Rebecca Smith

Rebecca Smith

Conservative — South West Devon

Speaking in the House of Commons on 10 June 2025

Debate

Mother and Baby Institutions Payment Scheme: Capital Disregard

Contribution

The hon. Lady is a true champion for Northern Ireland. I cannot comment on how that would happen; the Minister is better placed to say whether that is possible. But clearly Northern Ireland is as much a part of the island of Ireland, depending on where one’s politics lie, and it would make sense to include anyone who experienced this. I am not in the position of the Minister in being able to say what might happen in the future. In this debate we have also well-rehearsed the compensation payments for other well-known scandals: the Post Office scandal, the infected blood scandal, the compensation for victims of 7/7, and the Windrush scandal. We know the argument: those people are all eligible for full benefits and their capital is not regarded. Although I appreciate that a precedent can be set, the difference that makes this situation slightly more difficult is that the payments originate from another country. The situation is unique when compared with the others, but ultimately the precedent is clearly there. Traditionally, the Department for Work and Pensions has opposed the step of disregarding capital payment from additional financial schemes. However, the scheme was only set in motion in 2021. Now that the dust has settled and it is clear that many are not claiming the money they are entitled to because of that lack of disregard, it will be interesting to hear whether the Department plans on changing its mind. Although in government the Conservative party did not endorse the introduction of a capital disregard for these compensation payments, the issue was also not discussed to the same extent at that time. That is why the hon. Member for Beckenham and Penge requires our congratulations; we are three or four years into the scheme, the dust has settled, and it is clear that there are problems with people applying—we cannot get away from that fact. Under the previous Government, the Irish Government expressed that they would press other Governments to introduce dispensation for these capital payments within their welfare systems. However, the then Secretary of State for Northern Ireland, Chris Heaton-Harris, said in March 2024 that no such approach had been made by the Irish Government. One of the questions for the Minister is whether in his time in office such an approach has been made by the Irish Government. One could argue that the onus is on the Irish Government to provide the list of individuals likely to be impacted by this approach. With the consent of those individuals, that information could be shared with the Department for Work and Pensions so that we at least know who might be in line for that support. More work is necessary to calculate how many people currently in receipt of welfare benefits in the UK might be impacted, because not everyone who can claim compensation falls into that bracket, and the financial pressure that a lack of dispensation places on them. What sums have been done and what are the numbers likely to be? What would the cost be if the capital payments for this scheme are disregarded when it comes to benefits? This is an extraordinary situation, as I have already alluded to, and I agree entirely with the position. I wait to see what the Minister and the new Government decide. In 2021, the Taoiseach of Ireland, who, as we have heard, was involved in setting up this scheme, said of the report that brought it about: “This detailed and highly painful report is a moment for us as a society to recognise a profound failure of empathy, understanding and basic humanity over a lengthy period. Its production has been possible because of the depth of courage shown by all those who shared their personal experiences with the commission. The report gives survivors what they have been denied for so long, namely, their voice, their individuality and their right to be acknowledged.” That, for me, sums up the entire argument. I look forward to hearing what the Minister has to say in response.

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