Child Poverty

Margaret Greenwood Excerpts

Tuesday 20th December 2016 Westminster Hall

[Margaret Greenwood (Wirral West) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Davies. I thank my hon. Friend the Member for Barnsley Central (Dan Jarvis) for securing this debate and his long-standing commitment to this issue. He made an excellent speech highlighting the scale of the crisis. The fact that, typically, nine children in a class of 30 are growing up in poverty is a stark image indeed. I wholly concur with his assertion that no child in Britain should grow up in poverty and that should be a priority for the Government. I hope that the Minister will respond to his key question and say what the Government’s position is on establishing a child poverty target.

Many other Members also made excellent contributions. My hon. Friend the Member for Stretford and Urmston (Kate Green), who has a great deal of experience in this area, made a compelling speech. My hon. Friend the Member for Walsall North (Mr Winnick) alluded to the problems with funding for nursery education, which is certainly an issue in my constituency, and several Members mentioned the importance of early intervention and early-years education. My hon. Friend the Member for Bishop Auckland (Helen Goodman) made a good speech about the impact of the changes made by the last Chancellor in the last Budget on people in the bottom third of the income distribution. The hon. Member for Glasgow North West (Carol Monaghan) spoke about her personal experience as a school teacher of poverty’s detrimental impact on children’s ability to learn. My hon. Friend the Member for Bristol East (Kerry McCarthy) mentioned the school holiday programmes that provide food for children in poverty who would otherwise go hungry during the summer weeks.

As my hon. Friend the Member for Barnsley Central made clear, we face a child poverty crisis under this Government. Today, 29% of children in the UK live in poverty. That is not just about not going on holiday or not having treats; it is about not having enough to eat or get by, being cold in winter, not having shoes that fit and struggling to survive. The Resolution Foundation estimates that in 2016 alone 200,000 children, predominantly from working households, will have fallen into poverty. That is on top of the Institute for Fiscal Studies’ projection, which has been alluded to, that the falls in child poverty that a Labour Government achieved at the beginning of this century risk being reversed.

There was a comprehensive strategy to tackle child poverty across the last Labour Government, which is something that our party is proud of, with interventions such as Sure Start and increasing existing social security and new, child-targeted assistance and investment in early years intervention, along with programmes to help lone parents into work. That wide range of actions increased incomes and provided tailored services to help families living in poverty. The recent news that the child poverty unit, set up under the previous Labour Government in an effort to eliminate child poverty, has been abolished is very concerning indeed. That shows that child poverty is becoming far less of a priority for this Conservative Government. Surely we can only tackle child poverty effectively through a concerted strategy across Government.

The Child Poverty Act 2010, brought in by the Labour Government, set four key targets to be met by 2021. They ranged from reducing the proportion of children who live in low-income households to reducing the number of children who experience persistent poverty. However, counterproductively, the current Government decided to abolish the numerical targets based on household income in the Welfare Reform and Work Act 2016 and replace them with a life chances strategy, which has measures such as educational attainment and family breakdown. By removing income targets and focusing on life chances, the Government are failing to tackle the cause of child poverty: lack of money. Growing up in poverty affects children for the rest of their lives. It is in every sense a life sentence.

The life chances strategy was scheduled to be published as far back as June. Now, questions from my hon. Friend the Member for Barnsley Central reveal that the Government will not publish it at all but will instead publish a Green Paper on social justice in the new year. Does the Minister agree that measuring household income is an important means of assessing the prevalence of child poverty across the UK? Will she assure the House that in any new proposal she will retain recognised indicators of income-related poverty?

Thankfully, a defeat in the House of Lords forced the Government to retain a legally binding commitment to measure and publish the number of children living in families on low income. However, that does not mean that they are required to publish a child poverty strategy every three years. Now we learn that it is no longer Government policy to try to eliminate child poverty at all.

The Government have introduced major changes to the social security system that have hit families with children hard. Supporting families to achieve and maintain an income that enables them to meet their needs is a vital element in giving children a good start in life. The major change to the social security system will be the reduction in the amount that someone can earn before their universal credit starts to be withdrawn. Single parents will be hit particularly hard. For example, from next year a single parent with two children working full time on the national living wage will receive £2,586 less a year under universal credit than someone claiming tax credits. The Child Poverty Action Group estimated that a single parent working full time on the national living wage would effectively have to work an extra two months each year to make up for that loss in income. It is utterly impossible for them to do that.

The cuts to work allowances are significant because of their impact in increasing in-work poverty. According to the Joseph Rowntree Foundation, the proportion of people in poverty in a working family is 55%, which is a record high. Four fifths of the adults in those families are themselves working—some 3.8 million workers. Those adults who are not working are predominantly looking after their children. Is the Minister concerned that, as a result of her Government’s cuts to universal credit, the huge gains the Labour party made in lifting more than a million children out of poverty will be undone? The Government’s tinkering with the universal credit taper rate at the autumn statement will not address the losses incurred as a result of their previous changes to work allowances.

The Government have promised to make work pay, but that is not happening for the three quarters of children in poverty who are in working families. Will they now reverse cuts to in-work support through universal credit? There is overwhelming evidence that child poverty has a direct causal impact on worsening children’s social, emotional and cognitive outcomes. Anyone who has been a teacher—many in the House have been—will have direct experience of that. The very wiring of the brain is affected when children are brought up in poverty. A hungry child cannot learn.

A British Medical Association report published in September highlighted the impact of austerity on children’s health, from increased mortality rates to the likelihood that children growing up in poverty may face greater health problems in later life. A secure, warm home and healthy, nutritious food are basic physiological needs. When those needs are not met, people’s health suffers both physically and mentally. That is particularly the case for children as they are still developing. Being in work or well educated cannot guarantee those essential needs will be met, but having money can.

If the Government will not be moved by moral arguments, perhaps they will be by the economic arguments. The failure to tackle the root causes of child poverty will result in losing a whole generation of future talent and untapped potential. The implications for these children and their families, but also for the country, are stark, yet the Government have cut the staffing of the Social Mobility Commission to the point that it now has more members than staff.

The Prime Minister has abandoned her pledge, made on the steps of Downing Street, to support families who are struggling to get by. I urge the Government to rethink their position on child poverty and reinstate the targets before it is too late.

Supported Housing

Margaret Greenwood Excerpts

Tuesday 29th November 2016 Westminster Hall

[Margaret Greenwood (Wirral West) (Lab)]

I thank my hon. Friend the Member for Bermondsey and Old Southwark (Neil Coyle) for securing today’s debate on an important topic, and for giving such a balanced picture of the impact of Government policy. We have heard important contributions from hon. Members across the House, including the hon. Member for Waveney (Peter Aldous), who spoke of the shadow of uncertainty over the sector—something that I think everyone present will recognise—and described concern about the development of a postcode lottery. He called for a one-nation solution.

We heard contributions from my hon. Friend the Member for Coventry South (Mr Cunningham) and from the hon. Members for St Ives (Derek Thomas), for Taunton Deane (Rebecca Pow), for South Down (Ms Ritchie), for Linlithgow and East Falkirk (Martyn Day), for Kilmarnock and Loudoun (Alan Brown) and, of course, for Strangford (Jim Shannon). The hon. Member for Strangford spoke about the importance of providing appropriate accommodation for people with mental health issues. The hon. Member for Banff and Buchan (Dr Whiteford) did a good job of summing up the debate, and dealt particularly with the point that the special needs that make people eligible for supported housing can also make it harder for them to find employment. I think that all hon. Members would agree that money spent to keep people living in their constituencies is money well spent.

As has been said, the Government plan to cap housing benefit at local housing allowance levels for people living in supported housing schemes and to introduce a reduction of social rents in England of 1% a year. The housing benefit cap will force the closure of tens of thousands of supported homes for people most in need. The National Housing Federation predicted that 82,000 specialist homes would be at risk of closure if the cap and rent cut were implemented. Why the Government would pursue such destructive policies, which will drastically decrease the amount of supported housing that is available, is a question that still needs to be answered, especially when a number of national studies have demonstrated that supported housing services provide excellent value for the public purse. That is particularly true in relation to keeping the costs of health, care and criminal justice down—something that several hon. Members have mentioned.

Supported housing is one of the fundamental building blocks of independence. It includes a variety of schemes designed to provide both housing and support to help vulnerable people live as independently as possible in their community. Supported housing in the community is vital to the wellbeing of those people, and presents the best opportunity for them to take control of their lives. That is exactly why the Government must ensure that there is good local supported housing. Will the Minister explain what the Government are doing to ensure that the supported housing sector is properly funded to provide a vital service to vulnerable people?

Supported housing is a lifeline for people in vulnerable and sometimes dangerous situations. It is a way for vulnerable people to maintain their dignity and a degree of independence. Those are real people, with real problems, who need our support during these hard times. They are not statistics, or potential savings. They are domestic abuse survivors escaping abusive partners, older people in need of additional support, people with mental health issues or learning or physical disabilities, who need specialist care, or they are homeless people in desperate need of a safe place to sleep for the night. That is just a snapshot of the types of people who rely on supported housing. Anyone who leaves the Palace of Westminster late on a Monday night and walks past people sleeping in sleeping bags in doorways will be acutely aware of how desperate the situation is. Are the Government not ashamed to turn their back on the most vulnerable people in society?

Supported housing is a place of sanctuary and much-needed refuge. For example, the domestic violence charity Women’s Aid reported that 67% of its affiliated refuges in England would face closure if the local housing allowance cap were applied, while 87% of them would be forced to scale down their operations. With nowhere to go, women fleeing domestic violence would have even more perilous lives. What steps are the Government taking to ensure that there is good quality and properly funded supported housing for those who need the safety and security it offers? Good, well-funded and integrated supported housing makes economic sense. Evidence shows that it delivers average net savings to the public purse of about £940 per resident per year. Does the Minister agree that the cost benefit of supported housing is beneficial to the public purse, and that it should be properly funded?

I am pleased that the Government have finally listened to the Labour party and to housing and community groups, and have decided at least to delay the implementation of the LHA plan that was included in the previous autumn statement. However, the future of supported housing is still not secure. The Secretary of State’s written statement of 15 September promises at column 38WS to make “efficiency savings” to the supported housing sector in the same way as the rest of the social sector. The Government last week published a consultation, seeking views on their plans for a new housing costs funding model for supported housing. Will the Minister explain what exactly those efficiency savings will entail and how supported housing can be expected to make efficiency savings in a housing crisis? Ministers have promised a new, ring-fenced, fund; however, the similar, and once ring-fenced, Supporting People fund has been slashed by 45% since 2010. What guarantees can she give that a new fund will not also be cut?

The uncertainty is having an immediate impact; it has left tens of thousands of the most vulnerable people in limbo. Services coming up for re-tender are at risk of closure, irrespective of the outcome of the consultation. The charity Mencap said that the proposed cap had caused 80% of plans for new supported housing to be put on hold, and 40% of existing schemes to be threatened with closure. Does the Minister agree that the decision on the cap was merely delayed, causing unnecessary anxiety for those concerned?

Riverside has looked at the possible geographical difficulties of the new top-up scheme. I share its concerns about where the line is drawn between housing costs met by DWP through a national benefits system, and additional housing support costs met through locally administered funding pots. With LHA rates more modest in many lower-value areas of the country, significant top-up would be required just to meet core rent and basic accommodation-related service charges. For example, the LHA level for a one-bedroom Riverside home in Hull is £69.73, as opposed to £260.64 in Westminster—a difference of £190.91. In many lower value areas, significant top-up would be required. The local top-up funding allocations will need to perform a very different role in different parts of the country. In my area of the north-west, along with the rest of the north and the midlands, the top-up funding will mainly be meeting core rents and services, compensating for the fact that LHA rates are so much lower. In other areas, top-up funding can support new services.

The Government have committed to continue supporting “specialised supported housing”, but will still impose savings on general supported housing. Can the Minister explain what constitutes specialised supported housing as opposed to just supported housing? Homeless Link has said that the definition of “specialist” covers very few supported projects and would protect very few homelessness services. I would argue that any housing that provides expert support to vulnerable people is specialised and therefore should be protected from the LHA cap. Anyone in the sector will say that shelters and refuges are at capacity. It is already a struggle to provide the support needed to help people live independently. Vulnerable people are being turned away. That is happening now, and I dread to think what will happen when the Government finally announce the outcome of their consultation.

Supported housing is oversubscribed and more units are desperately needed. The Government need to do much more to secure the long-term future of supported housing. People who have fallen on hard times should not bear the brunt of Tory economic mismanagement. They deserve dignity and support. I urge the Government to rethink their position urgently, to listen to the deep concerns expressed by the supported housing sector and to ensure that all supported housing is fully exempt from the cuts.

Oral Answers to Questions

Margaret Greenwood Excerpts

Monday 21st November 2016 Commons Chamber

[Damian Hinds]

My hon. Friend makes a very good point. We are launching a test—face-to-face and on a voluntary basis, from Jobcentre Plus work coaches—for self-employed people currently in receipt of tax credits. A range of support material is also available at gov.uk.

[Margaret Greenwood (Wirral West) (Lab)]

Ordering presents online is now a normal part of Christmas for many people, but there have been disturbing reports recently of delivery drivers who are classed as self-employed working dangerously long hours for less than the national living wage. Those workers make a vital contribution to the functioning of the digital economy. Will the Minister commit to meeting Labour’s five tests for social security for the self-employed?

[Damian Hinds]

I join the hon. Lady in recognising the necessity of looking at these issues. National living wage enforcement is very important. That is why we have raised the budget for it, as well raising the maximum penalty. As for the exact definition of self-employment, she will know that there are variations in definition for tax purposes and employment law purposes. The Matthew Taylor review is looking at precisely these issues to make sure that the appropriate protections are in place while enabling more and more people to avail themselves of the opportunities in the new economy.

--- Later in debate ---

[Damian Green]

My hon. Friend is right to point out the technical aspects of the roll-out. We have always been clear that an undertaking of this size and scale would be bound to meet obstacles. That was precisely why we adopted the test-and-learn approach which, I am glad to report, has worked. We have listened to issues raised by our staff and officials, and by claimants and other stakeholders. We now have a solid foundation. Universal credit is delivered in every jobcentre and local authority area. As I said, 400,000 claimants are now receiving it and being supported to build a better future for themselves.

[Margaret Greenwood (Wirral West) (Lab)]

The UN International Day for the Elimination of Violence against Women is on 25 November. Universal credit is normally paid to a single person within a couple, but that can cause major problems for women or men in an abusive relationship, and asking for split payments could exacerbate the difficulties for someone in that situation. Will the Secretary of State consider automatically splitting payments for each partner in a couple?

[Damian Green]

I suspect that automatically splitting payments would introduce many technical difficulties and cause more problems than it solves. In individual instances, it is possible to split the payments to deal with problems including that which the hon. Lady rightly identifies. However, automatically splitting payments would probably not be practical.

Oral Answers to Questions

Margaret Greenwood Excerpts

Monday 17th October 2016 Commons Chamber

[Damian Green]

The new enterprise allowance is indeed an extremely helpful tool in our armoury of ways to help disabled people. We have seen 20,000 firms started up—20,000 disabled people helped—through the new enterprise allowance. I intend to continue and expand the scheme, which is so good for disabled people.

[Margaret Greenwood (Wirral West) (Lab)]

The right hon. Member for Chingford and Woodford Green (Mr Duncan Smith) said in March 2014 that he believed the Government would eradicate child poverty by 2020, yet, as has already been mentioned, the Child Poverty Action Group highlighted last week that child poverty is set to rise by 50% by 2020. Does the Secretary of State agree with the former Secretary of State or with the Child Poverty Action Group, and are the Government still committed to eradicating child poverty by 2020?

[Damian Green]

The Government are certainly committed to reducing child poverty. The Child Poverty Action Group made a number of specific demands. One demand was to expand childcare support, which the Government have done, extending the 15-hour offer to the most disadvantaged two-year-olds. Universal credit now reimburses up to 85% of childcare costs, up from 70%. CPAG also demanded support to progress in low-paid work—it is absolutely right about that—and we are undertaking a number of trials to deliver evidence on in-work progression, which will be delivered by Jobcentre Plus, because I agree with CPAG that that is an extremely good step forward.

[Margaret Greenwood]

In 2011, the Government said that universal credit would lift 350,000 people out of poverty. By 2013, that had been downgraded to just 150,000. The Office for Budget Responsibility published its report on welfare trends last week and made it clear that the cuts going ahead under universal credit will mean that it will be less generous than tax credits. How many children, if any, do the Government expect universal credit to lift out of poverty?

Cross-departmental Strategy on Social Justice

Margaret Greenwood Excerpts

Wednesday 14th September 2016 Westminster Hall

[Margaret Greenwood (Wirral West) (Lab)]

It is an honour to serve under your chairmanship, Ms Dorries. I congratulate the hon. Members for Enfield, Southgate (Mr Burrowes) and for Congleton (Fiona Bruce) on securing this important debate.

I welcome the genuine concern focused on the poorest families by the hon. Member for Congleton. However, as she said, while family breakdown is a key driver of poverty—the hon. Member for St Austell and Newquay (Steve Double) made much the same point—poverty is a key driver of family breakdown, and it is important that that remains in the frame. There are almost 1 million zero-hours contracts in our society, as well as high housing costs, insecure rental contracts and insecure work, all of which create a great deal of instability in the home and for families. A Government who are focusing on tackling social justice should take note of that.

The hon. Member for Strangford (Jim Shannon) spoke compellingly of the community groups in his constituency, which work hard to make lives better. He did say that he had never seen food banks as a negative. I have to disagree with him on that: I see the sharp rise in food banks in our country, one of the richest nations on earth, as a stain on the reputation of this Government.

The hon. Member for South West Bedfordshire (Andrew Selous) spoke very clearly and importantly on the role of education in helping people in prison—helping them to become better fathers, mothers and so on and aiding their rehabilitation. He also spoke about the importance of improving access to psychological therapies.

The hon. Member for Lanark and Hamilton East (Angela Crawley) raised the important issue that universal credit is paid only to one person in a couple. That raises the problems that particularly women in abusive relationships can face, and I ask the Minister in particular to address that point.

The hon. Member for St Austell and Newquay also called for family hubs, but I have to say that in my constituency Government cuts are putting our family hubs in jeopardy. The hon. Member for Banff and Buchan (Dr Whiteford), whom I absolutely agree with, pointed out that low income is a core driver of deprivation.

The hon. Member for Congleton spoke with pride about the social justice narrative of the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith). I have to take exception to that, because we of course have to bear in mind the record of what he achieved while in office. We saw the slashing of social security support and a failure to ensure the levels of high-quality, well-paid and secure jobs that would prevent an additional 800,000 children from being in poverty by 2020.

The hon. Lady and I can agree on one thing: the need for an interdepartmental approach to enable social justice to thrive, and to counter social injustice. Where we may disagree is on the interpretation of how to achieve that. I would point to whole swathes of Government policies and previous coalition Government policies as drivers of deprivation. The Institute for Fiscal Studies has shown that the Budget has left people on low and middle incomes proportionately worse off as a result of tax and social security changes. Regressive economic policies whereby the total tax burdens fall predominantly on the poorest, combined with low levels of public spending, especially on social security, are key to establishing and perpetuating inequalities. Is that really social justice?

[Fiona Bruce]

Will the hon. Lady give way?

[Margaret Greenwood]

I will not, because I am very short of time; I am sorry.

Is it socially just that 3.7 million sick and disabled people will have approximately £28 billion-worth of cuts in social security support from the Welfare Reform Act 2012? That does not include the cuts to employment and support allowance work-related activity group support due to start next, or cuts to social care. Is it socially just that in addition to facing the misery and hardship of poverty, the children affected have greater risks to their future health and wellbeing? One witness to the recent inquiry by the all-party parliamentary group on health in all policies into the effects of the 2016 Welfare Reform and Work Bill on child health told us that

“as children’s lives unfold, the poor health associated with poverty limits their potential and development across a whole range of areas, leading to poor health and life chances in adulthood, which then has knock-on effects on future generations.”

There is even increasing evidence that poverty directly impacts on how neural connections develop in the brain. In particular, the hippocampus, which is key to learning, memory and stress regulation, and the amygdala, which is linked to stress and emotion, have weaker connections to other areas of the brain in children living in poverty compared with children from more affluent homes. Those changes in connectivity are related to poorer cognitive and educational outcomes and increased risk of psychiatric illness for nine to 10-year-olds; that includes depression and antisocial behaviours.

The inequalities that the people of our country face at the moment are reminiscent of the Victorian age. The International Monetary Fund has described income inequalities as

“the most defining challenge of our time”.

In the UK, 40 years ago, 5% of income went to the highest 1% of earners; today it is 15%. Unless we address that, we cannot get to grips with all the other issues talked about in this debate. Of course, this is not just about income. The Panama papers revealed the shocking extent to which the assets of the richest are kept in offshore tax havens, where tax is avoided and evaded. According to the Equality Trust, in the last year alone the wealth of the richest 1,000 households in the UK increased by more than £28.5 billion. Today, their combined wealth is more than that of 40% of the population. While the wealth of the richest 1% has increased by 21%, the poorest half of households saw their wealth increase by less than one third of that amount. I could go on.

Of course, social injustices are not confined to tax and social security policies. There is inadequate funding for nursery schools, so we are seeing them struggle to provide the expertise that can make a real difference in early-years development—something very pertinent in my own constituency. What about the impact of the Government’s decision to bring forward the equalisation of the state pension age for women born in the 1950s, the so-called WASPI women—Women Against State Pension Inequality? What about the restrictions in access to justice through legal aid and the fees charged for employment tribunals? What about the reducing of access to education by trebling tuition fees and scrapping the education maintenance allowance? What about the cuts to local authority budgets—they have been very high indeed in my constituency—leading to cuts to Sure Start and threatening vital adult social care?

Cuts to the police authorities mean that we are seeing increased problems with social cohesion, creating real anxiety at all levels of society, with people in certain areas afraid to go out of their house. There is the threat to the social housing sector, such that people do not feel that they have a secure home to live in, through the Government’s right to buy, bedroom tax and 1% annual cut to social rents. Those are all combining to threaten the social housing sector.

This Government and the previous coalition have facilitated exploitative labour markets with poor-quality jobs and zero-hours contracts, the number of which is heading towards 1 million, and have further contributed to maintaining power within an elite. Where is the social justice in that?

Governing is about choices. The amount of revenue lost to the Exchequer each year as a result of tax fraud is £16 billion—the same as we spend on disabled people through the disability living allowance and personal independence payment. If the Government truly believe in social justice and fairness, they need to reflect that in their policies across the board. They need to clamp down on tax fraud and ensure that the most vulnerable in society are looked after properly and not plunged into poverty or worse, and that opportunities are there for all.

Employment for People with Disabilities

Margaret Greenwood Excerpts

Tuesday 5th July 2016 Westminster Hall

[Margaret Greenwood (Wirral West) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Stringer. I congratulate the hon. Member for St Ives (Derek Thomas) on securing this important debate. I find it interesting to hear about the practical projects in rural west Cornwall with which he has been involved. I also note his comments about how those projects have always found themselves strapped for cash. It is an enduring issue.

This has been a worthwhile debate. The hon. Member for South Down (Ms Ritchie) pointed out that anti-discrimination legislation, while a vital component, is insufficient on its own, and that we must always challenge negative attitudes to people with disabilities. The hon. Member for Strangford (Jim Shannon) reminded the Minister to consider the impact of the cut of £30 a week to the employment and support allowance work-related activity group. The hon. Member for Glasgow East (Natalie McGarry) rightly mentioned the closure of nine Remploy factories in 2013. She asked the Minister to update us on progress in providing support for former Remploy employees and pointed out that 733 of the 1,700 people who lost their jobs have still not secured employment. The hon. Member for Airdrie and Shotts (Neil Gray) rightly called for a clear timetable for the publication of the Minister’s Green Paper.

There are approximately 12 million people living with a disability, impairment or limiting long-term illness in the UK, of whom 5.7 million are of working age. Although 4 million people with disabilities are already working, another 1.3 million are fit for work and want to work, but are currently unemployed. However, as we have heard, the gap in the employment rate between disabled and non-disabled people has grown under this Government to 34%, a 4% increase since they came into office. The vast majority of disabled people—90%—used to work. This is a waste of their skills, talents and experience.

As study upon study has shown, the Government’s pledge to halve the disability employment gap rings hollow. It is estimated that, at the current rate, it will take until 2030 to do so. The shelved White Paper, with the promise of a strategy defining support for disabled people, is yet another broken promise, so I join others in their request to Minister today: will he tell us definitively when he will produce his Green Paper?

This debate comes down to whether the Government believe in the principles underpinning the UN convention on the rights of persons with disabilities, to which we are signatories. Fundamentally, they are that disabled people should be able to participate fully in all aspects of society, including work, and to access the same opportunities as everyone else, including opportunities to use their talents and skills to the best of their ability. No one should feel they are unable to reach their best potential or that their hopes and dreams do not matter. Do the Government support the principles and articles of the UN convention? If so, when will they publish their response to the UN committee’s report investigating the UK’s breaches of the convention?

What is the Government’s planned negotiating position in relation to disabled people with regards to the exit of the EU? What EU legislation tackling disability discrimination and enhancing accessibility for disabled people will we retain? For example, will we retain the 2000 employment equality framework directive prohibiting disability discrimination, which dramatically strengthens UK disability employment law?

The Government set the tone for culture and society, and this Government have made their views abundantly clear through their swingeing cuts to social security support for disabled people, including the recent ESA WRAG cut of £1,500 a year, and an overhaul of the work capability assessment process, which has managed to be both dehumanising and ineffective and has been associated with profound mental health effects, including suicides. The Government’s sanctions policy, targeting the most vulnerable, has brought people to the brink—sadly, people have died under it—and the personal independence payment debacle is making it harder for disabled people to stay in work. There is also the closure of the independent living fund. I could go on, but I will not, due to the shortage of time.

This is happening across all Departments. In the Department for Business, Innovation and Skills, the Department for Transport, the Department for Education, the Ministry of Justice and the Department for Culture, Media and Sport, disabled people are being marginalised. Given that 12 out of 14 economic analyses forecast an economic downturn over at least the next year, will the Minister ensure that public spending for disabled people will not be hit yet again? I would like a clear response on that point.

The UN Committee on Economic, Social and Cultural Rights published its report last week on this Government’s austerity agenda, and the recommendations were damning. On unemployment for disabled people, the committee recommended that the Government

“review its employment policies to address the root causes for unemployment and include in its action plan time-bound goals with a specific focus on groups disproportionately affected by unemployment, such as…persons with disabilities”.

The committee also recommended that the Government review their austerity policies and programmes introduced since 2010 and

“conduct a comprehensive assessment of the cumulative impact of these measures on the enjoyment of economic, social and cultural rights by disadvantaged and marginalised individuals and groups, in particular women, children and persons with disabilities”.

On social security, the committee recommended that the Government

“reverse the cuts in social security benefits introduced by the Welfare Reform Act 2012 and the Welfare Reform and Work Act 2016”.

Will the Minister commit to implementing the UN’s recommendations on issues highlighted by Labour Members for many years now, address the disability employment gap effectively, produce a cumulative impact assessment and reverse the measures in the 2012 and 2016 Acts that have had a devastating effect on many disabled people?

What needs to happen? Addressing those issues, including the disability employment gap, needs political will. If 90% of disability is acquired, why are we doing so little to help employers to retain skilled and experienced employees who may become poorly or disabled? We need practical measures to support disabled people at work, enabling them to thrive and protecting them from leaving the labour market prematurely. Some disability charities have recommended more flexible leave arrangements, as well as extending Access to Work. Even if the Government do finally increase Access to Work from the 37,000 or so who were helped last year, it will still be available only to a tiny proportion of the 1.3 million disabled people who are fit for work. In the current economic climate, what assurances has the Minister had from his colleagues that Access to Work funds will be increased?

The Disability Confident scheme needs to be rebooted. The latest revelations that only 40 mainstream private sector employers across the UK have been involved since its inception three years ago show that the scheme is, to put it mildly, clearly inadequate. What measures are in place to monitor its efficacy? For those employers who work hard to recruit and retain disabled employees, how does the scheme apply to their procurement policies and supply chains?

Of course, more needs to be done to help disabled people back into work. As we have argued for over a year, the WCA must be replaced with a more holistic, whole-person assessment. The current system to assess eligibility for social security support is not fit for purpose and should be completely overhauled. However, such changes would also need to be reflected in new departmental and Jobcentre Plus key performance indicators that do not focus just on getting people “off flow” as a successful outcome. Given that so many of those people also have PIP assessments, we should also consider how to bring the two together.

Instead of the increasingly punitive sanctions system, more appropriate support is needed. It is also essential to maintain and increase specialist disability employment advisers in jobcentres, as several hon. Members have said. The current figure of fewer than one such adviser to 600 disabled people will not contribute to halving the disability employment gap. I would also like to see advisers’ role extended to working with businesses.

Current commissioning and payments for the Work programme and other welfare to work programmes need rethinking as well. We must improve specialist support, looking at what works. Although Work Choice has better outcomes than other programmes, it may not be the only solution. The individual placement and support scheme for people with mental health conditions is another example.

As we have said before, greater integration is also needed between Departments: not just between the Department for Work and Pensions and the national health service, but between the Department for Business, Innovation and Skills and those bodies responsible for economic development. For example, if someone with a musculoskeletal issue or a mental health condition needs to take time off work, they need appropriate early intervention to help them back to work. We need to understand the bottlenecks in the local system that might affect that. We also need to reflect on the drive for flexible labour markets and what it means for supporting people with long-term or fluctuating conditions back into work—or, most probably, out of work, then back into work and so on.

There are clear geographical variations in the disability employment gap, but also in the strength of local economies and the availability and type of jobs, as the hon. Member for Glasgow East made clear in her intervention. It is well established that the prevalence and geographical pattern of sick and disabled people reflects the industrial heritage of our country. Contrary to the Government’s “shirkers and scroungers” narrative, incapacity benefit and ESA are recognised as good population health indicators.

It is also clear that local economic conditions—whether the economy is thriving or not—will determine how readily sick and disabled people will be able to return to work. Again, geographical analysis shows that people with equivalent conditions in the economically buoyant London and the south-east are more likely to be in work than those in Northern Ireland, Scotland, the north-east, the north-west or Wales.

It is more than 70 years since legislation was first introduced to prohibit employment-related discrimination against disabled people. Sadly, we are still fighting to address such discrimination and the inequality in employment still faced by disabled people. Changing attitudes and behaviour needs cultural change. We in the Labour party will always promote that change and work to improve the lives of people with disabilities.

--- Later in debate ---

[Justin Tomlinson]

I thank my hon. Friend, who is one of the most proactive MPs in supporting our initiatives. He is a real credit to his constituency.

I understand the point made by the hon. Member for Airdrie and Shotts (Neil Gray) about the Green Paper; I will come back to that later. He and others raised the issue of Motability cars; we have increased the number of people accessing the Motability scheme by 22,000. I reassure him that Parkinson’s UK, who I met again yesterday, and Leonard Cheshire are two major stakeholders who are very much involved in the work we are doing.

The hon. Member for Banff and Buchan (Dr Whiteford) mentioned the Resolution Foundation report. I attended and spoke at the launch, and the foundation has asked some important questions and has made its own suggestions and recommendations, which can be considered in the Green Paper.

I congratulate the hon. Member for Wirral West (Margaret Greenwood) on stepping up to be my shadow today. As I said, we are increasing funding. The work capability assessment is not perfect. It was introduced by the Labour Government, who made tweaks to it themselves. The coalition Government made tweaks and we have tried to make tweaks. We all accept that it has to change; that is a given, and we will look at that in the Green Paper. It is important to remember that the personal independence payment is not work-related—it is separate. It is ESA that is work-related. On the change from the disability living allowance to PIP, only 16.5% of claimants accessed the highest rate of benefit under the DLA; under PIP the figure is 22.5%. As a benefit, the PIP is far better at accessing the most vulnerable in society and providing them with adequate support.

Access to Work helped 37,000 people last year. I understand that, as an absolute number, that is a relatively small percentage, but we must remember that not everybody on Access to Work has a lifetime award—sometimes it is a one-off adjustment or an occasional adjustment—so the scheme actually helps far more than that. We have had confirmation of an increase in funding for an additional 25,000 places, and we are actively doing all we can to let small and medium-sized businesses in particular, which are responsible for 45% of jobs, know about the scheme. I will come to Disability Confident, and I have already covered the disability advisers.

The Government are committed to halving the disability employment gap. That was announced personally by the Prime Minister, which gives me some extra bargaining tools when I talk to other Departments, to the public sector and to the private sector. Disability Confident is an important part of that. Some 690 organisations have now signed up; we are making changes to the scheme, with greater asks of larger employers in particular, and are recruiting more than 100 organisations a month now, so it is beginning to accelerate quickly.

My hon. Friend the Member for St Ives made the very powerful point that employers are nervous and we need to build trust. That is absolutely right. Disability Confident is part of that process, with signposting and sharing best practice, along with reverse jobs fairs, which I am encouraging all MPs to get involved in, particularly those who are most critical of the Government. They can do their bit to be proactive and host their own reverse jobs fairs. The way it works is that I got 22 local organisations in my constituency—the sorts that my hon. Friend the Member for St Ives highlighted in his examples—into a room. Working with local media, I got more than 70 small and medium-sized businesses that were looking to recruit people to come into that room and say, “These are the skill gaps that we’ve got.” We introduced them to those organisations and lots of job outcomes came from that.

Building on that, we decided to carry out a pilot of small employer officers, who literally doorstepped local employers and, over a cup of tea, discussed the huge hidden talent that could be matched to those employers’ skills gaps. Those pilots have been really successful, and I am pushing hard for them to be rolled out nationally, as part of the summer Budget funding. Working with the disability advisers in the jobcentre and all the support organisations, whether national providers or local charities, we can get the busy small and medium-sized businesses that are lacking confidence and knowledge of the talent that is out there, and hook them together.

That is crucial, because I have seen so many disabled people who are playing by the rules, engaging with the Work programme, the Work Choice programme or the different charities, and doing their bit to find work. Without opportunities at the end of that, they will continue to loop round the system, getting ever less confident and ever further away from the jobs market. Everything we do has to be underlined by matching that up to employers. I am really excited by what a difference that can make, and I have seen from working with employers how tangible that difference can be.

Learning disabilities were at the heart of the speech made by my hon. Friend the Member for St Ives. Those with a learning disability have a 6% chance of having a meaningful and sustainable career. As a group, they are the furthest away from the jobs market. All Governments of all political persuasions have tried and have tweaked, but have not budged that figure.

I recently visited Foxes Academy near Bridgwater, which had set up an old hotel. In their town, the opportunities are in hotels, restaurants and care homes, so those are the skills they provide for their young adults—the equivalent of sixth form—as well as teaching skills for independent living. In their third year, students go and have a supported year in industry, after which 80% of them remain in work, of which 45.6% are in paid work. Even the conservative figure of 45.6% is so much better than 6%.

I challenge officials in the Department for Business, Innovation and Skills to say “The Government are committed to 3 million more apprenticeships. Why are we not doing more to open them up, particularly to those with learning disabilities?” We set up a taskforce, which has now concluded, and we will shortly be announcing its recommendations. If we can open up access to those 3 million places, that will make a huge difference.

The Green Paper is a priority for the Government. It is well supported by stakeholders, who understand that, as my hon. Friend the Member for St Ives set out so clearly, when we use their experience and knowledge, we can make real and good decisions. But it cannot be rushed; we have to do it as and when we get all the right questions answered and the right information. It will come this year and will be done in the right and proper manner with the full support of the stakeholders who I regularly engage with.

We will continue to work with the jobcentre network to upskill. Universal credit will give individuals the opportunity, for the first time, to have a named coach who will support them both in getting into work and once they are in work. I am proud of our record: 360,000 more disabled people in work in the last two years. It is right that local best practice should be integral to that.

[Margaret Greenwood]

Will the Minister give way?

[Justin Tomlinson]

I need to conclude, to allow my hon. Friend the Member for St Ives time for his final remarks.

Universal Credit (Work Allowance) Amendment Regulations 2015

Margaret Greenwood Excerpts

Thursday 19th November 2015 General Committees

[The Minister for Employment (Priti Patel)]

It is a pleasure to serve under your chairmanship, Sir Edward. Before I address the points that have been raised, I should say that it is important to remember the fundamental principle of the design of universal credit. It has been designed to transform people’s lives by taking on the highly ambitious task of reforming the welfare system and the labour market, so as ultimately to generate wider economic benefits in excess of £7 billion every year.

The welfare system we inherited from Labour was not working. Welfare spending on people in work rose from £6 billion in 1998 to almost £28 billion in 2010; yet during that time, in-work poverty increased by approximately 20%—that figure is from the statistics on households on below-average income. The Government are quite rightly changing that situation by moving from a low-wage, high-tax society to a high-wage, low-tax one. As a result, more people will be supported by the wages they earn and the benefits they receive. That is better for them as individuals and for the country and the economy as a whole.

Universal credit will remove the barriers that prevent people from finding work by increasing their hours and earnings. The system we inherited made welfare more attractive than work for millions of people. By contrast, universal credit incentivises work, renews personal responsibility and, importantly, rewards positive work choices.

Removing the current requirement in the tax credits system to work 16 hours per week and having a single taper rate of 65% are at the heart of that approach. Those changes will ensure that universal credit reduces gradually as a claimant’s earnings increase, so that they will not lose their benefit all at once if they are on a low income. In addition, universal credit stays with claimants as they move into and progress in work, and increase their earnings. That gives them greater confidence and freedom to take up more work without the worry of additional bureaucracy and form filling that might have occurred if they lost their job or their circumstances changed.

We should make no mistake here: universal credit will make a huge difference in its own right to families up and down the country. Creating those greater incentives to find a job will mean that up to 300,000 more households will be in work and around 3 million households will gain, on average, around £180 per month. The removal of the 16 hour a week threshold is expected to help up to 100,000 additional families, with improved incentives for 700,000 out-of-work lone parents to take their first supported steps into work, something that we should all welcome.

[Margaret Greenwood (Wirral West) (Lab)]

Will the Minister comment on the impact on the under-25s, who do not gain from the new living wage and will be severely affected by these measures?

[Priti Patel]

There is no doubt at all that universal credit will have a powerful and positive effect on labour market participation. The under-25s will benefit in due course from the increase in the personal allowance, which will mean that they keep more of the money that they earn. Those aged 18 to 21 will benefit from the new schemes that the Government are bringing in to support more work and training, and give help in getting on apprenticeship schemes. The positive choices will be out there for them to gain skills and get their foot closer to the labour market through the support of universal credit as a structure and through our work coaches, who will support them in work and will be of great benefit to them.

We can already see that universal credit is working and is changing lives across the country. It is now available in more than 500 jobcentres nationwide, covering more than 270 local authorities across England, Scotland and Wales, including the constituencies of many hon. Members on the Committee—Dudley North, Glasgow South West, Alyn and Deeside, and Islington South and Finsbury. Opposition Members will welcome the fact that universal credit is helping their constituents to look for work, to enter work more quickly and to earn more money in work.

Universal credit is a transformational system in the way it provides support, breaking down the barriers that prevent people from gaining work. Our network of trained and dedicated work coaches is transforming the relationship that we have with claimants and, importantly, that they, in turn, have with the labour market. We are supporting people from various backgrounds—including, importantly, people with disabilities and health conditions —into work by forging strong partnerships with key employers, ranging from National Grid to Barclays. We also have the Government’s Disability Confident campaign, which puts people at the heart of securing employment opportunities.

Many parents have previously cited, and currently cite, childcare costs as a specific barrier to entering the labour market. Universal credit currently covers up to 70% of eligible childcare costs, but, from April next year, we will increase that to 85%. That will make an enormous difference to people’s lives, with an increase of up to £1,368 per year for every child.

--- Later in debate ---

[Priti Patel]

As I said—I will restate this for the benefit of the Committee—universal credit will support people with no children and others in increasing their working hours. Of course, that is the purpose of universal credit; it is not about having a system that supports people endlessly in receiving allowances. The point is that work incentives have been improved in universal credit, and they are much better and clearer than those in the legacy system. That applies to people of all ages who are on universal credit.

I should emphasise for the Committee that, in looking at not only universal credit, but welfare reforms on the whole, we should be clear that the Government have faced difficult choices in addressing the fiscal position we inherited, and I touched on the welfare legacy we inherited in 2010. The changes to the work allowance should be considered as part of the wider package of support for claimants. Universal credit still provides better support than the current system, including by providing dedicated work coaches who can give advice on job applications and interviews. I would like to think that all Members in the House would welcome that.

Universal credit also supports flexible working by reducing or removing the administrative burdens that existed previously when an individual in or out of work claimed different benefits. I emphasise again that the removal of the 16 hours worked per week threshold allows people to take up jobs for any hours. That, in itself, incentivises people to work more hours.

[Margaret Greenwood]

The Select Committee report on tax credit cuts also raised concerns about cuts to universal credit and urged the Government to pause before continuing. Why are they pushing ahead with the cuts to universal credit before responding to that report?

[Priti Patel]

The hon. Lady touched on tax credits, and she will, rightly, have to wait until next week’s spending review to hear what else will happen in that particular space. However, I emphasise again for everybody on the Committee, including the hon. Lady, that the incentives to move into work and to increase hours will be strong in universal credit. They are far better than the system of benefits and tax credits that they replace. Moreover, universal credit ensures that those on very low incomes are protected. The Budget changes will also need to be considered as part of the wider Government support that we have put in place for working families, much of which I have touched on. Help can be targeted much more effectively at those who face the biggest barriers to work than through a blanket work allowance for all claimants, and I am sure all Members will agree with that.

Beyond universal credit, the Government have set out a vision for a higher-wage, lower-tax and lower-welfare society. As a first step, we have raised the personal allowance to £11,000 for the next tax year, and we have pledged to increase it again to £12,500 by the end of this Parliament. We have introduced the new national living wage, which will come in next year. As we have stated previously, that is forecast to reach more than £9 by 2020, based on the recommendation from the Low Pay Commission.

We expect many universal credit claimants to respond to these changes by actively seeking more work. We will rightly support them in that. I remind the Committee that in the current welfare system more than 500,000 people would lose more than 80p for every extra £1 they earned. Virtually no one will face that level of withdrawal rate under universal credit.

Welfare Benefit Changes

Margaret Greenwood Excerpts

Wednesday 14th October 2015 Westminster Hall

[Emily Thornberry (Islington South and Finsbury) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Pritchard.

The dynamics of this debate have said a great deal. My hon. Friend the Member for Swansea East (Carolyn Harris) spoke with huge passion and absolutely from the heart. We could hear the voice of Swansea in what she was saying, and it was important to hear an authentic voice explaining the real effects of these changes to social security and what they mean to real communities and real people. We are not talking rhetoric; we are not talking learned lines that are copied down throughout the Conservative party. We are talking about what happens to people in their homes and communities—people who, as has been pointed out, feel demeaned by what has happened to them. It is difficult for people to discuss it and, as my hon. Friend said, she wanted this to be an opportunity for the voices of victims of the benefit changes to be heard. I congratulate all hon. Members who have had the opportunity to be heard and who have spoken authentically on behalf of their communities.

We heard the hon. Member for Strangford (Jim Shannon) saying that we are punishing workers on the lowest wages and that that is unbearable for many families. We then heard from my hon. Friend the Member for Birmingham, Selly Oak (Steve McCabe), and the voice from Birmingham said that the people who are using our food banks are in work. We heard from the hon. Member for Foyle (Mark Durkan), who said we need regionalised figures to explain the impact of the changes on our communities. Then we heard from the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry), who gave many examples of people who had been assessed as being fit for work, including a man who had had a second stroke. He discussed those constituents’ pain and suffering and how degrading Atos assessments have been—they are degrading, inhuman and disgraceful. I congratulate the hon. Gentleman on that, because he spoke not only for people in Inverness, but for those across the country who have been assessed by Atos and feel the same.

[Margaret Greenwood (Wirral West) (Lab)]

I commend my hon. Friend the Member for Swansea East (Carolyn Harris) on securing this important debate. The Government’s study identified that more than 330,000 children from low-income families in England will be hit by the benefits cap and that a couple with two children will be priced out of being able to rent a two-bedroom property in almost all areas of the south of England and across much of the midlands too. Does my hon. Friend agree that this state of affairs will have a potentially devastating effect on the lives of hundreds of thousands of children, who may be forced out of their homes and away from their communities, and that it is likely to have a particularly severe impact on single parents, who rely strongly on the local communities around them for support in bringing up their children?

[Emily Thornberry]

My hon. Friend makes an important point. Many communities, particularly in inner London, have already been affected by the first benefit cap. We have already seen young children ripped out of primary schools and moved out of London, as families try desperately to find somewhere they will be able to afford under the benefit cap.

Introducing a benefit cap makes a profound change to the way we pay benefits. The social security system used to be, and had always been, a safety net available to everyone, but introducing a benefit cap disconnects need from the amount that we are prepared to pay. Larger families, which are in most need, will be affected most. It is not their fault that they live in inner London or that they cannot live in public rented housing because there is not enough affordable public rented housing so they must live in the private sector. The Government have introduced an arbitrary, politically motivated cap that will have a devastating effect on communities.

Oral Answers to Questions

Margaret Greenwood Excerpts

Monday 7th September 2015 Commons Chamber

[The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)]

As someone who ran my own business for 10 years, I wish my hon. Friend’s constituent the very best of luck. The Government have helped over 28,000 people through the new enterprise allowance, and through the Access to Work scheme specific training and specialist support can be provided to people with disabilities.

[Margaret Greenwood (Wirral West) (Lab)]

T6. When is the Minister’s Department going to publish a full analysis of the impact of the Welfare Reform and Work Bill on the proportion of children living in child poverty as defined by the Child Poverty Act 2010?

[Mr Duncan Smith]

We publish statistics the whole time on child poverty. We will also be publishing statistics on the effects of different aspects of what we do. There has never been across-the-board comprehensive publication of data by Government on all those things, but I am happy to engage with the hon. Lady if she wants to take the matter further.