Poverty: Metrics
Lord Bishop of Portsmouth Excerpts(5 years, 11 months ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Lord Bishop of Portsmouth
My Lords, Stalin, not often quoted on this Bench, is said to be the author of the maxim:
“A single death is a tragedy; a million deaths is a statistic”.
On that, and indeed on everything else, I disagree with the Marshal. A single person living in poverty is a tragedy; that millions do so is an affront to our values, our common decency and how we think of ourselves as a nation.
If we are to tackle poverty, we must agree on how to measure it. We therefore owe the noble Baroness, Lady Stroud, and her team a huge debt of gratitude—not just for taking into account the inescapable costs many families face, such as childcare and disability, nor just for the welcome focus on the lived experience of poverty, including such things as mental health, literacy and family stability, nor even for the suggestion of measuring poverty against a threshold smoothed over three years, but for bringing together a diverse, authoritative group of experts, for their careful dialogue and analysis, and for arriving at a measure of poverty on which we can all agree, wherever we sit in this House. That is no mean feat and it is one on which we can all, I trust, coalesce. It provides the foundations on which we can—indeed, must—build given the shocking rising figures, particularly on persistent and child poverty, on which there is no time to elaborate tonight.
We on this Bench were heartened by the Secretary of State’s speech not many days ago. We applaud the desire to build a fair and compassionate welfare system and the commitment to taking a more considered approach to rolling out universal credit, and we were encouraged by the decision not to extend the two- child limit. But we know that this marks only the start on welfare reform and tackling poverty. I therefore look forward to the Minister’s response, to the Government’s commitment to use the measures set out by the commission, and to them publishing a coherent, comprehensive strategy to tackle poverty and child poverty in particular, backing it with resources and sufficient political will to make a substantive, sustained difference.
It is no exaggeration to say that events of the past week show us to be in a state of some national crisis, caused by very different understandings of who we are and how we relate to the wider world. On that, no consensus is yet forthcoming. But, thanks to the work the commission, we now have consensus on how we measure poverty. Now we must seize that opportunity and act with urgency, tackling the national crisis of poverty.
Benefits: Reductions
Lord Bishop of Portsmouth Excerpts(6 years, 1 month ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Lord Bishop of Portsmouth
My Lords, one of the pleasures of your Lordships’ House is the range of views we hear and the expertise of those who express them with integrity and conviction—among them Baroness Hollis speaking from the Bench opposite ours.
The same is true of the Church. In one recent elegant, erudite theological treatise, the noble and right reverend Lord, Lord Williams of Oystermouth, wrote of how the words of an act of worship are pregnant with meaning, but greater significance is often discerned in the silence in between. The same is true in relation to this debate of Monday’s Budget. Its silences were just as significant as the words of the Chancellor, especially for families with children, as they are disproportionately represented among those in poverty.
The Chancellor was virtually silent on some measures that merit praise. He gave only a cursory nod to the pilot loan scheme for low-income families—although the Red Book is more forthcoming. This excellent initiative deserves proclamation. It is of particular interest to these Benches as it is based on an Australian scheme in which the churches and community groups are much involved. New money for universal credit deserves a couple of cheers. It would be churlish not to acknowledge and congratulate the Chancellor on raising the work allowance, but it would be negligent not to point out that this is less new money and more about returning towards where we were before cuts in 2015—in fact, somewhere behind.
It would also be negligent not to express anxiety about the likely impacts of other welfare cuts coming down the tracks—notably on low-income families with children and on families with disabled children in particular. They face a dramatic, unjust, shameful reduction in the additional support they currently receive and continue to need.
The silence I most regret was on the two-child limit. I accept that people should be encouraged to make informed, responsible choices about their lives and families, but we are faced with the undeniable, irreducible fact that the two-child limit will tip and trap low-income families into poverty. We are left with the utter perversity of the system making it harder for them to work their way out of poverty, however much they try. I cannot accept the Government’s rationale. Ministers argue that people should make their choices informed by whether they can afford to have a child. Indeed they should, but people’s lives are unpredictable. The blessing of a child now cannot anticipate future redundancy or relationship breakdown. It is also manifestly unjust that from next February, children born before this policy saw the light of day will bear the brunt of it. Families were not able to make an informed choice because they could not have known that there was a choice to make. Above all, we are left with the shocking fact that children already in need will be in greater need and the state will be saying that it is acceptable to withdraw a lifeline for those children and their families.
I also draw your Lordships’ attention to the heavy burden that the two-child limit is likely to place on some faith communities. During the passage of the Bill, we were told that the Government, “looked through people’s faith” to the choices that they made. I beg to differ. Faith is not something transparent to look through: it is the lens through which many people make choices. For some faith groups, having more than two children is the cultural and religion norm, even expectation. That might be the Roman Catholic community; it might be the Muslim and Jewish communities. It is also likely to have an even more disproportionate impact on such communities when many within them already live in poverty.
This House has been far from silent on the two-child limit and we should not be silent now. It takes no account of life’s inevitable ups and downs and it is detrimental to family life, tipping and trapping families and children in poverty, making it harder for them to work their way out. It makes vulnerable children even more vulnerable. I ask the Government to think again, and, as a bare minimum, to not extend the limit to families with three or more children before this policy was implemented. They should—and must—act more widely if they are to avoid damaging the family life of hundreds of thousands of low-income families and so blighting the welfare and chances in life of a whole generation of vulnerable children.
Benefit Cap: Child and Family Well-being
Lord Bishop of Portsmouth Excerpts(6 years, 7 months ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Baroness Buscombe
My Lords, we welcomed recent external research on the benefit cap, working with local authorities. We are finding that there is a positive employment impact from the lower benefit cap, even at such an early stage in a child’s life. This supports our evidence that the cap is increasing work incentives for previously workless households.
The Lord Bishop of Portsmouth
My Lords, welfare reform was predicated on the principal that work should pay, but that principal is being undermined, not least by the two-child limit. In future, a family with three or more children seeking to avoid the cap by moving into work will find themselves subject to the two-child limit instead. They could end up losing out by going to work. What assessment have the Government made of the impact of this perverse incentive?
Welfare Reform and Work Bill
Lord Bishop of Portsmouth Excerpts(8 years, 9 months ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Lord Bishop of Portsmouth
My Lords, I, too, am grateful for the Government’s decision to publish under obligation the three HBAI low-income measures, along with the further measure of children in persistent poverty. In welcoming this response to the clear wish of the House, I will not detain the House with my commentary on the tortuous routes to this wise and welcome decision, tempting though that is; we are in Lent and bidden not to succumb to temptation. As we have so powerfully and carefully considered in this House the plight particularly of children in poverty, I recall that the Minister said that he expected the Government to come under further pressure—I paraphrase—and I do not want to disappoint him.
Can he confirm that he retains an understanding of the special circumstances of children where there is bereavement or domestic violence? Widowed parents are not like other lone parents, and I hope that, as we look forward, there can be some recognition of that.
I reiterate the point that I made as I withdrew another amendment to this Bill: no society should tolerate violence. The Government recognise that in exempting victims of rape from the two-child limit. In the present proposals, those who suffer domestic violence are still encouraged to stick it out and put up with it or be penalised. If violence is wrong and to be deplored, then it is always wrong—rape, yes, but also the brutality, cruelty and horror of all violence. It is a thin line that divides rape and domestic violence, and it does no credit to a Government or a society that seeks to maintain such a marginal distinction. In welcoming these amendments, I wonder if the Minister can indicate that there can be still further consideration of the matters that I raise.
Welfare Reform and Work Bill
Lord Bishop of Portsmouth Excerpts(8 years, 10 months ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Baroness Manzoor (LD)
I add my thanks from these Benches. It is great and really welcome. To have these two allowances removed from the benefits cap is essential. We have had long debates and this was pointed out very clearly and forcefully by the noble Baroness, Lady Hollis. We on these Benches are really grateful.
Of course, I remain concerned about other areas, such as the additional children of women who are fleeing domestic violence. I implore the Minister to look again at that issue, and perhaps we could come back to it, so that those women, or indeed partners, could be exempted from the two-child tax credit limit.
The Lord Bishop of Portsmouth
My Lords, without wanting to detain the House, I add on behalf of this Bench our thanks to the Minister and offer our support and gratitude for the amendments he has brought forward today. The concerns that have been expressed around the House on many occasions for those who are most vulnerable in society have been passionate and heartfelt. It is good and reassuring when they are heard, and we offer our thanks as well.
Lord Kirkwood of Kirkhope (LD)
My Lords, I add my note of congratulation to the noble Baronesses, Lady Pitkeathley, Lady Hollis and Lady Drake, on the splendid work that they have done not just on this Bill but long before and since. They deserve the credit for these hard-fought and well-won amendments, as does the Minister. This has not been an easy Bill at all. Indeed, I do not want to spoil the tone but I join the noble Lord, Lord McKenzie, in saying that this is the worst Bill that I have ever come across in 35 years of working in social security. This group of amendments is extremely welcome, but taking £12 billion out of the social security system for the rest of this Parliament is going to continue to be a hard-fought business at all levels, particularly in this House.
I congratulate the Social Security Advisory Committee, whose work is exemplary; it supports a lot of the work that many of us in this House do. I also congratulate the Delegated Powers and Regulatory Reform Committee, which was absolutely correct in its 13th report when it strove to draw to the Government’s attention the fact that the SSAC needed to have a role in these clauses. I agree with that, and now we have a compromise. I do not understand why the Government decided not to allow the whole of the DPRRC’s recommendation; it would not amount to much, and keeping the level out of the hands of the SSAC just encourages Treasury Ministers to say daft things after Budget purdah without any consultation or anticipation by anyone—there have been examples of that in the recent past.
It also detracts from the established annual procedure for updating the social security levels that Parliament has always had in the uprating statement. I note, for example, that there is no sign of the uprating statement coming to your Lordships’ House this year; it is being done by the other place. I look forward to the powers that be allowing at least a Moses Room debate because it is the one occasion when you can look at the national insurance accounts, the Government Actuary’s recommendations and the totality of social security and tax credit expenditure. If this House cannot find time to discuss that annually, that is a matter of very great regret.
My final point is about the SSAC and the policy around the benefit cap. It is one of the most regressive policies that I have ever come across in any social security system, but I understand that I am in a minority of maybe one in the country on that question now. Maybe the Minister will confirm this because I think that the answer to this question is yes: once, as I hope it will be, austerity is dealt with and as a nation we get into a more favourable set of economic circumstances, I believe that the SSAC could use its discretion to undertake a report into the whole policy. I do not think it is excluded by anything in these amendments from looking at the impact and eventual outcome, after the introduction of universal credit. I understand that that may be a few years down the line, but am I right that nothing in the amendments precludes the committee, on cause shown, if it really believes that it needs to make recommendations to the Minister?
I pay tribute to everyone who has been involved in this Bill; it has been one of the hardest fought and most difficult, and people have worked hard on it. We have got results today, and I welcome that as much as anyone. Still, I think that the Bill will cause damage in future, although I know that as long as the noble Lord, Lord Freud, is in his position he will be monitoring that carefully. If he believes in the fullness of his consideration that some of this stuff needs to be amended in future, we rely on him to come to the House and tell us so. I would be one of the first to support him if he did.
Welfare Reform and Work Bill
Lord Bishop of Portsmouth Excerpts(8 years, 10 months ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
(c) an exception applies under section 10(4A) of the Welfare Reform Act 2012, as inserted by section 12 of the Welfare Reform and Work Act 2016”
The Lord Bishop of Portsmouth
My Lords, I shall speak also to Amendment 36 in my name. I express my gratitude to the noble Baronesses who have added their names to these amendments.
The amendments would add further exemptions to the two-child limit of the child element of tax credit and universal credit, and the exemptions that I propose are limited and specific.
The Lord Privy Seal (Baroness Stowell of Beeston) (Con)
I apologise for interrupting the right reverend Prelate but many noble Lords are leaving the Chamber and cutting across him. I remind my colleagues that it would be more courteous to the House if they were to exit without walking in front of him.
The Lord Bishop of Portsmouth
I am grateful to the noble Baroness. At Second Reading and in Committee I, along with others in this House, indicated our regret that these proposals as a whole might be seen as signalling that not every child is precious and deserving of love and support not only from parents and families but from communities, society and nation. Nevertheless, I recognise the intent of the Government.
I do not intend to rehearse the detailed arguments, numbers and costings used in Committee. The Minister and your Lordships are aware of them and of the perspective of my and other faith traditions. Whether personally supportive or not of the Bill’s provisions as a whole, noble Lords will see that my amendments do not challenge the main thrust of this part of the Bill: that decisions about family size should be made with responsibility and care and that any decision to have third or subsequent children should be made without expectation of benefit support. The exceptions I propose do not challenge the central plank of the policy, which seeks to influence parental behaviour.
I was grateful, as I know others were, for the opportunity to meet the Minister last week. I was grateful for his courtesy, candour and understanding, which I hope might be shown today in his response.
The Bill incorporates exemptions for multiple births and after rape, an exemption on which I hope the Minister can provide clarity about the procedure, judicial or otherwise, to be used in relation to that. The further exemptions I propose relate in the same way to specific circumstances or vulnerability. All relate to the common good of society, to an understanding of what is just, right and compassionate, and to characteristics and behaviour that we wish to encourage and enable, sometimes in legislation.
The first three exemptions relate directly to unforeseen circumstances that could not have been planned for when a decision was being made about family size. However carefully and responsibly consideration took place, these circumstances could not have been reasonably expected. The death of a parent drastically changes family circumstances. The death may remove the principal source of income, or increased childcare demands may compel the surviving parent to reduce their working hours or stop working. I hope that the Minister and the Government will, as they have previously, show understanding and accommodate these distressing circumstances at least for a transitional period. Will they indicate some provision here so that the deep sadness of bereavement is not exacerbated cruelly by financial penalty? Parental death is unforeseen when family size is decided.
A parent suffering domestic violence is often driven, as a last and desperate resort, to flee the family home. Everything is left behind as parent and children lose home and security and, sometimes, their main source of income. The Government have boosted refuge provision to support such vulnerable victims of violence. I hope the Minister agrees that it would be consistent to recognise the vulnerability of these children in relation to this Bill. The threat and danger of domestic violence is not chosen or sought. To penalise children taken out of a dangerous situation cannot be right and does not reflect well on the concern we all have for the security and protection of vulnerable young people.
No parent either plans for a disabled child, yet we know that the impact on previously anticipated patterns of work and childcare can be hugely significant. A realistic and rational decision to have a third child can lead to a massive change of circumstance if the child is disabled. I recognise, of course, that a disabled child will, in some circumstances, attract some additional payment, albeit hugely reduced under universal credit. The impact for that family on their employment patterns, on childcare priorities and costs would be exacerbated by the strict application of the two-child limit.
Two of the exemptions I propose relate to the behaviour and decisions which I and, I believe, the Government wish to encourage and which policy and legislation can enable through these amendments. Kinship carers and those fostering and adopting step in to care for children with love and commitment when many would otherwise be in the costly care system. Around and across your Lordships’ House there is a desire to welcome, enable and encourage such generosity, which benefits the children themselves and our society. Surely, when kinship carers or fostering or adopting families take third or subsequent children, often to keep siblings together, we should be supportive of that, not really because it saves money for the public purse and the Exchequer—though it does—but because it is the right and good thing, to be welcomed by this House, Parliament and the Government.
Lord Freud
We have looked at this very sympathetically, but in practice we found it too difficult. We have heard from this Chamber about the kinship and adoption issues, and those are the ones that we want to get absolutely right.
The Lord Bishop of Portsmouth
My Lords, I am grateful to the dozen or so Members of your Lordships’ House who have contributed in the course of these exchanges as we have considered these amendments. I am sure that we have all been touched and moved by the strength of feeling and clarity of argument that have been brought. I am particularly grateful for the Minister’s response a few minutes ago. In my opening remarks, I spoke of the candour and courtesy he showed when a number of us met him last week, and we have been grateful for that again.
We heard very clearly the indication from the Minister of the importance of consideration of the regulations that will be brought forward relating to these measures, and I am grateful for his sensitivity about that. I assure him that we on these Benches and, no doubt, others, too, will certainly engage in the way that he suggested. We are also grateful for some clarification about the reporting model he has in mind to be used where a third child is born as a result of rape. Again, I know that many people will wish to engage in further consideration about that.
I think it is fair to say that we are delighted by the position he has outlined about kinship carers and adoptive parents and are very grateful indeed for that on behalf of the children themselves and of wider society.
On areas where the Minister was not able to satisfy us as much as we might have hoped, I draw his particular attention to circumstances in which children and a parent flee domestic violence. I said at the beginning that violence is never justified in circumstances such as that. I hope that the Minister will understand how difficult it is for me and others to accept what sounds at the moment like a policy which gives a financial incentive to risk staying in a situation where children might be in danger of abuse or in physical danger. It is a very serious matter and I hope that there may be some flexibility in the conversation to which he has pointed.
With grateful thanks to the Minister and to those who have contributed in this conversation and this debate, and welcoming the advances that have been made and the indications of some further changes in the future, I beg leave to withdraw the amendment.
Welfare Reform and Work Bill
Lord Bishop of Portsmouth Excerpts(9 years ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
“( ) the child is in the household as a result of a kinship care or private fostering arrangement,”
The Lord Bishop of Portsmouth
My Lords, my concerns about this measure, along with those of other faith groups and organisations, are set out in the briefing note that my colleague the right reverend Prelate the Bishop of Durham circulated to all Members of the House prior to the Second Reading debate. In that note we expressed our belief that children are a blessing and that anything that sends an implicit or explicit message that a child is unwanted or burdensome should be strongly resisted.
The stated rationale for the policy outlined in this measure is to ensure that people on benefits and tax credits face the same financial choices around the number of children they can afford as do those supporting themselves through work. I understand, and support, the Government’s desire to encourage responsibility through the welfare system. However, it is important that personal responsibility is not defined too narrowly or in purely financial terms, and that it encompasses our responsibilities to our families and neighbours, and to the communities to which we belong.
I turn to the amendments in this group. Kinship carers, for example grandparents, older siblings and other relatives and friends who step in to care for children, many of whom would otherwise be in the care system, are affected by these proposals. We have a responsibility towards these people and the Bill does not adequately reflect the share we all properly have in caring for and supporting them. These children are unable to live safely at home because of domestic abuse, their parents’ mental health problems, alcohol or drug misuse or the death of a parent.
In purely financial terms, becoming a kinship carer is an unwise decision. Kinship carers face significant additional costs and often a loss of income as the majority are forced to give up work temporarily or permanently to look after these children. Yet many people take on this responsibility sacrificially out of a commitment to love and care for their extended family, often at great personal expense to their own emotional and physical health. Thanks to their dedication, children in kinship care do significantly better than children in unrelated care, despite having suffered similar adverse experiences. In personal financial terms, it is an unwise decision: in social and community terms, it is a generous and good decision.
For example, Jane is a paternal grandmother and kinship carer. She and her husband are raising four grandchildren who are all under six years old. The children cannot live with their parents due to severe physical abuse. Although Jane and her husband get some special guardianship allowance support from the local authority, they are reliant on tax credits.
Jane tried to continue at first working full time when she and her husband took on the children, but it was too much. The children were suffering with their health and their well-being. They were upset, too. And she did not get any help with child care. Eventually her husband gave up his business to care for them so that Jane could work three days a week. If their tax credits are reduced, she would obviously have to go back to work full time in order for them to manage financially, at the expense of the needs of those very vulnerable children.
It has been estimated by the Family Rights Group that there are around 200,000 children being raised by kinship carers across the nation. More than one in five kinship-care families contains three or more children, and nearly two-thirds of these receive tax credits—around 18,000 families in total. The changes proposed in the Bill with the consequent reduced financial support for these families could well stop potential kinship carers from being able to take on the care of a sibling group of children, or lead to the splitting of a group of three or more siblings, or discourage carers from taking on an additional child if they already have dependent children of their own.
This is clearly not in the children’s best interests, nor in society’s—and nor is it in the Chancellor’s best interests. Exempting this group from Clauses 11 and 12, as I and others are proposing, would reduce the savings to the Exchequer by an estimated £30 million in 2020-21. That is down from £1,365 million in savings to £1,335 million. It would require only 200 kinship carers to be financially prohibited from taking on a sibling group of three or more for the extra care and court costs to outweigh any public savings. In care, the cost per year of a child is about £40,000: the one-off court costs are about £25,000.
The Government’s long-standing commitment to ensuring that families are stable is welcome. Will the Minister be able to agree with us that creating the best possible environment for children to flourish would be best enabled by reviewing this proposal? The moral case for supporting this group of amendments is sufficient, in my view, but the economic case is strong, too.
Baroness Sherlock (Lab)
My Lords, I rise to speak to Amendments 16 and 17 in my name and that of my noble friend Lord McKenzie of Luton and to support the other amendments in this group. I fully support the case on kinship care set out so carefully by the right reverend Prelate the Bishop of Portsmouth. There are some common arguments that apply to adoption and kinship care, the two subjects in this group, and reasons that the Government should think very carefully before deciding not to provide tax credits and universal credit to third and subsequent children in those settings.
First and most obviously, we should not be putting financial barriers in the way of families willing to take on what are often very vulnerable children. As the right reverend Prelate has pointed out, if such families are deterred, the state is likely to find that the costs go up, albeit not to the Department of Work and Pensions, but I hope the Minister would not be so parochial as to allow that in any way to influence him.
The average child tax credit claimed for a family of three or more children is £3,670, but, as the right reverend Prelate has pointed out, the NAO found in 2014 that it cost £40,000 a year to foster a child, aside from the one-off costs. How can that make sense? In many cases, had those children been able to stay with their birth families, tax credits would have been payable for them anyway, so it is not as though the cost is increasing. As we have heard, there is clear evidence that children in kinship care settings do better than those in unrelated care, despite having similar adverse circumstances.
Lord Freud
My understanding is that when we do these assessments we look at all of these aspects. But I have now been asked this question twice and I will go back and double check in this area and write to noble Lords on exactly how we did that set of calculations.
The Lord Bishop of Portsmouth
My Lords, I am sure we are grateful for the very thoughtful contributions made in Committee and for the powerful case that these amendments bring to us. I am grateful to the Minister for his recognition of the vital role of kinship carers—albeit that it is a limited recognition in terms of the amendments. I was disappointed by—if I heard the Minister correctly—the inflexibility of his position but grateful for the courtesy with which he heard from us and responded to us, and offered to return with further information.
A lot of emphasis has been placed on the choice that is involved. I fear that a rational choice for many potential kinship carers, if these amendments were not passed, would be the agonising one of not really being able to accept the responsibilities that they would like to accept. I will add that the rational choice for the Government and our society would be to accept the amendments and support these people as they fulfil those responsibilities and offer that love and care.
There has been a lot of emphasis on the cost savings: the potential anticipated initial cost savings and the subsequent costs that might occur to other departments and elsewhere. The important costs are those borne by our society—by the children—which may be significant. Failing to do our best for children is always wrong. Doing less than the best for those who are in these challenging circumstances is a poor reflection on us.
I hope that the Minister may be able to give further consideration to the matters that have been raised this afternoon, to which we may wish to return on Report. I beg leave to withdraw the amendment.
The Lord Bishop of Portsmouth
My Lords, I highlight two particularly vulnerable groups in my Amendments 5, 6, 13 and 14, groups that I believe should be exempted from this measure. These are bereaved parents and victims of domestic abuse. In focusing so heavily on promoting personal responsibility, there is always a danger with welfare reforms that we neglect our collective responsibility to look after those who fall on difficult times, people we will probably never meet but whom we support through our taxes in their time of need so that we, too, will be supported when we need help.
It is not as simple as there being two groups in society, those who contribute and those who receive. I know that one of the most tragic events a child can experience is the death of a parent. When my first wife died, I was the sole parent of my children and a recipient of some benefits. Quite apart from the emotional upheaval, the impact on a family’s situation can be drastic, much more drastic than the situation I faced. It is common for families to require additional support in these circumstances, either because the main earner has died or because the surviving parent must give up work or reduce hours to care for the children. According to the Childhood Bereavement Network over 23,000 parents died last year, leaving around 40,000 newly bereaved children. One in three of these children live in larger families with two or more siblings and will potentially be affected by the two-child limit, if it goes ahead in its current form. It feels particularly unfair that the families who have experienced such a traumatic event should have to cope with additional financial pressures on top of it.
Likewise, parents who are the victims of domestic abuse should not be put in a position where they have to choose between staying with the abusive partner and leaving them for a life in poverty for themselves and their children. I understand that, at any given time, there are around 250 children staying in refuges for women fleeing abusive relationships and that one-third of those are from larger families. Many women remain in abusive relationships for long periods, in part due to the financial considerations. Unless this group is exempted from Clauses 11 and 12, this could prolong their abuse and put them and their children at risk, making it even harder to leave their partner.
As with kinship carers, who we considered in the last group, the cost of exempting bereaved parents and victims of domestic abuse would be relatively small by comparison with the total projected savings, and would help to address the most obvious cases of injustice. I therefore bring before the Committee these amendments in my name, seeking to reflect the circumstances of these children and their parents.
Baroness Sherlock
My Lords, I shall speak to Amendments 15, 18 and 20, which are in my name and that of my noble friend Lord McKenzie of Luton. I shall also speak to the other amendments in this group.
Amendment 15 seeks explicitly to exempt from this measure children entering a household as a result of a multiple birth. In the light of the Minister’s commitment on the record that such children will be exempted, I will not dwell on this for very long but ask him to clarify a couple of things. First, he mentioned that this will be done by regulation. Will the regulations be of the affirmative or negative kind, given the question raised by the Delegated Powers Committee on that point? Secondly, can he confirm that the Government intend that the exemption will apply to any means-tested benefits, not just tax credits, and irrespective of the number of children who may come along at the same time in that multiple birth?
Amendment 18 is a simple amendment which provides for exemptions to apply in exceptional circumstances, as defined by the Social Security Advisory Committee. The thinking behind this amendment is that, as we have heard already today, there are a number of special circumstances which Ministers may not have thought about when devising the Bill. I know that Ministers never like to admit that things can crop up which they have not already thought of but, just every now and again, things that none of us has been clever enough to work out may suddenly turn up and make a difference. To protect the Minister from the exigencies of such a disastrous situation befalling him, I offer the Committee this amendment today. It would enable the Social Security Advisory Committee—a statutory body with huge expertise—to spot these things that, unaccountably, none of us had managed to spot and to bring forward to the Minister recommendations for exemptions which could then be put into legislation. I commend this idea to the Minister; he may have it free of charge. If he does not like it for any reason, and I cannot think that he would not, he might instead like SSAC to undertake a formal review of the impact of this policy 12 months, say, after its enactment and to advise him and his colleagues of any additional exemptions that might be needed. I would settle for that.
Amendment 20 proposes to exempt from this provision couples with dependent children who, if living in separate households, would not be affected by the two-child limit. This is a broader exemption than that proposed by the noble Baroness, Lady Manzoor, in Amendment 4, although I also support her amendment should mine not go forward. Her amendment would seek to exempt someone who is a single parent and previously claiming tax credits; my amendment seeks to address all such reformed families. This is one of the issues which exposes why this whole measure is such a bad idea. The Government have spent a lot of time advocating the importance of family life and making much of their support for marriage. I approve of them doing that, yet they are again proposing a policy which will run in direct contravention to that other policy objective. If two people meet and fall in love and they each have two kids, if they get married or partner and set up home together then overnight this measure alone will make them worse off to the tune of £5,560 a year. The irony is that they may find by coming together as a household—for example, if they are both working—their entitlement to benefits would go down naturally as a result of the means test. It seems particularly unfair to deprive them of support for the children when they would have been supported by the state had those two people decided to stay separate.
I have been struggling to get a handle on data on stepfamilies. Maybe the Minister can write to me. I have had to work my way through official statistics trying to make sense of them. It seems to me that more than 20% of adoptions registered in 2014 were in stepfamilies, and ONS data based on the 2011 census seem to suggest there are 326,425 children living in stepfamilies with three or more children where the parents are either married or in civil partnerships. There are another 196,173 children living in stepfamilies with three or more children where the parents are co-habiting. I make that more than half a million children. They will not all be eligible for tax credits or universal credit, but up to half a million children could be affected by a measure not because they themselves were third children but because their parents made the unconscionable error of falling in love with somebody else who already had children, and by coming together the household suddenly becomes ineligible for those benefits for the third and subsequent children.
I used to run a charity that worked with single parents. Unless the trends have changed significantly, there was a tendency that lone parenthood was a state someone would stay in for an average of five years. It tended not to be a lifetime choice. People tended to repartner or remarry. We are increasingly putting barriers in the way of people ever doing that. I wonder if that is wise. I also wonder whether it is an intention of the Government’s policy. If not, has the Minister given any thought and has the department done any assessment on the likely impact on second marriages or repartnering?
I want to comment briefly on the other proposed exemptions. The noble Baroness, Lady Manzoor, expressed the concern I think many noble Lords will share about how intrusive a process might have to be to establish that a woman had been raped. I certainly hope the Minister realises that he will find it a challenge to get the Bill through this House in its entirety without explaining how a proposal that somebody should be tested to see if they have been raped would be implemented. At the very least, is the intention that it is only when a woman has made a complaint to the police or someone has been charged or convicted? If not, who will she give evidence to in DWP and how will that be assessed? How will the Minister guarantee that the process will be confidential? If any other official in a benefit or tax office or school could see that a woman was getting benefits or tax credits for a third or subsequent child, there are only two ways at the moment that that could happen—a multiple birth, which would be evident, or the pregnancy being the result of rape. I wonder where that leaves us in terms of confidentiality. Has the Minister given any thought to that? Given that, has the Minister considered the impact on the child if at some point they discover they had been conceived as a product of rape—something the parents may have gone to considerable pains to disguise from them? The Government mentioned in the impact assessment that they would consult stakeholders before deciding how to deal with this. Can the Minister tell us who the Government have consulted and who they intend to consult?
I also asked at Second Reading—but got no answer—what the rationale was for exempting children in multiple births or those conceived as a result of rape. The Minister has indicated that this is about choice. Does he accept therefore that there are other circumstances where a woman may not be able to exercise choice? The noble Baroness, Lady Manzoor, mentioned domestic violence. The proposal, which I support, to exempt people in cases of domestic abuse rests on two arguments: first, that a child may have been conceived under duress, rather than as a result of a clear choice; and secondly, that the two-child limit may make it harder for a parent of more than two children to leave an abusive relationship as they would struggle to support the children.
We have heard how widespread domestic abuse is. Each year more than 2 million people suffer some form of domestic abuse. Its impacts are severe and hard to escape. About 42% of domestic violence victims have been victimised more than once. On average victims experience 20 incidents a year, which can often increase in severity every time. While 80% of victims report physical abuse, it is not just that—nearly 90% of high-risk victims report experiencing emotional abuse and/or coercive control or behaviours. Those are exactly the kind of things that could lead a woman to become pregnant without exercising choice. Abuse can include a refusal to allow a woman to use contraception. It can include rape and pregnancy as a result of rape which she may have been reluctant to report to the authorities because of fear of the abusive partner. Of course, the use of power and coercion are the very things that make it hard for someone to leave an abusive relationship. Sometimes they do manage to leave, often by getting advice or support and by meeting other victims; sometimes things go too far, such as when a child is caught in the cross-fire of domestic abuse. At the point at which they flee, they need all the help they can get. Too often they leave just with the clothes they stand up in. They are homeless and need to move and often hide from their abuser; they leave behind schools and jobs. It is hard enough to rebuild a life in those circumstances but this policy could act as a further barrier, so I hope very much that the Minister will consider this exemption very carefully.
Welfare Reform and Work Bill
Lord Bishop of Portsmouth Excerpts(9 years ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Baroness Hollis of Heigham
My Lords, this is a Bill that my noble friend Lord McKenzie has gone on record as saying—and I certainly support him in this—is one of the most wretched that he has known in this House. Most of it deals with cuts that many of us find objectionable because they fall on the poorest and most vulnerable in our society. We will oppose those, and on Report we will try to persuade the Minister to make some mitigation if that is possible.
However, the two-child policy is of a different order from the issue of cuts, primarily because it is saying to those families who have a third child, “We are hugely increasing the odds that you as a family will descend into poverty, that your poverty will be persistent, that you will not be able to get out of it and that your children will carry that poverty into the next generation”. We know this to be the case, yet the Government, and the Minister on their behalf—I cannot believe that his heart is in this—are actually willing to go down a policy route that knowingly sends poor children into longer, deeper and more persistent poverty, not only for their childhood but for a substantial chunk of their adulthood as well. We know that the children of poor parents are twice as likely to be poor at the age of 30 as others of the same age, yet the Government are going down a route that, to me, is deeply morally offensive. As opposed to the cuts, over which we have argued and will continue to argue, this seems to be a knowing castigation of poor children into permanent poverty for sums of money that we do not even have any evidence for. I say to the Government that they really should not go down this path: it is a damned path to go down.
The Lord Bishop of Portsmouth
My Lords, I express my strong concern about these clauses remaining part of the Bill. I offer three straightforward and, I hope, succinct comments: first, about the implications of these clauses; secondly, about the motivation of parents that is implied; and, thirdly, about where responsibility lies.
First, the Government place great emphasis on choice and personal responsibility for family size. I have to say that that assumes a remarkable assumption about the fail-safe effectiveness of contraception—or, if not, an apparent willingness for abortion to be appropriate as a sort of emergency contraception to keep family size to two children. I doubt the assumption, and would deeply regret driving people to seek termination on economic grounds. Is that really what the Government wish?
Secondly, over 35 years now I have played some part alongside others in preparing engaged couples for marriage and have often heard myself saying, “If you wait until you are sure you can afford children, you will never have them”. Religious traditions other than my own go further and specifically enjoin the blessing of children and family life. Are the Government aware of how these clauses will be received?
Thirdly, as I mentioned earlier in Committee, we—that is, a number of faith groups and organisations—made clear, in a letter circulated to all Members of the House prior to Second Reading, our belief that children are a blessing and not burdensome, a problem or a difficulty. To consign a child to being a financial problem over which the child himself or herself has had, and has, no control is indeed a singular responsibility—a responsibility for the mother and father indeed but, if these clauses go forward, it is a responsibility in which we shall all share. How sad it will be that a child growing up, becoming increasingly aware, will one day hear or discover that he or she is responsible in part for the family’s level of income simply by having been born. Although the Government seem to place that responsibility wholly on parents, I fear that the responsibility for this change would rest with us all. Is that what the Government want, and are we all prepared to accept that responsibility?
Lord Freud
My Lords, Clauses 11 and 12 introduce the Government’s reform to the child element of child tax credit and universal credit, which was announced by the then Chancellor in the Summer Budget of 2005. The purpose of child tax credit is to provide support to low-income families to help them with the cost of raising children, while universal credit, which replaces the child tax credit, is a unified benefit that provides support to low-income families both in and out of work. As it is being rolled out across the country it is providing a clearer and simpler system of support for families and provides real incentives for work. However, it is important that universal credit is kept on a sustainable basis and encourages families to make similar decisions to those who support themselves fully through work. The Government believe that child tax credit has become unsustainable, with expenditure trebling in real terms between 1999 and 2010, and going up the income scale to a level where a family with three children earning up to £40,000 will still be eligible for support. Last year the Government spent almost £30 billion on tax credits.
I will deal with the issue raised by the noble Baroness, Lady Sherlock, on the dependency ratio. In recent decades Britain has had a higher total fertility rate than the average of the older EU member states. Most families will not be affected by this measure. The mean number of dependent children per family is 1.7, and 86% of families have one or two dependent children. In fact, those families with two or fewer children are remarkably stable, whether they are lone parents, at 88%; opposite-sex cohabiting couples, at 87%; or married couples, at 84%.
Welfare Reform and Work Bill
Lord Bishop of Portsmouth Excerpts(9 years ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
“Limiting the child element of child tax credit and universal credit to two children: reporting obligation
Within six months of the day on which this Act is passed the Secretary of State must consult and lay a report before Parliament, assessing the social and economic impact of sections 11 and 12 of this Act, including—(a) the potential impact on family relationships and functioning, with reference to “The Family Test: Guidance for Government Departments” produced by the Department for Work and Pensions, and(b) the potential economic and social impact on different faith communities.”
The Lord Bishop of Portsmouth
My Lords, I tabled Amendment 21 to highlight the impact of this measure on different faith communities who share our concerns with this part of the Bill in particular. Noble Lords who attended the special briefing we organised two weeks ago will have heard Chaya Spitz, chief executive of the Interlink Foundation, speak passionately about the implications for the Orthodox Jewish community that she represents and is a member of. For her community, larger families are the norm and the central pivot around which everything else revolves. There is a positive, faith-based imperative to have children, to create the next generation in service of God. There is also a commonly held conscientious objection to the use of artificial contraception, except in prescribed circumstances, and to abortion, except in rare circumstances. By limiting financial support to the first two children, this policy is making a judgment that touches on deeply personal and strongly held religious and cultural beliefs about the family, and that threatens the viability of whole faith communities.
According to the 2011 census, 52% of Jewish children lived in families with three or more children, compared with a national average of 31%. In Muslim families, the proportion is even higher—60% live in larger families. This measure will have a hugely disproportionate impact on these particular faith communities. Although it is difficult to see how this could be framed as an exemption, the effects will be profound, and I do not believe they have received the consideration they deserve.
A recent report by the Child Poverty Action Group highlighted serious human rights concerns relating to this and other parts of the Bill and argued that the regulations would need to include “extensive exceptions” protecting women,
“family integrity and religious freedom”.
One of the issues it raises is the potential discrimination against members of religious groups who have a conscientious objection to the use of contraception or abortion contrary to Article 14, read with Article 9, of the European Convention on Human Rights. There are other hard cases as well, including situations where women in abusive relationships are pressured into having more children or where a woman uses contraception in good faith but it fails. In all these cases, the assumption that women have a free choice about whether or not to have a child is called into question.
For these reasons, I have tabled this amendment calling on the Government to consult and report on the economic and social impacts, focusing in particular on the implications for family life and for different faith communities. The Government’s own impact assessment is inadequate in this respect, offering only a superficial assessment of the likely effects. To argue, without supporting evidence, that substantially reducing the level of support for larger families will somehow increase their financial resilience and support improved life chances for their children seems wishful thinking at best and requires further investigation. As part of a more rigorous assessment, will the Minister agree to seeing the Government apply their own family test to this policy, using the guidance published by the DWP in October last year?
In an earlier intervention in Committee, the noble Lord, Lord Lawson of Blaby, spoke about perceptions of fairness in legislation, citing the example of family allowances. Would the Minister agree that the perceived fairness of these policies will be judged not only by their overall popularity but by the respect they give to deeply held convictions of faith communities that enrich our common life? I seek not an exemption but a clear analysis of the impact.
Baroness Lister of Burtersett
My Lords, in speaking in support of this amendment, I will pick up what the right reverend Prelate said about the inadequacy of the impact assessment. This point was also made by the Equality and Human Rights Commission from the perspective of equality and human rights. It argued that it does not “enable proper scrutiny” or meet the requirements of the public sector equality duty; nor is there an assessment of the “aggregate effect” of the changes on people.
In fact, the impact assessment is inadequate from any perspective. In particular, there is no assessment of the impact on child poverty, despite the Joint Committee on Human Rights recommending that the Government should assess the impact on child poverty of any new law, as child poverty is a human rights issue—I declare an interest as I was a member of the committee at that point. I asked a Written Question about the impact, only to be told to look at the impact assessment—the implication being that I had not read it, which I found rather insulting.
Not only is there no assessment of the impact on child poverty, but this is the quality of distribution analysis:
“The policy has the impact of redistributing income from Universal Credit/tax credit recipients to the Exchequer (i.e. society as a whole)”.
Actually it is not society as a whole, because when I last thought about it, universal and tax credit recipients were themselves members of society. The assessment continues:
“The policy therefore has distributional impacts”.
That is the distribution analysis—and the impact assessment on life chances is similarly risible.
I remind the Minister of what it says in the Companion—that Ministers should be as open as possible in answering questions, because this is inherent in ministerial accountability to Parliament. I therefore ask him again now: what is the department’s assessment of the impact of these clauses on the number of children living in poverty? I simply do not accept that it is not possible to make an assessment. I accept that there might have to be a fairly wide margin of error—we cannot just say that it will be exactly x thousand—but I do not accept that there is no assessment. It is not possible.
The right reverend Prelate also mentioned the family test. That is drawn up by the Department for Work and Pensions itself. It is supposed to be equivalent to the public sector equality duty. According to the DWP, its application should be documented and the relevant department should consider publishing it. Given that this clearly has a family impact, why did the department decide not to publish the family test? As part of its equality statement for reforming asylum support, the Home Office set out very clearly each of the questions that the family test is supposed to answer and gave its answer. I might not agree with those answers, but that was a model of how a department should deal with it.
Will the Minister undertake to provide noble Lords with the documentation of the application of the family test before Report? There must be documentation, according to the DWP’s own guidance. Given that the measure has a clear family focus, can he tell us what additional analysis was undertaken involving stakeholders, as is recommended in the DWP’s own guidance on the test? Finally, will the Minister tell us which other countries restrict payment of benefits for children to smaller families in this way? I am reliably informed that there is no other country, but I accept that I may be wrong. When I last looked at this, I found that countries that cared about family policy and child poverty tended to pay more to larger families, rather than less, but I would welcome elucidation on that.
Lord Freud
This is really becoming arcane. We have said that we do not recognise polygamous marriage in universal credit. But clearly there is an individual there, and we will treat them as a single person. It is actually, ironically, a little more expensive than treating them as a wife.
The Lord Bishop of Portsmouth
Can I make what I hope is not an arcane point? I invite the Minister, in responding to my amendment, which relates quite specifically to faith communities, to add something about that. He has not mentioned the word “faith” in his response, unless I have misheard.
Lord Freud
No, I have not; the right reverend Prelate is correct. In this policy we have looked through that to people’s choices, whether they are those in the benefits system or the people supporting those on the benefits system. I have not made an explicit comment on race or religion.
The Lord Bishop of Portsmouth
My Lords, I am grateful for the Minister’s response, but I think he will understand that I am disappointed that he cannot respond more positively to my amendment, which seeks some specific analysis of how these proposals would affect the lives of those with deeply held religious convictions who feel actual anxieties about what is proposed. In the course of the coming weeks, I am sure that these matters will be raised again and I hope that we can begin to have conversations about the specific issues that I have tried to raise. We could do that sympathetically and generously, recognising the respect in which these communities, in my judgment, should be held. I beg leave to withdraw the amendment.
Universal Credit (Waiting Days) (Amendment) Regulations 2015
Lord Bishop of Portsmouth Excerpts(9 years, 5 months ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Lord Bishop of Portsmouth
My Lords, I and others from these Benches have welcomed the principle of universal credit, and I readily do so again. However, the best of policies and principles have practical consequences which make all the difference to the effectiveness of policy. In that constructive spirit, wishing universal credit to be successful in simplifying the complexity faced by benefit claimants and confirming the dignity of work at a decent rate of pay, I add some reservations to the extension of waiting time to seven days.
Delay in receiving first benefit payments has been an issue for many years. Inevitably, and sadly, there can be administrative delays. I am not aware that any assurance has been given that universal credit processes would prevent such delays; indeed, I doubt that any such reassurance could be given. Process, technology and human error are realities. Compounding these with longer statutory waiting times will exacerbate the problem. We should be reticent about further lengthening that wait, at least until delays consequent on the new universal credit process and procedures are ironed out. It would be rash, given our general experience, not to expect some continuing transitional challenges. There are some worrying instances and worrying delays. That is not to attribute blame—rather, it is to remind ourselves of the importance of extensive and ongoing training for those involved in assessing applications and advising on helplines. I hope the Minister might confirm ongoing commitment to this.
Some caution about extending waiting times is therefore appropriate. Furthermore, whereas, as we have heard, jobseeker’s allowance provided for a waiting time of a fortnight, universal credit has a month before first payment is reached. Carers and lone parents have not previously faced a waiting time rule at all. Not all those affected will benefit from redundancy payments or have the cushion of savings. Though some will, a compassionate and just system provides for the worst cases and for those most vulnerable. A job search, which we would wish to encourage, costs money.
The welcome advantage that universal credit encompasses a number of previously independent benefits, which in almost every way is a huge step forward, is in this instance, perversely, a disadvantage. The consolidated nature of universal credit being awaited by a claimant means that the payment being delayed is likely to be a very significant part of income.
As I understand it, the intention of the noble Lord, Lord German, and the noble Baroness, Lady Sherlock, is to moderate the impact of these proposed changes—to moderate risk. On balance, I have some anxiety that the first amendment risks complicating universal credit arrangements by excluding housing benefit from the regulations. It seems to go a bit against the grain of simplifying the benefit system. The second amendment, delaying enactment, gives some time to assess the impact of moving to monthly payments and any protection needed for vulnerable groups, for instance. I hope that the Minister can consider agreeing to a delay to allow for some learning in transition to what I trust will be a significant step forward in supporting those in need through universal credit into work at a decent living wage.
Lord Kirkwood of Kirkhope (LD)
My Lords, I shall make a brief intervention in these two important debates. I congratulate my noble friend and the noble Baroness, Lady Sherlock, on securing the time. I should perhaps say at the outset—and the noble Baroness, Lady Lister, rightly adverted to the fact—that I had a failure of nerve earlier last week and withdrew my prayer to annul. I did so because I think the Treasury is requiring the department to take the introduction of this fundamental flagship policy right to the edge of proper implementation. The Minister told the House last week that the department has already been required to make significant savings. Some £2.4 billion was the anticipated spend, but that has now been reduced to £1.8 billion. The Minister may be able to persuade me otherwise on the rollout of the digital element of the service, and I would like to hear him on that subject but, if not, I am really worried that we are cutting this so thin that we may lose the core benefit of universal credit. I agree with the noble Baroness, Lady Sherlock: everybody in this House, or certainly anyone who served in the Welfare Reform Bill Committee in 2012, is committed to the principle of a single working-age benefit that is blind to work. But if the Treasury is not careful, the house of cards will collapse. So if I had succeeded in a fatal Motion and the Minister had been sent back to the Treasury with his tail between his legs, it may have said, “It’s all too much—we’re just going to let you swing in the wind”.
I know that it is not the Minister’s fault at all, but the idea that this is a save-to-spend initiative is a complete nonsense, as far as I am concerned, and I just do not believe it. It is a departmental expenditure limit that will carry these savings and, as the noble Baroness, Lady Lister, said, the claimants will carry the can, on top of everything else. We are talking about £200 million or £150 million—we do not know—but we really are in danger of putting people at risk.
Another thing that irks me is the fact that we are now beginning to confuse means-tested safety nets with income replacement benefits. Means-tested safety nets should apply in any circumstances; they are the point of last resort. I do not believe that the local government establishment, although it tries hard with reduced budgets, can pick up all of the downstream damage that will be done to low-income households that will struggle to stay alive. Therefore, we have to get behind the department to get the Treasury to recognise a bit more what is at stake here. That is one of the purposes that I hope the debate this evening will serve.