Households Below Average Income Statistics

Margaret Greenwood Excerpts

Thursday 28th March 2019 Commons Chamber

[Margaret Greenwood (Wirral West) (Lab)]

I thank the Secretary of State for advance sight of her statement.

The figures published today are truly shocking. They highlight the devastating impact of austerity on families throughout the country. It is a national scandal that 14 million people, including 4.1 million children, are living in poverty in one of the richest countries in the world; yet the statement was marked by complacency and denial. As universal credit has been rolled out throughout the country, we have witnessed a sharp increase in food bank use. We are one of the richest countries in the world, and that increase is a source of national shame. We see families unable to feed their children. As a former schoolteacher, I know what it is like when children are hungry in school: they cannot learn, they are unhappy and worried, and they do not want their parents to know how worried they are. It is a scandal that has to be addressed.

In the face of such human misery, we hear the Secretary of State attempt to justify austerity and the Government’s clear political decision to balance the books on the back of the poor and disabled. It is a disgrace. The Joseph Rowntree Foundation estimates that continuing the benefits freeze for a fourth year will mean families will be on average £560 worse off. On 10 January, the Secretary of State said that the freeze was

“the right policy at the time.”

If it is not the right policy now, why is it being continued until April 2020? And why was there nothing in the statement to address that?

In the past, the Government have responded to our criticism of the rises in relative child poverty by saying that it is absolute poverty that matters. Well, we all know that we have to look at all measures of poverty, so what is the Secretary of State’s response to the figures released by her Department today, which show that in 2017-18 the number of children living in absolute poverty before housing costs increased by 300,000, and after housing costs by 200,000? It is truly shocking that the number of people in absolute poverty before housing costs increased by 600,000 in that same year.

Evidence of the crisis in poverty in our country is clear, yet last year the Secretary of State criticised what she said was the political nature of the report by the UN special rapporteur on extreme poverty and human rights, when he delivered it last November. That was a shocking statement—as if somehow poverty has nothing to do with politics. After her own Department’s figures have shown a 600,000 increase in the number of people in absolute poverty in 2017-18, will she now accept that he was simply telling the truth about poverty in this country?

The number of pensioners living in poverty rose by 100,000 in 2017-18, which means it has increased by 400,000 since 2010, under the Conservatives. Will the Government therefore reconsider their plans to force mixed-aged couples to claim universal credit rather than pension credit when one partner has reached state pension age but the other has not? Or are they determined to go ahead and break the Conservative party manifesto promise on that?

The Secretary of State claims that health and wellbeing are being improved. I ask her to think about those on zero-hours contracts. There are individuals with three zero-hours contracts who cannot secure a pension because the different contracts do not meet the threshold. She talks of universal credit as a force for good. That is laughable to those who have studied universal credit and those who are experiencing the misery of it. We have seen delays, five-week waits and an inability to deal with fluctuating incomes, meaning that people on the same income are getting very different levels of benefit from the social security system. When will the Government wake up to the poverty crisis besetting our country and deliver to people the security they need?

[Amber Rudd]

It is because we care so much about the changes in poverty that I have come here to make a statement about today’s statistics and to answer questions.

It is because of the Government’s commitment to the triple lock that pensioner poverty is at a near-record low. I gently point out to the hon. Lady that the only reason we are able to fund the triple lock is that this Conservative Government are running a strong economy. A focus on how we deliver benefits, whether to pensioners or working-age people, is absolutely key to being able to deliver those important contributions.

The hon. Lady mentioned the Joseph Rowntree Foundation, but its analysis shows that universal credit will reduce the number of people in working poverty by 300,000. That she continues to attack universal credit shows a fundamental misunderstanding of the changes it brings to people’s lives. I urge her to engage with her jobcentre and speak more to the work coaches and clients. If she does, she will find, as I have, how positive the response to universal credit is. Many people I know are still concerned about it, but in my experience, and that of many other MPs from across the House, once people have engaged with universal credit—once they are on it—they realise it is a much more positive source of income than the previous benefits.

There are many different sources of poverty. One area we have particularly made sure we put more money into is the lowest-income children in schools, because that is a way to bridge the gap between people born into different households. Under this Government, the education attainment gap between disadvantaged pupils and all other pupils at key stage 4 has narrowed by 9.5% since 2011. The pupil premium, which most colleagues will be aware of, is incredibly important for focusing additional funds on pupils on the lowest incomes. This combination of initiatives, funded by this Government, will help to reduce the poverty gap.

Oral Answers to Questions

Margaret Greenwood Excerpts

Monday 18th March 2019 Commons Chamber

[Alok Sharma]

My right hon. Friend is a huge champion for his constituents. He is extremely well regarded in the jobcentre, interacting with constituents and indeed with those working there. The Secretary of State has already referred to the fact that, from 1 April, we will be increasing work allowances by £1,000.

[Margaret Greenwood (Wirral West) (Lab)]

Four single mothers won a legal challenge against the Department for Work and Pensions in January because their universal credit payments did not take into account the way in which their incomes changed from month to month, yet the Government decided to apply for permission to appeal. This was turned down, with the judge saying that the way in which the Secretary of State had interpreted and applied the legislation

“was not only wrong as a matter of language, it produces absurd results”.

Why did the Government choose to spend public money seeking to appeal the original decision, and what are they going to do now to address this grotesque injustice?

[Alok Sharma]

As the hon. Lady will know, we are considering this case, so it would not be appropriate to comment at this stage.

--- Later in debate ---

[Margaret Greenwood (Wirral West) (Lab)]

Next year, the benefit freeze will leave the poorest 20% of families with children £900 worse off on average. In January, the Secretary of State said that the benefit freeze was the right policy at the time, but both she and the Chancellor have signalled that it will not be renewed in 2020. If it is not the right policy now, why are the Government continuing with the freeze for another year?

[Justin Tomlinson]

The hon. Lady continues to object to any measures to restore fairness to the benefits system. Under the last Labour Government, we saw welfare spending increase by £84 billion and an additional tax burden of £3,000 per hard-working household. This is about fairness and supporting people, while having a good safety net for those most in need.

Application of the Family Test

Margaret Greenwood Excerpts

Wednesday 13th March 2019 Westminster Hall

[Margaret Greenwood (Wirral West) (Lab)]

It is a pleasure to serve under your chairmanship, Sir David. I congratulate the hon. Member for St Austell and Newquay (Steve Double) on securing this debate. He rightly pointed out the importance of families and parenting. The hon. Member for Congleton (Fiona Bruce) told us that the Government have a poor history of applying the family test. She spoke of the impact of family life on productivity; I wonder whether she would support Labour’s policy of ending zero-hour contracts, to improve the quality of family life. The hon. Member for St Ives (Derek Thomas) spoke thoughtfully about a number of areas where policy is failing families, and particularly about the impact of natural migration to universal credit, which is causing hardship for many families. The hon. Member for Glasgow Central (Alison Thewliss) spoke passionately about poverty and austerity, and the impact of the two-child policy.

The family test has admirable aims, but this Government have not quite followed through on it in full. It is not clear whether the initiative has made a significant impact. When it was introduced, it was not made mandatory to publish the outcomes of the test; to date, few have been published. Could the Minister tell us how many tests have been carried out or are under way? Will he commit to publishing them in full?

In 2015, the then Secretary of State, the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith), said that the Social Justice Cabinet Committee would take the lead in ensuring that the family test was properly applied across Government Departments. Will the Minister confirm whether the committee still exists, and when it last met?

The family test was introduced to provide a family perspective in the policy making process. While that is a laudable objective, it is clear that Government policy since 2010 has completely undermined that aim. Families across the country have suffered the impact of this Government’s austerity measures, particularly through cuts to social security. One only has to think of the upheaval and misery caused by the bedroom tax to see that; families were uprooted from their community because of an ill-considered and heartless policy.

The test includes five questions to consider when making policy, including assessing what kind of impact the policy might have on family formation, families going through key transitions such as becoming parents, and all family members’ ability to play a full role in family life, yet Government policy appears almost designed to disrupt and interrupt family life. Indeed, they have made it much harder for parents to secure a safe and happy upbringing for their children. When Professor Philip Alston, the United Nations Special Rapporteur on extreme poverty and human rights, visited the UK last year, he lifted the lid on a national crisis. He said:

“People I spoke with told me they have to choose between eating and heating their homes, or eating and feeding their children. One person said, ‘I would rather feed my kids than pay my rent, but that could get us all kicked out.’ Children are showing up at school with empty stomachs, and schools are collecting food on an ad hoc basis and sending it home because teachers know that their students will otherwise go hungry.”

There is no use speaking about the family test while ignoring the growing stark reality of people’s lives. More than 14 million people in the UK are in poverty, including more than 4 million children. According to the Institute for Fiscal Studies, that figure will rise to more than 5 million by 2022. No child should have to go to school hungry, or go without heating or clothing, but the Joseph Rowntree Foundation reported last year that more than 300,000 children had to do just that. Its report found that 365,000 children experienced destitution in 2017. Shockingly, 131,000 children woke up homeless on Christmas day last year, according to Shelter. Most people would consider that completely unacceptable in 21st-century Britain.

The Library recently analysed the extent of the cuts to working-age social security, and found that £36 billion has been cut from that budget since 2010, including nearly £5 billion from social security. That has made it extremely difficult for many families to pay the bills. Two years ago, we asked the Government for an impact assessment of the cuts on women, after we published Library analysis showing that 86% of the impact of austerity had been shouldered by women, yet despite their supposed commitment to the family test, the Government still refuse to publish an impact assessment of the cuts on women.

The family test was introduced in 2014. I take this opportunity to examine the policies introduced since then and their effect on families. The two-child limit, which has been mentioned, is expected to push 200,000 additional children into poverty by the time universal credit is fully rolled out. The policy breaks the vital link between what families require to meet their daily needs and their entitlement. The Child Poverty Action Group says that the policy means that

“some children are held to be less deserving of a decent standard of living than others, simply because they have more siblings—a circumstance which they cannot control.”

It was described as “fundamentally anti-family” by the UK’s foremost religious leaders.

The family test asks policy makers to assess the impact of policy on family formation. The Child Poverty Action Group says the two-child limit

“risks creating incentives for larger families to separate, and could discourage single parents from forming new ‘blended’ families. It could also penalise children in separated families who switch the parent they live with—for example to be with siblings, or to remain in their school if one parent moves away.”

It goes on to say that the policy

“may also leave women who become pregnant with a third child, for example through contraception failure, with a difficult choice between moving into poverty and having an abortion.”

Clearly, that is extremely shocking. The two-child limit completely undermines the aims of the family test and the fabric of family life. Can the Minister confirm that it was subjected to the family test? Will he make that assessment public and explain how the policy passed all five tests?

Another policy introduced in 2015 was the freeze on social security, which quite simply increases poverty. According to the Joseph Rowntree Foundation, almost half a million more people will be driven into poverty by 2020 as a result of the freeze, which it says is the single biggest driver behind rising poverty. The Secretary of State sought to reassure the public that the benefits freeze would not be extended beyond next year, but that is not soon enough. The value of working-age benefits is expected to be cut by £1.5 billion over the next year. We have repeatedly called on the Government to end the benefits freeze immediately. Ahead of today’s spring Budget, we say it is not too late for the Government to stop the freeze. The Government have the opportunity to lift 200,000 people out of poverty altogether by ending the freeze, so will they take action?

Since its introduction by a Labour Government, child benefit has been a vital means of supporting families. It is now frozen, having been cut repeatedly since 2010. According to Unison, a family with two children is £450 a year, or £8.67 a week, worse off than it would have been in 2010. Unison analysis shows that, at current prices, that would buy 1 litre of skimmed milk, 15 medium eggs, a Warburtons medium white sliced loaf, a bag of straight-cut chips, washing-up liquid, pork loin medallions and eight sausages—clearly, all things that families could do with. Again, can the Minister confirm that the social security freeze was subjected to the family test, and will he make that assessment public and explain how the policy passed all five tests?

Universal credit has undergone rapid expansion in recent years. However, its roll-out has been chaotic and hampered by cuts—especially those made in the 2015 summer Budget. Universal credit is not working for families, and it is driving many people into poverty, debt and rent arrears. The five-week wait, which was originally a six-week wait, is unrealistic for low-income families. It is difficult to see how families are supposed to survive for five or six weeks without any payment at all when children need to be fed and clothed. The Government say universal credit is linked to food bank use, yet they have failed to address that issue competently and have offered people loans instead. Once again, can the Minister confirm that universal credit—in particular the 2015 cuts and the five-week wait—has been subjected to the family test, and will he make that assessment public and explain how the policy passed all five tests?

[Fiona Bruce]

Will the hon. Lady give way?

[Margaret Greenwood]

I am very short of time, so I will continue.

Sadly, Government policy is putting intolerable strain on some families. Under this Government, mixed-age couples will be denied pension credit and forced to claim universal credit instead. What is more, younger partners will potentially be subject to the sanctions regime, too. Some families are set to lose as much as £7,000 a year. There have been reports of couples who have been together for more than 20 years considering separation as a result. What assessment have the Government made of the impact of that policy on families? Does the Minister believe it meets the five tests?

There are many more areas that betray how Government policies have undermined the interests of families. Cuts to local government are forcing councils to overspend on their children’s services and social care budgets and run a huge deficit in their reserves for schools. As many as 1,000 Sure Start centres may have closed because of Government funding cuts, and the Government’s change to the threshold for free school meal entitlements could leave 1 million children without a hot meal at school.

We believe that when we all get old or sick, or we have a family, our public services should step in—they should help families remain secure and avoid poverty—but austerity is making that much more difficult to achieve. Indeed, the policies I have mentioned would, in my opinion, demonstrably fail the family test. I hope the Government listen to the points I have made, end austerity and develop policies in line with the stated aims of the family test.

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

It is a real pleasure to serve under your chairmanship, Sir David, in this very calm and sensible week for Parliament. I am sure all eyes will be focused on this very important debate.

I thank my hon. Friend the Member for St Austell and Newquay (Steve Double) for securing the debate. He has an exceptional track record in this important area; it is a real credit to the work he has done that he has so much support from the colleagues who attended the debate. I pay tribute to his work alongside the noble Baroness Eaton with the Centre for Social Justice, which culminated in its recent report on the family test. That excellent piece of work was a really good way to focus minds—not just in my Department, but across Government. I will go into more detail about that.

I also thank all the other Members who contributed, in particular my hon. Friends the Members for St Ives (Derek Thomas) and for Congleton (Fiona Bruce). I will cover many of the questions raised, but let me say two quick things before I forget. I would be delighted, diary and parliamentary duties permitting, to attend the family hub event, so I ask my hon. Friend the Member for Congleton to make sure I have all the details of that.

My hon. Friend the Member for St Ives has done fantastic work as an MP to support those with special educational needs, using his wealth of experience from his work prior to arriving in the House. I recognise his point about supporting families with special educational needs children.

I pay tribute to one of my local special educational needs schools, the Uplands School, which has made a very small change that could easily be adopted by all schools and is making a huge difference. Like all schools, it has parental support classes, which offer peer-to-peer support—parents get together over cups of tea and talk about the challenges they are facing and how they can support one another. The headteacher, Jackie Smith, has ensured that parents get an invite to those support classes once they know their children will end up at the school, rather than having to wait until the day they come. That ensures that peer support is provided from the very early days, which is making a huge difference.

We also had a contribution from the hon. Member for Glasgow Central (Alison Thewliss), who perhaps stretched the intention of the debate—most of her comments were probably better suited to a Home Office debate. I am sure there will be opportunities for Home Office Ministers to respond in the future.

I thank the hon. Member for Wirral West (Margaret Greenwood) for welcoming the principle of the family test. I appreciate that, but she then applied a series of political statements loosely to the principles of the family test. It would be remiss of me not to correct some of the points she made. For example, under this Government there are now 500,000 fewer families on the housing waiting list. Food affordability—the measure of whether families can afford the basics in terms of food—has almost halved in just under five years and is 2.5% lower than the EU average. Material deprivation has never been lower. Income inequality has fallen under this Government, having risen under the last Labour Government. There are now 300,000 fewer children in absolute poverty. Welfare spending under the last Labour Government—

[Margaret Greenwood]

Will the Minister give way?

[Justin Tomlinson]

The hon. Lady was not willing to take interventions from colleagues who actually stuck to the principles of the debate, so I will not.

Under the last Labour Government, welfare spending rose on average by £3,000 per house. Imagine the impact on hard-working families.

Social Security

Margaret Greenwood Excerpts

Monday 4th March 2019 Commons Chamber

[Margaret Greenwood (Wirral West) (Lab)]

This uprating order increases a range of social security entitlements. However, it does not uprate those included in the Government’s freeze to working-age benefits enacted in the Welfare Reform and Work Act 2016—a freeze that is causing real hardship to some of the poorest people in our country. The Minister set out the range of benefits to be uprated in line with the consumer prices index. The order also increases the state pension in line with the triple lock—a measure that the Opposition fully support—and increases universal credit work allowances by £1,000, in line with the announcement in the last autumn Budget.

While we welcome measures to increase those payments, we are deeply concerned that most working-age benefits remain frozen. The fact is that austerity continues under this Government, and it is pushing individuals, families and children into poverty. This order fails to uprate a long list of social security benefits: child benefit, jobseeker’s allowance, employment and support allowance, income support, housing benefit, local housing allowance rates, child tax credit, working tax credit and the equivalent elements in universal credit. None of those are uprated by this order.

Let us think for a moment about who that failure affects. It is the person who has just lost their job after working for 20 years in the same firm. It is the parents struggling to feed their children. It is the sick or disabled person who is looking for work. These are vital social security payments that should lift people out of poverty and ensure that they do not become destitute.

[Ruth George]

I thank my hon. Friend for being prepared to give way to me, which the Minister was not. Does she agree that the freeze on housing benefit and local housing allowance is driving not only people of working age but more pensioners into poverty? Contrary to what the Government claim, pensioner poverty has risen by 0.3 million, and we are seeing more and more elderly people who have to rent houses suffering because of it.

[Margaret Greenwood]

My hon. Friend makes an absolutely pertinent point, and she does so with her usual alacrity and attention to detail.

These vital social security payments should lift people out of poverty and ensure that they do not become destitute, but under this Government that aim is not being met. Last year, research by the Joseph Rowntree Foundation found that more than 1.5 million have experienced destitution in the UK, and the social security freeze is a key reason for that. To put this in perspective, destitution in this context—[Interruption.] Yes, destitution. I do not know why the Whip on the Government Front Bench finds destitution such a matter for mirth.

[The Lord Commissioner of Her Majesty’s Treasury (Craig Whittaker)]

You don’t know the meaning of the word.

[Margaret Greenwood]

Well, let me explain. In this context, destitution means that a person has lacked two or more of the six essentials in the last month—[Interruption.]

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order.

[Margaret Greenwood]

Thank you, Madam Deputy Speaker.

To put this in perspective, destitution in this context means that a person has lacked two or more of the six essentials in the last month—shelter, food, heating, lighting, clothing and basic toiletries. It is truly shocking that 1.5 million are going without basic essentials in modern Britain.

The Social Metrics Commission, whose members are drawn from the left and the right of the political spectrum, has found that 14.2 million people in the UK are in poverty, including over 4 million children. More than one in 10 of the UK population live in persistent poverty. This is a shocking indictment of a country that has the fifth biggest economy in the world.

[Heidi Allen (South Cambridgeshire) (Ind)]

I want to put on the record that I have visited some of the poorest parts of the country in recent weeks with the right hon. Member for Birkenhead (Frank Field), and I can confirm that I have seen this destitution with my own eyes. I have spoken to individuals who have literally £5 a week to live on for a variety of reasons, including their inability to access universal credit, but the overriding fact is that people can no longer afford to live on the subsistence level that universal credit and working-age benefits are set at—they cannot.

[Margaret Greenwood]

I thank the hon. Lady for making the point so powerfully.

The benefit freeze increases poverty. According to the Joseph Rowntree Foundation, the freeze is set to drive almost 500,000 more people into poverty by 2020. In 2018, a couple with children claiming universal credit were up to £500 worse off, and a lone parent with children was up to £400 worse off, due to the benefit freeze. The JRF says that the freeze is the single biggest policy driver behind rising poverty levels. Before the freeze was introduced in the Welfare Reform and Work Act, working-age benefits were capped at 1%, yet living costs are rising. In the 12 months to September last year, prices grew by 2.4%, according to the CPI inflation measure. The Joseph Rowntree Foundation says that between the introduction of the benefits freeze in April 2016 and November 2018, the annual cost of living for people on low incomes rose by £900.

Rising living costs and frozen social security mean that the value of benefits is increasingly inadequate to protect people from poverty. A recent report by the National Audit Office shows how the real value of the basic rate of jobseeker’s allowance and income support has fallen nearly every year since 2012-13, and it is now below its value in 2009-10. Overall, the real cut to many benefits from the four-year freeze is over 6%. According to the Resolution Foundation, child benefit is now already worth less than it was in April 1999. Beyond a family’s first child, child benefit in April 2019 will be worth 14% less than it was when it was fully introduced in April 1979. This is compounded by the Conservatives’ broken economy: low wage growth and the rise of insecure and zero-hours contracts mean that incomes are failing to meet the rising cost of living.

[Alison McGovern]

Simply, child benefit is easy to claim and has wide support in society, so are not the statistics my hon. Friend has laid out absolutely terrible for working families?

[Margaret Greenwood]

My hon. Friend makes an absolutely pertinent point, and I thank her for it.

[Mr Philip Hollobone (Kettering) (Con)]

The hon. Lady has concerns about working-age benefits—we all understand that, and she is right to highlight them—but at the beginning of her speech, she spent about five seconds on the £3 billion extra going to pensioners. Does she recognise that never in our country’s history have we ever spent more on the state pension than now, and the average pensioner is getting £1,600 a year more now than they were when Labour left office?

[Margaret Greenwood]

I will come on to pensions further on in my speech, if the hon. Gentleman will wait for that.

Some 8 million people are in poverty and live in families where at least one person is working. According to Shelter, more than half of homeless families in England are in work. Under the Conservatives, having a job is not even a guarantee that someone can avoid homelessness. The benefit freeze cannot be seen in isolation. It is just one part of the Conservative austerity programme that has seen billions cut from public services around the country and taken the core out of our communities. The Conservatives have targeted social security with devastating cuts, taking vital support from poor and disabled people. According to figures produced by the Library, measures announced in the June 2010 Budget onwards are forecast to cut social security by £36 billion in 2020-21. Nearly £5 billion is forecast to be taken from disability benefits, including employment and support allowance and incapacity benefit; £4.6 billion from tax credits; and £3.4 billion from child benefit. These cuts have had a devastating impact on the incomes of millions of people. The freeze should be seen in the context of the chaotic roll-out of the Government’s failing flagship social security programme, universal credit.

[Jim McMahon (Oldham West and Royton) (Lab/Co-op)]

I congratulate my hon. Friend on the points that she is making, many of which will resonate with my constituents. Does she agree that in-work poverty is a modern-day scourge on British society, and it exposes the lie that if someone is willing to work hard and make their own luck they can get on in life? Absolutely the opposite is true for too many people under this Government.

[Margaret Greenwood]

My hon. Friend is absolutely right, and there is a real sense of betrayal that that myth has been perpetrated by Government Members.

It is clear that universal credit is not working. It is driving many people into poverty, debt and rent arrears. One of its key defects is the inbuilt and unrealistic five-week wait. Originally it was even worse—a six-week wait. It seems that that senseless policy was devised by the Government without any thought for how people are supposed to survive for five or six weeks without any payment at all. The Secretary of State herself has spoken of the link between universal credit and the significant rise in food bank use. Why then have the Government failed to tackle this issue and why do they offer people a loan, rather than solving the problem?

The Secretary of State has said that the benefits freeze will not be extended beyond next year, but families cannot afford another year of the freeze. Next year alone, the benefits freeze is expected to cut £1.5 billion from the value of working-age benefits. We have called on the Government repeatedly to end the benefits freeze. It is not too late for them to stop the freeze. Ending it a year early would lift 200,000 people out of poverty altogether and boost the incomes of 13.7 million people on low incomes by an average of £270. The Government might be reluctant to do that now because the next financial year is only weeks away. However, when there is a desire to get a short Bill through and general agreement that it is non-contentious, Parliament can move primary legislation along quickly. As we saw in the recent work and pensions estimates debate, there is a cross-party desire to remove the damaging benefits freeze.

Part of the Government’s concern might be that the passage of such a Bill would be slowed down by amendments, so we will lay down a challenge to them: if they introduce a short Bill to end the benefit freeze one year early, Labour would support it and do whatever is possible to ensure its smooth passage before the next financial year. Will the Government agree to this measure, which would take hundreds of thousands of people out of poverty?

The increase in universal credit work allowances was introduced after considerable pressure from the House and Labour Members in the autumn statement. We welcome the increase, but we question why the Government cut the work allowances in the first place only to partially reinstate them a few years later. The 2015 cuts to work allowances dealt a major blow to the work incentives of universal credit and took money out of the pockets of working families. According to the Resolution Foundation, the increase to work allowances announced in the autumn restores only half the original cut overall. There are no work allowances for single people and couples who do not have a disability. Will the Government revisit this decision?

Turning to the uprating of the state pension in line with the triple lock, we are pleased that the Government have kept to this, despite the Conservatives’ plan to scrap the triple lock, which they announced in their manifesto. Presumably, the pressure from Labour Members made them think about that again. The latest figures show that pensioner poverty, as my hon. Friend the Member for High Peak (Ruth George) said, is rising again, with more than 300,000 additional pensioners living in poverty compared with 2012-13. That could be made worse by the news, slipped out on the eve of an all-important Brexit vote, that mixed-age couples will no longer be able to claim pension credit. They will instead be forced into making a universal credit claim, and some couples may lose as much as £7,000 a year as a result. Cumulatively, the cut amounts to £1 billion over the next five years. What assessment have the Government made of the effect this cut will have on pensioner poverty?

As the Government are still recklessly failing to rule out a no-deal Brexit, the threat of no deal and the effect it would have on the state pensions of UK citizens living abroad looms ever greater. As has been mentioned, the Government already withhold the pension uprating from pensioners living abroad in many countries outside the EU, an injustice Labour has pledged to reverse. In their no-deal planning, the Government have failed to commit to uprating the state pension across the EU beyond 2019-20. I have met pensioners who are very worried about this scenario and the effect it will have on pensioner poverty abroad. People who previously moved to the EU did so on the understanding that their pensions would be uprated. Why will the Government not give assurances to protect UK pensioners living abroad, whatever the outcome of the Brexit negotiations?

The Government have failed to address the financial hardship faced by millions of women born in the 1950s due to changes in pensions policy. Why, despite constant lobbying raising awareness of the issue, have the Government failed to take action? The Conservatives’ austerity agenda has inflicted real hardship on many of the poorest and most vulnerable people in our society. It has also drastically undermined our social security system.

We on the Labour Benches believe that we need a social security system that is valued as highly as our NHS and is there for any one of us should we need it. The Government are failing to deliver. If the Prime Minister was really serious about austerity being over, the Government should take action to tackle the rising poverty we are seeing throughout our country.

Oral Answers to Questions

Margaret Greenwood Excerpts

Monday 11th February 2019 Commons Chamber

[Alok Sharma]

Easements are, of course, available. I am happy to sit down and discuss the specifics of this case with the hon. Lady to see what may be possible.

[Margaret Greenwood (Wirral West) (Lab)]

On the evening of 14 January, the Government announced that, from this May, mixed-aged couples on a low income will no longer be able to claim pension credit when the older partner reaches state pension age and will have to claim universal credit instead. Couples affected could lose out by up to £7,000 a year, and the Conservative party manifesto pledged to safeguard pensioner benefits. Why have the Government broken that pledge?

[Alok Sharma]

Of course, we are safeguarding pensioner benefits overall.

[Margaret Greenwood]

No, you’re not.

[Alok Sharma]

If the hon. Lady would kindly listen, what I am saying is that the long-agreed change for mixed-age couples was voted on and agreed by Parliament in 2012. We should also be clear that mixed-age couples already claiming pension-age, income-related benefits at the point of change will not be affected, so long as they remain entitled.

--- Later in debate ---

[Amber Rudd]

I thank my right hon. Friend for his support. In his constituency, 21,000 people and 4,290 employers are now auto-enrolled. It is working well in his constituency. In April, we will increase the amount of contribution from employers.

[Margaret Greenwood (Wirral West) (Lab)]

Social security sanctions can be detrimental to the health and wellbeing of claimants, and, in extreme cases, push people into destitution. The Government’s response to the Work and Pensions Committee report was shocking. Apparently, they are only prepared to consider increasing the length of sanctions, not reducing them. What has happened to the concept of compassion? Will the Secretary of State end the Government’s cruel and counterproductive sanctions regime?

[Amber Rudd]

I do not recognise the hon. Lady’s description. I have been around jobcentres. I always make a point of speaking to work coaches, asking them about the way they impose sanctions and when. They always say to me that it is a last resort only done after a series of engagements. This is a personal choice that work coaches make. They have a lot of discretion and in my experience they are using it correctly.

Universal Credit

Margaret Greenwood Excerpts

Monday 14th January 2019 Commons Chamber

[Margaret Greenwood (Wirral West) (Lab)]

On 6 January, it was reported in The Observer that the Government had—

[Mr Speaker]

Order. The hon. Lady is always ahead of herself. What she does at this stage is say, “To ask the Minister to make a statement on universal credit”. We will get her full blast in a moment.

[Margaret Greenwood]

(Urgent Question): To ask the Minister to make a statement on universal credit.

[The Minister for Employment (Alok Sharma)]

As I outlined in the written statement tabled last Friday in the House, we have decided to replace the regulations relating to managed migration previously laid before the House with two new sets of regulations.

These regulations will allow a series of measures relating to universal credit to be put in place. The Government will seek powers in an affirmative set of regulations for a pilot of managed migration so that the Department cannot issue any more migration notices once 10,000 people have been awarded through the process. Those regulations will also deliver on our commitment to provide transitional protection for those managed migrated to universal credit. Separate regulations will put in place a severe disability premium gateway, allowing recipients of this benefit to continue to claim existing benefits until they are managed migrated on to universal credit.

In addition, my statement reported that we were bringing forward the necessary legislation to remove the planned extension of the policy to provide support for a maximum of two children in universal credit. This overall policy ensures that parents receiving benefits face the same financial decisions about the size of their family as those supporting themselves solely through work. We decided, however, that it would not be right to apply the policy to children born before it came into law on 6 April 2017, so we have cancelled that extension.

The benefits freeze up to April 2020 was voted for by Parliament as part of the Welfare Reform and Work Act 2016. As a general point, any changes relating to benefits uprating will be brought before Parliament in the usual way.

[Margaret Greenwood]

On 6 January, it was reported in The Observer that the Government had decided to ask for powers from Parliament for a pilot of the managed migration of 10,000 people from legacy benefits to universal credit, rather than for a pilot of managed migration as a whole. However, on 7 January at oral questions, and the following day in response to an urgent question, Ministers failed to provide clarification of the Government’s plans. Then on Thursday, the Secretary of State told Sky News that she did not expect the social security freeze to be renewed when it came to an end in April 2020.

On Friday 11 January, the Secretary of State made a wide-ranging speech on social security, setting out her intentions in relation to managed migration, private sector rents, childcare costs and the two-child limit, but she did not make it in this House or give Members the opportunity to ask questions about those really important matters. On the same day, the High Court found in favour of four single mothers who had brought a legal challenge against the Government on the grounds that universal credit failed to take into account their fluctuating incomes after they were paid twice in a month because their paydays fell very near the end of the month.

How do the Government intend to respond to the High Court judgement? Does the Minister think that the two-child limit is fair to the children affected, and will the Government not scrap it altogether? Will they address the key concern with managed migration, which is that nobody’s claim for benefits that they are currently receiving must be ended until they have made a successful new claim for universal credit?

Will the Government make sure that the levels set for payments to people in receipt of severe disability premium who have already transferred to universal credit reflect the financial loss they have suffered? Will they take immediate action to ensure that no one has to wait five weeks to receive their initial payment of universal credit? Why are they not cancelling the benefits freeze now rather than waiting until April 2020, given that the Secretary of State says she believes that the reasons for it being introduced no longer apply? Finally, will the Government call a halt to the roll-out of universal credit?

[Alok Sharma]

I thank the hon. Lady for her comments. Very many people outside the House—many stakeholders —have welcomed the statements made in the House on Friday and what the Secretary of State said in her speech. I am sorry that the hon. Lady did not welcome the positive changes that have been made and are being proposed.

The hon. Lady talked about a number of issues, and I shall go through them. She mentioned the legal judgment on Friday; as she acknowledged, that judgment came out literally a few days ago. As a Department, we will consider it very carefully and then respond. On the two-child policy, we have of course made that change; as she will be aware, the regulations were laid on Friday. She talked about the overall two-child policy, and we do believe that the overall policy is fair. Ultimately, those receiving support in the welfare system should face the same sort of choices as those who support themselves solely through work. It is worth pointing out that if a family who supported themselves solely through work decided to have another child, they would not automatically expect their wages to go up. This is about sustainability.

The hon. Lady mentioned the pilot. We have made it clear that that will start in July 2019, and we are working with a wide range of stakeholders on it. She talked about the severe disability premium: those regulations have been laid. She also mentioned the benefits freeze. May I ask her to reflect on the reason why we had to make various policy choices in the past? It was the awful financial mess left us by the last Labour Government. [Interruption.] I am sorry, but she cannot get away from that point.

I have one final thing to say to the hon. Lady. She talks about changes to the five-week period. I have said this in the House before: if she is so keen on supporting claimants, particularly the vulnerable, as we on the Government Benches are, why did she not vote for the £1.5 billion of support that came in under Budget 2017 and the £4.5 billion of support announced in the 2018 Budget?

Universal Credit: Managed Migration

Margaret Greenwood Excerpts

Tuesday 8th January 2019 Commons Chamber

[Margaret Greenwood (Wirral West) (Lab)]

(Urgent Question): To ask the Secretary of State for Work and Pensions if she will make a statement on the Government’s plans for the managed migration of people claiming legacy benefits to universal credit.

[The Minister for Employment (Alok Sharma)]

Universal credit is a vital reform that overhauls a legacy system that trapped people out of work; with six different benefits, administered by three different Government Departments, it was utterly confusing for claimants. All new claimants now receive universal credit. In the future, we will move claimants who have not changed circumstances from legacy benefits to universal credit in an approach known as managed migration. It is right that the Government should seek to align provision for all, in order to eventually operate one welfare system. The Department has long planned to support initially 10,000 people through this process in a test phase, before increasing the number of those migrated. The first phase will give us an opportunity to learn how to provide the best support, while keeping Parliament fully informed of our approach. Universal credit is proceeding as planned, with no change to the timetable of completing managed migration by December 2023.

[Margaret Greenwood (Wirral West) (Lab)]

Over the weekend, it was widely reported in the media that the Government had decided to ask for powers from Parliament for a managed migration pilot to move 10,000 people from legacy benefits to universal credit, rather than the managed migration as a whole of about 3 million people. One headline read:

“Threat of revolt forces rethink of ‘catastrophic’ universal credit”.

The Minister’s response does nothing to clarify the situation.

This is a matter of very real concern. Under so-called managed migration, the Government intend to switch off the vital financial support received by millions of people and leave them to apply for universal credit. There are very real fears that vulnerable people will be put at risk of falling out of the social security system altogether. Over a third of these people are currently claiming employment and support allowance because they are ill and disabled. In some cases, they will have been claiming it for a long time and may find it extremely difficult to make a claim for universal credit. A policy change of this significance, which was indicated in the press, clearly should have been announced in the House but the Government failed to do so. The Secretary of State failed to clarify the situation when she was asked to do so yesterday.

Will the Minister—it is disappointing that the Secretary of State is not in her place—tell the House whether the Government intend to ask Parliament initially for powers to carry out a pilot for the managed migration of 10,000 people or for the process as a whole, which would affect nearly 3 million people? Will the Government pledge, as they did before Christmas, to debate the regulations, in whatever form they take, on the Floor of the House? If the Government seek powers for a pilot in the first instance, will the Government address the fundamental concern of numerous voluntary organisations that nobody’s claim for a legacy benefit will be ended until they have either made a new claim for universal credit or have said that they do not wish to do so?

The result of putting back the timetable for managed migration, as the Government already did in the Budget, will mean that many more people will transfer to universal credit through natural migration. Can the Minister tell us how many people the Government estimate will move to universal credit through natural migration, and what savings that will make for the Treasury?

The Government announced in June that those in receipt of severe disability premium would not have to transfer to universal credit without transitional protection. Will the Government compensate those who have already done so and missed out as a result? What action will the Government take to ensure that those affected are fully compensated? The Government have chosen to shift the burden of what should be the Government’s responsibility to ensure continuity of social security on to claimants, forcing them to apply for universal credit. Will the Minister explain precisely what the Government are going to do and will they stop the roll-out of universal credit?

[Alok Sharma]

May I just clarify, if it was not clear yesterday when we had oral questions, that the Government had previously committed to hold a debate on the affirmative regulations in relation to the managed migration regulations? That will happen in due course, and we will debate them as and when parliamentary time allows. We will of course, as we have set out previously, meet our commitment to severe disability premium recipients. We will also ensure that the start date for the July 2019 test phase involving 10,000 people is voted on.

The hon. Lady raised a number of issues. She raised the issue of vulnerable people. I hope she will have seen our response to the Social Security Advisory Committee’s recommendations, in which we set out very clearly—I am sure we will have a chance to talk about them—how we will be looking to move people across, working with stakeholders to ensure protections are in place for the vulnerable.

The hon. Lady talked about voluntary organisations. We will be working with voluntary organisations. We have already had meetings with 70 stakeholders and we have plans for further discussions. We want to design the process together with them. The timetable is as set out. We will have a pilot phase starting in July 2019. In 2020, we will then move on to volume migration.

I want to end on one point, which is that every time the hon. Lady gets up she talks about stopping the roll-out of universal credit. To be clear, we have now rolled it out across the country. If she wants to support people, she should vote with us when we bring forward support for the most vulnerable. She voted against the £1.5 billion of support. She also voted against the £4.5 billion. When the regulations are debated, she should support them and not oppose them. Let me clarify once more that we will hold a debate on affirmative regulations in relation to the managed migration regulations.

Oral Answers to Questions

Margaret Greenwood Excerpts

Monday 7th January 2019 Commons Chamber

[Amber Rudd]

I think that the hon. Gentleman misunderstands me. I am completely committed to the benefits of universal credit and to ensuring that it remains a force for good, helps people into work and does not repeat the terrible mistakes of the past under Labour and the legacy benefits. The new system will work much better for people, and, with the help of all Members of Parliament, people will find that their jobcentres are enthusiastic about it.

[Margaret Greenwood (Wirral West) (Lab)]

If reports over the weekend are true, it seems that the Government are finally waking up to the potentially devastating impact of their managed migration plans on claimants, over one third of whom will be sick or disabled. Therefore, will the Secretary of State now clarify the situation and what action she will take to address the central flaw in these regulations, which places all the onus on claimants to make a new claim for universal credit or risk losing support if they do not make an application on time?

[Amber Rudd]

I am grateful for a second opportunity to clarify the situation. As we announced last year, there will be a 10,000-person pilot this summer that will help us to learn how to be most effective in the managed migration. We have 1.4 million already on universal credit through natural migration and 1.6 million are expected to come on during the next 12 months. Making sure that the managed migration is effective, efficient and compassionate is absolutely central to the success of universal credit, and that will be coming forward in 2020.

[Margaret Greenwood]

Only about one third of households due to be claiming universal credit by the time it is fully rolled out were ever scheduled to transfer under managed migration and so receive transitional protection. Universal credit is being used as a vehicle for cuts to social security and is pushing many people into poverty, rent arrears and food banks. Will the Secretary of State now stop the roll-out?

[Amber Rudd]

I would ask the hon. Lady to think again about her approach to universal credit. It is doing a good job. I urge all Members who have not had the opportunity to visit their jobcentres and experience it for themselves—talk to the claimants and work coaches—and above all to compare it to the legacy benefits. If they do, they will see the confusion and complication that was there. Now, with our one simple system, it will be much more straightforward for individual claimants.

Oral Answers to Questions

Margaret Greenwood Excerpts

Monday 19th November 2018 Commons Chamber

[Amber Rudd]

I would not want to overstate what the hon. Gentleman calls my power, but I am certainly going to be listening very carefully. Part of the benefit of the universal credit roll-out will be making sure we get the expert guidance from the people who have been working in this field for many years, and we will certainly be doing that.

[Margaret Greenwood (Wirral West) (Lab)]

I welcome the Secretary of State on her return to the Government Front Bench.

The report of the UN special rapporteur on extreme poverty and human rights said, when asked about the problems that universal credit claimants are facing, that:

“Government ministers were…entirely dismissive”.

Thus far, the Government have been determined to press ahead with the next phase of the roll-out, despite clear warnings from over 80 organisations working with disabled people who will be affected that many people could fall out of the social security system altogether and be in risk of destitution. Will the new Secretary of State end the Government’s state of denial, scrap the managed migration regulations and stop the roll-out of universal credit?

[Amber Rudd]

I have seen the report by the rapporteur—I read it over the weekend—and I must say that I was disappointed, to say the least, by the extraordinary political nature of his language. We on the Conservative Benches will always engage with professionals, experts and non-governmental organisations—we are not so proud that we do not think we can learn as we try to adjust universal credit for the benefit of everybody—but that sort of language was wholly inappropriate and actually discredited a lot of what he was saying. We look forward to working with experts in the area to make sure that we get the right outcome for the people whom we want to look after.

--- Later in debate ---

[The Minister for Disabled People, Health and Work (Sarah Newton)]

I thank my hon. Friend for asking that really good question. People who qualify for PIP before retirement age are able then to carry on claiming PIP, so long as they are eligible, into retirement. That is in addition to pension or any other benefits to which they are eligible.

[Margaret Greenwood (Wirral West) (Lab)]

The UN special rapporteur on extreme poverty and human rights said in his report that the rising level of child poverty is not just a disgrace but is a

“social calamity and an economic disaster”,

and that Government policies are locking millions of children

“into a cycle of poverty from which most will have great difficulty escaping.”

According to Joseph Rowntree Foundation research published today, the current freeze on working-age benefits is the single biggest driver behind rising child poverty levels. Will the new Secretary of State end the benefits freeze and make tackling child poverty the priority it should be once again?

[Amber Rudd]

Of course, tackling all poverty is a priority for the Department for Work and Pensions, and we know that the best way out of poverty is to make sure people get into work. But more than that, we know that a strong economy will deliver the higher paid jobs, and that is what this Government are going to focus on, and we will listen and engage with non-governmental organisations and others to make sure we can deliver that.

Universal Credit

Margaret Greenwood Excerpts

Monday 5th November 2018 Commons Chamber

[Margaret Greenwood (Wirral West) (Lab)]

I thank the Secretary of State for advance sight of her statement. I would like to pay tribute to all the individuals, charities and Members of the House who have been holding the Government to account over their chaotic and damaging universal credit programme, which is pushing families into poverty.

In June, the National Audit Office published a damning report on universal credit. We know that the roll-out of the benefit is leading to people building up debt and rent arrears or being forced to turn to food banks for help. The Budget last week did little to address the very long wait for payments, which is causing significant hardship. Despite that, the Government are now planning to start the next phase of the introduction of universal credit, which they call managed migration, involving the transfer of 2.87 million people on to it.

Under the draft regulations, existing claimants will be sent a letter saying that their benefits will stop and they will need to make a new universal credit claim by a specific deadline. It is wholly unacceptable that the Government are shifting responsibility for ensuring that people get the help they need away from the Government and on to the shoulders of nearly 3 million claimants. It is no wonder that 80 organisations representing disabled people are calling for the Government to change tack. Learning disability charity Mencap has said that the proposals leave disabled people

“vulnerable to having their benefits stopped before they have made a successful claim”.

More than 400 organisations have responded to the Social Security Advisory Committee’s consultation on the managed migration regulations—a record number for the committee, which demonstrates the strength of concern about this issue.

Parliament is being asked to approve regulations that it may have very little chance at all to scrutinise and debate, even though the details of how the process will take place are not yet settled. When asked by the Chair of the Work and Pensions Committee on 18 October whether the regulations would be debated, the Minister for Employment answered:

“We need to have a debate in the House.”

It was clear from the context that the Chair meant a debate in the main Chamber. However, the shadow Leader of the House raised the issue at business questions on 11, 18 and 25 October without receiving a clear assurance that that would be the case. That is all the more important since Government Members make up a majority of the MPs in Committees, even though they do not have an overall majority in Parliament.

Let us step back and get a broad view of the Government’s supposed flagship social security programme. Universal credit was supposed to lift 350,000 children out of poverty. Instead, according to the Joseph Rowntree Foundation, an extra 1.2 million children may be growing up in poverty by the end of this Parliament. Universal credit was supposed to deliver work incentives and help more people into employment, yet the NAO says that the Department for Work and Pensions will never know whether universal credit leads to more people in work. Universal credit was supposed to simplify the social security system, but instead, around three in 10 claims of universal credit are closed and not paid, within a system that is complex and that people find difficult to navigate. This statement does nothing to address that.

The Government claim that 1 million disabled households will receive an extra £100 a month as a result of universal credit. What the Secretary of State has failed to tell the House is that the same report by the Office for Budget Responsibility reveals that around 1 million sick and disabled households will lose an average of £2,608 a year, or £217 a month.

Universal credit is failing. The Opposition have consistently called on the Government to stop the roll-out, but the Government are pressing ahead, despite the terrible hardship it is causing. We have a right to ask questions on behalf of our constituents, including whether the universal credit managed migration regulations will be debated in full on the Floor of the House so that all MPs get a chance to scrutinise and debate this critical draft legislation.

The Secretary of State says that the Government have accepted all but one of the Social Security Advisory Committee’s recommendations. That is highly questionable. For example, what new action will the Government take to support people who struggle to make and manage a claim online? Will the Department publish the more than 400 responses to the Social Security Advisory Committee’s consultation, to ensure maximum transparency? The Secretary of State must assure the House that there are sufficient safeguards in place to ensure that no existing legacy benefit claimants end up falling into destitution and that none falls out of the social security system altogether.

Given the potential impact of the draft regulations on claimants’ incomes, the large number of people affected and the strength of opposition to the proposals in their current form, it is a matter of real concern that they will receive such little scrutiny by Members. Members are extremely concerned about the impact that universal credit is having on people living in their constituencies. They must be given the opportunity to debate and vote on these regulations on the Floor of the House.

[Ms McVey]

While the Opposition cannot bring themselves to commend the extra £4.5 billion going into universal credit, let me read out what some independent charities have been saying. The Resolution Foundation has hailed this a “very welcome” £1.7 billion commitment. The Joseph Rowntree Foundation has said that this extra investment is

“a tool for tackling poverty”.

The Trussell Trust has talked about

“significant improvements that will make a real difference to many people supported by universal credit”.

The Child Poverty Action Group called this

“unequivocally good news for families receiving universal credit”.

Other charities have been saying that the Department is now listening to what claimants, charities and MPs are saying. The Trussell Trust has said that. Gingerbread has said that. Mind has said that. Mencap has said that.

I would also point out that an extra 1 million disabled people will be getting an extra £100 a month, and that 700,000 people who did not get all they should under the legacy benefits will get nearly an extra £300 a month. There are now 3.4 million more people in work. That is what we do: we help people into work. Youth unemployment has gone down by 50% since 2010—that gives young people a future, it gives them hope and it gives them a job—and that is happening under this Government.

I came into politics for social mobility. Social mobility is about moving forward and getting a job. There is no social mobility on benefits—there is no mobility on benefits. That is what this party believes in. It is the way to get out of poverty. That is why we welcome the extra £4.5 billion. The Opposition have asked for a debate on the Floor of the House, and, of course, there will be a debate on the Floor of the House. We believe in transparency. We are open and straight talking. We say it as it is.

We will be co-designing what happens with claimants. In the words of the publication that the OBR has put out on the Budget, by 2023-24 we will be spending an extra £2 billion on universal credit than on the system it replaces. I want to say a final word on debt under Labour: between 1997 and 2010, benefit claimants’ debt to local authorities increased by £1.8 billion through overpayments and errors in the legacy system, and £5.86 billion of debt was accrued on tax credits. That is a shameful record for the Opposition of putting claimants into debt on benefits and tax credits.