BBC On The Record - Broadcast: 28.05.00

Interview: DAVID WILLETTS MP, Shadow Social Security Secretary.

On whether pensioners would be any better off under the Conservatives.



JOHN HUMPHRYS: Mr. Willetts, let's deal first of all with the promises. Given your record, the Conservatives record in government, why should pensioners believe that they are going to be better off under you next time. DAVID WILLETTS: Because what we've proposed is a very carefully costed package, the figures agreed with the House of Commons Library, which shows that you can both consolidate all the money in the special payments into the basic pension, plus, there is three-hundred-and-twenty million pounds extra on top from elsewhere in the Social Security Budget, so pensioners will have an income that is at least as good, if not better than what they have at the moment, and above all, it will be guaranteed, it will treat them with respect, it will be part of the weekly basic pension. HUMPHRYS: Let's look at the list that you've announced today. It doesn't seem to amount to very much when you break it down, does it really? Breast cancer screening, you say that you are going to extend that for sixty-five to sixty-nine-year-olds, depending on trials, but the government is already doing precisely that. WILLETTS: Yeah, but, and what we're doing though, both on breast cancer and the other things we've announced is that we're saying, when we identify areas where policy discriminates against people just because of their age, we Tories want to break down those barriers, and what we're finding, both in the benefit system, and in the health service, is there are still barriers which people face, getting the right service, getting the right level of benefit, just because of their age, and that's unacceptable. HUMPHRYS: And the government's recognised it and is not going to have it. It's going to change it. WILLETTS: Well, but I think the trouble with this government is that because of all their rhetoric of new Britain, young Britain, cool Britannia, the pop stars at number ten, all that type of stuff, they don't understand or respect what it is that concerns older people, particularly pensioners, and we are showing that we have been listening, we have been learning, and we Conservatives value and respect pensioners and these policies, both on pensions and on the health service show that we're serious. HUMPHRYS: Sounds as if you've been listening to the government, because as I say, on breast cancer screening what you're proposing is precisely what they've already decided to do - it's not new, is it? WILLETTS: It depends on how the pilot project scheme will go...... HUMPHRYS: .....exactly. WILLETTS: ....but, what we know is that the problem with cancer treatment in this country, and we do unfortunately have a record on cancer that is worse than most other advanced western countries, is almost entirely to be explained by the treatment which older people get in hospital, so there is indeed, yeah there's a deeper question here about how you help older people - but if I look at how this government has treated older people in the past three years, look at the way all the New Deal money, for example, went to eighteen to twenty-four olds, they don't understand, or value, or respect them. HUMPHRYS: Mmm. But as I say, they already acknowledge this. Anyway, let's move on to the next thing, mixed sex wards, which you don't like, neither does the government, neither do most people it seems, and your government promised, Virginia Bottomley, I remember her telling me about it years ago, five, six years ago, that they were going to put an end to it. Urgent moves were needed, that's exactly what she said. John Major apologised for it all a couple of years later because it hadn't happened. It still hasn't happened, but this government is now saying, it is going to do it, you didn't do it, this government says it's going to do it, now you say again you're going to do it, and present it as something new. WILLETTS: Yeah, but you say the government now it is going to happen, one of the troubles...... HUMPHRYS: .....he says it's going to happen. WILLETTS: .....one of the troubles is that already the timetable has slipped. I remember Baroness Jay, when she was a Health Minister, saying that by now they would have eliminated mixed sex wards. Now they're talking about some date after the next election. HUMPHRYS: Two-thousand-and-two, which may not be after the next election, probably will be but may not be. WILLETTS: Yeah, who knows. But what we're saying is, yeah, we've been listening, we've been learning, we've been listening to pensioners, and I'm not going to defend everything that happened in the past, what we are saying is, pensioners tell us over and over again that they don't think that they get a fair crack of the whip under this government. So William Hague has said to us, he wants us all to review the policies in our area, to make sure that they do not discriminate against older people. HUMPHRYS: Fine, except that you've come up with policies that are those that have already been adopted by the government, so, there isn't any difference. They are going to do it. WILLETTS: Well, the policies that we have been announcing on the basic state pension, that's not what the government has done...... HUMPHRYS: ....we'll come to that in a minute WILLETTS: ....and the policies which I've announced today in the areas of benefits, saying that we should get rid of the discrimination against older carers, that is a policy that sadly is not being implemented by this government, I wish they would, to be honest, and we would support them if they did. And on war widows, where we're saying that war widows should not lose their pension if they remarry, there the government absolutely has an opportunity straight away to do it, the amendment has been tabled in the House of Lords, the government has been defeated on it, all they need to do is to say, when the current Welfare Bill comes back to the Commons, they will not try to reverse that provision. So yeah, if the government does these things, that's fine by us. HUMPHRYS: But, you, you could have done that by yourself, William Hague, who was then the Social Security Minister back in 1995 said, and I quote, we looked it up this morning - it would be wrong to change the rules for one very small group, one very small group in isolation - he didn't think it was a good idea then. WILLETTS: Yeah. Well what's happened is very simple. What's happened is five years on, five years later, listening and learning from older people, what we have found is there is a whole range of areas where they don't feel they are properly treated with respect. So, yes, I am not going to defend our policy of five years ago, but I am proud of our policy today. HUMPHRYS: Mmm. Well, let's look at the other thing that you're proud of, the basic state pension, the changes there, you gave the impression very clearly last week, that pensioners would be five-pounds-fifty a week better off. They're not going to be five-pounds-fifty a week better off, are they? WILLETTS: What we said is that there will be an increase in the basic state pension that is a minimum of five-pounds-fifty for a single pensioner under seventy-five, and goes up to ten-pounds for an older pensioner. We made it perfectly clear all along, because pensioners have been over-sold too many gimmicks by this government, we made it perfectly clear all along, that most of this money came from consolidating the various special schemes....... HUMPHRYS: .....all but forty-two pence of it. WILLETTS: ...no, but the, an extra three-hundred-and-twenty-million pounds that comes from, for example, saving on the bureaucracy of administering the special schemes, a complete waste of money that will instead go into the basic pension. So it is true, most of the money is coming from consolidating the existing schemes, but there is extra money on top, and I think that that's why we can be confident that all pensioners will be better off. HUMPHRYS: And the extra money on top is forty-two pence a week, you made great fun of the sum, as indeed did an awful lot of other people, the seventy-five pence a week that they got on top of the pension, you are offering them another forty-two pence a week, making it sound a great deal of money. WILLETTS: What we are doing is - it will vary according to the circumstances of individual pensioners but it could be significantly more than that. And to be honest John, even if there was not an extra penny, even if there was not a single extra penny of money rather than the three hundred and twenty million, even if we were simply taking the money that goes into the special payments and putting that into the basic pension, I think that would be an improvement because it would treat pensioners with respect, whereas the current special scheme, they all have to apply for and is complicated to administer do not. So I - even if there were no extra money, I would still say this was a better policy. HUMPHRYS: Alright, important expression this, with respect, because as you say that is what they want and quite right too and William Hague made the point earlier this week, not five years ago but just four days ago he said the basic state pension in effect is a return on years of contributions, these people have worked for it, they have paid their contributions over the years and they are damn well entitled to it, that's the view they take, quite right too. 'We want to show respect' he says. Now if that's the case, how come that you are not promising to do what they want above all and that is a substantial increase, not forty-two pence, a substantial increase in the basic state pension and restore the link with earnings which your government chopped and which made so many of them......if you are really listening to them, that's what you'd do isn't it. WILLETTS: Well we are talking about a substantial increase in the basic state pension.. HUMPHRYS: No you're not, it's forty-two pence.. WILLETTS: ..well minimum of five pounds fifty, up to ten pounds and that is an increase that includes the recycling of the existing... HUMPHRYS: ..that's smoke and mirrors isn't it. WILLETTS: ..but on the earnings I know that many campaigning pensioners would like to see the earnings link restored, you are quite right, neither the Conservatives nor the Labour Party, nor even the Lib Dems actually in their manifesto proposed that because it is not affordable and would not be well targeted. So what pensioners have to look at is not what for them would be the ideal, you have to look at the practical options that are on offer. They can either have all Gordon Brown's special payments or they can have what we propose in their carefully costed package which is an increase in the basic state pension that is more than consolidating the special gimmicks. That is the real choice they'll face in the next election. HUMPHRYS: So respect doesn't actually mean much extra money, it means a few pence extra, it just means packaging it up in a different way, that's really what it's all about. WILLETTS: Well I think..you say it just means packaging it up in a different way, the thing that pensioners feel is that if they are to have extra money they will want it to be part of the contributory basic pension as an entitlement.. HUMPHRYS: ..they want more money.. WILLETTS: ..yes they do want more money as well, you are quite right, but the money they do get..the complication of these schemes, the way they are so badly targeted. I am sure that Gordon Brown didn't even intend this but he has got a scheme where people in nursing homes and residential accommodation who are on income support don't get the winter fuel payment, but the affluent pensioners, the two hundred and twenty thousand who are above income support levels do get the winter fuel payment. It's a nonsense. He's created a nonsense because every budget he stands up and wants to announce a new scheme with a new change to the benefit system, it's too complicated and simplifying it and putting it as part of the contributory pension is a lot better than what they have at the moment. HUMPHRYS: There's one group of pensioners - the worst off as well - who are actually going to be worst off still under you because at least under Labour people on the minimum income guarantee will have that increase, that benefit paid in line with earnings, it will go up in line with earnings. You won't allow that will you? WILLETTS: That is simply not true. We made all along, clear in our package, that the extra money that goes into the basic pension is to go to all pensioners. It will not be taken off pensions.. HUMPHRYS: ..talking about the minimum income guarantee.. WILLETTS: ...yeah the minimum income guarantee is income support as it was in our day, renamed as is often with New Labour you look behind you.. HUMPHRYS: ...but the question I'm asking is whether you are going to increase that in line with earnings in the future, that's the crucial point. WILLETTS: What I am..in the package which is the uprating for 2001, is based on Labour's spending plans for the year 2001/2002 and only differs from Labour's spending plans where we have specified. The 2001/2002 year which is for what this applies.. HUMPHRYS: ..a one off.. WILLETTS: ..will have the increase in means tested benefits that ensures that all pensioners are better off than they are.. HUMPHRYS: ..for that year. What about subsequent years? WILLETTS: Well in the long term how you up-rate the value of the income support, the minimum income guarantee is indeed a matter for decision... HUMPHRYS: Oh right, so that's exactly the point I made. WILLETTS: But Labour are not themselves, they are not guaranteeing that all through the lifetime of the second Parliament what they will do, when they will produce their spending plans, we will produce our spending plans. HUMPHRYS: But their policy is to increase it in line with earnings, you are not going to do that. WILLETTS: But what Alastair Darling was claiming was that poorer pensioners on means tested benefits will lose out because they will not get the value of this increase, that is untrue. This will go to all pensioners and means tested benefits will be increased so as to ensure that the value.. HUMPHRYS: ...for that year but there's no commitment from you to continue to do that. WILLETTS: But there is a commitment for the future.. HUMPHRYS: The answer is no to that isn't it, let's be clear about that. WILLETTS: The commitment to the future is that then this larger, more substantial basic state pension will be uprated in line with prices and it will be a larger sum that is uprated so that every year the uprating will be bigger because you are uprating a bigger sum. It's another reason why pensioners gain from this package. HUMPHRYS: Right, let's be quite clear about this. The poorest pensioners could, because you are not prepared to give this commitment, in the long run be worse off. WILLETTS: Neither Labour ministers nor us as a responsible Opposition have said that in the long term you can guarantee that the minimum income guarantee will rise in line with earnings rather than prices. That is a decision to be taken beyond the year 2002. HUMPHRYS: Alright, so the upshot of all that is that you're telling the many pensioners who will be watching this programme that under a Conservative government they would be better off. There's no ifs, ands and buts, no sleight of hand, no repack, they will be better off? WILLETTS: Yes. HUMPHRYS: Well now, that is a bit strange isn't it, because what you're supposed to be doing, what you're going to have to do if you get into office is to cut taxes during the lifetime of the government, no ifs, ands or buts about that either, that is an absolute commitment and yet you're going to pay extra money to pensioners. Of course you're also going to pay extra money to the Health Service, to schools, all the rest of it, but extra money to pensioners. Bit of a tricky one to pull off that isn't it? WILLETTS: And we've managed it. HUMPHRYS: Managed it? - you're not in office yet. WILLETTS: Yes. HUMPHRYS: You are telling us how you might manage it. WILLETTS: No because let me tell you, because you're quite right. I want to see the social security budget coming down and I'm committed to bringing down the social security budget, and that's what I want to do, and what we've done in this package for pensioners is we've identified very clearly elsewhere in the social security budget where the extra three hundred and twenty million pounds comes to help pensioners. I comes from the abolition of the New Deal for lone parents, it comes from the savings on bureaucracy, other measures, adding up to ..... HUMPHRYS: ...oh come on, savings on bureaucracy, the number of times - can I just remind you of something one of your colleagues said about savings on bureaucracy - Stephen Dorrell. He said when the Labour - the then Labour Opposition said we're going to save on bureaucracy in the NHS and all the rest of it, he said that's a mirage, you can't do it. WILLETTS: Well we - I tabled parliamentary questions to ministers to establish how much it cost to administer the winter fuel payment scheme and how much it cost to administer the special free TV licence scheme. Those figures add up to forty million pounds. We're saying if you abolish the schemes that releases forty million pounds and you can put that into the basic state pension. Though if you disagree with the figures you'll have to ....... HUMPHRYS: Well, that will pay for your war widows bit, but you've got - I've been making a list here, you've got forty million for war widows, twenty million for carers' benefits, forty million...... three-hundred-and twenty million for the new pension - still an awful lot of money... WILLETTS: Yes, and what we've identified is substantial savings in the social security budget by saying for those lone parents for example, instead of Labour's hopeless New Deal which does nothing to get them into work, we will expect of single parents whose children are of secondary school age because it's in the interests of their children that they be actively seeking work... HUMPHRYS: ..is it? WILLETTS: ..we will end - it is in the interests of their children.. HUMPHRYS: Family friendly policies. So much for them. WILLETTS: Well, I was very struck by ... HUMPHRYS: ... be out of work and looking after the kids. WILLETTS: If you look at the evidence, if you look at education attainment of the children, if you look at future employment, if you particularly look for the daughters at their own risk of becoming a teenage mother, you see that if their lone parent works when they're of secondary school age then the chances for the child are much better. So we think it's only responsible to act on ...... HUMPHRYS: ..but sure, but... WILLETTS: ... and that's one-point-two-billion pounds of income support that goes to single parents..... HUMPHRYS: If they all find jobs, if they all, every single one of them, every single one of them finds a part time job that would fit in with where they live and where the school hours and all that, a bit optimistic that isn't it? WILLETTS: Well, all that we're expecting them to do is to find the jobs that the married mothers with working husbands are doing. Again, we're going to say, what we're going to say to them is, look at the sort of jobs which are being done by the women in your area, that is what we'll expect job centres to be referring them to, and those will be the reasonable offers of work, and if you don't do that indeed you will sadly lose your income support. HUMPHRYS: And you're also assuming that they will be paid enough, so that they don't have to get benefits. You're asking a great deal - making a great deal of assumption about this aren't you? WILLETTS: All I say is that the assumptions that we're making are a jolly sight more sensible and practical than the assumptions that Labour have made in the New Deal for lone parents, that's ninety-million pounds that just goes, and I will use the word again John, it just goes into bureaucracy. It literally is bureaucracy, it goes into letters that are sent out to lone parents inviting them for interviews, it goes into the postage, it goes into the bureaucrats who send out the letters and they're no more likely to get a job than the people who don't get the letters. HUMPHRYS: The idea that you're going to save one-point-two-billion pounds on this scheme alone is fairly preposterous isn't it. It's making an enormous assumption. WILLETTS: What we're saying is that over a lifetime of a parliament we will tackle it in a sensible way, we're not being - we're not doing anything rash. HUMPHRYS: So, it's not going to all happen immediately then? WILLETTS: What we'll do is bring down the age at which parents get their income support unconditionally. From the age of the child being sixteen or eighteen as it is at the moment, down to eleven a year at a time. We've identified other savings as well. HUMPHRYS: Well, just before we leave that one, you're not going to say one-point-two-billion pounds, certainly not in the first year, not in the second, maybe by the end of..... WILLETTS: We're talking about increasing savings that will reach one-point-two billion pounds, and they are substantial savings, they're much larger savings than the only extra items of social security expenditure that I've announced, apart from this self financing package for pensioners which is forty million pounds to help war widows and twenty million pounds to help carers who are discriminated against at the moment. Comparing those two specific announcements that tackle the real and genuine grievance with the very large savings totalling well over a billion, adding up eventually to three-point-two billion it's clear that we're committed to making overall savings in the social security budget. HUMPHRYS; You didn't pick out of that little lot the way you're going to save money, the ninety million pounds you're going to pinch out of the social fund, that fund that helps the very poorest people buy shoes for their children and the like, and that's a pretty mean cut isn't it? WILLETTS: Yes, that was a tough decision to take, but we took it because.... HUMPHRYS: People are going to suffer. WILLETTS: Yes, and we didn't want you to be able to say, and the critics to say, hang on the figures don't add up, they haven't shown where they'll get the savings from. It was a tough decision, but our view was that the government had put over sixty million pounds extra into the social fund this year, it was increasing way on top of inflation, and that if we can put more money to pensioners through guaranteed weekly payments in their basic state pension it is possible to make off setting savings elsewhere. And we've come clean on it and the figures have all been agreed with the House of Commons library, and it is a package where the figures add up. And by the way you haven't given me an opportunity yet to identify other areas where there are savings to be made, there are entire benefits such as the Industrial Injuries Benefit which we say should be shifted away from an indiscriminate subsidy to employers whether they are having high rates of industrial injuries or not, and instead we say that that should be a responsibility on them to take out private insurance. We want to see a much bigger effort on welfare fraud, where there's seven billion of fraud and the Government are pathetic on tackling it. There are big savings that we can deliver. HUMPHRYS: Maybe. You can't be absolutely sure. WILLETTS: We will. HUMPHRYS: David Willetts, thank you very much indeed.
NB. This transcript was typed from a transcription unit recording and not copied from an original script. Because of the possibility of mis-hearing and the difficulty, in some cases, of identifying individual speakers, the BBC cannot vouch for its accuracy.