Universal Credit and Welfare Changes
Esther McVey Excerpts(6 years, 6 months ago)
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The Secretary of State for Work and Pensions (Ms Esther McVey)
This Government are delivering the biggest changes to the welfare state in a generation. We are building a benefits system fit for the 21st century, helping more people into work by providing tailored support and more financial support for the most vulnerable. These changes are designed to reflect not only the technological age we live in, which is having a significant impact on work and communications, but people’s working lives. We are providing extra support for childcare costs, and offering flexibility to look after children or elderly parents. Our reforms take into account flexible working, self-employment, multiple jobs, the gig economy and societal changes, particularly the growing awareness of mental health conditions, which is strongly linked to the changing pace of life and the barrage of constant communications.
We are succeeding in our aim to reshape the system and provide for the most vulnerable. So far, we have supported nearly 3.4 million more people into work since 2010—that is more than 1,000 people a day every day since 2010—producing a record rate of getting people in work and the lowest unemployment level since the 1970s. We are also spending £54 billion on benefits to support disabled people and people with health conditions—this is up £9 billion since 2010. We are also supporting a record 600,000 disabled people who have entered work over a four-year period.
Universal credit is a brand new benefits system. It is based on leading-edge technology and agile working practices. Our strategy is based on continuous improvement, whereby we are listening, learning and adapting our delivery as the changes roll out across the country. The result will be a tailor-made system, based on the individual. This is a unique example of great British innovation, and we are leading the world in developing this kind of person-centred system. Countries such as New Zealand, Spain, France and Canada have met us to see UC, to watch and learn what is happening for the next generation of benefit systems. Let us not forget that we are introducing this new system because the legacy regime it replaces was outdated, not only in terms of an ageing IT infrastructure that was built in the 1980s, but in the way it trapped people in unemployment and disincentivised work.
Today, I am updating the House on the changes we have made to UC as a result of this iterative approach we are taking. That is why last autumn we abolished the seven waiting days from the application process; we put in place the two-week housing benefit run-on to smooth the transition for an applicant moving to UC from the previous system; we ensured that advance payments could be applied for from day one of the application process, for up to 100% of a person’s indicative total claim; and we extended the recovery period for these advances to 12 months. Extra training was given to our work coaches to embed these changes.
Prior to that, we also changed the UC telephone lines to a freephone number to ensure ease of access for claimants inquiring about their claim. Earlier this year we reinstated housing benefit for 18 to 21-year-olds, and ensured that kinship carers are exempt from tax credits changes. Just last week, we announced changes to support the severely disabled when they transition on to UC; within our reforms, we want to ensure that the most vulnerable get the support they need. These proactive changes were made to enhance our new benefits system.
Our modifications to UC have been made alongside significant changes to personal independence payments, to reflect the Government’s support for disabled people and all types of disabilities—unlike the system before UC, which focused on physical disabilities. In fact, within week one of my entering this job, I took the decision not to continue with the historic appeal regarding a High Court judgment on the PIP-amending regulations, in order to support people suffering from overwhelming psychological distress. We have committed to video recording PIP assessments so that everyone involved can be sure of their fair and reviewable outcome, and earlier this week we announced a more practical approach to the assessment of claimants with severe degenerative diseases. Those patients who receive the highest awards will no longer be required to attend regular face-to-face interviews repeatedly to verify their difficult and debilitating circumstances.
Let me turn to the report on universal credit published last week by the National Audit Office, which did not take into account the impact of our recent changes. Our analysis shows that universal credit is working. We already know that it helps more people into work, and to stay in work, than the legacy system. Universal credit has brought together six main benefits, which were administered by different local and national Government agencies. Once fully rolled out, it will be a single, streamlined system, reducing administration costs and providing value for money for all our citizens. The cost per claim has already reduced by 7% since March 2018 and is due to reduce to £173 by 2024-25—around £50 less per claim than legacy cases currently cost us to process.
Beyond the timespan of the NAO report, we have greatly improved our payment timeliness: around 80% of claimants are paid on time, after their initial assessment period. Where new claims have not been paid in full and on time, two thirds have been found to have some form of verification outstanding. Verification is a necessary part of any benefits system and citizens expect such measures to be in place. We need to ensure that we pay the right people the right amount of money.
Upon visiting jobcentres, the NAO observed good relationships between work coaches and claimants. The results we are seeing are thanks to the exceptional hard work that our work coaches put in with claimants day in, day out. UC is projected to help 200,000 people into work, adding £8 billion per year to the economy when it is fully rolled out. Those are conservative estimates, based on robust analysis that has been signed off by the Treasury. At a user level, we know that 83% of universal credit claimants are happy with the service that they receive.
In conclusion, we are building an agile, adaptable system, fit for the 21st century. We want people to reach their potential, regardless of their circumstances or background, and we will make changes, when required, to achieve that ambition. I commend this statement to the House.
Margaret Greenwood (Wirral West) (Lab)
I thank the Secretary of State for advance sight of the statement, but the Opposition believe that she should have come to the House on Monday to make a statement about both the damning National Audit Office report that was published last Friday and the Government’s decision, announced last Thursday, to put back the target for the completion of universal credit by another year—the sixth such delay. Rather than taking pride in not continuing with the appeal on PIP regulations, the Secretary of State should reflect on her Department being forced three times in the past year by legal challenges to review payments to disabled people.
Universal credit is the Government’s flagship social security programme, and the NAO report on it that was published last Friday is damning indeed. It concludes that universal credit is a major failure of public policy: it is failing to achieve its aims and, as it stands, there is no evidence that it ever will. The report suggests that universal credit may cost more to administer than the benefits system that it replaces, and concludes that it has not delivered value for money, that it is uncertain whether it ever will, and that we will never be able to measure whether it has achieved its stated goal.
The Trussell Trust recently reported that food bank referrals have increased by 52% in areas where the full service of universal credit has been introduced in the past year, compared with 13% across the UK as a whole. In Hastings, food bank referrals went up by 80% following the roll-out of the full service. The Department for Work and Pensions does not measure whether claimants are experiencing hardship; is it not time that the Secretary of State woke up to the realities of poverty in the UK and instructed her Department to do so? Some 60% of claimants have asked for advanced payments, showing just how high the level of need out there is.
The Secretary of State says that universal credit is based on leading-edge technology and agile working practices. However, the National Audit Office report says that 38% of claimants were unable to verify their identity online and had to go to a jobcentre to do so. It makes no sense to accelerate the roll-out of universal credit at the same time as rapidly closing jobcentres. The NAO report reveals that a significant number of people struggle to make and manage their claim online. The Department for Work and Pensions’ own survey found that nearly half of claimants are unable to make a claim online unassisted, and that a fifth of claims are failing at an early stage because claimants are not able to navigate the online system.
The Government claim that the introduction of universal credit will result in 200,000 more people finding long-term work than under legacy benefits. They repeatedly cite evidence from 2014-15, but that was before the cuts to work allowances were introduced and covers only single unemployed people without children. If one looks at the range of claimants in areas where universal credit has been rolled out, there is no evidence that it is helping more people find long-term work. Delays in payments are pushing people into debt and rent arrears on such a scale that private and even social landlords are becoming increasingly reluctant to rent to universal credit claimants.
The NAO report also points out that 20% of claimants are not being paid in full and on time, and more than one in 10 are not receiving any payment on time. The people who are most at need from the social security system are the ones most likely to have to wait for payments. A quarter of carers, over 30% of families who need support with childcare and, most shockingly of all, two thirds of disabled people are not being paid in full and on time. The report points out that the Department does not expect the time limits of the payments to improve over the course of this year, and that it believes that it is unreasonable for all claimants to expect that they will be paid on time because of the need to verify each claim. Does the Secretary of State find the expectations of her own Department acceptable? She has made some claims that things have improved greatly since the closure of the report, so will she substantiate that by putting that information in the Library?
The impact of universal credit on some of our most vulnerable people is clear. Universal support is supposed to help people, but funding is severely limited and provision is patchy. What assessment has the Secretary of State made of it? Is she satisfied that her Department is doing enough to support people who are struggling?
Universal credit was supposed to offer personalised support to claimants, but stressed and overloaded staff are often failing to identify vulnerable claimants. The DWP is aiming to increase the workloads of work coaches fourfold and of case managers nearly sixfold as the Government try to cut the cost of universal credit still further.
The NAO is very clear that the DWP should not expand universal credit until it is able to cope with business as usual. The Government must now listen to the NAO, stop the roll-out of universal credit, and fix the flaws before any more people are pushed into poverty by a benefit that is meant to protect them from it. Universal credit is having a devastating impact on many people and will reach 8.5 million by 2024-25. The Secretary of State must now wake up to the misery being caused by her policy.
Ms McVey
First off, this was the earliest time that I could come to the House to make an oral statement. I sought to make a statement as soon as possible, which is why I am here today. Obviously, everyone will know what has been happening this week in the House.
On the legal changes that I have made, let me say that I took them from day one. I took them immediately. No one was forced to do that; I actually took the changes on myself with the rest of my team and also with Conservative MPs who came and told me what they would like to do. I also went out to visit various groups up and down the country. I felt that that was the best thing that we could do.
When this system is fully rolled out, it will be £50 cheaper per claim. It is an automated system and it is a personal tailored system. For those who cannot get access, or who are not sure about the IT and how to support it, we have given an extra £200 million to local authorities to support people—to help them with IT and to help them with debt—not that we would ever recognise that from the scaremongering of the Opposition.
Labour talks about poverty figures, but, compared with 2010 when it was last in office, there are now 1 million fewer people in absolute poverty. Rates of material deprivation among children and pensioners have never been lower, inequality has fallen and remains lower than in 2010, and according to the latest figures, out this week, inequality, because of our benefit and tax changes, has fallen by two thirds in the last year. I wish the Opposition would keep up with the rapid changing of things.
We are helping more people into work. More than 3.2 million more people are in work—1,000 jobs every day since 2010. How much evidence do the Opposition need, for heaven’s sake? The support is there, and now the advances. It was key we made those changes in the last Budget. We knew if people were having difficulty with the benefit, which was there to support them, we had to make those changes—the advances, the two-week run-on for housing benefit, stopping the waiting days—and now we find out that 4% of people are moving into work in fewer than six months and that 50% spend more time looking for work. That is the reality.
Please allow me, Mr Deputy Speaker, to mention some of the real people I have met and spoken to and what they are saying about universal credit. Shafeeq, who was homeless, got an advance that got him temporary accommodation and put him in a better place to look for work. He said it
“helped me out a great deal and I’d have been lost without it”.
He is now in a job. Lisa said an advance payment helped her to secure a place with a childcare provider. She is paying it back over 12 months, which she says means a great deal to her. Gemma, a lone parent, said,
“it’s amazing being able to claim nearly all my childcare costs back, it’s a real incentive to go out to work – I’m going to be better off each week”.
Ben in Devon had a work coach, who helped him to progress in work from day one. Ryan from Essex had a lack of work experience and confidence, and his work coach helped him through universal credit. I will end it there—with the people receiving the benefit.
Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)
I thank my right hon. Friend for her statement. The NAO report is, to be frank, a shoddy piece of work. It has simply failed—[Interruption.] Genuinely; anyone who reads it—I do not know if anyone on the Opposition Benches has bothered—will realise that it fails to take account of a series of issues, not the least of which are that the Treasury signed off annual recurring savings of £8 billion and, more importantly, that the changes last November and December have made a huge difference to people’s lives. I urge her to carry on and to tell the Public Accounts Committee to ask the question: who polices this policeman? This piece of work does it no credit at all. Will she now apply her efforts to universal support to make sure that every council area delivers the extra bit that is supposed to go alongside universal credit?
Ms McVey
My right hon. Friend has done more than most people in the House to support people into work, and I thank him for his question. He emphasises the point about universal support—the £200 million for local councils—to help people with debt management and IT. That is one thing we are definitely doing. Equally, he raises an important point about the NAO report. I am sure that Opposition Members have not read it. It does not say stop the roll-out; it says continue with the roll-out and do it faster. Please read about stuff before talking about it!
Kirsty Blackman (Aberdeen North) (SNP)
I thank the Secretary of State for advance sight of the statement. The NAO report was damning in its criticism of universal credit, and I am honestly surprised that anyone on the Government Benches could stand up and say they do not agree with it. This is what it does: it audits things. That is its role. I should not be surprised, though, because the Government have form. When the UN published its report on the rights of disabled people, a Minister stood up and said, “Problem? What problem? There’s no problem here”. They are trying to do exactly the same thing with this report.
The NAO in its report says it is not clear that universal credit will ever cost less to administer than the existing benefits system and that the Department will never be able to measure whether universal credit actually leads to 200,000 more people being in work.
Universal credit is pushing families into poverty and hardship. In addition to this report, the Joseph Rowntree Foundation report has damningly criticised the sanctions regime, setting out how dreadful it is for individuals. A Trussell Trust report refers to the number of people needing to visit food banks in the areas where universal credit has been rolled out. Universal credit will be rolled out in my constituency later this year, and I am worried for my constituents. I expect what many other Members have seen: a massive increase in the number of people who are facing financial hardship coming through my door. My office, in Scotland’s third city, already refers one person to a food bank every fortnight because of the actions of this Tory Government. The Government can no longer bury their head in the sand. They need to own up to these failings and make changes to improve the system.
Ms McVey
We have said quite clearly that this report is out of date and does not take into account the significant changes that we have made. The changes in the Budget were worth about £1.5 billion and the ones that are coming in are worth several billion pounds, but the report does not take that into account. Genuine people who get support from work coaches are saying, “It has transformed our lives.” I invite the hon. Lady to visit a jobcentre and meet the coaches in her area to see how revolutionary this process is. If she does not agree, she knows as well as I do that her party has considerable powers in Scotland to change the welfare system. Should Scotland wish to do that it could, but it is not doing so.
Alex Burghart (Brentwood and Ongar) (Con)
Like a number of Members, I am disappointed that the NAO report does not take into account the changes that the Department made in response to last year’s recommendations from the Work and Pensions Committee. I believe that the changes made by the Secretary of State were part of a test-and-learn environment, which is essential to the future success of universal credit. Will she commit to continuing with test and learn? In doing so, will she look at the Committee’s recommendations on universal credit and self-employment?
Ms McVey
My hon. Friend has spent considerable time investigating what we do, and providing solutions and support. He is right that this is a test-and-learn process. Indeed, I ensured that that would be the focus, and it is what we will do for people, whether they are self-employed or disabled. Let me quote various charity groups that have agreed with exactly what we have done. When I made the decision—along with the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for North West Hampshire (Kit Malthouse)—to offer the housing element of universal credit to 18 to 21-year-olds, Shelter said that it was “thrilled”. The chief executive of Citizens Advice, Gillian Guy, said that the Budget changes would
“make a significant difference to the millions of people who will be claiming Universal Credit”.
If only the NAO had read her words and produced its document accordingly.
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
I cannot believe what I am hearing from the Government. They are in absolute denial, and not just about this report. In the past six months, there have been not one, not two, but three High Court decisions or tribunal rulings saying that the Government’s actions with regard to PIP and, most recently, with regard to severely disabled people transitioning on to UC, are discriminatory and unlawful—they have been made to change. But yesterday, the Minister for Disabled People said in a Westminster Hall debate that there was nothing unlawful or discriminatory about the Government’s actions. Does this not reflect what the UN called a “disconnect” between the “lived experience” of disabled people and this Government’s policies? What is the Secretary of State doing to ensure that the implementation of all her policies recognises these judgments?
Ms McVey
Again, I ask the hon. Lady to read the Court judgment. I had already made the decision on the disability premium. The Court did not ask the Government to alter the severe disability premium—we won on that point of law—so I ask the hon. Lady to digest the judgment properly. We have put in an extra £9 billion of health and disability funding to support people. In the last couple of years, we have got an extra 600,000 disabled people into work. That is what this is about—supporting the most vulnerable and helping more people into work. We have seen 3.2 million people move into work, including 600,000 disabled people. The hon. Lady should stop scaremongering. Should people have difficulties, I ask her to assist them so that they can get the best support for what they need. That is what Government Members are doing, and the figures reflect that.
Nigel Mills (Amber Valley) (Con)
The Work and Pensions Committee went to Marylebone jobcentre this morning to see work coaches, who were genuinely excited about the UC roll-out that took place yesterday. I hope to find the same thing in my constituency tomorrow morning. Does my right hon. Friend agree that the key to making this work is for work coaches to have the necessary skills, training, time and access to outside support so that they can give claimants the support that they need to get ready for work?
Ms McVey
That is exactly right. Work coaches have received—and will continue to get—more training. People are talking about work coaches with a renewed enthusiasm because of the support that they are getting. Darren from Wales, who was put on a confidence course—we were utilising our flexible support fund—said:
“My…work coach was fantastic…helped me turn my life around…fulfilling a lifelong dream”.
That is what this is about—turning people’s lives around. I urge hon. Members to visit jobcentres and meet work coaches, who feel liberated for the first time ever because they are helping people into work.
Ruth George (High Peak) (Lab)
I hope that the Secretary of State has read and digested her very own Department’s “Universal Credit Full Service Survey” of more than 1,000 claimants. Its results are as damning, if not more so, than the National Audit Office report. The survey shows that 40% of claimants are in real financial hardship after nine months on universal credit. Only half felt better off with more work, and only half could claim unassisted. In the light of that report and all the other evidence before us, will the Secretary of State please listen to the National Audit Office’s recommendation that the programme should not expand before it can deal with higher claimant volumes? Some 100,000 people a month are moving on to universal credit this year, and there will be 200,000 people a month next year. This will affect 4 million families from the end of next year, and 40% of them must not be in hardship.
Ms McVey
This is the same report that actually says that people are getting into work quicker, staying in work longer, progressing in work better and getting £600 more a month through our support. It is also the same report that focuses on the 16-hour benefit rule, that shows that people were locked out of work under the legacy system, and that shows that our plans will enable people to work 113 million extra hours a year because they are not locked on benefits.
Helen Whately (Faversham and Mid Kent) (Con)
I thank the Secretary of State and her Ministers for listening to suggestions to improve universal credit and welfare assessments. I specifically mention the introduction of video recording for work capability and PIP assessments. Will she update me on the roll-out of video recording?
Ms McVey
I thank my hon. Friend for doing so much in this area. She often meets me to talk about ideas that she thinks would make considerable improvements, and one of her suggestions was video recording. We want to give people confidence in the system and to get transparency in the system, which is why we have said that we will implement the idea. Over the summer we will be testing and learning by working with disabled people and asking them, “Do you feel more confident with this? Is video recording what you want?” We have made a commitment to improve the process through recording.
Chris Stephens (Glasgow South West) (SNP)
I, too, was at Marylebone jobcentre as part of the Work and Pensions Committee’s inquiry into benefit sanctions. Given that the Secretary of State seems open to suggestions, may I suggest that she reviews the policy whereby a claimant can be sanctioned if they refuse a zero-hours contract? Could it not be counterproductive in the fight against poverty to move people from out of work into low-paid, insecure work?
Ms McVey
Yes, of course I will listen to what is best with sanctions, because the key aim is not to give anybody sanctions, but to help people into work—that is what we need to do. Since benefits began, there has always been some form of sanctions regime that says, “If you’re not living up to our expectations, this is what will happen,” but that is minimal on jobseeker’s allowance, and even less on employment and support allowance—less than 1%. We want to make sure that we get people into work, and if the hon. Gentleman has suggestions, I will meet him.
Philip Davies (Shipley) (Con)
We have heard a lot of huffing and puffing from Opposition Members, but they are not offering many solutions. Given that the National Audit Office has said that the Government should continue with universal credit, and that one of its criticisms was that that had not been rolled out quickly enough, does my right hon. Friend think that the Opposition’s solution of pausing universal credit in any way reflects the National Audit Office’s report? Will she continue making improvements to universal credit? I know that my constituents are grateful that she is looking at the issue regarding payment dates and assessment periods. I urge her to continue to look at the improvements that my constituents have suggested to her, rather than pausing universal credit, which would go completely against what the NAO has said.
Ms McVey
I thank my hon. Friend. I went with him to his local Trussell Trust to see what other changes we should be looking at, and one of them involved the payment system for people in work. Remember, this is the first time we have ever had a benefit system supporting people in work. Beforehand, it was always for people who were out of work. I pledged to look at that, and the team is doing so. As I said, we are supporting people.
What my hon. Friend says about the Opposition is quite right. The NAO did not say that we should stop universal credit; it said that we should carry on and, if anything, proceed more quickly. But remember, this is the Opposition who said that our changes in 2010 would result in 1 million more people being unemployed. How wrong they were, and how wrong they are again!
Neil Coyle (Bermondsey and Old Southwark) (Lab)
The NAO says that universal credit is expensive, massively delayed and over-complex, and that the Department will never be able to provide evidence that it helps more people into work. The Secretary of State says that everything is tickety-boo, and that this is a personal, tailor-made system based on the individual. Perhaps I could encourage her to meet my constituent, Augustin, who did not meet the minimum income floor and expected earnings under universal credit and has been made homeless as a result. She could meet him at my local food bank, which has seen a tripling in the number of children it supports as a direct result of universal credit roll-out. Will she meet him?
Ms McVey
A couple of things, starting with the minimum income floor: this was brought in for when people had set up a business and were getting paid below the minimum wage in order to support them and to help them to improve their business case, but so that if that was still not working, we could then say, “How do we help you to become employed, because self-employment is obviously not working for you?” That was why the minimum income floor was brought in. If anybody has been made homeless through this, I will meet them. We have advance payments and support, and our work coaches work with homelessness charities to achieve the exact opposite of that. In fact, I can tell the hon. Gentleman about countless cases where they have stopped people being homeless, but if that has not been the case for his constituent, we need to listen and get that changed rapidly.
Michelle Donelan (Chippenham) (Con)
I entered politics to enable people to get on in life and to open doors to opportunities. Does my right hon. Friend agree that universal credit is a fantastic example of doing that, given that it makes work pay and it is forecast to help 200,000 more people into work than jobseeker’s allowance did?
Ms McVey
My hon. Friend is right. She came into Parliament to help the most vulnerable in society and to help people into work. That is what Conservative Members do, and it is what Opposition Members want to do, but our solutions and ways of doing things are working. I reiterate that an extra 3.2 million people are in work since 2010. Universal credit has come about because the world has significantly changed, even in the past 10 years. Think about technology, automation and people online—the world has changed. We have to deal with the gig economy, with flexible working hours, with part-time and multiple jobs, and with the difference in working life for people who have caring responsibilities for children and adults. That is what this system takes into account; the legacy system could not do that.
Mr Jim Cunningham (Coventry South) (Lab)
There might be 1 million more people in work, but there are also 1 million more people on poverty wages. Food banks used to be the exception to the rule, but they have now become part of the rule. More importantly, I have constituents who I listen to—not the Secretary of State—who are on the personal independence payment but are facing assessment delays and do not know when they will be paid. The process can take weeks and sometimes months, which creates great distress and can add to their illnesses and disabilities.
Ms McVey
Let me clarify that there are 3 million more people in work, not 1 million more. We listened to what MPs and local charities said, and we brought in extra support for anybody who needs money straightaway. That is why there is now a 100% advance straightaway, and it is why, when people move from one system to another, there is an extra two weeks of housing benefit to help them. We are adapting to change so that we make this work.
Stephen Kerr (Stirling) (Con)
I thank the Secretary of State for her statement. I also thank the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for North West Hampshire (Kit Malthouse), who visited Stirling last week and held a roundtable meeting with representatives from the Stirling citizens advice bureau, our local food bank—Start Up Stirling—and Stirling Women’s Aid. It was a very useful meeting, but it was also an example of the engagement of this team of Ministers and their commitment to listening, for which I commend them. Will my right hon. Friend spell out what steps are being taken to improve claimants’ experience of the application and assessment process, especially disabled claimants and those with special needs?
Ms McVey
My hon. Friend talks about the commitment and engagement of all our Ministers and the Department, and about what work coaches do on a daily basis with local charities to get this running as smoothly as possible. I have talked about the extra £200 million going to local councils as part of grant funding, and 98% of councils have taken up that money in order to make the process easier for people, whether they are people with disabilities or those who cannot use IT. This is what we are doing to make the journey easier, and he is right to champion those people who need support.
Rosie Duffield (Canterbury) (Lab)
We have heard that the Secretary of State is keen to meet disability groups and disabled people, and that is fantastic, but perhaps she could tell us how we will improve the situation in which payments to disabled people are always late, never on time and never in full. This is borne out by our casework, and by some of the cases we heard about during my Westminster Hall debate yesterday.
Ms McVey
The hon. Lady says that payments are always late, never on time and not in full, but that is absolutely not correct—[Interruption.] If I did not hear her right and she referred to two thirds of cases, she is still wrong. We need to make sure that people get support, and we know that they do. There is an extra £9 billion of support, whether that is financial support because people need it, or support to get them into work. We know that there are 600,000 more people in work in the last few years, and we are helping even more through Access to Work. Please look sometimes at the positive news and help your constituents a little bit more by focusing them on that additional support.
Rachel Maclean (Redditch) (Con)
May I assure the Secretary of State that I, too, have been to my local jobcentre and spoken to the staff there? I have heard that this is the best system to help people for 30 years—that comes from the horse’s mouth in Redditch.
I used to work in the software industry, and the point about this system is that it is agile. A system on this scale cannot be built in the way that the Opposition suggest; that is not how technology operates. The benefit of this system is that it can learn on an individual basis. The staff in the jobcentre said that there was a different experience for every single claimant, and that is how the system responds. The idea that we should stop it flies in the face of any kind of technology learning—
Mr Deputy Speaker (Sir Lindsay Hoyle)
Order. I am sorry to interrupt the hon. Lady, but I want to get everybody in. Questions must be brief.
Ms McVey
It was lovely listening to my hon. Friend—my learned friend, who knows so much about technology—because those words needed to be heard. As I said, this is at the leading edge of technology. Great Britain is leading the way. Countries that are coming to see us range from Sweden to the United States, Italy, New Zealand, Spain, Canada, Cyprus, France and Denmark. They all want to know how it works to take it back home to their countries.
Stephen Timms (East Ham) (Lab)
When the former Secretary of State was assuring the House that universal credit implementation was going well, it was the National Audit Office that told us what was really happening. Its reports have never been shoddy and have never been scaremongering. They have embarrassed Ministers—that is true—but they have proved to be truthful. The Secretary of State will recognise many of the findings of this latest NAO report in warnings given by Opposition Members when she was in the Department four or five years ago. The central flaw, of course, is the very long wait that people have before they are entitled to receive cash. Her predecessor, who was in the job for only a short time, managed, greatly to his credit, to reduce the waiting time from six weeks to five. Will the Secretary of State commit to build on that progress and reduce the waiting time significantly further?
Ms McVey
I have heard the warnings from the Opposition before. I heard the warnings even about work experience and sector-based work academies—“Oh, we couldn’t do that for our young people.” We did, and youth unemployment dropped by over 43%. I have heard the warnings, and I appreciate that the Opposition do not like the way we do things, but the way we do things provides results—hence 1,000 more people in work every day since 2010.
I do agree with the right hon. Gentleman that my predecessor made significant changes in how we were rolling out this system. We have to make sure that waiting times are reduced as much as possible, but two thirds of those longer waiting times are due to a lack of verification. We need the verification to know whether people are legally entitled to benefit.
Michael Tomlinson (Mid Dorset and North Poole) (Con)
I would like to pick up on the point made by my hon. Friend the Member for Shipley (Philip Davies), because he is right. The National Audit Office report says that the universal credit roll-out is slow, yet Opposition Members want to slow it down even further or even pause it. In noting that obvious tension, does my right hon. Friend agree that the pace of the roll-out, and the test-and-learn approach, mean that the system is continually improving and that people will always have the opportunity to get into work and be better off in work?
Ms McVey
My hon. Friend is, again, correct. The NAO made it clear that the pace could do with speeding up. It also said that we should continue with universal credit, far from what the Opposition are saying. It said that we should speed up the pace and carry on going, and that progress had been made in what we are doing. I say to Members: please read the report.
Mr Kevan Jones (North Durham) (Lab)
Having visited the DWP offices in Stanley and Chester-le-Street in my constituency, can I agree with one thing that the Secretary of State said and say thank you to the staff for their work? However, a real fear has been raised with me by constituents who have poor IT skills. What more can we do to support these individuals and also to expand access to IT, because many libraries have been closed or have introduced restricted hours, which is a stumbling block for a lot of those individuals?
Ms McVey
I thank the right hon. Gentleman for mentioning work coaches in such a positive way, because they are doing a significant amount of work, and I hear only praise wherever I go. The system needs to give people support, whether with IT or debt. Support is definitely there for IT—£200 million has gone to local authorities. The jobcentre can point claimants in the right direction, so I ask them please to go via the jobcentre in these situations.
Kate Green (Stretford and Urmston) (Lab)
Last week, I met a constituent at my surgery who had received just £11 for four hours’ work as a result of less generous earnings disregards and a sharper clawback of council debts than under legacy benefits. What estimates has the Secretary of State made of those features in terms of the continuing employment benefits that she has talked about? Can we help her to approach the Chancellor, as he prepares his autumn Budget, to ask him to put money into the universal credit system to improve the earnings disregards and to lower the rate at which other debt is recovered?
Ms McVey
The hon. Lady has a great deal of knowledge in this area. I am more than happy to meet her so that we can ensure that we have continuous learning and continuous improvement. I am looking closely at the debt repayment that she talks about. I am very much focused on that at the moment. I would love to meet her.
David Hanson (Delyn) (Lab)
Despite what the right hon. Lady says, some 40% of individuals are still not able to access claims because of verification failures due to a lack of IT. In rural areas such as mine, it may be six to 10 miles to the nearest town or jobcentre. What steps can she take to improve verification for individuals who cannot access computers and cannot easily get to a jobcentre or town?
Ms McVey
The right hon. Gentleman raises a fair point on how we get that connection. What we are really focusing on now, as we continue with this continuous improvement, is outreach work to the people who are most in need or most isolated, maybe in a rural community, to help them to get the support they need. That is a part of our continuous improvement.
Diana Johnson (Kingston upon Hull North) (Lab)
Hull is one of the cities that is to see the roll-out of universal credit later this year. We already have high levels of poverty, homelessness, and people using food banks. Following the publication of the report, what other measures does the Secretary of State plan to introduce to make sure that, when universal credit is rolled out in Hull, it is more successful than it has been so far?
Ms McVey
We will make sure that it continues to be successful where it goes, with more people in work more quickly, staying in work and getting progress in work. On average, people will get £600 a month more in work through the extra support that the work coaches are getting. I ask the hon. Lady, too, to go to a jobcentre to find out what is going on and how we are helping people.
Grahame Morris (Easington) (Lab)
I am very disappointed that the Secretary of State is blind to the hardship that is being caused by this policy. Last night in my constituency, a number of constituents, including two of my staff, were involved in trying to raise money for the East Durham Trust food bank through a sponsored run. That food bank was completely depleted. May I respectfully point out to her that it is depleted because of the policies of this Government, particularly the introduction of universal credit, delayed PIP appeals, and sanctions that have been applied to my constituents?
Ms McVey
I am certainly not blind to hardship. We all come into this House trying to prevent hardship. Conservative Members believe that poverty and hardship are prevented by getting people into work and supporting them in work to allow them to fulfil their dreams, hopes and ambitions. That is what we do. As I said, we have provided significantly more money for the most vulnerable, particularly for those with disability and health conditions. We want to support people into work and reduce poverty.
Karin Smyth (Bristol South) (Lab)
As a former member of the Public Accounts Committee, I am very conscious of how much that Committee—and, indeed, the House—relies on National Audit Office reports. I remind the House that the Department does agree with the NAO on the veracity of those reports. Where there are issues, then the Department can follow them up in the Public Accounts Committee.
May I ask about the habitual residency test, which is connected with universal credit claims? I have a constituent who has been refused advance payment due to a delay in her partner’s residency test, and it is not clear when that will be completed. It would be helpful to understand the timescales for the residency test. Can the Secretary of State confirm whether, if the partner fails the residency test, an entirely new claim will have to be made?
Ms McVey
We do not agree with all the conclusions in the NAO report because it did not take into account the impact of the changes. We agree with some of the conclusions, such as the fact that we should continue with the roll-out and speed it up and on the progress made. The habitual residence test ensures that someone is legally entitled to a benefit. Verification was increased in 1994 and tightened in 2004. If someone fails the habitual residence test, they can reapply three months later when they can show that they have links to the country.
Liz Twist (Blaydon) (Lab)
I assure the Secretary of State that I have read the NAO report in full, because I like to know what I am speaking about. I also like to know the lived experience of my constituents in Blaydon, where the full roll-out of universal credit happened just before Christmas. The NAO report certainly does reflect the problems that my constituents face with late payments and delays caused by all kinds of things. In particular, I would like to refer to the problems that some constituents with disabilities are having. A local voluntary organisation came to talk to me recently about problems that a deaf person is having, even with support, in claiming universal credit. Will the Secretary of State look at the provisions for people with disabilities, to ensure that they are able to claim easily? Does she intend to follow any of the recommendations in the NAO report?
Ms McVey
We agree that it is important for people who are the most in need to get the most support. That is what we are doing. We are training more staff in different areas, including in disability needs, and working with various charities to ensure that that happens. However, I give another example. Caroline talks about access to work and mental health support. She has had bipolar disorder all her life but has now finally found a system that is helping her into work and listening to her. That is what our work coaches are about. We are helping more disabled people.
Dr David Drew (Stroud) (Lab/Co-op)
Last week in Prime Minister’s questions, I identified that the waiting time for appeals is 41 weeks for PIP and 30 weeks for ESA in the Gloucestershire area. What will the Secretary of State do to ensure that universal credit appeals do not create further delays, so that people can try to get some justice?
Ms McVey
I heard the hon. Gentleman raise that last week. I want to reassure him that we are working with the Ministry of Justice to increase the number of judges and the number people on tribunal panels. We are also recruiting 150 presiding officers, to ensure that we understand what is going on and make the system smoother and quicker. We obviously need to ensure that that happens for PIP, for ESA and, should we need it, for UC.
Gavin Newlands (Paisley and Renfrewshire North) (SNP)
What an utterly contemptible and triumphant statement we have just heard from the Secretary of State. With the brassiest of necks, she boasts of changes to universal credit that Opposition Members have continually called for, many of which this Government were dragged through the courts before making. Universal credit will be rolled out across Renfrewshire in September. Can the Secretary of State please pause the roll-out and fix the multitude of problems we have heard about today before the people of Renfrewshire are made to suffer the consequences?
Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)
As the result of a freedom of information request, I know that my constituents who are now on personal independence payments but previously qualified for disability living allowance are losing £2 million a year. What will the Secretary of State do to address that obvious failure?
Ellie Reeves (Lewisham West and Penge) (Lab)
Universal credit will be rolled out in my constituency in July. I already deal with lots of constituents who need help getting the benefits they are entitled to, due to unnecessary barriers put up by the DWP. The reality is that half of claimants are unable to make a claim for universal credit online without assistance. What real assurance can the Secretary of State give my constituents? I have heard little today that gives us confidence in the roll-out.
Ms McVey
We are making it a much simpler system, by taking six benefits and turning them into one. Instead of the hon. Lady’s constituents having to get housing benefit from the local council, get tax credits from Her Majesty’s Revenue and Customs and also go to the DWP, they can get it all under one roof, because it is streamlined. If she would care to go into a jobcentre with her constituents, they could see how it now works.
Stephen Lloyd (Eastbourne) (LD)
I appreciate you giving me the opportunity to ask a question, Mr Deputy Speaker, because I was unavoidably detained and missed the early part of the statement.
Listening to the Secretary of State’s answers, it appears that she agrees with anything positive the NAO report says, but the whole stream of things that the NAO says are a real problem with universal credit are completely dismissed out of hand. That is unwise. I powerfully and fiercely supported the £3 billion per annum that was put into universal credit under the coalition, despite putting caveats on the record about some issues with universal credit. Does she agree that, if that £3 billion per annum were still within universal credit, work really would pay, and it would be a substantially successful benefit?
Ms McVey
We have said that the NAO report sadly was out of date and therefore has not taken into account all the changes that have been made. That is unfortunate, because it means that the report is not a true reflection of what is happening. It is unfortunate that the hon. Gentleman was not here for the statement, but if he reads it in Hansard tomorrow, he will have his answers on how well the system is working.
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
On a point of order, Mr Deputy Speaker.
The Secretary of State for Work and Pensions (Ms Esther McVey)
I would. If the hon. Lady read and were, supposedly, at the judgment—[Interruption.] I am giving her a get-out clause. On many of the points, the Government won. They were questioned on how moving area had impacted on people with the severe disability premium. It was not about the fundamental change that I have made to help half a million disabled people by giving transitional protection to people with the severe disability premium, which is different.
Debbie Abrahams
Further to that point of order, Mr Deputy Speaker. There were two judgments. The one that I just referenced, about severely disabled people transitioning on to universal credit, was upheld, and the Secretary of State needs to recognise that.
Personal Independence Payments
Esther McVey Excerpts(6 years, 6 months ago)
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The Secretary of State for Work and Pensions (Ms Esther McVey)
Last week I came to the House to answer an urgent question regarding two PIP appeals to the upper tribunal (known as AN and JM) that I had withdrawn. I was unable to comment on a related case that was pending an appeal to the Court of Appeal (known as LB) as it concerned ongoing litigation, and I committed to updating the House at the earliest opportunity on this case when I was able to do so.
I carefully considered this appeal and have decided to not continue with it in order to provide certainty to the claimant involved. The March 2017 amending regulations (regulations 2(2) and (3) of the Social Security (Personal Independence Payment) (Amendment) Regulations 2017) clarified the Department’s position on PIP daily living activity 3 (managing a therapy or monitoring a health condition) and therefore further litigation is unnecessary.
On Wednesday 13 June I received confirmation that the Court of Appeal had consented to my Department’s application to withdraw the appeal in the LB case, and I am pleased to confirm the claimant will be receiving arrears of benefit as soon as possible.
My Department has now begun work to apply the law as stated by the upper tribunal in LB and will take all steps necessary to implement it in the best interests of all affected claimants for the period 28 November 2016 (the date of the upper tribunal decision in LB) to 16 March 2017 (when the amendment to activity 3 came into force). This work will include a review exercise later in the year. We expect that around 1,000 claimants will be affected.
I am absolutely committed to ensuring that disabled people and people with health conditions get the right support they need. PIP is a modern, personalised benefit that assesses claimants on needs, not conditions. It continues to be a better benefit than its predecessor DLA for claimants with chronic conditions. This Government are spending over £50 billion a year supporting people with disabilities and health conditions—this is higher than ever before.
[HCWS767]
Universal Credit
Esther McVey Excerpts(6 years, 6 months ago)
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The Secretary of State for Work and Pensions (Ms Esther McVey)
Today we publish a summary of the universal credit full business case, signed off by HM Treasury, which shows that when fully rolled out, universal credit is forecast to incentivise 200,000 more people to take employment than would have under the previous system and deliver £8 billion of benefits to the UK economy per year.
Universal credit is the biggest change of the welfare system since it was created. It is a modern, flexible, personalised benefit reflecting the rapidly changing world of work.
It has brought together the six main benefits, including tax credits, providing support in and out of work and assisting career progression. The Government have used a “test and learn” approach as it rolls out across the country.
The Government have already made a commitment that anyone who is moved to universal credit without a change of circumstance will not lose out in cash terms. Transitional protection will be provided to eligible claimants to safeguard their existing benefit entitlement until their circumstances change.
Today I am announcing four additions to these rules to ensure that universal credit supports people into work, protects vulnerable claimants and is targeted at those who need it.
First, in order to support the transition for those individuals who live alone with substantial care needs and receive the severe disability premium, we are changing the system so that these claimants will not be moved to universal credit until they qualify for transitional protection. In addition, we will provide both an ongoing payment to claimants who have already lost this premium as a consequence of moving to universal credit and an additional payment to cover the period since they moved.
Secondly, we will increase the incentives for parents to take short-term or temporary work and increase their earnings by ensuring that the award of, or increase in, support for childcare costs will not erode transitional protection.
Thirdly, we propose to re-award claimants’ transitional protection that has ceased owing to short-term increases in earnings within an assessment period, if they make a new claim to UC within three months of when they received the additional payment.
Finally, individuals with capital in excess of £16,000 are not eligible for universal credit. However, for tax credit claimants in this situation, we will now disregard any capital in excess of £16,000 for 12 months from the point at which they are moved to universal credit. Normal benefit rules apply after this time in order to strike the right balance between keeping incentives for saving and asking people to support themselves.
The process of migrating claimants on legacy benefits will begin in July 2019 as previously announced. In order to make the changes to the system it will be necessary to extend the completion of UC to March 2023. As throughout UC roll out, we will keep the exact timetable under review to do what is sensible from a delivery and fiscal perspective.
These changes will form part of the universal credit managed migration and transitional protection regulations which we intend to bring forward in the autumn.
This Government are committed to delivering a welfare system that supports claimants and is fair to taxpayers.
[HCWS745]
Personal Independence Payments
Esther McVey Excerpts(6 years, 6 months ago)
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
(Urgent Question): To ask the Secretary of State for Work and Pensions if she will make a statement on the withdrawal of her appeals in relation to personal independence payment claimants with chronic conditions, and what further action she will be taking.
The Secretary of State for Work and Pensions (Ms Esther McVey)
I am absolutely committed to ensuring that disabled people and people with health conditions get the right support they need. PIP is a modern, personalised benefit that assesses claimants on needs, not conditions. It continues to be a better benefit than its predecessor, disability living allowance, for claimants with chronic conditions. Under DLA, only 16% of claimants with diabetes received the top rate, whereas under PIP 29% receive the top rate.
I carefully considered these historical cases and decided no longer to continue with the appeals in order to provide certainty to the claimants. Since withdrawing the appeals, I have provided instructions to operational colleagues to put these claims in payment urgently. These claimants will receive any backdated moneys owed, and should receive their first payment within the coming days.
These cases were decided prior to the March 2017 amending regulations—the Social Security (Personal Independence Payment) (Amendment) Regulations 2017—in which the Government clarified our policy for managing therapy under PIP daily living activity 3. These regulations are not affected by our decision to withdraw these appeals.
Debbie Abrahams
Thank you for granting this urgent question, Mr Speaker.
The announcement during the recess that, for the second time this year, the Secretary of State has withdrawn appeals, this time on daily living activity 3 of the PIP assessment—the component on managing therapy or monitoring health conditions—raises serious questions. I would therefore be grateful to the Secretary of State if she told me now how many people she estimates have been incorrectly assessed on the PIP daily living activity 3 descriptor who have either been denied support or have had reduced support.
Will the Department be undertaking a review of past claims relating to this descriptor to identify other claimants who may have been underpaid or denied support? If so, when will the process start and be completed? I am grateful to the Secretary of State for her reassurance that it will take days. Will additional staff be recruited to undertake this process? What assessment has the Department made of the average award to which claimants will be entitled, and when will the payments be backdated to? Will there be an appeal process for PIP claimants who are not contacted by the Department who believe that they should receive back payments? What assessment has she made of the administrative and legal costs to her Department and the public purse?
Given the Secretary of State’s concession in these test cases, does she accept that the changes made in the March 2017 PIP regulations regarding activity 3 are illegal? Given also that there is a review of 1.6 million PIP cases to identify the estimated 220,000 people who have been underpaid with regard to the mobility activity component, will the Secretary of State tell the House how many of the 1.6 million PIP claims have been reviewed to date and when the exercise will be completed? How many of the estimated 220,000 people affected have received back payments to date?
With a record of 69% of PIP decisions being overturned on appeal, it is clear that the assessment process is not fit for purpose. The recent report by the Select Committee on Work and Pensions on the process said that the assessments caused unnecessary stress and anxiety for thousands of people who have been denied support unfairly, as well as wasting public money by sending many decisions back to the courts. When will the Secretary of State get a grip on PIP, and will she immediately stop the reassessment of disabled people with progressive conditions?
Ms McVey
Today’s urgent question was specifically about the cases of AN and JM, on which I have given a decision. For the purposes of clarity, it was not to continue with the court case. Any other issues that the hon. Lady raised are separate, and the question of whether we move on and do other things is not for discussion today. There is a further case under way, and I am sure Mr Speaker would agree that it would be incorrect for me to discuss an ongoing legal case, so I cannot do so. However, for the claimants on whose claims this urgent question was granted, I have, for the sake of clarity, withdrawn the appeal.
We are talking separately about the mobility issue, on which I have given regular updates to the House. We have been working with stakeholders to create new guidance, and we have consulted claimants and stakeholders. We seem to be on schedule for the first payment to go out to them at the start of the summer.
Anna Soubry (Broxtowe) (Con)
As the Secretary of State knows, I have written to her about a number of complaints that I have received from constituents about PIP. While it may not be completely on point with the question asked by the hon. Member for Oldham East and Saddleworth (Debbie Abrahams), I would respectfully say to the Secretary of State that my concern is not about PIP, which is a very good benefit, but about Capita in my area and the assessments. I have a constituent with a severe brain injury, who is receiving DLA and other benefits. He was assessed for PIP and got a zero. He then went through the process and, rightly so, got the full amount. I would be happy to discuss that with my right hon. Friend or my hon. Friend the Minister for Disabled People, Health and Work, but we need to look at the assessments.
Ms McVey
I will of course meet my right hon. Friend to discuss this. Over 3 million people have gone for PIP assessments, and while there have been appeals by 9% of them, 4% of those have been overturned. The vast majority of people are receiving awards, and under PIP rather than DLA far more people are receiving higher awards. Under this Government, from 2010 right the way through to 2022, more money will go to disabled people in need than under DLA in 2010. As I said, I am more than happy to meet my right hon. Friend.
Margaret Greenwood (Wirral West) (Lab)
Thank you, Mr Speaker. I congratulate my hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams) on securing this urgent question. I was disappointed to hear the Secretary of State be so dismissive of concerns that have been expressed by Members right across the House. For the second time this year, the Secretary of State has been forced to acknowledge that her Department has made a serious error in assessing claims for personal independence payments. The previous error resulted in potentially 220,000 people being underpaid PIP, causing misery that could and should have been avoided. The Secretary of State now admits a second error, this time relating to activity 3 of the daily living component, “Managing therapy or monitoring a health condition”. The Department has again got the law wrong on interpreting PIP descriptors, leading to perhaps thousands of disabled people not getting the crucial support that they need.
In January, when the DWP last admitted that there had been an error, my hon. Friend the Member for Battersea (Marsha De Cordova) asked the Minister for Disabled People, Health and Work a series of questions that should have been answered but still have not been. If anyone is to have confidence in the Department, the Secretary of State must now answer our questions.
How quickly will the Department be able to identify claimants? Will the Secretary of State publish her criteria for reviewing cases? Will she include the cases that did not originally score sufficient points? Exactly how many claimants have been wrongly assessed for PIP? What assessment has she made of the administrative cost to her Department of undertaking yet another complex exercise? Given that this is the second error in the Department’s interpretation of its own guidance to come to light in six months, what reason do disabled people have to believe that her Department is fit for purpose?
Ms McVey
This is a brand new benefit that, for the first time, looks not just at people with physical disabilities, but fundamentally at all the disabilities people have—cognitive, sensory, health and mental health conditions—and supports more people than DLA ever did.
Nobody was forced to come here to explain why I did not appeal the mobility case. I made a decision by myself, which I thought was true and in keeping with how PIP was designed, and I made sure that we did not seek leave to appeal that.
There was a period of uncertainty for the five months between the court case and when the new regulations came into play. I agreed that in the cases of AN and JM, they should not be living in uncertainty. I believe that in both instances, I have done the right thing in not seeking leave to appeal.
I appreciate that the Opposition do not like to hear the fact that we have, I would say, made a positive move by not seeking to appeal and by supporting these extra people. No one would believe it from the screams from the Opposition Benches, but what I have decided to do and what this Government have decided to do is to support disabled people as best we can and to provide this new benefit, which is a personalised, forward-looking benefit, which was not the case with DLA.
Jeremy Quin (Horsham) (Con)
How many claimants will be affected by this decision, which I welcome? Will my right hon. Friend reassure the House that it will in no way impact on her sterling efforts to ensure that more disabled people find their way into work?
Ms McVey
My hon. Friend raises several questions about helping disabled people into work. Over the last three years, we have helped more than 600,000 people into work. People will know that PIP is a benefit for those in work and those out of work, and we have helped another 200,000 people in work through PIP. This is what we are about: supporting disabled people who are in work and out of work, and bringing in a more tailored and personalised benefit. What I will say is that if something has gone wrong and if something is not right, we will correct it to make sure that people get the payments they deserve.
Alison Thewliss (Glasgow Central) (SNP)
The credibility of this Department lies in tatters. The Secretary of State celebrates the fact that the Government are not appealing this decision, but the fact remains that they had to be dragged through the courts in the first place to be proven wrong.
I have some questions for the Secretary of State. Will she commit to ensuring that the money for the back payments does not come out of existing DWP budgets? When will the first payments be made and will they be fully backdated, so that nobody loses out? Why are decision makers making decisions as if the High Court case never happened? I have constituency cases in which people are being assessed under unlawful criteria and then forced into the appeals process, all of which delays payments to which they are fully entitled and means that they are living in poverty. When will new guidance be issued to Jobcentre Plus staff and claimants, because there is so much confusion out there that nobody is aware of what they are entitled to?
This Department is in no fit state to be undertaking the biggest shake-up of social security this country has ever seen. It is incompetent and failing the most vulnerable in our society, and the Secretary of State must do something about it.
Ms McVey
I reiterate that under PIP we are supporting more people than before and giving them a higher rate than they ever got before. If the hon. Lady is questioning whether money is being handed out to people who need it now, I ask her to consider how many fewer people were getting that support under DLA, the previous disability benefit. On the mobility component, in respect of which I rightly did not seek leave to appeal, we are supporting an extra 200,000 people—I take it that both sides of the House agree I should be helping an extra 200,000 people. That is what we are doing. That is what we are aiming to do. I think I said earlier that the first payments would be made at the start of the summer; I meant at the end of the summer. As I said, in respect of the specific cases that gave rise to the urgent question, those concerned will get their first payment in the coming days.
Vicky Ford (Chelmsford) (Con)
How much money was spent on disability payments in 2010, how much is being spent today, how much will be spent in 2020, and when will the Secretary of State introduce recordings of PIP assessments?
Ms McVey
I can tell my hon. Friend that the expenditure has continued to go up and will go up every year until 2022; it has increased from 2010. For PIP, DLA and attendance allowance alone, expenditure is £5.4 billion higher than it was in 2010. There will be future announcements on the continuous improvements for PIP, but I can say now that we want to introduce video recording—that is key—and when we do we will start with pilots to make sure it is right. We want a modern benefit that looks after and reaches out to disabled people and gives them the money they should be getting.
Sir Vince Cable (Twickenham) (LD)
The Secretary of State has acknowledged that the new benefits are available for a wider range of conditions, including neurological conditions and mental illness. What steps is she taking to ensure that the assessors are fully competent to make these judgments on the wider range of conditions?
Stephen Kerr (Stirling) (Con)
It is important to put the urgent question and the comments from the Opposition in context. Will my right hon. Friend confirm that the Government are spending more than £50 billion on supporting sick and disabled people, and that we spend more in this country on supporting disabled people than any other country in the G7, barring Germany?
Ms Angela Eagle (Wallasey) (Lab)
But the Secretary of State has been dragged to the House by an urgent question to talk about her decision not to pursue the appeal in these cases concerning activity 3 of the daily living component. She has very coyly failed completely to answer the question of how many people her decision affects. We know that 165 million people receive the component—[Interruption.] I mean 1.65 million—it is still a lot. Will she now answer: how many people are affected directly by the decision she took in the recess to withdraw the appeal, when will these people get the right amount of money and when will they be assured that they have not been illegally underpaid?
Ms McVey
The urgent question was about two cases in particular. This is about those two cases: it is about two people who were affected, and who will receive their money immediately. We are assessing the position, but that is what the urgent question was about. If Members want to talk about matters outside the scope of the urgent question, that will be for a different occasion and a different day.
Alex Burghart (Brentwood and Ongar) (Con)
Will my right hon. Friend confirm that she is considering simplifying the PIP assessment forms to make the process of applying for the benefit less stressful for people?
Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)
This is not the only PIP case that the Government have lost. On 21 December 2017, the High Court ruled that PIP changes made earlier in the year had been “blatantly discriminatory” against people with mental health conditions, and “cannot be objectively justified”. However, six months later, there is still no confirmed timetable for the full implementation of the High Court’s judgment and the delivery of back payments to the people affected. Will the Secretary of State tell us today—six months on—when that High Court ruling will be implemented?
Ms McVey
I have answered that question several times today. As I have said, we have been preparing new guidance and consulting stakeholders on what is best for that guidance and how to work through it. As I have also said, the first payments will be made at the end of the summer. As the hon. Lady will appreciate, having to assess such a number of people will take—and has taken—a bit of time, but the process has been thorough and correct.
Kevin Foster (Torbay) (Con)
It is interesting to hear criticism of the decision not to carry on fighting with lawyers. It seems that some people would have preferred the Secretary of State to carry on and appeal against the ruling, wasting money on further legal challenge. Will she reassure me, however, that she is considering the recording of the PIP assessment process to provide quality assurance, and to ensure that the points raised by this case are taken up in future assessments?
Ms McVey
My hon. Friend is right. As I said earlier, more than 3 million assessments have been carried out, 9% have been appealed against and 4% have been overturned, so it is clear that the vast majority are right. However, we want to ensure as far as we can that all of them are right. If that means recording assessments—and I personally would prefer video recording—that is what we should do, so that everyone can have confidence in what is going on.
Jim Shannon (Strangford) (DUP)
I thank the Secretary of State for her statement. PIP applicants who are wards of court because, owing to brain injuries, they are unable to make any decisions for themselves must nevertheless go through the application process and are subject to house visits, although, according to the court, they cannot be allowed to make any financial or personal decisions. Is it not time that such people did not have to go through a process that clearly disadvantages them and causes considerable trauma and angst?
Michelle Donelan (Chippenham) (Con)
Will my right hon. Friend confirm that not only are more people able to claim PIP than were able to claim DLA, but satisfaction has risen, as has been proved by satisfaction surveys?
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
Perhaps the Secretary of State can also explain why brave service personnel suffering from chronic conditions, including PTSD, are being denied access to their PIP entitlements. I have been contacted by a litany of constituents in recent weeks and others supported by the Welsh Veterans Partnership, including my constituent Justin Smith, whose medical discharge documents have been refused by the DWP, while others have been unable to get through on phone lines or are being refused home visits, against DWP guidance. Can the Secretary of State explain what is going on in her Department?
Tom Pursglove (Corby) (Con)
Is there a formal review process in place for assessments that can be responsive to any trends or issues that might arise?
Ms McVey
My hon. Friend raises the good point of how we can make the assessments better: how can we make sure they are consistent and the best we can possibly do? We are constantly reassessing them and trying to make the service even better, whether through videos to help people, improved guidance for GPs and healthcare professionals, improved communications, or special software so that people with disabilities can read about the service. Those are the sort of constant improvements we are carrying out, and we will continue to do that so as to make sure we have the best system possible.
Stephen Lloyd (Eastbourne) (LD)
Mr Justice Mostyn in his ruling on Motability, which the Government also accepted, said of the 2017 regulations:
“The wish to save nearly £1 billion at the expense of those with mental health impairments is not a reasonable foundation for passing this measure.”
The Secretary of State has made a welcome second U-turn, so do the Government recognise that not cutting corporation tax might have been a fairer and more honourable way of balancing the books?
Ms McVey
We have not saved any money; let me make that point clear now. We spend more money on PIP, and will continue to do so to 2022—more money every year from 2010 than we ever spent on DLA. If I can dispel the myth that anybody is saving any money through moving from DLA to PIP, that will be the best thing I can do today. This Conservative Government will be spending more on disabled people through PIP from 2010 through to 2022.
Richard Graham (Gloucester) (Con)
I welcome the Secretary of State’s announcement today because I do not believe that fighting these cases in court is in the long-term benefit of anyone in this country, so I congratulate her on that. Clearly any of these PIP assessments can be incredibly stressful for our constituents and the system must react when mistakes have been made or situations are difficult. But anecdotally what I am hearing, especially from people with degenerative diseases like MS, is that the PIP system is working better than DLA. Many statistics have been bandied around today, but one statistic is that 30% rather than 15% are now getting the top level of benefit, and that is making a real difference to many individual lives. Can my right hon. Friend confirm today whether the number of assessment appeals is going up or down and whether the percentage of those being accepted as against those being rejected is going up or down?
Ms McVey
I have already given the numbers, which show that we are getting the vast majority right: 9% are appealing and 4% are being overturned. This brand new benefit is a personal and modern benefit, and we are adjusting it so that it meets the needs of a 21st century benefit. That is what we are seeking to do. So for the first time we are looking at mental health conditions and exploring the extra support we can give there. This Government, across all Departments, are spending £11 billion more on mental health, so under PIP 66% are getting the higher daily living rate, whereas the figure for that under DLA would have been 22%.
Clive Efford (Eltham) (Lab)
The Secretary of State has failed to say how many people can expect their PIP to be restored as a consequence of this appeal; she said that it will be the two people involved in the two cases mentioned. Will she undertake to come back and make a statement to this House when she has had a chance to research that and tell us which of our constituents can expect to have their PIP reinstated and how many are involved?
Ms McVey
If I did not say it clearly enough at the start, this was an urgent question granted specifically on two cases. There is another case going through the court at the moment, which would be sub judice and I would not be allowed to speak about it at the Dispatch Box—[Interruption.]
Mr Speaker
Order. The Government are a party to the case, and I am advised that, strictly speaking, the case is not sub judice—[Interruption.] Order. There seems to be a lot of noise and all sorts of naysaying and unattractive chuntering from a sedentary position. If the Secretary of State wished to go beyond the narrow terms of the urgent question, especially in view of the fact that its wording refers to “further action” by the Government, the Chair would not wish to stand in her way. It is a matter for her to judge. However, there is no need for this cacophony from a sedentary position. It is really rather unseemly, and I feel sure that it will now cease.
Dr Philippa Whitford (Central Ayrshire) (SNP)
Thank you, Mr Speaker. As has been mentioned, it is six months since the Government agreed to change the position of people suffering from mental health issues not being awarded mobility support. I too have several veterans suffering from PTSD, including one particularly tragic case of a young man who was involved in two explosions on his patrol, where he was covered in blood, diesel and body parts. He has had to sell his car, but he cannot face getting on a bus because the stench of diesel brings on flashbacks. His application for mobility support was turned down. When will the Government bring in the changes and the new guidance so that people can get a fair assessment?
Ms McVey
I appreciate the personal story that the hon. Lady has just told me. We are gradually getting in touch with all the people who might have been affected by the fact that I decided not to appeal so that the claimants could be supported, and her constituent will be contacted in due course. We have been working through the guidance, and the first set of people will be getting paid by late summer. To follow up on the point that Mr Speaker raised, I took legal advice before I came into the Chamber today about what I could say about an ongoing legal position. The advice was that I should not be talking about an ongoing legal case, but obviously when we get that decision through, I will either be back here with a statement or making a written statement to explain what is going on.
Eddie Hughes (Walsall North) (Con)
PIP is of course a valuable benefit payment, but will my right hon. Friend confirm that the Government are working to ensure that a further 1 million disabled people end up in work?
Ms McVey
My hon. Friend is correct. That is what we are looking to do, and in the last couple of years we have helped 600,000 disabled people into work. We have given extra support through PIP, because that can be an in-work or an out-of-work benefit, and we are also helping through Access to Work. This is about enabling people so that they can live as full a life as possible in society. That is what this Conservative Government are about.
Mrs Madeleine Moon (Bridgend) (Lab)
I chair two all-party parliamentary groups: on motor neurone disease and on Parkinson’s. Research conducted by the groups, in conjunction with the charities, on the transition from DLA to PIP has shown that 25% of people with motor neurone disease—a progressive, degenerative, life-ending condition—had a reduction when transitioning to PIP. It also showed that 25% of those with Parkinson’s lost some or all of their benefit, but that 70% of those people had it returned on appeal. How can the Secretary of State say that the system is working when this disaster is being faced by very ill people?
Ms McVey
As I have said throughout, we look to get things right first time, but we have processes in place. If things are not right, there is a reconsideration process, and if that is not right, there is an appeal process. Cases are usually turned around because people bring in extra medical information, and more people are getting the higher rate than ever before. The hon. Lady is quite right, however, that we need to be able to give people the support that they need.
Sir Peter Bottomley
It is good that my right hon. Friend can be answering for two individual claimants and that she has given the background about the increase in disability spending. May I also say, “Thank you,” for saying that we can refer to individual cases? I have a victim of the infected blood scandal who is being asked to attend an assessment, but I do not think that an ordinary PIP assessor will actually understand what that person has been through for the past 20 or 30 years. Some such things need to be dealt with far more sympathetically and appropriately.
Gavin Newlands (Paisley and Renfrewshire North) (SNP)
I have spoken to countless constituents who are completely petrified by the PIP process, which causes debilitating stress and anxiety that, in some cases, compounds the effects of their existing condition. When will the Secretary of State go back to the drawing board and come up with a benefit that represents a more humane method of supporting those who need it the most?
Ms McVey
Through the extra guidance, the videos and the support that a companion who accompanies the individual can offer, we need to ensure that individuals do not think that the assessment will be scary or petrifying. We have to calm their nerves to ensure that they go for an assessment to get the money that they need. We have to set about making the environment something that they want to go through. Opposition Members do not always help their constituents, because what they sometimes say in the Chamber spreads unnecessary fear.
Diana Johnson (Kingston upon Hull North) (Lab)
I may have studied for my law degree a long time ago, but I certainly remember that a case is no longer ongoing when an appeal is withdrawn by one of the parties.
Would the Secretary of State like to explain why so many victims of the contaminated blood scandal who received DLA for life are now being refused the support that they so badly need under PIP?
Ms McVey
Just to clarify, I am talking about two specific cases today. Another case is ongoing, but we will not be talking about that because we are waiting for the decision. They are all linked together, but that is the difference between that case and the other two.
We must ensure that the right people are getting the support that they need, and more people are getting that support. We have a reconsideration process and an appeals process for anybody who wants to query why they are not getting support.
Nic Dakin (Scunthorpe) (Lab)
On Friday, a constituent told me that when they received their PIP assessment it did not reflect the truth of the conversation that they had had with the assessor. That happens too often to be just coincidence. What is the Department doing to get proper quality assurance in place, so that we do not have constituents coming forward with the same tale again and again?
Ms McVey
The hon. Gentleman makes a good point. We must have faith in the conversations and assessments, which is why I have looked forward to having them videoed to ensure that we see, hear and know what is going on. If the process is videoed, people will get an honest appraisal of what went on and, equally, we might see a more suitable conversation between the assessor and the individual.
Alan Brown (Kilmarnock and Loudoun) (SNP)
On Friday a constituent came to my surgery. It was quite obvious, and he explained to me, that he struggles to function due to a combination of excruciating pain in his shoulders and the severe and heavy pain medication he is on, yet he got zero points for mobility and lost his appeal. Hopefully there is a chink of light at the end of the tunnel for him, but what comfort does the Secretary of State think he will get from her standing and bragging that the Government have not appealed, that more money is being spent and that more people missed out on DLA, because that is not helping my constituent?
Ms McVey
I am sorry if the hon. Gentleman thinks that anybody was bragging. It is known as just putting the facts on the record after people have sometimes sought to provide misinformation or incorrect facts, merely by stating that more people are getting the higher benefits and more people are getting PIP than were getting DLA. That really needs to be heard so that we dispel any myths from the Opposition.
Neil Coyle (Bermondsey and Old Southwark) (Lab)
The Secretary of State suggests that PIP is more generous than DLA. Can she confirm that the Department’s analysis shows that, once it is fully rolled out, PIP will support 500,000 fewer disabled people than DLA? Can she conform that, six months after the Government admitted that a previous mistake on assessments affected 220,000 disabled people, not one of those disabled people is receiving the full benefit to which they are lawfully entitled?
Ruth George (High Peak) (Lab)
Why does it take the DWP to be staring down the barrel of losing a case in court for it to admit that it is unfairly and illegally penalising disabled people? What will the Secretary of State do to ensure that no further cases have to progress this far, with all the consequent suffering and expense to the taxpayer?
Ms McVey
It was in my first couple of days in this job as Secretary of State that I sought not to appeal the court case. There was no staring down a barrel and no waiting for me; I did it within a couple of days. Why? Because I think we have to live up to what PIP was meant to be and to the people it was meant to support.
When these two court cases were brought to my attention, which was only a couple of weeks ago, I did exactly the same thing. I will look at the cases when they are brought to me, and I will make sure that this Government do the right thing to support the right people the vast majority of the time.
Peter Grant (Glenrothes) (SNP)
Following on from those assertions, is the Secretary of State actually telling Parliament that her decision in these cases was not influenced in any way by any legal advice she may have had on the likelihood of losing had the cases gone the full course?
Oral Answers to Questions
Esther McVey Excerpts(6 years, 7 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Stephen McPartland (Stevenage) (Con)
The Secretary of State for Work and Pensions (Ms Esther McVey)
I would like to start by thanking my hon. Friend for his support in securing the Budget changes. We have increased advances, so claimants can receive up to 100% of their entitlement within days of a claim. We have removed waiting days, so the time to the first full payment is reduced, and we have given claimants an additional two weeks of housing benefit to provide extra support when they transition to universal credit.
Stephen McPartland
I campaigned hard for those changes, along with Members on both sides of the House, and I am delighted that the Government listened and delivered. Does the Secretary of State have any information or feedback on how those changes are helping claimants on the ground?
Ms McVey
People are moving on to universal credit now with a smoother transition. When on universal credit, they are getting into work quicker, staying in work longer and looking for more opportunities in work. They are also getting more personalised support through the claimant commitment, which is helping them whether they are in debt or need IT support. This is about developing universal credit to respond to people’s needs.
Stephen Timms (East Ham) (Lab)
The modest changes in the Budget were welcome, but I wonder whether the Secretary of State has seen the recent research showing that food bank demand is growing much faster in areas where universal credit has been fully rolled out than it is elsewhere. Does she have substantial proposals to solve the very serious problems with this new benefit?
Ms McVey
They were not modest changes; they were quite significant changes, made after listening to what people said on the ground and meeting various action groups on the ground to see what was needed. We listened and we changed, and that is why we have done a very slow roll-out. I meet some of the poverty action groups across the country on a weekly basis to ask what else can be done. All have welcomed the changes we have put in place and the record number of people we have now got into employment, but of course where we need to give debt support or advances, we will continue to do so.
Maggie Throup (Erewash) (Con)
With universal credit being fully rolled out in Erewash, can my right hon. Friend state how universal credit can impact the claimant count numbers and what can be done to explain like for like?
Ms McVey
My hon. Friend asks a pertinent question. Employment is going up and unemployment is going down, which is reflected in the numbers, but because this is a brand new benefit that takes on people in work and people out of work, we are seeing the number of people claiming double. We are now giving support and career progression to people in work, so we will see the claimant count increase and, in some areas, double.
Neil Gray (Airdrie and Shotts) (SNP)
Increased debt, job insecurity, rising stress, housing insecurity and unpredictability of income are all highlighted by Gingerbread as issues raised by single parents in receipt of universal credit, and it states that the Government need to go further. How does the Secretary of State plan to address those problems and the estimated 165,000 single parents of pre-school-age children who are highlighted by Gingerbread’s report as being at risk of poverty and debt from new universal credit conditionality?
Ms McVey
As it is a brand new benefit, we are providing extra childcare support, which is needed by people with children and lone parents. We are also giving tailored support. The claimant commitment and the one-to-one relationship that people have with their work coach is about really understanding the needs of the individual. That is what we are doing to help people to get into a job, get a career and fulfil their job ambitions.
Margaret Greenwood (Wirral West) (Lab)
The Department for Work and Pensions has been forced recently to reveal that a fifth of universal credit claims are being turned down because claimants are not managing to negotiate the complex application process, meaning that thousands of people are falling out of the system. Claims must be made and managed online, even though, according to an OECD study, 40% of unemployed adults in England have low basic skills. Meanwhile, one in 10 jobcentres are being closed, removing face-to-face support from communities, and the Government are speeding up the roll-out of the full service yet again. What action are the Government taking to identify the factors leading to such a high level of failure?
Ms McVey
Obviously, this benefit is not failing. That is why we are seeing extra support and why we are seeing record numbers of people in employment and record low unemployment. However, the hon. Lady is right to talk about the low IT skills that people have. Part of the universal support we are giving is to educate and to enable people because the IT skills they need to claim a benefit are the same IT skills they need to get a job and to get cheaper deals online. That is what we are providing. Again, if they are in debt, we are providing that personalised support. As we close some of the jobcentres, most important is the outreach work that we do. As we seek to help more people and some of the most difficult to help into work, we are doing outreach work through the flexible support fund.
Liz Twist (Blaydon) (Lab)
The Secretary of State for Work and Pensions (Ms Esther McVey)
Youth employment has risen by 150,000 since 2010 and now stands at 3.86 million. The UK has the third highest youth employment in the G7 and the proportion of all 16 to 24-year-olds in work or full-time education now stands at 85%.
Douglas Ross
Youth unemployment has fallen by 43% since 2010. Will the Secretary of State join me in welcoming the work in Moray during Meaningful May, when 93 students have taken part in work placements, taking the total for this year to 330? Will she praise the 186 employers who have facilitated these projects and explain what further the Department is doing to get more young people into work?
Ms McVey
I will indeed welcome the work that is being done in Moray not only by all the work coaches and the businesses there, but by my hon. Friend, who does so much in his local area. On top of that, Scotland has a different system in place, with the youth obligation traineeships supporting work experience, supporting sector-based work academies through Skills Development Scotland, and supporting and getting people excited about going into a job—excited about what they can do and what they can offer Scotland and the world.
Ruth Cadbury (Brentford and Isleworth) (Lab)
Will the Secretary of State commit to raising the minimum wage for young people so that they are not subject to lower rates of pay, and to enacting a real living wage, as Labour will, so that this Government’s promise of making work pay is not an empty one?
Ms McVey
Obviously, the hon. Lady will know that we have increased the living wage so that the lowest-paid workers have had the fastest wage increase in 20 years. That is what we are doing. What we will do—we are keeping this under constant review—is give support to young people. First and foremost, there are the apprenticeships, the traineeships, the work experience and the education we can give them, all of which are at record highs.
Michael Tomlinson (Mid Dorset and North Poole) (Con)
Ms McVey
I thank my hon. Friend for the work he does on the APPG. I know how important youth employment rates are to him and the group. It will either be me or one of my colleagues—perhaps we will all be there at the APPG once the work has been completed. We are putting the right building blocks in place for young people. It is about education. It is about that work experience. Many young people have never had work experience, so they do not have the soft skills. That is what we are trying to put in place and we would be delighted to go to the APPG.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
The Tory party launched yet another policy group this morning. Is it not about time that these groups were given some serious work about how we really tackle youth unemployment, how we get more kids into real apprenticeships, and how we tackle child poverty, which is not going down?
Ms McVey
I might not have said it enough today, so I will put it on the record again: youth unemployment is down 43% since 2010. The number of children not in education, employment or training is down 370,000 since 2010. That is what we are doing. We are providing the building blocks to support young people and to get them into a job, living independently. That is what a Conservative Government does—watch and learn!
Helen Hayes (Dulwich and West Norwood) (Lab)
Priti Patel (Witham) (Con)
The Secretary of State for Work and Pensions (Ms Esther McVey)
The Department for Work and Pensions plays a vital role in social mobility, including by helping people to enter the labour market or to progress in work and earnings. The number of people in employment across the country is at a record 32.34 million, and that includes historically under-represented groups, among them disabled people. As a consequence, we have reduced the number of children living in workless households by 600,000.
Priti Patel
Training opportunities are vital to boosting social mobility, because they help to get people into work. What is the Secretary of State doing to work with recruitment agencies, such as Prime Appointments in Witham, to enable more people to get into work, especially those in part-time work or on universal credit?
Ms McVey
My right hon. Friend is living proof of social mobility—her family came here from Uganda, started a newsagents and expanded their business—and is right to ask: how can we get people into a job, and how can we help with recruitment and apprenticeships? I am working with the Recruitment and Employment Confederation to look at those opportunities and also with the Secretary of State for Education—that is where responsibility for apprenticeships is held, but we will do all we can to support my right hon. Friend.
Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
In Stoke-on-Trent, one of the best ways of achieving social mobility is through our wonderful further education system, so will the Secretary of State please impress upon her colleagues at the Department for Education that properly funded further education, whether that be sixth-form colleges or other establishments, is needed and that they must make sure it is provided?
Ms McVey
I will send the hon. Gentleman’s message to the Department for Education, but in this Department we do as much as we can, whether through traineeships or sector-based work academies, to support young people. It is about choice: do they want a job, an apprenticeship or further education?
Philip Davies (Shipley) (Con)
Helping more carers to get into work and stay in work would certainly boost social mobility in the UK. I am grateful to the Secretary of State for coming to Shipley to visit Carers’ Resource. What progress has been made on developing a kitemark for employers to help more carers get into work and stay in work?
Ms McVey
My hon. Friend raises a very good point: how do we best support carers, who do a vital job to support other people? When I visited his constituency and Carers’ Resource and met some of its carers, they told me they wanted a kitemark—they wanted to know which was a good business, who they could work for, who was deploying best practice. The Department of Health and Social Care is working on this with Carers UK, but we are also starting a new group between Departments, and I encourage Carers’ Resource to take part.
Kerry McCarthy (Bristol East) (Lab)
One of the hardest-to-reach groups of children are those living in kinship care with chaotic family relationships: one moment they might be with their real parents, the next they might be being looked after. What discussions is the Secretary of State having with the children’s Minister to make sure they do not slip through the net?
Ms McVey
The hon. Lady is right about kinship care and to ask how we can support kinship carers and those children, which is why I was pleased to be able to say that through tax credits we would be maintaining our vital support for kinship carers. I am more than happy to speak to other Ministers to ensure we give those children and families the best support we can.
Jo Platt (Leigh) (Lab/Co-op)
Layla Moran (Oxford West and Abingdon) (LD)
The Secretary of State for Work and Pensions (Ms Esther McVey)
Further to our discussions in this House regarding Motability and my promise to seek a National Audit Office inquiry into it, I am pleased to announce that agreement has been reached and that the NAO will begin its inquiry into Motability.
Layla Moran
I have a young constituent who has PKU, a rare inherited disorder that requires a strict diet and treatment for life. She had been in receipt of the disability living allowance, but now that she has turned 16, she has scored zero in every personal independence payment category. Will the Minister meet my constituent and me so that we can iron out this clear case of “the computer says no”?
Damien Moore (Southport) (Con)
Liz Twist (Blaydon) (Lab)
Kirstene Hair (Angus) (Con)
According to The Guardian on Saturday, a report shows that the share of employees who are officially classified as low paid has fallen to 18%, the lowest level since 1982. Does that not show the Conservative party is the party of getting more people into work and ensuring they remain in work? What will the Government do to ensure that that continues?
Ms McVey
My hon. Friend the Member for Angus (Kirstene Hair), who does so much for her constituents, is spot on. The report was published by the Resolution Foundation. Over the past eight years, we have got a record number of people into work—we have got 3.24 million more people into work. That was step one. Step two was increasing the pay of the lowest paid, which we have done. Step three has to be about career progression and moving up the ladder, and that is what we will now be doing.
Deidre Brock (Edinburgh North and Leith) (SNP)
Atos staff are being asked to squeeze extra assessments into their working day, and one constituent had her assessment cancelled several times because the assessors were ill. The two things are clearly linked, so how will the Minister change the system to ensure that staff are not made ill by the job and people like my constituent can get their cash?
Universal Credit and Child Tax Credit
Esther McVey Excerpts(6 years, 7 months ago)
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The Secretary of State for Work and Pensions (Ms Esther McVey)
I can today announce that we will extend the existing support within universal credit and child tax credit for children who would otherwise be likely to be in local authority care, including children who are adopted or looked after by non-parental carers, also known as kinship carers.
The policy to provide support in child tax credit and universal credit for a maximum of two children ensures parents in receipt of benefits face the same choices as those supporting themselves solely through work.
We recognise that not all parents are able to make the same choices about the number of children in their family. That is why exceptions have been put in place to protect certain groups. Exceptions apply to third and subsequent children who are part of a multiple birth; adopted or in non-parental caring arrangements when they would otherwise be in local authority care; or likely to have been born as a result of non-consensual conception.
For children who would otherwise be likely to be in local authority care, these exceptions will be applied regardless of the order in which they joined a household.
The Government recognise the immense value of the care that non-parental carers and adoptive parents provide. The role that those parents and carers play in helping to bring children up who could otherwise find themselves in local authority care is vital. It is for this reason that we are ensuring that they are supported by enabling them to access benefit entitlement in the same way as birth parents.
Since becoming Secretary of State, I have been reviewing this issue carefully to ensure that the exceptions, as they apply to non-parental carers and adoptive parents, provide the right level of support.
Last week, I welcomed the High Court ruling that the policy to provide support for a maximum of two children was lawful overall. I have considered the part of the judgment that pertains to non-parental carers alongside internal reviews that the Department for Work and Pensions carried out in parallel to the legal case, and I consider that it is right that this change should be extended, not just to those in non-parental caring arrangements, but to include children who are adopted who would otherwise be in local authority care.
This change will reassure those non-parental carers and parents who adopt and are eligible for this child support, that it will be available to them regardless of the order in which their children joined the household.
[HCWS653]
Welfare Reform
Esther McVey Excerpts(6 years, 8 months ago)
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The Secretary of State for Work and Pensions (Ms Esther McVey)
This Government are committed to providing young people with the support they need to get started with their working lives. We do this through providing financial support when it is needed, and support to either “earn or learn”—delivered through the simplified universal credit (UC) benefits system. In line with this aim, I am today announcing that the Government will amend regulations so that all 18 to 21 year olds will be entitled to claim support for housing costs in UC.
Currently, 18 to 21 year-olds who make a new claim to UC in UC full service areas need to meet certain requirements in order to receive housing support. The change I am announcing today means that young people on benefits will be assured that if they secure a tenancy, they will have support towards their housing costs in the normal way.
Young people in return will have a youth obligation—an intensive package of labour market support for 18 to 21 year-olds looking to get into work. We are committed to providing targeted support for young people so that everyone, no matter what their start in life, is given the very best chance of getting into work.
This decision ensures that there are no unintended barriers to young people accessing housing on the basis of their age alone and getting into work, and is in line with the Government’s launch of the Homelessness Reduction Act 2017 and our commitment to eradicating rough sleeping by 2027.
[HCWS611]
Oral Answers to Questions
Esther McVey Excerpts(6 years, 8 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Eleanor Smith (Wolverhampton South West) (Lab)
The Secretary of State for Work and Pensions (Ms Esther McVey)
There are 12 Carillion defined benefit schemes in a PPF assessment period. The PPF is working with scheme administrators to determine whether they can pay pensions at or above PPF benefits. Where a scheme cannot do this, the PPF will assume responsibility and pay compensation.
Eleanor Smith
The workers in the Carillion defined contribution scheme should not have to suffer any detriment to their pension. Will the Government be looking to draw back bonuses paid to the Carillion executives to put back into the pension funds?
Ms McVey
As I said, the Carillion schemes are at present in the assessment period for the funds, and we are looking at what happened in those instances. The hon. Lady will be pleased to know that we have brought forward our White Paper on defined benefits and increasing the regulator’s powers to support these schemes in the best way possible, to make sure pensioners get those pensions that they so rightly deserve. It is the Conservative party that will be strengthening that for workers, to make sure we look after such pensioners.
James Gray (North Wiltshire) (Con)
Will the Secretary of State pay particular attention to that group of public sector workers who transferred into Carillion and are now retired, and who were covered not so much by the PPF, because they were given ex gratia payments rather than pensions, at the time they transferred?
Deidre Brock (Edinburgh North and Leith) (SNP)
Does the Secretary of State agree that the Carillion pension crisis, as well as the many pensions crises over the years, support the Scottish National party calls for the UK Government to urgently set up an independent savings and pension commission to take a robust look at the pensions landscape?
Ms McVey
The regulator is independent, and that is what it does: look at pension schemes. We have, through the White Paper, strengthened the regulator’s powers and now for the first time brought forward criminal sanctions should any director or employer bring into harm wilfully and neglectfully the workers’ pension scheme.
Jack Dromey (Birmingham, Erdington) (Lab)
The catastrophic collapse of Carillion saw thousands of workers pay the price, including with their pensions. It was a monumental failure of governance and by Government, who knew Carillion was sinking into difficulties and went on awarding contracts despite profit warnings. The Secretary of State has said before the Select Committee that the Pensions Regulator knew about the mounting problems in 2014; were the Government alerted and did they choose to ignore those warnings, or did the regulator chose to ignore them and fail to alert the Government?
Ms McVey
The regulator and assessors are now looking into a whole series of issues. Fundamentally, one of them has to be how Carillion’s books went from being a healthy balance-sheet to, a year later, not being a healthy balance-sheet. The auditors and accountants who had signed those books are now being thoroughly examined to establish what happened there before the regulator would have had to look into things, so a lot of investigations are going on.
Richard Graham (Gloucester) (Con)
The Secretary of State for Work and Pensions (Ms Esther McVey)
Universal credit is a modern flexible benefit which provides tailored support to claimants. Three separate research studies show that UC is having a positive impact on employer outcomes. The changes announced in the Budget are giving even more support for claimants.
Richard Graham
Before Christmas, many on the Opposition Benches predicted disaster as more of our constituents claimed their benefits through universal credit. In fact—and I believe the changes made by the DWP have made a significant difference—the early anecdotal evidence in Gloucestershire, from the Jobcentre Plus and Gloucester City Homes, is that things are moving smoothly ahead. Does my right hon. Friend agree that this is broadly the case across the country, and that the introduction of trusted landlords is making a significant improvement to relationships with housing associations, and will she do more to roll that out?
Ms McVey
My hon. Friend is correct. Three independent studies are saying that universal credit is getting people into work quicker, and that they are staying in work longer and also looking for more work. He is exactly right about the trusted partner status. The reason he has started to do extra work with his jobcentre, looking at tenants who might not have a roof over their head, was the false information cited in Prime Minister’s questions by Jeremy Corbyn, who said that one in eight would be evicted. That was not the case, and, as we are seeing, people are now getting into work and their homes are being protected.
Mr Speaker
I say gently to the Secretary of State that one must not refer to other Members by name. The right hon. Member for Islington North is the Leader of the Opposition, but he should not be referred to by name.
Frank Field (Birkenhead) (Lab)
I ask the Secretary of State not to give an immediate reply to this question but to ponder it. The Secretary of State has told me that the 98 members of jobcentre staff on temporary contracts in Birkenhead are going to be laid off because they have come to the end of their contract period. Unlike Gloucester, we are having real problems with the roll-out of universal credit. I had five cases last week, including one involving a woman who had been reduced to living on 7p. Might not some, if not all, of those staff be redeployed to ensure a smooth transition from traditional benefits to the new one?
Ms McVey
I appreciate the right hon. Gentleman saying that I could speak to and work with him to see what is happening in Birkenhead. What I know is that we on this side of the House brought forward up to 100% advances, so that anyone in need of money could have it. We have also stopped the waiting days, and from April we are providing the two-week housing payment. That is what we on this side of the House have done to protect the most vulnerable, but the Opposition voted against it.
Craig Tracey (North Warwickshire) (Con)
Ms McVey
My hon. Friend is correct, and I want to thank him for going to meet people at his Jobcentre Plus and for speaking to the dedicated work coaches who are working tirelessly to help people to get into work. These are the tales that I am hearing. Universal credit is an in-work and out-of-work benefit. We are about getting people into a job and then helping them with progression, so that they can get into a job and have a career and also have job progression. That is why we have over 3 million more people in work.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
Ms McVey
We have had this debate before, and this has been corrected many times. Actually, 50,000 more children are going to have free school meals. These scaremongering stories are not true at all. Let us look at what is happening. We now have 1 million fewer people in absolute poverty—a record low. We now have 300,000 fewer children in absolute poverty—a new record low. There are also 500,000 fewer working-age adults in absolute poverty—a record low. This Government are about helping people to get into work, which is the first step they can take towards taking control of their life. From there, they can have career progression.
Jeremy Quin (Horsham) (Con)
I commend my right hon. Friend for the roll-out of universal credit. How does that compare with the debacle that was the implementation of tax credits under a previous Government?
Mr Speaker
Order. No dilation is required. A pithy encapsulation of what the Secretary of State regards as her personal triumph is one thing, but a lengthy denigration of the policies of the previous Government would be another.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
The Secretary of State for Work and Pensions (Ms Esther McVey)
On average, more than 1,000 people have been employed every day since 2010. There are 816,000 vacancies—a rise of 10,000 since the last quarter and 56,000 since a year ago.
Stephen Metcalfe
I thank my right hon. Friend for her excellent and informative answer. However, to make sure that the vacancies get filled, we need to link up jobseekers with those vacancies. What action is she taking to ensure that people know what opportunities are out there for them?
Ms McVey
My hon. Friend is correct. This Government have brought forward new schemes like work experience, sector-based work academies and support for childcare to enable people who are job-seeking to go for those jobs. Universal credit, which is an in-work and out-of-work benefit, is giving that extra support. Let me just say this: BT Openreach, 3,500 new jobs across the country; UPS, 1,000 jobs in the east midlands; Siemens, 700 skilled jobs in Yorkshire; and Toyota, 3,000 jobs in Derby and Wales. That is what this Government are doing in supporting those people into those jobs.
Ruth George (High Peak) (Lab)
Ministers have repeatedly said this afternoon that the best way out of poverty is through work and education, so why have they introduced the limit on free school meals under universal credit, which is a work disincentive and will prevent more than 1 million children in poverty from receiving free school meals and the educational achievement they deserve to get out of poverty?
Ms McVey
The Opposition have been putting across fake news, or maybe it is clumsy research or just misinformation. Even “Channel 4 News” had to put up a factsheet correcting what the Opposition are saying. Some 50,000 more children will be getting free school meals. We are helping those who need support, with not only childcare but free school meals and progression in work. Please listen and learn.
Paul Blomfield (Sheffield Central) (Lab)
The Secretary of State for Work and Pensions (Ms Esther McVey)
An estimated 50,000 more children will benefit from a taxpayer-funded free school meal by 2022 under universal credit. I will repeat that: 50,000 more children will get a free school meal. We are already ensuring that all existing children receiving free school meals will continue to receive them until roll-out or that phase of education is complete.
Paul Blomfield
There clearly is a serious mismatch between the Secretary of State’s figures and those published by the highly respected Children’s Society, which tells me that 7,000 children will lose out in Sheffield alone. Will she undertake to publish the basis on which she has calculated those figures?
Ms McVey
The Department for Education will be doing that. Sometimes charities are given the wrong information and therefore say the wrong information, having been led astray by Opposition Members. The Opposition voted against those free school meals. They voted against the removal of waiting days. They voted against advances of up to 100%, and they voted against two weeks of housing benefit support for the most vulnerable people in society. Shame on you.
Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)
The Secretary of State for Work and Pensions (Ms Esther McVey)
We are pleased with the progress we have made on the roll-out of universal credit, which is now live in 250 jobcentres. Universal credit is a modern, flexible benefit that helps people move into work and, importantly, progress in work through tailored support from dedicated work coaches.
Mrs Hodgson
The Department is always quick to act in cases of overpayment and sanction claimants for any breach of rules, yet an investigation by the National Audit Office revealed that the Department has underpaid an estimated 70,000 people over the last seven years. What will the Department do to ensure that those who have been left out of pocket are repaid the money they are entitled to as soon as possible?
Scott Mann (North Cornwall) (Con)
Margaret Greenwood (Wirral West) (Lab)
Had the Secretary of State read the full article that she refers to on Channel 4’s FactCheck, she would have seen that it said that our numbers were in fact correct.
Margaret Greenwood
Well, it did. I recommend that the Secretary of State rereads it.
In less than two weeks’ time, support for mortgage interest will change from a benefit to a loan. Government figures released on Friday show that, even at this late stage, the DWP has still not managed to contact 40% of claimants by phone to explain the change, and 30% of all claimants have already declined a loan. A large proportion of claimants are pensioners, and Age UK is warning that many may instead try to manage by cutting back on essentials such as heating. Why have the Government failed to give claimants adequate notice, and will they call a halt to this policy, which risks inflicting hardship on thousands?
Mr Gavin Shuker (Luton South) (Lab/Co-op)
Ms McVey
You can’t have it that we are not helping enough people and then, on the other hand, that we are. What we have said is that this has always been for people who were not in work or those on low incomes. What we have done is slightly raise the threshold, and now more children who need free school meals are getting them. That is something that this Conservative Government are doing. I would also like to welcome the rise in employment in the last quarter in the south-west area and the hon. Gentleman’s seat by another 48,000 people. That is more people in work who can help their children.
Ms McVey
In Scotland we have seen a rise of 207,000 people in employment. This is what universal credit is doing too: making sure people are in work, and making sure they are in work quickly. We are sorting them, and work coaches are supporting them. We have given Scotland the flexibility to do additional work on the ground.
James Cartlidge (South Suffolk) (Con)
Auto-enrolment has been a great success, but does my hon. Friend agree that we need to do more to encourage the self-employed into it? What steps is he considering in that regard?
Maggie Throup (Erewash) (Con)
On Saturday, I was delighted to launch a new bus route from Ilkeston to East Midlands airport, through Long Eaton and Sandiacre, which will undoubtedly open up more opportunities in terms of the many vacancies in the logistics hubs at the airport. Does my right hon. Friend agree that transport providers and employers working together will really make sure that my constituents have every job opportunity?
Ms McVey
It has always been about everybody working together. This Government, and this Department in particular, want to make sure that we step outside the silos and work across Departments and that work coaches stand outside what they need to do to make sure that they are reaching into people’s lives to help them progress.
Helen Goodman (Bishop Auckland) (Lab)
What is the Minister going to do about employers such as the one in my constituency who sacked a lot of young people without paying them the wages they were owed, with the result that one of them—a pregnant woman—ate nothing but Smash for three weeks?
Philip Davies (Shipley) (Con)
We often hear from Opposition Members that all the new jobs created are zero-hours contract jobs. Given their track record on accurate information, will the Secretary of State set out what proportion of workers are on zero-hours contracts and how many new jobs are actually full-time jobs?
Kate Green (Stretford and Urmston) (Lab)
A number of childminders in my constituency are reporting problems with late payment from their customers who are in receipt of universal credit, partly because of the waiting time for the first payment and partly because of bureaucratic requirements. Will the Secretary of State or one of her colleagues meet me to discuss this pressure on childminders?
Ms McVey
We would be happy to meet the hon. Lady, who does so much in this area. What I will say, however, is that I do not understand why Opposition Members voted against advance payments up to 100%, why they voted against the two-week home payment and why they voted against the extra support we are giving.
Tom Pursglove (Corby) (Con)
On Friday, I met a number of Corby employers who were all raving about the apprenticeship route. What steps is the Department taking to promote apprenticeships to jobseekers?
Access To Work Scheme
Esther McVey Excerpts(6 years, 9 months ago)
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The Secretary of State for Work and Pensions (Ms Esther McVey)
In March 2015, as part of a package of improvements to access to work, the former Minster for Disabled People, Health and Work, my right hon. Friend the Member for Forest of Dean (Mr Mark Harper), announced the introduction of an annual limit on the amount of an access to work grant of 1.5 times average salaries in order to encourage better use of public funds and to enable Access to Work to support more people—particularly traditionally under-represented groups. The cap has been in place since October 2015, but a period of transitional protection was granted to enable those who were spending above the level of the cap on introduction time to adjust to the new limits.
During this transitional period for people to adjust to the need to source their support within a limit, we have seen considerable progress. The average spend among the remaining transitionally protected customers has fallen from around £57,000 each to around £45,000 each. This suggests that it is achieving the intended incentive effects on individuals and employers to make best use of funding as well as freeing over £2 million per year, to support growing numbers of people benefiting from the scheme, alongside the extra resources provided in the spending review. I am therefore persuaded that the principle of the cap is sound, balancing the need to provide support to the largest number of people, and at a significant level for some, with the need to make the best use of public funds.
At the same time, the Government have always said that we would also use this time to monitor the impact of the cap on individuals and work with customers and other stakeholders to see if any further practical mitigations could be applied to those whose needs still remain above the cap. This includes emphasising the duties that employers have to play their part and make reasonable adjustments under the Equality Act 2010. At the same time it was agreed that we would lead a review of communication support for deaf people, which we published last year.
I am therefore pleased to announce that as a result of this engagement—particularly with the UK Council on Deafness (because the majority of capped customers are deaf), but also with others groups and individuals that as of April 2018, the cap will not rise to £43,100 in line with 1.5 times average earnings. Instead it will rise to £57,200, double average earnings, and will be up-rated annually on that basis. This means that considerably fewer British sign language users now remain affected by the cap. I believe it is important to retain this link to average earnings so that high-value awards, which are overwhelmingly used to purchase human support, retain their purchasing power over time.
Alongside this change, existing capped customers will, where applicable, have their needs considered against this new limit when their awards are due for their annual review.
As we continually seek to improve Access to Work, which last year approved provision for 8% more people than in 2015/16—including 13% more people who were deaf or had hearing loss—we will introduce the following measures:
extra support to customers with high-value awards via automatic workplace assessments promoting available technology and reasonable adjustments and voluntary cost-share from employers as well as signposting to advice and guidance provided by third parties;
working with stakeholders to co-produce guidance and share best practice as well as continued monitoring of the impacts on the cap;
discretion in exceptional cases of multiple disability, to consider award limits averaged over a longer period—for example where a customer’s on-going need for a support worker may be below the cap but when coupled with a periodic need for, say, a wheelchair, would exceed the cap in that year;
introduction of managed personal budgets to enable greater choice and control for customers in the way grants are spent;
taking applications 12 weeks ahead of a job start date rather than the current six weeks to allow more time for support to be agreed and put in place;
continuing to invest in our digital improvements such as developing the facility to submit invoices online;
allowing more flexibility in how people can use Access to Work to support short periods of work experience where there is a likelihood of a paid job in the near future; and
encouraging uptake of technological solutions that can both reduce costs and promote independence, we will allow risk free trials of technological solutions so that customers can revert to their old award if they wish, and also introduce a “Tech Fund” that will mean the mandatory cost-sharing contributions from employers for such items are waived where their use will save the taxpayer money.
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Private Pensions
Esther McVey Excerpts(6 years, 9 months ago)
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The Secretary of State for Work and Pensions (Ms Esther McVey)
Today the Government are publishing a White Paper “Protecting Defined Benefit Pension Schemes” which sets out our proposals to improve confidence in defined benefit pensions. It builds on last year’s Green Paper, “Security and Sustainability in Defined Benefit Pension Schemes”.
As we said when we published the Green Paper, defined benefit schemes are an important pillar of the UK economy. Around £1.5 trillion is invested by about 5,500 schemes. More importantly, these pensions are a key part of many people’s retirement income. There are 10.5 million members in the UK with a defined benefit pension: it is crucially important that the system delivers the retirement income they have saved for over many years of hard work.
We know that the vast majority of employers with these schemes want to do the right thing by their employees. Our 2017 Green Paper examined the evidence around defined benefit scheme affordability, and concluded that the majority of employers can and do fund their schemes appropriately. The responses to the Green Paper supported this. However, to help trustees and employers work even more effectively towards a long-term goal, we are introducing changes to scheme funding. Where employers want the best for their employees, we want to ensure that the system supports this.
However, it is clear that not all employers want to act fairly. At the heart of the White Paper is a strong message for employers tempted to act in a way that is detrimental to their pension scheme. We will not tolerate such behaviour, and will come down heavily on attempts by employers to avoid their responsibilities. We are supporting the Pensions Regulator to be a clearer, quicker and tougher organisation by giving it new and improved powers to gather information and require employer co-operation. Where there is evidence of unscrupulous behaviour, we are introducing measures including a punitive fines regime and, in the most serious cases, a new criminal offence for those who deliberately and recklessly put their pension scheme at risk.
Finally, we are consulting on the legislative framework and accreditation regime for consolidation, providing industry with the opportunity to innovate while ensuring there are robust safeguards in place to protect members’ benefits. This will be the first step in enabling schemes greater opportunities to realise the benefits of scale achieved through consolidation, and will benefit both members and employers.
The White Paper relates only to private sector defined benefit schemes and is not concerned with other types of pension provision, such as public service pension schemes or defined contribution schemes. A response to our consultation on the future of the British Steel Pension Scheme (BSPS) is included in chapter four of the White Paper.
Defined benefit pensions are a subject of great importance to many people, representing their hopes for the future. We are determined to ensure that these hopes are protected. This White Paper is a key step towards a more secure future for members of these schemes.
[HCWS557]