Torsten Bell MP: speeches 2026

Speeches

• 26 Jan 2026 · State Pension Age Changes: Compensation · Hansard source

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  I know that hon. Members across the House will have been contacted by constituents who have been affected, and many of us will also have family members who have been affected. As I said, we will update the House as soon as a conclusion is reached. We have committed in public to doing so within three months of the decision in December, which means a decision will be reported to the House before the beginning of March. I gently say that we need to be clear about what is at stake here: this decision relates narrowly to the question of the communication of the state pension age changes. For many women, including many of my constituents, the issue they are actually most focused on is the increase, and the acceleration in the increase, in the state pension age that was put in place by the coalition Government, which not a single Lib Dem MP voted against back in 2011. I think we should be clear about that, and I am sure that the hon. Gentleman will be clear on that with his constituents when they raise the matter with him.

• 26 Jan 2026 · State Pension Age Changes: Compensation · Hansard source

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  Mr Speaker will not be on camera right now since I am speaking, but I can reassure the whole world that he is very much still with us. We all hope that that will be the case for some time to come, but when he does decide to become a pensioner, he will, like all pensioners, have the full support of the Government. We are bringing down waiting lists, which is benefiting pensioners right across the country. The biggest single disgrace facing older generations across the UK today is the state of our NHS, and that is why this Government are investing in bringing down waiting lists month after month after month.

• 26 Jan 2026 · State Pension Age Changes: Compensation · Hansard source

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  As the Secretary of State set out on 11 November 2025, we are retaking the decision made in December 2024 as it relates to the communications on state pension age. We will update the House on the decision as soon as a conclusion is reached.

• 26 Jan 2026 · State Pension Age Changes: Compensation · Hansard source

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  The ombudsman is an important part of the systems that we have in place to make sure that the administration of public services is done in the right way. The hon. Member will know that our permanent secretary met the ombudsman before Christmas. A draft of the action plan that he refers to was shared with her in order to provide her with reassurance that progress was being made on it. As he will be aware, the work on the action plan has been stopped because it was an intrinsic part of remedy set out in the case last year. As I have said, the Secretary of State is considering the evidence in the round, and we will report back to the House as soon as a decision is taken.

• 26 Jan 2026 · State Pension Age Changes: Compensation · Hansard source

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  I simply cannot let the hon. Member off on this. It was the Conservatives who made the decisions on accelerating the state pension age and in some cases gave women around five years’ notice or less of the increase. That was a choice made by the Conservative party. This Government are considering a report from the ombudsman that the Conservatives left sitting on their desks and refused to make a decision on—and we are going to make a decision.

• 26 Jan 2026 · State Pension Age Changes: Compensation · Hansard source

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  I know that many of our sympathies would be with Miriam. Many Members have constituents who face challenges in the years running up to the state pension age and who are, for whatever reason, unable to work. The hon. Lady has rather made the point that I just set out, though. She talks about losses of £50,000 or £60,000, which I also see in letters from constituents, but that does not relate to the issue of communication of the state pension age. What she is referring to—the increase and acceleration in the state pension age—was put in place by a Liberal Democrat Government, and not a single Liberal Democrat MP voted against it. It is important to be clear about what is and is not part of the PHSO’s investigation. As I say, it is very important that we take these issues seriously. We should not have seen an acceleration of the state pension age where some women were only given five years’ notice, but that was put in place by the coalition Government. We will not be making those mistakes.

• 26 Jan 2026 · Topical Questions · Hansard source

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  It has been confirmed that those whose income is only the basic level of the basic state pension or the new state pension will not be required to pay tax next year, because the level of personal allowance has been set above the level of the new state pension. What the Chancellor said at the Budget was that in future years we will make sure that no pensioner will be required to fill in a self-assessment form, or indeed a simple self-assessment form, for any tax that is due because the new state pension level is above that of the personal allowance.

• 21 Jan 2026 · National Insurance Contributions (Employer Pensions Contributions) Bill · Hansard source

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  You have years to go.

• 21 Jan 2026 · National Insurance Contributions (Employer Pensions Contributions) Bill · Hansard source

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  In a shock move, I entirely agree with my hon. Friend. Members of those parties who have said that they intend to vote against this Bill today cannot keep coming to this Chamber, day after day, calling for additional spending in more areas, while opposing any means of raising taxes. [ Interruption. ] Well, you have raised the welfare budget, and without trying—

• 21 Jan 2026 · National Insurance Contributions (Employer Pensions Contributions) Bill · Hansard source

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  Thank you, Ms Nokes. I will follow your advice, but will try to respond to some of the hon. Member’s points when I address the question of how we have gone about making the changes that this Bill introduces. As I have said, change is inevitable, but it is important to take a pragmatic approach, which is my answer to the hon. Member for Torbay (Steve Darling). The Bill is pragmatic in that it continues to allow £2,000 to be salary sacrificed free of any NICs charge, ensuring that 95% of those earning £30,000 or less will be entirely unaffected. It is pragmatic in that it gives employers and the industry four years to prepare.

• 21 Jan 2026 · National Insurance Contributions (Employer Pensions Contributions) Bill · Hansard source

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  I thank the hon. Member for Wyre Forest (Mark Garnier) for the reminder of the excellent debate we had before the Christmas break. I thank him and the hon. Member for Witney (Charlie Maynard) for their contributions. I will briefly reiterate the case for the three short and perfectly formed clauses of this Bill before focusing my remarks on the hon. Members’ amendments. As hon. Members know, this reform was inevitable. We have had a detailed discussion of the last Government’s secret plan to implement a very similar proposal—the “secret plan” label came from the Conservative party, not Government Front Benchers—and the cost of pensions salary sacrifice was due to almost treble, from £2.8 billion in 2017 to £8 billion by 2030. That is the equivalent of the cost of the Royal Air Force. The status quo is also hard to defend when low earners and the 4.4 million self-employed people across the UK are entirely excluded, reinforcing the point made by my hon. Friend the Member for Harlow (Chris Vince).

• 21 Jan 2026 · National Insurance Contributions (Employer Pensions Contributions) Bill · Hansard source

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  I am listening to every word of your strictures, Ms Nokes. This Bill is also pragmatic by providing time to adjust and by ensuring that saving into a pension remains hugely tax-advantaged. I say gently to Members who do not agree with the detail of this Bill that they should be careful not to give the impression to savers or those not saving that there is not already a strong financial incentive to continue pension saving in exactly the way people have been doing. Clause 1 provides for that pragmatic approach in Great Britain. Clause 2 does the same for Northern Ireland, and clause 3 provides for the territorial extent and start date of these measures. I will turn more substantively to the amendments tabled by the shadow Minister and the hon. Member for Witney. At one level, I was glad to see amendments 5 and 6 tabled by the shadow Minister, which aim to exempt basic rate taxpayers. It shows the Opposition, as part of the secret plan that I mentioned earlier, accepting the inevitability of change and instead grappling with what the right pragmatic version of that looks like. In many ways, the amendments aim to deliver the same objective as the £2,000 cap, which, as I said, will mean that 95% of those earning less than £30,000 are unaffected, as are the vast majority of basic rate taxpayers.

• 21 Jan 2026 · National Insurance Contributions (Employer Pensions Contributions) Bill · Hansard source

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  No, I will not mention the welfare budget.

• 21 Jan 2026 · National Insurance Contributions (Employer Pensions Contributions) Bill · Hansard source

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  I beg to move, That the Bill be now read the Third time. The Bill amends the Social Security Contributions and Benefits Act 1992, creating a power to apply employer and employee national insurance contributions on salary sacrifice pension contributions above £2,000 a year from April 2029. Reform of this type, as I have said, was inevitable. The cost to the Exchequer of salary sacrifice pension schemes was due to almost treble by 2030 without reform. The Government are taking a pragmatic and balanced approach to that reform: first, by introducing a cap so that ordinary workers are, in the vast majority of cases, unaffected; secondly, by giving employers, employees and providers a long lead-in time, so that everybody has plenty of time to prepare; and thirdly, by ensuring that saving into a pension, including via salary sacrifice, remains hugely tax-advantageous. The Government continue to provide over £70 billion of income tax and national insurance relief on pension contributions each year. Employer pension contributions will remain the most tax-advantaged part of the system. In this debate and others on pensions, we have heard strong cross-party consensus that greater pension adequacy is important. We all look at the forecasts for private pension income and see that they show lower private pension income on average for those retiring in 2050 relative to those retiring today. That is not an acceptable place to be. Answering that question is the job of the Pensions Commission, which we have put in place with cross-party support. It is rightly examining the question of retirement income adequacy and fairness. I gently note that those groups that we all agree are under-saving for retirement, such as low earners and the self-employed, are precluded from using salary sacrifice or are much less likely to use it than other groups. Part of what we are doing through the Bill is delivering badly needed reforms to the tax system alongside other measures from the Budget. These measures are what it takes to keep waiting lists falling, cut borrowing and cut energy bills in the years ahead. Those who do not wish to support changes like these cannot have it both ways and call for additional spending, additional support on energy bills and the rest. More generally, it is important that we all consider the effectiveness of tax reliefs in the system, which cost a cumulative £500 billion a year. If we defend the status quo, even in the face of tax reliefs, which are hard to justify and whose costs are rising significantly, that means that higher taxes for everybody else. We are not prepared to see that happen. Indeed, I am sure that in their hearts the Opposition parties also believe that these reforms are necessary. As a test of that, I invite the shadow Minister to stand up and commit to reversing the changes if—though it is very unlikely—the Conservatives ever happen to form a Government again. I am 100% sure that he will not do that, because he knows that these changes need to be made. On the basis of what should be cross-party support, I commend the Bill to the House.

• 21 Jan 2026 · National Insurance Contributions (Employer Pensions Contributions) Bill · Hansard source

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  The pragmatic approach is to allow people to continue with salary sacrifice up to £2,000 and to not bring in the measure for four years, so that people have time to adjust. Opposition Members will need to justify wanting to spend more than is being spent on the Royal Air Force on that—I sat through Prime Minister’s questions today, and I heard people calling for more defence spending—while not being able to live up to what that requires, which is taking seriously that we spend tax reliefs effectively. For everybody, there will still be a strong tax incentive to save into their pension. Taking the approach that the Opposition propose, rather than our proposed cap, would likely be impossible to implement in practice and add unnecessary complexity. That is not least because employers would in many cases not know which employees would end up being basic rate taxpayers. They certainly would not know for sure until the end of the financial year, or at least late on into it. Amendments 7 and 8 would uprate the cap by inflation. The Government have set out our policy intent for a £2,000 cap to be introduced in April 2029, with the timing driven by the desire to give everyone time to adjust. In that context, it does not make sense to index that cap ahead of 2029. Our view is that the future level of the cap in the next decade and beyond is for Budgets in those decades—or at least significantly closer to them. I know that Members are keen to start debating the 2031 Budget, but having heard from Ms Nokes, I think we should leave that for another day. Our approach is consistent with the one that this House has taken under Governments of all three main parties, which is to have key elements of the pension tax system that are not routinely indexed, including the annual allowance. It is of course right that this and all Governments will want to keep the cap under review to ensure that it continues to meet the objectives we have set out today. Several of the new clauses probe at the impact of the changes. The Government have published a tax information and impact note alongside the Bill. It sets out the impact of the policy on the Exchequer, the economy and individuals and businesses. It also provides an overview of the equality impacts. New clauses 1 and 2 focus on SMEs. I have heard suggestions—this has been gently hinted at today—that SMEs are more likely to be affected. The opposite is true. Only 39% of employers offer pension salary sacrifices, and small businesses are less likely to do so than larger businesses. Indeed, the status quo puts SMEs at a disadvantage relative to their larger competitors, which is the opposite of the point that the hon. Member for Witney wanted to make. New clause 3 focuses on marginal tax rates, but the changes in the Bill do not directly affect a person’s marginal tax. Those wanting to make pension contributions to keep their taxable income below a certain level can continue to do so, and I have read much misleading commentary on that point. New clause 4 proposes an impact assessment of the changes before they take effect and five years after. I again commend the hon. Member for Wyre Forest, who is showing admirable zeal for supporting the argument that I made on Second Reading that any responsible Government should keep the £500 billion of tax reliefs under review to ensure that they are delivering efficiently on their objectives. That is the exact thought pattern that identified this relief as needing reform. I look forward to the shadow Minister changing his mind and supporting our measures. The Government should and will continue to keep this and all taxes and tax reliefs under review, rather than singling this particular relief out via primary legislation. I turn briefly to new clauses 5 and 6, which focus on the impact on pension savings. I can reassure the Committee that the Office for Budget Responsibility has set out that it does not expect any material impact on savings as a result of the Budget 2025 tax changes. I hope that these remarks reassure Members on the points that their amendments have raised. I commend the Bill to the Committee. Question put, That the amendment be made.