Social Security Benefits Up-rating Order 2018

Baroness Lister of Burtersett Excerpts
Tuesday 27th February 2018

(7 years, 9 months ago)

Grand Committee
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Baroness Buscombe Portrait The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Buscombe) (Con)
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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 Portrait Baroness Lister of Burtersett (Lab)
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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?

Baroness Primarolo Portrait Baroness Primarolo (Lab)
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My Lords, I shall briefly follow the points that my honourable friend made and developed to ask the honourable Lady—I beg their pardon; I am not in the other place and should say my noble friend and the Minister—some specific questions about the Social Security Benefits Up-rating Order with regard to child benefit and child tax credit, which are not in the order, and in particular how it fits with previous decisions by this Government to cap uprating at 1% between 2013 and 2015 and subsequently to put a freeze on the vast majority of social security payments.

I want to address rising child poverty and, in particular, the rise of absolute child poverty. I am sure that the Minister will be aware that the evidence shows that money paid through child benefit and tax credits directly to the parent, mainly the mother, is spent directly on children, yet in this period we have seen a shocking increase in child poverty in a country which has the sixth largest economy in the world, notwithstanding the points that my noble friend made. While the price of food and energy is rising at 4% and more, the poorest families will see their income drop as they struggle to balance feeding their children and heating their home, and many of them will fall prey to loan sharks.

Does the Minister accept that, as CPAG has said, as a result of the cumulative cuts to social security, which are pushing more people into poverty, the failure to uprate benefits in line with inflation is the single biggest driver of child poverty? What is her assessment of the impact of the decisions contained in this uprating order on poverty levels and, in particular, child poverty? Does she accept the CPAG’s analysis that 1 million more children will be pushed into poverty? One million! I mean, one child would be awful; I cannot think of a word to describe adequately the prospect in our society of 1 million more children in poverty as a direct result of this Government’s policies and the cuts to universal benefit.

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Baroness Buscombe Portrait Baroness Buscombe
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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 Portrait Baroness Lister of Burtersett
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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 Portrait Baroness Buscombe
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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

Baroness Lister of Burtersett Excerpts
Monday 11th December 2017

(7 years, 11 months ago)

Lords Chamber
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Asked by
Baroness Lister of Burtersett Portrait Baroness Lister of Burtersett
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To ask Her Majesty's Government what assessment they have made of the effectiveness of local welfare assistance schemes in meeting need.

Baroness Buscombe Portrait The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Buscombe) (Con)
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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 Portrait Baroness Lister of Burtersett (Lab)
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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 Portrait Baroness Buscombe
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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.

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Baroness Buscombe Portrait Baroness Buscombe
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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 Portrait Baroness Lister of Burtersett
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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 Portrait Baroness Buscombe
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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

Baroness Lister of Burtersett Excerpts
Monday 30th October 2017

(8 years ago)

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Asked by
Baroness Lister of Burtersett Portrait Baroness Lister of Burtersett
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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.

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

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Baroness Lister of Burtersett Portrait Baroness Lister of Burtersett (Lab)
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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 Portrait Baroness Buscombe
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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

Baroness Lister of Burtersett Excerpts
Monday 9th October 2017

(8 years, 1 month ago)

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Baroness Buscombe Portrait Baroness Buscombe
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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 Portrait Baroness Lister of Burtersett (Lab)
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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 Portrait Baroness Buscombe
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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

Baroness Lister of Burtersett Excerpts
Wednesday 5th July 2017

(8 years, 4 months ago)

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Asked by
Baroness Lister of Burtersett Portrait Baroness Lister of Burtersett
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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.

Baroness Buscombe Portrait The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Buscombe) (Con)
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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 Portrait Baroness Lister of Burtersett (Lab)
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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 Portrait Baroness Buscombe
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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”.

Local Authorities: Relationship Support Services

Baroness Lister of Burtersett Excerpts
Wednesday 5th April 2017

(8 years, 7 months ago)

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Lord Henley Portrait Lord Henley
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My Lords, the noble Baroness has highlighted three different aspects of work we are doing in the Department for Work and Pensions, but the work goes across all parts of government. She is right to highlight the different sums of money involved in the three schemes. The one we are discussing today is a small-scale scheme designed to offer a degree of help to local authorities to access expertise and evidence in order to drive forward various local strategies. I hope that will feed into all the other programmes as well but, as I say, that particular programme is a small-scale one to help those 11 local authorities.

Baroness Lister of Burtersett Portrait Baroness Lister of Burtersett (Lab)
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My Lords, we know that money, or lack of it, can be an important factor in parental conflict. Given the announcement made yesterday, about which we have just heard, that the Government’s aim is to reduce parental conflict in workless families, can the Minister tell us what assessment they have made of the impact of benefit cuts, including the ongoing freeze in benefits, on parental conflict in families who are already struggling, and will be struggling all the more with the impact of these cuts?

Lord Henley Portrait Lord Henley
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My Lords, anyone who has been involved in family matters will know that money is one of the major causes of conflict in parental disputes, and that can be true at all levels of income. I do not accept that the changes and reforms we have made to the benefit system, which will continue to roll out this year, are making any difference in this respect.

GovCoin

Baroness Lister of Burtersett Excerpts
Monday 27th March 2017

(8 years, 8 months ago)

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Lord Henley Portrait Lord Henley
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My Lords, I would not want to speak for the rest of government, although obviously I answer on behalf of Her Majesty’s Government on this occasion. Certainly, we want to look carefully at this particular trial. It was a very small trial, involving only some 20 to 30 people. It was more what I think is termed a proof of concept rather than a trial, but it produced encouraging results and we want to look at those in due course.

Baroness Lister of Burtersett Portrait Baroness Lister of Burtersett (Lab)
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My Lords, concerns have been raised, including as I understand it by members of the Government Digital Service, that this technology could be used in future to monitor or even control how social security claimants spend their benefits. Could the Minister give a categorical assurance that this will not happen, in the interests of claimants’ privacy and freedom of choice?

Lord Henley Portrait Lord Henley
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My Lords, I give the noble Baroness that categorical assurance. The Department for Work and Pensions has absolutely no access to any such claimant information and will have no access to it in any further trials we look at. We want to keep it like that. Obviously, information will be able to Disc—which is GovCoin, referred to in the Question—but that will be protected by data protection principles. I reiterate what I said to the noble Baroness: the department and the Government will have no access to that information.

Child Poverty Unit

Baroness Lister of Burtersett Excerpts
Tuesday 24th January 2017

(8 years, 10 months ago)

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Asked by
Baroness Lister of Burtersett Portrait Baroness Lister of Burtersett
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To ask Her Majesty’s Government why they have abolished the Child Poverty Unit which was sponsored by the Department for Work and Pensions, the Department for Education and HM Treasury.

Lord Henley Portrait The Parliamentary Under-Secretary of State, Department for Work and Pensions (Lord Henley) (Con)
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My Lords, tackling child poverty and disadvantage is a priority for this Government, and we are convinced that there is a better approach than the one driven by the Child Poverty Act 2010 income-related targets. This is why we replaced them with statutory measures of parental worklessness and children’s educational attainment—the two areas that can make the biggest difference to children’s outcomes. We will build on these measures through our forthcoming Green Paper on social justice.

Baroness Lister of Burtersett Portrait Baroness Lister of Burtersett (Lab)
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My Lords, that does not actually answer the Question. The abolition of the cross-departmental unit is widely seen as downgrading and weakening the government machinery dedicated to the eradication of child poverty. Could the Minister explain how the abolition of a cross-departmental unit co-sponsored by the Department for Education is consistent with the Government’s own analysis of the root causes of poverty as partly lying in children’s educational achievement? Surely their own approach, which rejects what they call a narrow income-based approach, strengthens rather than weakens the case for a cross-departmental unit.

Lord Henley Portrait Lord Henley
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My Lords, I am terribly sorry to say this, but I think I did answer the Question directly. What was the purpose of the child poverty unit? Its purpose was to measure the income-related targets set up by the previous Government. Those targets were a waste of time and we got rid of them. We have now set up something better—the Social Mobility Commission secretariat, based in the Department for Education. As I said in my original Answer, the appropriate measure for these things should be parental worklessness—a responsibility of the Department for Work and Pensions—and children’s educational attainment, and those are the two that we will look at.

Universal Credit

Baroness Lister of Burtersett Excerpts
Wednesday 21st December 2016

(8 years, 11 months ago)

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Baroness Lister of Burtersett Portrait Baroness Lister of Burtersett (Lab)
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My Lords, I too am grateful for this opportunity to mark the huge contribution made by the noble Lord, Lord Freud, to the design and implementation of universal credit. However, I doubt that the Minister will be surprised that my three minutes will not just be made up of warm words, because reports from the ground are not encouraging.

One of the biggest problems is the combined effect of a seven-day waiting period and monthly payments in arrears, which, after assessment, means that the first payment is not made for at least six weeks. This is causing considerable hardship and is leading to reliance on food banks. Monthly payments also create unnecessary difficulties for those—especially mothers—who just about get by when budgeting weekly or fortnightly. They are not essential to UC’s architecture and I urge the Government most strongly to look at them again.

I am particularly concerned about the implications for those granted refugee status, who are given only 28 days to move from asylum support to mainstream benefits. This is already a problem, with too many left destitute because 28 days simply is not long enough, and, by definition, it will not be enough time under UC. Welcome as the Home Office/DWP pilot is, it cannot solve that problem. A related problem is refugees and other vulnerable claimants who are unable to claim because they do not have any form of bank account, despite the assurance given in a recent Written Answer that this does not prevent a UC claim. Again, I urge Ministers to look into this.

Universal support delivered locally is supposed to be the answer to the more general problems created by monthly payments. However, I am told that it is functioning pretty minimally now. The evaluation of the trials found that the,

“most significant challenge in delivering personal budgeting support was that ... participants simply did not have enough money each month”.

Well, that challenge is going to get harder with the lower benefit cap, the two-child limit and the benefits freeze at a time of rising inflation.

Moreover, the universal credit that the Minister is bequeathing his successor is not the one that he championed through your Lordships’ House because of the cuts in work allowances, which we have already heard about and which bear the fingerprints of the Treasury. Even the Minister’s former boss, Iain Duncan Smith, has made a powerful case against this cut, pointing out that work allowances are a much more cost-effective mechanism for helping the just about managing than are personal tax allowances—a point also made by the right reverend Prelate. Of course, the Minister could not possibly comment but I hope that, once he has stepped down, he might feel freer to do so.

Nick Timmins described the Minister as,

“the last political figure to understand, in full technicolor, the gory details”,

of UC. The DWP has been very fortunate to have someone of his ability committed to it. I hope that those who follow will learn from his experience and will be willing to look again at the emerging problems. I am very encouraged that the noble Lord, Lord Macpherson, made clear in his valuable maiden speech that he will be taking part in those debates—and I should mention that I have no prejudice against his Treasury background.

As for the noble Lord, Lord Freud, we may rarely have seen eye to eye in exchanges in this Chamber but I am grateful to him for his courtesy and openness outside it, and I wish him all the best for his well-deserved retirement.

Social Security: Claimants

Baroness Lister of Burtersett Excerpts
Wednesday 30th November 2016

(8 years, 11 months ago)

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Asked by
Baroness Lister of Burtersett Portrait Baroness Lister of Burtersett
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To ask Her Majesty’s Government whether, in the light of the public debate around the film “I, Daniel Blake”, they plan to set up a review of the treatment of claimants in the social security system.

Lord Freud Portrait The Minister of State, Department for Work and Pensions (Lord Freud) (Con)
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We aim to keep all our policies under constant review to ensure that they continue to function effectively and fairly. The film is one person’s interpretation of the benefit system. I make it clear that our staff, who work incredibly hard day in and day out, are committed to supporting the most vulnerable and helping people who are able to find work to get a job.

Baroness Lister of Burtersett Portrait Baroness Lister of Burtersett (Lab)
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My Lords, I fear that Ministers have missed the point of this powerful and well-researched film, summed up in the final words of Daniel Blake’s demand for respectful treatment:

“I am a citizen, nothing more, nothing less”.

What will the Government now do to transform a culture of suspicion and sanctions, the costs of which are highlighted in today’s damning National Audit Office report, to a culture of citizenship for the sake of both claimants and staff?

Lord Freud Portrait Lord Freud
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The staff of the DWP, who I think are effectively being attacked in that Question and by its implications, have really transformed the way that they approach this. With the work coach transformation they are tailoring requirements to the needs of individuals, following a thorough discussion with them on what their needs are in order to get them to play an economic part in this country.