Personal Independence Payments: Merseyside
Justin Tomlinson Excerpts(5 years, 8 months ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)
It is a real pleasure to serve under your chairmanship, Sir Edward. I understand that we are waiting for a permanent Minister for Disabled People, but in the meantime—I am sure it will not be long—it is a great honour to be here. I formerly served as the Under-Secretary with responsibility for disabled people, but the role has been significantly enhanced. It is an extra pleasure to be here in the enhanced role, albeit temporarily.
I pay tribute to the hon. Member for Garston and Halewood (Maria Eagle). We met just last week about a separate case, and we had a debate earlier this year, I think, on a similar topic. As a former Minister, she has genuine feeling and passion for supporting the most vulnerable people in her constituency, backed up by her genuine knowledge about this issue. I am happy to look at the cases that hon. Members have raised. I will take that envelope—I can see that it is ready. I also pay tribute to the hon. Members for Liverpool, West Derby (Stephen Twigg), for Wallasey (Ms Eagle), for Liverpool, Riverside (Dame Louise Ellman) and for Battersea (Marsha De Cordova). There was a common theme: it is clear that they all genuinely care about vulnerable people who rely on people like us—the decision makers—to get it right. Although I did not necessarily agree with everything they said, I understand why they made those comments.
The PIP assessment is meant to be high quality, objective, fair and accurate, and it should focus on the fundamentals of living an independent life. Today we spend somewhere in the region of £55 billion supporting people with disabilities and long-term health conditions. In real terms, that is about £10 billion higher than when we first came to office in 2010. That is about 2.5% of GDP and 6% of all Government spending. It is an incredibly important area of Government expenditure. There are just over 2 million claimants on PIP, and many more are coming into the system or are due to do so.
Currently, 31% of PIP claimants access the highest rate of support. That contrasts with just 15% under DLA. I do not wish to diminish any of the points that hon. Members made—I will cover many issues about which we still need to do more—but we must remember that the system has come a long way from the old legacy benefit. One thing that is consistent among all stakeholders and charities that I speak to in my current role, and that I spoke to formerly when I was the Minister with responsibility for disabled people, is that nobody advocates going back to the old DLA system.
Under PIP, 45% of people with autism spectrum disorder will have the highest rate of support. For motor neurone disease, the figure is 85%. For multiple sclerosis, it is 53%, and for Parkinson’s, it is 55%. Many hon. Members rightly spoke about mental health. Under PIP, 31% will get the highest rate of support. Under DLA, only 6% did, so under PIP five times as many claimants with a mental health condition will access the higher rate. That does not mean that we are getting it right all the time, but there has clearly been a significant and much-needed improvement. In cash terms, the average claimant is getting £15.04 a week more on PIP, compared with DLA.
Justin Tomlinson
Yes, it is an average, and we are highlighting cases. I will come on to that.
The old DLA system relied solely on self-assessment. For many claimants, the very complex DLA forms were a barrier too far, and people who were in genuine need of support were missing out. Although the lifetime awards were seemingly attractive, they missed the point that many people enter the benefit on a lower rate of support, because conditions can get progressively worse. People on a lifetime award were often told, “If things deteriorate, please contact us for reassessment.” People often did not, either because they did not want to risk losing their benefit or because they did not appreciate that getting a reassessment could work to their advantage financially. Bear in mind that one in three claimants’ conditions changed so significantly within a year that they could be due a change in those circumstances, and the majority would be higher.
Ms Angela Eagle
The Minister is making a case for the benefit, but nobody is arguing that it is fatally flawed. We are asking for the assessments to be more accurate, because they are causing problems. He is making a case about conditions that deteriorate, but I have brought to his notice cases of people with deteriorating conditions whose awards have been lowered.
Sir Edward Leigh (in the Chair)
Order. May I just make one point? This debate is about the administration of personal independence payments on Merseyside, so we want from the Minister talk about administration and Merseyside.
Justin Tomlinson
It is important to set out the overview of where we are. That is why it was so important to highlight those cases in Liverpool and Merseyside, which shape how we do the administration. All our work is done in conjunction with stakeholders that have frontline experience. Hon. Members highlighted the excellent charities and support groups in Liverpool and Merseyside, which are feeding in. They are right to challenge, shape and help us implement the changes. I have seen many cases in which their frontline experience has brought to our attention common sense that should be applied. That has been done, but that work is not complete. I do not know all the details of the examples that hon. Members highlighted—sometimes there are two sides to a story—but presumably their offices have looked into the cases extensively. There are clearly issues that need to be looked at. Hon. Members have my commitment that we will look at those cases very carefully.
Marsha De Cordova
The Minister says that he will look at those cases, of which there are many, but does he recognise that there is a significant problem? We have had a snapshot from just one part of the country—Merseyside—but we know that there is a wider issue with the administration of PIP. Does he recognise that?
Justin Tomlinson
We always recognise that there is a need for improvement, and we continue to review all the processes—not just PIP, but all parts of Government activity. It is right to do that, and I am sure any party in government would make the same commitment.
Some 92% of claimants complete the forms, but that still leaves 8% who have challenges with them. We have already tried to make improvements by changing the language, tone and style, and shortening the paragraphs. We commissioned further independent research to support further changes. For those 8%, ahead of further changes, we can grant an additional two-week extension. We try to identify vulnerable claimants whom we may have to help with the initial application. With the support of charities and stakeholders, we have produced videos to explain the process. We are trying to make it clearer and remove claimants’ understandable anxiety. For claimants who have severe mental or behavioural conditions, learning disabilities, development disorder or cognitive problems and who cannot engage with the claims process, we will try to offer what support we can, beyond the excellent work of local organisations, which has been highlighted.
Many of the concerns that hon. Members raised were about the assessment process. We encourage help from carers, family friends, social workers or local support workers. I am really disappointed to hear the two examples from Liverpool and Merseyside of people who were trying to provide that support, which would have resulted in a better quality assessment. That should not be happening, and we should look into it. That is an incredibly important part of the process—not just because people are anxious or because demonstrating all their individual challenges is a complex process, but because for some people, particularly those with long-term health conditions, their issues have become a given. They no longer see those issues as a challenge and do not raise them, so they do not get the support that they should be getting. It sometimes takes having someone with them to say, “Actually, that isn’t right. We need to do something.”
Maria Eagle
I thank the Minister for giving way—it is a bit hard with twins. He said he was disappointed to hear the examples that my hon. Friend the Member for Wallasey (Ms Eagle) and I gave of that going wrong, but can he explain what he is going to do to stop it happening? It is a fundamental problem with administration.
Justin Tomlinson
I will come to that. Fear not; I have woven in as many of the answers as I could.
The average length of time for assessments is now 15 weeks, and it has actually fallen. Initially, in July 2014, when it was at its worst, it stood at 42 weeks, so it has fallen by two thirds to 15 weeks. We got it down to about 13 weeks, but feedback from stakeholders and charities suggested that it was better for assessments to take a bit longer, to help people—particularly the most vulnerable claimants—to gather evidence.
The assessors must be health professionals—occupational therapists, nurses, physiotherapists, paramedics or doctors—who have had at least two years’ experience since they became fully registered. Although there has been understandable criticism of some important cases, the vast majority of the staff on our frontline are well-trained and exceptionally hardworking, and they have claimants’ interests at heart. I think that we all recognise that. In the skills that assessors must have there is an emphasis on assessing people with conditions affecting mental health, intellectual or cognitive functions. There is comprehensive training on how health conditions and impairments affect claimants’ day-to-day lives.
Justin Tomlinson
Hang on; I will address the previous intervention. What are we doing to ensure that cases such as those that hon. Members have mentioned do not happen? First, there is the independent audit for quality assurance, which is separate from the Department. It is important that we look at that. Our own DWP clinicians will also observe cases, and we get a considerable amount of helpful feedback from stakeholders.
Such examples are part of the reason behind the call for video recording. We agreed to pilot that in the autumn of last year, and it has progressed encouragingly. If there is no backlash from stakeholders, we will look at making that a given by the end of the summer. Video recording would make a huge difference, particularly in cases where something clearly is not going right. We would be able to look back at recordings, which would hasten our addressing of problems, and recordings could be used for appeals.
Satisfaction in 2015-16 was at 76%, and it is now at 82%. It still has some way to go, but the direction of travel is improving.
Ms Angela Eagle
I raised a case of someone who was 95% deaf. Her father was not allowed to write the questions out so that she could see them. The interview was terminated early, and the assessor was of the opinion that my constituent could hear but was pretending that she could not. How on earth is that allowed to happen if the system is as good as the Minister claims?
Justin Tomlinson
It is difficult to comment without having seen the details. I am not saying that what the hon. Lady says is not true, but if that case is exactly as she describes, that should not be happening and needs to be looked at, which is why I have committed to doing so. In general—as in the case about which I met the hon. Member for Garston and Halewood last week—common sense is not being applied. We must make sure that the rules and guidance that are in place are consistent across the board.
A number of hon. Members highlighted that in Liverpool and Merseyside, home visits are not offered. Between 15% and 20% of claimants in Liverpool and Merseyside have actually been offered home visits, as they should be. If, for a variety of medical reasons, travelling to the assessment is a barrier to accessing the benefit, that should be taken into account. Certainly, when I was the Minister with responsibility for disabled people, we improved the communication by making it more proactive to encourage that. We want the assessment process to work for the claimant.
I also welcome our introduction of the video relay service for those who are deaf and use British Sign Language. That is important not just for PIP, but across all frontline services.
Maria Eagle
I thank the Minister for giving way when he has only a little bit of time left. The delay to tribunal hearings is a severe problem. Can he address that before he concludes his remarks?
Justin Tomlinson
That is the key thing that I will address, but I will cover one last matter first.
Some 600,000 claimants currently access the Motability scheme. I echo the comments about what a wonderful scheme it is. I think it is the second-largest purchaser of motor vehicles after the Chinese army, so it has significant buying power and is very important. I visited a car salesroom that dealt with Motability and that said it was the dream customer. Some 144,000 people who were formerly on DLA and did not access the higher rate of mobility now do, following re-assessment, and they can therefore access the scheme. That goes back to the point about the 31% against the 15%.
Those who were on DLA on a higher rate, and who could therefore lose their car, will get to keep the car through the £175 million transitional fund that was set up. They keep the car for eight weeks, and then they can either take £2,000 or keep the car for up to six further months, but with a lower payment at the end if their appeal is unsuccessful. That provision was brought in because of a recognition that the appeal process, which I will come to in a moment, often took longer than the time for which the claimant could keep the car. That meant that a car could be taken away, only to be given back two weeks later. When the difference is very close, Motability Operations can exercise some discretion. Fundamentally, the challenge is the length of time of appeals, and that is probably the most tangible concern that has been raised by all who have spoken. I emphasise that the absolute priority is getting it right first time. If we could get every decision right first time, we would not have to worry about mandatory reconsiderations and the appeal process. We all agree on that.
The MR process was introduced to try to intercept cases in which mistakes are made and stop them having to go through the appeals process, which is a real challenge and reduces capacity, and thus bring down the time for other cases. Although I accept that very few decisions appear to change, about 22% of cases are actually picked up by MR. It is absolutely right to focus on that, however, and I think we all recognise that more decisions could be changed. Often, a lot of the MR process is just checking the current processes. The nub of the matter is that the appeals process often considers late, additional evidence. The common-sense point is that we should be doing a lot more, and we are testing that concept by asking whether there are any obvious gaps that we can pick up. Has there not been a GP note? Has supporting evidence that we suspect will be presented not been submitted?
Maria Eagle
The case that I mentioned, which has now been fixed, involved a woman who should really just have had another appointment at home. That was not picked up on a mandatory reconsideration. There is surely a point at which some common sense should be injected.
Justin Tomlinson
Absolutely. That is what we are testing, so that we can assist claimants by strengthening areas where there are obvious gaps. It would be quicker for the claimant, and we would benefit, because those gaps reduce capacity in the process. We are working with Her Majesty’s Courts and Tribunals Service to try to address the capacity issue, in terms of both the new digital service and recruiting additional judges and tribunal panel members. That cannot come quickly enough.
It is true that the majority of successful appeals are successful thanks to late evidence. We should see that as an opportunity to look at how we can do more to get such evidence in the first place. We are committed to learning those lessons to improve the process for everyone.
It has been a pleasure to respond to this debate. The group of hon. Members who have spoken are passionate about this matter, and they are real champions for their constituents. I have listened to all the points that have been raised, and I will look at the individual pieces of casework. We have a collective duty to keep applying common sense to improve the situation, and we are heading in the right direction. That is welcomed by stakeholder groups, but there is still more to do, and I am committed to doing what I can to support that work.
Oral Answers to Questions
Justin Tomlinson Excerpts(5 years, 8 months ago)
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Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)
Household incomes have never been higher. In 2016-17, there were 1 million fewer people living in absolute poverty than in 2010. In Scotland, whichever way we look at poverty—relative or absolute, and before or after housing costs—in the three years to 2016-17, no measures are higher than in the three years to 2009-10; in fact, three are lower.
Brendan O’Hara
A few weeks ago, a young family with a newborn baby appeared at my constituency office in Helensburgh. They were halfway through their four-week universal credit assessment period. This was a family in crisis. They were penniless, and the father had not eaten for three days. They did not even have enough money to buy baby milk and had been refused healthy start vouchers because they ticked the wrong box. Is that not the reality of the poverty being created by the Government?
Justin Tomlinson
I am sorry to hear about the circumstances of that case, and I am happy to look into it further. One of the recent announcements we have made is that there will be Citizens Advice support within every jobcentre from April onwards. That is the sort of case where Citizens Advice can step in and provide independent support and advice, to ensure that people get their full entitlement.
Drew Hendry
Be it universal credit, the benefit freeze or Brexit, the poor are being hit the hardest at the moment, yet according to research from the Resolution Foundation, overall tax and benefit changes will take £100 from families in the bottom fifth of income distribution and give £280 to those in the top 10. Does the Minister think that that is fair?
Justin Tomlinson
That is not something I recognise. Through the additional money being put into universal credit, record employment, the changes to the income tax personal threshold and rising wages, the poorest fifth in society are now £400 better off in real terms than in 2010.
Stephen Kerr (Stirling) (Con)
Does the Minister agree that, with employment at record levels and wages rising in real terms, the best approach to helping people out of poverty is the one that this Government are delivering?
Justin Tomlinson
My hon. Friend is spot on. Only 5% of children whose parents work full time are in poverty, against 63% for families where there is only part-time work, which is why our delivering record employment in all regions of the UK is making a real difference.
Margaret Greenwood (Wirral West) (Lab)
Next year, the benefit freeze will leave the poorest 20% of families with children £900 worse off on average. In January, the Secretary of State said that the benefit freeze was the right policy at the time, but both she and the Chancellor have signalled that it will not be renewed in 2020. If it is not the right policy now, why are the Government continuing with the freeze for another year?
Justin Tomlinson
The hon. Lady continues to object to any measures to restore fairness to the benefits system. Under the last Labour Government, we saw welfare spending increase by £84 billion and an additional tax burden of £3,000 per hard-working household. This is about fairness and supporting people, while having a good safety net for those most in need.
Heidi Allen (South Cambridgeshire) (Ind)
Ms Karen Buck (Westminster North) (Lab)
The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)
An evaluation of the cap, covering these groups, is expected to be published in spring 2019. Some claimants might not be required to look for work, but they are expected to undertake activities designed to help them prepare for and move closer to the labour market. Those needing additional help adjusting to the cap can apply for discretionary housing payments.
Ms Buck
But this is really missing the point. As the Work and Pensions Committee report made absolutely clear, the benefit cap should not apply to people who are not required to undertake a work search. Why are constituents such as mine having to find £50 out of their child benefit and child tax credits when they are in homeless accommodation and have no say over where they are accommodated and how much rent they are paying, or when they are exempted from a work search, including, in one case, when a mother had been fleeing domestic violence?
Justin Tomlinson
There are automatic exemptions for claimants on DLA, PIP, carer’s allowance, guardian’s allowance, working tax credits when working over 16 hours a week, universal credit when earning over £542, ESA support or the UC higher rate. Where they are not covered by that, discretionary housing payments can be used, and in that case they certainly should have been looked at favourably.
Kate Green (Stretford and Urmston) (Lab)
On 29 January, the Minister told me in a written answer that the Department does not know how many resettled refugee families may be subject to the benefit cap. Can he give me an assurance on the Floor of the House that the Government will start to look at that data and guarantee that no such family will be left unable to access the financial support they need?
Justin Tomlinson
I thank the hon. Lady. I have met a number of stakeholders to discuss this issue and wider issues connected to refugees. It is an area of priority for the Department, and I would be happy to meet her to discuss this further.
Lilian Greenwood (Nottingham South) (Lab)
The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)
Our own evidence does not show a direct link between the increase in food bank use and the roll-out of universal credit. As the Trussell Trust has said, it is impossible to identify one single cause. Universal credit spends £2 billion more than the system it replaces, and it incentivises work, providing a pathway out of poverty.
Helen Hayes
In my surgery on Friday, I met a family with very young children who have been without benefits to which they are entitled since before Christmas, due to mistakes by the DWP. They are already in housing rent arrears and reliant on the local food bank. Without resolving those errors, the DWP is now moving them on to universal credit, where the terrifying prospect of a five-week wait and no funds to repay an advance pose a real risk of homelessness. I want the Secretary of State not only to look into this case but to deal with the incompetence and cruelty in her Department, which are causing such misery for far too many people.
Justin Tomlinson
First, I give a commitment that, yes, I am very happy to look into that specific case. It highlights the problems with the legacy benefits, whereby £2.4 billion a year of benefits were missed. It was a complex, bureaucratic process where mistakes could happen and claimants—particularly vulnerable claimants —did not take what they were entitled to. Under universal credit, with personalised, tailored support, mistakes can be rectified more quickly.
Lilian Greenwood
Rent arrears are deducted from jobseeker’s allowance at £3.70 a week, but for universal credit the deduction is £31 a month, while overpaid benefits and advance payments are deducted at even higher rates. Some of my constituents are having over £100 deducted from their monthly universal credit payments, forcing them to dip into their rent money and use food banks just to get by. They would not find themselves in this position if they were not waiting up to five weeks to receive their first payment. The Secretary of State says she has put in measures to address that, but they clearly are not working. When will Ministers face the facts and scrap the five-week wait?
Justin Tomlinson
Those transferring from legacy benefits would get two weeks’ housing benefit run-on, no strings attached, in addition and would automatically be offered the advance payment. We have lengthened the time over which that would be repaid and lowered the rate at which it would be claimed back.
Royston Smith (Southampton, Itchen) (Con)
Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)
The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)
We are committed to ensuring that individuals receive high-quality assessments. Providers are closely monitored against a range of measures, including through independent audit, to improve the accuracy of the advice they provide to decision makers. We continually look to improve the efficiency of the assessment process by working closely with our providers.
Diana Johnson
Quite apart from the problems with and maladministration of work capability and PIP assessments, I have requested that Ministers consider the passporting of people who were affected by the contaminated blood scandal, so that the benefits they are currently on are passported on to the new benefits. I do not understand, when there is a public inquiry into the scandal, why these people are still having to go through the assessments.
Justin Tomlinson
I know that the hon. Lady has campaigned for a number of years on this incredibly important issue, and I pay tribute to the diligence of her work. I would be very happy to meet her to discuss the matter further.
Mr Sweeney
Some 72% of personal independence payment appeals were successful in the first three months of last year, which is an appalling failure rate. It is my understanding that Scottish Ministers have had power over the administration of personal independence payment since the Scotland Act 2016 came into effect, and that they would have the power to usurp the failed system and adopt a new one. Why is it taking so long to do it?
Justin Tomlinson
From my former role as Minister for Disabled People, I know that Scottish Ministers had the opportunity to take that forward. We are willing to work with their officials to make that possible if they wish to proceed. The ball is very much in their court.
Mr David Davis (Haltemprice and Howden) (Con)
I declare a family interest in the answer to my question. The undoubted problems with health assessments are causing delays in the appeal process right across the board, not just with PIP and others, but with disability living allowance and mobility allowances. Will the Minister agree to see me and discuss how we can accelerate the process, because some appeals take more than 39 weeks to come to fruition, with the effect that children have to wait over a year before they get their proper allowances?
Mr Speaker
I am sure that the Minister will agree to see the right hon. Gentleman. It would be extraordinarily reckless and foolhardy to refuse to do so, and I am sure that the Minister would never be reckless or foolhardy.
Justin Tomlinson
It will be a pleasure to meet my right hon. Friend. We have been working very closely with the Ministry of Justice to improve the capacity within the tribunal system, to speed up the process. The Secretary of State has set out ambitious plans to improve the mandatory reconsideration stage to reduce the number of decisions that are going on to the independent appeal part.
Rachel Maclean (Redditch) (Con)
Will the Department and Ministers join me in paying tribute to Disability Support Project in Redditch, which does some great work to help disabled people to navigate the bureaucracy surrounding the system? Will the Minister outline when we will see a difference on the ground from some of the measures that he is putting in place to improve the transparency of the assessment procedures?
Justin Tomlinson
I thank my hon. Friend for highlighting the fantastic work that her local organisation does. Those with that frontline experience have to be at the heart of the improvements that we take forward. We engage very proactively and constructively with stakeholders, national and local, and they are helping to shape the improvements.
Marion Fellows (Motherwell and Wishaw) (SNP)
Justin Tomlinson
We are always reviewing that process and we work very closely with stakeholders, with their wealth of experience, to make sure that we continue to deliver improvements.
Will Quince (Colchester) (Con)
Andrea Jenkyns (Morley and Outwood) (Con)
A mother in my constituency is struggling due to a lack of financial support from the father of her children. The woman’s ex-partner is not in work, but he gets considerable income from several properties he owns. However, that income is not considered by the Child Maintenance Service when calculating maintenance for his children. What can the Minister do to make sure the Child Maintenance Service focuses on not only salaries but other forms of income?
The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)
I will be very happy to look personally into this case and to report back. Actually, we do have powers to investigate further—these powers were opposed by the Labour party in January. We believe that everything should be done to help the receiving parent get the support they are entitled to.
Lilian Greenwood (Nottingham South) (Lab)
Application of the Family Test
Justin Tomlinson Excerpts(5 years, 8 months ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)
It is a real pleasure to serve under your chairmanship, Sir David, in this very calm and sensible week for Parliament. I am sure all eyes will be focused on this very important debate.
I thank my hon. Friend the Member for St Austell and Newquay (Steve Double) for securing the debate. He has an exceptional track record in this important area; it is a real credit to the work he has done that he has so much support from the colleagues who attended the debate. I pay tribute to his work alongside the noble Baroness Eaton with the Centre for Social Justice, which culminated in its recent report on the family test. That excellent piece of work was a really good way to focus minds—not just in my Department, but across Government. I will go into more detail about that.
I also thank all the other Members who contributed, in particular my hon. Friends the Members for St Ives (Derek Thomas) and for Congleton (Fiona Bruce). I will cover many of the questions raised, but let me say two quick things before I forget. I would be delighted, diary and parliamentary duties permitting, to attend the family hub event, so I ask my hon. Friend the Member for Congleton to make sure I have all the details of that.
My hon. Friend the Member for St Ives has done fantastic work as an MP to support those with special educational needs, using his wealth of experience from his work prior to arriving in the House. I recognise his point about supporting families with special educational needs children.
I pay tribute to one of my local special educational needs schools, the Uplands School, which has made a very small change that could easily be adopted by all schools and is making a huge difference. Like all schools, it has parental support classes, which offer peer-to-peer support—parents get together over cups of tea and talk about the challenges they are facing and how they can support one another. The headteacher, Jackie Smith, has ensured that parents get an invite to those support classes once they know their children will end up at the school, rather than having to wait until the day they come. That ensures that peer support is provided from the very early days, which is making a huge difference.
We also had a contribution from the hon. Member for Glasgow Central (Alison Thewliss), who perhaps stretched the intention of the debate—most of her comments were probably better suited to a Home Office debate. I am sure there will be opportunities for Home Office Ministers to respond in the future.
I thank the hon. Member for Wirral West (Margaret Greenwood) for welcoming the principle of the family test. I appreciate that, but she then applied a series of political statements loosely to the principles of the family test. It would be remiss of me not to correct some of the points she made. For example, under this Government there are now 500,000 fewer families on the housing waiting list. Food affordability—the measure of whether families can afford the basics in terms of food—has almost halved in just under five years and is 2.5% lower than the EU average. Material deprivation has never been lower. Income inequality has fallen under this Government, having risen under the last Labour Government. There are now 300,000 fewer children in absolute poverty. Welfare spending under the last Labour Government—
Justin Tomlinson
The hon. Lady was not willing to take interventions from colleagues who actually stuck to the principles of the debate, so I will not.
Under the last Labour Government, welfare spending rose on average by £3,000 per house. Imagine the impact on hard-working families.
Justin Tomlinson
I will shortly. The Opposition voted against income tax threshold changes that have given families an additional £1,200 a year. Our spending on childcare will have risen from £4 billion in 2010 to £6 billion by 2020—a 50% increase—and we are delivering record employment in all regions of the UK, yet again supporting families. I give way to my hon. Friend.
Fiona Bruce
The Minister has actually made my point for me. The speech by the hon. Member for Wirral West (Margaret Greenwood) highlighted the fundamental difference in the way we approach this issue. The Opposition’s solution to so many social problems is throwing more money at them. There was no money left when they finished in government.
We are saying that if we strengthen family lives, just like the teacher the Minister mentioned, we will prevent those problems—mental health problems in school, addiction, people going to GP surgeries with depression and losing work days, and so on—from arising in the first place. That is the fundamental difference. That is why we are pressing for the Government to strengthen family life: because we believe that prevention is far better and cheaper than attempted cure.
Justin Tomlinson
My hon. Friend is spot on. It was clear from my colleagues’ speeches that they have a constructive, proactive and real focus on the absolute principles of the family test, and I shall now turn to that.
Many hon. Members have underlined the importance of the family test, and I am pleased to see sustained interest in that test among colleagues. I restate the Government’s commitment to the family test, which was introduced in 2014 to help put families at the heart of policy making. In designing the test, alongside the Relationships Alliance, we wanted to help policy makers understand how policies might, positively or negatively, affect families.
We want potential impacts on families to be considered early so that they can shape proposals, rather than at the end of the process when we are preparing to announce and implement any changes. That point is key, and the test helps to ensure that potential impacts are properly considered in the advice that Ministers receive. My hon. Friend the Member for St Austell and Newquay was spot on when he said that such issues must be embedded into that early thinking.
Justin Tomlinson
I will respond to the thrust of the debate. We want the family test to be broad and flexible, reflecting the nature of 21st-century families. The test already encourages policy makers to consider a wide range of impacts, including on family formation, families going through key transitions, the ability of all family members—dads, mums, and the extended family—to play a full role in family life, families who have separated or who are undergoing separation, and those families most at risk of a deterioration in relationship quality and breakdown.
I acknowledge that some would like the family test to be a statutory obligation, but feedback from policy makers, and points highlighted in speeches today, suggest that a statutory test could risk becoming a box-ticking exercise at the end of a policy process, with pass or fail outcomes, rather than something embedded at the beginning of the process, which is key. A legislative test would also risk losing the flexibility to adapt and change.
I welcome the review of the family test by the Centre for Social Justice, and I thank it for highlighting these important issues, many of which my officials have been working to address with the relevant Departments. There is a strong alignment between the report’s recommendations and our approach to strengthening practice in the use of the test. I agree that individual Departments should take responsibility and ownership of their application of the family test—interestingly, the report by my hon. Friend the Member for Congleton highlighted both good and bad practice.
Justin Tomlinson
There we are—it is on the record, and those Departments will no doubt be held to account. The Attorney General’s response is probably the shortest that I have heard from any Department, and I know my hon. Friend will scrutinise it carefully.
We are working with a network of representatives from all domestic policy Departments to develop tailored resources to help officials apply the test in their unique policy contexts, and ensure that advice to Ministers reflects the impact on families. That will be underpinned by refreshed central guidance for officials, which we expect to publish this summer—I will return to that important work at the end of my remarks, with a request for those Members who have demonstrated passion about this issue to ensure that we get it right. My Department will actively consider including the family test in the DWP business plan.
I am pleased to be part of the inter-ministerial group that is focusing on how to improve support for families in the first 1,001 days. Another of the report’s recommendations is for Ministers to take a more active role in ensuring that the family test is applied in their Departments. I have raised the family test with that inter-ministerial group, and I will ask Ministers actively to consider whether the test has been considered in all the advice they receive, on any topic, in their Departments.
The excellent report by the Centre for Social Justice builds on important issues raised by colleagues who published the “Manifesto to Strengthen Families”. It also highlights examples of where Departments have used the family test, and where that has made a difference to the policy making process. We recognise, however, that more progress can be made to ensure that the test is robustly applied to all domestic policy. That is why my Department, which has the cross-Government lead on the test, has been taking action to strengthen its implementation across Government.
Each Department has a nominated representative on the new family test network—my hon. Friend the Member for St Austell and Newquay highlighted the importance of that—and the network is identifying, developing and sharing best practice on applying the family test. That helps us to deepen our understanding of how the test is applied across Government, and what further support officials need to embed it fully as part of any considerations made when formulating policy.
The network pays particular attention to the need highlighted in the report to build evidence, and we are currently exploring ways to support Departments in that. We will continue to encourage and support Departments to apply the family test, and to make their own judgments on whether and when publishing assessments is appropriate. We will consider whether more can be done to improve transparency, which includes reflecting on the report’s recommendations. It is unclear, however, whether knowing how many family tests a certain Department has applied would bring much greater or more meaningful transparency.
I am keen to avoid introducing layers of unnecessary bureaucracy to the policy making process, but I understand the thrust of the point being made. Insights from the family test network are driving our review of family test guidance, published on gov.uk, which helps officials to understand why, when, and how they should apply the test. Revised guidance planned for summer 2019 will better reflect the needs of users.
We are helping Departments to develop a toolkit of resources for officials to improve consistent and meaningful family test application across Government. Given that effective implementation of the test is fundamentally an issue of capability, we are also working with Civil Service Learning and the Policy Profession unit, to consider how best to support policy makers to apply the family test effectively.
Let me share some examples of how the Government are actively working to make lives better for families, and how our policies are responding to the key questions and evidence set out by the family test. My Department is currently implementing the Reducing Parental Conflict programme, which is backed by £39 million. That programme helps councils across England to recognise the evidence about the damage that parental conflict can do to children’s long-term outcomes. It will soon provide evidence-based, face-to-face support for parents in 31 English local authorities. I attended an important roundtable with those local authorities, and there is real enthusiasm to deliver this programme and build that tangible constructive evidence.
Fiona Bruce
I welcome this programme, but an integral part of it needs to be a focus on strengthening couple relationships, not just parent-child relationships. Will the Minister look into that?
Justin Tomlinson
We are digesting all the successful bids for the various strands of that programme, and I am sure that many organisations will have a proven track record in that area. I am happy to consider that specific issue in greater detail in a meeting on the programme.
We want face-to-face support to be available to those families who need it most. This is why we will prioritise help for workless and disadvantaged families, and why we are exploring how to ensure that those eligible parents with whom we are already working, through Jobcentre Plus and the Child Maintenance Group, are able to access such support as early as possible.
All local authorities can access funding to increase their strategic capability to address parental conflict, as well as training for frontline staff. We are funding even more innovation through our joint work with the Department of Health and Social Care to support children of alcohol-dependent parents, and with our new £2.7 million Reducing Parental Conflict challenge fund. A number of Departments have highlighted that fund to their stakeholders to ensure good engagement.
The principles of the family test are visible across the Government. The Department for Education recently announced that all children and young people will soon be taught about the importance of healthy relationships, including marriage and family relationships. I welcome the positive comments from my hon. Friend the Member for St Austell and Newquay about the Ministry of Defence and the Department of Health and Social Care, and the Ministry of Justice is also considering how we can reduce conflict in families that are going through a divorce. The Troubled Families programme is driving better ways of working around complex families, improving outcomes for individuals and reducing their dependency on services, and delivering better value for taxpayers. That programme aims to achieve significant and sustained improvement for up to 400,000 families with multiple high-cost problems by 2020—something I passionately support.
In conclusion, I thank all hon. Members who have contributed to the thrust of this debate—particularly my hon. Friend the Member for St Austell and Newquay, who has been a real champion in this area. We welcome the continued constructive work by the Centre for Social Justice, and its review of the family test, and we are actively considering its recommendations.
The importance to our society of strong families cannot be understated, and we look forward to working with all hon. Members as we continue to strengthen our use of the family test and make a difference for families. I would greatly welcome the opportunity to meet my hon. Friends from the Centre for Social Justice and have a deep-dive look at the recommendations in their respective speeches and the recent report.
Social Security
Justin Tomlinson Excerpts(5 years, 8 months ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)
I beg to move,
That the draft Social Security Benefits Up-rating Order 2019, which was laid before this House on 30 January, be approved.
In my view, the provisions in the order are compatible with the European convention on human rights. The order reflects the Government’s continuing commitment to increase the basic and full rate of the new state pension by the triple lock, to increase the pension credit standard minimum guarantee in line with earnings, and to increase carer’s benefits, and benefits intended to meet additional disability needs, in line with prices.
The Government’s commitment to the triple lock means that the basic state pension will continue to be uprated by the highest of rises in earnings, rises in prices or 2.5%. The triple lock has been an invaluable tool in combating pensioner poverty, and keeping it in place gives pensioners the financial security and certainty that they deserve. This year the increase in earnings was the highest of the triple lock figures. As a result, the basic state pension will increase by 2.6% to £129.20 a week for a single person. Consequently, from April this year the basic state pension will be over £1,600 a year higher than it was in April 2010. We estimate that the basic state pension will be around 18.4% of average earnings, which is one of the highest levels relative to earnings for over two decades.
Three years ago, the Government introduced the new state pension, which provides a transparent and sustainable foundation for private saving and retirement planning for people reaching state pension age on or after 6 April 2016. We have also committed to increase the full rate of the state pension by the triple lock. As such, from April 2019 the full rate of the state pension will increase to £168.60 a week—about 24% of average earnings.
Sir Peter Bottomley (Worthing West) (Con)
If the Minister will not say this, may I? That increase does not go to half our overseas pensioners, including those in South Africa, Canada and Australia and other places—50 countries around the world. Does he agree that it is about time we considered that?
Justin Tomlinson
I thank my hon. Friend, who has campaigned tirelessly on this issue. It has been the case for some 70 years that we do not uprate those pensions, and at this stage there are no plans to make any changes to that.
On the additional state pension, this year the state earnings-related pension scheme and the other state second pensions, as well as protected payments in the new state pension, will rise by 2.4% in line with prices. With pension credit, we are continuing to take steps to protect the poorest pensioners, including through the pension credit standard minimum guarantee—the means-tested threshold below which pensioner incomes should not fall. That will rise by 2.6% in line with average earnings. From April 2019, the single person threshold of this safety-net benefit will rise to £160.25—over £1,800 a year higher than it was in 2010.
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
What assessment have the Government made of the changes to pension credit that will come in in May this year, making it unavailable to people whose partner is under 65? How many more pensioners will be driven into poverty as a result?
Justin Tomlinson
There are two elements to that. First, it depends on individual circumstances and the impact of factors such as different arrangements in whether people are working, their caring responsibilities, and their health conditions. Secondly, it is about the principle of fairness, in that those of working age should not be accessing pension-related benefits. We should not be taking people of working age out of the workplace. Pensioner poverty continues to stand at one of the lowest rates since comparable records began, and we intend to keep it that way.
Justin Tomlinson
I will come back to the hon. Lady.
Turning to universal credit, in the 2018 autumn Budget statement the Chancellor announced additional assistance for those on universal credit. As such, the universal credit work allowance will increase by £1,000 after they have been increased by prices, helping 2.4 million working families. This measure raises the amount someone can earn before their universal credit payment is reduced and directs additional support to some of the most vulnerable low-paid working families.
Finally, let me turn to disability benefits. This year the Government will continue to make sure that carers and people who face additional costs as a result of their disability will get the additional support they need.
Alison McGovern (Wirral South) (Lab)
I have to ask the Minister: is that it? We are in the middle of a benefits freeze that is seeing family poverty rise—is that all he has got to say about it?
Justin Tomlinson
With this uprating order, I am bringing forward plans to increase support for some of the most vulnerable people in society to the tune of £3.5 billion, with £3 billion alone to help those with disabilities and long-term health conditions, and pensioners—key people who the Government, as we share the proceeds of growth, will continue to target support towards. That is why the incomes of the lowest-paid have risen by over £400 in real terms since 2010 while the wealthiest fifth of society have seen their income fall by £800. We recognise the right places to target support through additional measures, including the introduction of the national living wage, worth £2,000 a year, and the increase to the income tax threshold of £1,200.
Justin Tomlinson
I will make some more progress.
These increases will cover disability living allowance, attendance allowance, carer’s allowance, incapacity benefit and personal independence payment. They will all rise by 2.4%, in line with prices, from April 2019.
Neil Gray (Airdrie and Shotts) (SNP)
I thank the Minister for giving way. I appreciate some of the uprating, but we have to note, as key stakeholders in this sector have, that the biggest driver of child poverty that this Government are enforcing is the benefit freeze. With £4.5 billion due to be saved this coming year, why have the Government not brought forward the necessary legislation to scrap the final year of the freeze?
Justin Tomlinson
As I have set out before, as the economy has continued to grow, we have been able to share the proceeds of growth to support some of the most vulnerable in society. That has seen increases to the income tax threshold, which will reach £12,500 this year, taking 4 million of the lowest earners out of paying any income tax at all. We are also seeing significant additional support for those with children. Whereas spending on childcare was £4 billion in 2010, it will be £6 billion by 2020—a 50% increase as part of our doubling of free childcare support, particularly helping lone parents who seek to take advantage of the record employment in all regions.
Alison McGovern
I thank the Minister for giving way again. He knows as well as I do that none of the figures he has just announced add up to the £12 billion of welfare cuts previously announced in this House by George Osborne. By the end of the benefit freeze and the other measures that the Government have introduced, children in poverty in this country will be worse off—is that not right?
Justin Tomlinson
But we know from announcements in the last two Budgets that spending on working-age benefits will be £2 billion higher than it would have been under the legacy benefits. That is why we now see 300,000 fewer children in absolute poverty, as we continue to target support at the most vulnerable in society.
Justin Tomlinson
I am going to make some progress.
In addition, the carer and disability premiums paid with pension credit and working-age benefits, the employment and support allowance support component and the limited capability for work and work-related activity elements of universal credit will increase by 2.4%. Those increases will ensure that our welfare system continues to provide the most support for the people who need it.
In conclusion, in this order the Government propose to spend an extra £3.7 billion in 2019-20 on increasing benefit and pension rates. With this spending, we are upholding our commitment to the country’s pensioners by maintaining the triple lock, helping the poorest pensioners who count on pension credit, ensuring that working people can earn more before their universal credit payment is reduced and providing essential support to disabled people and carers. I commend this order to the House.
Justin Tomlinson
I thank all those from across the House who have taken the time to speak in this debate. As in last week’s estimates day debate, there was a lot of passion about very important issues. Although we do not agree on everything, this is a helpful debate in focusing our minds as we share the proceeds of growth in the coming years to make sure that we are targeting support at those who most need it.
I wish to pick up on a few points raised in this debate. A number of speakers said that we were not supporting those too sick to work. Let me be absolutely clear that the employment and support allowance support group rate will be increased from £37.65 to £38.55, and the severe disability premium will increase from £77.65 to £79.50. The hon. Member for Wirral West (Margaret Greenwood) was spot on when she talked about the impact of unemployment; we could not agree more, which is why we are proud to have delivered record employment in every region. That is in stark contrast to every Labour Government, who have left office with higher unemployment. This was echoed in the speech made by the hon. Member for High Peak (Ruth George), who continues to attack job creation policies, seeking to remove the opportunity for people to fulfil their potential.
Jim McMahon
The Minister must surely know that the reason there are more people in work is that there are more working-age people. In my constituency, unemployment is higher this year than it was last year, and there is still a struggle to get people on long-term unemployment back into the labour market. He must know that, surely.
Justin Tomlinson
What we know is that every region of the UK is seeing more people working. Youth unemployment increased by 45% under the last Labour Government, but it has almost halved under this Conservative Government, and that will continue.
Ruth George
I assume that in claiming that I am attacking policies aimed at job creation, the Minister is referring to the huge cuts in mainstream corporation tax, which I analysed at the Union of Shop, Distributive and Allied Workers when working on some of the major supermarkets. They actually took their corporation tax reduction and refused to even put that amount into wage growth, let alone into jobs. This is not a job creation scheme; it has made profits for shareholders, not for workers.
Justin Tomlinson
It is delivering record employment in every single region. Increased corporation tax receipts are the folly of the hard-left failed economic policies that deliver higher unemployment every single time, which is why voters repeatedly reject failing Labour Governments.
Justin Tomlinson
I will just make some progress.
Many speakers talked about poverty. Income inequality has fallen—it increased under the previous Labour Government. Rates of low income and material deprivation for children and pensioners have never been lower. There are 300,000 fewer children in absolute poverty and 200,000 fewer pensioners in absolute poverty. In the past five years food affordability has almost halved and is well below the EU average.
Debbie Abrahams
According to the Child Poverty Action Group, 100,000 children are in severe poverty as a result of the benefits freeze. Would the Minister like to accept that fact?
Justin Tomlinson
The stats are very clear: there are now 300,000 fewer children in absolute poverty. Where we are in agreement in this debate is that all speakers rightly welcomed the additional £1.7 billion for the universal credit work allowances. We continue to support those who are seeking to enter work, increase their hours or increase their pay.
Overall, this order is about striking the balance between targeting support to those who most need it and what is fair for the taxpayer. Under the previous Labour Government, who increased welfare spending by £84 billion—the equivalent of £3,000 per working household—that was not a fair balance.
Jim McMahon
Can we just take away this artificial divide between taxpayers over here and claimants over there? People who claim benefits also pay tax. They contribute and work hard, and they deserve a better deal than this.
Justin Tomlinson
That is why we are delivering record employment and increasing support for those who most need it, and why we are today announcing the latest sharing of growth with those who most need it, with a £3.7 billion increase. We are maintaining the Government’s commitment to the triple lock for both the basic and full rates of the new state pension; increasing the pension credit standard minimum guarantee by earnings to support the poorest pensioners; increasing the universal credit work allowances so that claimants can earn more before their payments are reduced; and increasing benefits to meet additional disability needs, and carer benefits, in line with prices. I commend this order to the House.
Question put and agreed to.
Resolved,
That the draft Social Security Benefits Up-rating Order 2019, which was laid before this House on 30 January, be approved.
Patrick Grady (Glasgow North) (SNP)
On a point of order, Madam Deputy Speaker. I notice that we now move on to some 18 different remaining orders, some of which are very important and will affect the outcome of Brexit for this country on a whole range of issues, from road traffic to animals, gas, energy and arms and ammunition—all kinds of things. If each of these remaining orders were subject to an individual Division, by my calculations it would take up around four and a half hours of the House’s time, which is quite incredible. I believe, though, that if we get past 10 o’clock, we can have the much more sensible opportunity of voting on these issues using the deferred Division procedure. Can you advise us on what steps we can take to make sure that Members are not unnecessarily detained this evening by multiple complex Divisions, until such a time as this House introduces a more sensible, modern electronic voting system?
Department for Education
Justin Tomlinson Excerpts(5 years, 8 months ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)
It is a pleasure to respond to this debate—a vital discussion on how this Government, and our Department in particular, support people across society. I wish to pay tribute to the hon. Member for High Peak (Ruth George). We have not always agreed on every single issue, but it is clear that she is a tireless campaigner in this area. Her speech was particularly measured. She highlighted some genuine concerns that she has been pushing on in the years since she was elected. She should be proud that, in some of those areas, she has already effected change, and I know that she is an incredibly valuable member of the Work and Pensions Committee. I had the pleasure of joining her for about four weeks. Securing this debate is a tribute to her efforts.
There have been some very good speeches. In the limited time that I have, I will not be able to cover all of them, but I and my ministerial colleagues have taken note of everything that has been said and, where relevant, we will make direct contact.
Last year, the Department supported 20 million people—more than half of the adult population. We spend somewhere in the region of £190 billion, slightly more than a quarter of Government spending, and the equivalent to the GDP of Portugal. We have always been proud to share the proceeds of our growing economy with, often, some of the most vulnerable people in society.
My hon. Friend the Member for Brentwood and Ongar (Alex Burghart) made a powerful point about the impact on workless households and what an enormous difference that work can make. My hon. Friend the Member for Bexhill and Battle (Huw Merriman) said that, probably, the Government’s greatest achievement is our record on employment. Since 2010, the employment rate has increased to a joint record high. Youth unemployment has almost halved; the female unemployment rate is at a record low; and nearly 1 million more disabled people are in work than in 2013.
Last year, wages grew at their fastest rate in a decade at 3.4%. We are going further to support those in work, with the introduction of the national living wage, which is worth £2,000 a year. The changes to the income tax threshold are worth £1,200 a year. We have seen the doubling of free childcare and the extension of childcare cost support through universal credit. Money being spent on childcare support has risen from £4 billion in 2010 to £6 billion today—a 50% increase. However, this jobs miracle is not a given. Our labour market is outperforming many other developed countries: more people have moved into work in the UK since 2010 than in France, Spain, Ireland, the Netherlands, Austria and Norway combined. What a stark contrast that is to the previous Labour Government, and every other Labour Government who have always left office with higher unemployment.
Many of the speeches have understandably focused on universal credit. We are creating a welfare system in which it pays to work. It simplifies a complex legacy benefits system that too often thwarted opportunities to work. I was heartened that my hon. Friend the Member for Bexhill and Battle highlighted the huge amounts of great work done by individual work coaches. One thing that most impresses me when I go on visits to jobcentres is the enthusiasm that work coaches have for universal credit, giving them, for the first time in a generation, the tools to provide personalised and tailored support. For the first time, claimants have a named work coach who helps them navigate the support for housing, training and childcare, leaving up to 50% more time for them to find work. In addition, they get the support of universal support partnerships, which responds in real time. This contrasts with the legacy benefits, which were hugely complex, with six different benefits across three different agencies: Her Majesty’s Revenue and Customs, DWP and local authorities. We saw from our own pieces of casework just how some of the most vulnerable people fell through the system. It is estimated that £2.4 billion of financial support was left unclaimed a year.
Justin Tomlinson
I will not take interventions just yet, as I need to make a bit more progress. A total of 700,000 of some of the most vulnerable claimants have missed out, on average, on £230 a month. These are some of the people where £5 either way makes a real difference. We have removed the 90% tax rate for some, and the hated 16, 24 and 36-hour cliff edges.
However, it is right to say that improvements are needed. Many of the Members who have spoken powerfully today have helped to change universal credit since its inception. There is still much more to do, but we all welcome the additional £4.5 billion-worth of investment into universal credit set out over the last two Budgets, which means that we will be spending £2 billion more on universal credit than under the legacy benefits.
Justin Tomlinson
I will give way shortly.
We have seen changes to advanced payments. We introduced the two-week run-on for housing benefit for existing claimants and, in April 2020, an additional two weeks for ESA, JSA and income support claimants as they migrate over. We have scrapped the seven waiting days. Rightly, the Secretary of State is putting a real focus on looking at alternate payments, whether that is paying direct to the landlord or paying more frequently. We have increased the work allowance by £1,000, worth £630. We have extended the exemption for the minimum income floor for the self-employed. We are continuing to listen to these debates to make further improvements.
Chris Bryant
I have constituents who were housed by Rhondda Housing Association. They were on the old benefits, but because they have been moved by the housing association to new properties, still with the same housing association, they have been moved by the DWP on to universal credit and have to start from the very beginning. The bulk payment system and the payment directly to the housing association means that they have lost out on 11 weeks of housing benefit and, consequently, are suddenly in arrears having done nothing wrong. Will the Minister please make sure that this is put right for my constituents?
Justin Tomlinson
The hon. Gentleman is absolutely right—we have to make the transition as smooth as possible, where possible sharing data and working with support organisations.
That brings me neatly—this is why I was right to take the hon. Gentleman’s intervention at that point—on to the key point. Many of the people who will be in the benefits system are incredibly vulnerable. They do not have the family support—the network—that can help them to deal with life’s challenges as they come towards them. My ministerial colleagues and I work closely with charities, stakeholders, Members from all parties, and the Work and Pensions Committee. We also work with those with genuine, real-life experience, because they will not only raise, with their experiences, what needs to be improved, but can help with the training and guidance of our frontline staff.
Maria Eagle
I know this is a small point in the overall scheme of universal credit, but I mentioned my constituent Antony Hamilton and the issue he has in doing his A-levels while being a bit older because of his special educational needs. I would be grateful if the Minister could confirm whether anything could be done to help Antony.
Justin Tomlinson
The hon. Lady made a powerful point about Antony, and the relevant Minister will contact her to discuss it further.
The key for us is partnership working. On domestic abuse, we are rightly working with Women’s Aid and Refuge to help with training and guidance, and to strengthen our ability to identify, refer and support. We are working with organisations such as Barnardo’s and the Children’s Society to strengthen opportunities for care leavers. Ex-offenders are working closely with the Ministry of Justice to make sure that their universal credit claim is in place before they leave prison so that no people are falling between the gaps. On homelessness and rough sleeping, we are working with a number of organisations. Only today, Crisis said that over the past two years the Government have been showing drive and energy.
Justin Tomlinson
I am sorry but I do not have time to give way. The duty to refer change that was brought in in October will be addressing the points that the right hon. Gentleman made.
This party is committed to supporting the most vulnerable. Household incomes have never been higher. Income inequality has fallen. Risks of low income and material deprivation for children and pensioners have never been lower. The incomes of the poorest fifth are up by £400 in real terms, with 300,000 fewer children in absolute poverty. We are now spending £50 billion a year in supporting those with disabilities and long-term health conditions—£4 billion higher than in 2010. We, as a Government, are determined to help the most vulnerable. This is what drives me and many Members across the House who are here today. This Government are determined to get it right for the people who need the most support.
Work and Pensions
Justin Tomlinson Excerpts(5 years, 9 months ago)
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Justin Tomlinson
This Government are not only delivering record employment in all regions of the UK—it is accepted that work is the best route out of poverty—but targeting support at the most vulnerable in society, with increases in the national living wage, which will see the fastest pay rise in the last 20 years, changes to the income tax threshold and a doubling of free childcare.
[Official Report, 11 February 2019, Vol. 654, c. 606.]
Letter of correction from the Under-Secretary of State for Work and Pensions (Justin Tomlinson):
An error has been identified in my response.
The correct response should have been:
Justin Tomlinson
This Government have not only delivered record employment in all regions of the UK since 2010—it is accepted that work is the best route out of poverty—but are targeting support at the most vulnerable in society, with increases in the national living wage, which will see the fastest pay rise in the last 20 years, changes to the income tax threshold and a doubling of free childcare.
Oral Answers to Questions
Justin Tomlinson Excerpts(5 years, 9 months ago)
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Will Quince (Colchester) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)
Building on recent announcements, I have just held two roundtables with care leavers and care leaver charities. The next step is to meet employers to explore how we can further improve job opportunities for care leavers.
James Cleverly
I thank my hon. Friend for that answer. Prior to universal credit, under the legacy system, care leavers and other vulnerable jobseekers were just left to sign on but now, with tailored support and work coaches, that has changed. Now that youth unemployment is at record low levels, what is the Minister’s Department doing to make sure that work coaches are helping care leavers to find not just a job but the right job for them?
Justin Tomlinson
I pay tribute to my hon. Friend, who has championed this area for a number of years, particularly during his time under the former Mayor of London as his youth ambassador. We recognise that the key is to build a personalised and positive relationship between the work coach and the care leaver. We have been working very closely with the Children’s Society and Barnardo’s to improve both the guidance and the training for all our frontline work coaches.
Will Quince
Care leavers are one of the groups at highest risk of homelessness. What support does the Department offer to help care leavers and vulnerable claimants to secure housing?
Justin Tomlinson
Last Thursday, my hon. Friend held a powerful debate in Westminster Hall covering some of this area. The Government take the issue very seriously. We are providing additional funding for 47 local authorities that have the highest numbers of care leavers at risk of rough sleeping. That funding will allow them to appoint specialist personnel advisers to provide additional support to small caseloads of those at risk. I am also keen to look at opportunities to open up the jobcentres to care leavers six months before their 18th birthday in order to look at all the different opportunities and support available to them.
Ruth Cadbury (Brentford and Isleworth) (Lab)
Given that care leavers are, by definition, vulnerable and have a host of challenges, including in housing, getting into work, and skills and training, what discussions is the DWP having with local authorities so that rather than drip-dripping a few special projects the Government actually address the chronic underfunding of local government that has let care leavers down, among many others?
Justin Tomlinson
Our whole strategy of supporting care leavers, which was set out as part of the care leaver covenant, is about closer partnership working with not only the Department for Education but local authorities, to ensure that there is consistent support across the board. As I said in my previous answer, I want to start that earlier, giving young care leavers the maximum time to prepare for the transition as they reach 18.
Steve McCabe (Birmingham, Selly Oak) (Lab)
The Government deserve some credit for the care leaver covenant. What specific joint work is being undertaken with the Children and Families Minister the hon. Member for Stratford-on-Avon (Nadhim Zahawi), to ensure that every young person leaving local authority care leaves with a specific offer of a job, apprenticeship or further training? Have the Government considered making that a legal obligation?
Justin Tomlinson
I thank the hon. Gentleman; I know that he has raised similar issues before. It is right for this work to be joined up and consistent. At the moment, in the DWP, we look at this 28 days before care leavers are due to start UC. As I said, I think that that should be brought forward to six months, with advice and training on the different opportunities that are available. It is vital that all groups work in partnership. They have supported all the roundtables that I have held and I will continue to work closely with them.
Dr Rupa Huq (Ealing Central and Acton) (Lab)
The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)
There is clear evidence that work offers people the best opportunity to get out of poverty. A working-age adult living in a household where every adult is working is about six times less likely to be in relative poverty than one living in a household where nobody works.
Louise Haigh
Research by the Joseph Rowntree Foundation shows that the real-terms cut in social security is the single biggest driver of in-work poverty, leaving those struggling to make ends meet on poverty pay losing hundreds of pounds a year. If the Secretary of State is looking forward to the benefits cut not being extended, as she told Sky News, why do the Government not end it now, rather than wait to review it in 2020?
Justin Tomlinson
This Government are not only delivering record employment in all regions of the UK—it is accepted that work is the best route out of poverty—but targeting support at the most vulnerable in society, with increases in the national living wage, which will see the fastest pay rise in the last 20 years, changes to the income tax threshold and a doubling of free childcare.[Official Report, 14 February 2019, Vol. 654, c. 9MC.]
Dr Huq
Crash-era debt was owed to commercial lenders and stemmed from lifestyle desires, but Turn2us reports that the bulk of its 9,000 users in Ealing are in-work adults who are struggling to meet the bare basics—their debts are to council housing departments, energy providers and water companies. If the Government will not unfreeze the benefits cap now and end the scandal of zero-hours contracts, what are they doing about that worrying trend, noted by the London School of Economics, the National Audit Office and Citizens Advice?
Justin Tomlinson
As we know, there are 1 million fewer people and 300,000 fewer children in absolute poverty. The hon. Lady raised that theme at the last DWP oral questions, when she set out the distressing case of a claimant who she claimed was left with just £10 over Christmas because her payment was due on Christmas day. We looked into that case and I took a personal interest in it. The claimant actually received their full entitlement before Christmas, as well as interim support for childcare because they had been able to secure work. I know that the hon. Lady would want everybody in the House to be aware of that.
Mr Speaker
That is a testament to the effectiveness of repetition. As I have often had cause to observe—I say this as much for the benefit of those observing our proceedings as for Members—repetition is not a novel phenomenon in the House of Commons.
Jack Dromey (Birmingham, Erdington) (Lab)
That more are in work is welcome. That one in eight are the working poor, with working parents struggling to clothe and feed their children, is shameful. Does the Secretary of State recognise that working poverty consigns millions to a hand-to-mouth existence and, because people fall beneath the threshold for auto-enrolment, working poverty is all too often followed by a retirement in poverty? That cannot be right.
Justin Tomlinson
Auto-enrolment is a success, with 10 million new savers, and we intend to lower the starting age from 22 to 18 and remove the lower earnings limit.
Matt Western (Warwick and Leamington) (Lab)
Chris Green (Bolton West) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)
I am sure that it was a fantastic interview, which we will all be looking to hear in the archives online. As set out in the earlier questions, we are doing a huge amount to support care leavers. I am very grateful for the support of charities such as the Children’s Society and Barnardo’s, who are helping to shape that. Only last week, I met a group of care leavers from the Big House charity in London, who were able to give me their personal wish list of things that we can do. We will continue to work with care leavers, charities and support organisations so that they can have the maximum opportunities, which many take for granted.
Mr Speaker
It is always pleasing to see a happy Member. The hon. Member for Bishop Auckland (Helen Goodman) is convulsed with mirth. She is in a state of almost uncontrollable hysteria. Well, I hope she is very happy. I do not know what it is that has amused her, but it is good to know that she is a happy spirit in the Chamber.
David Duguid (Banff and Buchan) (Con)
Additional cold weather payments are paid over the winter months when average ambient temperatures fall below zero degrees for a period of seven days. It is a welcome measure, particularly in Scotland, but may I ask my hon. Friend, on behalf of my constituents around the Banff and Buchan coast, if wind chill factor could be taken into consideration in any future review?
Justin Tomlinson
My hon. Friend has been campaigning hard on this issue, which is important to his constituents, and, following the fantastic private Member’s Bill introduced by the hon. Member for Arfon (Hywel Williams), we have committed to carrying out a full review, working with the Met Office, so that we can get more detailed assessments of where cold weather payments are needed, using technology such as satellites, technology on ships, buoys, and so on.
Mohammad Yasin (Bedford) (Lab)
Widowed Parent’s Allowance
Justin Tomlinson Excerpts(5 years, 10 months ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)
It is a pleasure to serve under your chairmanship, Mrs Moon. I pay tribute to the hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts) who is a passionate advocate of this issue, and I thank her for giving me advance notice of the topics she intended to cover so that I could consider seriously the points raised. She gave an impassioned interview on BBC Radio Wales today, and her work in this area is a credit to the campaign she is championing. I also thank other Members who have contributed to this short but important debate.
Bereavement is one of the toughest experiences that people face, particularly with the immediate upheaval. I know that from first-hand experience because I lost my father at an early age. My parents ran their own small business and—this is a sign of times gone by—it was predominantly in my father’s name. At the point when grieving should have been the natural process, my mother was required to go back into work and fight the banks to try to keep a roof over our heads, and I was back in school the following lunchtime.
The Government’s focus is very much on appropriate and immediate support, and that has been reflected in some of the changes we have made. That is an important focus for the Government, and we spend £464 million a year on various forms of support for those who have been bereaved. Recent changes mean that over the next two years we expect to spend an additional £40 million. I recognise that the thrust of this debate is to encourage and push for further changes, particularly for children, and we have demonstrated a willingness to do that where appropriate.
Changes to the bereavement system will cost an additional £40 million over those first two years—something we all welcome. As a principle, such support will be easier to claim, and it will provide the immediate support that was very acute on the list of asks in the 2011 consultation—the need for help in those early months is paramount. Such support is now paid in addition to other household income, and it is not taxed, means-tested or applied to the benefit cap. After we listened during the consultation we widened the support available to include anyone of working age, and younger spouses and civil partners without children will now get support. It also removes the potential trap that stops people being able to move on because if they found a new partner they would lose any support, even if they are still in need of it.
Having listened to the consultation responses we increased the initial lump sum for those with children by an extra £1,500, to recognise that additional need. That support is in addition to the initial sum of £2,500 for those without children, and £3,500 for those with children, and therefore provides 18 months of support, rather than 12. Those without children receive £100 a month, and those with children get £350 a month, for 18 months. Overall the changes not only reflect that immediate need for support, but target those on the lowest incomes and those most in need, who will receive cash on top of what is already provided.
Liz Saville Roberts
I appreciate the Minister informing us of that, but he has not said whether the Government intend to move on cohabiting couples, and whether—five months down the road—they intend to respond to the Supreme Court judgment, and if so, when. Forgive me, but I feel it is my duty, given the title of the debate, to press those points.
Justin Tomlinson
We are only five minutes into my response—fear not, there is more to come, and it will cover exactly those points.
After the introduction of the bereavement support payment, a broader point was raised about how and when we will evaluate the effectiveness of that new system. We recognise that, as with many Government changes, we need to listen, learn and act, and that is separate from any legal judgment. We intend to assess the situation once sufficient evidence is available, and we must have enough data to examine fully the continued circumstances of the bereaved once their benefit payments come to an end. We will analyse that information, which will include looking at the characteristics of those in receipt of benefits, such as age, gender and other sources of income, as well as how bereavement support payments interact with other benefits. We will also look at outcomes for recipients once bereavement support payments come to an end. At this stage, we do not have a specific timescale for that evaluation, as we must ensure enough time to allow other forms of support fully to bed in.
Let me turn to the thrust of the hon. Lady’s intervention and the principle of cohabitees. The question of opening up bereavement payments to cohabitees was debated and decided against in Parliament during the passage of the Pensions Act 2014, which legislated for the introduction of bereavement support payments in the UK. Restricting bereavement payments to claimants who are in a legal union with the deceased has been a feature of bereavement support since the 1920s. That was based on the outdated assumption that someone would rely solely on their spouse for income and would never work themselves. The concept of a legal union is a constant feature of contributory benefit schemes. It promotes institutions of marriage and civil partnerships by conferring eligibility to state benefits derived from another person’s national insurance contributions only on the spouse or civil partner of the person who made the contributions.
Cohabitation is not a straightforward concept and can sometimes be open to interpretation; unlike a legal union, it is not a black-and-white issue. That is partly why it is taking time for us to reflect very carefully. An extension to cohabitees could also trigger multiple claims on behalf of the same deceased person—for example, if the deceased was legally married to one person but cohabiting with another. That has the potential to lead to delays and additional burdens to claimants that are likely to cause distress at a time of bereavement. It is an important factor. I am not saying that the issue is insurmountable, but that is why this is a complex issue to reflect on.
Liz Saville Roberts
I am sure the Minister needs no reminding that the UK Government ratified the UN convention on the rights of the child in 1991, and I am sure that he would therefore share my concern that if discrimination against children is being facilitated on the grounds that it is bureaucratically too difficult to resolve the issue, that is not making the interests of the child a priority.
Justin Tomlinson
I thank the hon. Lady for her invention and have two points to make in response. I am not necessarily questioning that. What I am demonstrating is that we have acknowledged that we need to respond—we need to act. This is not a black-and-white issue, so we cannot do that within 24 hours. In effect, there are two asks. One is that people want me to do something, and to do something quickly; and that is what I am—
Justin Tomlinson
I am coming to the issue raised by the hon. Lady. The second point is that we do recognise the principle in respect of children, which is why, under the bereavement support payment, there is additional money for those with children; that principle is there.
Justin Tomlinson
Let me cover a bit more and I will happily take interventions, because we are okay for time.
Last year, the Supreme Court declared that the primary legislation that governs widowed parent’s allowance is incompatible with the principles of human rights law, as it
“precludes any entitlement to widowed parent’s allowance by a surviving unmarried partner”.
The courts cannot strike down primary legislation; only Parliament can change primary legislation. Therefore, that ruling does not change the current eligibility rules for receiving bereavement benefits. I am keen to take action, however, in the light of the Supreme Court ruling. I made that very clear in my statement on the Floor of the House, and since then, to help to shape the response—this debate will also be taken into consideration—I have met a number of MPs and campaigners personally. That has been an important part of the process.
However, the issues are complex and there is no quick fix. As Lady Hale herself noted in her judgment:
“It does not follow that the operation of the exclusion of all unmarried couples will always be incompatible. It is not easy to imagine all the possible permutations of parentage which might result in an entitlement to widowed parent’s allowance.”
Crucially, that is not a clear steer—a clear steer equals a much swifter response from us—and we have to take that into consideration; Lady Hale herself acknowledged that. That does not mean that we are pushing this into the long grass. As I confirmed on the Floor of the House and I am hoping to convey here, we are taking it very seriously. There is extensive and comprehensive work to look into it to ensure that we get it right.
To go back to the earlier point, we do not wish to unintentionally cause additional stress where there could be competing people who feel, under the new rules—new potential rules—that they would have the claim. Each in their own right would feel that it should be them; and at a time of bereavement the last thing we want to do is cause undue stress.
Liz Saville Roberts
I remind the Minister that virtually every other European state treats the children as eligible, in which instance the legality and licence of the relationship between the parents is inconsequential. I wonder whether the Minister would move to support such a principle, but none the less I would greatly appreciate some sense of the timeframe. I understand his point that the matter is complex and thus deserves a thorough response, but I would press him to give an indication of when he is likely to come back.
Justin Tomlinson
In terms of the way other European countries do this, that is part of our work, because we are looking at what has worked, what the potential unintended consequences are and what can be done to mediate that. That is shaping much of the work. I absolutely understand why the hon. Lady would love me to be able to give a specific timeframe, but I cannot do so, other than to say that it is an absolute priority for us to do this and to do it thoroughly and properly and to avoid unintended consequences. We absolutely recognise the importance of this.
Patricia Gibson
I am gratified by what I think the Minister said, which is that eligibility based on marital status cannot be determined purely on the basis of convenience. I am glad that he seems to have said that, but like the hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts), I ask him to assure the House right now that the children will be at the heart of any way forward that the Government embark on.
Justin Tomlinson
Many of the things that we do as a Government rightly recognise the importance of children. As the state, we have a duty of care to ensure that all children, regardless of background and circumstances, have the opportunity to unlock their full potential. Whichever political side they are on, every individual Member would echo that, in their own terms.
As I said, we have recognised the importance of the hearing. We are keen to do this thoroughly. We are taking it very seriously. We wish to do it as swiftly as possible, but it has to be done absolutely right. Let me give further reassurance. Although there is no one simple or obvious solution following the declaration of incompatibility, the officials are working very carefully, and ultimately I will return with potential solutions. This must go through the House’s legislative process, so all Members will have further opportunities to shape what we then believe would be the right conclusion. We are working very closely with our counterparts in Northern Ireland, recognising that the specific case was from there. But this must be done very thoroughly.
In conclusion, we are carefully considering the McLaughlin court ruling. We recognise that we currently have incompatible law on the statute books, and we are actively considering all options. With the introduction of the bereavement support payment, we have demonstrated that we will seek to make sensible and positive changes to target support at those most in need.
It is very clear that the hon. Members present feel strongly that the emphasis has to be on the children; I have heard that loud and clear. As I said, it has always been our intention to assess the impact of the bereavement support payment, which we will do once we have sufficient data. We are committed to supporting the bereaved and ensuring that they receive the right support at a difficult time. I echo my tribute to the hon. Members who care so passionately about this subject. It is a real priority for the Government and for me, and as we make progress I will be very happy to meet again, individually, those who are interested, in order to update them on the work. I want to be inclusive, because we all want the right outcomes. It is just that the issue is complex. There was not a clear steer, which meant that there could not be a quick fix, but the issue is a genuine, real priority for us.
Question put and agreed to.
Department for Work and Pensions: Members’ Representations
Justin Tomlinson Excerpts(5 years, 10 months ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)
It is a pleasure to serve under your chairmanship, Sir David. I pay genuine tribute to the hon. Member for Edmonton (Kate Osamor); although obviously I do not agree with all the points she made, it is clear from her time as an MP and formerly as a councillor, and from the issues she raised in her speech, that she is a passionate campaigner on the subject, particularly for vulnerable claimants in her constituency. I am not the Minister ultimately responsible for universal credit, which was the predominant focus of her speech, but part of my portfolio is to represent vulnerable claimants who go through the universal credit process, so I recognise some of the issues that she pointed up.
I will talk about some of the specific asks that have been addressed and on which there is much agreement, but first it is fair to remind hon. Members that there was cross-party support for the principle of universal credit: to offer personalised, tailored support. Stakeholders broadly support that principle. That does not mean that all is right, but we must not forget that legacy benefits were not the panacea of a utopian state in which everything was great. They were incredibly complicated, with six different benefits and three different agencies, and with the involvement of the DWP, Her Majesty’s Revenue and Customs, and local authorities. Frankly, anyone navigating them had to be a nuclear physicist, whether they were claimants, MPs or MPs’ staff members trying to support predominantly vulnerable claimants.
The figures bear out that point. We typically saw 700,000 claimants a year missing out on £2.4 billion of benefit support—about £280 each per month—that we had all voted to give them because we recognised that it was the right thing to do for those predominantly vulnerable claimants. There was a 90% tax rate for some claimants, and there were well-known problems with the cliff edges at 16, 24 and 30 hours. In our casework, we saw people who wanted to do the right thing and were trying to improve their opportunities in life, but the system was working against them. Universal credit was therefore introduced, as I said, broadly with cross-party support. It is right that we have looked at it all the way through as a test-and-learn, and that is why it is important that the hon. Member for Edmonton has raised her direct experiences and those of her office.
We have already made some significant improvements. We, rightly, made the changes to advance payments. Those payments were always there, but people had to know to ask and, unsurprisingly, very few people did. They are now, rightly, automatically part of the initial interview with the work coach and, unsurprisingly, the take-up rates of advance payments have significantly improved.
Initially, those payments were repaid over six months. That was, rightly, changed to 12 months, and then to 16 months. The repayment rate has also been reduced and we have strengthened the discretion to take into account particular hardships, to make sure we are not compounding a problem.
Those who are transferring over from legacy benefits, such as housing benefit, will get an additional two weeks-worth of housing benefit money, with no strings attached. That is additional money. As the regulations come forward, there will also be an additional two weeks for those on employment and support allowance, jobseeker’s allowance or income support, again with no strings attached. That is typically worth £237 on housing benefit and £200 on ESA, JSA or IS. Opposition Members often seek to oppose what the Government do, but this is something they should support.
We have scrapped the seven-day waiting period and strengthened the alternative payment arrangements, on housing costs direct to the landlord, for example. If a legacy claimant already had that provision, there will now be a presumption that we should have the conversation to see if that was the right arrangement. We have also looked at the frequency of payments, for those who have been used to a more frequent payment and might struggle with monthly payments.
There is the extra work allowance. We have made changes to the exemptions for the minimum income floor for self-employed claimants, and there are additional protections for those on severe disability premiums. But there is still more to do.
Laura Pidcock (North West Durham) (Lab)
The advance payments are still a loan, which is a crucial point that my hon. Friend the Member for Edmonton (Kate Osamor) made. My question is this, however: those people who are being managed through their migration to universal credit will have protections, but those people who have naturally migrated—often, but not always, through change of circumstances—will not have those protections. What is the justification for that? Many of my constituents are worse off.
Justin Tomlinson
As the hon. Lady said, that is to do with change of circumstances. The transitional arrangements were put in place for those who were transferring as part of natural migration, and we have, rightly, confirmed that that number will be ring-fenced to just 10,000 this year, so we can have a real deep dive to look at the levels of support that are needed. I will come back to that in a moment.
On the wider point about why transitional arrangements were not put in, that is because it was recognised that there would be a change of circumstances. We are seeing that a lot of people benefit, and some go the other way, but overall we are now spending an additional £2 billion on the current benefits compared with the legacy benefits, before the extra money goes in. That is more money going to the people who need that help.
Let me turn to points where I think there is agreement. We talk about office casework. We all have busy offices and have to prioritise casework and supporting our constituencies. I am very proud to have been rated third out of 650 on theyworkforyou.com on helping constituents. I absolutely understand the importance of casework. One of my staff specialises in this area, has visited the jobcentre with me and talked to the partnership manager. We all have a partnership manager, who is the point of contact for escalating cases.
I know the hon. Member for Edmonton was due to visit the jobcentre in December 2017, and that that visit was cancelled. I encourage her and her staff to take part in such a visit. It is really important, and they are there to help. Where we have specific cases that do not seem right, there is an ability to escalate; MPs can talk to the senior people in the respective jobcentres and they can help take that forward.
I have a lot of sympathy with the point about digital by default. The principle was to mirror the world of work, because most workplaces now expect staff to have a reasonable level of digital engagement. However, that is not the case for all people. Not all people on universal credit will end up in work—even if that is their ultimate aim, not everybody is going to, and not everybody will do that overnight. We need to improve communication in order to advise about alternatives; claimants can access support via the telephone, face to face, or through home visits. We need to do better at promoting that and it is certainly something that I will continue to push on.
We also need to look at the issue of consent. One of the complications of the General Data Protection Regulation is that we now need implicit consent. I regularly meet stakeholders, particularly housing associations and local authorities, who say, “We represent many of your vulnerable claimants, and we want to help. We have the resource to help, and we have teams, but unless we know that one of the people that we are working with is about to be migrated or has come on to universal credit or is accessing an advance payment, how can we help?” We have got to find a way, and I think that should be done in the same way as with advance payments—through making asking for implicit consent an automatic part of the initial interview, in order to get those support organisations working with claimants. There is a resource there that wants to support claimants and we should be doing everything we can to match them up.
We made a significant announcement on putting citizens’ advice into every single jobcentre throughout the country. It will be an independent organisation, and we will cover the costs. That will start in April, and I welcome it. As part of the test-and-learn with the 10,000, I want to look closely at exactly how much time is available to vulnerable claimants. Is it enough or are there other things that could be done? I think we should look very carefully at that.
Janet Daby
Advance payments still take five days. Does the Minister agree that that is just too long? What are people expected to do during that period?
Justin Tomlinson
Actually, if somebody is in particular hardship, they can get access to money within a couple of hours, so that is an option. I am not sure how well that has been communicated, but that rule is in place for those who genuinely need it.
We should continue to work with stakeholders. I am very receptive to meeting stakeholders. Throughout the week I meet different groups that will often come and challenge the Government, and hold our feet to the coals. It is right for them to do that, because they are identifying issues. There are a number of cases where a stakeholder with particular expertise has then helped to rewrite and deliver our training. For example, on the very important issue of domestic abuse, I have been working very closely with Women’s Aid, Refuge and Mankind. They went over all the training documents and sat through a typical claimant’s experience to identify whether things are in place. We are looking to bring further improvements based on their expertise.
Kate Osamor
I just wanted to put on the record that I was never a councillor.
Kate Osamor
Also, on my visit to the jobcentre, there was a threat of closure and at the time, the visit got dropped, but it was not because I did not want to go there.
Will the Minister answer my question about whether a helpline will be put in place?
Justin Tomlinson
I am sorry that the hon. Lady was not a councillor. I was a councillor before, and I enjoyed it very much. I am sorry that she missed out on that opportunity. I did not pass judgment on the visit—I just said that it would be good if she could make that visit. As a Back-Bench Member, I personally benefited from such a visit.
I brought in a national helpline on personal independence payments when I was a disability Minister. The issue here is a little different. There were national, one-size-fits-all rules on PIP. Universal credit is personalised and tailored, and people need to speak, in effect, to the work coach. What is in place is a partnership manager in every single jobcentre who should be the MP’s point of contact. By coincidence, we recognised earlier this week that we suspect that not all MPs know who their partnership manager is. The Minister for Employment responsible for UC has committed to share that information and to make sure that we all have the details of those points of contact, because they are there to help.
Finally, to pick up on a few points, income inequality has fallen under this Government, having risen under the last Labour Government. The average income of the poorest fifth in this country is now up by £400 a year in real terms, while that of the richest fifth is down by £800. There are 1 million fewer people in absolute poverty, including 300,000 children. There is still much more to do. I pay tribute to the hon. Member for Edmonton and her wealth of experience; she gave a very constructive speech. I hope she can see that many of the points raised are ones that we are actively looking to address, and that is absolutely vital for all claimants and, in particular, for vulnerable claimants. I thank you, Sir David, for the opportunity to set out what the Government are doing.
Question put and agreed to.
UN Special Rapporteur on Extreme Poverty and Human Rights
Justin Tomlinson Excerpts(5 years, 10 months ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)
I pay tribute to the hon. Member for South Shields (Mrs Lewell-Buck), who has done a huge amount of work in this area over a number of years. She brings a huge amount of experience to many of the points she has raised.
This report covers not only the Department for Work and Pensions but the Ministry of Housing, Communities and Local Government, the Treasury and the Department for Exiting the European Union, but I will be speaking predominantly from the perspective of the DWP. At this stage it is only an interim report, and we are committed to considering Professor Alston’s views and opinions very carefully.
I recognise that hon. Members would now expect me to disagree with the majority of the report as it stands, and there are certainly things with which we do not agree, but I support the important role of the UN special rapporteur on extreme poverty and human rights. The former Secretary of State for Work and Pensions, my right hon. Friend the Member for Tatton (Ms McVey), other departmental Ministers, our respective teams and I were fully engaged with the process. We met Professor Alston, we supported the visits and the engagement throughout the process and, as I said, we will give very serious consideration to his views and opinions.
As a Minister, I am not precious. Government should be challenged and held to account, whether by the UN special rapporteur, by stakeholders or by the fantastic work of the various Select Committees. All Governments of all political persuasions, since the dawn of time, have had challenging reports, and it is rare we get a report that says, “Fantastic. You are single-handedly doing everything perfectly right.” Such reports are an important part of our democratic process, and even the most challenging and most critical reports ultimately shape future decisions.
Justin Tomlinson
I will give way. I will not take too many interventions because I have a lot to cover.
Mrs Lewell-Buck
I thank the Minister for giving way. I am a little confused, because the Prime Minister and the Secretary of State for Work and Pensions have both dismissed the findings and do not agree with the report. Has there been a change of thinking since they made those comments?
Justin Tomlinson
What I am saying is that we will consider the report seriously. We obviously do not agree with all the points, but Professor Alston has highlighted some important views and opinions to which we should rightly be looking to respond.
One challenge I make to Professor Alston ahead of his final report is that, at two of the visits, the visits to Newcastle and Clacton, he had the opportunity to meet frontline staff and volunteers. At the recent Women and Equalities questions, my hon. Friend the Member for Clacton (Giles Watling) expressed a huge amount of disappointment from those frontline staff and volunteers, who felt that their fantastic work was not recognised—it had just one line. It is right that the report holds the Government’s feet and Ministers’ feet to the coals, but we would all recognise that there are people doing a fantastic job, both the paid formal staff and the volunteers, and I hope Professor Alston will reflect on that.
As we consider Professor Alston’s views and findings, we must remember that this is a snapshot. On many of the issues raised, we are rightly already taking action, acknowledging that there were issues and that they needed to be dealt with. That is either through the additional money secured in recent Budgets, or through our ongoing and crucial work with stakeholders, with their particular expertise. As I have said, while this covers many Departments, I will focus on where the DWP has the lion’s share of the involvement.
Understandably, UC formed a significant part of both the report and the speech we have just heard. To be absolutely clear, this was never a financial thing. We are looking to spend an additional £2 billion compared with the legacy benefits, and rightly so. UC offers the opportunity for personalised, tailored support dealing with housing, training and childcare, and giving claimants who are in a position to seek work an additional 50% more time to find work.
Although there are still challenges and there is much more work to do, if Members visit jobcentres, they will find that the frontline staff do recognise that UC is significantly better than the complex legacy benefits. They were six benefits across three agencies—HMRC, the DWP and local authorities—and, frankly, people had to be nuclear physicists to navigate them. We all know from our own constituency casework how complex it was to unravel the situation.
Jim Shannon
My constituency office is about 100 yards from the social security office—it is as close as that—and I have had numerous distressed people come from the social security office to my office looking for advice. I have written perhaps not to the Minister directly but to his Department to outline some of the changes that we feel should be made. In the light of those things, perhaps more needs to be done in the social security office to address the issues early on.
Justin Tomlinson
I thank the hon. Gentleman for his intervention. I am coming on to those. UC dealt with the fact that, for some, there was in effect a 90% tax rate. The well-documented 16, 24 and 30-hour cliff edges were significant barriers for people. It was so confusing and complex that £2.4 billion-worth, we believe, of claims went untaken each year across 700,000 claimants, who were some of the most vulnerable people. My role in the DWP is to represent vulnerable people going through the benefits system and it was often those people who were missing out on money because they were simply unaware that they were entitled to the support that we rightly wanted them to have.
Justin Tomlinson
Let me make a bit of progress and I will give way if I have time. The hon. Member for South Shields has raised some important questions and I want to try to cover as many as I can in the limited time. If I can, I will come back to the hon. Lady.
There have already been much needed improvements, partly through the additional £4.5 billion cash boost that has been secured in recent Budgets. There are the changes to advance payments, particularly to make that a part of the discussion in the initial conversation. We have changed repayments from six months to 12 months to 16 months and the rate at which they are done. That is something that we will continue to review. There is the additional, non-repayable two weeks’ housing benefit, worth up to £237, and the recent announcement of an additional two weeks of ESA, JSA or income support, worth up to £200. We have scrapped the seven days’ waiting. There are the alternative payments—direct to landlords—on housing, and more frequent payments where we feel that will help. There is the additional £1,000 work allowance, worth £630, which alone came to £1.7 billion. There is the 12-month exemption from the minimum income floor for the self-employed, and there is the increase in the severe disability premium from £158 to £326.
However, there are areas where we still need to do further work. The hon. Member for South Shields talked about digital by default. I think we do need to look at that. We have alternatives in place, but we also need to be more proactive in recognising those who would need that support. We have to identify vulnerable claimants and a major step was to put in place a formal arrangement—I championed this—with Citizens Advice. It will remain independent of us, it is widely respected and it is best placed to give support, particularly to vulnerable claimants, not just on the digital side, if that is needed, but general support as people navigate the benefits to which they should be entitled.
Building on that, we have to make sure that stakeholders are absolutely key and at the heart of everything we do in training our frontline staff and providing support for claimants. For example, a month before Christmas, I was working very closely with Women’s Aid, Refuge and ManKind, meeting three or four times, so that they could do a root and branch review of the training we do to help to identify potential victims of domestic abuse, update our training manuals and guidance, feed in the feedback they receive from their supporters, and look at the best ways to identify potential victims, refer them to the maximum number of local and national support organisations, and work on the level of support we can offer. That is a principle I would like to see formalised, so that it does not just happen because it is a topical issue; it is a given going forward and we look to do that in many areas.
A lot was said about measures of poverty and what the reality is out there. What we do know is that there are 1 million fewer people in absolute poverty—a record low—including 300,000 children. On the different measures of relative and absolute poverty before and after housing, all are no higher than in 2010 and three are now lower. The average income of the poorest fifth in society under our Government has increased by £400 in real terms.
Mrs Lewell-Buck
Does the Minister agree with Professor Alston’s assessment that, because the Government use four different measures of poverty, they can essentially say what they want about the figures? The reality is that there are 14 million people living in poverty in the UK.
Justin Tomlinson
The hon. Lady has just used one of the statistics. There is cross-party work on looking at alternatives. We are very interested to see if there is a way we can find statistics that we can all agree on. I think that is one area on which we do all agree.
The richest fifth are £800 less well-off under this Government. We are rightly targeting support at those who are most in need. Household incomes have never been higher and income inequality has fallen, having risen under the last Labour Government.
Many Members referred to food banks. Food affordability, the ability to afford a meal, has almost halved in the last five years. It is down to 5.4%. That is 2.5% lower than the EU average. There is still more to do in that area, which is why I am committed to working a lot more closely with the food bank network in this country. For a variety of reasons, some people may be going to food banks who should be receiving formal support. I want to make it as easy as possible to identify, to refer them and to get them back in to the system, so they can receive the full support.
Justin Tomlinson
The hon. Lady is shaking her head. I do not understand why anybody would not want to do everything within their power to identify vulnerable people in society and give them the support we want to give to them. The very heart of the question raised by the hon. Member for South Shields is: is there a will from the Government? There absolutely is—from me and right through the Government.
We are going to keep on working with all stakeholders and partnership organisations to ensure that those in most need in society receive the support that they should. We are also looking at homelessness. Rightly, we have put in an additional £1.2 billion, building on the principles of the duty to refer. We have some exciting pilots: the Newcastle trailblazer; partnership working led by Crisis, which has had some really positive findings; and the Housing First initiatives in Manchester, Liverpool and the west midlands. Again, they are on the principles of identifying, referring and supporting. There are exciting developments from those pilots and they will go to the heart of future roll-out support.
The key for me, with my individual role in the Department, is sharpening up the tailored support, whether for care leavers, ex-offenders or the parental conflict programme, and ensuring that those who need the extra support that many of us in our lives have been able to take for granted are given it to unlock everybody’s potential. Some of the areas I felt were missing from the report related to education attainment to unlock people’s potential. I went to a school that was at the bottom of the league tables and two of my best friends went to prison. It is absolutely key that we ensure that, regardless of people’s background, they are given the maximum opportunity to succeed. I wholeheartedly support the significant improvements we are making in education.
Thelma Walker
As a former headteacher, I talk to a lot of my former colleagues. Many of them, of a morning, are washing children’s clothes and giving them breakfast. They are having to give children extra lunch because they are starving. Does the Minister agree that that is totally unnecessary and inappropriate? We should be caring for the most vulnerable in our society.
Justin Tomlinson
That is why it is absolutely right that we have targeted support at the poorest in society, so the poorest fifth are now £400 better off in real terms than they were under the Labour Government. We will continue to do that work.
By prioritising sound financial management and a strong, growing economy, we have been able to deliver record employment in every region of the country. Wages are rising the fastest in a decade. We introduced the national living wage, income tax threshold changes and universal credit childcare up to 85% of costs, which is worth up to £15,000 to parents with two or more children, and we doubled free childcare. Those are all priorities for this Government, because we recognise that everybody should be supported, regardless of their background. By treating people as individuals in a simplified system that can give tailored, personalised support, we can unlock their potential, regardless of their unique challenges and opportunities.
As I said, we have to take many of the findings and opinions seriously. We are doing a huge amount of work, and we will continue to do so. I thank the hon. Member for South Shields for raising this very important issue.
Question put and agreed to.