Data Protection and Digital Information Bill

Debate between Baroness Buscombe and Baroness Lister of Burtersett

Committee stage
Monday 22nd April 2024 Grand Committee

[Baroness Buscombe (Con)]

My Lords, I speak as someone who was a Minister at the Department for Work and Pensions back in 2017. I well remember, when I was in charge of fraud and benefit, when we had a new addition to my team. I felt very strongly about this area because, when I first started as a Minister there, I was incredibly shocked by the level of fraud. Someone talked about having a fraud strategy, but this area is very complex. In the years since then, we have learned that the greatest incidence of fraud is people misstating their assets. Everybody in the Room will know that it is important that you must have only a certain amount of assets to claim benefits, whatever your situation, unless they are not means-tested or are disability benefits.

In 2017, the Treasury ran a controlled pilot. I do not know the details of how it was run, but I saw the results and they were extraordinary. The pilot was at one bank, using the powers they already had, for those who may be avoiding tax—which of course is not a crime—to see whether there was an issue with regard to benefit claimants misstating the extent of their assets when claiming. The extraordinary thing was that they found that between 25,000 and 30,000 at that one bank alone were misstating their assets.

So we know that there is a real problem here, and we know that fraud itself has gone up and up. We are unable to calculate all fraud in the system because, under the legacy system, we found it difficult to check the degree of housing benefit and so on. Maybe it is easier now under universal credit—I hope my noble friend the Minister will be able to tell us that it is—to check people in receipt of benefits who claim to be living alone when they are not.

This is a very nuanced area, but all I can say is that we knew we had a major problem with people misstating their assets. We had to deal with that, but we could not do so without working out how to do so with care, bearing in mind all the issues that noble Lords have raised today about doing it in a proportionate way, in a way that does not conflict with human rights in a way that does not become mass surveillance for everyone. We should bear in mind that since 2011 taxpayers, the people actually funding the benefits system, including some benefit claimants themselves, have had their bank accounts checked to make sure that they are not avoiding tax, which is not a crime—I am talking not about evasion but about avoiding—while fraud in the benefits system is a crime.

We need to be quite careful. Some of the things that have been said today conflating this issue with Horizon are wrong. I have been reading the so-called facts that some of these lobbyists have written about how the clause is disproportionate and unfair and goes too far in terms of people’s privacy. The Department for Work and Pensions works tirelessly to try to do the right thing in the right way. This has not been thrown into the Bill at the last minute as if we have just dreamed it up. That discovery was seven years ago. The noble Lord, Lord Sikka, may laugh, but I do not see the relevance of an awful lot of what he was saying—about the noble Baroness, Lady Mone, and so on—to what we are discussing now.

The reality is that benefit fraud is a serious offence, depriving those who need it most of vital support. A lot of people have come up with cases of very difficult situations that people have to live through. Those are the people we want to support but, frankly, the bill at DWP for this one year is £290 billion. When I was there in 2019, it was £190 billion. We cannot afford to put up with benefit fraud, so we have developed this carefully constructed measure, which needs to be thought through with care. I am sure my noble friend will be able to answer a lot of the questions that have quite rightly been asked today in Committee.

[Baroness Lister of Burtersett (Lab)]

The noble Baroness mentioned lobby groups that say the clause is disproportionate. The Information Commissioner has questioned the proportionality of this measure. Does she consider the Information Commissioner a lobby group?

--- Later in debate ---

[Baroness Buscombe (Con)]

I thank my noble friend very much for all the explanation that he has given thus far. I just want to add a word that has not been mentioned: deterrent. One of the reasons why the Government have sought to introduce this in the Bill, I believe, is that it is hugely important that we are much more thoughtful about what will stop people doing the wrong thing. It has become an old-fashioned word but, from a legal, practical and moral standpoint, does my noble friend agree that this is a practical deterrent to make sure that people do the right thing?

[Baroness Lister of Burtersett (Lab)]

Is it not one of the dangers that this is a deterrent to people claiming these benefits?

Universal Credit: Managed Migration

Debate between Baroness Buscombe and Baroness Lister of Burtersett

Tuesday 23rd July 2019 Lords Chamber

[Baroness Buscombe]

I thank my noble friend for his question. As he will know, Harrogate has a strong mix of benefit claimants that will reflect case loads across the country as we start to scale. We looked at this issue carefully and took some time to choose somewhere that would have a strong mix of people who can work with ease with us and others who have differing complex needs. We wanted to be sure that we could reflect case loads across the country as we start to scale. There are many cases with complex needs which we will be seeking to learn from. Harrogate also has a case load with a mixture of urban and rural claimants, which makes a difference in terms of people’s approach. This will further aid our learning and is supported by a local service centre under the same management as the jobcentre. So I hope my noble friend will stay in touch with developments in Harrogate. We are very keen to start work tomorrow if all goes well.

[Baroness Lister of Burtersett (Lab)]

My Lords, I think that my noble friend asked for Parliament to be able to debate the report on the pilot before the regulations are laid, because it is very disappointing that, although the Secretary of State said that the Government continued to listen to Members of this House to optimise the system, they do not seem terribly interested in what we might have had to say about the pilot. I think that we could have come up with some constructive thoughts on that pilot, so that is disappointing.

I welcome the fact no one will lose their legacy benefits if they do not move on to universal credit during the pilot and what the Secretary of State called the “who knows you” approach, but how far will it be possible to learn lessons about the potential dangers of the widely criticised hard stop that my noble friend referred to once managed migration is fully rolled out? Because then, of course, that will no longer apply; people will lose their legacy benefits. And how easy will it be to scale up this approach nationally when the local support networks that the Government are very much relying on here are so variable and, in some places, pretty thin and probably getting thinner with local authority cuts? Also, the staff to claimant ratio is likely to be rather worse than it is for the pilot. So, just how much can we learn from this pilot in terms of what the fully scaled managed migration will look like?

[Baroness Buscombe]

I will respond to the noble Baroness by saying that I absolutely appreciate and very much respect the work that she does in relation to supporting just the sort of people we want to support through this process. I am quite surprised in some ways that the noble Baroness is not more involved with the stakeholders who we are constantly now engaging with—but I am sure that she is aware of those who are working with us in number to guide us and test us to make sure that we do not pursue a route that looks as if it is not going to work. We have to do this in a way that takes account of all the differing complex needs that people have, which is not going to be easy. People sometimes fluctuate over time in terms of those needs, so we have to be very, very flexible, and we think that that is the best way of working on this. Again, I go back to the advice from the Lords committee that suggested that we have a pilot just to make sure that we do our utmost to ensure that nobody falls through the cracks.

The noble Baroness referenced the hard stop. Once issued with a migration notice, claimants will have at least three months to claim universal credit and we are piloting this approach precisely to learn how we can contact and support people to move to universal credit without ending their legacy entitlement. We are not intending to move people to UC by stopping their benefits in the pilot. We will be testing how to encourage and support people moving on to universal credit without needing to stop benefits. It is not a question of hard stop and just giving people notice and then saying, “Sorry, cheerio, you haven’t responded”. We will do what it takes. There would have to be highly exceptional circumstances, I suggest, for there to be a situation where we had failed through every avenue to be in touch with someone and so would end their benefit. I have to say that it has not been and is not our intention to allow anyone to have their benefits stopped. The phrase “hard stop” evolved from the Opposition Benches, I think, and it is something that we have worked hard to deflect, because we do not want people to fall through the cracks or to stop receiving benefits because we have failed in some way to ensure, by visiting their homes, making contact with them, working with them and encouraging third-party trusted support to work with them and us, that we do the right thing and look after these people who need our ongoing support.

Poverty and Human Rights: UN Report

Debate between Baroness Buscombe and Baroness Lister of Burtersett

Tuesday 25th June 2019 Lords Chamber

[Baroness Lister of Burtersett]

To ask Her Majesty’s Government what steps they are taking to address the concerns raised by the report of the United Nation’s special rapporteur on extreme poverty and human rights on his visit to the United Kingdom, published on 22 May.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Buscombe) (Con)]

My Lords, nothing has changed since I answered exactly the same Question on this issue last week, when it was asked by the noble Baroness, Lady Janke. We have responded fully to the special rapporteur’s recommendations and will continue to reform the welfare system so that it encourages work while supporting those who need help—an approach based on clear evidence that work offers families the best opportunity to get out of poverty.

[Baroness Lister of Burtersett (Lab)]

My Lords, the Government have previously dismissed the report as “nonsense”, “barely believable” and “inaccurate”, and have effectively rejected virtually all its recommendations. Yet, as was pointed out in this House last week, the DWP’s lead poverty official has acknowledged that it “made … good points” and was “factually correct”. One of those facts was the highly regressive impact of tax and benefit changes since 2010, which,

“have taken the highest toll on those least able to bear it”.

Will the Government therefore look again at the recommendation that requests that the NAO assess the cumulative social impact of those policies, especially on those in vulnerable circumstances, which independent experts have shown can be done?

[Baroness Buscombe]

My Lords, it is right that any Government are held to account for the effectiveness of their approach to tackling poverty, which was always one of our key priorities. While we take every report of this nature incredibly seriously, and recognise that there is more to do—as we always do—we remain disappointed by the overtly political tone of the report and strongly refute the suggestion that we have taken a deliberately punitive approach to welfare reforms. This year we will be spending £220 billion on welfare.

Children Living in Poverty

Debate between Baroness Buscombe and Baroness Lister of Burtersett

Monday 17th June 2019 Lords Chamber

[Baroness Lister of Burtersett (Lab)]

On behalf of my noble friend Lady Primarolo, and with her permission, I beg leave to ask the Question standing in her name on the Order Paper.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Buscombe) (Con)]

My Lords, there are 1.7 million children in families where at least one adult is in work in absolute poverty, before housing costs. However, the evidence shows that nearly half of these families are in part-time work or are self-employed. 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. This shows that work is the best route out of poverty.

[Baroness Lister of Burtersett]

My Lords, I beg to differ that these figures show that work is the best route out of poverty, which is a message that the Government repeatedly tell us. How do they account for the fact that seven in 10 children in poverty have a working parent, up from just over half at the point they first took power? In particular, what assessment have they made of the impact on current and future levels of child poverty of their cuts to in-work benefits and tax credits?

[Baroness Buscombe]

My Lords, the statistics expressed by the noble Baroness do not reflect the £1.7 billion a year cash boost to our welfare system announced in the Budget, which will enable 2.4 million households to keep more of what they earn. We have taken strong action to support working families. The latest rise in the national living wage will increase a full-time worker’s annual pay by over £2,750 since 2016. No one wants to see poverty increase. That is why we are doing more to help parents into work and to stay in work through multiple avenues of support from across government.

Child Poverty

Debate between Baroness Buscombe and Baroness Lister of Burtersett

Tuesday 21st May 2019 Lords Chamber

[Baroness Buscombe]

My Lords, we have taken strong action to support working families. We now have the national living wage and so on, but I agree entirely with the noble Lord that it is incredibly important to look closely at low pay and issues around debt. The Government are doing this, and indeed it is something that is close to my heart. Sometimes debt goes to the heart of why people are in poverty. We need to get much closer to this issue and in the coming months we will be introducing a breathing space to help people out of debt. We are also keen to ensure that children learn how to cope with money because that, as well as a low-wage economy, is often at the core of where things go wrong.

[Baroness Lister of Burtersett (Lab)]

My Lords, evidence from teachers, civil society organisations—including, just yesterday, Human Rights Watch—and children themselves on the impact of poverty, aggravated by social security cuts, on children’s learning, health and well-being is shameful and heartbreaking. This impact is not captured by the official poverty statistics, so what steps will the Government take to measure the impact of their policies on the depth of child poverty in and out of work? This and other evidence suggests that their policies are pushing children further and further below the poverty line.

[Baroness Buscombe]

My Lords, I cannot agree with the noble Baroness that our policies are doing that; in fact, they are doing precisely the opposite. We have increased in an enormous number of ways the support—not just financial but practical—we give to children in low-income families. Indeed, the previous Question illustrates that. On how we measure poverty, the noble Baroness is right: we should debate, and have debated, looking at how we measure poverty. That is why on 17 May the Minister for Family Support, Housing and Child Maintenance announced that new experimental statistics to measure poverty will be developed, working with the Social Metrics Commission and published by DWP in 2020. We are looking to rethink the measures of poverty.

Severe Disability Premium: Transfer to Universal Credit

Debate between Baroness Buscombe and Baroness Lister of Burtersett

Tuesday 7th May 2019 Lords Chamber

[Baroness Buscombe]

My Lords, I make it clear that current severe disability premium claimants will receive transitional protection as part of the managed migration process. We now have transitional payments in place for severe disability premium claimants who have moved on to universal credit. As the noble Baroness well knows, we are now spending over £50 billion a year on benefits to support disabled people and those with health conditions, which is over £4 billion more than in 2010. We continue to evaluate the impact of our policies on this system. As the lead Minister for research at the Department for Work and Pensions, I am very clear that we make it our business to evaluate all the policies that we put in place.

[Baroness Lister of Burtersett (Lab)]

My Lords, the Minister said that transitional protection will be available for people moved on to universal credit from other benefits, provided their circumstances stay the same. However, surely natural migration occurs only where circumstances change—sometimes very trivially. As a result, many people are a lot worse off, because they have been transferred on to universal credit, despite the Government’s original claim that nobody would be worse off under universal credit. Will the Government look again at natural migration and pause it to see what can be done to provide transitional protection for this group, who are just being forgotten about?

[Baroness Buscombe]

As the noble Baroness knows, the focus of this Urgent Question is the court case and severe disability payments. We put that block—if I can call it that—in place on 16 January to stop those with a severe disability migrating, and to prevent any more people who are on severe disability premium naturally migrating to universal credit, because we recognise that there is an issue here.

However, to deal with the stock of SDP claimants who have already moved to UC following a change of circumstances, it has been agreed that claimants will be eligible for a transitional SDP payment if they meet the following criteria: that they were eligible for SDP before they claimed UC; that their UC award has not subsequently terminated; that they have not ceased to be entitled to one of the qualifying benefits for the SDP—the middle or higher-rate care component of DLA, the PIP daily living component, the armed forces independence payment or AA; and that no one has become a carer for them. This is focused on that bespoke cohort of individuals the judgment relates to: those who live alone, without a carer.

[Baroness Lister of Burtersett]

Perhaps I might come back, because the Statement talks about people being moved on to universal credit generally. The terrible position of those on SDP is the worst tip of an iceberg, but there are a lot of people underneath it who are losing out because they are being naturally migrated to universal credit—often because of the most trivial changes in circumstances, such as moving house.

[Baroness Buscombe]

My Lords, I am sticking to the Urgent Question—which is about the severe disability premium. However, the reality is that we are looking at that judgment and considering with care the way in which we support those who are transferring naturally to universal credit. It is important that we have the legislation in place as soon as possible, so that in future everybody is manage-migrated, as it were, rather than naturally migrating, which, as the noble Baroness has said, some are at the moment.

Food Banks

Debate between Baroness Buscombe and Baroness Lister of Burtersett

Wednesday 1st May 2019 Lords Chamber

[Baroness Buscombe]

I can reassure my noble friend that one of the reasons we have been making so many iterative changes to universal credit is that we have been concerned about the delay in people receiving income quickly and fairly. I re-emphasise that we are still waiting for some of the benefits of that to filter through to the work on the ground and benefit people who need the support. Our department is working very closely with the Trussell Trust—some of my officials are having a meeting with it today—because we believe it is very important that we work together.

[Baroness Lister of Burtersett (Lab)]

My Lords, according to the Trussell Trust, the main reason for people needing emergency food help is that benefits are consistently not covering the cost of living. A key reason for this is the four-year freeze. The Chief Secretary to the Treasury says, “Don’t worry, the Government are moving on from the freeze as it ends next year”. However, hungry claimants, in or out of work, cannot move on from the permanent effect of a significant real cut in their benefit. Will the Government therefore now reverse and make good the freeze, as a matter of urgency?

[Baroness Buscombe]

My Lords, the Welfare Reform and Work Act 2016 provided for a four-year freeze, and this was supported by Members in both Houses. This freeze will lapse after 2019-20. The freeze was implemented at a time of great public debate about the fairness of benefits outstripping earnings growth. However, we are doing much more than that. Switching people on to universal credit is taking time because it is a huge change, but it is empowering people to take responsibility for their own lives. It is changing from the dreadful legacy system, which left people in the shadowlands of dependency without any responsibility or a prospective future that could actually make a difference to their lives.

Universal Credit and Child Tax Credit: Two-child Limit

Debate between Baroness Buscombe and Baroness Lister of Burtersett

Wednesday 24th April 2019 Lords Chamber

[Baroness Buscombe]

My Lords, to be clear, on 28 June last year we published the first annual statistics related to the policy and have committed to do so annually. The Government have a broad range of policies which affect children and families across the tax and benefits system and public services. What makes a difference to child poverty is a strong economy, and I am pleased to inform the House that employment is at a record high, at 76.1%, while unemployment, at 3.9%, has not been lower since the 1970s.

[Baroness Lister of Burtersett (Lab)]

My Lords, the Government’s own statistics show that families with three or more children are at much greater risk of persistent poverty. Given that it is clear from Written Answers to the right reverend Prelate that the Government have done nothing to monitor the impact of this policy on children’s well-being, how can the Government be sure that it is in the best interests of children, in line with the UN Convention on the Rights of the Child, which the Government claim guides their policies?

[Baroness Buscombe]

My Lords, as I have made clear, the Government will be publishing statistics on this policy annually. Children growing up in workless families are almost twice as likely as children in working families to fail at all stages of their education, so our welfare reforms are designed to help people get into work, such that there are now 665,000 fewer children in workless households compared with 2010. Of course we want child poverty to fall, and that is part of our in-depth policy development, which is ongoing.

Social Security Benefits Up-rating Order 2019

Debate between Baroness Buscombe and Baroness Lister of Burtersett

Tuesday 5th March 2019 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Buscombe) (Con)]

My Lords, in my view the provisions in this order are compatible with the European Convention on Human Rights.

The Social Security Benefits Up-rating Order 2019 reflects the Government’s continuing commitment to: increase the basic and full rate of the new state pensions by the triple lock; increase the pension credit standard minimum guarantee in line with earnings; and increase carers’ benefits and benefits intended to meet additional disability needs in line with prices.

On the basic state pension, the Government’s continuing commitment to the triple lock means that, this year, the basic state pension will continue to be uprated by the highest of: earnings, prices, or 2.5%. The triple lock has been an invaluable tool in combating pensioner poverty. Maintaining it ensures that pensioners receive the financial security and certainty that they deserve.

This year, the increase in average earnings was the highest of the triple lock figures. As a result, the basic state pension will increase by 2.6%, rising from £125.95 to £129.20 a week for a single person. Consequently, from April this year, the basic state pension will be over £1,600 a year higher than in April 2010. We estimate that the basic state pension will be around 18.4% of average earnings—one of its highest levels relative to earnings for over two decades.

Three years ago, the Government introduced the new state pension, which provides a transparent and sustainable foundation for private saving and retirement planning for people reaching state pension age on or after 6 April 2016. We have also committed to triple lock the full rate of the new state pension. Therefore, from April 2019, the full rate of the new state pension will increase from £164.35 to £168.60 a week. This is approximately 24% of average earnings.

On the additional state pension, this year state earnings-related pension schemes and the other state second pensions, as well as protected payments in the new state pension, will rise by 2.4%, in line with prices. In addition, we are continuing to take steps to protect the poorest pensioner households, including through the pension credit standard minimum guarantee—the means-tested threshold below which pensioner income should not fall. This will rise by 2.6%, in line with average earnings. From April 2019, the single person threshold will rise from £164.35 to £167.25 a week—more than £1,800 a year higher than it was in 2010. Pensioner poverty continues to stand at one of the lowest rates since comparable records began. These measures will help us keep it that way.

In the 2018 Autumn Budget Statement, the Chancellor announced additional assistance for those on universal credit. As such, universal credit work allowances will rise by £1,000 once they have been increased by prices. This measure raises the amount someone can earn before their universal credit payment is reduced and directs additional support to some of the most vulnerable, low-paid, working families.

Finally, I turn to disability benefits. The Government continue to make sure that carers and people who face additional costs as a result of their disability will get the additional support they need. So, disability living allowance, attendance allowance, carer’s allowance, incapacity benefit and the personal independence payment will all rise by 2.4%, in line with the increase in prices. In addition, the carer and disability-related premia paid with pension credit and working-age benefits, the employment and support allowance support group component and the limited capability for work and work-related activity element of universal credit will also increase by 2.4%. These increases will continue to ensure that our welfare system provides the most support to the people who most need it.

In conclusion, in this order the Government propose to spend an extra £3.7 billion in 2019-20 to increase benefit and pension rates. With this spending, we are maintaining our commitment to protect the country’s pensioners through the triple lock and helping the poorest pensioner households who count on pension credit. We are also ensuring that people on universal credit can earn more before their payment is reduced and providing essential support to disabled people and carers. On this basis, I beg to move.

[Baroness Lister of Burtersett (Lab)]

My Lords, last week I received notification from the Pension Service of the increase in my pension from 8 April, under the triple lock. If I were a hard-pressed mother, claiming child benefit and most other working-age benefits, I would not have been so fortunate.

It has become something of a tradition in these uprating debates that some of us focus on the benefits that are not being uprated because of the benefits freeze. I am sure it will come as no surprise to the Minister that I do not plan to break the tradition. It is particularly pertinent this year, given the growing pressure from a number of quarters to end the freeze a year early. I welcome the real increase in the work allowance, after it was defrosted last year. I hope that the Government will start thinking about a second earner work allowance as a targeted way of addressing child poverty and encouraging more women into paid work.

As my noble friend Lady Sherlock spelled out in the earlier tax credit uprating debate, with her customary forensic skill, the freeze has had a much greater impact on working-age benefits than was originally anticipated at the time of the Welfare Reform and Work Act 2016. This is because of higher than expected inflation, due largely to the outcome of the referendum. According to the Resolution Foundation, the overall, cumulative, real cut in benefits will amount to around 6% by this coming benefit year. The total saving to the Treasury is around £4.4 billion. That is £4.4 billion being taken out of the purses and wallets of some of the poorest members of our society.

According to House of Commons Library calculations for Neil Gray MP, the higher than anticipated inflation rate means that around £1.2 billion is being cut this coming year over and above that originally budgeted for. The Joseph Rowntree Foundation has warned that maintaining the freeze for this final year will mean 10.7 million people living in poverty missing out on £220 to help cover the increased cost of living, and as many as 200,000 more being locked into poverty. The scenario will be even worse in the event of a no-deal Brexit.

--- Later in debate ---

[Baroness Lister of Burtersett]

On the point about encouraging women back into work, which I very much agree with, would the Minister be willing to take away my point about work allowance? At present, second earners have little incentive to get back into paid work. She made the point that we need all adults to be in paid work to have the full impact on poverty. I do not expect her to say that the Government are going to do that but perhaps she might consider my point when developing universal credit policy.

[Baroness Buscombe]

Yes, I noted somewhere in my papers and will say now that of course it is right that we look at every way to incentivise the second earner to go back into the workplace; that is very much our thinking at the moment. We are looking to find different ways to help and incentivise people. We also have to think about affordability. We touched on that when we debated these uprating measures a year ago; it has to be taken into account as well. The noble Baroness, Lady Janke, talked about how much was spent at the last Budget, but actually quite a large proportion of that—£4.5 billion—went towards the work that we are doing at the Department for Work and Pensions in supporting people, so we have to ensure—

--- Later in debate ---

[Baroness Buscombe]

Again, I thank my noble friend. It is a very important point. I often come across people who actually want to work on zero-hours contracts. They want to work in a flexible way so that they can work around their childcare arrangements or caring responsibilities. We live in a complex space. This is where I think the universal credit system is so brilliant, although we constantly seek to improve as we develop it. We inject every two weeks, on average, a new piece of software into that system to improve it, on the basis that everybody’s situation is different. We therefore have to have a system that can be as flexible as possible in responding to people’s way of working and their family arrangements, which are many and varied and can of course change literally overnight. People may then need to turn, maybe overnight, to our support and help.

That is why we are working hard to ensure that we can support the system in a way that provides for those who are in most need. We will not always agree about every benefit in it, but I hope noble Lords will accept that we at the Department for Work and Pensions are doing our best to develop many policies to encourage and empower people to go into the workplace to provide for their children, and therefore to have fuller lives and fulfil every opportunity for their potential.

[Baroness Lister of Burtersett]

I sense that the Minister is about to sit down—I apologise if she was not—but I made one point on which I asked her to respond. It would be a new policy but would not cost anything, other than the administrative costs of doing it. It would be to routinely publish the poverty depth statistics, which would help to answer for the future the question that my noble friend Lady Sherlock asked, which has not been answered. What attempts are the Government making, or have they made, to measure the impact on poverty of this freeze?

[Baroness Buscombe]

My Lords, the Welfare Reform and Work Act 2016 was supported by a number of impact assessments that considered the whole picture of the Government’s welfare reforms. Any estimate of the impact will fluctuate whenever the number of people claiming benefit, or assumptions about the economy, turn out differently from the forecasts at the time. Although CPI for this year is higher than anticipated, at the time of the impact assessment for 2017-18 CPI was lower than expected. Since the impact assessment for the Welfare Reform and Work Act, we have seen employment reach record levels. If people choose to move into work or to increase their hours, they may mitigate or never experience the notional loss. In total, freezing benefits and tax credits overall is expected to result in £3.5 billion of savings in 2019-20, but the 2015 impact assessment shows a saving from the benefit freeze this year of around £1.4 billion.

I reassure the noble Baroness, Lady Sherlock, that I will share with my colleagues the points that have been raised in this debate. We constantly review whether we have the right policies, what we can do to change them and what our constraints are given that we are just one of numerous departments. We account for 25% of the entire government budget. Therefore, it is always a tough challenge for us to influence change. I have huge respect for the previous and current Secretaries of State, who have been able to encourage the Chancellor of the Exchequer to make some changes.

A question was asked about those with a disabled child. All those qualifying for the disabled child addition also qualify for disability living allowance or personal independence payments, which are exempt from the freeze. Another question was asked about the two-child element. We believe that families on benefits should face the same financial choices when deciding to grow their family as those supporting themselves solely through work. A benefits structure adjusting automatically to family size is unsustainable. I think I have answered almost everything—

[Baroness Lister of Burtersett]

My noble friend asked a rather pertinent question: do the Government think that these benefits are too high?

[Baroness Buscombe]

My Lords, no; I can answer that very simply. We do not think that the benefits are too high, but we feel strongly that we have to focus them where the need is greatest.

I hope that noble Lords will agree that we have had a full debate, much of which has related to matters other than the uprating itself. The social security uprating order will provide an extra £3.7 billion of support for the most vulnerable in 2019-20. The triple lock on the state pension will provide an extra £3.6 billion for pensioners. The uprating of disability living allowance, personal independence payments and carer’s allowance are worth £0.7 billion in 2019-20 alone. The increase in universal credit work allowances by £1,000 will provide 2.4 million working families with an extra £630 a year from April 2019. This Government have a track record of increasing their generosity in welfare spending. Since 2016, they have invested more than £9.5 billion in universal credit. I thank all those who have taken part in this debate. I beg to move.

Social Metrics Commission

Debate between Baroness Buscombe and Baroness Lister of Burtersett

Tuesday 29th January 2019 Lords Chamber

[Baroness Lister of Burtersett]

To ask Her Majesty's Government what assessment they have made of the report A new measure of poverty for the UK, published by the Social Metrics Commission in September 2018.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Buscombe) (Con)]

The Government welcome the work that the Social Metrics Commission has done. Measuring poverty is complex, and this report offers further insight into the nature of that complexity. The Social Metrics Commission report acknowledges that further work needs to be done, particularly around data availability and quality. We want to carefully consider the detail that underpins the methodology that the Social Metrics Commission has employed when this has been made available to us.

[Baroness Lister of Burtersett (Lab)]

My Lords, I congratulate the commission, so ably led by the noble Baroness, Lady Stroud, on achieving such wide support for its innovative relative poverty measure. David Cameron pledged that the Conservative Party would recognise, measure and act on relative poverty, yet now Ministers repeatedly cite only the so-called absolute poverty statistics when challenged. What has changed to negate that pledge, other than the worrying increase in relative poverty since 2011-12, especially among children, and the Government’s regressive social security and other austerity policies that have taken their toll?

[Baroness Buscombe]

My Lords, the Government accept that the current suite of measures is not without limitations. However, the relative poverty line, for example, moves across with average income, which is useful when looking at whether groups are or are not keeping up with the middle of the income distribution over time, but it does not show whether the average income of those on the lowest incomes is improving in real terms. Therefore, if everyone’s income were to double tomorrow, the number of people in relative poverty would be unchanged. The absolute poverty line, on the other hand, moves with inflation, providing a better measure of how the income of those on low incomes compares with the cost of living.

Universal Credit

Debate between Baroness Buscombe and Baroness Lister of Burtersett

Tuesday 8th January 2019 Lords Chamber

[Baroness Buscombe]

I thank my noble friend for this question, because of course our focus is very much on all claimants. Each claimant has a different bespoke need. The reality is that they have a work coach and a caseworker supporting them in a bespoke way that never existed under the legacy system. In relation to those who are particularly vulnerable and have particular mental health issues or disability needs, we are committed to gathering better data to support those claimants and to prioritise this as part of the wider Work Programme for universal credit. Anything we do will be introduced incrementally and could cover a broad range of complex needs rather than focusing on one particular group.

We have been focusing very much on training staff and increasing the number of staff. For example, we have introduced a function to pin key profile notes so that they are instantly visible to all staff helping a claimant. After a small trial, this feature was rolled out in September last year. We are thinking all the time about how we can help people in a bespoke way. A number of Peers who joined me at the Department for Work and Pensions at the end of last year saw for themselves the work that we do and how we focus to the best of our ability on what will be 8 million people when the whole system is fully rolled out, each and every one of them having perhaps a slightly different issue but being part of the system that works for everyone.

[Baroness Lister of Burtersett (Lab)]

My Lords, perhaps I may go back to my noble friend’s question. We will be debating exactly the same regulations that were laid last year, with their sink-or-swim approach that has been widely condemned by the Social Security Advisory Committee, any number of parliamentary committees and all the voluntary organisations on the ground. The only thing that has changed is that the regulations that we were told had to be agreed by 12 December have disappeared.

[Baroness Buscombe]

My Lords, the noble Baroness is wrong to say that the regulations have been widely condemned. Why do 70 different stakeholders want to work with us if they condemn what we are trying to achieve? I feel very strongly about this. The noble Baroness herself came to the department to see the fantastic work done by our work coaches. She may laugh at what our employees do day in and day out, 24/7, to help benefit claimants in a far better way than ever happened under the legacy system where, frankly, people were left to—

Poverty in the United Kingdom

Debate between Baroness Buscombe and Baroness Lister of Burtersett

Monday 17th December 2018 Lords Chamber

[Baroness Lister of Burtersett]

To ask Her Majesty’s Government what assessment they have made of the statement by the United Nations Special Rapporteur on extreme poverty and human rights, published on 16 November, following his visit to the United Kingdom.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Buscombe) (Con)]

The Government will consider the special rapporteur’s interim findings carefully. Although they disagree with his conclusions, the Government note that the report welcomes the simplification of the benefits system through universal credit and the recent Budget announcements to help tackle in-work poverty. Compared with 2010, income equality has fallen, the number of children in workless households is at a record low and 1 million fewer people are in absolute poverty, including 300,000 children.

--- Later in debate ---

[Baroness Lister of Burtersett (Lab)]

The rapporteur held up a shaming mirror to poverty in our country, reinforced today by teachers’ warning of the increasingly devastating impact on their pupils. The Government’s response demonstrated their state of denial and indifference towards the impact of their policies that he criticised. Instead of constantly hiding behind cherry-picked statistics, as they have done today, why do they not listen and learn, go out and talk to people in poverty, as the rapporteur did, and end their social security and other policies that, in his words, are inflicting great and unnecessary misery?

[Baroness Buscombe]

My Lords, I am disappointed that the noble Baroness thinks that the Government are not listening. Only last week, she heard directly from front-line staff at the Department for Work and Pensions—I am grateful to her for coming to the department—about the vital work they do 24/7 to ensure that claimants receive the right support. In turn, I listened to the special rapporteur on Radio 4 say that people receive no funds for between five and 12 weeks when they enrol on to universal credit. That is just plain wrong and, frankly, undermines the credibility of this report.

Universal Credit

Debate between Baroness Buscombe and Baroness Lister of Burtersett

Monday 26th November 2018 Lords Chamber

[Baroness Buscombe]

The Government support White Ribbon Day—the International Day for the Elimination of Violence against Women—and will be making a number of announcements over the 16 days of action, which I am sure all noble Lords will welcome. The Government are committed to doing everything we can to end domestic abuse. It is important to stress that it is the responsibility of government across Whitehall to support victims of domestic abuse. The single payment of universal credit usually allows both people in the household to make the money management choices that are best for them in considering how their decisions about work affect their household income. The reality is that I and my honourable friend in another place, the Minister for Family Support, Housing and Child Maintenance, Justin Tomlinson, are working hard with stakeholders to see what improvements could be made.

[Baroness Lister of Burtersett (Lab)]

My Lords, the Minister said that split payments are available on request but, as my noble friend said, if somebody asks for a split payment, her abusive partner will know. How many of us would be willing to take the risk of further abuse? Can the Minister tell me why the Government think that they know better than survivors of domestic abuse and the organisations working with them, and continue to put the onus on the survivor and put her at greater risk?

[Baroness Buscombe]

My Lords, it is important to stress that claimants can request a split payment during a face-to-face meeting and a phone call could be made away from the perpetrator of domestic abuse or online, via the journal. Research carried out for the department suggests that only 2% of married couples and 7% of cohabiting couples keep their finances completely separate. Indeed, a number of legacy payments have always been paid as one payment.

Universal Credit

Debate between Baroness Buscombe and Baroness Lister of Burtersett

Monday 5th November 2018 Lords Chamber

[Baroness Buscombe]

Absolutely. We will make sure that these regulations will be part of the proper process.

[Baroness Lister of Burtersett (Lab)]

My Lords, I welcome the concessions in response to SSAC, and I think we owe SSAC and all the organisations that gave evidence to it a big debt. SSAC recommended that before the department starts the migration process it should undertake what it called a “rigorous and transparent assessment” including,

“how effectively Universal Credit … is currently operating”.

Given the Public Accounts Committee’s observation of,

“a culture of denial … in the face of any adverse evidence”,

how can we be confident that the DWP’s acceptance in principle of this recommendation will mean that, before managed migration, it really will tackle the design flaws that all the organisations on the ground are saying are preventing UC operating effectively? Following on from my noble friend, why will those who do not claim within one month of the new target date not get transitional protection, when Ministers constantly say that everyone will get transitional protection?

[Baroness Buscombe]

My Lords, let me make it clear that we are now in a very different place from when that PAC report was drafted. We are injecting an additional £4.5 billion into the system to support the migration on to universal credit. We are in a place where we are already spending £100 billion on benefits for people of working age; we have to think about sustainability and affordability.

When it comes to testing the system, we will adjust and amend our processes according to how claimants respond, which we will identify through ongoing user research with claimants, where we look to establish why claimants did not interact with the service and what they found difficult. We will use that to improve the processes. At the end of the day, though, we cannot leave the process entirely open-ended, where people for whatever reason do not choose to migrate. The important thing is that that is why we are having the whole preparation and learning process—to understand why there could be anyone who fails to go through the process or there is more than one month after the closure of when they should have applied to go on to universal credit.

We will be spending time and a lot of input into advertising campaigns; communications by text, phone and letter; and home visits. Those people will not be falling through the cracks without an extraordinary amount of effort on the part of our 83,000 employees at the DWP, who are not a department in any denial whatsoever. They want this to work. They are excited about it and work hard for it; they will help us to succeed, to the best of our ability.

Universal Credit

Debate between Baroness Buscombe and Baroness Lister of Burtersett

Tuesday 16th October 2018 Lords Chamber

[Baroness Buscombe]

I thank the noble Lord and say straightaway that there will be no delay to the publication. Indeed, because we have to see these regulations on the statute book by the end of this year, it is very important to ensure that they are laid shortly and that we can debate them in your Lordships’ House. We very much hope that, unlike the package of £1.5 billion in extra support for universal credit that was introduced in another place following the Budget last autumn, the managed migration regulations will not be rejected, as the package was last autumn.

It is important to remember that we introduced a package that made advance payments quicker and easier for people to access. They could have a 100% advance up front for their first month’s claim, with no interest to repay for 12 months. We scrapped the seven-day waiting period and introduced a two-week run-on for people receiving housing benefit, with a cash payment that was not repayable. We are helping more than 500,000 people by protecting severe disability premiums.

That package was rejected in another place. Let us hope that this managed migration package will be supported in another place and in your Lordships’ House, because we want to protect the severely disabled, those with health conditions and those who genuinely need our support. We, too, are surprised by the recent controversy, because we are trying to do the right thing to support the right people. Benefits will not be turned off. We will be very careful to ensure that there is a transfer. That is why we will introduce the system slowly and carefully. We are using six months of next year to try to get this right.

[Baroness Lister of Burtersett (Lab)]

My Lords, I echo what has been said about my noble friend Lady Hollis. She was an inspiration.

This morning, at a meeting of the APPG on universal credit, organisations working with claimants around the country were unanimous that so-called managed migration—as the noble Lord, Lord Kirkwood, made clear, it will not be managed on behalf of claimants—should not go ahead until UC’s design flaws are rectified, especially inflexible monthly assessment, which is creating huge problems. Will the Minister undertake to look at these problems as a matter of urgency? UC needs to be recalibrated.

[Baroness Buscombe]

My Lords, I do not recognise the word “inflexibility” when it comes to universal credit. The whole point of the system is to take six different benefits and put them into one simple one that tracks people’s circumstances on a monthly basis, rather than leaving people with no contact, sometimes for literally years, under the legacy system. We are spending £3.1 billion on transitional protections for 1.3 million claimants to ensure that no one loses out at the point of transition. This will ensure that no families receive less money than they do today. We are spending an additional £1.4 billion on protection for 500,000 disabled people receiving disability premium.

Domestic Abuse: Universal Credit Payments

Debate between Baroness Buscombe and Baroness Lister of Burtersett

Tuesday 24th July 2018 Lords Chamber

[Baroness Lister of Burtersett]

To ask Her Majesty’s Government what assessment they have made of the implications for their proposed domestic abuse strategy of the default joint payment of universal credit to couples.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Buscombe) (Con)]

My Lords, there are no implications on the provision of the default joint payment of universal credit to couples as a result of the domestic abuse strategy and consultation. We already provide split payments and additional support to victims of domestic abuse who request them. More broadly, the Government are currently considering stakeholder responses to the consultation on domestic abuse that closed on 31 May and will publish a response and a draft Bill later this Session.

[Baroness Lister of Burtersett (Lab)]

My Lords, domestic violence, welfare rights and women’s organisations are all warning that default joint payments will undermine the new domestic abuse strategy—which rightly includes economic abuse. With all the money bundled together in UC, such payments increase the risk of economic abuse. Requiring a victim to request a split payment, as the Minister said, makes her vulnerable to retribution from a violent partner. Why are the Government not actively trying to find a way of meeting the widespread calls for default split payments?

[Baroness Buscombe]

My Lords, it is important to stress that most couples can and want to manage their finances jointly, without state intervention, so split payments should not be the default. When an individual suffering from domestic abuse and violence requests a split payment, we will support them in putting the arrangement in place—but split payments in universal credit cannot be the solution, the panacea, to what is a criminal act. They are provided to any individual who requests them as a result of domestic violence.

Benefit Cap: Child and Family Well-being

Debate between Baroness Buscombe and Baroness Lister of Burtersett

Monday 30th April 2018 Lords Chamber

[Baroness Lister of Burtersett]

To ask Her Majesty’s Government what assessment they have made of the impact of the benefit cap on child and family wellbeing since that cap was lowered in 2016-17.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Buscombe) (Con)]

My Lords, since 2013, the benefit cap has provided a strong financial incentive for those who can work to come off welfare and so improve their child and family well-being. While 134,000 households had their benefits capped, figures for February 2018 show that around half are no longer capped because they are working at least part time, and so qualify for their full benefit entitlement and therefore a considerable boost in income and well-being.

[Baroness Lister of Burtersett (Lab)]

My Lords, a new study by Policy and Practice, which was founded by one of universal credit’s architects, highlighted the human costs of the cap, arguing that it should be applied only to those who are actively required to seek work. Can the Minister explain what purpose is achieved by imposing this measure, which is designed to get people into paid work, on lone parents of infants, who are not required to seek paid work because of their caring responsibilities, thereby causing, in the words of a High Court judge,

“real misery … to no good purpose”?

[Baroness Buscombe]

My Lords, I beg to differ from the noble Baroness. I would call it not “imposing” but “empowering”. Our research shows that the best way to lift children out of poverty is by supporting parents into work. Record numbers of lone parents are now working: 1.2 million, with 1 million fewer people living in absolute poverty compared to 2010, including 300,000 children. We know that 75% of children in poverty leave poverty altogether when their parents move into full employment. We have doubled free childcare to 30 hours a week for nearly 400,000 working parents of three and four year-olds, and a parent need work only one hour a month to be eligible for childcare costs.

Universal Credit: Free School Meals

Debate between Baroness Buscombe and Baroness Lister of Burtersett

Wednesday 14th March 2018 Lords Chamber

[Baroness Buscombe]

The simple answer to the noble Lord is no: I do not accept that. I think it is important to dispel straightaway any potential misunderstanding of what we are doing to safeguard the free school meals system for the future. The Government’s purpose here is to ensure that the programme continues to reach the most disadvantaged households in a way that is consistent, simple and fair. As the rollout of universal credit continues, it is no longer fair to retain the temporary measure, which we always said was temporary, that allows all households in receipt of universal credit to access free school meals. That said, the new rules will ensure that the provision of meals continues to be targeted where it is needed most, with 50,000 more children expected to benefit by 2022 as compared with the previous benefits system.

[Baroness Lister of Burtersett (Lab)]

My Lords, the noble Baroness has not actually answered the noble Lord’s question, so could she do so now? Can she also give an assurance that no one will be sanctioned if they are required to increase their earnings to the point which takes them over the eligibility limit and they lose their entitlement to free school meals as a result?

[Baroness Buscombe]

I have to take issue with the noble Baroness, because I feel that I have answered the question. I want to stress that the reality of this is that every child receiving free school meals now, and any child subsequently given free school meals while the universal credit rollout is under way, will have their entitlement protected until the end of the rollout or until the end of the child’s current phase of education, whichever is later. We want to ensure that, through the universal credit system, we are doing absolutely our best to give our young people the best possibilities in life; this is not the same as the old legacy benefits.

Social Security Benefits Up-rating Order 2018

Debate between Baroness Buscombe and Baroness Lister of Burtersett

Tuesday 27th February 2018 Grand Committee

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Buscombe) (Con)]

My Lords, these orders were laid before the House on 15 January. In my view, the provisions in both orders are compatible with the European Convention on Human Rights.

I will start by touching briefly on the Guaranteed Minimum Pensions Increase Order. This order provides for contracted-out defined benefit occupational pension schemes to increase members’ guaranteed minimum pensions that accrued between 1988 and 1997 by 3%, in line with inflation as measured by CPI.

Moving on to the Social Security Benefits Up-rating Order 2018, this Government are once again making good on our guarantee to the country’s pensioners that we will continue to apply the triple lock to the basic state pension and the full rate of the new state pension for the duration of this Parliament. For 2018-19, this means an increase of 3%, in line with inflation. The rate of the basic state pension for a single person will thus rise by £3.65 to £125.95 a week from April 2018. Pensioners who receive this rate will from April 2018 be £1,450 a year better off than they were in April 2010. The basic state pension will be worth around 18.5% of average earnings, which is one of the highest levels relative to earnings for over two decades. The full rate of the new state pension for people reaching their state pension age from 6 April 2016 onwards will rise by £4.80 to £164.35 a week, which is around 24.2% of average earnings.

With regard to pension credit, we are making sure that the poorest pensioners in the UK will see the full benefit of the triple lock by increasing the standard minimum guarantee in pension credit by £3.65 to match the cash rise in the basic state pension. This is a year-on-year increase of 2.29%, marginally exceeding annual growth in earnings of 2.2%, which we will fund by raising the savings credit threshold. From April 2018 the standard minimum guarantee for single people will be worth £163 a week, while the equivalent rate for couples will rise by £5.55 to £248.80 a week. With regard to the additional state pension, state earnings-related pension schemes will rise by 3%, in line with inflation, as will protected payments in the new state pension.

With regard to disability benefits, we continue to support carers and those with additional needs as a result of disability and will increase the benefits they receive by 3%, in line with inflation. These include: disability living allowance; attendance allowance; carer’s allowance; incapacity benefit; the personal independence payment; disability-related and carer premiums paid with pension credit and working-age benefits; the employment and support allowance support group component; and the limited capability for work and work-related activity element of universal credit.

In conclusion, total government spending on uprating benefit and pension rates in 2018-19 comes to an extra £4.2 billion. This is £4.2 billion that we are using to support pensioners, disabled people and carers. On this basis, I commend the orders to the Committee and I beg to move.

[Baroness Lister of Burtersett (Lab)]

My Lords, I had not planned to speak this afternoon, since I was supposed to be in two different places. But then I had this horrible memory of reading Hansard from our most recent debate on the uprating order, and of my noble friend Lady Sherlock naming and shaming me, in the nicest possible way, for not being there. I thought that I could not let this happen two years running, so here I am.

The Minister rightly said that the orders are compatible with the European Convention on Human Rights. However, there are other international obligations with which I do not think they are compatible. I would like to talk about the elephant in the room—those benefits that are not being uprated. This happened last year and the Minister very fairly accepted that it was a reasonable thing for us to do, because we cannot talk about uprating the benefits without thinking about benefits in the round.

As the Minister is aware, the European Committee of Social Rights recently issued a report, saying that levels of contributory benefits to the sick and unemployed are inadequate and therefore do not conform with Article 12 of the European charter. That was based on 2015 levels on benefits, so they would be even more inadequate now because of the benefits freeze in most working-age benefits.

In a report published last week the Resolution Foundation said that,

“in every year from 2016-17 to 2022-23 the UK is projected to miss its international commitment—through the 2030 Sustainable Development Goals”.

Those goals apply to us, as well as to poorer countries. The report said that it will fail,

“to deliver higher growth for the poorest 40 per cent of the population than for the population as a whole”.

Inequality is projected to rise to record highs by 2022-23. The Resolution Foundation says that this is,

“a story of the poorest working-age households being left behind”.

A key driver is the freeze in most working-age benefits. This is a policy choice. The Minister will talk about the living wage and personal tax allowances at some point but all this is taken into account. The fact is that the poorest people are falling behind, largely because of the benefits freeze.

According to the Resolution Foundation report, by 2020 jobseeker’s allowance and child benefit beyond the first child will be worth less than 32 years ago and child benefit for the first child will be at its lowest real-terms level in 20 years. I am sure that the noble Lord, Lord Kirkwood, will feel the same as me: as someone who has been working in this area for so long I find it very depressing to see how seriously we are going backwards.

The Minister gave us the welcome news about how pensions are improving relative to average earnings, but child benefit for a two-child family is less generous that at any previous point in the almost 40 years since it was fully introduced. It is set to fall even further over the next five years. Jobseeker’s allowance—unemployment benefit as was—was around a fifth of average full-time pay in the 1970s. It is now around 11% and is on track to fall to 10% by 2022, which will be a new low.

Does the Minister have the figures for what these key benefits, for people of working age and their children, would have been had they been uprated in line with prices since 2010? If she does not have them here—I would not expect her to read them all out anyway—would she be able to send them to Members of the Committee? It is important that we know what effect this freeze is having.

Given the way benefits are falling behind, it is hardly surprising that more people are turning to food banks and that poverty, especially child poverty, has started to rise again and is projected to increase by more than 1 million by the next decade. It is quite shocking. We are happy to allow the poorest to pay the price of increased inflation while the better off continue to enjoy cuts in taxation which do nothing for those whose income is too low even to pay income tax. I was very struck by reading in the paper yesterday that the Archbishop of Canterbury has said:

“Austerity is a theory for the rich and a reality of suffering for the poor”.


As the Resolution Foundation and others have said, these are choices. How we have responded to the financial crisis has been a matter of choices. I believe they are the wrong choices and that those with the narrowest shoulders are being asked to carry the burden. With inflation continuing to be significantly higher than it was projected to be at the point when the benefit freeze was first announced, is it not time that the Government think again about that policy and come back at the next available opportunity to say that they will now lift the benefit freeze?

--- Later in debate ---

[Baroness Buscombe]

Yes. Work is being done and I am very conscious of the fact that we should be talking more about that. We have been saying that work pays— I prefer to say that work transforms lives. The noble Lord is right. We need to do more to articulate our belief and the reasons why we are confident that we are right and that work transforms lives. It relates hugely to outcomes. It is not a simple, overnight back of the envelope matter, but we are working on it.

The noble Baroness, Lady Primarolo, asked about targets for child poverty. The income-related targets set out in the Child Poverty Act 2010 have been replaced by two new statutory measures of parental worklessness and children’s educational attainment. This will drive continued action on the areas that can make the biggest difference to children’s outcomes now and in the future. The noble Baroness also asked whether the Government would lift the freeze on working tax credits. The answer is that the Treasury is responsible for working tax credits.

The noble Lord, Lord Kirkwood, made his point with feeling, and I can only say that we are working hard and thinking about our policies going forward. The huge question is affordability. We are spending £95 billion—that is, ninety-five thousand million pounds—a year on benefits for people of working age. For how long is that sustainable? Our department accounts for 25% of the whole of the Government’s budget, which in terms of expenditure is now the size of Chile or similar, I understand. The noble Baroness, Lady Lister, referred to some overseas organisation, saying that we are behind the curve in terms of our expenditure. I simply do not recognise that, in terms of how much other countries are spending or of the choices that they have made. For example, are they paying the similar amount of 0.7% of their national income, which is what we are paying, on overseas aid?

[Baroness Lister of Burtersett]

I am sorry to interrupt. I may not have made myself clear. I was not referring to some international organisation. The Resolution Foundation pointed out that we will not be meeting our obligations under sustainable development goals not because of overall expenditure levels but because the lowest 40% are going to do worse than the population as a whole. That goes against what we have signed up for under the sustainable development goals. We think of the SDGs as being for the poorer countries, but they are for us as well.

[Baroness Buscombe]

I accept that, but it has to be comparative in terms of the goals that we have set. In the back of my mind I have the response to that particular figure that was quoted and we do not recognise that as being correct. I think that I have said that on the Floor of the House in another debate.

The noble Baroness, Lady Sherlock, raised a number of questions, the first of which was about contracting out. If a person was previously contracted out for a long period they may have a lower starting amount for a new state pension than someone who had built up some additional state pension. This is because they paid lower national insurance when they were contracted out and have built up an occupational pension as a result of these arrangements. Part of their occupational pension replaces the part of the state pension they were contracted out of. People who were previously contracted out are therefore not missing out. Although some people will get a lower starting amount from the state, many will have more than the new full rate in total if they add their state pension and their contracted-out private pension together. If no adjustment was made, people who had been contracted out would be paid twice for the same national insurance contributions. The transitional arrangements ensure that everyone who qualifies for the new state pension will get at least as much as they would have done under the old system, based on their own national insurance contributions to 6 April 2016.

Local Welfare Assistance

Debate between Baroness Buscombe and Baroness Lister of Burtersett

Monday 11th December 2017 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Buscombe) (Con)]

My Lords, since 2013 we have given local authorities the flexibility to develop their own local emergency provision for people in their areas. Local authorities are best placed to design and target this discretionary support, alongside their own local services, ensuring it reaches those who need it most at the right time.

[Baroness Lister of Burtersett (Lab)]

Ah, my Lords, the Pontius Pilate response. When the Government devolved crisis and community care support from the Social Fund to local authorities, they placed no duties on the authorities and refused to ring-fence the money. According to the Centre for Responsible Credit, about one in six authorities has abolished its scheme altogether, and many more have cut them back drastically, leading to some people facing destitution for lengthy periods. Will the Government now therefore accept, in the words of the Work and Pensions Committee, that they maintain,

“an ongoing obligation to ensure provision of a safety net which prevents vulnerable people from falling into severe hardship”,

starting with an urgent evaluation of what is now the final safety net?

[Baroness Buscombe]

My Lords, it is important to say that the national welfare system provides robust safeguards. These include: short-term benefit advances or universal credit advances for people in urgent financial need; Social Fund budgeting loans or universal credit budgeting advances to help with one-off and unforeseen expenses; and hardship payments for people who are sanctioned. But by abolishing the Social Fund crisis loans, which themselves had huge problems, we have now empowered local authorities to develop and deliver new provision to meet the needs of the most vulnerable people in their local communities.

--- Later in debate ---

[Baroness Buscombe]

My Lords, perhaps I could quote the Local Government Association’s own study:

“Councils have managed the available budget effectively; reduced the potential for abuse, and created schemes which better meet the underlying needs of applicants and reduce repeat demand. This has enabled them to provide vital, timely support to some of their most vulnerable and deprived residents”.

[Baroness Lister of Burtersett]

My Lords, I still have not heard how those authorities that have abolished their schemes are going to meet the needs that the noble Baroness referred to. As she herself said, these are some of the most vulnerable people. There are 26 local authorities where there is no scheme that can meet those needs.

[Baroness Buscombe]

My Lords, the noble Baroness had already referenced the issue of ring-fencing. Government policy is not to ring-fence amounts in the local government finance settlement, as local councils are the best judge of needs and priorities within their areas. As I have already said, local authorities are in receipt of £200 billion. Part of that is to fund these emergency services, in addition to the safety net that we provide at national level.

Benefit Rate Freeze

Debate between Baroness Buscombe and Baroness Lister of Burtersett

Monday 30th October 2017 Lords Chamber

[Baroness Lister of Burtersett]

To ask Her Majesty’s Government what is their assessment of the impact of the benefit rate freeze, in the light of the higher rate of inflation than that anticipated in the original impact assessment.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Buscombe) (Con)]

My Lords, we currently provide people below state pension age with over £95 billion a year in welfare support. The benefit freeze is part of a package of welfare reforms that is designed to ensure that the system remains sustainable and to incentivise claimants into work. These reforms are working, and we have not had a lower unemployment rate since the 1970s. The changes we have made to the benefits system allow us to target the support we provide to those who need it most.

--- Later in debate ---

[Baroness Lister of Burtersett (Lab)]

I take it from that reply that the Government have not done an assessment. However, independent assessments of the four-year freeze indicate losses of over £800 a year for many two-child families in or out of work, and significantly worse poverty—especially child poverty—inequality and homelessness. My question to the Minister is simple. Do the Government care about the harmful impact of this policy on people who already have so little—yes or no?

[Baroness Buscombe]

My Lords, we do care, and that is why we are incentivising people into work. All our research shows that workless families are most likely to drive children into poverty. In terms of our reforms, we introduced 15 hours of free childcare for working families. From September this year, we have doubled that from 15 to 30 hours a week in England, worth on average up to £5,000 a child. Since April 2016, the universal credit childcare element has covered up to 85% of eligible childcare costs compared with 70% with working tax credits.

Work Capability Assessment

Debate between Baroness Buscombe and Baroness Lister of Burtersett

Monday 9th October 2017 Lords Chamber

[Baroness Buscombe]

I am sorry, but I think that noble Lords would like a clear explanation. Since August 2017, the centre has ensured that claimants go through the assessment process more quickly and increased the number of mental health champions it employs, as well as appointed a head of customer experience.

[Baroness Lister of Burtersett (Lab)]

My Lords, two noble Lords have asked specifically about piloting any revised work capability assessment. Will the Minister now answer that question about piloting?

[Baroness Buscombe]

My Lords, I hear what noble Lords are saying in relation to piloting. As I have said, our officials are working hard to consider the next steps. I will take that suggestion back to them. They are thinking about all the future plans and taking into account the concerns of all the 6,000 people who responded to the consultation. Of course, if there is a wish to have more pilots, I am convinced that my department will look at that.

Grenfell Tower: Tenants

Debate between Baroness Buscombe and Baroness Lister of Burtersett

Wednesday 5th July 2017 Lords Chamber

[Baroness Lister of Burtersett]

To ask Her Majesty’s Government, further to the comments by Lord O’Shaughnessy on 29 June (HL Deb, col 660), how they intend to ensure that no former tenants of Grenfell Tower are disadvantaged in terms of their social security if they are moved to larger, or more expensive, accommodation.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Buscombe) (Con)]

My Lords, I thank the noble Baroness for her insightful question. I put on record on behalf of the Department for Work and Pensions our heartfelt condolences and support for all those affected by this appalling tragedy.

To answer the noble Baroness, the Government are clear that there will be relaxed benefit rules for anyone affected by the Grenfell Tower fire, and our staff are handling people’s claims with sensitivity, understanding and flexibility. As part of this, our very recent guidance to local authorities makes it absolutely clear that they should treat these residents as a priority for extra discretionary payments to help with their rent if they are rehoused in a larger property.

[Baroness Lister of Burtersett (Lab)]

First, I welcome the noble Baroness to her new position. I thought that in the Statement later we would get a welcome assurance about rent protection, but she seems to be suggesting that the rules will still be applied—the bedroom tax and the benefit cap—but that the Government will look to local authorities to make discretionary housing payments, which are usually made on a temporary basis, on a discretionary basis, as the name implies, out of a limited pot. This is not good enough, as was made clear in the High Court judgment on the benefits cap last week, which said that it does not provide a satisfactory safeguard and gives no peace of mind. What the people who have been affected by this terrible tragedy need more than anything is peace of mind. Will the Government ensure that they will not rely on discretionary housing payments in this or any other situation of vulnerability, because they do not provide security and peace of mind?

[Baroness Buscombe]

First, I thank the noble Baroness for welcoming me to my new role. I entirely agree that peace of mind and reassurance should be at the forefront of our minds. That is why it is a priority for us to ensure that people affected by the tower fire get the financial help they need. Noble Lords may be aware that at the heart of the discretionary housing payments scheme, which is enshrined in primary legislation, is the principle that it is for local authorities to determine when an individual is eligible for extra assistance with their housing costs. That said, my department issued new guidance to local authorities on 23 June to ensure that residents affected by the tragic events of Grenfell Tower are treated as a priority for extra discretionary payments and advice. I quote the guidance:

“in these circumstances any requests for DHP to meet rent shortfalls should be treated as a priority”.