(1 year, 11 months ago)
Commons ChamberI can reassure the hon. Lady that we have taken this entire situation extremely seriously. The House will have heard the remarks by the ombudsman’s CEO about the quality of my Department’s engagement with the ombudsman. I have also said that we provided more than 1,000 pages of evidence to the investigation. I have reassured the House that we will carefully consider the findings of the report, will not unduly delay our response, and will engage appropriately with Parliament, exactly as we have done with the ombudsman.
I must first declare my interest as a 1950s woman. The Secretary of State absolutely knows that real hardship was caused for some women in this age group in 2011 when the former Chancellor, George Osborne—backed by Conservative and Lib Dem Members—fast-forwarded the changes. As the ombudsman said, maladministration in the communication of the state pension age resulted in claimants losing opportunities to prepare. Women affected will be very disappointed by the Secretary of State’s statement, especially as the first stage of the ombudsman’s report in 2021 highlighted DWP failings. Can he please be more precise than saying “no undue delay”? In which month can we expect a proper Government response?
(3 years, 3 months ago)
Commons ChamberAs I have just indicated, I will review that in just under a year. There are of course the discretionary housing payments, which are administered by local authorities for those who feel that they need additional support, and I also point the hon. Gentleman in the direction of the significant cost of living payments that we are providing at the moment to support those in most need.
As my hon. Friends have said, the very least the Government must do is to raise the local housing allowance to keep pace with the real rate of rent inflation. The Department has also cut the funding of last resort, namely, that given to the Welsh Government to provide discretionary housing payments—a cut of 18% last year and a whopping 27% this financial year. Will the Secretary of State now commit to reversing that latest cut, so that local councils in Wales can at least offer some help to those in most dire need and avoid further evictions?
I would just say to the hon Lady that there is the household support fund as well, which she did not mention. That is there to provide support in the circumstances that she described, along with the discretionary housing payments that I set out and the fact that, in 2020, we did indeed raise LHA to be in line with the 30th percentile of local rents.
Again, I thank the hon. Gentleman for raising this issue so constructively. He is right to say that I responded to his earlier question in a letter last week. This matter is sitting with the HM Courts and Tribunals Service, which of course relates to the work of the Ministry of Justice and is independent as part of the judiciary. I will take his point away and flag it with Justice Ministers so that they can see whether there is anything that they can do to raise it.
The Secretary of State mentioned the reduction to 25% of the deductions to universal credit to claw back overpayments or advances, but deducting 25% of money that barely covers the essentials is far too much. A report by Lloyds Bank Foundation says that even at 25% the deductions are pushing people into other debt and leaving them without enough to live on. The Secretary of State will also know that the Work and Pensions Committee has recommended pausing debt recovery during the cost of living crisis. Will the Secretary of State now pause that debt collection and, when it resumes, resume it at a lower level?
The hon. Lady will know that the level of 25% she refers to has been decreasing through time; it was 40% not that long ago, then 30% and now it is 25%. It was paused altogether during the pandemic, and the experience then was that debt started to increase among claimants, in many cases in a way that was not helpful to the claimant. It is an important principle that, where people are in debt, we work with them to make sure we get them out of debt through time, but I accept that we need to do that with great care, hence the various elements of the process that I described earlier.
(3 years, 7 months ago)
Commons ChamberI sincerely hope that the hon. Gentleman joined in on Pension Credit Day of Action on 15 June, because it is incumbent on all Members of Parliament to get behind the efforts of the Government, and successive Governments, to improve pension credit take-up. The fact of the matter is that this Government have done more to increase take-up and the number of claims than any previous Government. There is no doubt whatsoever that we should all get people to apply, with £,3,300-worth of benefits applying for those receiving pension credit.
We estimate that 600,000 people on employment and support allowance will be better off on UC, which is of course a modern, flexible benefit that includes targeted support for disability and which helps to simplify the benefits system, providing support in times of need and making work pay. I can add that the Department holds regular engagement sessions with external stakeholders, including of course disabled people and others in the health and disability sector, seeking their input into the process.
In 2019 the then Secretary of State promised that the Department would pause the migration to UC after a pilot of 10,000 cases, would report back and would provide parliamentary scrutiny of legislation for the wider roll-out. Instead of breaking this promise, does the Minister accept that migration to UC will make thousands of people worse off in real terms just when inflation is going through the roof, and will she now pause the process?
The answer is no, and that is because, first, my right hon. Friend the Secretary of State updated the House through a written ministerial statement only recently in which she explained precisely the point about the prior piloting and exploratory work. Secondly, Parliament voted in 2012 to end legacy benefits and replace them with a single, modern benefit system, and on top of that, committed to providing transitional financial protection. That is the key point in this case: where a claimant may not already be better off—as we have said, in the majority of cases, they are—they are supported.