Extreme Poverty

Baroness Stedman-Scott Excerpts

Tuesday 15th December 2020 Lords Chamber

[Baroness Lister of Burtersett]

To ask Her Majesty’s Government, further to the report by the Joseph Rowntree Foundation Destitution in the UK 2020, published on 9 December, what steps they are taking to address any (1) increase in, and (2) intensification of, extreme poverty in the United Kingdom.

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

My Lords, tackling poverty is a priority for this Government. Throughout this pandemic, this Government have sought to protect jobs and incomes, spending billions on strengthening welfare support and ensuring the most vulnerable can meet their basic needs. Our long-term ambition is to level up opportunity across the UK by helping people back into work as quickly as possible, based on clear and consistent evidence of the important role work can play in tackling poverty.

[Baroness Lister of Burtersett (Lab) [V]]

My Lords, is it not shocking that the JRF found that

“even before the COVID-19 outbreak destitution was rapidly growing in scale and intensity”,

with 2.4 million people, including over 500,000 children, in households unable to afford the essentials needed to eat and stay warm and dry? Given that this and other research identifies social security cuts and design flaws as the key cause of this hardship, what assessment have the Government made of the impact on extreme poverty of withdrawing the £20 UC uplift in April and refusing to extend it to disabled people, the unemployed and carers on legacy and related benefits?

[Baroness Stedman-Scott (Con)]

Tackling poverty, as I said, is an absolute commitment and a priority for this Government. The noble Baroness raises the issue of the £20 uplift, and I can only confirm that the £20 uplift is in place until April 2021. Discussions between our department, the Treasury and others are ongoing, and a decision will be made in due course.

[Lord Hendy (Lab) [V]]

My Lords, before the impact of lockdown, in 2018, the United Nations special rapporteur on extreme poverty found that 14 million people in the United Kingdom were below the poverty line, 9 million of them in households where at least one person worked. Wages need to be increased to reduce poverty. To this end, and to increase demand, the OECD and the ILO advocate the promotion of collective bargaining. Does the Minister agree with them? If so, what steps to restore collective bargaining in the United Kingdom will the Government take to enable the voice of workers to be heard in the determination of wages?

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[Baroness Stedman-Scott (Con)]

I am pleased that the noble Lord recognises that being in good, well-paid work is a good route out of poverty. On collective bargaining, I will need to come back to the noble Lord in writing.

[Baroness Janke (LD) [V]]

The noble Baroness will be aware that many people in poverty and destitution do not have access to computers. They are often deprived of support and advice as well as crucial referrals to such services as food banks. Often, they do not pick up DWP instructions, and they end up being sanctioned through no fault of their own, adding further insult to injury. What plans do the Government have to bridge the digital divide and ensure access for the poorest and most deprived to such essential services?

[Baroness Stedman-Scott (Con)]

The noble Baroness raises a really important point. As we move to more online activity, access to technology will be critical for people to get the information they need. I can confirm that our department is looking at how we can increase digital access as part of the work the Secretary of State is conducting across government on the cost of living. Indeed, this is one of the things the flexible support fund exists to help with. When people see their work coach and explain their difficulties with access to IT, the flexible support fund can help.

[Baroness Eaton (Con) [V]]

My Lords, to read the words “living in destitution” as a description of life for some people, particularly children, is acutely distressing. When will the Government bring forward a proper strategy for tackling poverty, which, as this latest report clearly shows, was rising and intensifying long before the pandemic?

[Baroness Stedman-Scott (Con)]

I can confirm to my noble friend, as I already have, that this Government have consistently supported the lowest-paid families by increasing the living wage and continually strengthening the welfare safety net, including with an injection of billions extra this year for those in need. Our long-term ambition is to support economic recovery in this country by getting people back to work as quickly as possible.

[Lord Woolley of Woodford (CB) [V]]

My Lords, there have been two worrying reports this week: Destitution in the UK by the Joseph Rowntree Foundation and the Covid-19 Marmot review by Sir Michael Marmot. These reports paint a bleak picture of deprivation and destitution in the UK made worse by Covid-19. Both highlight the shocking, disproportionate impact these are having on black, Asian and minority ethnic communities, including Gypsy, Roma and Traveller. When will the Government acknowledge this specific fact and, more importantly, ensure there is targeted action to deal with it effectively?

[Baroness Stedman-Scott (Con)]

This Government have acknowledged the issues the BAME community faces and taken action. In fact, the number of BAME community members going into work was increasing. The detail of the noble Lord’s question might warrant, I may suggest, a meeting between us to talk about them further and in more depth.

[Baroness Sherlock (Lab) [V]]

My Lords, we all want to help people into work, but this report shows people are destitute now. It highlights the fragility of our social security system, pointing out that half of destitute households were getting universal credit or had applied for it. It says that needing to repay advances was leaving them with little to live on, and it warns that Britain is increasingly reliant on food banks as a core welfare response to destitution. This is scandalous—does the Minister agree with me? If so, what are the Government going to do about it now?

[Baroness Stedman-Scott (Con)]

I certainly acknowledge the issues that people are facing; I do not shy away from that at all. But, at the risk of repeating myself, the Government are right now putting over £100 million extra into working-age welfare, we have the Covid winter support fund, we have the plan for jobs and the pandemic policies are under continual review. There are free school meals and money for food charities. I am not sure I agree with the noble Baroness’s implication that we are not doing enough.

[Lord Taylor of Goss Moor (LD) [V]]

My Lords, we clearly face a completely unprecedented shock to the system, in which families who have been hard working and supporting themselves are being plunged into poverty and destitution by the economic shocks associated with coronavirus. One group that is often forgotten is those in rural poverty, whose difficulties are often made worse by their difficulty in accessing services that have been centralised. Will the Government put a priority on ensuring that at least some services are directed to the more remote, rural communities, where people in destitution often find themselves unable to get the help that people in more urban areas take for granted?

[Baroness Stedman-Scott (Con)]

The noble Lord raises a very pertinent issue. I am well aware of the issues that rural communities face. What I would like to do, if he is happy with this, is go back to my colleagues in the jobcentre network in order to understand exactly what they are doing to target help at the rural communities, and come back to him in due course.

[The Lord Speaker (Lord Fowler)]

I call the noble Lord, Lord Desai. No? In that case, I call the noble Lord, Lord Young of Cookham.

[Lord Young of Cookham (Con)]

My Lords, the Government introduced a welcome measure to help up to 4 million people on low incomes in September, offering a grant of £500 to those who had to self-isolate but could not work from home and therefore faced a drop in income. However, some of the local authorities through which this grant is routed are running out of funds, thereby prejudicing the success of the scheme. What steps can my noble friend take to ensure that those who are entitled to these grants get them?

[Baroness Stedman-Scott (Con)]

The £15 million allocated for discretionary payments is a fixed envelope to cover cases of exceptional hardship that fall outside the scope of the main test and trace support payment scheme. In addition, the Government have made a range of other support available to those on low incomes who have to self-isolate. That includes changing the rules to allow claims for statutory sick pay, increasing the standard allowance of UC and the Self-employment Income Support Scheme.

[The Lord Speaker (Lord Fowler)]

My Lords, the time allowed for this Question has elapsed, and that brings Question Time to an end.

Chemicals (Health and Safety) and Genetically Modified Organisms (Contained Use) (Amendment etc.) (EU Exit) Regulations 2020

Baroness Stedman-Scott Excerpts

Monday 14th December 2020 Lords Chamber

Moved by

[Baroness Stedman-Scott]

That the draft Regulations laid before the House on 15 October be approved.

Considered in Grand Committee on 9 December.

Motion agreed.

Chemicals (Health and Safety) and Genetically Modified Organisms (Contained Use) (Amendment etc.) (EU Exit) Regulations 2020

Baroness Stedman-Scott Excerpts

Wednesday 9th December 2020 Grand Committee

Moved by

[Baroness Stedman-Scott]

That the Grand Committee do consider the Chemicals (Health and Safety) and Genetically Modified Organisms (Contained Use) (Amendment etc.) (EU Exit) Regulations 2020.

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

My Lords, this draft statutory instrument was laid before Parliament on 15 October. Through this instrument, we are making the necessary arrangements to implement the terms of the withdrawal agreement and the Northern Ireland protocol in law for chemicals regulations. This will ensure that these regulations function effectively from the end of the transition period and that the existing high standard of protection for human health and the environment will be maintained.

In preparation for our exit from the European Union, a statutory instrument was made last year to ensure that the regulatory framework for chemicals remained functional after exit and to provide certainty for businesses and the public. It achieved that by making technical amendments to the retained EU law, such as changing EU-specific references and transferring functions and powers currently held by the European Commission to the appropriate authorities in each of the UK’s constituent nations.

Since the 2019 regulations were made, the withdrawal agreement, including the Northern Ireland protocol, has been agreed. The protocol requires that EU legislation will continue to apply in Northern Ireland after the end of the transition period. The existing EU exit legislation therefore needs to be amended to reflect the fact that retained EU law will be substantively applicable in Great Britain only.

If approved, these draft regulations will make the necessary amendments to three retained EU regulations as well as to EU-derived domestic legislation. I appreciate that the technical and composite nature of the regulations makes this particularly complex; the decision to present these proposals as a single instrument was for the benefit of the House, to reduce pressure on parliamentary time and to ensure that we are able to deliver an orderly transition. As this is such a technical instrument, I shall provide a concise summary of the regulations and the changes that we are making for noble Lords.

Of the three retained EU regulations to be amended, the first is the biocidal products regulation. This governs the placing on the market and use of products that contain chemicals which protect humans, animals, materials or articles from harmful organisms like pests or bacteria. This market covers a wide range of products such as wood preservatives, insecticides such as wasp spray, or anti-fouling paint to remove barnacles from boats.

Secondly, the classification, labelling and packaging of substances and mixtures regulation ensures that the hazardous intrinsic properties of chemicals are properly identified and effectively communicated to those throughout the supply chain, including to the point of use. The current classification laws are sophisticated and incorporate a detailed technical system of classification criteria. This classification is partly done through standardised hazard pictograms and symbols and warning phrases associated with specific hazards, such as explosivity, acute toxicity, or carcinogenicity.

Lastly, the export and import of hazardous chemicals regulations require the export of listed chemicals to be notified to the importing country and, for some chemicals, the consent of the importing country must be obtained before export can proceed.

This instrument makes three main changes, which I shall summarise. First, we are updating some transitional provisions in the 2019 regulations so that they apply from the end of the transition period, when the retained law comes into force, rather than from exit day. It should be noted that while this instrument’s title references genetically modified organisms, the only amendments to the relevant legislation are to update two references to “exit day”.

Secondly, it removes Northern Ireland from the scope of the 2019 regulations by omitting references to Northern Ireland and changing UK-specific references to read “Great Britain”. The instrument also revokes changes made to domestic legislation in Northern Ireland in the 2019 regulations, which are no longer required due to the protocol. Lastly, this instrument legislates for the Government’s commitment on unfettered access for these chemical regulations as well as the need to ensure that UK authorities have the appropriate information and regulatory safeguards in respect of chemicals placed on the market in Great Britain.

The Health and Safety Executive currently acts as a UK competent authority within the EU regimes for chemicals regulation. Under this instrument, it will become the GB regulatory authority. The Health and Safety Executive for Northern Ireland will be the regulatory authority with responsibility for Northern Ireland, and we are working closely with Northern Irish colleagues to prepare for the end of the transition period and support them afterwards. Both organisations have demonstrated their resilience through the pandemic, and I am confident that they have the capacity to undertake any new responsibilities brought about by EU exit.

This instrument was not subject to consultation as it does not alter existing policy. Published guidance has been followed and, in line with it, a full impact assessment has not been conducted as the instrument does not meet the de minimis threshold. However, I assure noble Lords that the changes brought about by it have been communicated through a series of stakeholder events throughout autumn and guidance published on the HSE website in October.

The devolved Administrations have also been fully engaged in the development of this instrument and have provided consent for the elements that relate to them. We are also in the process of agreeing a provisional common framework for chemicals that aims to maintain existing standards and promote common approaches to chemicals policy in the future.

In conclusion, this instrument will provide important continuity and clarity to the chemicals industry, ensuring that the legal requirements that apply to chemicals regulation are clear following the end of the transition period. I hope that colleagues of all parties will join me in supporting the draft regulations, and I commend them to the Committee. I beg to move.

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[Baroness Stedman-Scott (Con)]

My Lords, I thank all noble Lords who have contributed to this debate. I too add my thanks to the officials, who have helped us understand the detail of this SI and whose support has proved invaluable.

In winding up, I will address some of the important points raised during the discussions. First, my noble friend Lady Altmann mentioned the CLP and the MCL list. This will copy all existing harmonised EU classifications on 1 January, and HSE will be able to carry out its responsibilities to update.

The noble Baroness, Lady Bennett, talked about the chemical cocktail effect. I will ensure that the Health and Safety Executive writes directly to her and that a record is sent to all Members in the Committee and placed in the Library. The noble Baroness also talked about REACH. The REACH regulation is not included in this SI. Defra has the policy responsibility for the REACH regulation and has brought forward separate legislation on it, which I understand was debated yesterday.

The noble Baroness, Lady Bennett, and my noble friend Lady McIntosh talked about GMOs. The responsibility for aspects of GMO policy is spread throughout government. However, regarding contained usage, there will be no reduction in standards, and existing protections covering human health and the environment are maintained and will continue to work in the same way post EU exit.

The noble Baroness, Lady Sherlock, and my noble friend Lady McIntosh talked about resourcing and recruitment. The Health and Safety Executive has identified a total of 147 posts to be filled by the end of the financial year. We have made good progress and at present we have filled 108 of the 147 posts—73%—and are confident that this means we will be ready for the end of the transition period. Of the 73% of posts we have filled to date, we expect the vast majority to start in January, with the remainder taking up post before April. Several campaigns are still ongoing and due for completion in January 2021. We will continue to seek recruitment into our outstanding posts as a priority until the end of March. In total, we are recruiting an additional 117 brand new posts into the Chemicals Regulation Division relating specifically to EU exit. This represents a 45% increase in our baseline staffing number—260—from January 2020, and demonstrates our significant commitment to take on the new functions required.

My noble friend Lady McIntosh raised the issue of animal testing and asked whether, if we cannot access animal testing data, that would require applicants to do more tests. The Health and Safety Executive will apply the principle in the biocidal products regulation that vertebrate tests “shall not be repeated” and may be undertaken

“only as a last resort.”

Therefore, if the data owner has not submitted the study to the HSE, we would expect the applicant to make every effort to obtain access to it. Should the applicant not be able to reach agreement on data access with the data owner, decisions would need to be made on a case-by-case basis and we would need to discuss options with the applicant. We would accept a vertebrate study only if all options had been exhausted; I understand that this is the “last resort” principle.

My noble friend also talked about GMOs and contained use. We will not reduce standards and changes to legislation will follow the usual scrutiny and consultation.

The noble Baroness, Lady Parminter, talked about timescale changes and Article 37 of the CLP. This instrument amends the timescales put in place by the SI made in 2019 due to operational concerns raised since then. These amendments will ensure that the HSE has sufficient time to carry out its operational responsibilities. In addition, the current wording of the EU regulation states that decisions are taken “without undue delay”. However, those affected by regulatory decisions should be clear about when those decisions will take place. Therefore, our amendments specify that a decision is required within three months of a recommendation being made to Ministers and that, within one month of the decision, the HSE must update the GB MCL list.

The noble Baroness also asked about certainty for business. The decision to amend the timescales so that they are operationally deliverable was made under the advice of and after consultation with the specialist regulatory scientists in the HSE and the devolved Administrations. The system mirrors the EU system as much as possible so that the industry will be familiar with the assessment process.

The noble Baroness, Lady Parminter, also mentioned environmental assessment as part of the process. As part of the technical assessment, the HSE must look at the impact that a substance’s intrinsic hazards may have on environmental end-points. The HSE is supported by the Environment Agency in undertaking this work.

The noble Baroness, Lady Sherlock, and my noble friend Lady Altmann referred to unfettered access. The Government’s approach to unfettered access and the Northern Ireland protocol was set out in the main Command Paper and subsequent business guidance. This outlines that there will be some specific requirements for movements from Northern Ireland to GB for items categorised as highly regulated goods. Chemicals are highly regulated goods because they can pose a significant risk to human health and the environment.

The noble Baroness, Lady Sherlock, asked whether the Health and Safety Executive undertakes assessments for biocidal products during the 90-day period. All chemicals are highly regulated goods because they can pose a significant risk to human health and the environment. There is a transparency requirement for a Northern Ireland business to notify the Health and Safety Executive with information that it would submit to the EU before the biocidal product is placed on the market.

On the noble Baroness’s question about finances, I can confirm that, for the 2020-21 financial year, an additional £6.1 million was made available, with £1.6 million for the DWP and £4.5 million to help Defra to prepare for delivering the new chemicals framework. This represents a 60% increase on the 2019-20 financial year.

As many noble Lords will attest to, our chemicals sector is world-leading and vital for other key industries, such as the pharmaceutical, automotive and aerospace industries. We want to make sure that this continues. We also need to provide certainty for businesses in Northern Ireland to ensure both that the statute book is fully functional for the end of the year and that those businesses have unfettered access to the market in Great Britain. This instrument seeks to do that and meet our obligations under the protocol.

I am sure that noble Lords are all with me on the fact that we need to provide continuity and clarity to the chemicals industry following the end of the transition period. I want to ensure that legal requirements that apply in relation to chemicals regulations are clear and provide certainty to all. We must maintain our high level of protection in the workplace and for others, which this instrument will do.

I hope that I have covered all the points that were made. I will look at Hansard and, if there any points that I have not covered, I will make sure that noble Lords are written to.

Motion agreed.

Social Security Co-ordination (Revocation of Retained Direct EU Legislation and Related Amendments) (EU Exit) Regulations 2020

Baroness Stedman-Scott Excerpts

Wednesday 9th December 2020 Lords Chamber

Moved by

[Baroness Stedman-Scott]

That the draft Regulations laid before the House on 16 November be approved.

Considered in Grand Committee on 8 December.

Motion agreed.

Social Security Co-ordination (Revocation of Retained Direct EU Legislation and Related Amendments) (EU Exit) Regulations 2020

Baroness Stedman-Scott Excerpts

Tuesday 8th December 2020 Grand Committee

Moved by

[Baroness Stedman-Scott]

That the Grand Committee do consider the Social Security Co-ordination (Revocation of Retained Direct EU Legislation and Related Amendments) (EU Exit) Regulations 2020.

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

My Lords, these regulations, which concern policy areas of my department and Her Majesty’s Treasury, and apply UK-wide, were laid before both Houses on 16 November. They are required to clear the way for the legislation which will implement our new system of social security co-ordination with the EU, EEA states and Switzerland.

The current EU social security co-ordination regulations—I will refer to these as the SSC regulations—operate to facilitate the EU’s free movement rules. They ensure that individuals pay social security contributions in only one member state at a time; they set out which member state is responsible for the payment of social security benefits; they require the export of some benefits to claimants resident in the EU; and they provide for the aggregation of social security contributions when claiming certain benefits and the state pension. These rules require equal treatment for citizens across the EU, overriding any domestic legislation. They have continued to apply to the UK throughout the transition period.

As the Committee will be aware, the Immigration and Social Security Co-ordination (EU Withdrawal) Act came into force on 11 November 2020, Section 6 of which provides a power to modify these SSC regulations, which have been retained in UK law. Before I go into the detail of the draft regulations, I will provide the Committee further details on the context in which they are being made. I hope noble Lords will forgive the lack of originality in what I am about to say, which is very similar to the update provided by the Minister in the other place yesterday.

As I have stressed to your Lordships on a number of occasions, citizens covered by the withdrawal agreement and related agreements with the EEA and Switzerland will be unaffected by these regulations as long as they remain covered by those agreements. Arrangements in this area for UK and Irish nationals moving between the UK and Ireland will also continue unchanged under a recent reciprocal agreement with Ireland.

The Government are negotiating future arrangements with the EU, similar in kind to the social security relationships the UK has with nations outside the EU. This means that there will be changes in social security co-ordination policy with the EU from the end of the transition period, regardless of the outcome of negotiations. The Government have been clear about this, including as the ISSC Bill passed through Parliament and in public communications.

As the Committee will be aware, negotiations with the EU are at a very advanced stage. It is the Government’s position that new rules, whether or not there is a future agreement, should take effect from the end of the transition period. These regulations are a core part of our legislative preparation and will stand whatever the outcome. We are also in discussions on future social security co-ordination rules with a number of EEA states and Switzerland.

I will now summarise the regulations we are debating today. Part 1 sets out that the regulations come into force at the end of the transition period, with the exception of some amendments being remade in Part 4. These amendments will come into force on the day after the day on which the regulations are made.

Part 2 revokes the EU SSC regulations retained under Section 3 of the European Union (Withdrawal) Act 2018 and the unilateral fixing statutory instruments made under Section 8 of that Act. The fixing SIs were brought forward to prepare for a scenario in which the UK did not leave the EU with a withdrawal agreement and would have enabled the UK to operate some of the retained SSC regulations unilaterally, so far as possible. This revocation is in line with the approach the Government set out in the draft illustrative regulations shared with the House during the passage of the ISSC Bill.

This means that the rules for those individuals who are not covered by the withdrawal agreement and move between the UK and the EU, EEA states and Switzerland after the end of the transition period will be determined by any new international agreements in place or, in the absence of an international agreement, the respective domestic law in each country. For UK benefits this means, for example, that the UK will no longer export child benefit to children living in the EU, with the exception of Ireland, delivering on the manifesto commitment. For national insurance contributions this means that, where no reciprocal agreement applies, the rules on payment of national insurance contributions for individuals moving between the UK and the EU, the EEA and Switzerland will be the same as the rules for the rest of the world.

These regulations make four limited savings from the general revocation of the retained SSC regulations in Part 3. First, they save the retained SSC regulations on the co-ordination of benefits in kind; namely, health- care, which is a policy competence of the Department of Health and Social Care. DHSC has made separate secondary legislation in respect of the reciprocal healthcare aspects of the retained SSC regulations.

Secondly, they save the existing debt recovery provisions which will enable the UK to collect overpaid HMRC benefits and social security contributions on behalf of a foreign social security authority where the individual or employer is present in the UK, as part of a reciprocal agreement on social security. Full details of the specifics of these provisions have also been set out in public correspondence.

Thirdly, they save the retained SSC regulations to the extent necessary to provide for continued operation of the agreement on social security between the Governments of the UK and Gibraltar. I can confirm that it is the intention of the UK and Gibraltar Governments to agree a new relationship not based on the EU SSC regulations. Once that has been implemented, this saving will no longer be required and will later be revoked.

Fourthly, they save provisions relating to aggregation and uprating of the state pension in the absence of agreements being in place with the EU, EEA states and Switzerland by the end of the transition period. This saving will provide for continued state pension aggregation and uprating in those countries up to the end of the financial year 2021-22. In the absence of a future agreement with the EU, the UK would seek to put in place reciprocal agreements on social security with individual EU countries instead; even where such negotiations are progressing well, the saving may be needed for a short period beyond March 2022 to finalise and implement bilateral agreements. For this reason, the saving is not time limited. However, it is a strictly interim measure targeted at those who move to the EU, the EEA and Switzerland after the transition period, while future arrangements are put on a reciprocal footing.

Part 4 makes related amendments in other EU exit legislation. This includes bringing forward the day on which amendments will be made to Section 179 of the Social Security Administration Act 1992 and the equivalent Northern Ireland Act. These amendments were previously made by the Social Security (Amendment) (EU Exit) Regulations 2019 and the equivalent Northern Ireland regulations, which are not revoked by this instrument. These amendments were otherwise due to come into effect at the end of the transition period.

While the UK has left the EU, we are not leaving the European Convention on Human Rights; in my view the provisions of the Social Security Co-ordination (Revocation of Retained Direct EU Legislation and Related Amendments) (EU Exit) Regulations 2020 are compatible with the convention.

In summary, these regulations make changes to prepare the statute book for the end of the transition period, particularly in relation to preventing the unilateral export of benefits, delivering on the manifesto commitment to prevent people claiming child benefit for children living outside the UK. They also ensure that the Government have the option to make a future social security co-ordination agreement with the EU through an Order in Council before the end of the transition period, should this be needed. I beg to move.

[The Deputy Speaker (Lord Duncan of Springbank) (Con)]

My Lords, for the information of those on remote calls, the first 90 seconds of the Minister’s speech were lost, but I think the gist of the speech was contained. If there are any particular issues that noble Lords wish to tease out during the questioning, I am sure the Minister will be happy to respond in her summing up. I call the first speaker, the noble Baroness, Lady Ludford. I understand she is having technical difficulties, so we will come back to her. We move on to the noble Lord, Lord Bhatia.

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[Baroness Stedman-Scott (Con)]

I thank the noble Baronesses, Lady Sherlock, Lady Ludford and Lady Janke, and the noble Lord, Lord Bhatia, for their contributions.

The noble Baroness, Lady Sherlock asked about process and timing. I recognise that it is late in the transition period, but that is the nature of EU negotiations. Good progress has been made in this area, and we hope to get the deal over the line. The Government are prepared for all outcomes and have been communicating to citizens the importance of being prepared for rules in this area to change, in all scenarios.

While I acknowledge the points on the timing of the process, I have set out the baseline provisions that will apply on the state pension and national insurance contributions. There will be no unilateral measures in relation to other benefits where long-standing domestic rules do not already provide for this. These affirmative resolution regulations offer an opportunity for the House to scrutinise and approve the baseline that would apply in the absence of future agreement. The Government’s position is that it would not be appropriate to continue unilaterally to operate EU rules after we have left the EU and the transition period ends, in doing so creating different dates of change, additional cohorts and complexity for staff and citizens.

The noble Baroness, Lady Janke, talked about plans for bilateral agreements. As I set out, the Government would seek to put in place reciprocal agreements with member states swiftly if no agreement can be reached with the EU. As the Minister in the other place set out, securing reciprocal provisions on the state pension and national insurance contributions are priority areas for the DWP and HMRC but cannot be effectively operated on a unilateral basis. We would prefer a single deal with the EU, of course.

The noble Baroness, Lady Sherlock, asked how the future agreement would be implemented. The mechanism by which any future agreement will be implemented in the various circumstances we could yet find ourselves in remains under review. These regulations ensure—this is a point that the noble Baroness, Lady Ludford, raised—that the Government can use existing powers for this purpose between now and the end of the year, should this be required.

We expect a number of social security benefits to no longer be exportable to the EU in future; this is in line with long-standing UK policy on certain benefits. Certain benefits, such as disability and unemployment benefits, are not exportable when an individual permanently leaves the UK even when there is a social security agreement in place, and in line with communications which the Government published on GOV.UK before the summer.

The noble Lord, Lord Bhatia, and the noble Baronesses, Lady Sherlock and Lady Janke, raised the subject of impacts. As the Minister said in the other place yesterday, the Government remain committed to publishing an updated impact assessment once the outcome of negotiations is known. I can confirm that those impact assessments will be brought forward. Those covered by the withdrawal agreement are not impacted by this instrument. The measure does not impose any costs on business and ensures that once the SSC rules cease to apply between the UK and the EU, businesses can apply the standard rest of the world rules for national insurance where there is no reciprocal agreement.

The noble Baroness, Lady Sherlock, raised the question of students. The Government have provided guidance to all UK universities via Universities UK to make them aware of the need to communicate to EU students who have moved to start their courses in person in the UK by the end of the transition period that they will need to apply under the points-based immigration system. They will not be covered by the withdrawal agreement’s provisions on social security co-ordination and will be subject to any new reciprocal agreement with the EU or any individual member states.

The noble Baroness, Lady Sherlock, also asked about Gibraltar. I can confirm that the Government will seek a bilateral agreement with Gibraltar similar in kind to that agreed with Ireland.

The noble Baronesses, Lady Sherlock and Lady Janke, raised the issue of healthcare. While that is a matter for the Department of Health and Social Care and not in scope of these regulations, the Government will assess their options for reciprocal healthcare if we do not achieve an EU-wide agreement. The Department of Health and Social Care is aware of the concerns of people with pre-existing health conditions and is carefully looking to the impact of any loss of necessary healthcare provisions.

On matters of governance, the UK’s proposed legal text, published in May, contains provisions on dispute resolution, data sharing and administrative co-operation between social security authorities. As is standard practice in international social security arrangements, we have been clear when it comes to future arrangements that there should be no CJEU oversight. We remain in close collaborative discussion with member states in this area through the administrative commission, which the UK continues to attend and will continue to attend in an observer capacity.

These regulations are an essential part of the legislative programme and have been laid in preparation for the end of the transition period, as we reset our relationship with the EU. Not proceeding with this legislation would result in the UK unilaterally operating EU rules after the end of the transition period, regardless of the negotiations. For the reasons I have set out, that would not be desirable.

The noble Baroness, Lady Sherlock, asked what would happen if there was no deal. If a British pensioner moves to the EU, the EEA or Switzerland in January 2021, their state pension will be uprated in April 2021. She also raised the issue of double contributions. On social security contributions, the standard rest of the world rules limit the possibility of UK-based employees working overseas and their employers being required to pay social security contributions in two countries at the same time to 52 weeks, while ensuring that they avoid creating gaps in their national insurance record in the UK for short periods of work overseas.

The noble Baroness, Lady Janke, raised the use of delegated powers. During the passage of the parent Act, I set out the exceptional circumstances under which we are operating, and shared draft illustrative regulations for scrutiny at that stage.

The noble Baroness, Lady Ludford, talked about the primary purpose of the amendments for the 1992 Act being to provide powers to conclude an agreement with the EU. She asked whether we would need the revoked provisions again. No, we are saving the only provisions that we may need to rely on.

The noble Baroness asked what a deal would contain. We have set out our approach to negotiations and have been negotiating in line with that. In particular, we are seeking arrangements on state pension and national insurance contributions.

On the issue of consultation, the UK has left the EU and the Government have acted in response to the manifesto commitment to end free movement. The SSC regulations facilitate free movement between member states of the EU on a reciprocal basis. The Government have repeatedly set out an approach to seeking a deal with the EU in this area to reflect the agreements that we have with countries outside the EU. There have been a number of publications to this effect, including our approach to negotiations published on 27 February. The UK has a long-standing policy in relation to the exportability of benefits, and negotiations with the EU have been consistent with that policy.

I thank again all noble Lords for their contributions to the debate on this SI. We will look at Hansard and make sure that we have answered all questions. If we have not, we will write to noble Lords—and, in that instance, I beg to move.

Motion agreed.

Arcadia Pension Fund

Baroness Stedman-Scott Excerpts

Tuesday 8th December 2020 Lords Chamber

[Baroness Drake]

To ask Her Majesty’s Government what steps they are taking to ensure that the Arcadia pension fund receives all of the contributions and assets agreed between its owners, any trustees and The Pension Regulator.

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

As Arcadia has now gone into administration, the Pension Protection Fund, working with the Pensions Regulator, will now act in place of the trustees and will negotiate on behalf of the scheme to ensure that it is treated fairly compared to other creditors and gets what it is due. If the regulator thinks there has been wrongdoing, it may also be able to use its anti-avoidance powers to get redress.

[Baroness Drake (Lab) [V]]

I thank the Minister for her reply, but it gives little assurance on the £210 million of security agreed with Arcadia getting to the actual schemes. Covid has a major impact, yet large pension deficits have not just built up over the past nine months but over years, and there will be other companies who took out dividends and assets to a value much greater than deficit recovery payments made, leaving their pension schemes more vulnerable than they should be. Will the Government consider urgent amendments to the Companies Act so that directors’ duties to shareholders are subject to a responsibility to repair deficits to pension schemes? We will otherwise have endless cases such as Arcadia recurring.

--- Later in debate ---

[Baroness Stedman-Scott (Con)]

I will need to take the issue relating to the Companies Act back to colleagues at BEIS, but we have the Pension Schemes Bill going through the House at the moment. There will be powers to ensure that we hold pension trustees to account, and I am sure that that will make a huge difference.

[Lord Young of Cookham (Con)]

My Lords, further to the point made by the noble Baroness, Lady Drake, about the deficits facing more and more pension funds, should we ask why they are being forced by regulation to invest more and more into government gilt-edged securities, which now have negative returns and are therefore guaranteed to lose pensioners money? Should we not instead be encouraging pension funds to invest in infrastructure, social housing and green projects to generate jobs, prosperity and growth?

[Noble Lords]

Hear, hear.

[Baroness Stedman-Scott (Con)]

My noble friend is not alone, as witnessed by the endorsement of his points on how pension schemes should invest their money. However, the accounting standards ensure that a standard, objective measure applies to pension liabilities on company balance sheets. This is very different to the role of trustees when deciding on an investment strategy. It is up to trustees to have an investment strategy that suits the specific nature of their schemes. While gilts and bonds have lower returns, they are much less volatile than equity and can be useful as part of a diverse investment portfolio.

[Lord Empey (UUP) [V]]

My noble friend will be aware that the high street has been under pressure for a long time. We also know that Philip Green has form when it comes to pensions. There will be great disquiet at the fact that this deficit has been allowed to build up. Can my noble friend give me a sense of the Government’s liabilities in this regard? What steps we are going to take to ensure that these funds are not again left in a vulnerable position, when we know well in advance that sectors are in severe difficulty?

[Baroness Stedman-Scott (Con)]

There is no government liability, as the Pension Protection Fund is funded by the assets taken into it from schemes, topped up by a levy on eligible schemes. The PPF plans for the long term and, as at 31 March 2020, it had a healthy reserve of more than £6 billion.

[Lord Davies of Brixton (Lab)]

The Minister correctly highlights the role of the Pension Protection Fund, and the employees of Arcadia can take some comfort from that. The problem is that the protection afforded by the fund is incomplete. To lose your job is bad enough; to lose part of your pension as well piles injury on injury. Can the Minister tell us what consideration is being given to improving the level of protection provided by the PPF?

[Baroness Stedman-Scott (Con)]

First, the noble Lord makes a good point about people losing their jobs, and I want to give absolute comfort to the whole House that the Department for Work and Pensions, through the rapid response team, stands ready to do all it can to help people in this very difficult time. On the second part of his question, we are doing as much as we can at the moment to help companies—through the Pensions Regulator and the Pension Protection Fund—to protect their assets and ensure that trustees act honourably in their duties.

[Lord Fox (LD)]

In answer to a similar question from me last week, the noble Baroness, Lady Bloomfield of Hinton Waldrist, said:

“Where there is evidence of bad practice, it is taken up through the relevant authorities.”—Official Report, 3/12/20; col. 835.]


Does the Minister agree that the Green family paying itself more than £1 billion while the pension fund is depleted of the money it needs is bad behaviour? If so, are the Government really satisfied that the Pensions Regulator has enough power to deal with those sorts of owners of those sorts of companies?

[Baroness Stedman-Scott (Con)]

I understand the noble Lord’s point and the spirit in which he makes it, but it would be inappropriate for Ministers to comment at this stage on this individual case. It is too early to know the position of the pension scheme—whether there is a deficit or how big it is—and, indeed, whether anybody has behaved inappropriately. We need to let the Pension Protection Fund and the Pensions Regulator do their job. If there is any cause for concern, they have a range of powers which they will use.

[Baroness Sherlock (Lab) [V]]

My Lords, many Arcadia pension scheme members are facing possible job loss and uncertainty, which are the perfect conditions for scammers to exploit anxious people who are looking to access their pension savings. The experience of too many British Steel workers stands as a warning. Once savings are transferred out of the pension scheme, there is no way back and access to the PPF is gone. What active steps will the Government take to apply the lessons of the Rookes review to ensure that Arcadia scheme members are not exposed to financial advisers who may provide poor advice, nor persuaded to put their savings in the hands of fraudsters?

[Baroness Stedman-Scott (Con)]

As always, the noble Baroness raises an important point for people who are in difficult positions. Since January 2018, following its work on the British Steel pension scheme, the Financial Conduct Authority has been working closely with the Pensions Regulator and the Money and Pensions Service to ensure that they monitor pension transfer activity in defined benefit pension schemes that may be subject to increased transfer activity. The three organisations have increased the frequency of their meetings during Covid-19 to consider schemes at risk of higher transfer activity.

[Lord Blencathra (Con)]

My Lords, let us be blunt. Debenhams collapsed after three ruthless vulture funds loaded it with debt and then cleaned it out to the tune of £1.2 billion in dividends. Arcadia was legally robbed by the Greens to the tune of another £1.2 billion in dividends. In the United States, the regulator would have gotten back every cent and they would all be serving life without parole. When are we in this country going to get some proper regulation and legislation to tackle people whose behaviour is de facto criminal, but at the moment technically legally okay?

[Baroness Stedman-Scott (Con)]

I and the whole House absolutely agree that we need to ensure our legislation can deal with those who would plunder pension schemes. That is why we currently have a Pension Schemes Bill going through Parliament. Let me be clear. Where there is mishandling of a pension scheme, the Bill extends the Pensions Regulator’s sanction regime, introducing the power to issue civil penalties of up to £1 million and three new criminal offences, including a new sentence of up to seven years in prison for bosses who run pension schemes into the ground or plunder them to line their own pockets.

[Lord McKenzie of Luton (Lab) [V]]

My Lords, we have just heard about the Pension Schemes Bill and its provisions. When will the new routes to contribution notices, new criminal offences and new information-gathering powers that the Bill makes available to the regulator be available? When the Bill comes into effect, will they be retrospective?

[Baroness Stedman-Scott (Con)]

To give the noble Lord a correct answer, I will need to go back to the department, especially on retrospective issues, and write to him. I will make the answer available to all noble Lords.

[Lord Goddard of Stockport (LD) [V]]

I noticed that the Minister said that the Government had no liability, and she mentioned the word “honourable” in almost the same sentence. Does she agree that that is cold comfort for the 12,000 people who will have a terrible Christmas? She should perhaps contact the Prime Minister and try to get Philip Green’s knighthood revoked because he is clearly less than an honourable man.

[Baroness Stedman-Scott (Con)]

It would not be right for me to comment on individual cases, as I have already said. However, I should point out that a clear, independent process is in place for the forfeiture of an honour, and the final decision on whether to revoke one is made by an independent committee.

[The Lord Speaker (Lord Fowler)]

My Lords, the time allowed for this Question has elapsed, which brings an end to Question Time.

Universal Credit

Baroness Stedman-Scott Excerpts

Tuesday 1st December 2020 Lords Chamber

[Baroness Donaghy]

To ask Her Majesty’s Government what assessment they have made of the impact on families of not maintaining the £1,000 uplift of Universal Credit.

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

My Lords, the Government have introduced a raft of temporary measures to support those hardest hit, including the furlough scheme, the Self-employment Income Support Scheme and the £20 UC uplift. With the uplift confirmed until the end of March 2021, my right honourable friend the Chancellor of the Exchequer set out last week why it is right that we wait for more clarity on the national economic and social picture before he decides on the best way to support low- income families from 1 April. I stress to the House that discussions are very much ongoing with Her Majesty’s Treasury.

[Baroness Donaghy (Lab) [V]]

If those who lost their jobs last April could not be expected to live on £73 a week, will the Minister explain why it is enough for people losing their jobs next April? There is overwhelming support for the £20 uplift for the poorest families in the country. Why are the Government changing the rules in the middle of a pandemic and a recession? How will they address children going hungry?

[Baroness Stedman-Scott (Con)]

I understand the noble Baroness’s concern over those hardest hit by the pandemic, especially their income, but it is not right to say that we are changing course. All we are confirming at the moment, as the Chancellor of the Exchequer set out last week, is that we wait for more clarity on the national economic and social picture before making the decision on the best way to support low-income families.

[The Lord Speaker (Lord Fowler)]

I call the noble Lord, Lord Monks. No? Then I call the noble Lord, Lord Taylor of Goss Moor.

--- Later in debate ---

[Lord Taylor of Goss Moor (LD) [V]]

I welcome the fact that the Minister has stressed that this is under current review, because if these payments are not maintained at a time when we can see what is happening in many low-paid jobs—even today in retail in particular —the evidence is that half a million more people will go into deep poverty and more than that will be brought into poverty. There is some urgency though, because people need to know where they stand as they see debts building up and struggle to take themselves through Christmas, so I hope that Ministers will take an early decision on this and not wait till the last minute.

[Baroness Stedman-Scott (Con)]

I note the point about the timing of any decision, but that is with my friend in the other place, the Chancellor of the Exchequer. The Government are redoubling and trebling our efforts for those people who have found themselves in difficulty, including the people from Debenhams and Arcadia who are concerned for their futures, to get people back to work. We are completely focused on it. We have doubled the number of work coaches; we have Kickstart; we have the youth offer; we have sector-based work academies; and the Jobcentre Plus staff, the work coaches and the employment teams are engaging with employers to make sure that we have every vacancy we can get and we get people back to work as quickly as we can.

[Lord Farmer (Con) [V]]

My Lords, we should keep at the forefront of our thinking that universal credit was designed not to trap people in benefits dependency but to give them every help and incentive to get back into work. This has perhaps never been more important, both for individual morale and to enable economic recovery. What is the DWP doing to support people to get back into employment and enable the economy to recover from the financial impact of Covid?

[Baroness Stedman-Scott (Con)]

I thank my noble friend for reminding us about the principles of universal credit and, at the same time, of the difficult circumstances that people find themselves in. I stress again that we are providing help through dedicated work coaches and engagement with employers. We are supporting people back into work in a whole host of ways, not least the 250,000 green jobs that we want to create. We do not want to trap people on benefits; we want to help them.

[Baroness Boycott (CB)]

My Lords, I declare my interest as the chair of Feeding Britain. We estimate that if this £20-a-week lifeline is pulled, up to 700,000 people will be pushed into poverty, including 300,000 kids. The NHS is creaking at the seams, but so is the food bank system that has become so endemic in our country. If the Government are taking this money away, what plan do they have to ensure that hungry kids get enough to eat?

[Baroness Stedman-Scott (Con)]

At the risk of repeating myself, I say that we are waiting for the Chancellor to assess the situation before making a decision about how best to support low-income families. As for what we are doing for children, there are free school meal vouchers and we are providing £16 million for food charities to get food to those who are struggling and 4.5 million food boxes for vulnerable people. We are expanding free school meals, establishing a new £1 billion fund to create more high-quality, affordable childcare and putting £35 million into the national school breakfast programme. We are not taking our foot off the accelerator on any support we give.

[Baroness Sherlock (Lab) [V]]

My Lords, I watched the BBC news report from Burnley last night and I am not ashamed to say that I cried through it. It showed children so hungry that they were ripping open bags of donated food before they hit the floor. There was a vicar sobbing at the level of need around him. People are desperate, so I ask the Minister: has the DWP modelled the impact of cutting £1,000 from the incomes of 6 million families in the middle of a pandemic and a recession, when unemployment is still rising? Will she join me in meeting people who are providing food on the front line to poor communities, so that we can both hear what they really need from their Government?

[Baroness Stedman-Scott (Con)]

First, I affirm that, as always, I am very happy to meet people, as the noble Baroness suggested. The Chancellor has said that, once we have a better understanding of the impact of the £20 uplift on the social and economic situation, he will make his assessment and decide what to do.

[Baroness Fookes (Con)]

My Lords, given that people with disabilities have had a particularly tough time during the pandemic, can my noble friend say whether any additional support is given to that group?

[Baroness Stedman-Scott (Con)]

I can confirm that the DWP continues to support vulnerable groups, such as people with disabilities, through a series of safeguards and easements aimed at simplifying and improving their interaction with the benefits system. For ESA claimants, we have launched the New Style ESA online portal, which allows the majority of people who need to claim to do so online. Everyone infected with Covid-19 or required to self-isolate in line with government guidelines will be treated as having limited capability for work in ESA, without the requirement for fit notes or a work capability assessment.

[Baroness Meacher (CB) [V]]

My Lords, will the Minister consider the plight of families thrown into unemployment because of the pandemic who are subject to the cap? My understanding is that these families have not benefited from the £20 uplift to universal credit. They have very little—perhaps a few pounds a week—once they have paid their rent. Would it not be fair to raise the level of the cap by £20 a week to try to help these desperately needy families?

[Baroness Stedman-Scott (Con)]

The Government believe that the benefit cap restores fairness between those receiving out-of-work benefits and taxpayers in employment. The noble Baroness raises an important issue that we should continue to consider, but we ought also to consider that the benefit cap statistics that have come out and show an increase in the number of people impacted are unacceptable, but also not surprising when we have a 600% increase in the number of those who have gone on to universal credit. We have also increased the local housing allowance rates.

Social Security (Up-rating of Benefits) Bill

Baroness Stedman-Scott Excerpts

3rd reading & Report stage & 3rd reading (Hansard) & 3rd reading (Hansard): House of Lords & Report stage (Hansard) & Report stage (Hansard): House of Lords
Tuesday 17th November 2020 Lords Chamber

Moved by

[Baroness Stedman-Scott]

That the Bill do now pass.

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

My Lords, in moving this Motion, I would like to confirm how pleased I am to have introduced the Social Security (Up-rating of Benefits) Bill into this House. I thank all noble Lords for their positive engagement and the feedback that they have provided thus far. I thank in particular the noble Lords, Lord Addington, Lord Randall and Lord Shipley¸ and the noble Baronesses, Lady Sherlock and Lady Janke, for their constructive contributions. I also thank the officials on the Bill team for their tireless work in helping all of us see the Bill proceed in a proper manner and to have the information needed.

The Bill reflects the Government’s commitment to maintaining the income of pensioners in these difficult times. It allows for the uprating of the safety net in pension credit and of widows’ and widowers’ benefits in industrial death benefit. I am grateful, too, to noble Lords for ensuring that the Bill will be passed in time to receive Royal Assent before the Work and Pensions Secretary must conclude her uprating review of benefits and pensions. In doing so, the state pension and pension credit standard minimum guarantee can and will be uprated next year. I beg to move.

[Baroness Sherlock (Lab) [V]]

My Lords, I thank the Minister for her remarks. As I made clear at the outset, we support the Bill, while deeply regretting the economic circumstances that have made it necessary. During its brief passage, some important issues have been raised. I hope the Government have taken note of those issues and will apply themselves to them in the near future. During our consideration of the Bill many noble Lords raised the question of support for those of working age. I keep hoping that we will hear some good news on that—especially on universal credit and other working-age benefits—soon.

We have had some really interesting discussions about the difficult and growing issue of pensioner poverty. We now have 1.9 million pensioners living in relative poverty and the Government need to develop and implement a strategy for tackling pensioner poverty. That will require a proactive plan to boost take-up of pension credit. I regret that I was unable to attend the rearranged meeting with the Pensions Minister on this matter but I look forward to hearing what went on there. At the moment, four out of 10 eligible pensioners do not claim it, so they are missing out on that and on other benefits, including, increasingly, free TV licences for the over-75s.

Then there is the fact that the triple lock does not apply to pension credit. The Minister said in her opening remarks that there will be an uprating to the standard minimum guarantee in pension credit but I did not catch whether she said by how much. In Committee she told my noble friend Lady Drake that she would write to her to tell her whether the Government intend to pass through the triple-lock payment to pensioners on pension credit—which is of course crucial, because if they do not, the richest pensioners will get the full benefit of the triple lock but the poorest will not because it will be clawed back from pension credit. Can she clarify the position on that? If she has written to my noble friend Lady Drake, I apologise; I have missed the letter.

I am very glad that we were able to get the Bill through the House in good time. It was a pleasure to welcome two maiden speakers in Committee: the noble Lord, Lord Field of Birkenhead, and the noble Baroness, Lady Stuart of Edgbaston. I would like to express my thanks to the Minister and her officials who have met us and answered questions; it is a very co-operative department and I am very grateful. I thank colleagues across the House for their thoughtful contributions; Dan Stevens of our staff team for his support with the Bill; and the House officials and the broadcast team.

Pensioners deserve to spend their retirement in financial security. This Bill will enable the Government to fulfil their manifesto commitment to apply the triple lock to the state pension and we have been pleased to support it.

[Baroness Meacher (CB)]

My Lords, it is a privilege to have been asked to make the Cross-Bench concluding contribution at the end of our consideration of the Social Security (Up-rating of Benefits) Bill.

In Committee a number of noble Lords raised concerns about the level of pensioner poverty, most notably the noble Baroness, Lady Sherlock, and I very much support their comments; but others of us wanted some reassurance that while working people are experiencing job losses on a massive scale and abject poverty—often facing homelessness—many pensioners, including me I suppose, are in a much more secure position and should not be given disproportionate support. Those sentiments certainly do not apply at all to people on pension credit. I was delighted to hear—the Minister might be able to give us some figures—about the increase in the take-up of pension credit. That is at least a start. Like the noble Baroness, Lady Sherlock, I would certainly like to hear an assurance that pension credit will in fact be protected by the triple lock. I think that these pensioners and other subgroups mentioned by the Minister are in a very particular position and that any support that can be given should be given.

The other issue referred to by a number of noble Lords is the number of pensioners living in what I shall call unprotected countries abroad who have had their pensions frozen, often for many years, and find themselves in 2020 still living off something like £5 a week—serious, abject poverty. I hope the Government will give attention to that issue and also the other issues that noble Lords raised in Committee.

The noble Baroness, Lady Sherlock, as always, made a number of very powerful points. Importantly, she sought reports on current levels of pensioner poverty. I hope we will perhaps have a report on pensioner poverty shortly. She was also looking for an impact assessment of the Government’s policy options. I am not sure whether we have had a commitment on that or not.

In conclusion, there was general acceptance of the thrust of this Bill, and no amendments were pressed to a vote. I want to thank the noble Baroness, Lady Stedman-Scott, for her cheerful and always courteous responses to our pleas and questions, which she always gives with a smile, which is quite disarming at times. Also, a big thank you to the Bill team, which, as always, makes sure our deliberations and debates are meaningful.

[Baroness Stedman-Scott (Con)]

First, I thank all noble Lords for their contributions, which were valid and important. On the working-age benefits, as raised by all contributors, as soon as the Secretary of State has completed the review, Parliament will be advised of the outcome. I am glad the noble Baroness, Lady Janke, was with us yesterday for our pension credit meeting and our robust and creative discussion about increasing take-up. It was probably one of the best meetings I have been in since becoming a Minister. I am sorry the noble Baroness, Lady Sherlock, could not be with us, but my office did advise me prior to coming to the Chamber that it is finalising the read-out; I think she will be pleased with the actions we have agreed.

In respect of the letter to the noble Baroness, Lady Drake, I was sure that had been sent, but let me go back to my department, double-check and confirm that to the noble Baroness.

Regarding the potential for uprating the standard minimum guarantee, it is right that we protect the incomes of the poorest pensioner households in receipt of it. A decision on how to uprate it next April will be made in the review the Secretary of State is carrying out. It will be announced this month, and we will wait to see what the outcome is and report it to Parliament, as I have already said.

The Government are committed to action to alleviate levels of pensioner poverty. For current pensioners, this includes the contributions of the triple lock, the new state pension and pension credit.

As I have already said, the Bill reflects the Government’s commitment to maintaining the income of pensioners in these difficult times. I am grateful to noble Lords for ensuring that it will be passed in time to receive Royal Assent before the Work and Pensions Secretary must conclude her uprating review of benefits and pensions. In doing so, the state pension and pension credit standard minimum guarantee can and will be uprated next year.

I commend the Bill to the House.

Bill passed.

Universal Credit

Baroness Stedman-Scott Excerpts

Thursday 12th November 2020 Lords Chamber

[Lord Woolley of Woodford]

To ask Her Majesty’s Government what plans they have to maintain the £20 a week increase in Universal Credit (1) for the duration of, and (2) after, the COVID-19 pandemic.

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

We are having ongoing discussions with the Treasury on the best ways to support people through Covid-19 and beyond. We will of course update Parliament on any future decisions on benefit spending when they are made. Claimants can be assured, though, that the Government are fully committed to supporting those who rely on the welfare system and to ensuring it continues to provide a safety net to those who need it.

[Lord Woolley of Woodford (CB) [V]]

My Lords, I thank the Government for extending the £20 universal credit increase and getting behind—even turbocharging —Marcus Rashford’s initiative to feed poorer children, many of whom will be black, Asian or minority ethnic. Does the Minister agree with me and the organisation Action for Children about the urgent need to develop and implement a UK-wide child poverty strategy that sets targets for its reduction and eradication?

[Baroness Stedman-Scott (Con)]

The noble Lord’s acknowledgement of the Government’s activities in this field is appreciated. We are very pleased that we have been able to implement our latest package and we acknowledge Marcus Rashford’s passion and commitment, which the Government share. I will need to take the strategy the noble Lord raised back to the department. That is not me trying to avoid the issue; I will do that, and I will come back to the noble Lord in writing.

[The Lord Bishop of Durham [V]]

Families in receipt of legacy benefits, such as employment and support allowance, did not benefit from the very welcome £20 a week uplift in benefits. These people are just as likely to be affected by the financial impact of the Covid-19 pandemic and include many disabled people. Will the Government extend the increase in benefits to include those in receipt of legacy benefits, as recommended by the Joseph Rowntree Foundation’s Keep the Lifeline campaign?

[Baroness Stedman-Scott (Con)]

The right revered Prelate raises an issue that many people are raising. The answer I have, in the politest terms, is that we have no plans to increase legacy benefits further. They were increased by 1.7% in April 2020 as part of the annual uprating exercise.

[Baroness Fookes (Con)]

My Lords, in addition to those receiving universal credit, many more are in work but on very low earnings—all credit to them. Are the Government able to give any help to them?

[Baroness Stedman-Scott (Con)]

The Government recently increased the national living wage to £8.72 per hour, which means the annual earnings of a full-time worker on the national living wage have increased by nearly £3,700 since 2016. The Spring Budget confirmed a tax cut for 31 million working people, and other tax changes make basic rate taxpayers over £1,200 better off. We have been able to extend the holiday activities and food programme with £220 million, and the Covid winter grant scheme has £170 million, so be in no doubt: the Government do care and do take action.

[The Earl of Clancarty (CB)]

My Lords, every citizen, whether in paid work or not, deserves an income that allows a decent standard of living. We should not be permitting a system where discomfort and, indeed, poverty are built in. You cannot live on the standard allowance—no one can—and that is apart from delays in payment. How can the Minister possibly defend universal credit, even as a viable safety net, when demand for food banks is at a record high and homelessness is rapidly rising, even with the extra £20 a week?

[Baroness Stedman-Scott (Con)]

I understand the noble Earl’s point, but as I said, we have put out a raft of additional support. I could read it out, but it would take the whole 10 minutes, if not longer. I understand his point, but the Government are taking action to make life better for people.

[Lord Young of Norwood Green (Lab) [V]]

My Lords, I thank the Minister for recognising the important contribution of the £20 a week increase. Does she also recognise that the increase in housing benefit rates has made a significant contribution to reducing poverty? Does she agree that we should recognise the contribution made by the key workers in the DWP? The case managers, job coaches and all the staff have coped with a 600% increase in universal credit claimants since March, of which there are now 8.2 million. We should also recognise the contribution of its chief executive, Neil Couling, who has given dedicated and inspirational leadership to ensure a successful digitalisation programme which enabled the DWP to cope with the massive increase in claimants.

[Baroness Stedman-Scott (Con)]

The noble Lord acknowledges the significant increase in universal credit claimants, and I understand the importance of the issues he raises. He also acknowledged the key people at the DWP, not least Neil Couling and the whole executive team that works with him, who have done a sterling job and will continue to do so.

[Baroness Janke (LD) [V]]

I, like other noble Lords, welcome the retention of the £20 a week increase, which will indeed help many people. However, is the Minister aware of the report by the charity Scope on disability and the coronavirus, which found that many disabled people are feeling forgotten and experiencing isolation, a lack of access to basic essentials, delays in receiving benefits and medical care, and poor access to care and support? Will she assure us that the Government will meet with disability charities to ensure that all people with disabilities, and their families, receive the care and support they need during the coronavirus? Will she report back to Parliament on this?

[Baroness Stedman-Scott (Con)]

The noble Baroness is absolutely right to raise the issue of disabled people and the challenges they face. The noble Baroness will also know that my natural way of working is to agree to these things and to report back. The only thing I can offer her today is that I will talk to the Minister for Disabled People and let him know what it is she would like to do. I will report back to her.

[Baroness Wyld (Con) [V]]

My Lords, I too welcome and acknowledge all the support measures the Government have put in place, but can my noble friend say a little more about the evidence base? How are the Government assessing whether the measures they have taken are having the desired impact among families on the lowest incomes?

[Baroness Stedman-Scott (Con)]

The noble Baroness raises the important issue of evidence. Analysis shows that the Government’s interventions have supported the poorest working households, as a proportion of February income, the most, with those in the bottom 10% of the income distribution seeing no reduction in their income.

[Baroness Sherlock (Lab) [V]]

My Lords, because the £20 uplift was not extended to legacy benefits, an adult on universal credit is given £94 a week to live on but her neighbour on JSA or ESA gets just £74 a week. The Minister told the right reverend Prelate the Bishop of Durham that there were no plans to change this, but she did not tell him why. Could she please explain to the House and the 2 million people on JSA and ESA why they do not deserve the same help when their food and bills cost every bit as much as those for people on universal credit?

[Baroness Stedman-Scott (Con)]

I note the point that the noble Baroness makes and it is well made, but as I said, the Government’s position is that we have no plans to increase legacy benefits further. People on legacy benefits can transfer to universal credit and they can do a calculation before they transfer to make sure they will be better off.

[Baroness Boycott (CB)]

Like other noble Lords, I congratulate the Government on coming some of the way towards Marcus Rashford’s and other food campaigners’ demands. This weekly increase of £20 does pay for the bulk of a single person’s grocery budget and is one of the things keeping a lot of people out of food banks, although, as my noble friend Lord Clancarty pointed out, these figures continue to rise. It seems extremely ironic that the Government have decided to support food banks and declare that they are an essential part of our system when we should be working to abolish them, yet they are contemplating taking away this small increase of £20 and, as was just mentioned, not affording it to people on JSA or ESA. I come back to my noble friend Lord Woolley of Woodford’s original Question and ask the Minister: what plans do the Government have to keep this increase for the duration of the Covid-19 pandemic and after it? It does make a difference.

[Baroness Stedman-Scott (Con)]

As I already said to the noble Lord, Lord Woolley, we are having discussions with the Treasury on the best way to support people both through Covid-19 and beyond. As soon as those decisions are made, Parliament will be advised.

[The Deputy Speaker (The Earl of Kinnoull) (Non-Afl)]

My Lords, the time allowed for this Question has now elapsed and we therefore move to the fourth Question.

Supporting Disadvantaged Families

Baroness Stedman-Scott Excerpts

Thursday 12th November 2020 Lords Chamber

[Baroness Janke (LD) [V]]

Local authorities are to receive £160 million, to be added to the previous sum of £63 million which was distributed earlier in the year. This is to be paid as a one-off government grant. I would like to understand more about the basis of these measures. What consultations have taken place with local government and what were their outcomes?

The issue of conditionality was raised. How is that to be achieved and demonstrated? Are there to be target numbers of families or children? Are levels of participation to be measured, or perhaps there are measures of improved well-being that are to be reported upon?

What exactly is the basis of these sums of money? We are told that funding will be dispersed according to an authority’s population, weighted by a function of the English indices of multiple deprivation, so presumably we are looking at a sum per head. Can the noble Baroness say how much per head and for how many people?

Does the noble Baroness feel confident about the number of families that are to be helped, given that local authorities have had financial cuts of £16 million over the last 10 years and that their capacity is significantly reduced? Many important services for disadvantaged families no longer exist in many areas, such as family support schemes and community facilities such as libraries, sports and recreation, and local health promotion, and many of those may be required to implement the scheme. Does the noble Baroness feel that the sums of money here will be enough to achieve the objectives she describes in the Statement?

The noble Baroness talked about the importance of nutritious food. Has any financial assessment been made of the cost of providing this to the numbers involved? If so, it would be good to see it. The Food Foundation has established that, to pay for the Government-recommended “eatwell plates”, people on universal credit would need to spend around two-thirds of their non-housing income on food. It would help to understand the analysis that underpins these measures.

We all welcome the expansion of holiday activities for disadvantaged children. Can the Minister clarify how these children are to be identified? Who is eligible for these provisions? Existing criteria exclude many children, particularly in low-paid working families. We have welcomed the temporary measures that have been introduced during the current crisis. Can the Minister assure the House that these will remain in place?

We welcome the £16 million for charities to help those struggling to afford food, but surely this is no more than a sticking plaster. We must ensure that families’ income is sufficient so that they can afford to provide nutritious food for themselves and their children. Removing the benefit cap and the three-child limit would help. If the Government do not intend to do that, what longer-term policies are being considered to ensure that families and children will no longer have to depend on short-term fixes and will have enough income to provide their own food and care for their families without depending on charities?

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

My Lords, I will respond first to the points raised by the noble Baronesses, Lady Sherlock, and then cover the points from the noble Baroness, Lady Janke. I am sorry that the audio of the noble Baroness, Lady Janke, was not at all good. If I do not answer all her questions, I will go through Hansard tomorrow and make sure that she receives a written answer.

I am grateful that both noble Baronesses welcomed the Statement. Let me say right at the start that the Government much admire Marcus Rashford’s passion and commitment and are proud to have provided this invaluable support. I note the hopes of the noble Baroness, Lady Sherlock, for Marcus Rashford’s next campaign.

She also mentioned the comments about parents who use their benefits for purposes other than we would wish. We do not associate ourselves with those remarks. We are only too aware and appreciative of the difficult circumstances in which some parents find themselves at the moment. We are delighted that the hospitality industry came into its own and are glad that it was in a position to give extra help.

I am well aware that earlier at Questions, the noble Baroness was underwhelmed by my response about legacy benefits. I will try to be a little more helpful. Back in March, when there were no arrangements such as the furlough in place, UC had to take the strain until those schemes came online. The Government were trying to cushion those who had had a fall in income because they were made unemployed, or their earnings dropped, due to Covid-19. They were not trying to provide a general uplift in benefits. Those who were newly signed on to universal credit did so because they had seen a significant drop in their income, whereas those on legacy benefits had not seen the same fall.

Moving on to what we have done, we have announced a £170 million Covid winter grant scheme, to make sure that families get the help they need. We are giving this to councils because they are best placed to understand their communities. They know the most vulnerable children and families who need this money. As the noble Baroness, Lady Janke, said, this is being done on a per-head-of-population basis, according to the deprivation indices.

We are also investing £220 million more than existing funding allocated to the programme. This will mean that children eligible for free school meals will have the option to join a holiday time programme that provides healthy food and funds activities during the summer, Christmas and Easter holidays. I am afraid I am not able to comment on more than that timeframe. I will write to the noble Baroness about why the Healthy Start payments will not start until April 2021.

On the holiday activities and food programme, much has been said about the speed at which it has been introduced and whether it was a reaction, but I will say that we have been piloting this initiative and trying to work out how best to deliver it. This was not a knee-jerk response or something we thought we had better get on and do; it was something we piloted and tested. We made sure that, when we announced it, we knew that it would work. Since the summer, 50,000 children have benefited from the holiday activities and food fund, and a further 2,500 additional breakfast clubs have been started.

Will all children in England be eligible for a place on a HAFF programme? The programme will make free places available to children eligible for free school meals in their local authority for a minimum of four hours a day, four days a week, six weeks a year. This will cover four weeks in the summer and a week’s worth of provision in each of the Easter and Christmas holidays. As I have said before, local authorities have the flexibility to decide how to do this and how to use the money.

As I expected and I understand, there has been a call for the £20 uplift to be extended to legacy benefits, and I have been very clear about the Government’ position on this. The noble Baroness, Lady Sherlock, raised the issues of the savings threshold, the two-child limit, the benefit cap and advances into grants. I have made clear that the Government do not have any plans at the moment to change those things, and, as my Secretary of State said in the other place,

“advances are actual grants to people—they are just the phasing of universal credit payments over the year”—

and they are repayable within a year—

“and soon to be over two years if that is what claimants want.”—[Official Report, Commons, 9/11/20; col. 642.]

We are listening and extending the time.

Where we have been doing the local pilots, there has been extensive discussion on interfacing with local authorities. I understand that the Government have written to all the chief executives of the local authorities, and, at this stage in the proceedings, the announcement and commitment have gone down very well. I am afraid I cannot tell the noble Baroness, Lady Janke, how much it is per head because it will be up to local authorities to say where the money goes and spend it most effectively.

Understandably, the noble Baroness, Lady Janke, raised the point about local authorities and underfunding. We are giving councils unprecedented support during the pandemic: a package of £6.4 billion so far. We recognise that there will be individual councils with unique circumstances, and we encourage them to approach MHCLG to discuss their future financial position.

Before I close this part of the questioning, I will make the point that Covid has certainly made life very difficult for people—nobody is trying to ignore that—but, underlying this, we believe that parents are responsible for their children. It is not the state’s job to take that responsibility, other than in these very difficult times, where we are trying to do everything we can. One of the areas I have responsibility for is the Child Maintenance Service. You would not believe the extent to which people try to get out of their responsibilities to pay for their children. We are working very hard to get this money back. As it stands, there are 130,000 children who are owed £381.3 million, and I am doing everything I can to get that money to children because it would make a huge difference to their lives.

[The Deputy Speaker (Lord Russell of Liverpool) (CB)]

We now come to the 30 minutes allocated for Back-Bench questions. I ask that questions and answers be brief so that I can call the maximum number of speakers.

[Lord Berkeley of Knighton (CB) [V]]

My Lords, naturally, I am extremely pleased the Government are responding to this very real need, even if as something of a reaction to public disquiet. Marcus Rashford is clearly an artist on and off the field.

This money will obviously make a real impact in areas of disadvantage and poverty. However, I am sad to say I must add to them the current plight of freelancers and their families. Despite the Chancellor’s generous support for the arts, it is a fact that this section of society is falling through the support network provided by the Government. I know of people who are seriously worried about how they will feed their families this winter and this Christmas.

In anticipation of the Minister’s response, I put it to her that not only are a huge proportion of freelancers unable to access SEISS according to the Government’s own figures but they are unable to claim universal credit for the following reason. If they have been saving to pay tax on earnings made prior to Covid-19, they could easily have the savings as a couple that exceed the £16,000 threshold—money that is ultimately destined for the Chancellor.

Although I find myself incredulous at my own words that, for example, a highly skilled violinist of many years’ standing in the profession might not be able to feed his family this winter, that is in fact the case. When Keir Starmer in the other place gave the example of Chris, the photographer, to the Prime Minister at PMQs yesterday, Mr Johnson completely dodged the question, saying Chris would be better off once we had dealt with the virus. That is obvious, but I doubt Chris felt this solved his immediate and imminent financial crisis. Can the Minister say whether her department and the Chancellor will look at the predicament of freelancers in our society? Secondly, will they be able to access the support announced in the Statement?

[Baroness Stedman-Scott (Con)]

I thank the noble Lord for that poignant comment. I understand his concern and distress about this situation. The issue of the support—or otherwise, as he would say—for freelancers rests with the Treasury, but I will go back to the Treasury and get answers to those questions, especially about the savings, where they put money aside to pay their bill. I will talk to those in the department to see if, in those circumstances, people can access universal credit and the help we are announcing today. I hope he will give me time to do that.

[Lord Forsyth of Drumlean (Con) [V]]

My Lords, at a time when it is claimed we have more food banks than McDonald’s restaurants in our country, and following the rather disappointing response to the Economic Affairs Committee’s report Universal Credit Isn’t Working, when will the Government end the anguish and uncertainty facing families who stand to lose £1,000 a year unless the standard allowance is made permanent after April? How can it be right to deduct up to a quarter of universal credit payments from families due to historic debt arising from faults in legacy systems, much of which they are completely unaware of? Finally, when will the department make a decision on the benefit cap, which affects 7% of families with children?

[Baroness Stedman-Scott (Con)]

I will answer again on the £20 uplift. We are in discussion with officials at the Treasury: when a decision has been made, Parliament will be advised. The issue of historic debt is well documented and well discussed. Nothing I can say now will make that situation any different. However, where people are struggling, even when the level has been reduced to the maximum of 25% being taken off, please will they talk to their work coaches, who will turn themselves inside out to help? That is probably not the answer the noble Lord wants—but that is what they are there to do. As things stand, there are no plans to change the benefit cap.

[The Lord Bishop of Durham [V]]

I warmly welcome so much in the Statement and in the decisions made; I also associate myself with those who ask why it did not all happen a bit more quickly. None the less, this has exposed the underlying fundamental structural issues which mean that we are not tackling child poverty in the round and as a whole. What consideration have Her Majesty’s Government given to creating really long-term solutions by forming a child poverty commission, as proposed by faith leaders in their recent letter to the Prime Minister?

[Baroness Stedman-Scott (Con)]

The right reverend Prelate is consistent in the issues that he raises, and I understand that. As for this happening more quickly, as I said, we were piloting and we were in dialogue. We were not sitting around waiting to be kicked into touch. As I have also said before, we have tested to make sure that these things can work. As for the long-term issue of a child poverty commission, I am not aware of any plans, but I will go away and double-check for him. I take this opportunity to thank the Church and all the faith groups who are supporting their communities in such an outstanding way.

[Baroness Drake (Lab) [V]]

My Lords, for the Government, protecting children is a moral imperative, because children cannot protect themselves. He may not have used those actual words, but they underpin the simple and compelling request from Marcus Rashford; that is why it was so clearly understood by the public and local businesses in their communities. I welcome the Statement as a contribution to preventing children going hungry, but this is a problem growing in prevalence and urgency. The role of local government is important, but may I push the Minister further on the question put by my noble friend Lady Sherlock about how “vulnerable” will be defined? That will be key in capturing the population to be helped and ensuring that some vulnerable families and children are not missed. For example, food aid charities have identified the emergence of the newly hungry—a growing cohort of people previously in jobs, who have been forced to use food banks and claim benefits for the first time during the pandemic. Will the Minister write, giving more detail on how the DWP will define vulnerable families in the Covid winter grant scheme, to ensure and give confidence that that category will include all those who need help?

There is a second example. On 9 November in the other place, the Secretary of State, Dr Coffey, said that

“every child has no need to go hungry in this country”,—[Official Report, Commons, 9/11/20; col. 649.]

and that there would be

“funding available for every child in the UK”.—[Official Report, Commons, 9/11/20; col. 637.]

But she did not expressly answer a question posed by Stephen Timms, so I ask the Minister that question again now. Will she confirm that this package of support extends to families who have no recourse to public funds?

[Baroness Stedman-Scott (Con)]

Of course we agree completely that children cannot protect themselves, and we must all do our part to protect them. Local government’s role is important, and we urge all partners in the communities that work with their local authorities, and the community groups with which they have relationships, to work together to identify those they know who really need this support. I undertake to write to the noble Baroness, as she requests, about the term “vulnerable”. As for those with no recourse to public funds, local authorities can, and already do, use their judgment to assess what support they may lawfully give to each person on an individual basis, taking into account their needs and circumstances. That includes providing a basic safety net option to individuals regardless of their immigration status, if there is a genuine care need that does not arise solely from destitution—for example, if there are community care needs or serious health problems—and there is a risk to a child’s well-being.

[Lord Addington (LD)]

My Lords, it is odd when we talk about child poverty as though it has happened with the pandemic. Food poverty during the holidays has been with us for a long time. In that context, it is only fair to ask what the Government’s long-terms plans are. They must have seen this coming for a long time. What are they going to do to make sure that the whole of the school holidays—not just six weeks—are covered? Will they make sure that in future they have a coherent plan to ensure that children get through the whole period with enough nourishment, so that they are not in a state of low nutrition, meaning that they cannot learn for a few weeks when they get back to school? Marcus Rashford did a wonderful job. It is appalling that the Government had to be told by him what to do and that they did not listen to their own Back-Benchers.

[Baroness Stedman-Scott (Con)]

On a long-term plan, the only commitment that I can make today on behalf of the Government is the one in the announcement. That is the straight answer on that point. I note the noble Lord’s observations in the latter part of his contribution and just say that we have listened to Marcus Rashford and others, piloted the initiative, and responded accordingly.

[Baroness Eaton (Con) [V]]

My Lords, can my noble friend the Minister confirm that support with food costs will not be confined to families with school-age children but will extend to those with pre-school children as well?

[Baroness Stedman-Scott (Con)]

The £170 million scheme recognises that more people might feel under pressure this winter and will allow local authorities to support a wider group of vulnerable people, including those with children of pre-school age. Precise eligibility for the Covid winter grant scheme will be decided by each local authority. This is not about numbers; it is for local authorities to decide how they can best support those in need. The Healthy Start scheme payments are also set to increase from £3.10 to £4.25 a week from next April.

[Baroness Lister of Burtersett (Lab) [V]]

The Statement said that the Government want to give disadvantaged families peace of mind. Welcome as this week’s package is, why do the Government continue to refuse to act on calls from children’s and anti-poverty organisations? Their work shows that improvements to social security support for children is essential for their parents’ peace of mind and for tackling child poverty and hunger in both the short and longer term, as called for by the right reverend Prelate.

[Baroness Stedman-Scott (Con)]

The noble Baroness is correct in that we want to give people peace of mind, as reflected in the announcement that we have made. The right reverend Prelate made his statement, and all I can say is that our Secretary of State, the department and the Government are working tirelessly around the clock to make sure that there is a package in place that does what it can to support people in these difficult times.

[Lord Taylor of Goss Moor (LD) [V]]

My Lords, I would like to associate myself with the comments of others in congratulating Marcus Rashford on persuading the Government to take these rightful actions. As a single father, I am not disadvantaged financially, but I have direct experience with three young boys—two of whom, at different times in the last month, have had to self-isolate at home because of potential contact with coronavirus cases at school—of just how difficult it can be for families in these circumstances.

First, can the Minister assure us that no one will now have to choose between looking after their children when they need looking after and earning an income—that the financial support will always be there for everyone who needs it? Secondly, can the Minister comment on the rollout of computers to schools to make sure that every child at home gets the opportunity for education? It is absolutely clear, from all the evidence presented to the Government, that the coronavirus period has been a catastrophe for many children, particularly those who were already disadvantaged.

--- Later in debate ---

[Baroness Stedman-Scott (Con)]

I can appreciate the noble Lord’s commitment to his three boys and the difficulties with their care caused by Covid. We have done as much as we possibly can to make sure that childcare stays in place, even paying for places when nurseries have been closed. As for enabling parents to look after their children, and not having to choose between earning money and not going to work, I think most employers have been very considerate about these circumstances and have been as flexible as they can. In relation to computers for schools and the disruption to education, the noble Lord’s point is very well made. I will ask my colleague in the DfE to write to him specifically about computers.

[Baroness Ritchie of Downpatrick (Non-Afl) [V]]

My Lords, while welcoming the contents of the Statement, I have to say that I agree with the right reverend Prelate the Bishop of Durham that there needs to be a child poverty commission. The Statement clearly highlights that there has been such a deficit in welfare and child welfare policy. Will the Minister talk to her Secretary of State to ensure that discussions get under way about an immediate review of welfare policy in light of the pandemic?

Secondly, could she provide an estimate of what amount of money under the Barnett consequentials or Covid winter grant scheme—£16 billion has been allocated to the devolved Administrations—has actually been allocated to Northern Ireland? Will she further ensure that that money is dedicated to disadvantaged families and does not go into the central pot of the Department of Finance?

[Baroness Stedman-Scott (Con)]

I will go back and speak to my Secretary of State about the points the noble Baroness raises. I cannot make any commitment further than that. As the noble Baroness says, £16 billion is given to the devolved Administrations to allow them to plan. Last week, in the Chancellor’s Statement, there was a recognition that, through the Barnett formula, every time we do certain different policies, the devolved Administrations want to do additional things. We have a mature relationship with the devolved Administrations. They have been set a guaranteed amount of funding, and I assure the noble Baroness that there is still more room in terms of Barnett consequentials. The Chancellor was right to make the decision he did, and I am glad she welcomes it.

[Baroness Altmann (Con) [V]]

My Lords, I too welcome this Statement and this decision, and congratulate the Government. I urge my noble friend, in line with her responses, including to my noble friend Lord Forsyth, to continue urgently talking to the Treasury about the extra £20 uplift in universal credit being extended, given that the opportunity of work is much more difficult in the current environment. I also encourage the Government to look at the position of children in particular, as the noble Baronesses, Lady Lister and Lady Ritchie, have said.

Could my noble friend the Minister please join me in praising the work of others, not just Marcus Rashford—the local organisations and religious groups across the country involved in providing these activities and food for children, who have helped make the pilot scheme such a success?

--- Later in debate ---

[Baroness Stedman-Scott (Con)]

At the risk of repeating myself, the issue that the noble Baroness raises about the £20 uplift has been raised many times, and we undertake to come back to Parliament to advise on the outcome of discussions with the Treasury. On praising the work of local organisations, I have already given an absolute endorsement to faith groups—the Church of England, Jewish communities, the Salvation Army—and many other charities that I wish I could mention by name. We have seen some fantastic provision in the last three years and we want to take that learning experience into the future delivery of holiday activities and food programmes.

[Baroness Massey of Darwen (Lab) [V]]

My Lords, I of course welcome the positive aspect of the Statement, but it feels to me that the Government have reacted to crisis under pressure from local government, the voluntary sector and dynamic individuals. A new report from the Local Government Association, A Child-centred Recovery, points out that children have been disproportionately impacted by the Covid crisis. The report calls for a

“cross-Whitehall strategy that puts children and young people at the heart of recovery”.

It seems blindingly clear that a cross-departmental strategy for children should be an urgent priority. Will the Minister take this forward?

[Baroness Stedman-Scott (Con)]

I am pleased to tell the noble Baroness that there is already a forward-looking approach that is long-term and cross-departmental, with DWP working closely with the DfE and Defra to target support to those in need. The Secretary of State set out in the other place her desire to ensure that every child has the chance to realise their full potential, and the long-term thinking in this support package will help to achieve this far more than piecemeal reform. I ask the noble Baroness to write to me if there are particular things that she would like included; I am quite prepared to make those available to the department.

[Baroness Smith of Newnham (LD)]

My Lords, clearly the additional funding is welcome, but I note that the Statement suggests that there will be additional reporting requirements and conditions for local authorities. What work have the Government done in talking to local authorities to ensure that such requirements are not overly onerous? It would be something of an own goal to have money being spent that local authorities do not have the time to disburse. In the longer term, what are Her Majesty’s Government doing to make child poverty history?

[Baroness Stedman-Scott (Con)]

The noble Baroness raises a really important point about reporting. We will need some information back for the sums of money that we will be spending. I sincerely hope that the reporting requirements will not be onerous, but that they will enable us to understand the impact of the spending and the difference it makes, and help us understand what needs to be done next. I really hope that will be case. I can only reiterate that we are working hard as a Government to make sure that children and families have the support they need in these even more difficult times.

--- Later in debate ---

[Lord Rooker (Lab) [V]]

My Lords, what is happening about the decline in the number of health visitors in respect of the youngest children in disadvantaged families? If the Government, as was said in the Statement, are taking a long-term holistic approach, why has there been no national health inequality strategy since 2010? Is this why life expectancy in England has stalled since 2010—something that has not happened since 1900, according to The Marmot Review 10 Years On?

[Baroness Stedman-Scott (Con)]

There is an exam question to finish this session. I will need to ask my colleagues in the Department of Health and Social Care to provide the noble Lord, Lord Rooker, with the information about health visitors and the other valid points that he raises.

[The Deputy Speaker (Baroness McIntosh of Hudnall) (Lab)]

My Lords, all speakers who wished to ask questions on the Statement have done so. We will move straight on to the next Statement, but I recommend that we just take a few moments to allow Front-Bench Members and others to find their right places.