Oral Answers to Questions

Lord Sharma Excerpts

Monday 2nd July 2018 Commons Chamber

[Neil Coyle (Bermondsey and Old Southwark) (Lab)]

4. What assessment she has made of the efficacy of universal credit in supporting people into work.

[The Minister for Employment (Alok Sharma)]

The Department published an analysis on 8 June which showed a near doubling of the proportion of UC claimants in a paid job after eight months into the claim. The Department published analysis last year which shows that UC claimants are 4 percentage points more likely to be in work than an equivalent claimant on JSA six months after their claim.

[Neil Coyle]

The National Audit Office reported that the Department will never be able to measure whether universal credit actually leads to more people in work because it cannot isolate the effect of UC against other economic factors. So if the Department serious in what it told the NAO about intending to evaluate specifically the impact of UC, is that evaluation under way, how many people are being evaluated and when will it report?

[Alok Sharma]

As the Secretary of State has said, we are at record levels of employment in this country and that is because of the policies of this Government. The hon. Gentleman talks about the 200,000 extra people who will be in work as a result of UC. He will also know that, in 2012, the Institute for Fiscal Studies looked at the methodology, which related to the key element of this, which was the financial incentives that will make more people go into work, and it concluded that this was within the plausible range.

[Andrew Bridgen (North West Leicestershire) (Con)]

Does my hon. Friend agree that it is right that our welfare system supports those in need, but in the long term the best way out of poverty is sustainable employment?

[Alok Sharma]

My hon. Friend is absolutely right. We are at record levels of employment in this country. It is interesting that the Opposition talk about estimates. If I remember correctly, back in 2010, the Opposition said we would lose 1 million jobs as a result of our policies, but we have created 3.2 million. At the end of the day, when it comes to estimates, I am not taking lectures from the Opposition.

[David Hanson (Delyn) (Lab)]

5. What assessment she has made of the implications for her Department’s policies of the findings of the NAO report entitled rolling out universal credit, published on 15 June 2018.

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[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

7. What progress her Department is making on the roll-out of universal credit.

[The Minister for Employment (Alok Sharma)]

Nearly 1 million people are now claiming universal credit, with around 37% of them in employment. We take 5,000 new claims a day and universal credit is operational in half of all jobcentres, with the full roll-out expected to be concluded by the end of the year.

[Gavin Newlands]

From the Government’s own business case for universal credit, it transpires that just 3% of those who have been brought into conditionality under universal credit are expected to find work, as a result of sanctions. Given that my constituents are going to suffer this roll-out in September, does he think that this is a robust business case for his Department’s punitive and callous sanctions regime?

[Michael Fabricant (Lichfield) (Con)]

Enunciate, man!

[Alok Sharma]

The hon. Member for Paisley and Renfrewshire North (Gavin Newlands) talks about sanctions, but he will know that the regime is different. For example, under JSA if somebody who was due to come in for an interview does not contact us after five days, they fall out of the system and are not sanctioned. Under universal credit, however, we continue to pay all the elements—the child element and the housing element—but the sanction that they would face applies only to the standard allowance. The hon. Gentleman talks about wanting to help people, but the Scottish National party voted against £1.5 billion of support. If he wants to support people, he should try to support the Government from time to time.

[Mr Speaker]

Order. The hon. Member for Lichfield (Michael Fabricant), from a sedentary position and rather gratuitously, offered advice and exhortation to the hon. Member for Paisley and Renfrewshire North (Gavin Newlands). I simply say to the hon. Member for Lichfield that we can always hear him with crystal clarity. He is in no danger of not being noticed.

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[Jessica Morden (Newport East) (Lab)]

Constituents who do not have a passport or driving licence, because they do not drive or have no need of one or cannot afford one, cannot use the online verification system and need to be seen in person at a job centre, but there are huge waits for appointments, including for those who urgently need advance payments. What is the Minister doing to tackle that?

[Alok Sharma]

The hon. Lady knows that advance payments are available if they are required on the day. As for verification, there is a set of criteria that can be applied so that we do not have to go through the verification system. If the hon. Lady has specific cases, she should please bring them to me as I would be happy to look into them.

[Ronnie Cowan (Inverclyde) (SNP)]

8. How many universal credit applicants have died during the period that their application was being assessed and as a result have received a zero payment for the days during that period when they were alive.

[The Minister for Employment (Alok Sharma)]

For universal credit full service, around 1,200 cases have been closed with a deceased closure reason since roll-out began in 2016, with the vast majority receiving a payment.

[Ronnie Cowan]

I know of cases where no universal credit payment has been received when constituents have passed away towards the end of their assessment period. Essentially, the DWP classes someone who dies at the end of an assessment period as having died at the beginning. Will the Minister address this so that bereaved families are not financially punished?

[Alok Sharma]

I have corresponded with the hon. Gentleman about one specific case. There are circumstances in which payment is still made after the death of a claimant and where payments have continued for two subsequent assessment periods, such as when the individual was in a couple. However, I note the hon. Gentleman’s point and will look into the policy.

[Helen Goodman (Bishop Auckland) (Lab)]

A connected problem might be that the Department does not tell people whether they are entitled to prescriptions when their UC claim is awarded. Will the Department please start doing that, because several of my constituents have been in touch in deep distress because of the fivefold fines that they have been forced to pay?

[Alok Sharma]

We do not want anybody to be in distress. If colleagues on either side of the House have specific cases, they should bring them to Ministers. We hear a lot of general commentary, but we would like to help individuals, so please bring us those specific cases.

[Giles Watling (Clacton) (Con)]

9. What assessment her Department has made of rates of universal credit claimant satisfaction.

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[Alex Norris (Nottingham North) (Lab/Co-op)]

T9. Universal credit is having a profound impact on local authorities, such as enormous housing revenue account pressures. Ahead of the roll-out of universal credit in Nottingham, what new resources will be made available to Nottingham City Council to mitigate this impact?

[The Minister for Employment (Alok Sharma)]

As the hon. Gentleman will know, a “new burdens” policy is in operation and has been for many years. Where local councils come forward with specific costs, we review them and make payments. In 2017-18, £13 million was paid out to local councils.

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[Kevin Foster (Torbay) (Con)]

As the Minister will know, universal credit rolls out in Torbay on 5 September. I have already welcomed the work that has been done by the DWP to engage with me. Will he confirm what resources will be made available to ensure that the roll-out on 5 September is successful for my constituents?

[Alok Sharma]

My hon. Friend will be receiving a letter from the local jobcentre manager, and that will give him an opportunity to engage. We make sure that work coaches provide the one-to-one support that is so important under universal credit.

[Tracy Brabin (Batley and Spen) (Lab/Co-op)]

Joanne in my constituency needs 24-hour care. She was selected for early mandatory reassessment last November, a full year before her PIP was supposed to run out. She lost that reassessment and is appealing. When she lost, her money was stopped, and the family are living on food bank generosity. Does the Minister agree that that is deeply unfair? Will she take a fresh look at maintaining benefit payments for those who have early reassessments—in that case, a whole 12 months before the PIP was supposedly going to run out?

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[Rachel Maclean (Redditch) (Con)]

I do not want to see any young person in Redditch unemployed, which was why I set up Redditch Mentors, a scheme to help young people to reach their full potential. The last Labour Government presided over a record rise of 45% in young people being unemployed. What more are the Government doing to improve that?

[Alok Sharma]

May I commend my hon. Friend on all the work she does in her constituency? Youth unemployment is at a record low—it is 40% lower than it was under the last Labour Government—and programmes such as the youth support programme are available to help individuals. We value young people. It is about time that Labour did the same.

[Stephen Timms (East Ham) (Lab)]

A Minister suggested earlier that the policies of the Labour Government had not reduced poverty. Are Ministers not aware that child poverty was reduced by 800,000 over 13 years thanks to the policy of the Labour Government? Are they also aware that it is now rocketing?

[Alok Sharma]

As the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for North West Hampshire (Kit Malthouse), made clear, since 2010 there are 300,000 fewer children living in absolute poverty. As we have heard, the route out of poverty is work. We have record levels of employment, and that is something we should all welcome across the House.

[Several hon. Members rose—]