Budget Resolutions and Economic Situation

Chris Stephens Excerpts

Thursday 16th March 2023 Commons Chamber

[The Secretary of State for Work and Pensions (Mel Stride)]

This Budget and the measures it sets out for providing additional support and encouragement for millions of people to re-engage with the labour market spoke to the very heart of our Conservative principles of compassion, of incentive, of self-reliance and of collective responsibility. Above all, it spoke to that age- old truth that work matters: that work is the source not just of income or paying the bills, and not just of supporting businesses or growth, but of something arguably greater still—of individual pride, of self-worth, of better health, and of making a fundamental contribution to the whole of society. That is the Conservative way.

[Chris Stephens (Glasgow South West) (SNP)]

The Secretary of State talks about compassionate Conservatism; does he believe the measures in the Budget will increase or decrease sanctions over the next 12 months?

[Mel Stride]

Our policy and rules around sanctions have not been changed by the Budget, but it is important that where somebody can work and is offered support to work and decides to take benefits and not engage with the system, sanctions can under certain circumstances be appropriate. That is not to say that sometimes people will not have perfectly reasonable reasons for not engaging with the jobcentre, in which case no sanction will be applied. The hon. Gentleman seems so often to be suggesting that there is no scope or role for sanctions whatsoever within our benefit system, and that is not going to help the very people we are out to support.

This Budget will help break down the barriers stopping people moving into work or progressing within it, and it is most particularly a Budget for those who face the greatest employment challenges. It is a Budget for disabled people and those with health conditions, with new and extended employment support, better integration of work and health services, and, through our health and disability White Paper, the biggest reform to the health and disability benefits system for a decade. It is a Budget for older workers, with the removal of disincentives in the pensions tax system, and with more help to retrain and reskill and more tools to help people plan for the future.

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[Mel Stride]

The right hon. Gentleman will know that hitherto we have indeed focused on a gap. The Department will come forward with something to say on that in the not-too-distant future, and he will have to wait until that point to know the exact kind of target, although I recognise that the current measure has value.

The measures we have set out in the Budget and in our health and disability White Paper will help to remove barriers, so that disabled people have the same opportunity as anybody else to thrive in work. Some 20% of those who have been assessed through the work and capability assessment as having limited capability to work and to look for work say that they want a job at some point in the future, but one of the barriers to work is the health and disability benefits system itself. For too many disabled people, the system feels like it focuses on what they cannot do, rather than what they can do.

Having listened to disabled people, the White Paper that we published at Budget yesterday sets out how we will fundamentally rewire the benefits system, changing it from a system that can often leave people feeling that moving towards work is too risky and that they might not be able to return to benefits if that work does not work out. I want to give people the confidence to try work without the worry that they will not be able to access benefits again promptly if a job does not last. Under our new approach, people will have the confidence that they will receive support for as long as it is needed. Our reforms will also provide additional support to those disabled and long-term sick who request it.

These reforms have been years in the making and follow the Green Paper that we published in July 2021. We have engaged widely on these changes, including with disability charities and disabled people’s organisations, as well as with disabled people themselves who have been through the current process and understand how and why it needs to change. Just as we have taken a measured approach to developing this way forward, so we will operationalise this approach with care.

[Chris Stephens]

The Secretary of State is being generous in giving way. A number of disabled charities are sceptical about the package that he is putting together because of the severe delays to the Access to Work scheme, which are blocking people from going into employment. How does he plan to tackle that in the coming year?

[Mel Stride]

As I just suggested, we will take a measured and appropriate approach to the delivery of a fundamental reform of how these benefits will work. It will involve primary legislation, most likely in the next Session next year, and it will be rolled out some time after that. There will be plenty of time to ensure that we have thorough engagement with stakeholders, disabled people and those who represent them, to ensure that we get exactly those matters right.

In addition, our new Work Well partnerships programme —delivered through the health system—will pilot a new model for delivering integrated work and health support in local areas, providing employment-based targeted health support to prevent people from falling out of work or to enable a return to work quickly. For those who need more intensive help, there will be universal support. We will work directly with employers to quickly match people with jobs and provide up to 12 months of personalised place and train support. This approach means that after helping someone into work, we will stay with them to ensure that they remain in employment.

We are also investing to expand the additional one-to-one support that work coaches are already providing to disabled claimants in one third of jobcentres. From the spring, we will start to make this extra support more widely available, so that it is in place across the entire jobcentre network by 2024. We will also work with the occupational health sector and employers to reform the market and improve access to quality occupational health services. That will include testing financial incentive and support models to help small and medium-sized businesses and the self-employed overcome barriers to occupational health services.

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[Chris Stephens (Glasgow South West) (SNP)]

First, I refer the House to my declaration in the Register of Members’ Financial Interests, as I will be making some remarks about public sector pay.

In this House a couple of years ago, I made a comparison that the Government were rather like those wicked characters the Warleggans in the period drama “Poldark”. I did not quite realise that that was a premonition on my part, because once again we have a Budget that benefits the rich on the backs of the very poor. The real issue here is what the Budget does not say and the huge disappointment it was.

Ministers confirmed this week that they are reneging on the promise given to me three years ago to publish the Department for Work and Pensions review of the factors driving food bank usage. The Chancellor referred repeatedly in his speech to the Prime Minister’s ambitions and objectives. One thing that the Chancellor did not mention was the Prime Minister’s stated wish to eliminate the need for food banks. Why no mention? Why no review? Why no costed plan to deliver on that particular ambition? The most vulnerable yet again are being failed by the Government and by the state. What possible reason or reasons can there be for not publishing what should be vital research to address the very factors that cause too many of our citizens across these islands to turn to food aid provision? Is it because the very factors that do so are the responsibility of the Government?

As we have been reminded by the leader of the Public and Commercial Services Union, of which I am the parliamentary chair, more than 40,000 civil servants—people on the Government’s own payroll—are having to resort to food aid provision. We know that many of those relying on it are people who have received a sanction from the Department for Work and Pensions, but we also know that some who are using it actually work for the Department, and are themselves responsible for and employed in delivering benefits to the poorest. Yet the Budget tells us in no uncertain terms that more people, not fewer, will be sanctioned. It is hard to reach any conclusion other than that the failure by Ministers to publish the Department’s own research on food bank use is due to decisions made by Ministers past and, I regret to say, present.

We had an exchange with the Secretary of State about sanctions, during which he said that there were some circumstances in which they were appropriate. However, we know from the Government’s own figures that the number of sanctions has skyrocketed in the last year. In response to recent written parliamentary questions, the Department has said it “would incur disproportionate cost”—yes, the answer to a written question contains the words “disproportionate cost”; I know that some Members will find that unusual—to find out how many children were living in households where a sanction had been applied, how many people living in sanctioned households were receiving hardship payments, how many people with a sanction had a medical condition, or how many people had been in hospital or attending a medical appointment when they were deemed to have failed to comply and were therefore sanctioned.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

My hon. Friend is talking about the impact and the scale of sanctions. Does he agree that the people who are sanctioned are pushed further and further into poverty, which goes against the Government’s own stated objective of getting people into work? The further into poverty people are, the more difficult it is for them to enter the workplace.

[Chris Stephens]

That is exactly what happens. What is also happening is that people who receive sanctions then miss out on cost of living payments, so they incur not just one punishment but a double punishment—and that, too, is pushing people into poverty.

[Mel Stride]

I have enormous respect for the hon. Gentleman, as he knows, but I genuinely wish to clarify one point. Is he at least saying that there are some circumstances in which a sanction is appropriate?

[Chris Stephens]

I will come on to that point, and yes, I will say that; but how can be it be humane to proceed with a ramping up of sanctions without knowing the basic facts, when Members are asking questions about, for example, how many children are living in households where a sanction has been applied? Does the Secretary of State not accept that with more people at risk of being sanctioned, now is the right time to roll out the yellow card benefit warning system for which many of us have been arguing, to ensure that misfortune does not lead to people being left destitute?

There are some things that the Secretary of State could do before sanctions are applied, and I believe that such a warning system is one of them and would help people into work. The Department did consider it, and we thought, when I was a member of the Work and Pensions Committee, that it was heading in that direction, but then it changed course. Perhaps the Secretary of State will want to look at the issue again. I would encourage him to look at the great work done by the Committee in this regard, and particularly at its suggestion that the yellow card system would be appropriate.

The fact remains that the measures in the Budget require those who are struggling on low incomes to jump through extra hoops, such as attending jobcentres even when they are working in what we all agree are vital roles, for example as teaching assistants or care workers. The earnings threshold has more than doubled in the space of just a year. This puts hundreds of thousands more people at risk of benefits sanctions, although we know sanctions do not work ethically, practically or economically. The Chancellor needs to understand that, no matter what he is promising for the future, far too many people are struggling to survive now.

There remains a large degree of scepticism about the employment support package, which the Secretary of State talked about today and the Chancellor referred to yesterday. Some believe that tighter sanctions will likely be a disaster for people on universal credit, and they will not help people into work, as my hon. Friend the Member for North Ayrshire and Arran (Patricia Gibson) said. The Federation of Small Businesses has said that the proposals to help people with poor health to get back to work are “ill-designed” and poorly thought out, and some “won’t happen for years”. Those with health conditions and disability have been let down by a Government who have ignored employers’ views on what can best help. The FSB continued:

“Small measures on subsidising occupational health are welcome but not the big bang needed.

“Measures on the over 50s are token efforts at best…The principle of what’s announced on childcare is positive—but this Government’s Achilles heel is in delivery”.

So, as the FSB says, we will believe it when we see it.

The Royal National Institute of Blind People has said:

“For those of working age, employment should be a route to coping with rising costs. “

But it remains of the view that urgent action is needed

“to fix the Access to Work scheme—a scheme where, right now, thousands of people are facing severe delays of many months to get the support and equipment they need to do their jobs”.

I hope that the Secretary of State will note its comments, because Access to Work is clearly not helping enough people and the delays are preventing people from getting into work.

Not everyone is convinced that the childcare reforms will help get people into work. Even if the money is there to pay for childcare, there is no workforce—the pay is very bad—to deliver it. The UC changes in the administrative earnings threshold will mean more Department for Work and Pensions staff caught up in in-work conditionality, as well as swathes of extra work for staff in jobcentres. There was no mention in the Budget about whether there are any extra staff to deliver what we believe will be huge amounts of additional work. The Secretary of State is saying that there will be, so while he is answering that question, perhaps he can say what pay rise he is going to give DWP staff as well. They took industrial action yesterday. [Interruption.] I am chair of the Public and Commercial Services Union parliamentary group, but my union is Unison, of which I am a proud member. I think that answers the question from the Exchequer Secretary. I would have thought he would have done his research to have known that. Perhaps there is a very real need for civil service pay to be addressed, and I will come on to that later.

Another issue that has not been tackled is deductions. One measure that would have cost the Government very little but could have resulted in many fewer people needing to use food banks would have been to ease significantly the rate of deductions from UC. Better still would have been to waive deductions resulting from official error, or to introduce a one-off amnesty on deductions. Why no action on that, the single biggest factor affecting people going to food banks? Despite almost half of all households on UC now facing a deduction, during the last six-month period, ending January 2023, just 14 cases were fully waived and a further five were partially waived. So will the Secretary of State revise the guidance to ensure every household subject to a deduction is automatically informed of their right to request a waiver?

On public sector pay, the Budget offered nothing. As the Prime Minister sorts out his swimming pool heating, it is incredible that public swimming pools were the only public services mentioned for support in the Budget speech. Although the pension cap cut might help our NHS to retain doctors, the measure could have been limited to medicine or the NHS, rather than being a lifetime tax cut for the wealthy. The only mention, without actually announcing more money, was that cutting public sector debt would lead to more money for public services. Public sector pay bodies have noted that only a 3.5% pay rise is affordable under current Treasury allocation; as the IFS said, that is a political choice. The TUC has said that the lack of support for public services and for public pay is the “elephant in the room”. The Budget goes nowhere near a high-wage, high-skills economy.

With strikes all over the country, it is striking that the Budget said nothing about them. Public transport, public health and even public sector TV hosts are on strike, but the Government seem to prefer to fight a culture war over Gary Lineker than pay attention to ensuring that our public services have the funds they need.

The Government are again scrambling to fix the economic problems of their own making. Yesterday’s Budget is a huge disappointment to people, businesses and charities left paying for the UK Government’s mistakes. They created a crash a few months ago—there is selective amnesia about that—and they have not yet said sorry for it. There is, however, one thing on which I agree with the Chancellor, who said:

“Independence is always better than dependence.”—[Official Report, 15 March 2023; Vol. 729, c. 844.]

We could not have put that better ourselves.

[Several hon. Members rose—]

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[James Cartlidge]

The quote says,

“doing away with the cap”.

The removal of the cap is a tax measure that applies to all people who qualify for it. There is a really important point that Opposition Members probably want to listen to: there is a real danger in making up policy as one goes along. To be clear, our tax change will come in immediately, or as soon as we can possibly do it—it will come in on 6 April—but it is our view that a specific scheme for the NHS would take up to a year to put in place. Were we to bring forward an NHS-only scheme, the Department of Health and Social Care would have to consult on that scheme and then respond to the consultation. Only after that could it start to develop the scheme, because it could not predetermine the consultation. After that, the Department would have to transfer eligible people into the scheme. All that assumes that there would not be legal challenges from those who would argue that such a scheme should apply to other key people in the public sector, such as headteachers, senior police officers and senior people in the Ministry of Defence who might think that they too work hard in our public services. The Labour party has made it up as it has gone along. The fact is that Labour has U-turned from a perfectly sensible policy back to being ridden with the politics of envy, which we have heard from every single Opposition Member today.

Turning to some of the speeches, my right hon. Friend the Member for Norwich North (Chloe Smith) made an excellent contribution. She speaks with great expertise and passion on the matter of getting the disabled into work. She made the very important point that that is not just for the Government and that we also need to talk about the role that employers can play. I hope she will be pleased to hear that in the build-up to the Budget I, along with my hon. Friend the Minister for Employment and the small business Minister—my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake)—engaged directly with employer groups and worked with them to come up with some of the Budget’s proposals, particularly the extension of the occupational health subsidy pilot, the returneeship policy and boot camps for over-50s. Those are very positive measures.

The hon. Member for Glasgow South West (Chris Stephens) said that all the measures we have taken are on the backs of the poor, while the hon. Member for Jarrow (Kate Osborne) and other Opposition Members said that we have let down those on the lowest incomes. I remind the House that this year it is possible, for the first time, to earn £1,000 a month without having to pay any income tax or national insurance. We have doubled the personal income tax allowance since 2010, and in the last year we have increased benefits in line with inflation. On energy support, this financial year we have given a £650 cost of living payment to those on benefits, and in the financial year to come it will be £900. Those are not the actions of a Government turning their back on the poor. This is a Government taking difficult decisions to balance the books of this country, but in a compassionate way that helps those who have the least.

[Chris Stephens]

If the Government are doing so much for the poor, can the Minister tell us why in-work poverty is on the rise and why 40,000 civil servants, who work for this Government, are having to use food banks?

[James Cartlidge]

The key statistic is that since 2010 we have cut unemployment by 1.2 million. We have near record lows in unemployment and almost record highs in employment. Of course, we want to go further.

I am glad that the Chairman of the Work and Pensions Committee, the right hon. Member for East Ham (Sir Stephen Timms), welcomed some of the Budget’s measures, particularly the important increase in the universal credit childcare cap and aspects of the White Paper. I am sure he is looking forward to engaging in detail with my right hon. Friend the Work and Pensions Secretary, who is sitting next to me.

My right hon. Friend the Member for Chipping Barnet (Theresa Villiers) was absolutely right to say that the Prime Minister has set these targets and that this year we are making fantastic progress on three of them. Inflation is set to more than halve this year. That is not a minor detail. Inflation—driven, after all, by Putin’s invasion of Ukraine—has been the biggest reason why there have been problems with growth in countries all around the world. She also made very important points about the extension of the energy price guarantee. Yes, inflation is falling, but that shows that we continue to take steps to support people with the cost of living. We know that those pressures have not completely gone away. The elevated prices of food and other products in our shops have all come from that surge in energy prices. That is why we have extended the energy price guarantee and continued the freeze on fuel duty and the 5p tax cut on petrol and diesel for motorists.

The hon. Members for Eltham (Clive Efford) and for Easington (Grahame Morris) both put forward some very interesting proposals, which I hope have been noted by shadow Front Benchers, for a range of new wealth taxes to undermine the competitiveness of the UK. If there has been a theme among Opposition Members today, it has been a return to the politics of envy and of undermining aspiration and competitiveness.

My hon. Friend the Member for South Dorset (Richard Drax) made an excellent point. We may exchange views on which taxes we should take action on, but he reminded us of the reason why we have had to take those difficult decisions. It is because of huge external factors that Opposition Members do not like to talk about. They include a pandemic, followed, literally, on 24 February, the day on which the pandemic regulations ceased, by Putin’s invasion of Ukraine. It has been an extraordinarily challenging time, requiring us to put in place £390 billion of additional support. We can debate whether it should have happened, but it did happen and, as my hon. Friend the Member for Thurrock (Jackie Doyle-Price) has said, that has consequences for taxes and we have had to take those difficult decisions.

I also agree with the very important point made by my hon. Friend the Member for South Dorset about energy security. He is absolutely right. We are proud of the huge progress that we have made in reducing our emissions, at a faster rate than any other G7 country. Last year, 40% of our electricity was from renewables. The figure in the United States was just 20%. Yes, we welcome the steps that the US is taking through the Inflation Reduction Act 2022, but no one should be under any illusion that we are not making huge steps forward ourselves. However, we must always remember the role of energy security, which is why my hon. Friend the Member for South Dorset is right that, rather than turning our back on the North sea as others have suggested, we should be maximising the UK’s domestic supplies of energy. That is why I hope that colleagues will welcome the steps that we are taking in respect of small modular reactors. There was also the important announcement, which was welcomed by several Opposition Members, including the hon. Members for Preston (Sir Mark Hendrick) and for Stockton North (Alex Cunningham), of £20 billion investment in carbon capture and storage.

I am delighted that my hon. Friend the Member for Milton Keynes South (Iain Stewart), the Chair of the Transport Committee, welcomed the news on East West Rail, which we have had exchanges on in previous Treasury questions. He is absolutely right about the central role that new infrastructure plays in driving growth and connectivity, and I hope that the announcement brings great benefit to his constituents.

Labour Market Activity

Chris Stephens Excerpts

Tuesday 28th February 2023 Commons Chamber

[Jonathan Ashworth]

They have been articulate and fantastic champions. I always praise my fellow MPs from Leicester. The Government need to take this agenda seriously, because we know that increasing numbers of women in their 50s are being forced out of the labour market but would stay in work if given the right flexible options.

We also need to tackle the barriers in the social security system that prevent people from moving into work. People should not be trapped on welfare, abandoned to going nowhere. That brings me to childcare. We know that childcare can make the difference between a parent rejoining the workforce and staying at home to look after their children. For some parents, childcare may not be available where they live, but for many parents—particularly those on the lowest incomes—childcare costs can be an insurmountable barrier to work. That should not be the case.

A lack of childcare, or a lack of support paying for it, should not stand in the way of a parent returning to work, yet low-income families often have that choice taken away from them. The design of the universal credit system means that childcare costs are based on payment in arrears, but as childcare usually needs to be paid up front, in advance, parents often have to choose between taking on debt or turning down work. It is pushing more families into debt. The Government’s answer is that people can go to their work coach and ask for a flexible support fund grant, but it should not be the case that a poorly understood and difficult handout scheme administered by the DWP is there to address the failings in the DWP’s own policy. We need to fix this.

[Chris Stephens (Glasgow South West) (SNP)]

Will the right hon. Gentleman give way?

[Jonathan Ashworth]

I will give way to my hon. Friend—the hon. Member.

[Chris Stephens]

I will take hon. Friend. There is another problem, which is that lone parents face the choice of working reduced hours, because if they increase their hours they will lose out on state support.

[Jonathan Ashworth]

Absolutely. It beggars belief that people are being trapped out of work because of the current system. It needs fundamental reform.

Part of the problem is the way in which the amount of childcare that can be reimbursed has been capped. A family in 2009 who received working tax credit and needed full-time childcare of 50 hours a week would have been reimbursed for 38 of those hours. Today, the same family on universal credit would be reimbursed for only 27 of those hours—at a time when we want to support more parents into work. Fixing childcare not only is the right thing to do, but will help the economy. The Centre for Progressive Policy has said that if women had access to adequate childcare services, they would generate up to £28 billion for the economy. Why are Ministers not fixing it?

Finally, the social security system should support, not hinder, people’s journey into work, but too often the system disincentivises work and makes even trying it too much of a risk. The work capability assessment acts as a barrier for people and the assessments can be arduous, lengthy and stressful. Many people with ill health simply do not want to risk going through that process again if they move into work and something goes wrong. Instead, we should guarantee that people in that position, who move into employment with the help of employment support, can return to the benefits that they were on without the need for another lengthy assessment process.

This is a plan to get people back to work, but where is the Government’s plan? They spin that they are working on something, but they cannot even tell us whether their existing policies are making a difference. I have been asking them about those policies and this is what they have told me. When I asked how much funding was allocated to each jobcentre, I was told:

“The information requested is not available.”

When I asked if they could tell us how many people had secured a job at the end of taking part in sector-based work academy programmes, I was told:

“This information is not available.”

When I asked how many people got jobs after taking part in the DWP’s mentoring circles, I was told that the information “is not collated”.

When I asked how many times people on universal credit have been asked to meet a work coach, I was told:

“No such specific assessment has been made.”

When I asked how many universal credit claimants were undertaking training or education that counted towards their work-related requirements, I was told:

“The requested information is not held.”

When I asked how many universal credit claimants were employed as carers, I was told:

“The requested information is not held.”

When I asked what the average amount of time is between receiving jobseeker’s allowance and receiving a job offer, I was told:

“The information requested is not…available.”

When I asked how many people stopped receiving employment and support allowance as a result of gaining employment, I was told:

“The information requested is not…available.”

When I asked how much money from the flexible support fund has been used to assist jobseekers with the cost of childcare, I was told

“The information is not available”.

When I asked how many individuals were awarded payments for childcare from the flexible support fund, I was told that the information requested is not available.

This lot are supposed to be getting people back to work, but a plan for jobs is not available. That is probably why the Secretary of State—the shadow shadow Secretary of State—now copies our welfare reform plans. We propose welfare reforms to benefits, and two days’ later we read in The Times that he is adopting them. We call for deeper links between health and employment services, and a week or so later he copies us. We put forward reforms to get the over-50s back into work, and a few weeks’ later he nicks them. I even went to the shop where I get my suits from—this is absolutely true—and the people said that he had recently been in there.

People say that imitation is the sincerest form of flattery, so why does the copycat Secretary of State not move out of the road and let us take over? Let us get Britain back to work, because Labour is winning the battle of ideas. I commend our motion to the House.

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[Mel Stride]

My right hon. Friend is absolutely right, and that is why we have stood up important programmes, such as sector-based work programmes, and it is why skills and apprenticeships are so important—[Interruption] —as are skills bootcamps, as an hon. Friend reminds me.

This motion is wrong on unemployment and employment, but it is also wrong on economic inactivity, because while it is true that economic inactivity rose during the pandemic, it is also true that, with the notable exception of the United States, in most countries it has gone back down to broadly where it was before the pandemic. That has not happened in the UK. It is not true to say that working-age inactivity rates have not been on a long-term decline. They have in this country, and the trajectory has been downwards. The level of economic inactivity in the UK is lower than in the United States, France and Italy. It is below the EU average, and it is below the average of OECD countries.

While there has been some softening in recent months on the level of economic inactivity in the United Kingdom, I accept that there is a lot more work to be done, which is why the Prime Minister has asked me to work across Government to review how we approach these issues, particularly in respect of disability, the long-term sick and those who are over 50 and have retired early.

Before I come to those cohorts, let me state clearly what lies at the heart of this Government’s success on unemployment and employment: the key Conservative belief that we should make work pay. The universal credit roll-out has been a huge success, despite the fact that the Leader of the Opposition suggested as recently as 2021 that it should be scrapped. We have enhanced universal credit by improving the taper, dropping it from 63% to 55%. We have increased the work allowance by £500. In terms of making work pay, for the very lowest paid we will be increasing the national living wage by 9.7% this April. We have stood up a number of important programmes that have helped to encourage people into work, among them Restart and our youth offer.

[Chris Stephens]

The Secretary of State says that the route out of poverty is work and making work pay, but the example I gave to the shadow Minister is one that came up when I was on the Work and Pensions Committee, of a lone parent not taking additional hours because they would lose state support. What are the Government proposing to fix those sorts of issues?

[Mel Stride]

I think the main point—I do not know the specific example to which the hon. Gentleman refers—is that under UC the whole driving principle is that work always pays. As someone gets into work, the benefit is tapered away, but none the less work always pays. That is why we are looking, in part at least, at these very low levels of unemployment and very high levels of paid employment.

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[Chris Stephens (Glasgow South West) (SNP)]

Thank you, Madam Deputy Speaker. I will try to be concise in my remarks to allow as many Members in as possible. The SNP will be supporting the motion.

We heard from the Secretary of State some of the old buzz phrases—I had my bingo card ready—such as “work is the best route out of poverty” and so on. I, too, am waiting for him to answer the questions from the right hon. Member for Leicester South (Jonathan Ashworth). We will see if the Minister’s response gives me those. I want to make a number of points, some of which were touched on by the Secretary of State.

I and a number of hon. Members have a real concerns about the ways the Government are trying to force people into work and to force them to increase their hours. There are also concerns about the current sanctions regime. We have had Westminster Hall debates fairly recently, to which the Minister responded. The number of sanctions being issued is spiralling. My understanding is that the only time there is a reduction in the number of sanctions is when DWP staff are taking industrial action. Those who face being sanctioned should not have to wait for industrial action in order not to be scared of getting a sanction.

I agree with the Secretary of State about the great role that DWP staff are undertaking. I hope he will consider that and offer them a decent pay rise. Even in his own Department there are an alarming number of staff who, in a survey with their trade union, indicate that they have to use food banks. That is a ridiculous situation. It is also ridiculous that DWP staff themselves are saying they cannot take on additional hours because they would then lose the benefits they are being paid by the state. I hope Ministers will listen on that point. During the Work and Pensions Committee inquiry into childcare costs—I was a member of the Committee until fairly recently—there were examples of lone parents who had to stick to the number of hours they worked. They were unable to increase their hours because that would have meant they lost universal credit payments and other benefits. That should not be happening.

On the very real concerns about the sanctions regime, it is deeply concerning that people not only get sanctioned but lose their associated cost of living payments. That only puts people into more poverty and should not happen. There is very clear evidence that sanctions do not work. The Institute for Fiscal Studies—not necessarily a friend of the SNP; it is often quoted by Conservative Members—said in a recent report that the sanctions policy currently produces

“fiscal savings indistinguishable from zero”,

yet we are still subjecting people to untold anxiety and harm.

The Secretary of State touched on the pilot. There are a number of questions that I hope Ministers can answer regarding the concerns about the pilot. The DWP—I nearly said the DUP; I’ve made that mistake before—is now starting a pilot that forces thousands of UC claimants into compulsory attendance at jobcentres 10 times over a two-week period. If someone has been a claimant for 13 weeks and fails to attend, they could be sanctioned and risk losing their benefits. That would plunge often very vulnerable people deeper into poverty. I understand that the jobcentre innovation pilot is to be introduced in 60 jobcentres, with the potential to impact thousands of claimants.

The Department has been clear that there are no extra staff to deliver the additional work, which means that yet more pressure will be heaped on the overworked, underpaid and highly stressed civil servants working in the jobcentres. The Public and Commercial Services Union believes that that will increase the risk of poverty and make claiming benefits more difficult. Martin Cavanagh, the PCS DWP group president, said:

“Our members will see through this pilot for what it is – a government hellbent on making it more difficult for people to claim benefits and which will increase the risk of poverty for those customers who fall foul of this pilot. Asking more customers to travel more often into jobcentres does nothing to help our staff or their workloads and does nothing to help the customers find the work that they need.”

It is important that Ministers respond to those concerns from the Public and Commercial Services Union.

Disability employment increased during the pandemic, but it now seems to be reducing. I think that one of the reasons is that during the pandemic people were able to utilise technology to work from home. As we have eased out of the pandemic, we have seen a massive move to force people back into offices, factories and all those places. When the Government look at disability employment, I would like them to incentivise employers to help workers work from home, because that would certainly help and be of benefit to those with disabilities. That comes up time and again when the Work and Pensions Committee looks at those issues, and I hope that Ministers will look seriously at it.

Rising insecure work and in-work poverty need to be tackled. I am concerned when I hear Ministers justifying sanctions in cases where people refuse zero-hours contracts. Zero-hours contracts do not suit everyone. I hope that the Department will look at that again. If someone refuses a zero-hours contract job, it is because it does not suit them; it does not suit everyone to be in that position. We have waited over six years for the Government to introduce an Employment Bill to address the issues around insecure work, such as people in insecure contracts being texted by their employer and being told that the first one who arrives at work gets the shift. That is the sort of practice that I hope Government Ministers will condemn, and I hope that they are working with colleagues to eliminate such practices, because they are wrong and are increasing insecure work and in-work poverty.

I hope that Ministers will liaise on some of those important issues. We need to look at how to be a fair work nation with fair work policies, so that people will be attracted back into the workplace. I hope that Ministers will look at and respond to my points. I will leave it there to allow other Members to speak.

--- Later in debate ---

[Jerome Mayhew (Broadland) (Con)]

I am glad to have the opportunity to speak in this debate, not only because it highlights the Government’s proud record of increasing labour market activity, but because it raises the fundamental problem with Labour’s political philosophy: its historical and financial handcuffing to the union movement.

Unions are undoubtedly a good thing. In the early 19th century, if they had not been formed, they should have been. At a time of social immobility, they dealt with a huge and important social injustice: the dislocation between the bargaining power of the master and that of the servant—we just have to use the language of the time to make the case that there was a huge imbalance in bargaining position and therefore a need for unions. Times have changed, however. Nowadays, information on pay and opportunities is universal: I could go online today and look at employment opportunities in Bogotá as well as those in Bridgend. At a time of full functional employment, which is what we benefit from at the moment, other options for staff are available as well as combined bargaining.

The role of unions has moved away from the proud position in which they began. They are now more focused on the rights and privileges of members. In some cases, although not all, they are focused on things like the defence of anti-competitive Spanish practices or the prevention of increases in productivity and of modern work practices unless they are linked to increases in pay. All those things harm the economy.

It is perfectly rational, of course. If I were a London tube driver, would I join the union? Of course I would! Through union control, its members have got salaries of between £55,000 and £60,000 a year and 43 days of holiday. But does that help the economy? Is it good for society as a whole? No.

[Chris Stephens]

I thank the hon. Gentleman for giving way, but—with as much respect as I can muster—I say to him that it is not a bad thing that trade union-organised workplaces have higher pay than non-unionised workplaces. Surely the fact that people have more money means that they can spend money in the economy and help the private sector.

[Jerome Mayhew]

I thank the hon. Gentleman for that intervention. The question is: at what cost does this come and who pays the price? It is the young, the unemployed and the old who are outside the club of unionisation. They are the ones who pay the price, and the evidence is in the data.

It is an extraordinary fact that every Labour Government in history have ended up destroying employment, leaving more people out of work than when they came into power. The figures hide the real cost of Labour being in hock to the unions. I mean “in hock” literally: since 2010, it has received £142 million. That is excluding individual contributions to Opposition right hon. and hon. Members, and not even mentioning the hon. Member for Brent North (Barry Gardiner), so actually the number is a lot higher.

Raising employment barriers skews what would otherwise be a much more sensible employment policy for the Opposition. The costs are paid by those outside the club. Look at youth employment. In 2010, Labour left office with youth unemployment at about 20%. Right now, even after a global pandemic, youth unemployment is at 11.3%—almost half. Look at the long-term unemployed. In the 2000s, as we have already heard, Labour left about 1.4 million people unemployed for longer than 12 months. Today, the figure is 270,000, roughly a quarter of the number under the terrible record of Labour. Look at the people who are harder to employ—those, perhaps, with disabilities. Under this Government, there are 1.3 million more people with disabilities in employment than before 2016. That is the proud record of this Government. This Government do not pontificate about pay and employment; they get on with creating a dynamic labour market, supporting those most in need, not the union paymasters.

We have created a labour market not just by removing barriers to employment, but by having a benefits system that always makes work pay: the universal credit system, the destruction of which the right hon. Member for Islington North (Jeremy Corbyn) made the key plank of his 2019 election manifesto. Labour Members all fought the last election on the basis that they wanted to get rid of universal credit, and the right hon. and learned Member for Holborn and St Pancras (Keir Starmer) continued that policy. In October 2020, when he was already leader of the Labour party, he said that “in the long term” universal credit needed to be replaced

“because… it traps people in poverty.”

However, given what we have heard from the hon. Member opposite, that now appears to be Labour policy.

--- Later in debate ---

[Chris Stephens]

It is also bad employers, and they should be tackled too.

[Andrew Gwynne]

The hon. Gentleman is absolutely right. What is reckless for the economy is a disastrous mini-Budget which has left millions of householders with mortgage rates higher than they would otherwise have been that are locked in for the future, as well as higher inflation and spiralling energy costs as a consequence. That is the real impact of this Conservative Government on the economy.

In the north-west today, there are 57,000 more people who are economically inactive between the ages of 50 and 64 than there were in 2020. We hear a lot from this Government about growing the economy, but there seems to be no appreciation of the fact that, unless we get people back to work, the economy will remain stagnant. I represent brilliant, talented and hard-working people who are effectively being shut out of accessing the labour market because of long-term sickness or because the support just is not there to get them through the door.

Denton and Reddish straddles two local authorities, Tameside and Stockport, so I see two of everything. Sadly, that means I have seen two almost identical rises in the economic inactivity of my constituents since 2019. In Stockport, we have seen a 2.1% rise, and in Tameside, that figure sits at 1.7%. Across both local authorities, there are over 12,500 people currently claiming universal credit because they cannot access a job that pays sufficiently. Let us be clear: these are not people who have decided that work is not for them and have dropped off the grid—these are people who want to contribute but are finding that the door is locked.

Let us take long covid as an example. I speak with personal experience on this subject, because I suffered from, and indeed still have some of the symptoms of, long covid after my first bout of covid in 2020, and it is of great interest to me in my other role as shadow public health Minister. We know that there are around 2 million people living with this condition in the United Kingdom—that is 3% of the population—but there has been no meaningful effort from central Government to ensure that reasonable adjustments are being made in the workplace, and it can be done. Mr Speaker and those in the Speaker’s Office accommodated me. I found that bobbing up and down was exhausting and basically wiped me out, and a simple, reasonable adjustment was for me to hold up the Order Paper so that I could be called to speak. For everybody else, however, it is business as usual, with long covid sufferers being forced to navigate a system that has not adapted to their needs.

The Government have failed to provide specialist help for those with long-term ill health, to invest in upskilling or to target employment support at hard-to-reach groups. Instead, they have outsourced large sums of money to deliver schemes such as kickstart and restart, which are massively under-delivering. They are obsessed with slogans, but not bothered about whether they deliver on their promises. In the last 13 years, regional inequalities have widened, health inequalities have soared and our economy has flatlined. Despite that, Government Ministers still parrot the phrase “levelling up” without an ounce of shame or self-awareness. We can do much better.

Labour’s plan will devolve employment support, overhaul work capability assessments and provide targeted help for the over-50s and those with long-term ill health, which would be truly transformative for the people I represent. My constituents are tired of warm words with little substance. It is time for the Government to move out of the way and let Labour get on with the job of breaking down the barriers to opportunity and getting our economy firing on all cylinders again.

Benefit Sanctions

Chris Stephens Excerpts

Tuesday 13th December 2022 Westminster Hall

[Chris Stephens (Glasgow South West) (SNP)]

I beg to move,

That this House has considered DWP’s policy on benefit sanctions.

It is a pleasure to see you in the Chair, Mr Pritchard. I refer colleagues to my entry in the Register of Members’ Financial Interests, particularly my position as chair of the PCS parliamentary group as I will be mentioning some issues that appertain to staff who work in the Department for Work and Pensions. There are three components to what I want to raise this afternoon: the latest figures on sanctions, the policy itself and some of the challenges, and the pressures facing DWP staff.

The latest figures on sanctions are shocking. In my written question 88916, I asked,

“how many benefit claims were subject to sanctions in the last three months for which data is available by constituency; and how much was the (a) total and (b) average sum of benefit income lost by claimants due to sanctions in each constituency.”

Members can refer to that particular written question and answer. In June 2022, just over £34 million was clawed back by the DWP in Great Britain. In July, it was £34.9 million and, in August, it was over £36 million, so the figures are increasing month on month. In Scotland, the August figure was £2.3 million, and in Glasgow South West the figure was £57,000. The average deduction in August was £262 a month, which is a considerable sum of money to deduct from someone’s social security. The figures suggest that the aggressive attitude we saw between 2013 and 2015 is back among us. The raising of the administrative earnings threshold means that 600,000 more claimants could be subject to a sanction, and that will include raising the number of people responsible for delivering the benefits being sanctioned, as I will come on to.

We know the history of benefit sanctions. The coalition Government said their Welfare Reform Act 2012 would

“lay the foundation for a clearer and stronger sanctions system that will act as a more effective deterrent to non-compliance.”

They made changes in three main areas. First, they extended the scope of conditionality and sanctions within the same claimant groups. Secondly, they increased the length of sanctions for certain groups. Thirdly, they introduced the concept of escalating sanctions, with longer sanction periods for second and third sanctionable failures within a 12-month period.

However, the then Secretary of State for Work and Pensions, Amber Rudd, had concluded that three-year sanctions were rarely used and were counterproductive, and ultimately undermined the goal of supporting people into work. The Work and Pensions Committee report in 2018 found that some claimant groups, such as single parents, care leavers and people with health conditions or disabilities, were disproportionately vulnerable to and affected by sanctions.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

A few months ago, a vulnerable constituent contacted me after she had been sanctioned for missing an appointment, despite being assured that she did not need to attend it for very good and sensitive reasons. She was an older woman who had been through extreme trauma and who had no access to the internet and no mobile phone credit. Does my hon. Friend agree that a more humanised approach must be taken by the DWP?

[Chris Stephens]

I thank my good and hon. Friend for that intervention. I will mention similar specific case studies, and there are clear questions for the Department to answer on this matter.

Going back to the Work and Pensions Committee 2018 report, it criticised the fact that a sanction incurred under one conditionality regime continues to apply even if the claimant’s circumstances change and they are no longer able or required to look for work. The report said that the sanction serves no purpose in such circumstances, and the Work and Pensions Committee recommended that it be cancelled. It further criticised the fact that the decision to impose a sanction is made by an independent decision maker

“who has never met the claimant and who cannot be expected to understand fully the circumstances that led to them to fail to comply.”

It therefore recommended that work coaches should be able to recommend

“whether a sanction should be imposed”.

The Government responded to the report and each of the Work and Pensions Committee’s recommendations in January 2019. They agreed to evaluate the effectiveness of reforms to welfare conditionality and sanctions, and said that it would be focused on whether sanctions within the universal credit regime are effective at supporting claimants to search for work. The Government said they would look to publish the results in spring 2019, but that did not happen, and DWP Ministers were still saying in July 2020 that the Department was committed to conducting an evaluation and that it would look to so by the end of 2020. In January 2022, however, The Guardian reported that the Department for Work and Pensions had refused a freedom of information request from Dr David Webster to release a copy of the evaluation.

In February, it was reported to the Lords that the Department had not published its evaluation of the effectiveness of universal credit sanctions because it lacked robust legacy data. The former Secretary of State told the Work and Pensions Committee—in fact, it was in answer to the Chair, the right hon. Member for East Ham (Sir Stephen Timms), who is present—that she had noted that the evaluation had been commissioned by a previous Administration, and she explained that the notion of a sanction acts not only through its imposition on a claimant but, importantly, through its effect as a deterrent. That raises a couple of questions.

[Sir Stephen Timms (East Ham) (Lab)]

I am grateful to the hon. Gentleman for his points about the Select Committee’s report, and I pay tribute to him for his work on this subject. I understand that his membership on the Committee will shortly come to an end, but I thank him very much for all his work.

The hon. Gentleman will have heard the new Secretary of State say that he will want to have a fresh look at whether some of the things that the Department has refused to publish in the past should have been published. Does the hon. Gentleman agree that this particular report should be high on that list of priorities?

--- Later in debate ---

[Chris Stephens]

It should be among the highest. I thank the Chair of the Select Committee for his very kind words, which I appreciate. I have enjoyed working with him, and he chairs the Committee very effectively indeed. He is absolutely correct to say there is a real question about reports that are currently unpublished but should be published, and I will come to some of them in my remarks.

I would argue that the dugs in the street—or the dogs in the street, for those not from Scotland—could give us a comprehensive picture of sanctions and their effects on people. When I secured the debate, Feeding Britain and the Independent Food Aid Network asked for case studies and examples. I raised one with the Secretary of State at the Select Committee hearing about a Glasgow South West constituent who has been diagnosed with Asperger’s syndrome and severe anxiety, and who has extreme difficulty communicating with others. The local jobcentre applied a sanction after she failed to attend in-person appointments, despite the fact that, as part of a claim for employment and support allowance, it was agreed three years ago that reasonable adjustments would have to be made and that telephone meetings would be arranged for her. It raises the issue of the financial losses that occur, but the Department for Work and Pensions argued that there was no change of circumstances and that no sick notes were handed in.

We also have the example of an individual in Motherwell. A young mother who had escaped domestic violence was sanctioned for failing to attend an appointment, despite the fact that she had advised the Department for Work and Pensions that she needed to care for her autistic child on that particular day.

In the city of Liverpool, clients have commented that DWP job coach appointments have come through to their phone journals at times when they had no credit for data or access to wi-fi. By the time that each was able to afford to that phone data, they had missed the appointment and been sanctioned. Digital exclusion will increasingly affect clients who are unable to afford a basic smartphone and/or a contract for data access. They then face longer journeys to their jobcentre as a result of one of the busiest jobcentres in that city, Toxteth, being due to relocate, making access harder for local people.

In Coventry, we are advised that the vast majority of sanctions are due to people not attending an appointment, but many are now told of their appointments through an online journal so, again, people with no access to internet are being told that they are going to be sanctioned.

In Somerset, we hear of the case of someone with severe mental health issues and anxiety, whose job coach assured her that any correspondence would go to the principal carer. Ordinarily, she was informed of her appointments via a journal entry. The job coach cancelled a planned appointment and arranged a new one, but put it on that job coach’s to-do list, not through the online journal. This is an area that has to be looked at, because that person was subject to a sanction.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

Will the hon. Member give way?

[Chris Stephens]

I give way to my fellow Select Committee member.

[Debbie Abrahams]

I congratulate the hon. Member on securing this debate, and on all his work on the Select Committee. Is he as worried as I am that this is just a further iteration of the DWP sanctions issues going back to 2012? I particularly remember David Clapson, who was the first case that I came across—a former soldier who was sanctioned. He could not afford to keep his refrigerator on, his insulin went off, and he died as a consequence. Is the hon. Member as concerned as I am about sanctions potentially resulting in deaths?

[Chris Stephens]

I thank the hon. Lady, who is a good friend, for her intervention. She has done fantastic work in this area, which I very much support. I am concerned about the effects that sanctions have, and that the whole deductions policy has. The effect that taking money away from people has on cost of living payments is another real issue, which I will come on to.

I would also add that, based on exchanges I have had with Ministers past and present, people can be sanctioned if they refuse a zero-hours contract job. Someone could be in a position where they have secure work, but less hours. The Department is encouraging people to increase their earnings, so if that person refuses a zero-hours contract and insecure work, they will be subject to a sanction.

Then, we have the position of the DWP staff themselves. Some have received letters saying that they need to increase their earnings. It is no wonder that they are going on strike, is it? There is an anomaly here: many thousands of DWP staff are paid so poorly that they are claiming the same benefits they deliver, while sharing an office with someone who could then sanction them because they have not increased their earnings or their hours. I find that completely and utterly bizarre, and I hope that Ministers will look at PCS’s concerns and maybe treat the situation of DWP staff separately. It seems to me that the Department that is delivering social security should not be taking social security away from the people who are delivering it.

Food banks across the Independent Food Aid Network see a newly hungry person referred as the result of a sanction every three days on average, so I have a number of questions for the Minister. Does he agree that the current sanctions policy is forcing people to use food banks if they are not to go hungry? To that end, will the Minister undertake to publish the Department’s evidence review on the drivers of the need for food aid, which was promised two years ago, yet remains under wraps? As the Chair of the Select Committee, the right hon. Member for East Ham, has outlined, that is one of the reports that remains unpublished, and it is something that we want to see.

The Department’s own serious case panel agreed at its October meeting that

“there should be further collaborative work undertaken through the appropriate governance routes to explore strengthening the mechanisms which protect our most vulnerable customers in respect of sanctions.”

Will the Minister explain to us what that collaborative work will look like, and when it will take place? Will he also undertake to commission a study into any correlation that exists between the distance someone lives from their nearest Jobcentre Plus and the likelihood of them being sanctioned; the prevalence of poor mental health and vulnerability within households on universal credit and the likelihood of them being sanctioned; and the prevalence of digital exclusion within households on universal credit and the likelihood of them being sanctioned? We know that the Department has closed jobcentres; we also know that has made it more difficult for people to attend jobcentres and that they may be sanctioned for not attending a jobcentre.

Will the Minister also provide an update on the Department’s most recent trials of the yellow card early warning system in two areas, including any plans to roll out that system further afield? I do not accept that there should be conditionality in the system, but if we are going to have conditionality it seems sensible to me that there should be a yellow card system, or some sort of warning system, in place before the decision is made to issue a sanction. Given that the present system seems to rely heavily on individual discretion, which is resulting in people becoming destitute, does he agree that a fully national roll-out of a yellow card system is needed sooner rather than later?

As I have indicated, people being subject to a sanction could mean—indeed, has meant—that they do not receive their cost of living payment, but that decision could be reversed if they appeal and win their appeal. However, it seems to me that if there are 6,600 universal credit claimants who have missed out on that first cost of living payment because of sanctions, the Department for Work and Pensions should look at that situation. It seems to be a double punishment. The cost of living payment is in place so that people can meet their basic living needs and if they are sanctioned, it appears that there is something very wrong.

[Anne McLaughlin (Glasgow North East) (SNP)]

I agree with my hon. Friend that sanctioning people on the lowest of incomes at any time is grossly unfair, but at this time, when even many people in well-paid work are struggling to pay their bills, it is obscene. I had not been aware, so I thank him for highlighting it, that some people are not getting the cost of living payment that the Government say we need to survive.

I congratulate my hon. Friend not only on securing this debate, but on asking the questions that led me to discover that this summer £153,000 was taken from my constituents by DWP sanctions. Will he join me in saying to his constituents, as I am now saying to my constituents in Glasgow North East, “If you have your benefits sanctioned, do not take it lying down. Contact me and I will fight this for you, because this is wrong and nobody should have to live on less than the minimum income”?

[Chris Stephens]

I thank my hon. Friend for that intervention and she is absolutely right. We are in a cost of living crisis. During the pandemic, the Department rightly took the view not to sanction people. We are now in a cost of living crisis, and if we did not sanction people during the pandemic, we should not sanction them during a cost of living crisis either. That seems to me to be a sensible approach.

My hon. Friend is also correct in highlighting the great work that constituency office staff do in helping the most vulnerable to see off these attacks. We have all dealt with cases of people being sanctioned; I think that every single constituency office across these islands has had to deal with that.

In closing, I will mention some of the staff concerns. There are concerns that jobcentres have been told by senior managers and Ministers to “up their game” when it comes to sanctions. There are very real concerns about the culture and certainly there is a view that there needs to be a mind-shift towards supporting people in what is important and that punishment has not achieved anything. There is very limited and patchy evidence that sanctions actually work.

There is inter-office competition, whereby different offices’ statistics are compared, pushing for higher sanction and deferral rates, and labour market decision makers are using box-ticking exercises. Pressure is put on the work coaches themselves, through tighter timescales and pushing people to physically attend the jobcentre, with the harms that causes the long-term employed. There are also real effects on disabled claimants who are thrown into a group of those most likely to get a sanction, and the relative rate of sanctions for claimants with disabilities—all of that really needs to be explored further.

Sanctions appear to be back with a vengeance, and that shift of approach requires parliamentary scrutiny. As someone who believes that conditionality has not worked, I think we need a change in approach to put the claimant and their needs at the heart of the social security system. The Department must accept the Select Committee’s recommendations to introduce either a yellow card system or another warning system, because failure to do so would mean the Department going back on its word in how it responded to previous Select Committee reports. I look forward to hearing whether colleagues have to say, including whether they accept—as I do—the need for change and reform.

--- Later in debate ---

[Ms Karen Buck (Westminster North) (Lab)]

It is a pleasure to respond for the Opposition to this short and important debate under your chairmanship, Mr Pritchard. I, too, congratulate the hon. Member for Glasgow South West (Chris Stephens) on introducing the debate and making a powerful speech. We have heard powerful contributions, and many who spoke drew on their own experiences of cases as well as cases brought to them by advice agencies in their constituencies.

Before the debate, I asked my local citizens advice bureau about the changes it had experienced in terms of clients with concerns about sanctions. It told me that there has been an increase in calls for help, including appeals from clients who were bedbound when the sanction was imposed because they had covid and were quarantining. I was told about someone who was sanctioned for attending a funeral and about a young woman who was forced to leave her home because she became pregnant outside marriage and feared for her safety. She was sanctioned for not wishing to return to a jobcentre near her family home in order to attend an appointment.

What has come through all of the speeches is the strong theme—it is a theme that has come up time and again whenever we have debated social security issues over recent months and years—of the impact on mental health. So many of the clients who come to us asking for help with sanctions and other aspects of social security problems are highly vulnerable and sometimes chaotic in their vulnerability, as my right hon. Friend the Member for Hayes and Harlington (John McDonnell) stated. Sometimes they have significant mental health concerns that should have been a red flag.

As we have heard, this debate is well timed because over the last few months it has become increasingly clear that the DWP’s approach to sanctions has changed in ways that Ministers have so far been unwilling to explain or justify. The evidence lies in the sheer volume of sanctions that the Department has been handing out. Let us not be distracted by the suspension of most forms of conditionality during the pandemic. That was, of course, the right thing to do, and obviously that meant there was bound to be some degree of a resurgence in sanctions once things opened up again. But that does not explain—and this point has been made several times this afternoon—why sanction levels and rates are so much higher now than they were before the pandemic.

Several Members have referred to the work of Dr David Webster, whose regular briefings on sanctions for the Child Poverty Action Group have served to bring the issue to the fore. He finds that the number of sanctions handed out per month in May to July of this year was on average 45,000, equivalent to 2.5% of people on universal credit subject to conditionality, compared with 1.4% in the three months before the pandemic. That increase in the number of adverse sanction decisions is reflected in the cumulative number of people on universal credit serving a sanction at any point in time. Dr Webster writes:

“The number of universal credit claimants who were serving a sanction in August was 115,274…more than three times the pre-pandemic peak of 36,771 in October 2019.”

Of course, there were more people on universal credit in August 2022 than in October 2019, but as Dr Webster shows, the percentage of universal credit claimants subject to conditionality serving a sanction was 6.4% in August, more than double the pre-pandemic peak of 3.1% in October 2019. And for unemployed people—those in the searching for work group—Dr Webster estimates that nearly 8% were under sanction in August 2022. My first question to the Minister is: how have we arrived at a situation where one in 13 unemployed universal credit claimants are currently under sanction?

We should be under no illusion that sanctions are just a slap on the wrist for claimants. Typically, sanctions involve the withdrawal of 100% of the universal credit standard allowance, and even the reduced rate for the lowest level of sanction is 40% of the standard allowance. And except for the lowest level sanctions, the penalties continue after the person sanctioned has complied with the rules—for seven days rising to 28 days for low level sanctions, while higher level sanctions apply for 28 days and 91 days rising to 182 days, depending on whether there have been previous failures to comply in the same year.

An increase in the sanction rate is not just a technical matter. People on universal credit do not have a margin of income that they can fall back on to weather an interruption to benefit payments—all the less as the four-year benefit freeze has permanently eroded the real-term value of benefits.

There is an urgent need to understand what lies behind the increase. Has there been a revolution in people’s behaviour or attitudes since 2019? If so, what is the evidence for that? Has the level of non-compliance with conditionality really doubled since the pandemic? Have there been operational changes leading to more sanctions being issued without any change in the level of compliance? Has there been a change in the Department’s policy on sanctions? Or is the increase an unintended consequence of other factors? in other words, is the sanctions regime out of control?

The purpose of sanctions has been well described by Professor Paul Gregg as a backstop to the system of benefit conditionality. The point is that while sanctions set at a reasonable level serve an important function, they are not an end in themselves. A sudden increase in the number of sanctions such as we have seen should be seen by any responsible Government as a cause for concern rather than for self-congratulation. It raises the fear that the sanctions tail is wagging the conditionality dog, that the Government are more concerned with signalling toughness than with improving employment outcomes, and that the purpose of conditionality has been twisted towards catching people out rather than maintaining contact with the labour market. Or, no less worryingly, it raises the fear that the number of sanctions has shot up because the Government have lost control of the sanctions regime and no longer know what they are doing.

The fact that the Government have suppressed their own research into the effectiveness of the universal credit sanctions regime is hardly reassuring. In 2018, in response to a Work and Pensions Committee report, the Department agreed to

“evaluate the effectiveness of reforms to welfare conditionality and sanctions,”

and said that this would focus

“on whether the sanctions regime within Universal Credit (UC) is effective at supporting claimants to search for work.”

It said that it would publish the results in spring 2019, but we know what happened. The research was undertaken, but earlier this year the last Secretary of State but one—the right hon. Member for Suffolk Coastal (Dr Coffey)— reneged on the commitment to publish the results. That is the behaviour of a Government who are uninterested in learning lessons, and evasive of public scrutiny.

[Chris Stephens]

I thank the shadow Minister for making that important point. The same applies to the drivers of food bank use, which include sanctions.

[Ms Buck]

Sanctions are indeed an important driver of the increase in food banks, which is another symptom of widespread structural failure in the system.

It would be refreshing if the new Secretary of State took a different view of the matter. A doubling in the rate of sanctions in the context of a cost of living crisis and permanent reductions in the value of benefits is a serious matter. I hope that the Minister can give a suitably serious response.

--- Later in debate ---

[Chris Stephens]

I thank everybody who participated in the debate. A number of outstanding questions remain; I look forward to the Minister’s response with the specifics.

We are in a recession. There are far too many people being sanctioned. There is an impact on people’s mental health. There is a social and financial impact, and I do think we need an answer to the question of why cost of living payments have been taken off people who have been sanctioned. It is bad economics. I am offering the Minister a meeting with me and reps from the Public and Commercial Services Union. They will explain the concerns that staff have about the sanctions regime.

Question put and agreed to.

Resolved,

That this House has considered DWP’s policy on benefit sanctions.

Oral Answers to Questions

Chris Stephens Excerpts

Monday 31st October 2022 Commons Chamber

[Mel Stride]

I am in the process of reviewing just that matter and many of the others that we have discussed, so we will have to wait, but it is one of the matters that is under review.

[Chris Stephens (Glasgow South West) (SNP)]

We look forward to the Secretary of State appearing before the Work and Pensions Committee. Can he give us an assurance before he does so that the Department will publish the systematic evidence-based review of food bank use that it promised to publish and place in the Commons Library two years ago, so that we can debate the policy issues required to eliminate hunger across these islands?

[Mel Stride]

I look forward to appearing before the hon. Gentleman and his fellow members of the Committee. He raises a specific point, and I will look into it and come back to him.

No-fault Benefit Debts

Chris Stephens Excerpts

Thursday 21st July 2022 Commons Chamber

[David Linden]

I thank the hon. Gentleman. When I and the hon. Member for Lancaster and Fleetwood (Cat Smith) visited his constituency office on holiday during the Easter break, I saw at first hand how hard he works for his constituents; there were piles of casework all around him that day. His intervention is born of the fact that he is a hard-working constituency MP and can see the reality of this issue. He is right to call for that special clause.

Speaking about the rule before the introduction of universal credit, the then Employment Minister, the right hon. Member for Epsom and Ewell (Chris Grayling), said:

“The practical reality is that we do not have to recover money from people where official error has been made, and we do not intend, in many cases, to recover money where official error has been made.”––[Official Report, Welfare Reform Public Bill Committee, 19 May 2011; c. 1019.]

Yet the DWP almost always asks for the money back now. Overpaid claimants can ask the DWP to waive recovery, but only about 10 waiver requests were successful in 2020-21, set against 337,000 new overpayments caused by DWP mistakes in the same period. The DWP openly asserts that it will abandon recovery only in “exceptional” cases.

When the DWP insists on recovering a no-fault debt, it has the power to make large deductions from somebody’s future universal credit payments—up to 15% of their standard allowance. To be clear for those watching today’s proceedings at home, I should say that the standard allowance is the amount that the Government believe a person needs to live on, so reducing it by 15% certainly causes hardship. The Government have already suspended energy companies from that, so why on earth are they doing it?

All this is out of line with basic ideas about fairness and fault. The rules about recovering overpayments are very different from what they were for the legacy benefits and tax credits that the universal credit system replaces.

[Chris Stephens (Glasgow South West) (SNP)]

I thank my hon. Friend for securing the debate. There is another issue here—this goes back to fairness—about the case law on the overpayment of wages, where there is an error in law and an error in fact. Perhaps that is something the Department should reconsider.

Oral Answers to Questions

Chris Stephens Excerpts

Monday 11th July 2022 Commons Chamber

[Julie Marson]

It seems churlish, on day one, to mention the Labour party’s record on jobs. Every time it has left power, it has left more people unemployed than when it started.

[Chris Stephens (Glasgow South West) (SNP)]

9. What support her Department is providing to benefit claimants to help meet increased living costs.

[The Parliamentary Under-Secretary of State for Work and Pensions (David Rutley)]

Our £15 billion cost of living package includes a one-off £650 cost of living payment to low-income households in receipt of a means-tested benefit, a one-off £150 disability cost of living payment, and a £300 top-up to the winter fuel payment for pensioners. That is on top of a wider package of measures that takes the total Government help for households to £37 billion this year.

[Chris Stephens]

The Minister will be aware that during a recent Work and Pensions Committee meeting, the Secretary of State told me that she was not satisfied with the progress of bereavement benefits for cohabiting partners, and that she was meeting her officials the next day. When will the second remedial order be laid so that people who would qualify for that benefit can meet their living costs?

[David Rutley]

The hon. Member is a determined terrier on this issue, and understandably so. Important issues have been raised and it is vital that we get it right. We are carefully considering the issues and we will lay the order before the House as soon as we are able. In parallel, DWP officials are working at pace on implementation plans for the order, as I have discussed with him separately.

Cost of Living

Chris Stephens Excerpts

Tuesday 5th July 2022 Commons Chamber

[Chris Stephens (Glasgow South West) (SNP)]

It is a pleasure to follow my good friend, the Chair of the Work and Pensions Committee, the right hon. Member for East Ham (Sir Stephen Timms), and it is a pleasure to be a member of that Committee in holding the Government to account. I of course refer to my entry in the Register of Members’ Financial Interests, particularly my role as chair of the PCS parliamentary group, as I will have some things to say about the office closures issue.

I want to start with the Secretary of State’s appearance at the Work and Pensions Committee last week, when she said that, on Thursday, she was going to meet her officials to discuss a second remedial order on bereavement support benefits for cohabiting couples. This is a very important issue, and we have had many great campaigners, including my Glasgow South West constituent Ailsa MacKenzie, who has been in the vanguard of pushing this issue. I hope the Minister will update the House on that issue, because it affects many thousands of people. The quicker we get the remedial order laid down, the quicker people can start receiving those bereavement support payments, which will no doubt help them deal with the cost of living crisis.

Let me touch on what I think lies at the heart of the problems in the Department for Work and Pensions: the start of the claim, the five-week wait and the deductions that come with that. The Minister responded to a written question from me, and the figures are becoming increasingly alarming. Ever since, I have periodically tabled such questions, and the number of deductions and the amount deducted have increased over the past 18 months. A total of £11 million a month is now being taken off claimants as a result of deductions. In my view, that has become a poverty tax.

For example, figures show that in February this year, 189,000 households in Scotland—an increase of 9,000 in just three months—had an average of £60 deducted from their social security payments. That is mainly to pay back the loans issued by the Department to cover the five-week wait at the beginning of a new claim, but some of it is due to overpayments, which include the Department’s errors. I hope the Department will look at that issue, because there is already case law when it comes to pay. By law, if there has been a mistake and someone has been overpaid, the employer cannot take that back. I suggest that if the Department has made a genuine error, it should not be deducting payments from future claims. I hope the Government will look at that, because a number of organisations have said that a deduction should not be made if the Department for Work and Pensions is to blame.

[Kirsty Blackman (Aberdeen North) (SNP)]

Does my hon. Friend share my concern about the lack of reassurance regarding top-up payments, as announced by the Chancellor last week? We may end up in the same situation, because if DWP accidentally gives that money to someone, it might try to claw it back, putting people in an even worse state of poverty than they are in already.

[Chris Stephens]

I share that concern, and I hope the Department will respond positively to the concerns that hon. Members, including my hon. Friend the Member for Aberdeen North (Kirsty Blackman), have raised.

On departmental error, taking £60 a month from people who require state support can be the difference between whether they can buy food or not, or whether they can heat their homes. I am sometimes a bit concerned about the phrase “heat or eat”, because some people will now not be able to do either. That is the desperate situation that far too many people face across these islands, particularly with the cost of living being so high.

On the one-off payments, the Department appears to have conceded the point that grants are better than loans. I welcome that, but I hope it will now look seriously at the report by the Work and Pensions Committee about the five-week wait and introduce a non-repayable grant—a starter payment, as we call it—within two weeks of the claim. That would stop people getting into debt as a result of deductions, and I suggest that it would save money on administration, compared with paying people after five weeks and then deducting £60 a month from them. It seems a false economy to insist on continuing the five-week wait, and then going back and deducting money from people’s claims.

A good friend of mine, Andrew Forsey, director of the charity Feeding Britain, which is involved with Threehills community supermarket in Glasgow South West, recently said:

“Last year, figures like these prompted the DWP to lower the cap on deductions and double the length of time people had to repay those upfront loans. What these latest figures show is that there remains a lot more work to be done, to bring these deductions down still further, if people are to have the money they need each month to put food on the table.”

The Chair of the Work and Pensions Committee mentioned no recourse to public funds, and I agree with what he said. I hope the Department will look seriously, once again, at the Committee’s report that recommends extending child benefit to all children, irrespective of their parents’ immigration status. The right hon. Gentleman laid that out well, and, as someone who represents a city that has signed up to the Home Office’s asylum seeker dispersal scheme, I know this is a very real issue. In areas where asylum seekers have become refugees, it was certainly an issue during covid. I hope the Department will go back and look at that.

We need more resources to go into ensuring that those who are entitled to pension credit receive it. It is reckoned that between 65% and 70% of people who are entitled to pension credit receive it. I would like the Department to do more work on that, and I would like more resources to go into working with pensioners’ groups and various third-sector organisations to ensure that those who are entitled to pension credit get it. It seems to be a very real issue, and some of the statistics from the independent charity Age UK about the amount of unpaid claims for pension credit suggest that the figure is far too high; it is in the millions. Frankly, that pension credit could do a lot of good for pensioners who are dealing with increasing food and fuel costs.

Finally, let me raise my concern about office closures by the Department for Work and Pensions; I know that you also have a constituency interest in this subject, Madam Deputy Speaker. We have Government offices in areas of high economic deprivation, and the Department is one of the largest employers in some constituencies, but it wants to close those offices. That will not just impact on people employed by the Department, although of course it will do that, but have a wider effect on the economy. Many small businesses round and about those offices rely on custom from people who work in the Department, and I refer the Minister to my hon. Friend the Member for Glasgow North East (Anne McLaughlin), who has done a survey on this issue in relation to the proposed closure of the Springburn office.

The Department seems to want to take out far too many of the 91,000 jobs that the Government want to cut. The Department responsible for employment and helping people get into work really should not be laying off its own workers and throwing people into unemployment; that would send completely the wrong message and make no sense whatsoever. I will leave it there, Madam Deputy Speaker, and I hope—indeed, I am sure—that I will get a positive response from the Minister to all the points I have raised.

--- Later in debate ---

[Debbie Abrahams]

I recognise what the hon. Member says. I visited Glasgow last week—the constituency of my friend the hon. Member for Glasgow South West is there—and it was interesting to see the reforms being introduced there, particularly those for disabled people.

Many hon. Members will not be aware of yesterday’s report from Deaths by Welfare, which provided even more evidence of the impact of the so-called reforms on premature deaths and suicides. It had a timeline that showed when there had been reforms and further cuts, and what they meant in terms of deaths of vulnerable social security claimants. Another recent report shows a detrimental impact on social cohesion. The University of Newcastle quantified that, between 2013 and 2015, for every £100 lost in income per working age adult, motivated hate crimes increased by about 6%. The effects are much wider than the Government recognise.

My second point is about the pandemic. We know that people on the lowest incomes, and particularly those reliant on social security support, were disproportionately and negatively affected by covid. They were more likely to be exposed to the virus and to be infected, and they were more likely to be seriously ill and die. Within that group are disabled people. After adjusting for a range of factors including health, the Office for National Statistics has estimated that disabled people were between 1.3 and 1.6 times more at risk of death from covid. The reasons for those disproportionate deaths must be investigated in the covid public inquiry, but given the context that I have just described—the inadequacy of our social security system—the contribution of the cuts in social security support cannot be ignored.

On the cost of living package and its impact on the DWP spending estimates, of course I welcome the package, but I have just spent the past few minutes describing the context and, much though the Government congratulate themselves on what they are doing, it just about scratches the surface of the cuts that they have made. I must, as others have done, highlight some of the gaps in the package. As support is on a household basis, larger families will not get the same support as smaller families. As the Resolution Foundation suggested, in the light of inflation, a 9.5% uplift to all social security support would have been more progressive than the 3.1% awarded at the beginning of the year, and would have taken us beyond the Chancellor’s stop-start, ad hoc approach.

My concern is that the cost of living will not just be an issue this year; it will carry on—and what will the Government do then? We need principles that ensure that all social security support is uplifted to account for inflation.

As my friend the hon. Member for Glasgow South West mentioned, there are huge issues with deductions. We asked the Secretary of State about that last week. The Joseph Rowntree Foundation, StepChange and many other charities have pointed out that 4.6 million households are in arrears on at least one bill, so what is handed out with one hand will be clawed back by another. I join those charities and hon. Members in their calls to reduce the amount that can be deducted from the universal credit standard allowance; it is now 25%. I would like it to be less than 15%. When the deductions are for debts to Government—figures indicate that the Government are the largest debt collector—it would only be reasonable to reduce it to 5%.

My final point is that given the cuts in spending and the culture in the Department, our social security system does not provide the safety net that everybody thinks it does. I really like the approach being introduced in Scotland, which is not about people proving that they are entitled to support; there is trust. We should try to make that the basis of the culture in England as well.

[Chris Stephens]

I thank the hon. Lady, my good friend, for giving way. She mentions culture; there is also the issue that sanctions are part of that culture. It had seemed that we were persuading the Government to introduce a system in which there were warnings before sanctions, but they seem to have rowed back on that. Does that not add to the concern that she rightly raised about the culture?

[Debbie Abrahams]

We have spoken many times about that. My hon. Friend is absolutely right. We have a system in which there is conditionality, but I believe that there are other ways of recognising that than by taking away somebody’s income and making things even harder for them.

--- Later in debate ---

[Kirsty Blackman (Aberdeen North) (SNP)]

It is a pleasure to take part in this estimates day debate. I do love estimates day; it is wonderful every time that this rolls around—I am not being sarcastic, I promise.

I will talk briefly about the shortcomings of the estimates process. We are discussing the DWP estimate today—which involves spending of £240 billion—under, I think, Standing Orders 53 and 54, which were written before I was born. We are unable to table meaningful amendments in relation to £240 billion of spending because of the way in which the Standing Orders are written. That is shocking. Has anyone here ever tried to explain the Budget process to people outside the House? Have they ever tried to explain the fact that we have to stand here and discuss hundreds of billions of pounds of expenditure without any meaningful way to amend that? It is absolutely ridiculous, flawed and deeply inadequate.

The DWP’s objectives in the main estimates book are, first,

“Maximising employment and in-work progression”;

secondly,

“Improving people’s quality of life”;

and thirdly,

“Delivering excellent services for citizens and taxpayers”.

Those are the Department’s aims for the next year. I suggest that the Government have failed and continue to fail in what they are doing. I make it clear that that is not, for a second, the fault of DWP staff, who are working incredibly hard to make the social security additional payments.

[Chris Stephens]

Is it not ironic that the DWP says in the main estimates book that it wants to maximise employment when it is threatening its staff with redundancy?

[Kirsty Blackman]

It is, and it is ironic that the DWP is asking staff to step up and deal with its creaking, unfortunate, flawed computer system. It is asking them to do all this additional work to make that happen while failing to make the investment where it should be making it, in the computer system and in the people. I am also seeing a reduction in DWP office staff in Aberdeen. I very much hope that the Government change their mind about the direction in which they are going.

We have heard from Members across these Benches about the issues affecting people’s quality of life as a result of the DWP’s failures and the failures of the Government’s policies. Loads of people have mentioned the safety net. The whole point of a safety net is that it catches people. The point is not to make the holes as big as possible so that as many people as possible fall through. I would rather have a social security system like the one that we are building in Scotland; a social security system that ensures that everybody is caught by the safety net, so that everybody gets what they are entitled to and people do not accidentally fall through. This Government’s policy seems to be to give social security payments to as few people as they possibly can and to try very hard to set the bar as high as possible so that people cannot meet the requirements.

We have heard about the Scottish social security system and its openness compared with the DWP’s system, where the report on food banks and the equalities impact assessment were buried. Audit Scotland recently audited the Scottish social security system. It said:

“The Scottish Government has continued to successfully deliver new and complex social security benefits in challenging circumstances. This is a significant achievement. There is a conscious focus on the needs of service users, building on the principles of dignity, fairness, and respect. People are positive about their experiences of engaging with Social Security Scotland.”

How different that is from the views that we are hearing down here, from what is in our inboxes, from the absolute intransigence and the issues that people face every day when simply trying to get what they are entitled to.

The social security uprating fails to get anything close to inflationary levels this year. We have seen an increase, but it is nothing close to the level of inflation. In fact, the £650 payment that the Chancellor announced does not even cover the £1,000 that was taken off people last year—never mind going any way to cover the increase in the cost of living. The Chancellor, the Minister and the Secretary of State have repeatedly said, “But people are getting more, with the £650, than they would have if we had uprated benefits”. We are asking them to do both. We are asking them to adequately uprate the benefits and backdate that to April as well as to make the additional payments. Only then can we get to a situation that is close to helping with the cost of living.

This is a tale of two Governments. We can see that another country is possible. We can see the failings, with the bedroom tax, the benefit cap and the two-child policy being carried on with. We have heard a lot about no recourse to public funds. When we discussed the Social Security (Additional Payments) Bill last week, I mentioned that children were literally starving and I was scoffed at by Government Members. If we look at reports, we see that junior doctors talk about children presenting with rickets because of the level of malnutrition, because they have no recourse to public funds, because they have been sanctioned, or because they otherwise cannot afford to eat a healthy diet. Comments have been made about the lack of variety and the lack of healthiness in the diets provided by food banks, which try incredibly hard but just cannot meet the requirements. In addition, they cannot provide food for people who cannot afford electricity. If people cannot afford electricity to boil something in a pan, it is difficult for them to cook adequately.

In the main estimates book, the Government talk about providing £5.6 billion—that is the initial spend—under the Social Security (Additional Payments) Bill. However, they mention providing £37 billion for increases in the cost of living. That £37 billion is made up of additional payments, as the Chancellor has stated, but can the Minister confirm that he is including things in it like the freeze on alcohol duty? It cannot be said that the freeze on alcohol duty relates to improving the cost of living for people who cannot afford to eat.

I am pleased to have been able to talk about the DWP estimates today. What is happening is woefully, woefully inadequate. Our constituents are coming to us and we just cannot provide them with the hope that they need and want, because the Conservatives are digging their heels in and refusing to offer adequate support.

--- Later in debate ---

[David Rutley]

As I have said, the Secretary of State will be looking at the wider economic environment when making these decisions.

Let me now pick up some other points that have been made today. The hon. Member for Glasgow South West (Chris Stephens), who is terrier-like in his tenacity, mentioned bereavement orders. The Secretary of State has met officials to discuss the proposed draft order, and they are now working on that as a priority. Others have referred to the five-week wait for universal credit payments. It is not possible to award payments as soon as a claim is made, because the assessment period must run its course before an award can be calculated, and it is not possible to determine accurately what the entitlement will be in the month ahead. Our measures will ensure that the correct entitlement is paid, and will prevent significant overpayments from being made.

[Chris Stephens]

Will the Minister give way, on that point?

[David Rutley]

I will give way, but this is the last time I shall do so, because I need to make some progress.

[Chris Stephens]

I thank the Minister for his generosity in giving way, and also for his generous comments. The Select Committee did not argue that a payment could be made straight away; we argued that within two weeks of a claim, a starter payment could be made. Has the Department considered that as a way of addressing the five-week wait?

[David Rutley]

I have set out our approach, which is to ensure that advances are made available to help people in those difficult circumstances to get the money that they need.

Another point that has been raised is about deductions. We have systematically reduced the amount that can be deducted from benefits from 40% to 30% and now to 25%. If claimants have issues, they can go to the debt management service for further advice and support. Others have mentioned the carers allowance. I want to highlight, as I did in the recent Second Reading debate on the Social Security (Additional Payments) Bill, that the carers allowance is not a means-tested benefit. Nearly 60% of working-age people who are carers will get the cost of living payments, as they are means-tested benefits, or disability benefits. Carers allowance is paid on an individual basis to people in households across the income scale, so they may live in a household that is able to receive the £650 payment or the disability payment as well, which will help them to pay the bills in their own households. We also talked about how larger families will be getting the same payment as individuals. This is because we needed to get the payment out fast to as many people as possible. We will be making the means-tested benefit-related cost of living payment from 14 July, and that is absolutely critical. We were not able to develop a system that would account for every single eventuality.

I conclude by saying that this Government have worked incredibly hard over recent years to ensure that we help people to get into work, that we make work pay and that we support people with the cost of essentials. The latest cost of living payments that have been made and the additions to the household support fund demonstrate that we are absolutely committed to providing this help for households. I would like once again to thank hon. and right hon. Members for their contributions to this important debate.

DWP Office Closures

Chris Stephens Excerpts

Thursday 23rd June 2022 Commons Chamber

[Chris Stephens (Glasgow South West) (SNP)]

I want to raise the issue of Department for Work and Pensions office closures. I draw the House’s attention to my entry in the Register of Members’ Financial Interests, in particular my role as chair of the Public and Commercial Services Union parliamentary group.

Madam Deputy Speaker, I believe you have made representations on behalf of your constituents who are employed in the Department for Work and Pensions. This issue affects DWP staff across these islands. The PCS is the largest trade union in the civil service, representing 180,000 members, with workers throughout the civil service and Government agencies, including 50,000 members employed by the DWP. They are concerned, as hon. Members across the House are, about the DWP’s announcement of 17 March 2022 that more than 40 of its processing sites are to close, which we believe has the potential of putting more than 3,000 jobs at risk of redundancy.

There are three categories of processing site closures. The first is where the site is closing and the work will not be consolidated anywhere in the vicinity. I understand there are 13 sites in that category. The second category is where the site is closing but work will be consolidated into an office that the DWP has deemed is within the vicinity, which I understand is 28 sites. The third category is sites that were originally announced as transitional, which will be retained in the short to medium term but will remain badged as transitional. That is eight sites.

Despite the initial assurances given by Department Ministers at an urgent question I secured, the real concern is that we were told that the closures would not impact frontline services, but a further announcement, on 30 March, was for the closure of five jobcentres. That is very concerning and seems to be the latest push by the DWP to implement its network design strategy, which will put jobs and services at serious risk, and there is concern that the latest announcements could signal further jobcentre closures.

The PCS parliamentary group is clear that, following the previous closures under the people and locations programme, these closures will have a devastating impact on the services that staff provide and the local communities where the offices are based. They are a serious threat to DWP staff jobs.

On 17 March, when the original announcement was made, there were 1,118 staff in processing sites that will close without the work being consolidated within the vicinity and 7,341 staff in sites where the work is being consolidated into other offices. The speed at which the Department is operating and has moved to issue “at risk of redundancy” letters to staff across 25 of the 43 sites vindicates the concerns that many of us have that jobs will be lost as a result of the closures.

While some of the sites in the second category are seeing work moving into buildings that are very close by—the Falkirk and Preston sites, for example—other offices that the DWP has classed as being in the vicinity, and so plans to move staff to, are actually some considerable distance away. That includes the proposal to move the Doncaster office to Sheffield, which you will be aware, Madam Deputy Speaker, is 22 miles away. In many of the offices, one-to-one meetings have taken place with members of staff and it is clear that many will not be able to move; it is therefore certain that many DWP staff will be faced with the very real prospect of redundancy.

There are two processing sites in Wales due for closure from a previous round of closures, where staff have also been confirmed as at risk of redundancy as part of the 16 June announcement. That is because there are more than 120 staff based across the two sites who are unable to make the long journey to the proposed new office. The offices are closing in two tranches. On 16 June, the Department for Work and Pensions announced that, of the 29 sites in the first tranche, at 25 sites a total of 903 staff were at risk of redundancy. We believe that at the remaining 14 sites, which are due to be closed on a slightly slower timeline, similar numbers of staff are likely to be at risk of redundancy.

[Jim Shannon (Strangford) (DUP)]

Will the hon. Gentleman give way?

[Chris Stephens]

No Adjournment debate would be complete without an intervention from the hon. Gentleman.

[Jim Shannon]

Adjournment debates do not usually come this early in the day, Madam Deputy Speaker, as you and I know, but none the less we are very pleased, and I congratulate the hon. Gentleman on coming forward with it. He is assiduous when it comes to these issues, and I thank him for that. I think the whole House should thank him for it, by the way.

Coming from a rural constituency, with intermittent public transport as well as an intermittent internet and mobile service, I know that centralisation or closure of services is never a good suggestion for people in isolated areas. I know the hon. Gentleman is referring to towns, but does he agree and will he call on the Minister to consider, where this is possible, the suggestion of having satellite offices in rural areas such as where I live as well as in the centralised urban areas he has mentioned?

[Chris Stephens]

I thank the hon. Gentleman for that intervention because I have family members in his constituency, as he knows, so I am well aware of his constituency. He raises a very important point about satellite offices, but there is also homeworking. We were told that homeworking was a suggestion, but it seems now that the Government want to force people away from working at home into offices—only the Government are now closing these offices, so there do seem to be some mixed messages from the Government. I do thank the hon. Gentleman for his intervention. He makes a very important point, and I hope the Minister will respond to it.

On 16 June, a voluntary redundancy scheme was offered to those staff at the 25 sites identified as being at risk of redundancy. Most of these closures are based on plans originally drawn up in 2016 and announced in 2017, and they are seriously out of date. The sites chosen for closure have, according to the Department, been selected after not just looking at the condition and suitability of buildings, but considering the potential impact of taking work out of locations that score more highly for economic deprivation.

However, many of these closures do not seem to make a lot of sense if their impact on the local economy has been taken into account. Many of these closures are in areas of economic deprivation that can hardly afford to lose good-quality public sector jobs. For example, 29 of the 41 processing sites are in constituencies that have higher than the national average claimant rates, and 18 of the 33 England office closures are in constituencies rated in the top 100 most deprived constituencies in the country. I do not call that levelling up.

My hon. Friend the Member for Glasgow North East (Anne McLaughlin) has done a survey of businesses near the Springburn site, which is earmarked for closure. It makes interesting reading, and I will take a moment to mention what has been identified in that community impact assessment. There are many businesses that staff at the Springburn site use. The off-sales, where people may perhaps buy a bottle of wine before they go home for the evening, and the Chinese restaurant next door, have concerns about the closure of that office.

The local florist is very concerned because the staff use that service, the local pharmacy has concerns about the closure and the local butcher has made representations about the closure of the Springburn office. That is the very real impact, just in Springburn alone, that such office closures will have on the local economy. It seems—perhaps the Minister can confirm this—that the overriding reason for many of these closures is that the Department for Work and Pensions has itself let the buildings in which it is located fall into major disrepair.

Let me now turn to concerns about the lack of opportunities to redeploy staff. When offices have been closing, Ministers have sought to reassure Members that staff will be redeployed elsewhere in the DWP or in other Departments whenever possible. However, the potential for redeployment elsewhere in the civil service has become less likely following the Government’s announcement on 13 May, through the press and without consultation with staff or trade unions, of their plan to cut 91,000 civil service jobs. The DWP’s decision not to make permanent thousands of staff on fixed-term appointments will, I believe, have come as a blow to staff as well as service delivery.

Under the recent permanency exercise for 12,000 work coaches who joined the Department on fixed-term contracts, only 9,300 have been offered permanent posts. Perhaps the Minister will be able to tell us whether those who are not among the 9,300 will be offered permanent employment in the DWP. Not all the posts have been offered to staff in their preferred workplaces, so they face making significant journeys if they want to continue their employment with the DWP.

The current position is that 1,400 full-time equivalent staff are on a waiting list but are being told that their contracts will end on 30 June 2022. Other FTEs have not been put on the waiting list and have been selected out of the process, despite having joined the DWP on the basis of fair and open competition. If this position does not change, it will lead to significant shortfalls in staff in jobcentres and DWP offices, which face staff reductions of up to 5,000. That will lead to increased workloads, place greater pressure on existing staff, and have a detrimental impact on the services that the public receive from the DWP. We believe that it makes no sense to threaten experienced staff with redundancies when the Department needs more staff, not fewer, to deal with higher workloads. If these closures and job cuts are allowed to go ahead, we will face the absurd prospect of staff being made redundant in one area while new staff are recruited in another to do the same job. That would be both costly and inefficient.

There is also the issue of the buildings. I understand that the Department aims to rationalise its estate, taking into account matters such as hybrid working, making offices fit for the future, and considering the green agenda as it reviews existing offices. I am told that all offices will be looked at, including jobcentres, and that the Department wants to ensure that everyone is working in an office that is of good quality.

The employers seem to believe that much of the DWP’s existing estate is no longer fit for purpose. They will seek to leave sites that are no longer suitable and relocate in new premises in the vicinity where they want to maintain a presence, overhauling some sites and closing others where they believe the DWP no longer needs to be located. They also seem to believe that having fewer, bigger buildings is a more efficient way of running the Department, although, as we heard earlier from the hon. Member for Strangford (Jim Shannon), that will not necessarily always be the case.

However, many of the processing sites are based in buildings from which the DWP will still operate. For example, jobcentres remain in the same location in Doncaster, a site that could easily accommodate the 300-plus staff that the DWP considers to be the minimum number to make a building viable. It will not be possible to sub-let parts of the buildings that it will be vacating, so we question the sense in making experienced staff redundant only for the part of the empty office space that they have vacated to—potentially—become unused. One such example is the Gloucester jobcentre at Cedar House, where only one part of one floor is being vacated and more than 40 staff who are unable to move to Worcester have now been identified as being at risk of redundancy.

The Department and Ministers have claimed that the estate programme is in support of the Government’s commitments on sustainability and net zero carbon. However, these plans are likely to lead to staff having to travel further to work as a result, which in turn would lead to more carbon emissions. No doubt the hon. Member for Strangford would agree with that, given his earlier intervention. It is also worth considering that the DWP is not totally vacating many of the buildings in question but has not said whether it plans to invest in making these buildings more energy-efficient in future. There is little evidence that the DWP is doing anything to improve the rest of its estate. Much of the remaining estate is similarly unsuitable and unsustainable. We also have concerns that not all the buildings the DWP proposes to move staff to will be able to accommodate the numbers.

That brings me to the issue of equality impact assessments. The restrictions on the equality impact assessments have been lifted by the Department and they are now available in the House of Commons Library. However, there are concerns that the equality impact assessments have identified that there will be groups disadvantaged by the closures but said very little about what is being done to mitigate those impacts. The assessments were produced before the one-to-one interviews were conducted with staff facing closure of their offices. It is likely that this process would further confirm the impact on people with protected characteristics.

Women form a significant majority of the DWP’s workforce, on some sites constituting over 75%. There are no tangible mitigations offered in these documents that are likely to compensate for the clear detriment that women face from this office closure programme. People with disabilities, particularly if they impair their ability to travel to work, are likely to face disproportionate impact from office closures as they will have to travel, in some cases by making significant journeys, further to work.

The DWP aims to mitigate the impact on disabled staff by exploring reasonable adjustments and flexible working arrangements. However, this is unlikely to provide sufficient mitigation as the Department is currently not prepared to fully embrace working from home as a redundancy avoidance. I am sure that people in Strangford and other rural parts of these islands have benefited, and Departments have benefited, from staff working from home, particularly those in the DWP, where there was a huge increase in the number of universal credit claimants, for example. DWP staff should be congratulated on the work that they did during that period and should not now have to face their offices being closed and the prospect of redundancy.

In some sites—for example, Hackney—there is a high percentage of staff from ethnic minority backgrounds. The proposed solution inevitably means longer travel at greater expense if they are able to relocate, which is a clear detriment for those impacted. In Blackburn, 36% of staff have been identified as being ethnic minority. Despite this, the DWP’s analysis is that there is no evidence to suggest that they will be negatively impacted. We believe that that analysis is flawed. There are high proportions of part-time workers, who are more likely to be carers, in many of these sites. Again, there is little by way of mitigation offered to those workers.

We are aware that the Secretary of State for Work and Pensions and the permanent secretary invited a limited number of staff to attend a meeting on 26 May 2022 that they addressed with a presentation of the departmental plan for 2022-25. Once again, the DWP and Ministers have gone to staff without proper engagement with the trade unions. I would suggest that there should be full and proper consultation with the trade unions on the detail of a plan that has huge implications for trade union members, DWP staff and the public they serve. The plan identifies a cut in funding for staffing resources while at the same time introducing more work. It suggests a 12% cut in funding for staff over the three-year period. It also suggests a 16% increase in payments for universal credit, legacy benefits and pensions. This can only mean more work for less staff.

We want to see the Department take a realistic approach to a likely surge in demand for services as the impact of the war in Ukraine and the fall-out from the pandemic devastate the economy. I hope that the Minister will be able to answer many of the points that have been raised on this office closure programme and the concerns that we have for DWP staff, who deliver a great service. I hope that she will be able to confirm that there are no redundancies for those staff.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I am checking whether anyone else present wishes to speak; there being time, I cannot stop that. Excellent; no Member has risen to their feet, so I call Minister Mims Davies.

[The Parliamentary Under-Secretary of State for Work and Pensions (Mims Davies)]

I thank the hon. Member for Glasgow South West (Chris Stephens) for securing the debate and for his immense interest in this issue, and I also note his register of interests declaration, but I want to take this opportunity to reassure him that there are currently no planned changes that would affect his constituency.

I have very proudly held the role of employment Minister at the Department for Work and Pensions for almost three years now and I greatly recognise the tireless efforts of our workforce up and down the country. From St Austell to Loughborough to Forres, I visit offices and meet staff regularly, and hear at first hand their experiences and some frustrations with the poor quality buildings, some of which have no proper kitchen facilities for example, but in which they are nevertheless delivering truly excellent DWP services.

Our staff are always positive and focused, and this was especially noticeable during the pandemic when their agility and commitment shone through as thousands of DWP staff were redeployed to process new claims, which doubled in a matter of weeks. This was a truly heroic effort, resulting in payment timeliness for our claimants remaining incredibly high and, vitally, vulnerable people receiving the support they needed in their time of need. I am proud and immensely grateful that our DWP Jobcentre Plus offices remained open throughout the pandemic for the most vulnerable.

Importantly, this transformation needs to be viewed alongside the significant recent investment in DWP frontline services. Since the start of the pandemic we have —or, rather, I have—opened 194 new temporary additional jobcentres as part of our rapid estate expansion programme to support our Plan for Jobs. We have also recruited 13,500 new work coaches in order to provide our claimants with the tailored face-to-face support they need. This new boost to our DWP workforce has played a leading role in delivering on our vital plan for jobs, getting people back into work and transitioning into growing sectors as we focus on building back better. I am incredibly proud of the over 163,000 young people under 25 most at risk of long-term unemployment due to covid impact who took advantage of the life-changing ability to take up a first job through the kickstart scheme and our brilliant Way to Work scheme which is on track to get half a million more people into work this year.

I want to strongly reassure Members here today that staff are being fully supported throughout this modernisation. While we are right-sizing our estate and making the DWP a better place to work—which is at the heart of this—we understand, and I very much do, that a change of work- place can be unsettling for people. However, we are committed to our plan of making our estate smaller, greener and—importantly, as we have seen with covid—more resilient.

These new sites will enable further progression and career opportunities due to larger teams being able to come together, meaning staff can more easily move between business lines and react to operational requirements, with more support in these larger cohorts. The support we are offering to our teams—to our people—absolutely includes regular one-to-ones with line managers about the impacts and confidential advice and support through the employee assistance programme, as well as CV and job application support if needed.

The DWP is absolutely committed to continuing to deliver for our customers, families and the economy. We need to continue to work positively with our teams to modernise and transform the way we deliver our service. As the hon. Gentleman says, that builds on the approach that was announced back in 2017. I am always struck by, and thankful for, just how positive and willing our DWP teams are to embrace the new changes and the challenges that we face in such a large operational Department. We believe that that means that we will drive better experiences for claimants and employees alike by building increased resilience in modernised and, crucially, higher quality sites, which will also reduce fraud and error.

These actions will generate savings for the taxpayer, which is the right and responsible approach that the Government must adopt, considering the fiscal position that we face. Given the recent increase in the cost of living, driven by global demand shock, the impact post covid and Russia’s unacceptable invasion of Ukraine, we are always looking for opportunities across Government to make taxpayers’ money go further. In reality, for the DWP, that means taking the decision to exit oversized, poor-quality estates when opportunities or—as in this case—lease breaks arise, making our public services more efficient and space-saving where we can.

[Chris Stephens]

I join the Minister in praising the supreme efforts of Department for Work and Pensions staff over the past couple of years, but why should those who will find it difficult to travel 20-odd miles to another site because of transport issues or disabilities face the prospect of losing their job? That seems to go against everything the Government claim to want for disabled customers, for example.

[Mims Davies]

I am trying to give some context and to reiterate to the hon. Gentleman that the DWP is the biggest public service Department. The current issue is that we occupy 20% of the civil service estate. It is right that we seek to reduce our footprint while committing to retain what makes us great—I absolutely agree with him about that—in our national presence, which means that we can deliver locally for our customers. I think that hon. Members will find it helpful if I provide some numbers to illustrate the point and, I hope, answer some of the hon. Gentleman’s questions.

The DWP currently operates from more than 920 buildings. In March 2022, it employed just over 92,000 people, but based on recent estimates, our buildings have the capacity for more than 158,000 people. More than 60% of our buildings are 30 years old or more; 3.3% of them currently meet the top two energy performance certificate ratings. The Department is committed to occupying only A and B-rated buildings by 2030. To answer one of the hon. Gentleman’s questions, we will be investing in the quality of the remaining estate, making sure that our buildings are the right places for our people to work. I believe that that will please him and those he represents.

The modification to a better estate will generate significant gross savings: it is estimated that £3.5 billion will be saved over a 30-year period, with ongoing annual savings of £80 million to £90 million realised from 2028-29, supporting the delivery of efficiency savings across Government. Importantly, we are bringing in a better quality of workspace for our employees, as the hon. Gentleman and many of our workers have requested. It is important to stress that the estates-driven rationalisation programme is ambitious in terms of how we reshape the DWP and how the Department works. I recognise the impacts on people, but it supports the ongoing modernisation and transformation that we also need to provide for our people to create career progression.

These changes will also support those Government priorities of fewer and better-quality buildings, investment in the condition of buildings, the future sustainability of the estate and, above all, our commitments to net zero. It is also about ensuring, vitally, that the Department maintains a footprint in Scotland and Wales and shows a firm and vital commitment to our precious Union. [Interruption.] You have to let me have that one. We are supporting our places for growth programme by committing to roles outside of London. It also supports levelling up. We are committed to retaining a presence in some of the most deprived areas throughout the nation and regions and creating career opportunity for our people.

[Chris Stephens]

It is good to see the Department for Work and Pensions preparing itself for an independent Scotland, but that is not the point I want to make. The point I want to make to the Minister is on areas of economic deprivation. Some of these offices will be closing in areas of economic deprivation—I am thinking of Springburn in Glasgow, for example, and I have raised the concerns that the businesses have—which seems to go against the levelling-up agenda. How would the Minister square her argument with the fact that offices in areas of high economic deprivation are closing?

[Mims Davies]

I understand the hon. Gentleman’s point, and I will go on to say how we are managing this and the opportunities that hybrid working affords us and our staff and how it supports caring and other responsibilities that people may have. I also draw back to the point of the nearly 200 new jobcentres—we are also heading towards 200 new youth hubs—that the DWP has invested in and brought forward as part of our plan for jobs. We are looking at a small part of a very large moving picture of a very large operational Department. For those affected, of course, this situation is concerning. The Department intends to make progress and during this pending review period, we have to set the foundation of the modernisation and transformation I have described.

Let me take the hon. Gentleman through the situation in Springburn in Glasgow, where 138 people are moving to Atlantic Quay. As part of the first tranche of conversations, all of the one-to-ones have been completed. I reassure him that only one of those 138 people is currently at risk. If people continue to live in the area, they will continue to spend in the area, especially through hybrid working.

On the question of fixed-term appointments, 8,800 permanent positions have been confirmed, with more offers. We have had to safeguard the opportunities for permanent staff, with 500 more offers—I do not know the exact number; it is around that number but it is a moving picture. I am trying to give the House an idea. We are continuing to engage with the attrition we have with an older workforce and with people looking to progress and stay, but we are also trying to make sure that those who have come in and given their all to the Department get the opportunity to stay with us.

To respond to the hon. Member for Strangford (Jim Shannon), I will take him through the issues in Northern Ireland. The areas are operated, as he will know, through the Department for Communities, and the sites affected are GB-only. Homeworking was a covid business-related opportunity measure. Hybrid working is absolutely there. It is not our preferred operating model for the DWP—our people need to be face-to-face with our claimants, and that is very important—but we have opportunities in terms of GB for outreach and help through the flexible support fund and partnerships within our local communities, and that is something I encourage. The DWP is not only in jobcentres; it is working in youth hubs, it is partnership working and it is supporting communities in a completely different way—not everyone will come and meet us in a jobcentre.

The recent additional JCP closures mentioned by the hon. Member for Glasgow South West are not related to the wider network design. However, the Department is taking opportunities over the coming years, as I have said, to improve incrementally our jobcentre network and the quality of the buildings both for colleagues and for customers. For example, we should get those jobcentres into town centres and on bus routes. We should use the opportunity to take forward some of those new temporary jobcentres, which offer better quality buildings and, above all, a better quality working experience.

Let me turn now to hybrid working. The Department has introduced hybrid working, where colleagues are expected to spend 40% of their time in the office. It is anticipated that this will help those colleagues who may need to travel a little further to get to their new sites. Relocating individual teams into current roles or into existing smaller offices does not fit. What we do not want to do is create more smaller offices. We are trying to create hubs of 300 to 500 plus people. As I have said, those hubs work well in terms of people being able to pivot into the operational needs.

[Chris Stephens]

That was a helpful response to my questions on hybrid working. Does that suggest that all redundancies can be completely avoided if there were an offer of either hybrid or home working for staff? Is that the Department’s intention?

[Mims Davies]

Let me take the hon. Gentleman back to the point that I just made with regard to Glasgow Springburn. A total of 138 people are moving to Atlantic Quay. In terms of the one-to-ones, only one person is at risk at this point. This is, of course, an ongoing process of conversations around the redeployment, retraining and retaining of staff. We have an ageing workforce. We need to future-proof things and look after people and bring them forward. As I have said, this is only one moving part of what we are doing with our 92,000 people.

Drawing on that, the DWP is taking advantage of shifts in post-covid expectations around customer service delivery—not at the expense of face-to-face work—making use of the opportunity of estate lease breaks in 2023 to enable the Department to achieve its future service delivery aspirations. I want to reassure hon. Members that our people are at the heart of this transformation and that their needs will not be overlooked. The transformation is being delivered in two tranches over the next 18 months. Where possible, if an alternative strategic site has been identified, subject to colleagues’ ability to move to that new site, they will transfer, in their current role, to that new site. Where no consolidation site is available, all efforts—I reiterate the words “all efforts”—will focus on retaining and redeploying colleagues.

I have consistently reassured hon. Members, whose constituencies are affected, that the driver for this programme is not a reduction in our headcount. Where possible, colleagues in offices that are due to close are being offered opportunities to be redeployed, or retrained so that they can undertake a new role in the DWP, or be offered opportunities with other Government Departments. We are currently working with 15 other Government Departments, which are madly keen on having those people with DWP operational experience join them. Absolutely, we note that recent announcements about the future of the civil service may have caused additional concern. The DWP will consider its response to the challenge and will come forward with its proposals in due course.

[Chris Stephens]

The Minister has been extremely generous in taking my interventions. She outlined the discussions that she has had with other Government Departments, which is very welcome. Can she outline the discussions that she is having with the trade unions within the DWP, because, as yet, that is not something that she has mentioned in her reply?

[Mims Davies]

The hon. Gentleman keeps interrupting me. I can assure him that I will get to that in good time. Let me just follow through on this and then I will reply to his question.

Let me return to how we will support those who may be affected by our estate changes. Again, our focus continues to be on the best quality of estate, alongside retaining colleagues and supporting them. We are absolutely determined to continue to follow up on the conversations that we are having with individuals. Around 5,800 individual conversations with colleagues took place in 29 of the 43 affected sites. Pleasingly, following those conversations, more than 80% of colleagues have confirmed that they can move to a new site.

On trade union engagement, consultation is ongoing with the trade unions. Meetings are scheduled for twice a week, and they ensure that appropriate time is dedicated to discussions with the unions about their members’ concerns. In the period from 6 January to date, we have spent more than 65 hours in discussions with the unions, and we are fully committed to continuing that as we deliver the programme’s outcomes. Officials have also arranged a number of deep-dive sessions in consultation with the unions, including one with MyCSP on the civil service compensation scheme. I hope that that allays the hon. Gentleman’s fears about our conversations, which are ongoing, important conversations. I do not want this transformational change to impact our operations and, above all, the morale of our staff.

A clear measure of the success of the DWP’s updated hybrid working is that we have more flexible and inclusive workplaces that are capable of adapting to the needs of employees—those with health conditions, for example—and our customers. That has been welcomed by much of our workforce. In return, as I mentioned, the Department has been able to retain more people by enabling them to commit to moving with their role to an alternative, larger site. At those sites, they will get more training, learning and progression.

On 11 May, the Department started the engagement of redeployment activity for about 1,000 colleagues in the first tranche who were impacted by the closure of their site. The process has already successfully matched more than 100 colleagues with new roles, and it continues to happen on a weekly basis. As a responsible employer, the Department has had to explore all options, including voluntary redundancy. That just might be an option for some, depending again on personal circumstances and on the outcome of our redeployment activity. However, voluntary redundancy is the absolute last resort, and it is boring, but I will continue to say that all our efforts are to retain, retrain and redeploy both within the DWP and in all other Government Departments. We will continue to do that until all avenues have been exhausted. Importantly, the scheme does allow our colleagues to request a quotation to allow them to consider what it might mean for them if an offer is made. No offers will be made until September. Every effort throughout this period is about supporting colleagues with redeployment.

Colleagues will be delighted to hear that I will conclude. Reducing the back-of-house estate’s footprint will deliver value for money for the taxpayer, with significant gross savings of £3.5 billion over a 30-year period. We will deliver better quality estates and better quality working experience and progression opportunities. I hope to have reassured the hon. Gentleman and the House that we at the DWP are doing everything we can to redeploy and support DWP colleagues who are impacted by the modernisation and that they will continue to be fully supported throughout the process.

Question put and agreed to.

Oral Answers to Questions

Chris Stephens Excerpts

Monday 6th June 2022 Commons Chamber

[Chloe Smith]

We are. It is unfortunate that the hon. Lady cannot engage with the wider point that I am making around the nature of means-tested benefits—for example, the many on unemployment and support allowance or universal credit who are also disabled and who will benefit from the approach we are taking.

[Chris Stephens (Glasgow South West) (SNP)]

12. What discussions she has had with Cabinet colleagues on steps to tackle in-work poverty in the context of the rise in the cost of living.

[Kirsten Oswald (East Renfrewshire) (SNP)]

15. What discussions she has had with Cabinet colleagues on steps to tackle in-work poverty in the context of the rise in the cost of living.

[The Secretary of State for Work and Pensions (Dr Thérèse Coffey)]

This Government have taken decisive action to make work pay, giving 1.7 million families an extra £1,000 per year, on average, through changes to the universal credit taper, work allowances, and increasing the national living wage to £9.50 an hour. Some extra support is coming in through the packages we have already mentioned today. It is also important to make the House aware that we extend help to people already on universal credit who are working to see what we can do to help them to progress in work and to take up other opportunities, such as making sure that they know about things like childcare support.

[Chris Stephens]

So grants rather than loans are the solution after all. Evidence from Feeding Britain and Good Food Scotland shows, for example, that people who work in a supermarket cannot afford to shop there, with fridges being switched off and lightbulbs being removed at home, and more pawning, borrowing and reliance on credit. Now that the principle is that grants are preferable to loans, will the Secretary of State apply the same principle to universal credit advance payments, as argued for by the Work and Pensions Committee?

Child Maintenance Service: Reform

Chris Stephens Excerpts

Thursday 19th May 2022 Westminster Hall

[Chris Stephens (Glasgow South West) (SNP)]

It is a pleasure to serve under your chairmanship, Ms Rees. I congratulate my hon. Friend the Member for Motherwell and Wishaw (Marion Fellows) on securing the debate. She has campaigned on the issue for many years now, and I hope that much of what she has said will be taken on board by the Minister and that action will be taken.

The SNP is clear that, at a time of a cost of living crisis, child maintenance matters even more to protect children from poverty. We are calling for a long-overdue root-and-branch review of the Child Maintenance Service so that it can work more effectively for the children it is supposed to serve. I also want to take the opportunity to ask the Minister about the 91,000 civil service jobs that are supposed to be disappearing. I know you will appreciate this point, Ms Rees, as a friend of the worker. A press release last Friday said that 91,000 civil jobs will disappear. I would hope that not one of them is from the Child Maintenance Service, because it seems to me they need more workers. No worker in the Child Maintenance Service should find themselves out of work as a result of those changes.

What we want to focus on today are the clear, systemic errors that happen and affect so many people. That is why in the root-and-branch review, we have to come back first to the fact that the Government introduced charges for parents seeking support from a former partner through the child maintenance service. There is a fee of £20 for using CMS, unless someone is under 19 or has suffered domestic or violent abuse. The paying parents must pay an additional fee of 20% to use the service, and the receiving parent 4%. The fees imposed on receiving parents using the child maintenance service include the 4% surcharge for using collect and pay and the original £20 charge. I believe that that unfairly penalises receiving parents who are not receiving proper payments, and charging lone parents to access their right to support for their child is deplorable. We would certainly demand an end to that tax on child support, and we should continue to demand an end to Child Maintenance Service fees for parents receiving the payments.

A recent National Audit Office report, which was touched on earlier by previous speakers, exposes the failures of the Child Maintenance Service and shows that it simply is not working for far too many lone parents. The report found that the UK Government do not appear to have learned one of the key lessons from the now defunct Child Support Agency about preventing appears from building up, and that enforcement can be too slow to be effective. The report suggests that unless the UK Government write off more CMS debt, outstanding arrears will grow indefinitely. As my hon. Friend the Member for Motherwell and Wishaw said, they are forecast to reach £1 billion by March 2031 at current rates, and the Department for Work and Pensions does not yet fully understand why those without an effective arrangement do not use its service. It could do more to help prevent around half of direct pay arrangements failing and leaving maintenance unpaid. There seem to be significant problems with its customer service, which undermines trust in its service, as the hon. Member for Strangford (Jim Shannon), my hon. Friend the Member for Motherwell and Wishaw, and the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) identified in their contributions.

The latest DWP figures are for the quarter ending in December 2021. Of the 158,400 paying parents due to pay the collect and pay service, 51,300 paid no maintenance and 107,100 paid some maintenance—and of those, 36,500 paid up to 90% of the maintenance due for the quarter, and 70,600 paid over 90%. The Department for Work and Pensions figures also show that since 2012, when the Child Maintenance Service began, £451.1 million in unpaid maintenance has accumulated. That amounts to some 8% of all the maintenance due to be paid since the start of the service. The SNP has made it clear that we are calling for effective enforcement action to be taken in the collection of maintenance arrears.

Like the hon. Member for Rutherglen and Hamilton West, I am grateful for the excellent briefings that we have received from One Parent Families Scotland, Gingerbread and Mumsnet. In the survey that Gingerbread and Mumsnet did in England in 2020, 86% of Child Maintenance Service customers said that the service had allowed their ex-partner to financially control or abuse them post separation. Some 83% said they would likely never receive what they were owed in arrears, and just 11% of those parents described their experience of using the Child Maintenance Service as positive. That really cannot continue, and people need more confidence in the Child Maintenance Service going forward.

Lone parents and their children are facing increased hardship as a result of the combined effects of the pandemic and the cost of living crisis, which is why it is vital that family income must be protected for over 800,000 children across the United Kingdom who rely on it. Some 803,000 children are covered by Child Maintenance Service arrangements—an increase of 5,000 since September 2021—with 510,000 covered through direct pay arrangements and the rest covered through the collect and pay service. The number of children covered by Child Maintenance Service arrangements has increased steadily over the last two years.

Lone parents of children are more likely to be in poverty, so any reduction in income is likely to be particularly harmful, which means that, in the face of the cost of living crisis, maintenance matters even more for protecting children from poverty. That is why the SNP is calling on the Government to introduce a minimum maintenance payment to provide parents with care and their children a guaranteed income, in order to prevent hardship and ensure a dignified standard of living. We are also clear that a long-overdue root-and-branch review of the Child Maintenance Service is needed—not only to enforce the payments, but to ensure that the process does not put vulnerable families through additional stress. It is ultimately the children who are being permanently disadvantaged.

The Scottish Government are using their devolved powers to ensure that children and families are supported during this difficult time and prevent them from being pushed into fuller hardship. The Scottish Government have invested £770 million per year in cost of living support, including in a range of family benefits not available elsewhere in the UK, doubling the Scottish child payment, mitigating the bedroom tax and increasing Scottish benefits by 6%, which was the figure in April. The Scottish Government are putting money into the pockets of families now and helping them to deal with that cost of living crisis.

I look forward to the Minister’s remarks and response. I would hope that he can confirm that there will be a root-and-branch review, and that he will give us some positive news on staffing and other matters.

--- Later in debate ---

[David Rutley]

I give way to the hon. Member for Glasgow South West (Chris Stephens).

[Chris Stephens]

I thank the Minister and, as my constituency takes in Ibrox stadium, I associate myself with his remarks. I inform the House that an early-day motion will be tabled, praising the Rangers team for their achievements in the Europa League this season.

[David Rutley]

I give way to the hon. Member for Motherwell and Wishaw.