The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
Thank you for your kind words, Mr Deputy Speaker.
I thank the hon. Member for Coatbridge, Chryston and Bellshill (Hugh Gaffney) for securing this debate on this important issue. He is a passionate campaigner on this issue, and he knows me well enough to know that I share his passion for reducing poverty, food insecurity and disadvantage.
I must confess that I have not yet, in the handful of weeks in which I have been in this post, had the opportunity to visit Scotland. I hope to correct that at the earliest available opportunity, perhaps even alongside the hon. Gentleman or a number of the other representatives from Scotland who are here. I am absolutely keen, new in post, to get out and about as much as possible, meeting DWP staff, charities, claimants, vulnerable groups, and, of course, Members of this House to gain a better understanding across the country of what is working well, what is working not so well, and, in the case of the latter, identifying what steps and interventions we need to put in place to tackle all forms of poverty and disadvantage.
I share the concern that has been expressed about what the latest statistics tell us about poverty levels in Scotland and in the UK as a whole. It is absolutely right that any Government are held properly to account for the effectiveness of their policies in tackling poverty and disadvantage. Underpinning this Government’s commitment to tackling all forms of poverty is our firm conviction that delivering a sustainable long-term solution means building a strong economy and having in place a benefits system that works with the tax system and the labour market to support employment and higher pay. We believe that this is the best way to achieve better long-term outcomes, particularly for disadvantaged children. We are proud, as a Government, of the progress we have made. We now have a record-breaking labour market with over 3.6 million more people in work across the UK compared with 2010. Unemployment is at its lowest rate since the 1970s, having fallen by more than half since 2010.
We are also delivering on our promise to get more people into work in Scotland. Since 2010, employment in Scotland has risen by about 250,000, with unemployment down by 126,000. In fact, Scotland has a lower rate of unemployment, at 3.3%, than the UK national average of 3.9%. Wages are now outstripping inflation—in fact, they are rising at the joint fastest rate in a decade—and about three quarters of the growth in employment since 2010 has been in full-time work, which evidence shows substantially reduces the risk of poverty.
Dr Cameron
I thank the Minister for the excellent points that he is making. No debate on this subject would be comprehensive without referring to the fact that people with disability are affected more than anyone else in relation to poverty. What more can be done to get people with disability into work and to make sure that they do not fall foul of the benefits system, and certainly do not have to struggle with the benefits system for access to support that they deserve and that the most vulnerable people in society should have?
Will Quince
The hon. Lady is absolutely right that we do not want anybody, particularly those with a disability, to struggle in accessing our welfare system. I can assure her that I will be working very closely alongside my hon. Friend the Minister for Disabled People, Health and Work to ensure that our welfare system does deliver in that regard.
Chris Stephens
As a member of the Work and Pensions Committee, I welcome the Minister to his post. We look forward to questioning him in his current role. If, as he has said, the economy is so strong and wages are so great at the moment, that surely tells us that food prices, and fuel prices, are rising higher than wages. Is that the case, or is he suggesting that food poverty exists for another reason?
Will Quince
I thank the hon. Gentleman for his intervention. I look forward to appearing before the Work and Pensions Committee in due course, and I hope that our relationship will be robust and, no doubt, critically constructive. He raises some good points. I have already set aside time to meet the Scottish National party’s spokesman on these issues, and I also look forward to sitting down with the hon. Gentleman to look at them.
A working-age adult living in a household where every adult is working is about six times less likely to be in relative poverty than one living in a household where nobody works. A child living in a household where every adult is working is about five times less likely to be in relative poverty than a child in a household where nobody works. There is only a 7% chance of a child being in relative poverty if both parents work full time, compared with 66% for two-parent families with only part-time work. We will continue to reform our welfare system, so that it promotes work as the most effective route out of poverty and is fairer to those who receive it and to the taxpayers who pay for it.
Universal credit is, of course, at the heart of these reforms and will help tackle poverty by helping an extra 200,000 people into work. It is a modern benefit with one monthly payment that adjusts to earnings, avoiding the cliff edges associated with the legacy benefits that it replaces. It will also be £2 billion a year more generous than the previous system. A number of Members across the House have raised concerns, and as a Government we have responded to those concerns by making changes to remove waiting days and make bigger advance payments available. In the last Budget, we announced a £4.5 billion cash boost, which will make a huge difference to the lives of working families and provide extra support for people moving on to universal credit.
Chris Stephens
I thank the Minister for that, but the problem with the advance payment is that it is very much seen as a loan. Is the Department, as it previously indicated to the Work and Pensions Committee, looking at whether the advance payment could become the first payment, which could relieve the reliance on food banks and deal with food poverty?
Will Quince
I thank the hon. Gentleman for his further intervention. As I said, we have made improvements to the initial UC assessment period, including the removal of waiting days and advances of up to 100% of the indicative first payment. It is important to say that the advances are 100% interest-free, and people have to pay them back over 12 months; as of 2021, it will be over 16 months. However, he makes a fair point. We need to ensure that claimants are working with their coaches and are absolutely clear about what they are taking on. It is not a loan; it is an advance. We have to ensure that work coaches are advising appropriately and ensuring that options are available to the claimant. They do not have to take it all in one go, for example; they can take a small amount as per their needs at the time. I am willing to discuss that with him in further detail.
I mentioned the concerns that were raised and the changes that were made in the last Budget. In particular, we have put an extra £1.7 billion a year into work allowances, increasing the amount that hard-working families can earn before the taper is applied. That is an extra £630 a year for 2.4 million families, many of them in Scotland.
We are also working in partnership with Citizens Advice Scotland to provide a consistent UK-wide service and assist claimants to successfully make their universal credit claim. The Citizens Advice Help to Claim service offers tailored, practical support to help people make their claim and receive their first full payment on time. That service is available online, over the telephone and face to face through local Citizens Advice services. We are also working closely with the Scottish Government to help them achieve their goals on UC flexibilities. For example, UC Scottish choices are now available to all claimants in Scotland on full service who are not in receipt of a DWP alternative arrangement plan.
No one in the Government wants to see poverty increasing or reported increases in food bank use. The recent poverty statistics are, of course, disappointing. However, child poverty in Scotland has remained the same or decreased across all four of the main measures in the three years to 2017-18, compared with the three years to 2009-10. The statistics published in March this year represent a year—2017-18—when some families struggled to keep pace with rising costs, including a higher level of inflation, which the hon. Member for Glasgow South West (Chris Stephens) referred to, but since then there has been a year of real wage growth. Earnings have outpaced inflation for 13 months in a row, with real wages growing 1.6% on the year. The statistics do not reflect the substantial additional funding for our welfare system announced in the last financial year, which are only just beginning to take effect.
Increasing the rate of employment is not, however, the limit of our ambition. The Government have gone much further than previous Governments to support working people and have set out their ambition in the Chancellor’s spring statement to end low pay across the UK. UC works alongside other policies introduced by this Government to promote full-time employment as a way out of poverty and towards financial independence. In particular, it offers smooth incentives for people to increase their hours, and we are confident that as UC reaches more working families we will see more working full time.
Our national living wage, which is among the highest in the world, is expected to benefit more than 1.7 million people; and the increase to £8.21 from April this year will increase a full-time worker’s annual pay by more than £2,750 since 2016.
Alison Thewliss
The Minister makes a point about the living wage, but it is not a real living wage as defined by the Living Wage Foundation. Also, it is not available to people under the age of 25. Why does he think that a 16, 17, 18, 19, 20, 21, 22, 23 or 24-year-old in the same job as a 25-year-old is not entitled to the same wage?
Will Quince
I thank the hon. Lady for her question. She has long campaigned on this issue. The national living wage that we have introduced will make a huge difference, but, referring to the wider point of poverty, I want to be clear that it is not just a Department for Work and Pensions issue. As part of my role, I want to work across the Government with my counterparts in other Departments—the Department for Environment, Food and Rural Affairs, the Ministry of Housing, Communities and Local Government, the Treasury and the Department of Health and Social Care—to tackle poverty in all its forms. We all have a part to play. I hear what she has to say, and I am happy to meet her at a later stage to discuss that issue at more length.
Hugh Gaffney
The Minister says that he will end low pay and increase the living wage. Will he end zero-hours contracts?
Will Quince
I thank the hon. Gentleman for his question. The answer is no, because zero-hours contracts work for a large number of people. I have spoken to people in my constituency who find huge benefit in zero-hours contracts. They give them the flexibility that they need in the work place.
Our tax changes will make basic rate taxpayers more than £1,200 better off from April, compared with 2010. Taken together, the most recent changes mean that a single person on the national living wage will, from April, take home over £13,700 a year—£4,500 more than in 2009-10. The Government remain committed to providing a strong safety net for those who need it. This is why we continue to spend more than £95 billion a year on welfare benefits for people of working age. I would say gently to the hon. Gentleman and other Opposition Members that the Scottish Government can tackle poverty in all its forms through its devolved skills, education, health and employment programmes such as those introduced to support disadvantaged pupils within the education system. The UK Government have also taken similar steps to support the most vulnerable by providing free school meals and our healthy start vouchers. We are also investing up to £26 million in school breakfast clubs and £9 million to provide meals and activities for thousands of disadvantaged children during the summer holidays.
We have also heard from the hon. Gentleman about the impact of food insecurity on health. The UK Government are taking action. For example, chapter 2 of the childhood obesity strategy announces a bold ambition to halve childhood obesity and significantly reduce the gap in obesity between children from the most and least deprived areas by 2030. I will ensure that my counterpart in the Department of Health and Social Care is aware of some of the wider issues that have been raised in this debate. The Government also want to build a better understanding of food insecurity.
Jim Shannon
I recently met a representative of a lobby group that, along with Sainsbury’s, is carrying out a project in a number of communities that involves schools, better eating and more careful eating. It is intended to address obesity and to involve young people of five to 15 in activities during the summer months. A great many people out there are doing great things, and sometimes we need to recognise them.
Will Quince
The hon. Gentleman is right: we should learn from things that are being done really well across the country and seek to share that best practice. I join him in thanking the organisations that make such a big difference.
Will Quince
One moment.
As I said, the Government also want to build a better understanding of household food needs, to ensure that we are targeting support at those who need it most. That is why we have worked with the Scottish Government, food insecurity experts and the Office for National Statistics to introduce a new set of food security questions in the family resources survey, starting from April 2019. In future, we will be able to monitor the prevalence and severity of household food insecurity across the UK, and for specific groups, better to understand the drivers of food insecurity and identify which groups are most at risk.
The hon. Member for Coatbridge, Chryston and Bellshill also spoke about the recent trends in food bank use. I reassure the House that I am very much alive to the issue. I have already had an introductory conversation with the chief executive of the Trussell Trust, and I plan to visit a number of food banks to understand more about the experiences of food bank users. I echo comments made by hon. Members thanking volunteers across our country and those who donate to food banks.
Will Quince
I want to finish on food banks. My Department is also exploring whether, building on existing good practice, working more closely with food banks can help us to identify and better support any customers who may, for a variety of reasons, not be receiving the full formal support to which they are entitled.
I want to come back on two comments made during this debate. The hon. Member for Glasgow Central (Alison Thewliss) asked about those with no recourse to public funds. I hear her point. Those people and how they are supported is a matter for the Home Office, but I will take her point away and have that conversation with my Home Office counterpart.
The hon. Member for Strangford (Jim Shannon) mentioned pensioner poverty. The percentage of pensioners living in poverty has fallen dramatically over several decades. Relative poverty among pensioners has halved since 1990. The Government will be spending £121.5 billion on benefits for pensioners this year, including £97 billion on the state pension. We are absolutely committed to the triple lock for the rest of this Parliament.
In conclusion, I would like to reaffirm our view that the long-term approach that we are taking is the right one if we are to deliver lasting change. However, we are not complacent: this is an area of real focus for me and the Department. I look forward to working with colleagues from across the House, the devolved Administrations and charities to tackle poverty in all its forms.
Question put and agreed to.