Improving Lives: Green Paper
Lord Farmer Excerpts(9 years, 5 months ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Freud
Yes, some of the technologies that one sees are remarkable. The noble Lord, Lord Low, who is not in his place at the moment, demonstrates that for the blind every time he stands up—I cannot imagine how he can do it—as did one of the members of my private office, who was also blind. There are amazing technologies to help support in that case; I know that it is also true elsewhere. We want to adopt and take on new technologies. One of the interesting and heartening things with Access to Work, where we have been a little concerned about the take-up, is that we have just introduced a digital offer there and we are encouraged by the response to it. There will be other areas where we can get a lot of benefit from going with new technologies.
Lord Farmer (Con)
My Lords, as we have heard, this Green Paper is to be recommended. It will obviously need some broad support to get it through. Can my noble friend tell us what he is doing to garner broad support for these changes?
Lord Freud
We have deliberately designed this Green Paper to ask for responses from a lot of key areas. Noble Lords may remember that when we started off on this process, it was by looking down a direct White Paper route. We have pulled back and gone for the Green Paper route, with a lot of areas for consulting. We plan to hear from and work with disabled people and people with long-term health conditions. We want to hear from employers, health and care professionals, the voluntary and community sectors and the devolved Administrations. We really want to build a consensus on what we can do and get the widest support that we possibly can for any changes.
Life Chances Strategy
Lord Farmer Excerpts(9 years, 11 months ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Farmer
To ask Her Majesty’s Government what steps they are taking to deliver the Life Chances Strategy to transform the lives of the most disadvantaged people in Britain, as outlined by the Prime Minister on 11 January.
Lord Farmer (Con)
My Lords, I am delighted that time has been found for such a debate this side of Her Majesty’s most gracious Speech next week. I cannot think of a better way to spend precious time in your Lordships’ House so near the end of this Session—
Noble Lords
The Lord Privy Seal (Baroness Stowell of Beeston) (Con)
I am sorry, but some of my noble friends are walking in front of my noble friend while he is trying to introduce his debate. I ask my noble friends to leave the Chamber in such a way that does not cut across in front of my noble friend, because I know that those who are remaining for this debate very much want to hear him introduce this very important Question and hear what he has to say.
Lord Farmer
Thank you. I will begin again. I am delighted that time has been found for such a debate this side of Her Majesty’s most gracious Speech next week. I cannot think of a better way to spend precious time in your Lordships’ House so near the end of this Session than to talk about how the Government can most effectively help the most disadvantaged people in our country.
I thank from the outset every participant in this debate, for whom the striving for better life chances is not just an agenda item but a lifestyle: a cause that gets them out of bed in the morning and wakes them up in the middle of the night.
I am sure that much personal insight will be shared today. The noble Baroness, Lady Sherlock, has a towering reputation not only as a former chief executive of Gingerbread, which campaigns tirelessly for parents raising children on their own, but also played a crucial role in the riots commission. This body came to the very important conclusion that at least half a million families in this country were close to breaking point and has, I am sure, been a prime mover in the expansion of the troubled families programme. We are indebted to her; strong and stable families are the wellspring of good life chances and her work has obviously borne much fruit with the present Government and the previous coalition Government.
I am similarly eager to hear what the right reverend Prelate the Bishop of Truro has to say. As chair of the Children’s Society, he represents an organisation that has an impressive track record in championing all children and especially the most vulnerable. The noble Baroness, Lady Tyler, will I am sure have many insights from the time when she led Relate most ably before she came into this House. She has been a leader of cross-party efforts to ensure that mental health is at the forefront of all our minds. She also chairs CAFCASS, which assists families going through contested complex court cases at that most stressful time of divorce, separation and public law proceedings. Finally, the quality of representation from my own Benches could not be higher than those who have kindly put their names down to speak at such short notice—for which I am deeply grateful.
To set the scene, the championing of life chances by our Prime Minister is the maturation of a process that has unfolded over the 10 years that he has led my party. On his first day as leader he went to London’s Eastside Young Leaders’ Academy, which nurtures and develops the leadership potential of young African and Caribbean men—often living in disadvantaged communities—and enables them to succeed. Moreover, the first policy group he set up to give him the ideas that he would need to transform Britain was the Social Justice Policy Group, led by lain Duncan Smith and charged with looking at the full range of root causes of poverty. The focus desperately needed to be shifted away from the simple redistribution of money and on to tackling the drivers of the problems that poison life chances. As soon as he became Prime Minister, he asked Frank Field MP to lead a review on poverty and life chances. This again signalled his intent not to ignore poverty—this has never been the way of one-nation Conservatism—but to address it root and branch, broadening the focus away from the income targets that had impoverished the poverty debate.
The poverty plus a pound approach can callously leave people behind if, say, alcoholic parents are deemed beyond the concern of government when a financial transfer tips them over an income line but their lives and those of their children remain unchanged. Since 2010 a deep evidence base has been laid by one review after another: for example, on the importance of early intervention and the early years. These led in turn to the establishment of several What Works centres, such as the Early Intervention Foundation, which act as guardians of effective practice to improve poor life chances.
The new life chances strategy will stand on a sure foundation of academic research and tried and tested solutions that work across the whole of people’s lives to eradicate disadvantage. Similarly, the very concept of life chances has not just been plucked from a spin doctor’s playbook. It has an unimpeachable intellectual pedigree reaching back well over a century to one of the founding fathers of sociology, the German Max Weber. His concept of Lebenschancen, or life chances, is a social science theory of the opportunities that each individual has to improve the quality of his or her life. It is a probabilistic concept concerned with how likely it is, given certain risk and protective factors, that a person’s life will turn out a certain way.
I am sure that today we will be articulating not only what these risk and protective factors are—what will likely produce bad and good outcomes for individuals and families—but also how to boost the good and counteract the bad.
Chief among protective factors is the influence of safe, stable and nurturing relationships, which are essential foundations for human flourishing. If tiny babies, children, young people and adults do not have these, it is very hard to tackle the root causes and effects of poverty, such as addictions, serious personal debt, educational failure, mental ill health and worklessness. It is also nigh on impossible for those with disabilities to thrive if they do not have supportive relationships.
As I said in my maiden speech, my own origins were filled with shame, neglect and poverty, caused by my parents’ alcoholism and bankruptcy. My father died very early but bequeathed me a contact in a London Metal Exchange company, which enabled me to start my career there, albeit at the very bottom. This relationship gave me a much-needed starting opportunity as I did not cover myself in glory at school—partly, it must be said, because my family was collapsing around me.
I therefore speak from personal experience when I say that our epidemic levels of family breakdown act against the likelihood of having people to help one through adversity. Efforts to tackle this, particularly in our poorest communities, have to be front and centre of the life chances strategy. Two-thirds of children on our poorest estates are no longer living with both their parents by the time they are 15; half of them are in this position by the time they start primary school. This is not just about money: the stability of poor couples who are married is far higher than those who are not.
For example, we have to support marriage more effectively at the poorer end of the income spectrum, where its collapse has been most extreme yet where aspirations to marry remain high. Marriage is a social justice issue because it is so much harder to overcome cultural and financial barriers to marrying for those who are poor than for those who are comfortably off. Will the Minister take back to the Treasury the proposal that we should sharply increase the marriage tax allowance for those in the poorest parts of the country, where rates of single parenthood can be as high as 75%? Ironically, the money to do this is already in the budget because of the low take-up of the current trifling tax allowance.
Yet family support has to go beyond this. I have been speaking to Ministers across government about the need to have policies to support family stability in every single government department. We have universal healthcare, universal education and policies to encourage full employment, but all these social goods and reforms will be undermined by poor family functioning and the breakdown of relationships.
Universal family support, which would mean that all struggling families have somewhere to go where someone has the answers, such as family hubs, requires cross-government buy-in. The Department for Education has a clear interest but so do the Ministry of Justice, given the need to support prisoners’ families in the community, and the Ministry of Defence, which has thousands of service families who would also benefit—to name just two. This debate will, I am sure, cover many different areas, and it is clear that there will be no lasting success in any of them without several government departments and organisations working well together. Will my noble friend the Minister lay out what is being done to make sure that this is the case?
I reiterate the potential for good that our time together today holds. One of the paramount roles of good government is to ensure that everyone has the opportunity to flourish, whatever their starting point. This debate will, I am sure, brim with ideas and examples of good practice, and I look forward to seeing the trace of our passion expressed today in the life chances strategy shortly to be unveiled.
Welfare Reform and Work Bill
Lord Farmer Excerpts(10 years, 3 months ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Farmer (Con)
My Lords, I am sure I speak for many in your Lordships’ House when I say how pleased I was that funding for the troubled families programme was extended into this Parliament and that the Bill will create a statutory duty to report on our progress in supporting these families with multiple, highly complex problems.
In more than one in 10 of the original troubled families on the programme, an adult moved off benefits and into continuous employment, which was a huge achievement since, on average, troubled families in the first programme had nine serious problems to overcome. Surely I am not being too optimistic in assuming that this reporting obligation signals an intent on the part of this Government to keep helping such families in the most effective ways possible and to renew the necessary funding.
Although ongoing accountability and financial commitment are obviously essential, I have to confess to a nervousness about the wording of Amendment 70, which talks about,
“the adequacy of resources given to local authorities”.
My understanding of when and why troubled families programmes have worked best is that one crucial common factor has been the wider system reform that the funds have helped to effect. In early speeches about the intent of the programme, a recurring theme was that if social services were to help families turn themselves around, this would require the service landscape in a local authority area to be no less transformed itself.
The Government never intended to foot the bill for business as usual but to make a contribution on a payment-by-results basis to the bigger prize of system reform. Local authorities would not get the results they needed on the per-family spend alone—indeed, the first financial framework document published in 2012 was explicit that they would get only up to 40% of the unit cost of the intensive interventions that work with this group of families. Government were priming a pump, not signing a blank cheque. This should remain the guiding principle: a level of funding that incentivises services such as the police, health and social services to work more closely together to reduce costs, not a level of funding that is adequate in isolation to fund the support provided for troubled families.
This brings me to Amendment 71 in the name of the noble Baroness, Lady Manzoor. She argues that the report should specify which types of interventions were used and which were a success or failure. But this seems to ignore the evidence that a whole system has to become relentlessly focused on supporting families across the spectrum of need if a local authority can truly be deemed to be successful. Taking an intervention-level approach runs the risk of ignoring the importance of synergy and the whole-system emphasis also seen, for example, in the way in which Ofsted is now examining the entirety of a council’s services to support children, using the single inspection framework.
Local authorities, such as the Isle of Wight, which have gone through profound reform, have integrated their troubled families work and funding with early years obligations, delivered through children’s centres, by forming family hubs. These help families with children right up the age range and across the spectrum of need, so are able to offer early help as well as the more intensive help typically associated with troubled families. This is highly relevant, given the Prime Minister’s recent announcement that local authorities which fail to safeguard children adequately will be taken into special measures, because that is what happened to the Isle of Wight. It was taken over by Hampshire, forced to rethink all its children’s services and make prevention of harm the watchword. It is now modelling a better offer for all families.
Increasingly, family hubs are the visible manifestation of a system that integrates troubled families work with full-spectrum support in a sustainable financial envelope. Surely the future lies in evidence-based interventions being locally tailored into better functioning systems. I am not convinced that reporting at the level of interventions would capture the most important learning, which is surely the priority.
Lord Beecham (Lab)
I spoke today to the officer in Newcastle who is responsible for the programme. We do not call it the troubled families programme in Newcastle; we call it the families programme. The noble Lord, Lord Kirkwood, is right to say that we need a title that does not imply some kind of stigma.
Newcastle has been extremely successful in the way in which the present scheme has been working. However, it was interesting to learn in a little more detail from the officer in question—I declare my interest as a member of the city council—what is occurring on the financial front and with progress on the ground.
In moving her amendment—I support both amendments in this group—my noble friend Lady Sherlock referred to the financial basis that was initially for a grant of £3,900 or £4,000. Two-thirds went on a fee for mounting the programme, while the other third went on a success fee. That has been turned around so that the larger proportion is spent on the success fee. Now, of course, the amounts have been reduced by roughly a third, so the total figure is in the order of £2,600 although, as I have said, the proportions have been reversed. That may in itself be a source of some difficulty.
However, other issues need to be considered. One of the criteria is getting people into employment. Of course, that is important and makes a significant difference, but those criteria will not necessarily apply evenly across all the relevant authorities. It will, frankly, be more difficult to get someone into a job in Newcastle and other parts of the north-east than in some other parts of the country, simply because of the state of the local economy. Too much weighting on that one factor could be regressive. That needs to be considered.
Then there is the question of what outcome we are looking for from the programme and, in particular, whether we are looking over a sufficiently long period to be able to judge what is happening and what is successful. I hope that, in any kind of survey of what is going on, we can take that long-term view—over several years rather than only two or three—to see what approaches have paid a dividend.
Another aspect that occurs to me is that the Labour Government made a mistake, frankly, in dividing children’s services from adult social care. I was chairman of the social services committee in Newcastle in the early 1970s, when the two services had been brought together. Dividing them, particularly in the context of families, is potentially difficult. It means that you are working across departmental boundaries, possibly less efficiently than would otherwise be the case. It is time—not only from the perspective of troubled families but generally, given the pressures on social care and children’s services collectively—to reopen that issue. It is worth revisiting whether that decision is now applicable.
The noble Lord, Lord Farmer, referred to changes and savings that might be made. We must bear in mind that at the moment—I speak with some unfortunate knowledge of what is likely to happen in Newcastle—financial pressures are such that we will see significant cuts in both adult social care and children’s services. We will lose experienced staff because we are facing a reduction of some £32 million in the resources available to the authority. I suspect that, to a greater or lesser extent, that will be the case across much of local government, particularly in the areas with greatest need.
Although it is obviously right to bring people together as far as possible, so that we do not have a succession of different bodies or individuals working with the families in question, it will stretch the capacity of local authorities to be able to cope with this without depriving some other potential or current recipients of the support they also need. We need to look at the totality of funding across the range of services provided by local authorities and their partners in the health service and elsewhere to deal with these issues.
Both amendments encapsulate the correct approach: we should regularly be taking a significant look at what will be a long-term programme. I return to the point made by the noble Lord, Lord Kirkwood, and encourage the Government to change the name, because it implies a certain stigma and it would be better if more neutral terminology were applied.
Welfare Reform and Work Bill
Lord Farmer Excerpts(10 years, 4 months ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Farmer (Con)
My Lords, it is a great pleasure and an honour to follow my noble friend Lord Polak—I am not sure he can hear me as his left ear is to this side—particularly after a maiden speech that was remarkable for both its humaneness and its humility. The tone he struck rings completely true for those who, like me, have known my noble friend in his previous incarnation as director of Conservative Friends of Israel and now as the organisation’s unsalaried honorary president. I have always been moved and touched by my noble friend’s consistent work in improving relations between Britain and Israel for the common good of each country. He will, I am sure, make a uniquely valuable contribution to the work of this House. We welcome him to us.
I am pleased that this important debate has also enticed other new Peers to make their voices heard in this Chamber. I congratulate my noble friends Lord Lansley and Lord Lupton on their impressive contributions. Given her important role in designing universal credit, I am particularly looking forward to hearing the contribution from my noble friend Lady Stroud, and I want to acknowledge how fitting it is for to make her maiden speech in this debate. What better occasion to express the compassionate and one-nation conservativism—and I believe it is—that is not a new-fangled device cynically constructed to sweeten the bitter pills of difficult decisions? Rather it has a deep seam of tradition and a valued history in our party that goes back to Disraeli, Baldwin, Chamberlain and Butler—and today reaches Iain Duncan Smith and the Prime Minister.
As my noble friend Lord Polak said, government must take responsibility and it is vital to remember what the coalition inherited in 2010: a welfare system run by 35 different IT systems and a monster of complexity that constantly had to be fed and kept satisfied by myriad accretions of former Conservative and Labour Administrations alike. As he entered the last days of the 2010 election campaign, Gordon Brown promised a tiny toddler tax credit of just £4 a week, threatening to add further confusion to a system of 51 different benefits even highly numerate people found extremely difficult to understand.
In 2005, the National Audit Office said:
“Simplification is not an easy option. Radical reform is a rare, costly, time-consuming, and potentially controversial act”.
So it is hugely to their credit that the coalition Government embarked on the costly and ambitious project of root-and-branch welfare reform, so that we did not repeat the mistakes of previous downturns, when it became pointless for claimants who fell on hard times to get back into work. We urgently needed a system with an internal dynamic that responded to extra effort and other kinds of behaviour we want to see across the whole working-age population—and in the rising generation for whom they are role models—so that they benefit from the better health, social networks and sense of achievement and self-esteem that comes from earned, but not benefits, income.
The starting point of universal credit was the need to tackle relative poverty effectively. In the boom years of the mid-2000s, the DWP’s households below average income statistics showed that someone who had spent five years in low income had no more than a 10% chance of escaping poverty the next year. Large tranches of our population, often concentrated in poorer communities, were locked out of the record growth this country had been enjoying to 2008.
In 2009, by the time the recession had well and truly begun to bite, 5.9 million people were claiming out-of-work benefits, but throughout the preceding decade of high growth that number was only 500,000 lower. This speaks of a structural problem: high-participation tax rates preventing people in precarious economic circumstances moving into work and high marginal tax rates deterring them from working longer hours and progressing. Now, however, the British jobless rate has decreased to 5.3% and is at the lowest level since April 2008, when employment was at a record high.
Yet getting people into work is not the only priority. My understanding is that the ambition of ongoing welfare reform is to help people secure more hours and progress to better rates of pay so that they eventually no longer need tax credits at all. The 2009 Family Resources Survey showed that one in seven households were dependent on benefits for more than half of their income, and this may still be the case. Could the Minister explain to what extent underemployment, particularly as a result of working part-time, is contributing to low earnings, and not just unacceptably low wages? Surely progression towards full employment must distinguish between full-time and part-time work so that the Government hold themselves fully to account.
There were also penalties in the system that discouraged people from activities that could decrease their dependency over the long term, such as forming a stable family unit. Couples who had previously claimed as single people stood to lose far more income from benefits by moving in together than they saved through the economies of scale of sharing a home. If they were simply cohabiting, many continued to claim as single parents. In 2013, ONS and DWP figures suggested that well over 200,000 couples were pretending to live apart, with the couple penalty in tax credits a likely prime mover in this particular form of benefit fraud.
Married couples cannot hide their status and this is surely a major contributor to the social gradient in marriage. Wave 3 of the Millennium Cohort Study found that around half of new parents on a low income are married, compared to nearly 90% of those earning an annual salary of more than £52,000. Given the far greater stability of marriage, this has a terrible knock-on effect. Sadly, only half of children in poor families are still living with both their parents when they start school, compared with over 90% of those from higher- income families. Can the Minister explain what progress has been made in reducing the couple penalty in universal credit?
While on the subject of fraud, which is, after all, stealing from the taxpayer, your Lordships should also be aware that a tax credits system that pays for every child has created perverse incentives—for some migrants, for instance. Social workers in the borough of Westminster have made known to me that some are bringing in a large number of children, at least some of whom are very unlikely to be their own. If children are being treated as cash cows by exploitative adults, this is wholly unacceptable and must be exposed. It also puts the two-child limit for new claimants into a somewhat different light from what we have heard today.
To conclude, I was encouraged that, at earlier stages of welfare reform, noble Lords across the House acknowledged how complex, burdensome and inefficient our benefits system had become under successive previous Governments, and that universal credit offers a desperately needed runway out of poverty at a time when deficit reduction remains a pressing concern. The challenges predicted by the National Audit Office have been significant but surmountable. Universal credit is being relentlessly rolled out, and well below budget. I hope that the Bill will be similarly welcomed and given co-operative support, and that we can work together to ensure that this Government fulfil their elected mandate—for the common good.
Universal Credit (Waiting Days) (Amendment) Regulations 2015
Lord Farmer Excerpts(10 years, 8 months ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Farmer (Con)
My Lords, while the noble Lord, Lord German, and the noble Baroness, Lady Sherlock, raise important points for consideration, I have to disagree with them both and speak against these Motions. In fact, I would go further and say that in the light of the £12 billion taken out of welfare in last week’s Budget, I am surprised that they are asking the Government to find yet more savings in other places. This is the implication of these Motions.
The waiting days measure, which is consistent with the wider landscape of welfare in this country, is projected to save around £150 million per annum, although there may be some debate on that. Indeed it is a save-to-spend measure, and so removing the housing element and delaying implementation will sharply decrease the amount of funding available for a number of programmes to get people off benefits and into work. I think noble Lords would all agree that we need to make the best possible use of taxpayers’ money and focus spend here. So I am concerned that, in particular, the proposed Motions will curtail the amount of help the Government can continue to give the long-term unemployed, such as quarterly work search interviews for all claimants and voluntary programmes available to lone parents with children aged three to four years old to help them become work ready.
I have been reading the Government’s response to the Social Security Advisory Committee and note that the SSAC’s recommendation to take housing benefit out of the waiting days regime would cut savings by around a half to two-thirds, costing £70 million to £100 million, as well as increasing the complexity of the universal credit payment from the point of view both of IT and the user. The onus is therefore on those tabling these Motions to say where they would cut the £70 million to £100 million to enable these important initiatives that started last year to continue.
Looking first at the concept of waiting days before entitlement to employment-related support, noble Lords will be aware that waiting days have been a long-standing feature of the benefit system and already exist in other working-age benefits, such as jobseeker’s allowance and employment and support allowance. In addition, it must be recognised that many people who make a new claim for universal credit will have come from a previous job and will therefore have final earnings or other income to support themselves until their first benefit payment.
Again, taking this approach to universal credit is consistent with the wider benefit system, which is not designed to cover very short periods of unemployment or sickness. Waiting days are also more consistent with the world of work, where very short breaks between jobs are unpaid as no employer is receiving the benefit of any work. This Government’s determination to ensure as far as possible that welfare mimics the world of work is the right approach.
It is my understanding that the safety net for vulnerable people is not being dismantled and that a number of groups are exempt from this change, including people who are terminally ill, victims of domestic abuse, care leavers, 16 to 17 year-olds without parental support, and prison leavers. Also, those who are in work and receiving universal credit who lose their job will not be subject to waiting days as they are already in the system.
I was pleased to read about a range of other targeted exemptions, which seem to be a better use of scarce public funds than treating all people as equally in need. I am, however, concerned about those who are long-term unemployed and have no savings or incoming final payment, and this is where it is vital that claimants receive timely and effective personal budgeting support as well as, if necessary, cash support in the form of a universal credit advance. Again, I would say that this Government are right to take a more finely grained approach and help those who particularly need support in the very short term, instead of assuming that everyone is in the same position.
I turn to the other elements of universal credit not tied to employment support, especially the housing benefit element that is the concern of the Motion of the noble Lord, Lord German. My understanding is that as universal credit is simplifying the welfare system, not least to make work pay, it would run counter to that goal to treat the housing element separately. I think that this was said earlier, but paying universal credit as a single monthly sum to households aims to help to prepare claimants for the world of work or to keep them in that mindset when they drop out of the labour market.
Quite rightly there is an expectation placed on households to manage their own budgets. Obviously housing costs do not cease when someone finds themselves having to move on to universal credit, but neither do they cease when someone is between jobs. However, I was relieved to find out that protections are in place for tenants who fall into arrears and alternative payment arrangements are available. In other words, it is not a sink-or-swim situation but we are encouraging the norm that very many of those who are in work try to live by, which is saving something for a rainy day.
In summary I support the Government’s position on waiting days, on the grounds that when there is such a tight financial settlement it is imperative that the welfare system is simple but concentrated on those who need it most. However, I echo the Social Security Advisory Committee’s plea, which we have just heard, that this change be subjected to the test-and-learn approach that was a hallmark of welfare reform under the coalition Government. It is essential that we can irrefutably say that the exemptions and other fine print of the waiting days measure are delivered as promised.
The Minister of State, Department for Work and Pensions (Lord Freud) (Con)
Before considering the individual arguments, I think it would be useful to understand to whom exactly waiting days actually apply. It is not the most vulnerable: care leavers, the terminally ill, victims of domestic violence, youngsters without parental support and prison leavers have all been exempted. It is not those coming from other benefits such as jobseeker’s allowance or employment and support allowance. We have to remember that because universal credit is a benefit for low-income people in work as well as a safety net, many people in low-income and unstable employment will remain on universal credit as they move in and out of work. Hence, the very people for whom much of the concern has been expressed today will not be affected.
Noble Lords, and indeed the Social Security Advisory Committee’s consultation, highlighted a series of examples of cases that might be affected. These included the effect on a single mother reducing her hours to care for her sick child; the effect on those who have not been able to build up a cushion for a rainy day because they have been in low-paid work, on zero-hour contracts or in in-work poverty; the reluctance of claimants to take short-term employment as they fear they may have to serve waiting days again when the job finishes; the concern of landlords that their tenants might not be able to pay their rent because they lose a week’s housing and the disproportionate effect that that will have in London; and the fear that low-income people may borrow from payday lenders and loan sharks to keep afloat, a point made by the noble Lord—I find it hard not to call him my noble friend—Lord German.
I understand why these examples cause concern. They would cause me concern, too, if I was not confident that in such cases waiting days would not affect the most vulnerable. The single mother, the low paid, and zero-hours contract workers will most likely already be on universal credit while in work if their income is low. If on universal credit, they will not serve waiting days. Even if a person on a zero-hours or a short-term contract comes off universal credit, they will be exempted if they reclaim within six months. People moving from other legacy benefits are also exempted.
Universal Credit (Work-Related Requirements) In Work Pilot Scheme and Amendment Regulations 2015
Lord Farmer Excerpts(11 years, 2 months ago)
Grand CommitteeRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Farmer (Con)
My Lords, rolling out universal credit and optimising such a colossal and innovative system without an iterative process of trial and error should be inconceivable. I am grateful for the opportunity to discuss these regulations because I see them as a sign of a fresh wind blowing through large-scale publicly funded social policy projects, which is an unapologetically experimental approach, as the Minister said, in the most robust sense of the word.
I also understand a randomised control trial methodology is to be implemented, as the Minister said, and it is the gold standard when it comes to experimental design. I am not a social scientist: I am a businessman and conscious that writers such as Jim Manzi, as has been mentioned, have been taking my world by storm by insisting that leaders there can and should use what he refers to as RCT experiments to test decisions in a controlled, low-risk environment before committing their firms and shareholders to large-scale and expensive changes.
We owe it to the people who are the subjects of similarly large-scale social programmes and the taxpayers who fund them to test what we think will work best and learn from that process whether they are in fact being aided effectively and cost-effectively. Both are important.
The Washington State Institute of Public Policy has led the world by raising the bar for policy development in this regard. All sorts of approaches might make a little difference but let us sink our resource into the ones that will help people make the most progress. Honing the many facets of the most effective approach requires the iterative and flexible piloting legislated for in Section 41 of the Welfare Reform Act on which these regulations are based.
As one who is used to having a free hand when it comes to undertaking the necessary fact-finding and research prior to investing my own and my clients’ money, I want to emphasise how innovative and important this flexibility is. As we have heard, static trials have been the standard fare of DWP research contracts but the Minister has already made clear how innovative the proposed assistance is. We have to roll out in-work support that ultimately could help hundreds of thousands to escape a low-income existence while, at the same time, testing and adjusting the assumptions different forms of support are resting on for a wide range of diverse people.
Moreover, it is my understanding that the DWP expects about 1 million universal credit claimants to fall within the “working but could do more” category. If the department wants to help such an enormous and diverse cohort effectively, it seems entirely appropriate that a flexible research model is adopted.
However, I have some questions. First, what does the 1 million figure represent as a percentage of all universal credit claimants and what benefits in terms of cost savings might there be to the country if people can be consistently helped to overcome barriers to raise their wages? In other words, what is the great prize that these trials can place within our reach?
Secondly, I am pleased to learn from the September 2014 minutes of the Social Security Advisory Committee that detailed guidance will be given to work coaches on the pilot, so that anyone randomly chosen to take part in this test-and-learn approach who is deliberately working fewer than full-time hours in order to get a business off the ground will not be forced to take part. A research agenda must not become the tail that wags the dog. Forcing someone to accept help to build up their hours when they are already taking steps to improve their circumstances and possibly even to employ others would be a perverse use of public time and money. It would also undermine the purpose of the trial.
Obviously, there need to be two-way safeguards. Selected claimants may be particularly concerned about complying with all the requirements placed on them under universal credit, not least to avoid sanctions, as they may be in a financially precarious position. They may not realise that there are exempted categories in the guidance. Will the Minister give an assurance that all people who are chosen for trials will be made fully aware of the characteristics, including permanent disability, that mean that their involvement is not mandatory? Given the lack of public and media awareness of exemption for many disabled people from the withdrawal of the spare-room subsidy through the use of discretionary housing payments, I suggest that all effort is made to make this clear from the outset, to avoid much worry and the proliferation of misinformation.
Thirdly, although my head believes that flexibility is indispensable, in my heart I worry a little about the power over claimants’ lives that these regulations are giving to researchers. The Minister mentioned tailoring and tweaking. The 21st report from the Secondary Legislation Scrutiny Committee referred to the very broad nature of the powers permitted by this instrument and raised similar concerns to mine over the transparency of research design and process. Will the Minister say how we will know when researchers have made modifications to these? As the Secondary Legislation Scrutiny Committee also asked, what controls will exist on the extent of these trials?
Finally, my wholehearted support is behind this Government’s ambition to help a million universal credit claimants to increase their earnings, but is the money to embark on this vast exercise in the departmental business plan for universal credit?
Lord German (LD)
My Lords, I start by thanking the Minister for giving us an update on where we are with universal credit—27,000 people and 100 jobcentres. I wonder whether I can tempt him to tell us where we might be by the end of April, for example, with the number of people who are receiving universal credit and the number of jobcentres that are supplying it. It is important to note what progress we are seeing.
In-work progression, which is the target that this pilot and these regulations are trying to attach themselves to, is one of the challenges of the next five years. I believe that we will find that this area requires a great deal of attention. It is an issue that relates to a drop in unemployment, so we have to make sure that those who are in employment are given the best possible hand-up and help. I could not help having a wry smile when my noble friend referred to the way in which DWP does this sort of trialling, saying that it was unique and distinctive. I congratulate him on that because we need to find out how universal credit has been doing. As you find out, you adjust, you change and you move on, rather than having a simple blanket approach, which is a recipe for difficulties in the future.
However, there are issues, and I welcome the comments of the noble Lord, Lord Farmer. I particularly welcome what he said about the wind of change. I wonder whether this is a sign of Harold Macmillan coming back to see us again and a revitalised way of looking at social policy. I raise that as an interesting point.
Child Poverty Act 2010 (Persistent Poverty Target) Regulations 2014
Lord Farmer Excerpts(11 years, 4 months ago)
Grand CommitteeRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Farmer (Con)
My Lords, I believe that it is important to acknowledge that poverty rates, and persistent poverty in particular, will not be beaten down to the small number of 7% that we are talking about today—which is, rightly, the Government’s target—by means of financial assistance alone. The root causes need to be addressed in the total war against poverty that it is morally and pragmatically necessary to fight. The Joseph Rowntree Foundation, which my noble friend mentioned, and others have made the persuasive and well evidenced case that no country can afford to keep paying the costs of poverty, not least in terms of lost human potential. Therefore, I encourage the Government, in their various policies for tackling persistent poverty in children and adults, to come at this problem from as many angles as research has shown are necessary.
The 2014 social justice progress report, which has just been published, led on the recognition that family breakdown, divorce and separation, father absence, and dysfunction are drivers of poverty, not just a result of it. The report says that,
“family breakdown and other risk factors—worklessness, educational failure, mental health or drug and alcohol dependency—can feed off one another, compounding their effects, and leading to outcomes that can be very damaging for those affected and costly to society as a whole”.
Yesterday, the front page of the Times revealed that almost two-thirds of children felt that their parents’ break-up affected their GCSEs. One in eight had turned to drugs and alcohol to ease the stress, while almost a third were at risk of developing mental health problems in the form of eating disorders. Put that alongside the fact that two-thirds of 12 to 16 year-olds in the poorest households have seen their parents separate, and it becomes clear that the full effects of family breakdown will hit the poorest the hardest. Poor family functioning also gives children a very poor start in life, so this Government are to be applauded for their investment in the troubled families programme, about which we have just heard, as well as the Family Nurse Partnership Programme and other approaches aiming for the transformation of children’s life chances. This is the much bigger prize to be won, as opposed to merely moving their parents’ income across a somewhat arbitrary line.
However, we must not mistake the battle for the war. This Government have been courageous in putting family breakdown on the policy agenda for the first time ever but 40 years of negative family trends cannot be reversed in one term and with the somewhat restrained approach which we have seen to date. Divorce and separation carry a £46 billion price tag, yet only £7.5 million is spent on prevention. This is 0.02%, or less than one five-thousandth, of the costs that the policy is trying to save. Marriage is the far more stable family form yet the transferable tax allowance for married couples is worth a meagre £200 per family per year. This is a vital form of assistance to single-earner families who are not eligible for any childcare subsidy. It should be at least doubled for families with young children, so that they have a little more choice about mum and dad staying at home for the few short years of infancy. I believe that this would cost an additional £480 million per annum—money well spent.
Finally, the Government’s groundbreaking family stability review is deemed to warrant only a scant couple of pages in the social justice progress report. It must be published in full because of its fundamental importance for local authorities. They have to construct their own local child poverty strategies and urgently need to commission on the basis of the evidence contained in that review. I urge my noble friend to look again at the policy base for tackling family breakdown and consider strengthening it in the interests of hitting the persistent poverty target that he has set through these regulations.
Universal Credit
Lord Farmer Excerpts(11 years, 4 months ago)
Lords ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Lord Freud
We conducted a painstaking process of testing how people respond to paying their housing rent directly. We found that there was a three-month adjustment process until people got familiar with it. We are now ensuring that we have the right systems to help people make that adjustment into the monthly payment situation.
Lord Farmer (Con)
My Lords, the principles of universal credit are sound, but timings and cost to the public purse are vital considerations. Can the Minister tell us when all claimants will be on universal credit and how much it will cost to reach this point?
Lord Freud
In the last strategic outline business case the costs of the programme to 2023-24 were £1.8 billion. That is down from the £2.4 billion figure that we had in 2011. Under that case, we anticipate that the bulk of the exercise to transfer people on to universal credit will be completed by 2019.