Minister for Pensions met with Viscount Thurso on 15 June to discuss AEA Technology as per the commitment made during the passage of the Pensions Schemes Act 2026.

We recognise the very real challenges that AEAT pension scheme members have faced given the insolvency of their employer and their entry into the Pension Protection Fund.

The Pension Schemes Act 2026 provides for annual increases on compensation payments from the Pension Protection Fund that relate to pensions built up before 6 April 1997, where schemes provided for this.

AEA Technology pension scheme members with pre-97 accrual will benefit from this change.

The rate of Bereavement Support Payment (BSP) is reviewed annually on a discretionary basis as part of the uprating process. As BSP is not a cost‑of‑living benefit, it is not automatically linked to inflation. While factors such as Consumer Prices Index (CPI) may be considered in the annual review, there is no requirement to link to CPI and no fixed methodology for determining changes to its value.

The rate of Bereavement Support Payment (BSP) is reviewed annually on a discretionary basis as part of the uprating process. As BSP is not a cost‑of‑living benefit, it is not automatically linked to inflation. While factors such as Consumer Prices Index (CPI) may be considered in the annual review, there is no requirement to link to CPI and no fixed methodology for determining changes to its value.

I refer the honourable member to the answer given to UIN 9699 on 23 June 2026.

I appreciate the point the hon. Lady is making. I am not in a position to confirm an uprating from the Dispatch Box, but this will be considered in the usual way as part of the annual uprating process. There is a forthcoming debate in Westminster Hall in response to a petition on the adequacy of bereavement support payments, and I am sure she will participate fully in that debate, if she is able to, to make the case further.

Bereavement benefits have not been uprated for 10 years, and they simply do not recognise the lifelong impact of early bereavement on children and surviving parents. Will the Minister look again at uprating bereavement support benefits in line with inflation?

The government monitors developments in inflation and household saving through data published by the Office for National Statistics. Inflation can affect household saving behaviour through a number of channels, including its effect on real incomes, interest rates and confidence.

The household saving ratio was 9.9% in Q4 2025. This is slightly above the long-run average saving ratio since 1970, of 9.3%. Inflation was unchanged at 2.8% in May, having fallen from a peak of 11.1% in October 2022. The Government understands that higher inflation in recent years has added to household living costs, especially through the price of everyday essentials such as food and energy. The Monetary Policy Committee at the Bank of England has responsibility for controlling inflation, and the Government fully supports the action it is taking to sustainably return inflation to the 2 per cent target.

The Government is keen to reach agreement with the MPS Trustees on their proposed changes to the arrangements to benefit scheme members. The Government is mindful of the need to resolve this issue as swiftly as possible and will make an announcement once agreement has been reached.

The Government engaged extensively with both primary steel producers and downstream users to inform development of the steel trade measure, including a Call for Evidence in July 2025. Quotas have been designed to allow for sufficient imports to ensure continued availability of these goods to UK downstream users without unnecessary additional costs.

Categories 14 and 27 will be covered by the Measure. Further information on the product codes in scope is available on GOV.UK.

We will continue engaging regularly with companies across the supply chain, through Ministerial and official level engagement, and will monitor implementation of the measure. This includes conducting a review after twelve months to ensure it remains effective and that the balance is right for both producers and downstream users.

Government is taking seriously the impacts of the Middle East Conflict on the UK’s food and farming sectors and monitoring the effects of the crisis as they emerge.

This Government is taking action to ease that pressure. We are aware that fertiliser prices have increased and are committed to keeping costs for farmers down.

DEFRA is working closely with retailers to prevent temporary increases becoming embedded in long-term food prices. The Chancellor announced the suspension of tariffs on a range of everyday food and drink items until 2028. This is expected to save consumers £100-£200 million a year.

At last year’s Budget, the Chancellor took the decision to fund 75% of the domestic share of the Renewables Obligation through the Exchequer and ended the levy-funded Energy Company Obligation. These decisions took on average £150 of costs off household energy bills and are forecast to reduce inflation by over 0.2 percentage points in 2026/27.

The Government’s fiscal plans – which factor in the impacts of the Chancellor’s decisions on levies – are bringing down borrowing and debt, keeping the public finances on a sustainable path and supporting the Bank of England to keep inflation as low as possible. According to the IMF, between 2025-2030, the UK will be reducing borrowing more than any other G7 country.

The Government keeps all taxes under review and is introducing a new framework to subject levies to enhanced scrutiny and ensure they are affordable, value for money and do not impose unnecessary costs.

Higher inflation in recent years has added to pressures on household finances, especially through the price of everyday essentials such as food and energy.

The Office for National Statistics does not produce inflationary data at the constituency level. At the national level headline CPI inflation decreased from 3.3% in March to 2.8% in April. This was mainly driven by lower household energy bills and a fall in services inflation. Food and non-alcoholic beverage inflation fell from 3.7% in March to 3.0% in April.

Cost of living pressures are still felt by many families. Thanks to decisions made at the Budget, the Government took an average of £150 off energy bills from April, froze rail fares and NHS prescription fees for this year, and put more money in people’s pockets by removing the two-child limit and increasing the national living wage.

To tackle the most acute cost pressures arising from the Middle East conflict, the Government announced emergency support for heating oil customers and an extension to the fuel duty cut until the end of the year. To tackle food prices, the Government is consulting businesses on suspending agri-food tariffs on 125 types of products, which will bring down the cost of staple goods that families across the UK buy every week.

Bereavement Support Payment aims to provide support during the acute period following a bereavement through an initial lump sum followed by up to 18 monthly payments. It is reviewed annually on a discretionary basis as part of the uprating process.

Approved Mileage Allowance Payments (AMAPs) are used by employers to reimburse an employee's expenses for business mileage in their private vehicle. The AMAP rate is advisory, so employers can choose to pay more or less than the advisory rate. Employees reimbursed less than the AMAP rate may be able to claim tax relief on the difference, depending on their circumstances. Amounts reimbursed over the AMAP rate are classed as earnings and subject to Income Tax.

In recognition of the pressures facing drivers, the Government announced in May the first uprating of these rates since 2011, backdated to April 2026. For 2026/27, mileage rates for cars and vans will increase from 45p to 55p per mile for the first 10,000 miles annually, followed by 25p per mile thereafter. These rates are UK-wide so apply to Northern Ireland.

The 25p per mile rate for mileage above 10,000 miles remains unchanged, reflecting that the average motorist drives fewer than 10,000 miles for work and the need to balance targeted support with overall fiscal responsibility. Employees can also claim an additional 5p per mile for each fellow employee transported. Mileage rates for other vehicles, including motorcycles, remain unchanged.

Looking ahead and beyond 2026/27, the Government has already committed to a review of these rates and will set this out at the Budget. More broadly, the Government annually reviews the rates and thresholds of taxes and reliefs to ensure that they are appropriate and reflect the current state of the economy.

Headline inflation decreased from 3.3% in March to 2.8% in April, driven mainly by lower household energy bills and a fall in services inflation. Food and non-alcoholic beverage inflation fell from 3.7% in March to 3.0% in April.

The Government has already taken action to reduce the cost of living, including taking £150 off energy bills this year, freezing rail fares and NHS prescription charges, raising the National Living Wage, and extending the £3 bus cap.

Low and stable inflation is vital for growth and investment. The independent Monetary Policy Committee (MPC) at the Bank of England are responsible monetary policy, and the MPC has the government’s full support as it acts to return inflation to target sustainably.

The most important thing the government can do to bring down inflation is to get borrowing down and stick to our fiscal rules. We have already reduced borrowing by nearly 1% of GDP in the last year and we are set to reduce borrowing faster than any other G7 country by 2030.

We have also supported the MPC by directly bearing down on prices. Action taken at the Budget will reduce inflation by 0.4ppt in 2026-27, through measures on energy bills, transport costs and fuel duty.