Free School Lunches and Milk, and School and Early Years Finance (Amendments Relating to Universal Credit) (England) Regulations 2018

Lord Freud Excerpts

Tuesday 20th March 2018 Lords Chamber

[Lord Lexden (Con)]

My Lords, the noble Lord, Lord Bassam, made his case with characteristic vigour and force, and with deep feeling as he recalled life in the 1960s in a part of Essex with which I was very familiar myself. The Motion states that up to 1 million poor children could be deprived of free school meals as a result of government policies. As my noble friend Lord Patten has shown, independent experts have urged us to treat this truly alarming prediction with considerable caution. We should be wary about rushing to the conclusion that a crisis is in the making.

It is accepted on all sides that the introduction of universal credit throughout our country, so vital in helping more people into jobs, will affect the number of children eligible for free school meals while ensuring that poor families, whose needs must be safeguarded, remain at the centre of policy. Interim arrangements were announced last summer to secure free school meals for all pupils whose parents were at that time recipients of universal credit. Future recipients will be subject to a means test as regards the provision of free school meals to their children. There is nothing new or unexpected about this. It has been a feature of the plans for this major, constructive reform of our welfare system since 2013.

What are the implications? The Department for Education estimates that, in the years ahead, some 50,000 more children will be entitled to a free school meal than under the arrangements which universal credit is replacing. That is welcome reassurance, but the Government should perhaps consider some form of monitoring. I wonder whether arrangements could be made to publish at regular intervals between now and 2022 authoritative figures for the number of children actually receiving free school meals so that the effects of this hugely significant change of policy can be assessed. We need to be sure that the poorest families in our country continue to receive the help they need.

[Lord Freud (Con)]

My Lords, I want to pick up on two statements made by the noble Lord, Lord Bassam, one of which I agree with and one of which I do not. The first and possibly more substantial statement is the claim that 1 million children will lose out and that the new threshold of £7,400 changes where the line is between when people have free school meals and when they do not. This figure was chosen to try to find the right level for continuing to make that provision, so I disagree with the noble Lord there.

However, where I agree with the noble Lord, as well as the noble Baroness, Lady Sherlock, and the right reverent Prelate the Bishop of Portsmouth, is on the disincentivising effects of what is almost the only cliff edge—rather than a cliff edge, it is almost a waterfall effect; it is more waterfall than the cliff edge that we are used to. Nevertheless, it is there. SSAC produced a report four years ago, which I commend to the House, looking at what we could do with passported benefits generally in order to incorporate them within universal credit and eliminate not just free school meals—there are others, such as prescriptions—and put them within the taper in a way that did not have a cash-flow impact. The report suggested a structure that the DWP response endorsed.

As SSAC pointed out, we have the most passported benefits of any country—they have proliferated—and we need a mechanism to add to universal credits and put them on a taper so that we do not have a disincentive effect. The DWP and this House care about disincentivising work, but other departments do not—they worry about feeding children and so on—so it is important to keep up the pressure in the years to come so that we do not allow these cliff edges or waterfalls to be reincorporated into the system. To do that we will have to design a way of putting the passported benefits into universal credit.