Oral Answers to Questions

Margaret Greenwood Excerpts

Monday 21st May 2018 Commons Chamber

[Ms McVey]

As it is a brand new benefit, we are providing extra childcare support, which is needed by people with children and lone parents. We are also giving tailored support. The claimant commitment and the one-to-one relationship that people have with their work coach is about really understanding the needs of the individual. That is what we are doing to help people to get into a job, get a career and fulfil their job ambitions.

[Margaret Greenwood (Wirral West) (Lab)]

The Department for Work and Pensions has been forced recently to reveal that a fifth of universal credit claims are being turned down because claimants are not managing to negotiate the complex application process, meaning that thousands of people are falling out of the system. Claims must be made and managed online, even though, according to an OECD study, 40% of unemployed adults in England have low basic skills. Meanwhile, one in 10 jobcentres are being closed, removing face-to-face support from communities, and the Government are speeding up the roll-out of the full service yet again. What action are the Government taking to identify the factors leading to such a high level of failure?

[Ms McVey]

Obviously, this benefit is not failing. That is why we are seeing extra support and why we are seeing record numbers of people in employment and record low unemployment. However, the hon. Lady is right to talk about the low IT skills that people have. Part of the universal support we are giving is to educate and to enable people because the IT skills they need to claim a benefit are the same IT skills they need to get a job and to get cheaper deals online. That is what we are providing. Again, if they are in debt, we are providing that personalised support. As we close some of the jobcentres, most important is the outreach work that we do. As we seek to help more people and some of the most difficult to help into work, we are doing outreach work through the flexible support fund.

--- Later in debate ---

[Kit Malthouse]

It is deeply disappointing when Members of this House trade their principles for perceived political advantage, as the hon. Gentleman seems to have done on universal credit, having of course previously been a strong supporter of the coalition Government’s reforms. He knows full well that direct payments to landlords are available. I have myself met the two most prominent residential landlord organisations very recently and, if he looked at the data, he would see that the proportion of working-age recipients of housing benefit and universal credit in the private rented sector seeking support has not really changed over the past 10 years.

[Margaret Greenwood (Wirral West) (Lab)]

It is reported that the Law Centres Network says cases are now common in which eviction proceedings come to court after the Department for Work and Pensions has failed to pay rent directly to the landlords of universal credit claimants, even though it says on a claimant’s journal account that a direct rent payment has been made. What action is DWP taking to address this issue as a matter of urgency?

[Kit Malthouse]

As the hon. Lady will know, we have taken significant action to try to improve the situation upfront, not least by providing an additional two weeks of housing benefit for people transitioning to universal credit. People can receive a 100% advance and help with budgeting support, and of course a direct payment is available if landlord or tenant require it.

Oral Answers to Questions

Margaret Greenwood Excerpts

Monday 26th March 2018 Commons Chamber

[Kit Malthouse]

My hon. Friend made a remarkably good speech about this just a week or so ago, and I congratulate him on his foresight. He is absolutely right: relative poverty as currently measured suggests that there are quite a lot of poor people in Monte Carlo, which, of course, is not an intuitive picture that people would have. As a Department, we are looking at other measures. We believe that absolute poverty, which currently stands at an all-time low, is a better indicator. Of course material deprivation, which asks specific questions about how people live, holds some promise as an indicator that the public might appreciate.

[Margaret Greenwood (Wirral West) (Lab)]

I am disappointed to hear the Minister be so facetious about a subject as important as child poverty. At the last count, 72% of households whose benefits were capped were those of lone parents and 77% of those lone parents had a child under five. They can escape the cap by working at least 16 hours a week, but are then hit by the cuts to work allowances in universal credit, which trap many in poverty. According to Government figures released last week, more than half a million children are currently in poverty in lone-parent families where their parent—usually the mother—is either in full or part-time work. If the Government really believe in making work pay, will they reverse the cuts to work allowances?

[Kit Malthouse]

I know that the hon. Lady likes to present herself as some kind of latter-day mahatma and as the only person in this House who cares about poverty, but, of course, that is not true. Many of us—as councillors, voluntary workers, social workers and so on—have spent many years fighting poverty, so it would be helpful to the general tone of debate in this House if she were not quite so accusatory. Our view, and the Office for National Statistics points this out, is that 100,000 fewer work-age lone parents are now in poverty and that their biggest problem—the biggest thing that assails them—is childcare. The 85% payment for childcare under universal credit and the increase in availability to 30 hours will give the greatest assistance to lone parents.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Work and Pensions (Kit Malthouse)]

My hon. Friend raises an important point, not least because we are approaching the deadline for the switchover of SMI from a benefit to a loan. He is absolutely right—this change is specifically designed to keep people in their homes. I urge people to ignore the scare stories being put around, look at the paperwork, take the phone call that has been made and ensure they make a good decision in time.

[Margaret Greenwood (Wirral West) (Lab)]

Had the Secretary of State read the full article that she refers to on Channel 4’s FactCheck, she would have seen that it said that our numbers were in fact correct.

[Ms McVey]

indicated dissent.

[Margaret Greenwood]

Well, it did. I recommend that the Secretary of State rereads it.

In less than two weeks’ time, support for mortgage interest will change from a benefit to a loan. Government figures released on Friday show that, even at this late stage, the DWP has still not managed to contact 40% of claimants by phone to explain the change, and 30% of all claimants have already declined a loan. A large proportion of claimants are pensioners, and Age UK is warning that many may instead try to manage by cutting back on essentials such as heating. Why have the Government failed to give claimants adequate notice, and will they call a halt to this policy, which risks inflicting hardship on thousands?

[Kit Malthouse]

We have been communicating the changeover with approaching 500,000 pieces of paper since last July, and well over 350,000 telephone calls have been made to the something like 90,000 people in receipt of this benefit. There are specific provisions, post the changeover, to deal with people who perhaps attempt to manage on their own and feel that they cannot do so in that, post the deadline, they can reapply for support and backdate it to 6 April if they so wish.

Welfare Reform and Work Act

Margaret Greenwood Excerpts

Wednesday 21st March 2018 Westminster Hall

[Margaret Greenwood (Wirral West) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Gapes. I congratulate the hon. Member for Central Ayrshire (Dr Whitford) on her measured and comprehensive speech and her focus on the devastating impact of the Welfare Reform and Work Act 2016 on sick and disabled people and the importance of the work done by carers.

The hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) made some extraordinary claims about the track record of the SNP in Scotland, which voted against Labour’s measure that would have lifted thousands of children out of poverty in Scotland.

[Drew Hendry]

rose—

[Neil Gray]

rose—

[Margaret Greenwood]

I will not give way, because I am short of time. I refer the hon. Member for Inverness, Nairn, Badenoch and Strathspey and others to the excellent speech made by my hon. Friend the Member for Glasgow North East (Mr Sweeney) that showed clearly and in detail how Labour has led the fight for a social security system that supports people in their time of need.

[Hon. Members]

Where is he?

[Mike Gapes (in the Chair)]

Order. We can do without the heckling.

[Margaret Greenwood]

The Welfare Reform and Work Act 2016 is having a profound impact on the lives of many of the most vulnerable in our society—the disabled, single parents, pensioners and children growing up in poverty—through a range of policies, accompanied by severe reductions in social security introduced in the 2015 Budget and what we are seeing with the roll-out of universal credit. There is the cut to employment and support allowance for disabled people, which is falling by £30 a week to the same level as JSA, leaving them with just more than £70 a week. There is the abolition of the family element of child tax credit and the equivalent in universal credit, which is worth up to £540 a year for new claimants.

We have a cut in the level of the benefit cap; the four-year benefits freeze; the abolition of targets to tackle child poverty, which Labour had introduced; the two-child limit on new claims for child tax credit and the child element of universal credit; the change in support for mortgage interest from a benefit to a loan that will be particularly hard on pensioners and disabled people; and the cuts to work allowances in universal credit in the summer Budget of 2015, which we call on the Government to reverse. So we see that the claims that the Act rewards hard work and is fair to working households simply do not bear scrutiny.

[Neil Gray]

Will the hon. Lady give way?

[Margaret Greenwood]

No, I am going to make some progress.

In-work poverty has risen to record levels: 8 million people, including 2.7 million children, are in poverty, despite being in a working family, and 67% of working-age adults and children in poverty in the UK are in working households. Many people are stuck in a low pay, no pay cycle, where they may pass from employed to unemployed and back again several times in the course of a year.

A study of in-work poverty published by researchers at Cardiff University found that

“those in working poverty are three times more likely to become workless than people living in non-poor working households.”

It also found that not everyone who finds work progresses to better paid employment. The reports states that

“one quarter of those families where somebody finds work, exit worklessness only to enter in-work poverty. Lone parents are over-represented in this group, as are families with three or more children.”'.

I recommend the report to the hon. Member for Redditch (Rachel Maclean).

The cumulative impact assessment by the Equality and Human Rights Commission published last week, which several Members have rightly referenced, states that the measure that has the most impact on households on low income is the four-year benefits freeze introduced in April 2016. When the benefits freeze began in April 2016, inflation was 0.3%. Despite a fall in inflation last month, it is still at 2.7%, and food prices went up by well over 3% in February compared with the year before. So it is little wonder that the chief executive of the Financial Conduct Authority has warned of increasing household debt built up simply by trying to cover basic household bills.

The Resolution Foundation estimates that by 2019 a lone parent in work with one child will lose £420 a year as a direct result of the freeze alone, and a couple with a single earner and two children will lose £570 a year. If the Chancellor was justified in his claims in his spring statement for improvements in the public finances, will the Government abandon the benefits freeze that is pushing households into poverty?

Housing benefit was first cut in 2011 and is also one of the benefits now frozen by the Act, but private sector rents have continued to rise rapidly. Between 2011 and 2018, private rents in the UK increased by more than 15%—and by more than 12% even if London is excluded. The Act also severely cut the levels of the benefit cap so that it is now hitting the whole of the country, and the cap in practice operates through a cut in housing benefit. The benefit cap is supposedly designed to incentivise work by exempting people who start claiming working tax credits. However, 45,000 households that had their housing benefit capped in November 2017 were single-parent families, and 35,000—

[Neil Gray]

Will the hon. Lady give way?

[Margaret Greenwood]

No, I am really short of time.

Thirty-five thousand of the single-parent capped households had at least one child aged under five, including 15,000 with a child aged under two.

The Act also requires the main carer of a child to look for work once their youngest child turns three, rather than five as previously. Many parents of very young children would actually like to work, but it can be almost impossible for them to find affordable childcare or work that fits around caring for young children. That brings me to one of the most contentious parts of the Act: the abolition of the targets to tackle child poverty set by the previous Labour Government in the Child Poverty Act 2010.

The previous Labour Government lifted 1.1 million children out of poverty through a cross-Government strategy that included Sure Start centres and year-on- year increases in social security, which went hand in hand with employment support targeted at specific groups such as lone parents. There was no thought that people should be left trapped on welfare, as the then Work and Pensions Secretary termed it when the Welfare Reform and Work Bill was being debated.

Labour’s policies achieved results. Between 1997 and 2010, the employment rate for lone parents with dependent children in the UK increased from 45% to 57%. That cross-Government approach has long since been discarded by the Government. The Child Poverty Unit set up to oversee it has been dismantled, and renaming the Social Mobility and Child Poverty Commission “the Social Mobility Commission” in the Act, thus excluding child poverty, says much about the purpose of that Act.

All four members of the board of the Social Mobility Commission stood down in December in protest at the lack of progress in creating a fairer Britain, including Baroness Shephard, deputy chair of the commission and a former Conservative Education Secretary under John Major. Will the Minister tell us his Department’s assessment of what contribution the Act has made to social mobility?

In February, the End Child Poverty coalition published new figures that showed that more than 50% of children in some constituencies are growing up in poverty and that 4 million children are in poverty after housing costs are taken into account. The Government claim their figures show that child poverty is actually decreasing, but they do not have up-to-date figures. The End Child Poverty coalition figures compiled by Loughborough University are for 2017-18, yet the Government’s official figures, to be published tomorrow, will cover only the year before, 2016-17. That time lag is important because, although the benefits freeze came into effect in April 2016, other parts of the Act that are likely to lead to an increase in child poverty, such as the two-child policy, were introduced only in April 2017, and so we have yet to see the full impact of them.

[Neil Gray]

Will the hon. Lady give way?

[Margaret Greenwood]

No.

The main provider of food banks in the UK, the Trussell Trust, has highlighted that food bank referrals have risen by 30% in areas after the full service has been introduced. The EHRC report published last week estimated that 1.5 million children will be living in poverty by 2021-22 as a result of tax and benefit changes, and the Institute for Fiscal Studies predicted in November that the proportion of children growing up in poverty is expected to rise from 30% in 2015-16 to 37% in 2021-2022. It really is time the Government listened to the informed opinion that is available out there.

The two-child limit on new claims for child tax credit and the child element in universal credit is one of the most controversial and, to my mind, one of the most offensive parts of the Act. The idea behind it seems to be that people claiming social security should have to think twice before having larger families, but in the real world unplanned pregnancies happen to people, and people might be unexpectedly made redundant having planned a larger family. Moreover, we should value children and not see them as a burden.

Faith communities are especially concerned about the two-child policy because, for many people of faith, reproduction, use of contraception and family size are determined by beliefs. The policy would originally have also covered children born as a result of rape. The Government were forced to back down, but the exemption still requires a woman to disclose sexual violence, which we know many women understandably find extremely difficult because of, for example, the trauma that they have experienced, a need to protect themselves and perhaps their children, and a fear of the perpetrator.

Someone claiming the exemption must also not be living with the person responsible for the sexual violence. Again, we know that women can be at severe risk at the point when they leave an abusive relationship. It should be the woman who has suffered abuse who decides when that should be. She should not be pushed into doing so at the wrong time by the DWP. The Government have not told us how many people have been affected by the two-child policy or how many have claimed exemptions, even though the policy has been in operation for almost a year now. Will the Government publish those figures and abolish the rape clause, which requires women who want to claim the exemption to prove that they have been a victim of sexual violence? Will the Government abandon the disgraceful policy that treats one child as though they were somehow worth less than another?

In a little over a fortnight, support for mortgage interest will be turned from a benefit into a loan. The Government have left it so late to contact people claiming SMI that at the beginning of March more than half of claimants—53,500 out of 110,000—had still not received a follow-up phone call to the initial letter sent out by the DWP. The delay echoes the fiasco of the pension changes affecting women born in the 1950s, where again people were not given enough time to prepare. Forty-one per cent. of people claiming SMI are pensioners. Turning it into a loan risks pushing them into poverty.

[Neil Gray]

rose—

[Margaret Greenwood]

The Government have made it difficult to trace the overall impact of the Act with all its complexity because they have failed to publish a cumulative impact assessment.

[Neil Gray]

rose—

[Mike Gapes (in the Chair)]

Order. It is quite clear that the hon. Lady is not giving way. She is coming to the end of her remarks, so I will be grateful if people do not try to intervene when it has been made clear that she is not giving way.

[Margaret Greenwood]

Even the impact assessments for each part of the Act are out of date. Civil society organisations such as the IFS, the Resolution Foundation and the Equality and Human Rights Commission have done the hard work and the evidence is damning. If the Government do not like the figures that other organisations publish, they should make sure they publish their own and that they are up to date. The Act uses language such as fairness to working households, a sustainable welfare system and life chances, but it is punitive, not progressive. The groups hit time and again by the Act are those most at risk of poverty: lone parents, larger families and disabled people.

Scottish Welfare Powers

Margaret Greenwood Excerpts

Tuesday 20th March 2018 Westminster Hall

[Margaret Greenwood (Wirral West) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Rosindell. I welcome this debate, and I thank the hon. Member for Ayr, Carrick and Cumnock (Bill Grant) for securing it.

It is important that we debate the impact of the Westminster Government’s cuts to the social security system in Scotland and the whole of the UK. Although the Scottish Government’s response takes steps in the right direction, is not without problems. I pay tribute to my Labour colleagues in Scotland who have worked hard and continue to do so to ensure opportunities are not missed in the Social Security (Scotland) Bill, as my hon. Friend the Member for Glasgow North East (Mr Sweeney) said powerfully. They have used every opportunity available to them to improve the legislation, but we are concerned because, for all the Scottish Government’s warm words, progress has been slow.

I will not go through every aspect of the Bill, because many have been discussed today, or the powers available to the Scottish Government, but I want to raise some key issues that we need answers to. The previous Labour Government strengthened the social security net to lift 120,000 children and 110,000 pensioners in Scotland out of poverty, but ground has been lost since Labour left office. More than one in four children in Scotland now live in poverty.

The Westminster Government’s decision to limit the cap on uprating to 1% from 2013-14 to 2015-16, and the subsequent freeze on the majority of social security payments, have caused low-income households to suffer a significant deterioration in the adequacy of social security support. The freeze to payments and support is having a detrimental impact on millions of people on low incomes across the UK. Inflation has more than doubled in the past year. It hit 3.1% in November, and it is now at 2.7%. Meanwhile, food inflation is at 3.3%. The Child Poverty Action Group states that

“the failure to uprate benefits in line with inflation is the single biggest driver behind child poverty.”

Will the Minister explain why the Government refuse to listen to CPAG and many other expert charities and organisations, and why they will not end the freeze?

I want to see the uprating of social security support both in Scotland, via the powers given to the Scottish Government in the Social Security (Scotland) Bill, and in the rest of the UK. Unfortunately, the Government here have refused to do that, but the Scottish Government still have the opportunity to take action.

[Danielle Rowley (Midlothian) (Lab)]

Does my hon. Friend agree that the Conservative Government’s handling of welfare changes has been absolutely shambolic, and that the SNP Government in Holyrood have dragged their heels? At the centre of this are people, and the finger pointing on display here does nothing to reassure them.

[Margaret Greenwood]

My hon. Friend makes a really important point, but I am so short of time.

In Scotland, some 50,000 households with three or more children are in receipt of tax credits. From April 2017, families no longer received support through child tax credits or universal credit for any third or subsequent child born on or after that date. That also applies to new UC claims. On top of that, the abolition of the family element of the child tax credit for all families whose third child is born after the April 2017 deadline will affect thousands of families who will lose £545 a year. Yet in Scotland the SNP blocked Labour’s plan to introduce a child benefit top-up of £260 each year, which would have lifted 30,000 children out of poverty. After housing costs, 26% of children in Scotland were living in relative poverty in 2015-16—approximately 260,000 children. Does the Minister think that is acceptable? Why does he refuse to act?

On top of that, the switch to universal credit will cause up to 100,000 families in Scotland who are currently in receipt of housing or council tax benefit to lose an average of £1,196 a year in state support for childcare costs. Universal credit is clearly not fit for purpose, so why does the Minister refuse to pause the roll-out and fix the problems to make the system work?

Members have spoken about the flexible payment system, which is important—we have been calling for one for the rest of the UK—and the system of split payment. I would be grateful if the Minister explained to us whether there are any practical reasons why split payments cannot be the default position. There is a great deal of concern about the impact that the current system has on the safety of people living in situations of domestic violence.

Labour has long campaigned for the abolition of the bedroom tax right across the UK, so we welcome the Scottish Government’s action to mitigate its impact. Like the bedroom tax, the imminent changes to support for mortgage interest is another Conservative policy that will hit those on low incomes. Right now, 11,000 people in Scotland who rely on the current scheme have little more than a month to decide whether to take out a loan or pay for the shortfall. I am eager to hear what the Minister has to say about that devastating yet avoidable change. Will he delay the impending changes and review the impact of the options before him?

We welcome the Scottish Government’s agreement with Labour that the new social security agency in Scotland should have a duty to ensure take-up, but we should go further. Will the Minister commit to considering a duty for the rest of the UK? We need a social security system that is reliable, is there for us in our time of need, and provides support should any of us become sick or disabled, or fall on hard times. I am interested to hear how the Minister intends to address that in the light of the changes his party is pursuing.

[The Minister for Employment (Alok Sharma)]

It is an absolute pleasure to serve under your chairmanship, Mr Rosindell. I congratulate my hon. Friend the Member for Ayr, Carrick and Cumnock (Bill Grant) on securing this debate on a key issue for the citizens of Scotland.

We have had an incredibly spirited debate, in which a range of views have been expressed. Of course there have been disagreements, but that demonstrates, as my hon. Friends the Members for Ochil and South Perthshire (Luke Graham) and for Berwickshire, Roxburgh and Selkirk (John Lamont) noted, that ultimately we all care about our constituents and want to do the best by them. That is why we need to work together, across all parties, to ensure that we deliver for the people of Scotland.

[Margaret Greenwood]

Will the Minister give way?

[Alok Sharma]

No, I will not, if the hon. Lady does not mind. A lot of comments have been made, and I want to deal with them.

The devolution of welfare powers represents a considerable and positive change, but it will require strong collaboration and co-operation from all sides if it is to be a success. The hon. Member for Airdrie and Shotts (Neil Gray) asked about the UK’s commitment. I can tell him that we have set up and resourced dedicated teams to lead on Scottish devolutions; we have shared—and we continue to share—our learnings and experience with the Scottish Government; we have run more than 100 workshops and operational visits; and we have shared many hundreds of pieces of information. We are absolutely committed to working in partnership with the Scottish Government to ensure a safe and secure transfer of the welfare powers for which they now have responsibility.

Scotland is an integral part of the United Kingdom, and our economic and welfare reform policies recognise that. Unemployment in Scotland is at a near historic low, which we should all welcome, and more people see greater security in retirement. Following the decisive result of the 2014 independence referendum and the ensuing Smith commission, we are delivering on the promises we made to people in Scotland by devolving £2.8 billion in welfare powers.

Women and Work

Margaret Greenwood Excerpts

Wednesday 14th March 2018 Westminster Hall

[Margaret Greenwood (Wirral West) (Lab)]

It is a pleasure to serve under your chairmanship, Sir David. I congratulate the hon. Member for Redditch (Rachel Maclean) on securing this really important debate and on her wide-ranging speech. It is clear from the contributions we have heard that we are all aware of the importance of equality, to put it in a nutshell, and I thank the hon. Member for Edinburgh North and Leith (Deidre Brock) in particular for giving such a thorough account of all those contributions.

It is hard to believe that until 1946 a marriage bar prevented married women from joining the civil service, and women civil servants had to resign on marrying unless they were given an exemption. It is even harder to believe that the Foreign Office did not remove that bar until 1973. Although we have come a long way in some respects, the continuing gender pay gap, the greater prevalence of zero-hours contracts among women, and the Weinstein scandal remind us how limited progress has been in others.

Women born in the 1950s have lived through major changes in the workplace. They should have the right to a decent pension, but instead their state pension age was changed without sufficient notice for them to prepare properly. Labour would extend pension credit to the women affected and allow them to retire at 64 on a reduced state pension, rather than wait until 66, if they chose to do so. Will the Government act, even at this late stage, to give women born in the 1950s justice?

Many Members mentioned the gender pay gap. It was of course a Labour Government who passed the Equal Pay Act 1970, following the brave fight for justice by Dagenham women who were employed sewing car seat covers. It is less well known that a factor behind the introduction of that Act was the expectation that the UK would soon accede to the European Economic Community, so UK legislation needed to be in line with the treaty of Rome, which requires that men and women receive equal pay for equal work. That helps to illustrate why the Opposition have fought so hard to amend clause 7 of the European Union (Withdrawal) Bill, which was designed to give the Government the power to amend by statutory instrument, primary legislation such as the Equal Pay Act.

The gender pay gap has narrowed over time, but it remains more than 9% for full-time employees and more than double that—18.4%—for employees overall. Men are more heavily represented in highly paid occupations: 72% of chief executives, 70% of managers and directors, and 92% of people in skilled trades are men. For example, easyJet reported a gender pay gap of just under 52%. The main reason for that is that most of the airline’s pilots are male and the average salary for a pilot is £92,000 a year, but more than two-thirds of easyJet cabin crew are women and the average salary for that job is £25,500. Women far outnumber men among health and social work professionals, yet the gender pay gap in that sector is nearly 19%. Some 58% of students accepted on to medicine and dentistry courses in 2016 were women, but only around 16% of consultant surgeons were. Paediatrics was the only specialty where more than a quarter of consultants were women. In contrast, in 2016 only around 11% of registered UK nurses were male.

Companies with more than 250 employees are required to complete a gender audit of pay by April 2018, but the legislation has no teeth. They are not required to do anything about their gender pay gap: the only sanction they will suffer is reputational damage, significant though that may be. Will the Government introduce tough new rules, as Labour would, to fine companies with large gender pay gaps that do not take action to close them?

Another part of the explanation for the overall gender pay gap is that, in general, a far higher percentage of women than men are in part-time employment. Part-time work tends to be paid less well than full-time work, and it offers fewer opportunities for progression. At the last count, 42% of women in employment were working part time, compared with 13% of men—more than 6 million women, compared with 2.25 million men. That difference is especially marked from the age of 30 onwards. That no doubt reflects the fact that women still overwhelmingly play a greater role in bringing up children, caring for other family members and doing household work. Among people over 30, the percentage of men who work full time is around a third higher than the percentage of women. The gender pay gap also rises among older age groups: it is around 2% for full-time workers in their 20s and 30s, but increases to nearly 14% for full-time workers aged 40 to 49.

Those figures should not be allowed to disguise the reality that part-time and flexible work can still be difficult to find. Since last April, mothers whose youngest child is aged three, rather than five as previously, have been required to look for work if they are claiming social security. Many mothers with very young children want to work, but affordable childcare that fits around work is extremely difficult to find in a lot of places, as is work that fits with childcare. Under universal credit, childcare costs have to be paid up front and then reclaimed, which is not the case with tax credits. That is a major outlay for parents, who would not be claiming universal credit unless they were on a low income in the first place. Citizens Advice has also highlighted problems with the online system for universal credit, which does not accept receipts for childcare unless they are in a specific form. Can the Minister assure us that those problems have been resolved?

A study by Gingerbread of employment opportunities for single mothers found that very few part-time jobs were advertised on the Government’s own job search portal, which all jobseekers are required to register with. Will the Government ensure that the claimant commitments of parents of very young children—in particular single parents—reflect the availability of childcare and part-time work?

Women are more likely than men to be on a zero-hours contract: 3% of women in work are on one, compared with 2% of men. They are also more likely to be in temporary work: 5% of women are, as opposed to 4% of men. Insecure work can have different implications for women. Caring responsibilities are difficult to fit in with insecure work, because a parent or carer may not be able to drop everything at short notice for a shift. Will the Government take action to ban exploitative zero-hours contracts, as Labour would?

In her Mansion House speech on 2 March, the Prime Minister said that the UK would

“not engage in a race to the bottom in the standards and protections”

of workers’ rights. We should be far more ambitious than that. The EU is looking to extend those rights by, for example, requiring employers to give workers on zero-hours contracts a written statement of their pay rates and expected hours of work. Will the Government ensure that they match such advances in employment rights, so that UK workers do not have less protection than workers in other parts of Europe after we leave the EU?

The Government estimate that universal credit will bring as many as 1 million people under in-work conditionality by the time it is fully rolled out, which means that people who are in work but on a low income will be asked to increase their hours. However, some sectors, such as retail, where women workers are heavily represented, tend to offer extra hours at weekends or evenings, which are much more difficult to fit around caring responsibilities than daytime hours during the week. What assessment have the Government made of the impact of in-work conditionality on the number of women at risk of being sanctioned?

There is also evidence that women on zero-hours contracts or in temporary work may be at a higher risk of sexual harassment at work, because there is a greater power imbalance between an employer and someone who does not have a permanent contract. Women in that situation may be more reluctant to report harassment, for fear of losing out in future on work that they desperately need, and there may not be a proper HR structure for people to report abuse. In 2014, an employment tribunal imposed £19,500 damages on an employer in a case of that kind. The level of those damages in part reflected the employer’s failure to follow up the complaint, but the tribunal also gave weight to the fact that the employee was on a zero-hours contract and so could be said to be more vulnerable.

It is illegal to treat women less favourably at work as a result of pregnancy or maternity leave. Statutory rights to maternity leave and maternity pay were first introduced in 1975 under a Labour Government. While it is true that domestic legislation predated European directives in this area, European legislation has also led to the extension of rights, such as improvements in the safety and health at work of pregnant workers, and workers who are new mothers. Here again, will the Government ensure that workers in the UK do not come to have lesser rights than their European counterparts as European legislation develops in the area of parental leave?

Rights are one thing; the exercise of those rights and enforcement is just as important. A survey for the TUC shows that one in 10 women found that when they returned to work, they were given a more junior position. In the five years from 2008 to 2013, more than 9,000 women brought tribunal claims on the grounds of unfair dismissal or unfair treatment as a result of pregnancy. It may be even more common than those figures suggest, as many women may not be aware of their rights or simply decide it is too much trouble to fight against discrimination.

Pregnancy and maternity claims fell by one quarter following the introduction of fees, which highlights how important a factor fees were in dissuading people to fight for their rights. Labour pledged to abolish tribunal fees at the last election, and thankfully the Supreme Court ruled in July 2017 that fees were illegal. Statistics published a few days ago show that in the six months after that judgment, the number of employment cases overall taken to a tribunal rose by 100%—although that increase is on a number reduced as a result of fees. Even so, a senior employment lawyer at the solicitors Kingsley Napley recently highlighted that the system is struggling to cope with the increase, as funding for tribunals was cut in the wake of the introduction of fees. At London South tribunal, for example, current estimates are that the parties in a discrimination case that may last two or three days will have to wait until late this year or early next year for it to be heard. The basis of the Supreme Court judgment was that fees impeded access to justice, but so does excessive delay. Will the Government ensure that the tribunal system is properly resourced?

What of the future? As has been said, since 2010 more women than men have started apprenticeships, which is a sign of positive change. A major factor in that was the announcement in 2009 by the last Labour Government of 50,000 new social care apprenticeships and more than 5,000 apprenticeships in the NHS.

[Sir David Crausby (in the Chair)]

Order. I think the Minister needs a chance to reply.

[Margaret Greenwood]

May I finish my speech?

[Sir David Crausby (in the Chair)]

Very quickly.

[Margaret Greenwood]

My final line is that we must fight for equal rights at work, because they are essential if we are to have an equal society.

Child Poverty: London

Margaret Greenwood Excerpts

Thursday 22nd February 2018 Westminster Hall

[Margaret Greenwood (Wirral West) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Henry. I congratulate my hon. Friend the Member for Mitcham and Morden (Siobhain McDonagh) on securing such an important debate.

I have been struck by the passion and clear sense of all the speeches we have heard from Members championing the need to improve the situation of those in poverty. From the stories my hon. Friend told about some of the impacts, I think we will all remember the image of children guarding their school dinner plates with their arms to stop other people taking their food. That is horrific, given the scale of wealth in this country. She made a powerful and moving speech.

I also draw particular attention to the speech by my right hon. Friend the Member for Enfield North (Joan Ryan), who, along with my hon. Friend the Member for Westminster North (Ms Buck), talked about her pride, which I share, in the last Labour Government’s record in lifting 1 million children out of poverty. I also draw attention to the passion of my hon. Friend the Member for Westminster North, which was also touched on by my hon. Friend the Member for Hammersmith (Andy Slaughter), in talking about how such extreme wealth can sit next to such poverty, and the image that people from outside London have of it.

The debate was prompted by the release of disturbing new statistics by the End Child Poverty coalition, which show that, in some parts of London, more than half of children are now growing up in poverty; in Bethnal Green and Bow it is 54%, and in Poplar and Limehouse it is 53%. The Minister questioned those statistics at the last Work and Pensions questions. I suggest that Government Ministers are in no position to do that, given the Government’s reluctance to publish up-to-date figures on a wide range of social security issues. The coalition Government only agreed to continue to publish data on child poverty at all after being pressured by the Opposition and voluntary organisations working in the field.

However, even the Department for Work and Pensions’ statistics on child poverty show that London has the highest rate of child poverty of any part of the UK. According to DWP figures, 37% of children in London are growing up in poverty after housing costs are taken into account. The Institute for Fiscal Studies estimates that current Government tax and benefit policies will see that rise to 41% over the next two years.

Although the rate of child poverty is highest in inner London, it is clear that child poverty is a London-wide problem. For example, some 45% of children in Edmonton are growing up in poverty, as well as 40% in Enfield North and 37% in Croydon North. It is not only the geographical spread that is the problem but the severity of the child poverty. In 2016-17, 40,000 children in London received helped from food banks, according to the Trussell Trust, which is of course the largest but by no means the only provider of food aid in the UK. The latest figures for this year show a similar level of need.

Free school meals ensure that children in families on low incomes get one hot meal a day, which is vital for their wellbeing and ability to learn. The Labour party would introduce free school meals for all primary school children and all secondary school children whose families claim universal credit. Under Government plans, children in families that claim universal credit will no longer be eligible for free school meals if their families earn more than £7,400 a year, which is such a small sum of money that it is difficult to understand how the Department could come up with that policy. Will the Government step back from introducing a cliff edge for eligibility for free school meals?

Many speakers have highlighted the significance of the high housing costs in London; it is something that those of us who do not live in London find quite astonishing. Last September, the median private rent in London for a one-bed property was £1,250 a month, compared with £595 for England as a whole. The level of private renting is at its highest since the 1970s, and private sector rents in London are more than double the average for England as a whole.

Over the past five years, the cheapest fifth of private rents have increased faster than rents in the sector overall. Although the number of children in social housing living in poverty has risen in recent years, the number of children in private rented accommodation living in poverty tripled over the decade up to 2015-16, by which point more than half of all children in private rented homes were living in poverty.

Seven in 10 households in temporary accommodation in England are in London, and more than 80% of them are households with children. Those children have no security in where they live. Levels of overcrowding in London are more than twice as high as the rest of England, and the rate of overcrowding is especially high for ethnic minority households. That means that children may not have the space to play or the peace and quiet they need to do homework. If there are family tensions, it is harder still for children to escape them.

Just 29,000 homes of all types were built in London per year between 2013-14 and 2015-16, and only 24% were —apparently—affordable, which is down 10% on the previous three years. No homes for social rent were built in London in the current Foreign Secretary’s last year as Mayor of London. The current Mayor has set a target in his London plan of 65,000 new homes a year, half of which will be affordable. He also wants to redefine “affordable”, as the current definition of 80% of market rate is beyond all too many people, as many Members have said.

Government funding for affordable homebuilding in London is still less than half the amount spent in 2009-10. The Chancellor announced an additional £2 billion for affordable housing in the Budget, but the Office for Budget Responsibility later revealed that that came from existing housing pots. The Mayor has called for £2.7 billion a year to fund affordable housing in London. Will the Government ensure that he gets the funding he needs to meet London’s housing need?

High London rents mean low-income families are likely to face a shortfall between their housing benefit and their rent. However, the Government have not only failed to back new homebuilding but also cut local housing allowance for private sector tenants in 2011, and then introduced the benefit cap in 2013, which they lowered further in 2016. Will the Government abolish the benefit cap, as Labour would?

In 2013, the Government also replaced council tax benefit with council tax support. Even families with very low incomes are now generally expected to pay some council tax. In 15 London boroughs, 200,000 low-income residents paid, on average, at least £200 more a year towards their council tax than they would have if they had received council tax benefit. Will the Government recognise the pressure they are putting on the finances of families on low incomes and act to restore council tax benefit?

The result of sharply rising rents and less help with housing costs is that low income families are more at risk of losing their homes, which causes misery, for families with children in particular. The total number of eviction orders rose in the five years to 2015-16. Possession orders, rather than mortgage orders, made up 97% of the total eviction orders in that year. High eviction rates are occurring in boroughs with high proportions of families with children living in the private rented sector and receiving housing benefit. Nine of the 10 boroughs with the highest eviction rates are in outer London.

The long waits that universal credit claimants experience for initial payment put them at particular risk of eviction. Increasing numbers of families with children in the capital are claiming universal credit as the full service is rolled out. There is clear evidence from the Residential Landlords Association that landlords are also increasingly reluctant to let to universal credit claimants in the first place.

The Government announced the removal of the waiting period and said that they would make it easier to get an advance, but they refuse to publish regular statistics on timeliness or advances. I had to table a written question in January to find out that, even under the old system of a six-week wait, one fifth of claimants were still not being paid in full on time, and 13% were not receiving any payment at all. The Government would not say how many people had requested an advance, so although more people are getting them, we do not know the extent of the need.

The Minister questioned the End Child Poverty coalition’s statistics. Since the Minister sets such store by accurate figures, will he give a commitment to publish regular statistics on the timeliness of payments and on how many people both request and receive an advance, so that we know whether the changes the Government introduced are making a difference?

The Government do not publish statistics on households affected by the two-child policy either. Will they commit to doing so? That policy will have a particularly severe impact on some religious communities, where reproduction, use of contraception and family size are determined by beliefs, and where culture is also a factor. Those communities are important parts of London’s population, and some of them, such as the Bangladeshi communities in Tower Hamlets and Newham, are located in areas of high child poverty. A couple may well have planned a large family, then found that their circumstances have changed and that they need to receive social security. Will the Government reverse the pernicious two-child policy?

The Government’s stock answer when called to account on child poverty is that work is the best route out of poverty. Yes, it is better to be in work, but work should pay. That was supposed to be one of the foundations of universal credit. However, cuts to universal credit work allowances will hit families on low incomes hard. It is the case that 58% of people in poverty in London are in a family in which someone is in work; that is up from 44% a decade ago. And 17% of people in in-work poverty live in a household in which all the adults work. During the past decade, average weekly pay in London has fallen. In 2016, just over one fifth of workers in London were low paid, compared with 13% in 2005. There is a range of reasons for that, not least a rise in insecure employment. One third of temporary workers are on a temporary contract because they cannot find a permanent job. The figure is nearly 10% higher than in 2004.

Many parents of very young children want to work, but face the challenge of finding both a job that will fit in with parenting and affordable childcare. A recent Gingerbread study of lone parents in Camden highlighted the fact that very few part-time jobs were advertised on the Government’s own job search portal, with which all claimants have to register. The average cost of childcare in a nursery or from a childminder in London is just over £150 a week—more than £40 a week higher than the average for England.

Child poverty in London is not new. Charles Booth’s maps showing the geography of poverty at the end of the 19th century or Roger Mayne’s photos of 1950s Notting Hill testify to that. However, the End Child Poverty coalition’s statistics are still shocking. Rather than questioning the figures and trying to brush them under the carpet, the Government should react to them by making the tackling of child poverty the priority that it should be.

Motability

Margaret Greenwood Excerpts

Thursday 8th February 2018 Commons Chamber

[Ms McVey]

My hon. Friend raises a good point. This issue unites Members on both sides of the House. The first step is for the NAO to look into the matter, but my hon. Friend’s suggestions seem fair and right, and they are the kinds of points we should pursue.

[Margaret Greenwood (Wirral West) (Lab)]

I congratulate my hon. Friend the Member for Bassetlaw (John Mann) on securing this urgent question. I also thank you, Mr Speaker, for granting it.

The news that the chief executive of Motability Operations Group plc took home £1.7 million last year and that the group is sitting on reserves of £2.4 billion has shocked people around the country. Particularly shocked are disabled people, 51,000 of whom, according to Motability’s own figures, lost access to the scheme last year after being reassessed for their personal independence payment. More than 3,000 were reinstated on appeal, but many lost their car in the meantime.

From Carillion to Motability, excessive executive pay is completely out of hand. With Motability Operations Ltd paid about £2 billion a year directly by the Department for Work and Pensions on behalf of disabled people in receipt of social security support, there are serious questions for the Secretary of State to answer. When did she or her officials last meet with either Motability or Motability Operations Group? The National Council for Voluntary Organisations’ “Report of the Inquiry into Charity Senior Executive Pay and Guidance for Trustees on Setting Remuneration”, published in April 2014, says that charities should include their highest earners in their accounts, regardless of whether they work for a subsidiary company. Does the Secretary of State agree?

Motability Operations Group is sitting on a surplus of £2.4 billion. That is a staggering amount given its VAT exemption from the Treasury, which means that it does not compete on a level playing field.

When the National Audit Office last examined Motability in detail in 1996, it found that the then £61 million reserves

“exceeded the necessary margin of safety”.

What assessment has the Secretary of State made of the current necessary margin of safety, and what assessment has she made of the £200 million annual underspend that has allowed such a large surplus to accumulate? Given that the funding of Motability effectively comes from the taxpayer via social security payments, what assessment has she made of value for money for disabled people who rely on their cars for independence? Finally, value for money for taxpayers is not currently one of the criteria for Motability’s remuneration committee. Does the Secretary of State believe it should be?

[Ms McVey]

The Department has worked closely with Motability to ensure that disabled people get good value for money for the cars that they choose to spend their money on. The Charity Commission, which recently undertook a detailed review of the charity’s financial accounts and its relationship with the non-charitable company Motability Operations, said:

“That review did not identify regulatory concerns about the charity’s governance or its relationship with the commercial company. It is not for the Commission to comment on the pay of the CEO of a large non charitable commercial company. However, we have made clear to the trustees of the charity Motability that the pay of the CEO of its commercial partner Motability Operations may be considered excessive and may raise reputational issues for the charity.”

It also found

“the level of operating capital held by the company in order to guarantee the scheme to be conservative”,

but said that it should be “kept under continuous review.” I would say that that review needs to start again. The Charity Commission should again look into what has happened.

It is the Government who permit disabled people to have a benefit, but where that money is spent is always the choice of the people who receive it. When the scheme was originally set up in the 1970s, with cross-party support, that was deemed the best way forward, but as I said, the NAO must now look into the matter. When I personally looked into it in 2013, I ensured that Motability paid £175 million more to disabled people, and I will continue with that direct action from my new elevated position.

Oral Answers to Questions

Margaret Greenwood Excerpts

Monday 5th February 2018 Commons Chamber

[Kit Malthouse]

As my hon. Friend knows, the child maintenance system was put in place to enable greater co-operation between parents, on the basis that that often results in a much better outcome for children, but there are parents who fail to do that, and for those circumstances, we have invested significantly in the financial investigations unit of the Child Maintenance Service. We will be consulting further on what more we can do to strengthen our enforcement powers.

[Margaret Greenwood (Wirral West) (Lab)]

I welcome the Minister to his place. When the benefit freeze was introduced in April 2016, inflation stood at 0.3%; it is now over 3%, and food prices in December were over 4% higher than a year earlier. A recent study by the Institute for Fiscal Studies showed that one in four of Britain’s poorest households are struggling with problem debt, and new figures from the End Child Poverty coalition show that in some parts of Britain, such as Bethnal Green and Bow in London and Ladywood in Birmingham, over half of children are living in poverty. Their families are no longer just about managing. Will the Government end the social security freeze that is pushing families into poverty?

[Kit Malthouse]

I would advise the hon. Lady to be slightly careful about the statistics she is using. As we heard earlier, there are some particular problems, but in that report in particular there were enormous caveats saying that the measures were not accurate and the numbers not necessarily reliable, particularly on a constituency basis. The Government are committed to a strategy to tackle poverty that involves work, and since 2010 we have 954,000 fewer households in unemployment and moved into work. That is the best thing we can do for their futures.

Marriage in Government Policy

Margaret Greenwood Excerpts

Tuesday 30th January 2018 Westminster Hall

[Margaret Greenwood (Wirral West) (Lab)]

It is an honour to serve under your chairmanship, Mr Rosindell. I congratulate the hon. Member for St Ives (Derek Thomas) on securing this debate, and I welcome his inclusion of the importance of protecting families and his focus on providing stability for children. However, I take exception to his claim that family instability is the root cause of poverty, when we know that this Government’s cuts to social security are creating problems for families.

Social security support for low-income families has been cut severely. Most working-age benefits, including child benefit, have been frozen until 2020, and universal credit has been shown to be failing those on low incomes, causing debt and rent arrears. When universal credit was introduced in 2011, the coalition claimed that it would lift 350,000 children out of poverty. By 2013, that estimate had been reduced to 150,000, and by 2016 the Government refused to offer any re-evaluation at all. Can the Minister tell us how many children he believes universal credit will lift out of poverty?

Child Poverty Action Group published an analysis last November estimating that cuts to universal credit would push 1 million more children into poverty by 2020, along with an extra 900,000 adults. When we consider the situation for disabled children, we see that four in 10 are living in poverty, yet the basic level of support for disabled children in universal credit is less than half that available in tax credits.

We have had some interesting contributions; it has been good to hear people talk about how much they have enjoyed their own marriages. I welcome the call from the hon. Member for South West Bedfordshire (Andrew Selous) to tread gently, as marriage is often an issue of cultural sensitivity, and the comments of the hon. Member for Strangford (Jim Shannon), who spoke of the hundreds of wonderful women he has met who are bringing up families alone. It is important to recognise that many people choose to bring up children on their own, and some people find themselves in that situation due to relationship breakdown or bereavement.

Since 2010, successive Governments have sought to reduce the role of the state wherever possible, especially in social security, yet when it comes to whether or not two people should marry—surely the most private of decisions—the coalition Government sought to influence behaviour in relation to that decision by introducing the marriage allowance in April 2015. Details of how the new transferable allowance would work, given in a note published alongside the 2014 Budget, stated:

“Couples where both partners are basic-rate taxpayers will in almost all cases see no gain or loss…Couples will benefit as a unit, but the majority (84 per cent) of individual gainers will be male.”

One must question the introduction of an allowance that the Government knew would disproportionately benefit men; I would be interested to hear the Minister’s rationale for it.

Take-up of the marriage allowance has been poor. Up to October, 2.4 million couples had claimed it, out of an estimated 4 million who were eligible. According to Government figures, the cost in 2015-16 is expected to be £385 million when backdated claims are ultimately included, and £425 million in 2016-17. It prompts the question whether that is really the best use of taxpayers’ money at a time when child poverty is soaring and the Government are cutting support for disabled people under universal credit and the employment and support allowance work-related activity group.

On pension equality, the question is whether some marriages are more equal than others in the Government’s eyes. The Government have spent a great deal of time and, no doubt, a sizable sum of taxpayers’ money opposing pension equality for same-sex couples. When the Marriage (Same Sex Couples) Act 2013 was debated in Parliament, the Opposition called on the Government to close a loophole in the law meaning that married same-sex couples and civil partners were treated differently when it comes to pension entitlement in the event of one partner’s death.

In July, the Supreme Court ruled in favour of equality in a landmark case brought by John Walker, a gay man who found that after 20 years of service to his company, it would provide £1,000 a year in pension to his surviving husband were he to die, whereas if he were married to a woman, she would receive £47,500 a year. Indeed, were he to divorce his male partner and then marry a woman, she would still receive the larger amount. When do the Government intend to respond to the Supreme Court ruling? Will the Minister ensure that the ruling will not be affected by the UK leaving the EU, as it was based in EU law, and will he assure us that the Government will end the disparities in public sector pension schemes?

The Government’s claim that they want to support marriage is also at odds with how cuts in social security since 2010 have put additional pressure on families and parents. Families on low incomes have faced long waits for initial payments of universal credit; figures last week from the Department for Work and Pensions show that one fifth of claimants are still not being paid in full on time, and more than one in 10 are not even receiving partial payment on time. Then there are the cuts to work allowances on universal credit, and the new, lower household benefit cap introduced in November 2016. At the same time, food prices in December were more than 4% higher than the year before. Families on low incomes tend to spend a higher proportion of their wages on basic items such as food and rent.

The Government have recently announced that they intend to create a new cliff edge for eligibility for free school meals, so that families with household earnings of more than £7,400 a year will no longer qualify. The Resolution Foundation has estimated that allowing all children whose parents claim universal credit to receive free school meals would cost £600 million a year. The chief executive of the Financial Conduct Authority warned in the autumn of the scale of the problem of household debt, and a recent study by the Institute for Fiscal Studies showed that one in four of Britain’s poorest households are falling behind with debt payments or spending more than a quarter of their monthly income on repayments.

Relate has highlighted how debt problems can easily lead to conflict and relationship breakdown, whether or not partners are married. That can have a serious impact on children, as research suggests that conflict, rather than family structure, has a negative impact on children’s development. The household benefit cap is forcing families to move away from sources of support such as family and friends. People on a low income may not be able to afford to travel back to see them frequently, either. More than 500 Sure Start centres have closed since 2010. They are another important support for more vulnerable parents in particular. If the Government value family, marriage and stability, why are they closing them? Again, I am keen to hear the Minister’s rationale.

Since last April, parents have been required to start looking for work as soon as their youngest child reaches the age of three, rather than five as was previously the case. A new report published by Save the Children last week found that many mothers would like to return to work or increase their hours, but find childcare simply unaffordable and Government help with the costs complex and difficult to access. Under tax credits, childcare costs are paid in advance, whereas under universal credit they will have to be paid up front and then claimed back, which is always likely to be problematic for parents on low incomes.

Of course, parents in many families are not married, and there are many lone-parent families. Government must recognise and value all family types. The alternative is to risk stigmatising families to no good purpose. Lone-parent families are particularly affected by access to childcare, and have been hit hard by cuts to social security since 2010. An independent study by the Equality and Human Rights Commission of the long-term impact of tax and welfare changes between 2010 and 2017 found that lone parents were set to lose an average of about 15% of their net income. That is almost £1 in every £6.

Lone-parent families make up one in four families with children, and have done for more than a decade. They are part of the mainstream of UK family life, and social policy needs to take that into account. Where a separated or divorced couple shares care of the children, the parent who is not the main carer cannot claim for an extra room for those children under the rules of the bedroom tax, for example. That can cause extreme difficulty for a family who must cope with the break-up of a relationship, and can cause parents, often fathers, to struggle to spend quality time with their children. A Labour Government would scrap the bedroom tax altogether. Will the Minister reconsider the rules of the bedroom tax as they currently affect separated couples to ensure that children do not suffer?

Where relationships unfortunately break down, changes to the child maintenance system have clearly not succeeded in supporting care for children or enabling parents to reach agreements themselves.

In 2012, the Government introduced a new system for child maintenance that aimed to nudge couples to reach agreement without the need for Government intervention. However, it does that by charging both parents—including the parent with care of the child or children, known as the “receiving parent”—if they fail to reach agreement independently.

The Department published a survey in December 2016 that found that around a third of receiving parents who paid the Child Maintenance Service application fee reported that it was difficult to afford. Of parents who did not have a maintenance arrangement at three months, 29% said that the £20 application fee was a factor. Of receiving parents with a direct payment arrangement, 42% cited a desire to avoid collect-and-pay charges as a reason for choosing direct pay and half said that the charges were a factor in their decision.

Will the Government take action to widen access—

[Andrew Rosindell (in the Chair)]

Order. I ask the hon. Lady to wind up, so that the Minister has a chance to respond.

[Margaret Greenwood]

I will.

In conclusion, a stable, loving family is undoubtedly what we would want for all children, but there are many types of family in the 21st century. My right hon. and learned Friend the Member for Camberwell and Peckham (Ms Harman) once said:

“Families come in all shapes and sizes. We don’t favour one way of family life over another. We want to support and back up all families...Government dictating family structures doesn‘t work.”

She is right. This is a question of respect.

The Government should commit to stable families by putting an end to austerity, by giving our schools, police and health services the funding they need, by banning zero-hours contracts, by ensuring that refuges are available for people fleeing domestic violence and by ensuring that the social security system is there for people in their time of need.

Food Poverty: Merseyside

Margaret Greenwood Excerpts

Tuesday 16th January 2018 Westminster Hall

[Margaret Greenwood (Wirral West) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Crausby. I congratulate my hon. Friend the Member for Liverpool, West Derby (Stephen Twigg) on securing this important debate and making such a compelling speech. I join him, as I am sure all Merseyside MPs do, in paying tribute to the food bank volunteers who work so hard to address the needs of those who need help to feed themselves and their families.

We have had some fantastic, passionate contributions, in which the points were made incredibly well. My hon. Friend the Member for Garston and Halewood (Maria Eagle) spoke with passion about the Government’s years of failure to collect the statistics needed to understand the situation. My hon. Friend the Member for Liverpool, Riverside (Mrs Ellman) spoke about the disgrace of food poverty in this country, and the impact of hunger on public health, with particular reference to the increases in the number of people admitted to hospital with malnutrition and in the number of infant deaths. My hon. Friend the Member for St Helens South and Whiston (Ms Rimmer) spoke passionately about the huge inequalities of wealth in society. Her claim that poverty is not inevitable rings true. There were also good interventions from my hon. Friends the Members for Wirral South (Alison McGovern) and for Wallasey (Ms Eagle). I welcome the new Employment Minister to his post.

I believe that the debate is timely. This morning the Institute for Fiscal Studies published a study showing that one in four of Britain’s poorest households are falling behind with debt payments or spending more than a quarter of their monthly income on repayments. Earlier today the Office for National Statistics also published the latest data on food prices. Despite a slight fall in the rate of inflation compared with November, the price of food was still more than 4% higher in December, compared with December 2016.

The full service of universal credit is being rolled out on Merseyside and, despite the changes announced by the Government at the end of last year, leading voluntary organisations make it clear that universal credit has not yet been fixed. It was introduced in Bootle in October and in Wirral in November, and over the year it will spread to the rest of Merseyside, finishing with Everton and West Derby in December, at least if the Government stick to the current timetable. I want to underline the point that food poverty is just one aspect of the pressures that people on very low incomes face. They can face appalling choices such as whether to heat their home or go hungry. Parents may skip a meal so that their children can eat. Those are choices that no one should have to make. The British Medical Association and the Royal College of Paediatrics and Child Health highlighted the link between poverty and poor diet in reports last year, and went on to point out the impact on health not just in childhood, important though that is, but over a much longer period.

The Government do not collect or publish statistics on the number of people seeking help from food banks, despite years of pressure to do so from the Opposition and voluntary organisations. The Trussell Trust, the largest organisation of food banks in the UK, does not seem to find it a problem, and nor have any of the organisations that I have contacted for help on Merseyside, so I ask the Minister once again whether the Government will produce statistics on the number of people receiving help from food banks. We need to know not just how many people seek help but for how long. The Trussell Trust statistics show that in 2016-17, 37,000 adults and 24,000 children were helped by their Merseyside food banks.

The situation varies across Merseyside. Areas such as Birkenhead, Liverpool and Knowsley have the highest rates of poverty, but it is also striking that in my constituency the demand for help has grown even in some relatively affluent areas. In 2017, Wirral food bank distributed 109 tonnes of food. In the north-west as a whole, between April and September 2017, Trussell Trust food banks gave more than 87,000 three-day food supplies to people in crisis, compared with nearly 78,000 during the same period in 2016. That is a 12% increase. The Government commissioned a report from the University of Warwick, which was published in 2014, and one of the points that it made was that people seek help from food banks as a last resort. The fact that so many people are in that situation should be a major concern.

Many of my colleagues have spoken clearly about the reasons why people turn to food banks. The Trussell Trust found that of the people accessing its support 43% did so as a result of benefit delays and changes and 27% did so due to low income. Those are things that the Government can take action on, as my hon. Friend the Member for St Helens South and Whiston pointed out. The length of time for which people wait for an initial universal credit payment has been a major reason for social security delays, if by no means the only one. That also increases the likelihood that people have to turn to a food bank more than once.

Last April the Trussell Trust warned that food banks in areas where the full service of universal credit had been introduced in the previous six months had a 30% average increase in requests for help compared with a year before. From this month, people will be able to ask for a 100% advance on the first payment, and from February the initial five-day waiting period will be removed. Will the Government make a commitment to publish regular statistics on whether they are meeting the new target of five weeks for initial payments, as well as figures for the number and percentage of claimants asking for advances, so that we can have an idea of how far removing the five-day waiting period is affecting the need for advances?

If people are sanctioned, they can be referred to a food bank by the Department for Work and Pensions. The latest statistics for sanctions published by DWP show that the sanctions rate for universal credit increased by more than 3% in the last quarter. Will the Minister look seriously at introducing a yellow card system and non-financial sanctions, as suggested by the Work and Pensions Committee, to help to reduce the number of people who need help from a food bank? Ten per cent. of the people who sought help from Wirrall food bank last year were in employment. That is one reason why it is so important for the Government to reverse the cuts to work allowances for universal credit. Will the Minister urge his new colleagues to do that?

A study published by the University of Oxford for the Trussell Trust, in June 2017, found that people using food banks were likely to belong to groups that are most affected by recent reforms to social security: disabled people, lone parents and large family households. Those groups are particularly affected by universal credit and the changes introduced last April. In the study, more than 50% of households that had received help from a food bank included a disabled person. Mental health conditions affected people in a third of the households. The basic disabled child element in universal credit is half that of the disability element in child tax credit. There is no severe disability premium in universal credit, which means that disabled people who would have been entitled to it will be £65 a week worse off than tax credit recipients.

[Maria Eagle]

Does my hon. Friend accept that many disabled people have special diets and a requirement to eat or not eat certain things? Neither food banks nor the emergency support that they normally access take that into account.

[Margaret Greenwood]

My hon. Friend makes an important point, and for many disabled people, the need to heat their home is also a bigger element in their weekly bills.

Will the Government reverse the cuts to support for disabled people in universal credit? Those cuts will have an increasing impact as universal credit is rolled out to a wider range of claimants. Lone parents and their children constitute the largest number of people receiving help from food banks overall. A study for the Equality and Human Rights Commission found that lone parents were set to lose around 15% of their net income on average—around £1 in every £6—and that households with three or more children could lose as much as £5,400 per year. Will the Government look again at reversing the two-child policy, and heed the warning from the Resolution Foundation that cuts to the work allowance could act as a disincentive for some lone parents to work additional hours, once they have entered employment doing a smaller number of hours at the start?

The Government recently announced that children would be eligible for free school meals if their family’s income was £7,400 per year or less, excluding social security. That creates a cliff edge in universal credit, which could create a disincentive for people to work additional hours—that has always been the Government’s argument against tax credits in general. Free school meals are worth £2.30 per child per day, which over a 38-week school year works out at £437 per child. The Resolution Foundation has calculated that crossing the threshold by earning more than £7,400 a year would effectively mean losing £11 a week in income, and it would take £30 of earnings to claw that back, given the universal credit taper rate. Eligibility for free school meals is another area where families lose more the larger they are. People in insecure work whose income may fluctuate from week to week could face a difficult choice. Will the Government act to avoid families being put in that situation by removing the cliff edge and ensuring that all children in families who receive universal credit are eligible for free school meals?

To conclude, let me underline the seriousness of the situation. New figures this morning show that food prices are still increasing by more than 4%. There is a freeze in key working age benefits until 2020, and wages are stagnating for those in work, particularly those on low incomes. Universal credit is far from fixed, and aspects such as the low level of support for disabled people and the cliff edge for eligibility for free school meals have received much less attention. The Government should act to fix those problems with universal credit at an early stage before people are driven into extreme poverty, and they should return to the original principles of universal credit to ensure that work always pays. They need to tackle poverty, not push families into it.

Just as people are experiencing multiple forms of destitution, there may be more than one reason why someone is forced to turn to a food bank for help. If those groups most likely to use a food bank—disabled people, lone parents, and larger families—are also those who have been hit the hardest by cuts to social security support since 2012, and by cuts to local authority spending and a reduction of services in their areas, then the social security net is clearly not doing the job it is designed to do. It should be protecting people in their time of need.

--- Later in debate ---

[Alok Sharma]

That is the word of an individual who actually has made use of the system.

Ensuring that people get the benefits they are entitled to is important. Whether in work or not, jobcentre staff help their customers to ensure they access their full entitlement to benefits and any other support, such as free school meals and free prescriptions. They also have tailored support for those people who face the most complex employment barriers. That can include temporarily lifting requirements where claimants are homeless, in treatment for drug or alcohol dependency, or victims of domestic abuse.

The hon. Member for Liverpool, West Derby raised a point about people having delays in getting money paid to them. The statistic on universal credit is that 92% of all claimants get all the money they are due paid on time. Of course, no one wants to wait for money if they need it—advances can be claimed on the same day in an emergency.

[Margaret Greenwood]

The Minister is being generous with his time. He is talking about support for the most vulnerable, so would his Government reverse the cuts to support for disabled people under universal credit?

[Alok Sharma]

Hopefully I will have enough time to respond to that point—I believe the hon. Lady is talking about the higher rate of disability premium.

A number of other points were raised about food banks. Jobcentre staff also work in partnership with a variety of local agencies and signpost claimants to local services, including food banks, to help them access the full range of support available. The hon. Member for Liverpool, West Derby quoted from a report from 2016 by Taylor and Loopstra based on UN data. There are a number of reports, including one on income and living conditions produced by Eurostat, which found that the UK has a lower percentage of food insecurity than the EU average and a lower percentage than Germany, France and Italy. Ultimately, we need to ensure that we get help to people who need it, and that we help them into work so that they can support themselves.

[Alok Sharma]

I have given way quite a lot in this debate. If I may, I will continue. If I have time at the end, I will of course take further interventions.

Food inflation has been discussed. Food prices have fallen in three of the past four years, which has a positive impact. Let me address up front the question about the use of food banks. The Government do not propose to record the number of food banks in the UK, or indeed the potential number of people using them or other types of food aid. There is a range of available food aid—from small local provision to regional and national schemes—and the all-party parliamentary group on hunger, which set up an inquiry to thoroughly investigate the use of food banks, said that there were numerous complex reasons why people use food banks.

Jobcentres engage regularly with the Trussell Trust, and are encouraged to foster good relationships with local food banks. In Merseyside, all jobcentres have a food bank single point of contact, and jobcentre staff have been working actively with food banks to ensure that staff are up to speed with the changes resulting from universal credit.

The hon. Member for St Helens South and Whiston (Ms Rimmer) mentioned international comparisons. I refer her to statistics produced by the OECD showing that, since the mid-2000s, the UK has been one of only two major advanced economies with increasing redistribution. It found that, since 2010, growth and income from work for the lowest-income households in the UK is higher than in any other major advanced economy.

The Government have always been clear that universal credit would be introduced in a way that allows us to continue making improvements. That is why, at the autumn Budget, we announced a comprehensive and wide-ranging package of measures worth £1.5 billion to address concerns about the first assessment period and the budgeting issues faced by some claimants at the start of their claim. Since the start of this year, claimants have been able to get 100% of their estimated universal credit payment up front as an advance that they can pay back interest-free over 12 months.

I will address a couple of other points, as I have a few minutes. On the point about disability payments, as the hon. Member for Wirral West (Margaret Greenwood) knows, income-related employment and support allowance and the link to disability premiums, including the severe disability premium, are being replaced by universal credit as part of simplifying the benefit process and to address overlaps. Universal credit has two disability elements for adults, mirroring the design of ESA. The higher rate is set substantially higher than the ESA support component equivalent.

[Margaret Greenwood]

That being the case, why will some disabled people receive £65 a week less than they would have before universal credit?

[Alok Sharma]

I am happy to have a dialogue with the hon. Lady, particularly in my new role, but I point out, as I have said, that the rate is set substantially higher than the ESA support component equivalent. However, I am happy to enter into a dialogue with her outside this debate.