Valedictory Debate
Lord Sharma Excerpts(5 months, 1 week ago)
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Sir Alok Sharma (Reading West) (Con)
I welcome this opportunity to put on record my heartfelt thanks to all those with whom I have worked during my time as a Member of Parliament for Reading West. I am enormously grateful to my constituents for putting their faith in me through four successive general elections, and over the past 14 years as an MP—and indeed, during the four years prior to that, when I was a parliamentary candidate.
I have had the great joy of working with so many brilliant people and organisations across Reading. Together, we campaigned successfully to set up one of the first free schools in the country, the All Saints Junior School, which is still rated outstanding. We founded a new secondary school, the Wren School. We won funding for upgrades for local train stations at Theale and Tilehurst, and money for a new station in Green Park. We got the money for and ensured the construction of flood-alleviation schemes in Tilehurst and Purley. We secured a vital road crossing upgrade on Dee Road in the vicinity of several primary schools. We kept Pincents hill green. We campaigned successfully together for stronger sentences for dangerous driving, and to strengthen legislation to deal with illegal encampments. We got the No. 33 bus redirected from the Birds estate. I could go on, and every colleague here will have a similar and probably longer list, but the one thing that I hope we will all agree on is that without the strength, energy and commitment of our constituents, none of what we do locally would be possible. I therefore thank each and every one of my constituents from the bottom of my heart.
It has been a real privilege to serve in government in a whole range of roles and Departments. I came into the role of Business, Energy and Industrial Strategy Secretary as the covid pandemic came upon us. I want to thank everyone, in the Government system and outside, who played such vital and important roles in making sure that we got support to millions of businesses and supported jobs up and down our country. As my hon. Friend the Member for Bury St Edmunds (Jo Churchill) said, we should be proud of what we did as a Government during the covid pandemic.
My right hon. Friend the Member for West Suffolk (Matt Hancock) is not in his seat, but he talked about vaccines. The vaccines taskforce sat within the Business Department, and we worked collaboratively across Government. If ever there was a beacon for how a national mission should be deployed, it would be the vaccines taskforce. Like my hon. Friend the Member for Bury St Edmunds, I place on record my grateful thanks to all the scientists, the folks in industry, the NHS, and the civil servants who worked so hard to ensure that our country was the first in the world to deploy a vaccine.
The last of the roles that I did in government was on COP26. I have been told by very many people internationally, including those in foreign governance, that COP26 was one of the biggest soft power wins for the UK in decades. We led the world on the green agenda, and that would not have been possible without the tireless work of so many of our brilliant civil servants, many of them unsung heroes, and, of course, the UK’s outstanding diplomats across the world. When I worked on COP, I genuinely felt that I stood on the shoulders of giants. We have for many years enjoyed a strong political consensus on the need to reach net zero in our economy. I believe—and I know that many friends here believe it, too—that we are stronger for it. I very much hope that that consensus is maintained in the critical decades ahead, because I can tell you that the world wants our country to continue to lead on the green agenda, and I hope that we will.
I also thank my friends in the Reading West Conservative Association, who first put their faith in me when they selected me in 2006. As all other colleagues have done, I thank my brilliant parliamentary staff from over the years. It is always invidious to name colleagues and pick them out, but I particularly want to place on the record my thanks to Jessica Inns, who has patiently worked with me for many more years than I think she would care to remember, and to Will Saunders and Rachel Quinn, who will continue to work right to the last day for the constituents of Reading West. I know that all their mums and dads will be thrilled that they are getting a mention in Hansard.
I also thank my family: my wonderful mum and dad, my fabulous wife Ingela, and my brilliant daughters Isabella and Charlotta. As we all know, we could not do this without their support. Serving as a Member of Parliament is a rare privilege, and I will always carry a piece of this place in my heart.
Employment, Social Policy, Health and Consumer Affairs Council
Lord Sharma Excerpts(5 years, 3 months ago)
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The Minister for Employment (Alok Sharma)
The Employment, Social Policy, Health and Consumer Affairs Council took place on 8 July 2019 in Brussels. The deputy permanent representative to the European Union, Katrina Williams, represented the UK.
The Council approved the non-binding 2019 country specific recommendations (CSRs) to member states, and endorsed the joint opinion of the Employment and Social Protection Committees, assessing the 2019 CSRs and the implementation of those from 2018. The Council also adopted guidelines for the employment policies of the member states 2019.
The Council debated the “economy of wellbeing” and “employment aspects of the strategic long term vision for a climate neutral economy”.
The Council closed with employment and social policy updates by the Commission on the International Labour Organisation, G7 and G20.
[HCWS1716]
Employment, Social Policy, Health and Consumer Affairs Council
Lord Sharma Excerpts(5 years, 4 months ago)
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The Minister for Employment (Alok Sharma)
The Employment, Social Policy, Health and Consumer Affairs Council will take place on 8 July 2019 in Brussels. The deputy permanent representative to the European Union, Katrina Williams, will represent the UK.
This extraordinary meeting of the Council is held to deal with the traditional “spring package” of items relating to the EU semester, which exceptionally were not available in time for its meeting on 13 June. The Council is to approve non-binding country specific recommendations (CSRs) to member states, and it will receive a joint opinion of the Employment and Social Protection Committees assessing the 2019 CSRs and the implementation of those from 2018. The Council will also adopt guidelines for the employment policies of the member states 2019, the substance of which is rolled-forward from last year’s guidelines.
Additionally, there will be policy debates on the “economy of wellbeing” and on “employment aspects of the strategic long-term vision for a climate neutral economy”.
Under other business, the Commission will provide information on international developments in the area of social and employment policy.
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Oral Answers to Questions
Lord Sharma Excerpts(5 years, 4 months ago)
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Mr Bob Seely (Isle of Wight) (Con)
The Minister for Employment (Alok Sharma)
One of the key transformations that universal credit provides is to support people who are in work, ensuring they can increase their earnings and develop in their career. It removes the 16-hour cliff edge, which held so many back on legacy benefits, and gives improved, tailored support through jobcentre work coaches.
Mr Seely
Will the Minister join me in thanking the excellent DWP staff on the Isle of Wight, some of whom I met in Newport a few weeks ago? I am sure he and the team will seek to make further improvements to universal credit, but it was clear to me, talking to those staff, that universal credit enables them to do more good for more people than the inflexible system that preceded it.
Alok Sharma
I thank my hon. Friend for being a huge champion for the Isle of Wight and working so well with his local jobcentre. I am very pleased about that and he is absolutely right. As a result of universal credit, people are able to get the support—that one-to-one support—that is so vital. Since 2016, an extra £10 billion has gone into the system.
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
My constituent, Amanda, who is a single mum with significant mental health problems, had her UC claim closed—unknown to her—at the beginning of May. She was told by the DWP that this was a sanction because she failed to complete an online review. I should also mention that she was in the last few weeks of her pregnancy. Given that Amanda is clearly a vulnerable person, will the Secretary of State commit to ensure that all work coaches are aware of their obligations following last year’s High Court judgment, which demands that they should treat vulnerable claimants appropriately?
Alok Sharma
Of course. The Secretary of State, I and all colleagues want to ensure that absolutely every single person claiming universal credit gets the appropriate support and the right level of support. I would be very happy to look at that individual case with the hon. Lady. I would just say on sanctions that these are not just handed out; there is a clear process. I can tell her that, in February 2019, only 2.45% of those who were under conditionality requirements actually had a sanction and the average sanction’s length was 30 days. But I will look at that case for her.
Alan Brown (Kilmarnock and Loudoun) (SNP)
My constituent, Craig Ferguson, has Asperger’s, but works in retail. He broke his leg, was not entitled to statutory sick pay and was advised to switch to UC. He then lost his severe disability premium. His UC has automatic deductions for an employment support allowance overpayment and, at times, he receives no UC award at all, which means that he has to depend on savings. How is that fair? Can his case be reviewed?
Alok Sharma
Of course, I am happy to look at that individual case. Perhaps the hon. Gentleman will get in touch with my office after this session.
Vicky Foxcroft (Lewisham, Deptford) (Lab)
Luke Graham (Ochil and South Perthshire) (Con)
The Minister for Employment (Alok Sharma)
I thank my hon. Friend for the energy with which he is supporting his constituents on universal credit. One of the key performance indicators is, of course, payment timeliness, which has improved significantly over the past couple of years, and that progress is matched in Alloa jobcentre. His local jobcentre staff will be happy to interact with him and, of course, I am also happy to meet him.
Eddie Hughes (Walsall North) (Con)
Alok Sharma
As my hon. Friend knows, more people are in work now than ever before. Indeed, the employment rate is higher in every region of the country than in 2010, including in the Black Country. Specifically, he may already be aware that Willenhall jobcentre is working closely with major employers on employment opportunities and, of course, that our mentoring circles programme is being rolled out for 18 to 24-year-olds to help them increase their employability skills.
Frank Field (Birkenhead) (Ind)
Employment, Social Policy, Health and Consumer Affairs Council
Lord Sharma Excerpts(5 years, 4 months ago)
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The Minister for Employment (Alok Sharma)
The Employment, Social Policy, Health and Consumer Affairs Council took place on 13 June 2019 in Luxembourg. The deputy permanent representative to the European Union, Katrina Williams, represented the UK.
The Council adopted conclusions on: closing the gender pay gap; implications for the safety and health of workers in the changing world of work; and the EU Council auditors’ report on the fund for European aid to the most deprived (FEAD).
The Council noted a progress report on the directive on equal treatment and debated employment and social policy aspects of country specific recommendations.
The presidency gave updates on two current legislative proposals: a regulation on European social statistics and revision of the regulations on the co-ordination of social security systems. The Council closed with information on events and initiatives in the broader field of employment and social policy.
In the margins of the meeting, Bratislava, Slovakia, was elected to host the new European labour authority.
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Employment, Social Policy, Health and Consumer Affairs Council
Lord Sharma Excerpts(5 years, 4 months ago)
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The Minister for Employment (Alok Sharma)
The Employment, Social Policy, Health and Consumer Affairs Council will take place on 13th June 2019 in Luxembourg. Kelly Tolhurst, Parliamentary Under-Secretary for the Department for Business, Energy and Industrial Strategy, will represent the UK.
The Council will be provided with a progress report on the directive on equal treatment. Conclusions will be presented to the Council for adoption on: Closing the gender pay gap; implications for the safety and health of workers in the changing world of work; and the EU Council Auditors' report on the Fund for European Aid to the Most Deprived (FEAD).
Under the agenda item on the European semester agenda item there will be a high level policy debate on the employment and social policy aspects of country specific recommendations.
Under other business, the presidency will give updates on current legislative proposals: a regulation on European social statistics and revision of the regulations on the co-ordination of social security systems. Information will also be provided on presidency conferences, gender balance on company boards and the work programme of the incoming Finnish presidency. The Maltese delegation will provide additional information on the outcome of the EU-Arab high-level meeting on disability rights and prioritising gender budgeting in the future multiannual financial framework.
In the margins of the meeting, representatives of the Government of each member state will make a decision on which member state will host the European Labour Authority.
[HCWS1608]
Universal Credit and Debt
Lord Sharma Excerpts(5 years, 5 months ago)
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The Minister for Employment (Alok Sharma)
It is a pleasure to serve under your chairmanship, Mr Gray, in this very important debate secured by the hon. Member for High Peak (Ruth George). Whatever our political differences, I am happy to acknowledge that she and indeed all the hon. Members who have spoken care very deeply about their constituents. I want to be clear that I want to ensure that every single person who is claiming universal credit gets the support that they absolutely deserve.
Let me start by setting out where we are with universal credit. Last year, universal credit completed its roll-out to all jobcentres across the country. We now have just under 2 million people claiming this benefit, and all new entrants to the benefits system now claim universal credit.
I entirely agree that we must ensure that we provide support through the welfare system to the most vulnerable. I am pleased that colleagues from all parties, including the hon. Member for High Peak, have acknowledged that changes have been made. My hon. Friends the Members for Waveney (Peter Aldous), and for Gloucester (Richard Graham), talked about the fabulous work being done by work coaches in our jobcentres.
As colleagues will know, in the last two Budgets, we announced changes to universal credit worth an additional £6 billion. I do not like to introduce rancour into this type of debate, and I am always open to discussion, but I gently point out that on those occasions, Opposition Members did not vote to support that extra money going into the system.
In the 2017 Budget, we announced a two-week run-on for those on housing benefit, the removal of the seven-day waiting period, and the ability for a claimant to get up to 100% of their estimated first-period payment as an advance, on the same day if needed. In last year’s Budget, among other measures, we announced increases to work allowances worth £1.7 billion a year. Colleagues touched on the additional run-on; from July 2020, there will be a two-week run-on of Department for Work and Pensions out-of-work legacy benefits for existing claimants who are being moved on to universal credit.
Alok Sharma
The hon. Gentleman will know that we inherited dire financial circumstances from the Opposition—I know that colleagues will not be happy at my mentioning that—and that is why we had to make difficult decisions. However, if Labour Members want more money introduced, then when that money is made available in Budgets, they should support those Budgets.
I will go back to the point about payments, including advance payments. I highlight that advances are interest-free.
Alok Sharma
I am sorry that the hon. Lady is unhappy, but that is a statement of fact.
Alok Sharma
Also, individuals will receive that money as an advance to their universal credit payment, so they will receive 13 payments over a 12-month period. I make it absolutely clear once again that, as I hope colleagues will acknowledge, these are interest-free advances. Of course, from October this year, the Government will reduce the maximum rate—
Alok Sharma
I will not, as there is quite a lot to get through.
From this October, the Government will reduce the maximum rate at which deductions can be made from a universal credit award from 40% to 30% of the standard allowance. By the end of 2019-20, it is forecast that around 290,000 universal credit households will have had deductions reduced, by an average of £295 over the year. It is already possible to extend the period over which advances are repaid to 15 months in certain circumstances, and of course, as Members have acknowledged, from October 2021, the maximum period will be extended to 16 months for all claimants.
One issue not touched on in the debate was payment timeliness, but it is worth pointing out that it has been raised in previous debates, certainly during my time as a Minister. Payment timeliness has improved significantly. We now pay around 85% of new claimants of universal credit in full on time. In addition, 95% of claimants are paid in full within five weeks of their payment due date. If there are delays in making the first payment, that can be due to outstanding verification issues, such as the need to provide bank statements or proof of rent. It can also be due to a claimant not signing their claimant commitment. For ongoing claims, payment timeliness is around 98%.
The shadow Minister, the hon. Member for Weaver Vale (Mike Amesbury), raised the issue of employment. The whole point of simplifying the welfare system is to remove the cliff edges and the disincentives to take on work and extra hours that existed under the legacy benefit system. We now offer claimants one-to-one support to help them to move into work.
I hope that colleagues will acknowledge that we are seeing record rates of employment, month after month. The shadow Minister talked about zero-hours contracts, but he will know that less than 3% of people in employment in the UK are on zero-hours contracts. That figure has fallen this year. Indeed, those on zero-hours contracts are doing about 24 hours of work a week on average.
We have recognised that we need to provide a consistently high level of support to those who may have difficulties in making a universal credit claim. That is why we announced our partnership with Citizens Advice and Citizens Advice Scotland, which are now funded to provide the “help to claim” service for claimants.
In the past, a number of colleagues have spoken about debt advice. They will know that debt advice is now fully funded by the financial services levy, and that service delivery is commissioned by the Money and Pensions Service, which was launched in January this year. In 2019-20, MaPS will provide around 560,000 sessions of debt advice in England. It is also worth noting that in addition to the funding that Citizens Advice receives for the “help to claim” service, it will, like other organisations, receive additional funding from MaPS to provide debt advice.
A number of colleagues raised the issue of rent arrears. I point out that a report published in July 2018 by the National Federation of ALMOs, or arms-length management organisations, showed that over three quarters of their tenants who had started claiming universal credit were already behind with their rent prior to commencing their claim. Also, research that we have carried out shows that the proportion of universal credit claimants who were in arrears at the start of their claim fell by a third after four months. In the universal credit full service claimant survey, which was published by the DWP in June 2018, 84% of claimants said that they felt confident about managing and paying their housing costs.
My hon. Friend the Member for Gloucester raised the issue of rent arrears and asked what further work we were doing on it. I can confirm that we are carrying out further analysis with a number of housing providers to investigate and understand the true level of rent arrears among their tenants, and what is causing those arrears. Of course, when we have that information, we will publish it.
A number of colleagues raised the issue of tax credit debt. Her Majesty’s Revenue and Customs already seeks to recover overpayments of tax credit debts. When a claimant moves on to universal credit, any outstanding debt is transferred to the DWP for recovery. This does not include debt that is subject to ongoing disputes or appeals, and HMRC tells the claimant the amount of debt that is being transferred to the DWP for recovery. HMRC and the DWP continue to work closely to improve the claimant journey. This includes having a joint inquiry team to handle any issues that tax credit customers might experience during their move to universal credit. Of course, if claimants are struggling with the rate of repayment applied, they can ask the Department to review that rate.
A large number of points were made during the debate, so I say to hon. Members that if they want to meet me separately to discuss any points in more detail, I am very happy to do that, or they can write to me. However, in the remaining couple of minutes that I have, I will try to cover off some of the points made in the debate.
On the discussion about poverty, I point out that income inequality and absolute poverty are lower now than in 2010, and indeed the number of children—
Alok Sharma
I will not, because I literally have just a couple of minutes left. As I was saying, the number of children in workless households in the UK is down by 665,000 since 2010.
There was a discussion about homelessness. Since 2011, the Government have provided local authorities with about £1 billion in discretionary housing payments to protect the most vulnerable claimants. The hon. Member for High Peak raised the issue of how people know what deductions are being applied to them; that is shown in their statement, separately from the journal, and is available online. She also raised a point about deductions. I point out that if a claimant is subject to deductions to repay an overpayment, and those deductions are causing financial hardship, they can request a review of that rate by contacting the Department. Claimants have had their repayment rate lowered, temporarily suspended, or indeed both.
A number of colleagues also asked why we were not able to bring forward the 30% deduction rate on the standard allowance. The delivery date was chosen to achieve the best balance between continually improving universal credit in order to respond to claimant needs, and ensuring that the service is technically and operationally scalable as the volume of universal credit continues to rise. The hon. Member for Makerfield (Yvonne Fovargue) raised an issue about the breathing space scheme; the Department is supportive of that scheme, and officials are reviewing it to see how it could be applied to DWP debts. I would be very happy to sit down and talk with her further when more information is available.
A number of colleagues, including the shadow Minister, raised the issue of the Metro campaign. The whole point of the “Universal Credit Uncovered” campaign is to tackle common myths about universal credit. The Department has consulted the Advertising Standards Authority, and our adverts reflect its advice. To those Members who talked about the amount of money being spent on this campaign, I advise them that it is certainly not £23 million.
The issue of split payments was raised by my hon. Friend the Member for Waveney; as he knows, those are already available. The hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) raised the issue of Highland Council. He and I have met a number of times about this issue, and as he will know, my officials continue to engage with Highland Council about that point. Finally, the Scottish Government have themselves cut funding for Highland Council.
In conclusion, we are making changes that are benefiting claimants, but I am always happy to talk to colleagues about how we can do better.
Oral Answers to Questions
Lord Sharma Excerpts(5 years, 5 months ago)
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The Minister for Employment (Alok Sharma)
Under universal credit, our work coaches provide vital one-to-one support to all claimants. Work coaches receive appropriate training to ensure that they can offer support to claimant groups with a variety of characteristics.
Tom Pursglove
As I understand it, the test and learn approach has been crucial to improving the system and getting it right for individual claimants. What key lessons have been learned and what steps have been taken to address them?
Alok Sharma
My hon. Friend is absolutely right: the test and learn approach has allowed us to adapt the delivery of universal credit to support claimants more fully. Examples include: abolishing the seven-day waiting period; the introduction of 100% advances; the landlord portal; and the flexible support fund being used to cover initial childcare costs.
Dr Rupa Huq (Ealing Central and Acton) (Lab)
Alok Sharma
Of course there is a range of reasons why people make use of food banks, but what is important is that the DWP makes sure that we get funds to claimants in a timely manner. The Secretary of State has already talked about the 100% advances and the two-week housing benefit run-on, and, of course, there will be additional run-ons coming on in 2020.
Stephen Kerr (Stirling) (Con)
I have constituents in Stirling who would like to take up work or to extend their hours of work but cannot afford to pay the upfront costs of childcare. Can the Minister tell the House what is being done to help parents with upfront costs of childcare?
Alok Sharma
My hon. Friend raises a very important point. Under universal credit, up to 85% of childcare costs can be covered and, as the Secretary of State announced earlier this year, we are making the flexible support fund available so that funding can be provided up front to take care of childcare costs, which will help people get into work.
Mike Amesbury (Weaver Vale) (Lab)
It is welcome that the Secretary of State has finally responded to pressure and abolished three-year sanctions, but failure to scrap this punishing regime entirely means, as we have heard across the House today, that many people including children will still suffer. Six months is a long time to go without money, so will she go the extra mile and abolish punitive sanctions altogether?
Alok Sharma
I welcome the fact that the hon. Gentleman has, in turn, welcomed what the Secretary of State has announced—it has absolutely been the right thing to do. Sanctions are not put forward indiscriminately; a very clear procedure takes place, and right now less than 3% of those who are on universal credit and under conditionality are getting a sanction. The average sanction rate is 31 days.
Dr Rosena Allin-Khan (Tooting) (Lab)
David T. C. Davies (Monmouth) (Con)
The Minister for Employment (Alok Sharma)
The unemployment rate is at its lowest since the 1970s. We have record employment with more people in work than ever before, and wages have been rising faster than inflation for 13 months in a row.
David T. C. Davies
The latest figures do indeed show that Britain’s economy is booming, unlike those of the rest of the European Union. Do the Minister and his colleagues on the ministerial team agree that the prospect of Brexit, with or without a deal, is driving forward the British economy and confidence in it?
Alok Sharma
My hon. Friend is of course right to point out that, despite any uncertainty around Brexit, the British economy is in good shape. We do have one of the highest employment rates in the EU, Britain is the No. 1 destination in Europe for foreign direct investment, and the IMF projects that our economy will grow faster than Germany’s this year. Unlike the Opposition, Conservative Members believe in supporting businesses and employers.
Mark Menzies (Fylde) (Con)
Christine Jardine (Edinburgh West) (LD)
A constituent of mine is being passed from pillar to post by the DWP and the Scottish student loans group, both of which say she is entitled to support. She wants to start studying full time in September but, as a single parent, cannot do so without appropriate financial support. Will the Secretary of State or one of her Ministers meet me to see whether we can find a way out of this Catch-22 situation and ensure that my constituent and other single mothers like her, who want to improve their families’ opportunities, have the support to do so?
Rachael Maskell (York Central) (Lab/Co-op)
According to the Joseph Rowntree Foundation, 1.9 million pensioners now live in poverty, which is a complete disgrace. Given that 46,000 pensioners died prematurely last year, why has the winter fuel allowance not been increased for more than a decade?
Thangam Debbonaire (Bristol West) (Lab)
My caseworkers recently updated me on the thousands and thousands of pounds of public money that they have helped to recover for constituents who are entitled to it, often after many months of delays. I am not satisfied with that; I am angry that this Government Department is keeping so many of my constituents and, I presume, others across the country in poverty for so long when they are owed this money. What is the Government doing about reviewing DWP’s shameful record on paying people money to which they are entitled?
Alok Sharma
I would just point out to the hon. Lady that, under the legacy benefits system, there are £2.4 billion of unclaimed benefits. That is changing and being fixed under universal credit. If she has specific cases, she will know that this ministerial team is always happy to talk to Members of Parliament to try to resolve issues. If she wants to talk about specific cases, I would be happy to do so after this session.
Janet Daby (Lewisham East) (Lab)
Visits to one of the food banks in my constituency have increased by 20% since the roll-out of universal credit. Trussell Trust referrals have risen by 52% since the roll-out of universal credit. Everything suggests that universal credit is not lifting people out of poverty, but pushing them further into it. Was that the Government’s intention with the roll-out of universal credit, because that is what is happening?
Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)
The Verify identification function for those claiming universal credit online does not work properly. When the Secretary of State is looking at that, will she also look at the problem that requires couples making a joint claim to verify their identity in person at the same time, which causes those sharing childcare and working shift patterns difficulty in claiming?
Alok Sharma
I am happy to discuss any issues around Verify with the hon. Gentleman, but, as he will know, there is more than one way for someone to verify their identity. Of course, they can use gov.uk Verify, but they can also use documentary evidence or a biographical test. Those are known, recognised tests, and they are all available in the system.
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
The Secretary of State just said that universal credit is better than the legacy system, yet evidence published this weekend shows that twice as many children will be pushed into poverty by universal credit, the two-child limit and the benefit cap. On top of that, universal credit is actually increasing infant mortality—the first time we have seen an increase in 100—
Melanie Onn (Great Grimsby) (Lab)
Centrepoint’s evidence to the DWP Committee showed that 96% of the young people it surveyed were not offered a traineeship or work placement if they were still on the youth obligation for six months. Does the Minister think it is worth having a closer look at what more could be done to improve the youth obligation?
Alok Sharma
I share the hon. Lady’s desire to make sure the youth obligation support programme works properly. We are looking at extracting information from the system, and I hope shortly to come and report on the findings from that.
Universal Credit Helpline
Lord Sharma Excerpts(5 years, 6 months ago)
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The Minister for Employment (Alok Sharma)
It is a pleasure to serve under your chairmanship, Mr Evans. As we saw at the start, you are characteristically generous when dealing with colleagues. I thank the hon. Member for Midlothian (Danielle Rowley) for raising this issue—I know she cares deeply about it. She has written to me, and I apologise that my response has not arrived yet. I signed that letter yesterday, so I hope she will receive it in the next 24 hours. She has also raised this issue in parliamentary questions and, in February, at DWP oral questions, when I responded to her. I will come on to that.
I will begin by setting out where we are in terms of universal credit. Universal credit rolled out to all jobcentres across the country last year. We now have 1.8 million people claiming this benefit. When we talk about support, it is worth pointing out that, over the last two Budgets, we have announced changes to universal credit worth an additional £6 billion—in particular to ensure that vulnerable claimants are supported in the transition to universal credit. That includes changes to work allowances worth an extra £1.7 billion a year. Those changes, which increase work allowances by £1,000, were brought in from April this year, providing a boost to the incomes of the lowest paid. That will result in 2.4 million families keeping an extra £630 per year of what they earn. I hope that underlines our learning and adapting approach.
We have always been clear that universal credit is primarily a digital service, which allows claimants to manage their own data and account online at a time that is convenient to them. Via their accounts, claimants can check their universal credit benefit payments, notify us of changes, and record notes via an online journal facility. Some activities still require a call from a claimant, as they are not yet automated, such as booking an appointment. The telephony channel remains an important part of our service offer.
The universal credit telephone helplines have been freephone numbers since the end of 2017. Claimants who call the universal credit helpline are connected directly to the person or team dealing with their case. We also have dedicated national service hubs, which provide telephony for third parties, such as landlords, welfare rights organisations and those citizens without a claim.
For those unable to access or use digital services—this is an important point—assistance to make and maintain their claim is available via the freephone universal credit helpline. The universal credit service centre will establish the best means of support for the claimant. We also provide comprehensive support for claimants who do not have digital skills or who do not have access to a computer. Support is provided in person in jobcentres and through the computers that are available for claimants to use, as well as through home visits for those unable to attend a jobcentre.
From April this year, we introduced a help to claim service delivered by Citizens Advice. This provides additional support for any claimant from point of entry to the first award of universal credit, and is available by phone, webchat and in person at local Citizens Advice outlets and jobcentres.
The hon. Lady asked about training. The DWP staff who service the universal credit helplines have a three-week facilitated learning period. That structured learning provides the skills and knowledge required to support them to answer claimants’ queries. For new universal credit helpline call handlers, the learning journey is broadly made up of soft skills such as customer service learning, which covers how to gather information through active listening; equality and diversity training; and bespoke IT system-based technical learning, all of which is supported by consolidation activity.
Colleagues receive ongoing learning in their roles alongside experienced case managers and have access to universal credit guidance, which is refreshed at regular intervals. We are committed to continuous improvement, and as part of that we regularly review call plans, service levels and intelligence to improve our offer and understand why claimants are calling.
Patricia Gibson
The Minister may know that a jobcentre employee described universal credit as like being in a leaky boat: a leak springs up, and someone sticks their finger in the hole, but then a new hole appears, and they end up sprawled across the boat trying to block all the leaks. The holes are not the problem though; it is the boat. The Minister will know that many people and many groups in civil society believe that universal credit should be paused. Will he think about pausing it so that all the holes in the boat can be fixed?
Alok Sharma
I gently say to the hon. Lady that I visit jobcentres, as do my ministerial colleagues, and that is not the feedback that we receive from people on the frontline. In terms of pausing universal credit, we have been rolling it out across the country since December, and we have been clear that it will be the main welfare provision for the country in future.
To return to the universal credit helpline, when someone calls it they are presented with a series of options to select from. They are then put through to the agent best placed to answer their inquiry. All further triage is done through conversations to establish the claimant’s needs. There are 26 service centres across the country that aim to support people with their universal credit claim.
We have between 5,000 and 7,500 staff answering calls in our service centres to support our customers. An important point in terms of the statistics—I would not want any hon. Member to be in any doubt that we are making a big effort when it comes to supporting people over the phone—is that, in March, we answered about 1.3 million calls to the universal credit full service helpline.
The hon. Member for Midlothian talked about waiting times. In March, the average waiting time for a call to be answered was two minutes and 43 seconds. In February, the average duration of a call to the UC helpline was just over six minutes. I hope she will appreciate that it is not about rushing people off the lines but about providing support to them.
As I said earlier, the hon. Lady raised this issue in parliamentary questions on 11 February. I reiterate what I said to her then, which is that she has already been sent a copy of the universal credit digital channel document. She talked about FOI requests, but she already has that document, which is what DWP staff use as a guide when taking calls from claimants. She will be aware that the document says clearly that staff must use a common-sense and sensitive approach in resolving queries ahead of any digital discussion. Again, I want to be absolutely clear that there is no intention to deflect and there are no targets for getting claimants to use a digital channel.
The hon. Lady made several other points, including about supporting people who struggle with English or Welsh. We have an interpreting service available for those with language barriers. The hon. Member for Strangford (Jim Shannon) raised the issue of people being held on the phone and not being given an answer. We regularly review service levels on the UC helpline to improve our offer. If we cannot answer a question, we will call the claimant back.
Ruth George
The Minister says that the universal credit helpline is there and that staff are not necessarily trying to direct people on to digital platforms, but the complaints procedure for universal credit cannot be undertaken by phone—people are simply directed to make a complaint online. Those who struggle with online access are unable to do the very basic thing of making a complaint when they have a problem with the online service or the helpline. How does that square with his commitment that people are not being directed online? Will he make sure that people can make a complaint over the phone?
Alok Sharma
When a conversation takes place between a DWP staff member and a complainant, of course there is the opportunity for the staff member to answer the question. There are standard procedures when people want to make complaints. The hon. Lady takes a deep interest in such matters, and she knows that if any of her constituents ever have such an issue, she can write to me. I understand that, and it is incumbent on us, as Ministers, to make sure that we provide a response. In terms of the statistics that I have put out there, however, I hope she will appreciate that DWP staff make a huge effort to answer phone calls and deal with them sensitively. She also made a point about journal entries. The journal is available 24/7 for claimants to communicate with their work coach. That was not available under the legacy system.
DWP colleagues are fully committed to supporting claimants through a range of channels, and we are clearly making progress in the support we provide. In our latest claimant survey, which was published in January, four out of five people were satisfied with the support they had received when claiming universal credit, which is broadly consistent with satisfaction levels in legacy benefits. Satisfaction levels are high, and the vast majority of claimants who use the telephony system found staff to be helpful and polite. Of course, I acknowledge that we want and need to continue to make progress and improve further so that everyone claiming universal credit gets the support they rightly deserve.
In conclusion, if hon. Members raise individual cases with me, I hope, again, that they will find that the Department and I are open and that we acknowledge when we have made mistakes.
Question put and agreed to.
Devolution of Welfare
Lord Sharma Excerpts(5 years, 6 months ago)
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The Minister for Employment (Alok Sharma)
It is a pleasure to serve under your chairmanship, Mr Betts. I congratulate my hon. Friend the Member for Berwickshire, Roxburgh and Selkirk (John Lamont) on securing this important and timely debate. He spoke with great passion. He cares deeply about his constituents and he wants an effective welfare system in Scotland that leaves no one behind, which is something that we all want to see. We have heard passionate speeches. If I have time I will refer to some of the points raised. I thank my hon. Friends the Members for Ayr, Carrick and Cumnock (Bill Grant) and for Stirling (Stephen Kerr) for their contributions today.
To reiterate the context of where we are—colleagues have set this out—the Scotland Act 2016 provided a significant shift in the way that welfare would be delivered. As has been said, we are transferring responsibility for an estimated £2.8 billion of welfare powers to the Scottish Parliament, which currently support around 1.4 million people in Scotland. That will of course have a major impact on people living in Scotland as we move into a shared welfare space for the first time.
We should not underestimate the significance of the task. We recognise that responsibility for many vulnerable claimants will be transferred to the Scottish Government, and it is vital that both Governments get it right. The DWP has been instrumental in the Scottish Government’s delivery to date of certain benefits, and we will continue to support them to achieve their plans. We must ensure that the transfer of the welfare powers proceeds in a safe and secure manner with the claimant at the heart of what we do. That is why we have established strong Government structures, including a joint ministerial working group on welfare and joint working practices to oversee the transfer of powers and to ensure that we work together to identify and mitigate any issues that arise.
The hon. Member for Airdrie and Shotts (Neil Gray) raised points about the ministerial working group. As he knows, there was a recent meeting that was both cordial and constructive. In terms of the support from DWP, we have approximately 80 DWP staff working exclusively on the Scottish devolution programme. Between 2015 and October 2018, DWP managed more than 2,297 requests for information from the Scottish Government. I gently point out to him that I do not think there is any intransigence on our part. He knows that I am happy to take up cases, and we are meeting later today to discuss a constituency case that he has.
Following Royal Assent to the Scotland Act 2016, the DWP has worked hard to support the Scottish Government in the transfer of powers. We have given them access to DWP payment and customer information systems to support their delivery, as well as providing training and knowledge transfer as they build up their capability. We have provided support to enable them to deliver their new employment support programme, Fair Start Scotland, with DWP work coaches making the majority of referrals.
As we approach the first anniversary of the programme, the Scottish Minister for Business, Fair Work and Skills has recently written to me to praise our staff in Jobcentre Plus for the work that they have done to date. It is important that politicians talk not only about the challenges. Of course we should challenge each other to get things right, but we should also praise and acknowledge good joint working when it takes place.
Since 2017, we have also delivered Universal Credit Scottish Choices, giving people in Scotland a choice over the frequency of their payment and whether their housing element is paid directly to their landlord. We supported the Scottish Government to deliver their first new benefit, the best start grant, and we are on track to support delivery of their replacement for funeral expenses payments later this year. Critically, since September 2018, we have been paying carer’s allowance on behalf of the Scottish Government, enabling them to pay a six-monthly supplementary payment to carers in Scotland.
Neil Gray
The Minister is setting out well some of the areas where there has been good working between the Scottish and UK Governments, particularly at ministerial level, as I said in my speech. I should put on the record that there have previously been problems at ministerial level between the two Governments, but in the most recent exchange of letters the Secretary of State appears to make a more conciliatory and helpful suggestion for work going forward. So I hope that the two Governments will be able to work together constructively, whereas previously that has not happened.
Alok Sharma
I thank the hon. Gentleman for his intervention. Over the past few years we have been working constructively, and we want that to continue. My hon. Friends definitely want that. They come in to see me and the Secretary of State regularly to raise issues, and it is right that we continue in that spirit.
Many lessons have been learned in the first wave of devolution, such as in the transfer of accountability of carer’s allowance, where the DWP continues to pay carer’s allowance on behalf of the Scottish Government but under the same rules and rates as for people in England and Wales. It is vital that we consider these lessons as we move forward with the next wave of delivery.
Alok Sharma
I will not, if my hon. Friend does not mind, because time is short.
The hon. Member for Weaver Vale (Mike Amesbury) criticised the Government’s delivery of universal credit. I believe it is working, and we have put in an extra £6 billion to support the most vulnerable in the past two Budgets, which unfortunately he has not been able to support in votes. I point him to the summary of a Public Accounts Committee report from 2005 on tax credits, which says:
“In April 2004, the Committee reported on the severe problems following the introduction of the New Tax Credits, which meant that several hundred thousand claimants were not paid on time.”
I gently point out that we all want to get the system right, and I am not sure that constantly criticising is the best way forward.
As colleagues have noted, the Scottish Cabinet Secretary for Social Security and Older People recently announced the Scottish Government’s delivery timetable for their replacements to the current disability, carer’s and industrial injuries benefits, as well as replacements for winter fuel and cold weather payments. The timetable proposes that the Scottish Government will progressively take over responsibility for delivery from April next year, with the final cases being transferred by 2024. That reflects the pace that the Scottish Government believe that they can commit to and is achievable.
On timing, it will be for the Scottish Government to keep it under review. The Scottish Government’s plans involve considerable work for DWP in both supporting them to achieve their ambition and, as necessary, continuing to deliver benefits on their behalf. We share the Scottish Government’s commitment to a safe and secure transfer, and our priority is as seamless a transfer as possible from the person receiving the benefit’s point of view.
My hon. Friend the Member for Berwickshire, Roxburgh and Selkirk raised a number of issues in his remarks. He spoke of his concerns about the Scottish Government’s delivery plans, the continuity of provision for his constituents and the cost to the public purse from the DWP continuing to deliver devolved benefits on behalf of the Scottish Government. We will, of course, continue to work with the Scottish Government, and costs arising from the DWP’s delivery of services on behalf of the Scottish Government will be reimbursed by the Scottish Government.
Many other points were raised, and if colleagues want to write to me I will be happy to respond to them. A number of colleagues mentioned WASPI. It is for the Scottish Government to determine how to use their powers to make further payments, including to fix issues for those individuals.
The devolution of welfare powers represents a significant constitutional change that will require substantial work by both Governments to ensure that the people of Scotland are well served. We are committed to working constructively with the Scottish Government. I look forward to the future and seeing the Scottish Government successfully delivering their new social security benefits for the people of Scotland.
Mr Clive Betts (in the Chair)
I thank the Minister and other colleagues for keeping within the time limit. John Lamont has a minute to wind up.