Social Security: Claimants

Lord Bishop of Newcastle Excerpts

Wednesday 30th November 2016 Lords Chamber

[Lord Freud]

There were a whole load of statements there that are simply not true. In the example which the noble Baroness uses, there would clearly be a good reason for someone not being able to fathom the transport in a new place. There are an enormous number of protections for people in the sanctioning process, which has about seven or eight steps: there is a check by the work coach; it goes to the decision-maker; there is provision of information back to the person, who can challenge it with the decision-maker; it can go to dispute resolution, mandatory consideration and then the tribunal. This is not the easy process that is implied. Sanctions are treated very seriously. They are an integral part of the system and are treated with all due seriousness.

[The Lord Bishop of Newcastle]

My Lords, given that the National Audit Office has today said that there is limited evidence that benefit sanctions work but rather that they result in “hardship, hunger and depression”, can the Minister update the House as to whether Her Majesty’s Government will now commit to a substantial review of the use and implementation of sanctions?

[Lord Freud]

I congratulate the right reverend Prelate the Bishop of Newcastle on her first question. I hope they will not all be as painful in future as this one. I cannot make that commitment. As is said in the report, the reality is that sanctions work. There is a lot of external evidence of sanctions having a substantial impact on employment uptake, whether you are looking at the evidence from Switzerland, the Netherlands, Denmark or Germany. Our own survey shows that people on both JSA and ESA are more likely to accept the rules of the system with the sanction system behind it.

Employment

Lord Bishop of Newcastle Excerpts

Wednesday 15th January 2014 Lords Chamber

[Lord Freud]

There are two distinct factors. The higher the minimum wage, the more people will not go into the market. Estimates show that if we were to go with the recommended living wage, we would lose 300,000 jobs, particularly among youngsters. On the other side of the argument, there are benefits in terms of pay, particularly for the Government, because—as my noble friend mentioned—the tax credit system boosts the pay of low-paid people. That is the balance of the debate.

[The Lord Bishop of Newcastle]

My Lords, the Minister will be aware that there are still significant regional differences in unemployment levels in the UK. Can he tell us what regional policies the Government may have in mind to help the situation in areas such as the one where I live, in the north-east of England, where unemployment levels are still in double figures?

[Lord Freud]

My Lords, I was encouraged, as other noble Lords will have been, to hear the very optimistic remarks about what is happening in the north; namely, that it is outpacing London at this particular time. Let us hope that that is and remains the case.

Credit Unions

Lord Bishop of Newcastle Excerpts

Thursday 19th July 2012 Lords Chamber

[Lord Freud]

My Lords, something over 10% of members of credit unions are youngsters—over 100,000. That is useful and valuable for youngsters. However, I emphasise that what we are looking at now is trying to build an industry that can sustain itself. That must take priority, and that is what the money is for.

[The Lord Bishop of Newcastle]

My Lords, while I, too, welcome the Government’s support for the growth of credit unions, and recognise that some changes in the regulations are going to come in this September, what will the consequences be for the very smallest credit unions that are still serving some of the poorest and most vulnerable people in our society?

[Lord Freud]

My Lords, what we are looking for in the bids is substantial change. Smaller credit unions can take part in those bids in combination with groups of credit unions. In fact, we are expecting consortia to form to use this money most effectively.