Disability Action Plan
Jo Churchill Excerpts(9 months, 3 weeks ago)
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Mims Davies
Not so much, she says, so there we go. I reiterate that the disability action plan is not just another consultation, but real, tangible action to change people’s daily lives, with 13 practical actions across 14 different areas. It is about building a society that works for everyone.
The hon. Member for Lewisham, Deptford (Vicky Foxcroft) is right to point out that day-to-day life is too difficult for disabled people and their families; I agree with her. That is why we have taken the opportunities we can take in this round, alongside the wider national disabilities strategy. I would love to boil the ocean and to have fixed everything in the month or so I have been in the role, but I assure hon. Members that irrespective of the perceived level of the role, I have the convening power and support across Government. I am delighted that the hon. Lady keeps pushing for my elevation, but under the previous Labour Administration the Minister for Disabled People was an Under-Secretary of State. I am extremely proud to be an Under-Secretary of State—
Mims Davies
Thank you, I will take that. Under our Government, the role has been mixed, which does not mean that we do not take it seriously. I take it extremely seriously.
I have come to the role with my own personal experience of living with my father, who became disabled and lived under the Court of Protection. When I was growing up, my mum worked with disabled adults, getting them into work. She was an early part of the Riding for the Disabled Association and the Special Olympics movement. No matter what rank I have in the Government, I bring that experience and interest to the role. I say to people watching that the pay cheque or the rank simply do not matter—I am in this for them.
The Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Derby North (Amanda Solloway), and I have met to discuss the point made by the hon. Member for Lewisham, Deptford about the cost of energy. My hon. Friend is a disability champion across Government, as am I, so we will continue to engage. I reiterate that the cost of living payments will start again tomorrow. Some 6.4 million people across the UK have been able to claim an extra £150 in addition to their disability benefits, as the hon. Lady mentioned.
It is, of course, a challenging time for everybody. We put in place the furlough scheme and the other support for businesses and communities across the country to try to keep people on their feet. Between 2022 and 2025, we provided £104 billion to help people with the cost of living. To anybody who has a disability, a health condition or any other need, I say: please look at the benefits calculator on gov.uk. They should look at the household support fund, which runs for a full year—a whole six months longer than the previous one. There is a huge amount of interest in it, so I urge people to contact their local authority about it. I am delighted that many people with caring responsibilities and those looking after disabled people have been helped in this way.
Finally, the help-to-claim service is there as well, provided by the DWP working with Citizens Advice, to make sure that those in need do not have to worry, because the Government, both locally and nationally, are there for them.
Oral Answers to Questions
Jo Churchill Excerpts(9 months, 3 weeks ago)
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Deidre Brock (Edinburgh North and Leith) (SNP)
The Minister for Employment (Jo Churchill)
In the latest statistics, there were 400,000 fewer children in absolute poverty after housing costs than there were in 2009-10. In this financial year, we will spend about £124 billion on welfare supporting working-age families. We are also providing £104 billion between 2022 and 2025 to help families with cost of living pressures. However, the Government’s focus is firmly on reducing the risk of child poverty by supporting parents into work in every way we can.
Yasmin Qureshi
The Joseph Rowntree Foundation recently found that 42% of children in Bolton live below the poverty line. After 14 years of Tory cuts and general incompetence, Britain now has the worst rise in child poverty among the major countries. What would the Minister say to a young family in Bolton who told me, “One day we eat and one day we don’t”?
Jo Churchill
Nobody on either side of the House wants to see families struggling. However, I repeat that children living in workless households are about five times more likely to be in absolute poverty after housing costs than those in households where all adults work. The Government are supporting the whole family through our childcare support, which we have increased by almost 50% to £951 a month for one child or £1,630 for two; the increase in the national living wage to £11.44 from April; our cost of living offers; and so on.
Deidre Brock
The recent Joseph Rowntree Foundation report highlighted Scotland’s much lower child poverty rate compared with England and Wales, and said that that was partly due to the Scottish Government’s child payment. Further progress is constrained by the UK’s inadequate social security system. The Trussell Trust’s “guarantee our essentials” campaign shows that 90% of low-income households on universal credit in the UK cannot afford everyday essentials. Does the Minister accept that raising the universal credit basic rate is critical to tackling child poverty?
Jo Churchill
The welfare system is there to be a strong safety net. It is not about a singular issue, because no households are the same. It is about wraparound care and dealing with people on an individual basis. It is about making sure that where children need support—for example, with free school meals—we provide it.
Alison McGovern (Wirral South) (Lab)
Further to the Minister’s response, the Prime Minister has been asked similar questions about child poverty in recent Prime Minister’s questions. He usually responds that since 2010, the Conservatives have lifted 1.7 million people out of absolute poverty, which, as you know Mr Speaker, tracks living standards from a fixed point in time. Can the Minister tell me how many more people, on average, Labour lifted out of absolute poverty annually, compared with the 1.7 million since 2010 that the Prime Minister regularly claims?
Jo Churchill
Rather than trade numbers, I would say that this is about giving people the dignity of a job. Since 2009-10, 1.7 million fewer people are in absolute poverty after housing costs, including 400,000 fewer children and 1 million fewer working-age adults. I know the hon. Lady said that work was not the Labour party’s priority, but it is very much our priority.
Alison McGovern
If the Minister can point to an occasion when I have said that work was not the Labour party’s priority, she ought to say when that was, or she should withdraw that remark.
The answer to my question is that, on average, more than 350,000 more people left poverty in each year of the Labour Government. The Prime Minister’s claim is pathetic. Which of the following does the Minister think had the biggest impact on those poverty numbers? Was it when the Conservatives repealed the Child Poverty Act 2010, was it when they shut down the child poverty unit, was it the collapse in the value of child benefit, or was it the financial chaos caused by a Conservative Prime Minister in September 2022, which put all families’ finances at risk?
Jo Churchill
No, it is the fact that over 1 million more people are in work and youth employment is up by around 40%. Ensuring that people have the dignity of work and that, when they are not in work, there is a strong welfare system around them, is what this country needs.
Helen Hayes (Dulwich and West Norwood) (Lab)
Rachel Hopkins (Luton South) (Lab)
The Minister for Employment (Jo Churchill)
The Government take food security very seriously and are committed to understanding and addressing food poverty. The reasons that people use food banks are complex and varied. Food banks are independent charitable organisations and the Government have no role in their operation. As such, data on trends are not currently available.
Helen Hayes
The staff and volunteers at the Norwood and Brixton food bank in my constituency work tirelessly all year round to support local people who simply cannot make ends meet. They are responding to the highest level of need they have ever seen. Why does the Minister think that, despite this being one of the richest countries in the world, food bank reliance is continuing to rise so much on this Government’s watch? Can she tell the House what the Government are doing to end the need for food banks in the UK?
Jo Churchill
As I said, the reasons that people use food banks are complex and varied, as all the research indicates. We offer support through cost of living payments and the household support fund, running to hundreds of millions of pounds. The rise in the national living wage, the reduction in national insurance and the local housing allowance further help 1.6 million low-income households. We have a whole of suite of ways to help the very poorest in our society.
Rachel Hopkins
Food banks such as the excellent Luton Foodbank have been pushed to breaking point this winter, as more and more people need emergency food due to the Conservatives’ cost of living crisis. It is shameful that we now have more food banks than police stations. What conversations has the Minister had with colleagues in the Treasury about introducing measures in next month’s Budget to support low-income working people facing hardship and to reduce the dependence on food banks?
Jo Churchill
I point the hon. Lady to the further cost of living payments that will be going out this week to eligible households. We do not comment on future fiscal announcements.
Sir Mark Hendrick (Preston) (Lab/Co-op)
Peter Gibson (Darlington) (Con)
The Minister for Employment (Jo Churchill)
Across the country our fantastic work coaches are supporting people to secure and progress in work. In Kendal, Cheadle and Darlington, jobcentres are working with local and national employers to match jobseekers with vacancies through job fairs, sector-based work academy programmes and apprenticeships. As it is National Apprenticeship Week, this is a great time for employers to promote the opportunities available, and I urge all colleagues who have not yet done so to visit their jobcentre if it has an apprenticeship fair on. The hon. Gentleman’s was last week, wasn’t it?
Tim Farron
I do indeed celebrate the work of the Kendal jobcentre. It does a fantastic job but one problem is that it has too small a workforce. This week we mourn the loss of yet another Lake District business, this time a bistro in Coniston, due in part to the loss of affordable homes and to restrictive visa rules, both of which are shrinking our local workforce. Will the Minister meet me and local Cumbrian business leaders to develop a plan to tackle Cumbria’s workforce crisis?
Jo Churchill
I am happy to meet the hon. Gentleman, but I also gently say that this is about other Government Departments as well. I will certainly work with him as far as employers go, under my remit.
Mary Robinson
Speaking to Stockport jobcentre last week, I heard about the success of the movement to work scheme, which places young people with employers, including in the civil service. However, the lengthy civil service application process is delaying placements. Will my hon. Friend look into how the process could be streamlined and accelerated, and join me on a visit to Stockport jobcentre?
Jo Churchill
I know that senior civil servants are engaged in piloting an initiative that will help to speed this up, because we need to place those candidates more quickly and ensure that we get them into work swiftly. I would love to visit Stockport and add its jobcentre to the growing list that I have visited.
Peter Gibson
I put on record my thanks to my hon. Friend the Member for Hexham (Guy Opperman) for his work to establish the Jobcentre Plus Facebook pages, of which Darlington’s was the first. Will my hon. Friend the Minister outline how successful that page has been and what further plans she has to develop accessible social media job advertising?
Jo Churchill
We know that social media helps, and that 40 to 50-year-olds in particular enjoy engaging with a digital platform when they are looking for work. We have had instances in the past of people thanking us when they have been given interviews online. It is important that posts are accessible and we are working to ensure that this is the case. I would point customers of any age to the JobHelp website, which has a host of useful information. I am keen to see if we can roll out such progress further.
Mr Speaker
I do find that a strange grouping, but not to worry, Minister. Well dealt with! How you got from Cumbria across the country like that is amazing.
Jonathan Gullis (Stoke-on-Trent North) (Con)
The Minister for Employment (Jo Churchill)
The Department has not made a specific assessment for the Stoke-on-Trent North constituency, but I refer my hon. Friend to the evidence I presented to the Work and Pensions Committee last week. I look forward to meeting him this week to discuss this in more detail.
Jonathan Gullis
I am grateful to my hon. Friend for her answer. I am proud to have joined a campaign, together with my right hon. Friend the Member for Witham (Priti Patel) and the hon. Member for Glasgow East (David Linden), to reform statutory sick pay. That campaign, led by the Centre for Progressive Change, was referenced in today’s Times Health Commission report. Ahead of the spring Budget, will the Department join us in lobbying the Treasury to make these important changes, so that we have a healthier workforce that contributes more to our economy and, more importantly, so that we make sure that work pays fairly?
Jo Churchill
I refer my hon. Friend to the answers I gave to the Work and Pensions Committee. Statutory sick pay is considerably more complex than he makes out, but it is nice to see all this cross-party collaboration.
Helen Hayes (Dulwich and West Norwood) (Lab)
Peter Aldous (Waveney) (Con)
The Minister for Employment (Jo Churchill)
Like my hon. Friend, I am excited about the jobs and opportunities at Sizewell. Local jobcentres have been engaged with Sizewell C, and I understand that a local partnership manager will be designated to promote opportunities, and to find people for 1,500 apprenticeships and thousands of jobs. We will invest in local skills through sector-based work programmes and the like.
Jessica Morden (Newport East) (Lab)
Jo Churchill
The way that universal credit works means that work coaches can use their flexibility, but if a payment is short one month, the appropriate thing to do is to sort it the next.
Wendy Chamberlain (North East Fife) (LD)
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
When will the Minister wake up to the fact that working as an apprentice in engineering is a fabulous career choice, and well paid? Will she come up to Huddersfield to look at Cummins, whose apprentice system is first rate?
Jo Churchill
I would be delighted to do so on my tour of England. I could not agree more with the hon. Gentleman. My father is an engineer. It is a fantastic profession, and the more we can encourage apprenticeships right across the board, the better. Nearly 6 million people have now taken them up. I would be delighted to come.
Pensions (Special Rules for End of Life) Bill
Jo Churchill ExcerptsFriday 2nd February 2024
(9 months, 3 weeks ago)
Commons ChamberRead Full debate Pensions (Special Rules for End of Life) Bill 2023-24 View all Pensions (Special Rules for End of Life) Bill 2023-24 Debates Read Hansard Text Watch Debate Read Debate Ministerial Extracts
The Minister for Employment (Jo Churchill)
It gives me great pleasure to confirm that the Government give their full support to this private Member’s Bill. I thank my hon. Friend the Member for Tewkesbury (Mr Robertson) for bringing forward what he said was a small and limited piece of legislation, but we have heard over the past hour and a bit how important these small changes will be to those affected. I thank my hon. Friend the Member for North East Bedfordshire (Richard Fuller), my right hon. Friends the Members for East Yorkshire (Sir Greg Knight) and for Ludlow (Philip Dunne), and my hon. Friends the Members for Stoke-on-Trent Central (Jo Gideon), for Shipley (Philip Davies) and for Aylesbury (Rob Butler) for their contributions.
My hon. Friend the Member for Shipley explained why the alignment is ultimately a good idea. As we have heard, a life-limiting illness can cause unimaginable suffering for the patient and their loved ones—and that is just at diagnosis, yet alone across the trajectory of the disease. Many people have said that they feel as though they have been hit by an emotional tsunami, and we should do anything we can to help and support those nearing the end of life. My hon. Friend the Member for Stoke-on-Trent Central poignantly outlined some of the challenges that people can face at this stage in their life.
Many charities have been mentioned, but I pay particular tribute to Marie Curie, which often provides nurses who sit with people as they near the end of life. It is an incredible service for our constituents, and ensures that people do not die alone. Its work is incredibly important—its motor neurone disease campaign has been mentioned—but we must also thank people in the hospice sector and more broadly across the NHS, particularly those who work in end-of-life and palliative care.
We have heard much about the Social Security (Special Rules for End of Life) Act 2022, which changed the special rules process to allow simple and fast access to financial support through the benefit system. The changes made in the Act covered the disability living allowance, the personal independence payment and the attendance allowance, and ensured that people at this most difficult of times could receive their support more quickly and easily. The special rules were then extended to universal credit and employment and support allowance through secondary legislation that came into force on 4 April 2022. Under those rules, claims are fast-tracked and a medical assessment is not required. No waiting period is applied, and in the majority of cases the highest level of benefit is awarded. Since 1990, eligibility under the special rules had been limited to those who had been diagnosed with a condition that meant that they were unlikely to live for more than six months. The changes that the Government made in 2022 meant that people receiving certain social security benefits who were thought to be in the final year of their life were shown additional compassion and were able to receive that vital support six months earlier.
When the 2022 regulations came into force, they were welcomed by key end-of-life charities such as the Motor Neurone Disease Association, whose chief executive said at the time:
“I welcome the announcement that changes to the Special Rules will come into force next month. This change will enable more people living with complex and unpredictable terminal illness like motor neurone disease to access the support they need swiftly and sensitively. This is an important first step and we hope that this positive change can be enacted for other applicable benefits as soon as possible.”
Marie Curie also welcomed the changes, saying that they would
“make it easier for terminally ill people to access support quickly”,
and that
“the scrapping of the six-month rule for fast track access to benefits is a significant step forward.”
Macmillan Cancer Support said:
“Patients deserve better co-ordination of care into the last year(s) of life and this change gives us a brilliant opportunity to help them benefit from end of life financial support while having treatment, so they can make the most of the last year(s) of life.”
This Bill takes a further step in supporting those with a terminal illness by extending similar support through compensation payments made by the Pension Protection Fund and payments under the financial assistance scheme. As my hon. Friend the Member for Tewkesbury explained, the Pension Protection Fund pays compensation to members of eligible defined benefit pension schemes if the sponsoring employer became insolvent on or after 6 April 2005 and the scheme has insufficient assets to meet its pension liabilities. Members can claim their compensation payments before their scheme’s normal pension age, generally from the age of 55. The financial assistance scheme makes payments to members of qualifying schemes that are unable to meet their pension liabilities in full.
Currently, members of the PPF who are not yet entitled to receive compensation may make an application to their scheme for a terminal illness payment if they are expected to live for six months or less. Terminal illness is currently defined in legislation as
“if... the person’s death in consequence of that disease can reasonably be expected within 6 months.”
The Bill amends that definition to ensure that members with a life expectancy of up to 12 months can now receive the payments. It will restore the original policy intention of alignment between the social security special rules and the Pension Protection Fund. The same definition applies to the financial assistance scheme, and the Bill therefore amends that definition as well. The financial assistance scheme differs from the PPF in that a terminal illness diagnosis allows payments from the financial assistance scheme to be put in place immediately, rather than a specific lump sum being provided.
My right hon. Friend the Member for East Yorkshire and my hon. Friend the Member for North East Bedfordshire asked what consultation we had carried out. As I think my hon. Friend the Member for Shipley mentioned, we have consulted general practitioners, consultants, specialist nurses and other medical professionals.
Some may argue that the Government should take a more open-ended approach and not put any time limit on the payments. That argument, as we have heard, may be particularly pertinent for those who have conditions such as motor neurone disease, chronic obstructive pulmonary disease, Parkinson’s disease and a plethora of other conditions that can make it exceedingly difficult for clinicians and doctors to accurately predict how much time a patient has until the end of their life.
Unfortunately, there is not a clearcut, correct answer on how terminal illnesses should be defined, so as my hon. Friend the Member for Tewkesbury said, that should be left to the professionals. In recognition of that, the 2022 Act was preceded by an evaluation in which the majority of clinicians who responded said that a 12-month definition was preferable, as it would bring the special rules for benefits into line with NHS practice and NHS initiatives, such as the gold standards framework. The Department agreed, and the 2022 legislation aligned the definition of terminal illness with that used in the NHS, providing consistency for clinicians and tying the special rules into the NHS long-term plan to provide proactive, personalised and well co-ordinated care for all those in their final year of life.
This Bill builds on the previous legislation by aligning the definition used for the Pension Protection Fund and financial assistance scheme payments with that used more widely in the Department for Work and Pensions and the NHS. The Government believe that the 12-month timeframe is appropriate for defining the period for serious ill health payments in tax law. For an individual to meet the definition of a person in serious ill health, evidence is required from a registered medical practitioner that the individual is expected to live for less than one year.
The Pension Protection Fund may be a compensation scheme, rather than a pension scheme, but in many ways it is treated as a pension scheme for taxation purposes. That means that the Pension Protection Fund terminal illness payment falls under the category of a serious ill health lump sum. That allows it to be paid without triggering unauthorised payment tax charges on either the individual or the Pension Protection Fund. Extending the definition of terminal illness to longer than a year would open up members to significant tax charges on their terminal illness payments, which is not what the Government want at all.
My hon. Friend the Member for North East Bedfordshire asked about the impact on the levy. We believe that the cost to the Pension Protection Fund will be marginal. Most members will simply get their payments earlier. He also asked about pension funds having a 12-month provision. The benefits provided will depend on scheme rules. We do not know how many schemes have such a provision, but we believe that many schemes already provide early access to lump sums for terminally ill members, or those with a life expectancy of 12 months or less, because that is allowed under tax law.
My hon. Friend the Member for Shipley and my right hon. Friend the Member for East Yorkshire asked about commencement. As with any Bill that passes through both Houses, it will come into force on a day appointed by the Secretary of State. It is the intention for that to be as soon as practicable after Royal Assent, to ensure that all measures relating to the Pension Protection Fund and financial assistance scheme come in at the same time.
I heard that my right hon. Friend the Member for Ludlow had written to the Secretary of State, and I will make sure that an answer comes to him in a timely way. He asked who makes the decisions; the answer is clinicians, medical assessors and specialist nurses. In response to my right hon. Friend the Member for East Yorkshire, let me say that one can obtain a second opinion, and that goes for all the illnesses that I mentioned.
I thank all hon. and right hon. Members for their contributions, and for the sensitive way in which they have approached this matter. I appreciate the “time-bound” argument that my hon. Friend the Member for Shipley put forward, but these matters are always a challenge for clinicians. I agree with him and my hon. Friend the Member for Stoke-on-Trent Central that a better conversation about end of life, and how we treat issues as we move forward into that stage of our life, would be a very good thing for us all. We should be a lot more discussive about it.
I thank my hon. Friend the Member for Tewkesbury for bringing forward the Bill and all right hon. and hon. Members for their contributions. These changes will make a significant, positive impact for people nearing the end of their lives by ensuring that most pension fund members will be able to receive a payment at an earlier stage. That will give them the financial support they need at a most difficult time for them and their families, as well as help them plan more effectively to get the most out of the finances they are due. These changes send a message about end of life: that the conversation must be alive and vibrant for us all, so that we do the best we can. I am pleased to support the Bill and wish it a speedy passage through both Houses.
Madam Deputy Speaker (Dame Rosie Winterton)
I call Mr Laurence Robertson to wind up, with the leave of the House.
Household Support Fund
Jo Churchill Excerpts(9 months, 3 weeks ago)
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The Minister for Employment (Jo Churchill)
It is a pleasure to serve under your chairmanship, Mr Hosie. First, I would like to add my voice to those of others in thanking the right hon. Member for East Ham (Sir Stephen Timms) for securing this debate. As Chair of the Work and Pensions Committee, I know he is not only passionate about supporting those in need, but very thoughtful in the suggestions and the comments that he makes. I think we both recognise—indeed we have heard it from virtually every Member—the significant help that the household support fund has provided to people across England and, via Barnett consequentials, more broadly across the nation since its inception and during these challenging times. At this point, I feel it is only right for me to thank my right hon. Friend the Member for Suffolk Coastal (Dr Coffey) and my hon. Friend the Member for Colchester (Will Quince) for their diligence and grit in ensuring that this reached those people who need help the most, as we have heard from every constituency. The attenuation of this scheme, and the fact that it is directed at those who need help the most, is a mark of its true success.
The right hon. Member for East Ham showed how beneficial the household support fund was, and how its local nature and adaptability was part of its success. Since its launch in 2021, the Government have provided more than £2.5 billion, including Barnett consequentials, to support those most in need. This includes last year’s provision of some £842 million for England plus Barnett consequentials, bringing it to £1 billion in this year. The additional funding has enabled the latest and longest extension from April 2023, with those funds currently being delivered incredibly effectively by local councils. Across England, 153 local authorities have used this funding to provide—[Interruption.]
Stewart Hosie (in the Chair)
Order. Unfortunately, there is a Division. I will have to suspend this sitting for 15 minutes for the first vote, and then for 10 minutes for any subsequent vote. Let’s hope we can be back here at 5.51 pm.
Jo Churchill
I hope I am picking up where I left off.
Across England, 153 local authorities have used this funding to provide a variety of support to help households with their essential costs. As we have heard from across the Chamber, that support has included—not exhaustively —vouchers for food and energy costs, warm clothing, and enacting simple energy-saving measures. Since April 2023, councils have also been able to fund advice and guidance services as part of their offer, helping to direct individuals towards longer-term help and support.
Since its inception, the household support fund has provided help to millions of people in a wide variety of circumstances. There were more than 26 million individual awards of support across the first three schemes, which ran from October 2021 to March 2023; indeed, totting it up roughly, over £100 million of support was given to councils in the constituencies of Members sitting here. We know that around two thirds of the funding from these schemes was used to support families with children—that was heard very clearly—and that was in addition to other support that we have made available, including the £200 million per annum holiday activities and food programme, which will carry through into 2024-25. We have also extended free school meals to more groups of children than any other Government in the past half century.
Many Members have raised concerns about the end of the current household support fund on 31 March. Some have even suggested that the Government have cut the fund. I re-emphasise the remarks I made in a debate in this place two weeks ago. To be clear: the Government continue to keep these matters under review. No decision on the future of the scheme has been taken, and the current scheme runs until the end of March.
Although the household support fund does important work, and we have heard about much of it, it is only a part of what we are doing. As I am sure the right hon. Member for East Ham will agree, over the past two years in particular, in the light of the pandemic and Putin’s illegal war in Ukraine, we have provided one of the largest cost of living support packages in Europe, and further support is still to be delivered in 2024-25. For example, over 8 million households across the UK on eligible benefits have received two of the three cost of living payments, which will be worth £900 in total this financial year, and the third cost of living payment—a further £299—will be made to most eligible households next month.
To put things into context, the annual welfare spend in Great Britain will be £276 billion this year. Having uprated benefits in line with inflation for 2023-24, we have announced a further increase of 6.7% in working-age benefits for 2024-25, subject to parliamentary approval—as we know, that order began its journey through the Commons today. On top of that, we are increasing local housing allowance from April, which will benefit a further 1.6 million low-income households by, on average, around £800, and we are increasing the national living wage for people aged 21 and above by over 9.8% from April. That means there will be an annual increase in gross earnings of more than £1,800 for someone working full time on that wage. Those workers who are at the younger end—at 21 or 22 years old—will see an increase of some 12.4% on average, as we extend the national living wage to them.
Additionally, we have reduced the main rate of class 1 national insurance contributions to 10% from this month, providing a tax cut for a further 27 million working people. Nevertheless, we rightly remain committed to that strong safety net for those who need it, particularly during challenging economic times and when lives get a bit turbulent. We have always believed that the best way to help people improve their financial circumstances is through work and support, and that approach is based on the clear evidence around the beneficial role of work, and especially full-time work, including the part that it can play in lifting people out of poverty.
Data from 2021-22 shows that there were 1.7 million fewer people in absolute poverty after housing costs compared with 2009-10, including 400,000 fewer children. With more than 900,000 vacancies across the UK, our focus is firmly on helping people take their first steps into work and progress towards financial independence. We know that for many, many people, that can be a challenge in itself. We therefore need to make sure that there is the right support to help people on that journey, which is why we have introduced WorkWell, the back to work plan, Access to Work and many other schemes. We have heard today that the fund is ringfenced, goes to upper-tier authorities, looks towards local attenuation and looks to make the best of all those charities that do so much for our communities. I thank hon. Members for those positive words.
In summary, the household support fund has done much to help those in need, providing billions of pounds through millions of individual awards. Local authorities have used the funding to help those most in need. As I have said, the current round will end on 31 March, as planned. However, we remain committed to a sustainable long-term approach to supporting vulnerable individuals and tackling poverty, alongside inflation-matching increases to benefits and the state pension, increasing the national living wage and reducing national insurance, as the Government continue to empower people to move into work and have control over their own lives.
I have heard everyone’s comments, both on the success of the scheme and the local focus. Hon. Members will be aware that there is a fiscal event on 6 March. It is not for me to pre-empt what may be included. However, I will ensure that the comments from today’s debate are passed to No. 11. On that note, I look forward to working with colleagues from across the House to continue to support those most in need, and I again thank the right hon. Member for East Ham for calling this very important debate.
Universal Credit: Managed Migration from April 2024
Jo Churchill Excerpts(10 months ago)
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The Minister for Employment (Jo Churchill)
The Government are working to deliver a brighter future for Britain, with long-term economic security and opportunity, where hard work is always rewarded; where ambition and aspiration are celebrated; where people get the skills they need to succeed in life; where families are supported; where those who have worked hard all their lives have the retirement they deserve.
Universal credit plays a vital role in providing financial support to households. For more than 10 years, universal credit has successfully delivered a tailored service to millions of people, adjusting each month to an individuals’ needs and helping people progress in work.
The “move to universal credit” activity will bring those who remain on the older, legacy benefits on to universal credit, completing the implementation of this major welfare reform.
Throughout 2023-24 our activity has focused on notifying households that receive tax credits only. This activity is progressing well, and we remain on track to notify over 500,000 tax credit-only households of the need to claim universal credit by the end of March 2024. Furthermore, by February 2024, a month earlier than originally anticipated, “move to universal credit” will be under way across all jobcentre districts within Great Britain. The Department continues to listen to all feedback to continuously improve the service, but to date there have been very few complaints, and any issues have been swiftly resolved.
Looking ahead to 2024-25, we will be migrating the remaining groups of households receiving legacy benefits to universal credit, excluding employment and support allowance only and employment and support allowance with housing benefit.
Our plans for 2024-25 are to undertake the issuing of migration notices to in-scope working age benefit households sequentially, starting with income support claimants and those claiming tax credits with housing benefit from April, housing benefit-only claimants from June, claimants of employment and support allowance with child tax credits from July, and jobseekers allowance claimants in September. Households may be in receipt of a combination of benefits, for example an income support recipient could also be claiming housing benefit and/or child tax credits.
From August, we will contact those claiming tax credits who are over state pension age, with households being asked to apply for either universal credit or pension credit, depending on their circumstances.
The Government recognise that some individuals may need additional support to move to universal credit. The Department is committed to providing such support through a range of channels for anyone who needs it. We will continue to review and revise this approach to ensure the success of “move to universal credit” for our customers.
[HCWS213]
Child Poverty: Greater Manchester
Jo Churchill Excerpts(10 months, 1 week ago)
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The Minister for Employment (Jo Churchill)
It is an honour to serve under your chairmanship, Sir Mark. I first thank the hon. Member for Manchester, Gorton (Afzal Khan) for securing this debate. I am sure we all believe that we represent the best place in the world, although I feel a little outflanked today, given the presence of the hon. Gentleman, the hon. Member for Stockport (Navendu Mishra) and my hon. Friend the Member for Bolton North East (Mark Logan), who is sitting behind me. All of them are probably fighting for the constituency they represent to be recognised as the best place in Manchester. As the hon. Member for Manchester, Gorton articulated, it is a wonderful and vibrant city with a huge number of positives driving its resources.
Obviously, I disagree with the picture that the hon. Gentleman has painted. I do not believe that any Member elected to this place wants to see any child living in poverty in our constituencies. I fully understand the passion that drives the contributions on this important issue. The hon. Gentleman himself has explained the complexity of the issue, and how the compounding of many factors and variables makes it an enormous challenge. I am very proud that it was us who introduced not only universal credit, which has transformed lives, to replace the old legacy benefits system, but free school meals for children in reception, year 1 and year 2. I gently say that we will probably agree to disagree at the end of this debate, but I will lay out what we have done. I always urge, in areas such as this, that we all work across the Floor to help all our children rise to fulfil their talents.
I start by reassuring colleagues about our commitment to a strong welfare system to support those most in need. That is reflected in the £276 billion that we will spend through the welfare system in Great Britain this financial year, including a £124 billion package on people of working age and their children. Having uprated in line with inflation this year, we have announced a further increase of 6.7% in working-age benefits for 2024-25, subject to parliamentary approval, and that is well ahead of inflation and its projections. On top of that, we are increasing the local housing allowance from April, which will give a further 1.6 million low-income households the support that they need.
I know that many people are concerned about the cost of living, as the hon. Gentleman said. The Government’s commitment to provide support is reflected in the further £104 billion provided in this area over 2022-23 and 2024-25. In particular, 8 million households across the UK on eligible means-tested benefits have received the first of three cost of living payments totalling up to £900 in this financial year. That includes over 400,000 homes in Greater Manchester, and I am very pleased to confirm that the final payment will be paid to most eligible households next month to further help ease the burden.
I think there is a small area of agreement on the household support fund. For people who require that extra support, we have provided an additional £1 billion of funding, including the Barnett impact, to enable the extension of the household support fund until March. As with all such issues, we keep these things under constant review in the usual way, and before the announcements in the spring, it is not right to say it has ended. This current household support package finishes in March, but it will be kept under review. The covid pandemic and Russia’s illegal invasion of Ukraine have put pressure on virtually everyone, and the household support fund has been a hugely important asset. It has been in existence since October 2021 and we have provided a total of £2.5 billion in that time. It was introduced at a time when the pandemic placed real pressures on the economy, and it has provided that support through these disrupted times.
I am sure that the hon. Gentleman knows that the 10 upper-tier local authorities that make up Greater Manchester have together been allocated £134.6 million since October 2021, including £32.3 million for Manchester City Council, with nearly £13 million allocated to it in the last round. I was really pleased to hear his great examples of local authorities, but the third sector, which is so important in this area, has spent that money in order to add value. Funding has been distributed broadly in the sector and includes financial support to recent care leavers.
While we remain committed to a strong welfare safety net for families who need it, particularly during challenging times, we have always believed that the best way to help children in families who are struggling with their financial circumstances is through work. The hon. Member for Manchester, Gorton said himself that levels of worklessness in his area are higher. Our approach is based on the clear evidence of the importance that work, particularly full-time work, plays in lifting children out of poverty. The most recent data showed that in the 2021-22 period, children living in workless households were five times more likely to be in absolute poverty after housing costs than those in households where adults worked, which shows how important work is.
The data also showed that there were 400,000 fewer children in absolute poverty after housing costs compared with 2009-10—hardly the glowing record that the hon. Gentleman painted. In the north-west in particular, in the three years to 2021, absolute child poverty reduced by 8 percentage points compared with the three years before 2010 after housing costs were accounted for. There are now over 1 million fewer workless households than in 2010. That is more people working and 680,000 fewer children growing up in a home where no one works. As of today, there are 934,000 vacancies across the UK, so our focus is to work with our work coaches across the Department for Work and Pensions family, holding people’s hands and giving them confidence to step into work and progress into financial independence.
I speak to families regularly, as we all do, and they tell me that the two biggest barriers into work are childcare and transport. Manchester is a thriving transport hub and the extension of the £2 bus fares by this Government provides affordable travel options for many. Furthermore, we are extending childcare support so that from September, eligible working parents in England will have access to 30 hours of free childcare per week for 38 weeks of the year from when their child is nine months old.
Universal credit can provide up to 85% of a parent’s childcare costs, and in June last year we increased that by almost 50% to £951 for a single child and £1,630 a month for families with two or more. Importantly, we can also help with advances to help people into work.
We are not stopping there. From April this year, subject to approval by Parliament, the maximum universal credit childcare amounts will increase further to over £1,000 a month for single children and over £1,700 for two or more children. We want to support people into work and allow them to progress. As I said, work coaches and those in our DWP centres stand ready. The national living wage has increased by some £6,700 since we first introduced it in 2016. This year, it has gone up to £11.44—an increase of 9.8%. That is not the record the hon. Member for Manchester, Gorton painted.
To conclude, we are committed to providing opportunities for parents, wherever they live in the UK, to succeed in work. That is the only sustainable way of tackling child poverty in the longer term. It balances the needs of families on benefits with the expectations of taxpayers who contribute to the system. At the same time, as we have done throughout this challenging time, we will of course continue to ensure that vulnerable families have the support they need through the welfare system—but that is a job for all of us. I thank the hon. Gentleman.
Question put and agreed to.
Oral Answers to Questions
Jo Churchill Excerpts(11 months, 1 week ago)
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Greg Smith (Buckingham) (Con)
The Minister for Employment (Jo Churchill)
It is a pleasure to be back, Mr Speaker. We are delivering a suite of measures as part of the back to work plan, supporting customers on their journey to employment. That is focused on developing skills and building confidence through interventions such as the restart scheme. We are working across Government to support those with health conditions get back to work, with programmes such as our WorkWell service.
Mr French
As a Conservative MP from a working-class background, I believe fundamentally in aspiration, hard work and fairness. Does my hon. Friend agree that the benefit system must be a safety net for those in genuine need, and that those people who can work should work?
Jo Churchill
I thank my hon. Friend because he speaks perfectly for those of us across the Conservative family. Work is positive, a force for good, and the system should be fair to the taxpayer and the claimant, with checks and balances. It is right that, on average, those in work are some £6,000 better off per year. Universal credit was introduced and further rolled out because it is a welfare system that makes work pay.
Greg Smith
Skills are clearly key to supporting the long-term unemployed to find work. Buckinghamshire Council is launching a series of skills bootcamps, targeted at the long-term unemployed. For example, one bootcamp will provide construction skills, including a construction skills certification scheme card, plus support to reach self-employment and wraparound support on how to set up a company. Will my hon. Friend congratulate Buckinghamshire Council on that initiative, and say what more she can do to ensure that those who need to upgrade their skills base are able to do so?
Jo Churchill
I am delighted to congratulate not only Buckinghamshire Council but my hon. Friend on the fantastic work he does in his constituency. Upskilling jobseekers, particularly in areas such as construction where we need more domestic workers, is vital. The Department for Work and Pensions continues to support individuals into employment through back to work programmes such as the restart scheme, which provides tailored training programmes and sector-based work academy programmes similar to those mentioned by my hon. Friend. It offers training, work placements, and guaranteed job interviews, and I am committed to exploring what more can be done.
Kerry McCarthy (Bristol East) (Lab)
Earlier today I met Everyone’s Environment, and we talked about how we can ensure that people with disabilities benefit from some of the new green jobs and training that are coming on board. I know that the Minister’s predecessor as Minister for employment sat on the green jobs delivery group, so will she say what involvement she has had with that group to date?
Jo Churchill
I have already had a meeting of the inter-ministerial group on green jobs, and I have met many of those from across the disability sector. When I was a Minister in the Department for Environment, Food and Rural Affairs, I sat on the inter-ministerial groups for green jobs and for disability access. It is vital that we use everybody’s talents, because work is a force for good. Someone’s disability should not stop their talent shining, and I will not let it do so.
Jo Churchill
We have a whole suite in the back to work plan and the investment of £2.5 billion so that we can work with individual people to tailor plans for them. It is vital that if, for example, someone’s health condition restricts when they can travel on public transport, we work with them to ensure that they can travel after rush hour. They might need a taxi or some other tailored support. That can be done, and it will be done.
Chris Elmore (Ogmore) (Lab)
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
The Minister for Employment (Jo Churchill)
Universal credit is specifically designed to make work pay, with strong financial incentives such as the 55% earnings taper and work allowances. Working families can also get support with up to 85% of their childcare costs. The maximum amounts have been increased by 47%, up to £950 for one child and £1,630 for two or more children. Additionally, the rise in the national living wage from April means that some 2.7 million workers will be £1,800 better off, on average, as well as benefiting from national insurance cuts.
Stephen Metcalfe
I thank the Minister for her answer and welcome her back to the Front Bench. Basildon jobcentre recently hosted two health and social care recruitment events, which resulted in the filling of 20 vacancies, helping to reduce local unemployment. Does the Minister agree that work is the best route out of poverty and that it is this Government who are helping more people into work and aligning vacancies with employees?
Jo Churchill
First, I would just like to take a minute to thank Basildon jobcentre, and indeed all jobcentres, for the work they do, from Chorley to the west country and back to the east. Targeted recruitment fairs are a great way to work with specific sectors that have shortages, including health and social care, construction, manufacturing, and hospitality. My hon. Friend is right that getting more people into work is a top priority for the Department and across Government. We know that it is good for wellbeing, both personally and financially, and those in work are on average £6,000 better off a year.
Tim Loughton (East Worthing and Shoreham) (Con)
The Minister for Employment (Jo Churchill)
Flexible working can play an important role in supporting people to start, stay in and succeed in work, and for businesses to grow. I have already seen at first hand examples of good employers offering tailored roles or changed hours to support workers, particularly parents, who have caring responsibilities. Flexibility has made a difference and drives success for all.
Tim Loughton
As the Minister mentioned, the hospital industry—especially in coastal constituencies such as mine—is suffering disproportionately from high vacancy levels exacerbated by covid and the shift in working patterns. What more can the Government do to encourage smarter working and job sharing? For example, students and younger people could work some of the later and weekend hours—the less social hours—sharing with parents with family responsibilities, who could work more regular hours during the daytime.
Jo Churchill
The UK hospitality industry does a fantastic job, particularly at this time of the year when it is helping us to enjoy the festive season. I am providing help and collaboration by delivering pilot schemes across the industry. In particular, we are developing a more standardised approach to training, which includes a proposal to award a hospitality skills passport. We need to do all we can with workers to build confidence and the right skills. I am interested by my hon. Friend’s idea of helping employers to refocus where the needs are, and I shall be happy to work with him, because hospitality offers a great career and transferable skills.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
David Duguid (Banff and Buchan) (Con)
The Minister for Employment (Jo Churchill)
I thank my hon. Friend and note his relentless support for the seafood industry more broadly and the processing industry in particular. I understand that the former Minister for Employment, my hon. Friend the Member for Hexham (Guy Opperman), visited Scotland earlier this year to look at that industry. Work coaches offer tailored employment support to all jobseekers and the flexible support fund is available at the discretion of jobcentres to purchase goods and services, including travel, to support claimants to move from one area to another in order to take up job opportunities. I know that my hon. Friend is working hard in his local area to find solutions, and I am always happy to discuss ideas with him.
Sarah Dyke (Somerton and Frome) (LD)
John Penrose (Weston-super-Mare) (Con)
Jo Churchill
The DWP regularly publishes statistics on its employment programmes, and the latest statistical release of the restart programme was published on 7 December. The back to work plan announced further measures to tackle long-term unemployment, such as mandatory placements for those who complete restart without securing a job. The policy detail, including the reporting, is yet to be worked through.
Liz Twist (Blaydon) (Lab)
Andrew Selous (South West Bedfordshire) (Con)
Jo Churchill
It is fantastic to hear of the job opportunities created by Lidl in South West Bedfordshire. I know my hon. Friend will be working hard with Lidl and his local jobcentre to make sure the vacancies are filled with local talent. Jobcentres can work closely with large employers, as I have recently seen at Morrisons, which has a specific neurodiversity pilot to bring people into the job market. The barriers that restrict neurodiverse people are often challenges around confidence and so on. Jobcentres are a brilliant force for good, and I recommend that everybody engages with them on bespoke schemes for neurodiversity or any other focus on tackling long-term unemployment.
Richard Graham (Gloucester) (Con)
The great working city of Gloucester has a high employment rate, but we still have some people who could help to fill vacancies in both city and county. So the Gloucester opportunities fair on 23 February provides a great opportunity not just for all my constituents, including to get free advice on debt, volunteering and benefits, but perhaps for the new Employment Minister, whom I welcome to her place, to come to join us in celebrating the availability in Gloucester and the support for those working there.
Jo Churchill
If my diary allows, I would be delighted to join my hon. Friend.
David Simmonds (Ruislip, Northwood and Pinner) (Con)
My constituents Susan and David Cfas have made representations to me about the situation facing them and many other pensioners who are having to access benefits and other Government support because they are stuck in an annuity trap, whereby at retirement they posted an annuity, which has remained fixed. Will my right hon. Friend meet me to discuss the plight of pensioners in that situation to see whether more can be done to encourage them to access different approaches to increase their income?