. Gentleman that the original increase in ages was started under a Labour Government? We have relaunched the campaign to ensure that the target group of people—those who are within 10 years of retirement from April 2016—take an active role in trying to find out how they will benefit under the new state pension.

 

Fiona Mactaggart (Slough) (Lab): The Minister will be aware that the Association of British Insurers published figures this summer about the new pension freedoms which show that people with big pots are buying income drawdown and that people with small pots are cashing out. He knows that women live longer than men and that they have smaller pots than men, so what is he doing to ensure that women’s income in retirement is properly protected?

 

Mr Vara: Let me be absolutely clear: this Government will not dictate what anybody should do with their pension pots. What we have put in place is the means by which people—both men and women—can seek advice. As I mentioned earlier, there is the Money Advice Service, which has on its books more than 2,250 firms across the country that can give advice. It is for people to take that advice and then to decide. We will not dictate how people should deal with their money.

 

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Stephen Metcalfe (South Basildon and East Thurrock) (Con): As the Minister will be aware, the previous Government agreed to lift the Pension Protection Fund cap imposed on long-serving employees’ pensions when a pension fund collapses. Will he tell the House when he will bring forward the appropriate legislation to make that happen?

 

The Parliamentary Under-Secretary of State for Work and Pensions (Mr Shailesh Vara): I am grateful to my hon. Friend for his question. He will appreciate that I am not prepared to make an announcement about that at the moment. When I do make an announcement, he will be the first to know.

 

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