Oral Answers to Questions
Thérèse Coffey Excerpts(3 years, 10 months ago)
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Patricia Gibson (North Ayrshire and Arran) (SNP)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
Tackling poverty and levelling up opportunity will always be a priority for this Government, while using universal credit, which works for the labour market, to encourage people to move into and progress in work. There are several measures of poverty in the annual publication “Households below average income”—which is based on the annual family resources survey—of which absolute poverty before housing costs is the measure on which the Government most focus. Since 2010, 400,000 people have been lifted out of absolute poverty, including 100,000 children, and additionally, the rates of combined material deprivation and low income for children were at their joint lowest, at 11%, in 2018-19.
Alan Brown [V]
Child poverty is a disgrace in the UK and it is strongly linked to welfare payments. Quite clearly, more people are going to be pushed into poverty if the Tory Government continue with their planned cut to the £20 uplift in universal credit and the working tax credit. Ministers have ducked this all day, but given that the Government did not vote against the motion last week, they have a duty to honour that motion, so will the Secretary of State confirm what discussions she has had with the Chancellor about retaining the vital £20 uplift?
Dr Coffey
I updated the House in November and did say that we would be reviewing this in the new year. That is exactly what we are doing, and I am actively considering with the Chancellor the best way to continue to try to support people who are impacted on strongly by the economic impacts of this pandemic.
Stephen Flynn [V]
Between November 2019 and November 2020, the number of universal credit claimants in Aberdeen South had risen by 188.7%, and any move to cut the £20 universal credit uplift would have a catastrophic impact that would ultimately exacerbate poverty levels. So let us try again: can the Secretary of State confirm that she has made personal representations to the Chancellor on maintaining the full £20 uplift, and if so, and he chooses to ignore her, will she resign?
Dr Coffey
As often happens, as the hon. Gentleman will know from the Scottish Government Administration, Government Ministers tend to have discussions about policy while they are considering it. It is important, recognising the scale of the support that the Government have given to families, businesses and so on, that we continue to make these important decisions based on evidence in a competent, considered and compassionate way. That is exactly what the Chancellor and I will be doing in our recommendations for the Prime Minister.
Patricia Gibson [V]
Unless the universal credit and working tax credit uplift is made permanent, a further 60,000 people in Scotland, including 20,000 children, will be pushed into poverty. If this support is not extended beyond March, and if tackling poverty is a priority for the Secretary of State’s Government, as she says, will she set out what alternative and additional measures her Government intend to bring forward to tackle child poverty, which shamefully still affects 30% of children across the UK?
Dr Coffey
I have already set out the approach and discussions that the hon. Lady can be assured I am continuing to have with other Ministers, including the Chancellor. It is fair to say that we are very conscious that one of the ways to try and help people get out of poverty is through the plan for jobs. While I am conscious that there are not lots of jobs at the moment—although we estimate that there are over half a million vacancies—we want to try and make sure that people are ready to take advantage of the opportunities, particularly when we have seen the number of workless households sadly increase.
Neil Gray (Airdrie and Shotts) (SNP) [V]
The Secretary of State suggested that her approach to universal credit is evidence-based, yet the Government dismissed the Select Committee on Work and Pensions report on this issue. Then she described anti-poverty measures as a priority, yet removing the universal credit uplift would plunge 200,000 children across the UK into poverty. If the UK Government make the smaller one-off payment that has been suggested, it will provide no security and do nothing to help those who first claim UC after the payment has been made. Alongside the discussions on universal credit, has the Secretary of State suggested to the Chancellor any action to end the discrimination against those on legacy benefits who have seen their support rise by just 1.7% during the pandemic?
Dr Coffey
People on legacy benefits can transfer to universal credit, and the final barrier to that is being lifted this Wednesday. I encourage people to consider that move, because we are confident as a Department that the majority of people would be better off. I remind the House that Parliament voted to end both legacy benefits and tax credits and to move to universal credit because it is a welfare system that is agile and incentivises people to work when they can.
Neil Gray [V]
So no action on legacy benefits, which means that the active discrimination from the UK Government against sick and disabled people, who disproportionately claim them, will continue. Robert Burns said:
“Whatever mitigates the woes or increases the happiness of others, this is my criterion of goodness; but whatever injures society at large or any individual in it, then this is my measure of iniquity.”
If the uplift to universal credit is not made permanent, the Secretary of State will be presiding over a system that not only discriminates against disabled people but in which out-of-work support falls to its lowest ever level relative to wages, confirming Burns’s definition of iniquity. In that scenario, how in all conscience could she remain in post?
Dr Coffey
Tonight, many people right across the United Kingdom will be celebrating Burns night, recognising the strength of the poet and the prose he delivers. I am afraid that the hon. Gentleman’s comments fail to hit with me right now. The reality is that we have supported the welfare system with an extra £7 billion in the past year. We continue to spend more on benefits and we continue to spend more to try to help people back into work. This is a Government who are on the side of people, recognising the difficult situation that we face. As I have said before, as long as the Opposition keep trashing universal credit it will be no wonder that people do not realise that many of them would be better off moving tomorrow. I would encourage people to look into that.
Chris Clarkson (Heywood and Middleton) (Con)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
Kickstart has got off to a flying start and I am delighted to inform the House that to date 120,000 kickstart jobs have been approved and 2,000 young people have already started. Around 10,000 jobs are available to young people now and I am expecting a further 33,000 or so to be placed fairly soon while we work with employers to finalise the detail of the job offer. We recognise that young people have been greatly impacted by the pandemic, which is why kickstart is such a pivotal part of our plan for jobs to help them secure a stable footing on the career ladder.[Official Report, 4 February 2021, Vol. 688, c. 7MC.]
Chris Clarkson
Kickstart is a fantastic programme that has created 120,000 opportunities that will benefit young people in Heywood and Middleton and around the country, but of course the core jobcentre offering will be incredibly important as we move to recovery. What measures are being taken to ensure that that is available to people of all ages around the country?
Dr Coffey
My hon. Friend is right. While kickstart is the flagship of our plan for jobs, we are well on track to recruit the extra 13,500 work coaches. Throughout the pandemic and across the country, work coaches have continued to provide support directly and digitally. Helping people to get ready to get back into work is a top priority and that is why other parts of the plan for jobs, including stepping up the number of places on sector-based work academy programmes, boosting job entry targeted support and launching job funding support nationally this month, are how we are helping everybody to try to get back into work.
Seema Malhotra (Feltham and Heston) (Lab/Co-op)
Today, the DWP announced that more than 120,000 kickstart jobs had been created, but the Secretary of State has said that 10,000 placements are available now, and the Financial Times has reported that it is because of the Secretary of State’s delays that the other 33,000 have not yet come on stream. How on earth can it be that fewer than 2,000 young people have started placements to date? This scheme was announced six months ago and over half a million young people are out of work. Is it not the Secretary of State who needs to move up a gear so that we can secure our economy and get our young people into the jobs that they need?
Dr Coffey
The hon. Lady is right to ask why only 2,000 people have started. We have had a record number of applications and we have actually created more job placements than the future jobs fund ever achieved. We are trying to turn that into job starts. There are certain things going on where we are trying to roll out those jobs around the country, but I can assure her that this pipeline of jobs, which will take us right through to the end of the year as we are taking on more, is there to try to ensure that we find people the right sort of kickstarter role. We are also making sure that, as well as having covid-secure arrangements, the training wraparound support is high-quality.
Sir David Amess (Southend West) (Con)
Daniel Kawczynski (Shrewsbury and Atcham) (Con)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
The £170 million covid winter grant scheme is supporting disadvantaged people through the challenging winter months to the end of March with food and utilities. The first wave of funding was given to councils in November. The next tranche of payments is due next month and support for Northern Ireland, Scotland and Wales is already included in the pre-agreed Barnett funding. I have been pleased to see councils go beyond just issuing food vouchers. For example, in Telford and the Wrekin, where a large number of pupils had reportedly been going to school without a warm coat, some of the funding will help ensure that these disadvantaged children are warmly dressed for the cold winter months.
David Johnston [V]
I thank my right hon. Friend for that statement. As well as providing those on low incomes with food boxes, the charity SOFEA in my constituency works with utility companies to try to drive down the costs of people’s bills, recognising that food is not their only challenge. I am hugely supportive of the covid winter fund, but does my right hon. Friend agree that what happens to those on low incomes is not just about what the Government do, and that we need all businesses to look at what more they can do to help drive down the cost of living?
Dr Coffey
My hon. Friend is absolutely right that all businesses can play a part. I praise those mobile phone and internet companies that have offered low-cost packages to people while they are on benefits. In particular there is the warm home discount scheme where my Department works closely with utility companies on data matching. Nearly 1 million eligible claimants received the £140 discount automatically and did not need to apply.
Daniel Kawczynski
Does my right hon. Friend agree that, by providing funding to support families with children of all ages, including pre-school children, the covid winter grant scheme will give local authorities the flexibility they need to ensure that no child goes hungry this winter?
Dr Coffey
I completely agree with my hon. Friend. The terms of the condition of the grants to councils were clear that they needed to reach out to support children of all ages who are disadvantaged. Councils have the ties and the knowledge that make them well placed to identify that. I commend Shropshire County Council, which has received £850,000 over the scheme, for drawing on this information to target its support to help children of all ages, including pre-schoolers and care leavers who are exactly the groups that I hoped would also benefit from the support.
Matt Rodda (Reading East) (Lab)
Too many pensioners face a harsh and challenging winter. Deep concerns about the high rates of coronavirus have been made worse by the effects of the severe weather and isolation from the usual networks of support. Will the Secretary of State reassure the House that the Government will take urgent action both to raise take-up of pension credit for those most in need and to take other steps to protect pensioners? The Government have dithered for too long, and they need to set out a comprehensive package of support for our vulnerable pensioners.
Dr Coffey
I welcome the hon. Gentleman to his place and congratulate him on his new role. On supporting pensioners, I genuinely believe that the Government have gone a very long way with the triple lock. We continue to see that boost with the basic state pension. He may not be aware of the extensive advertising in GP surgeries, post offices and similar that took place in 2020 to encourage people to take up the pension credit. We will continue to consider how that can be improved.
Mr Richard Holden (North West Durham) (Con)
Chi Onwurah (Newcastle upon Tyne Central) (Lab) [V]
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
Our kickstart scheme is putting the future of young people front and centre of our plan for jobs. I have already shared with the House that over 120,000 kickstart roles have now been approved, and we want to turn those into job starts. In addition to making it simpler for employers by removing the 30-vacancy threshold for direct applications, as was set out earlier, employers who cannot currently access kickstart at all—for example, sole traders with no pay-as-you-earn systems—can now join up through the gateway-plus model that is currently provided by the Federation of Small Businesses and Adecco joint venture. It is an exciting phase as we move up a gear.[Official Report, 4 February 2021, Vol. 688, c. 8MC.]
Chi Onwurah
This weekend, Newcastle United fans food bank launched a virtual bucket so that fans can donate small sums online on matchdays to help to meet the massive increase in demand from hungry families. Will the Secretary of State congratulate the food bank organisers on their hard work and ingenuity, and explain to them why she will not cancel the cut to universal credit that will force many of the 16,000 claimants in Newcastle further into destitution, increasing debt, food poverty and demand for the food bank?
Dr Coffey
Of course I congratulate the organisation through the football club to which the hon. Lady refers: it is of great worthiness to undertake that. She will be aware of the support that has been ongoing and also the additional £170 million winter grant from which Newcastle City Council will be benefiting in order to help to make sure that no child goes hungry and every child stays warm this winter.
Stephen McPartland (Stevenage) (Con) [V]
Dr Coffey
We have provided an unprecedented economic support package to protect and create jobs through the pandemic. For people who need to change careers, our sector-based work academy programmes—SWAPs—offer training, work experience and a guaranteed job interview to get those people ready to start a job, allowing them to learn the skills that employers in that particular industry look for. Alongside that, our flexible support fund has been boosted by an extra £150 million so that work coaches can help to support individuals facing redundancy through retraining and overcoming barriers to work.
Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op) [V]
As we have heard, last week this House voted that the Government should not proceed with the £1,000 cut to universal credit set to take place in April. That position is now supported by 280 MPs, more than 60 charities and campaign groups, and the majority of the British public. I have listened to the Government today, as ever, but, as it stands, that cut is formally written into official Treasury documents, and the Prime Minister has indicated that he thinks the cut should happen, but last week the Under-Secretary, the hon. Member for Colchester (Will Quince), said that it was too early to make the decision. Will the Secretary of State clarify what is Government policy on reducing universal credit in April, what criteria will affect the decision, and who in Government will ultimately make that decision?
Dr Coffey
As has been explained several times to the House today, and previously by my hon. Friend the Member for Colchester (Will Quince), the Government introduced a raft of temporary measures to support those most impacted by the covid pandemic. The hon. Member is aware of the statement I made to the House, where I said that the situation would be reviewed in the new year, and that is exactly what I am doing. I am working closely with my right hon. Friend the Chancellor as we consider the options on how best to support people through the pandemic.
Jonathan Reynolds
I put it to the Secretary of State that she must give clarity to the millions of families this cut will affect. If she wished, she could give that reassurance now. I also ask for clarity on reports that the Chancellor is planning on giving a one-off payment to universal credit claimants, ignoring those on other benefits, and leaving the hundreds of thousands of likely new claimants expected this year with lower levels of support. Does the Secretary of State agree that it would be not only unfair, but a very poor use of public money to pay a lump sum to people on universal credit now, while cutting unemployment support to its lowest level for 20 years, just as unemployment is set to peak?
Dr Coffey
I can only more or less repeat what I said before. My right hon. Friend the Chancellor and I are actively working on proposals on how we can continue to make sure that we support people most badly affected by the pandemic. This is part of the discussions that are still ongoing, and I can assure the House that we are actively considering it and hope to make an announcement when we can, in order to give that certainty, as the hon. Member points out, to a number of people.
Robert Largan (High Peak) (Con) [V]
Dr Coffey
My hon. Friend is right to highlight the key role that pension scheme assets can play in tackling climate change. The UK is already leading the way on this issue, thanks to actions taken by the Government, but particularly by my hon. Friend the Member for Hexham (Guy Opperman), the excellent Minister for Pensions. In 2018, we introduced key environmental, social and corporate governance legislation for occupational pension scheme investments, and we have gone further with the pension scheme legislation that is currently awaiting Royal Assent. It makes the UK the first major economy to put assessing climate risk and disclosure into statute for pension schemes, a point that we will continue to reinforce as we run up to hosting COP26, and we encourage other countries to do likewise.
Mike Hill (Hartlepool) (Lab) [V]
Mr David Davis (Haltemprice and Howden) (Con) [V]
Dr Coffey
My right hon. Friend raises an important issue. Within the last year, we have reviewed parts of the complaints process. I am also conscious that my noble Friend Baroness Stedman-Scott, who leads on this, has arranged for more resources to go into the independent case examiner. It would be helpful if my right hon. Friend could share with me or with the noble Baroness the precise details, so that we can investigate what has happened.
Peter Grant (Glenrothes) (SNP) [V]
Dr Coffey
I am not sure which specific payments the hon. Gentleman is referring to. I have highlighted, as has the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Colchester (Will Quince), the warm home discount scheme. There are other winter grant schemes, which have specific criteria. If the hon. Gentleman would like to contact one of the Ministers in the Department directly, I am sure that we can look into that casework for him.
Theresa Villiers (Chipping Barnet) (Con)
Plan for Jobs Update
Thérèse Coffey Excerpts(3 years, 11 months ago)
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The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
The Government’s plan for jobs is already supporting people back into employment. Jobcentres are open across the country, including 262 Jobcentres that recently started opening on Saturdays, and we are now making over 750,000 contacts a week. With an extra 7,000 work coaches already in place, we are on track to meet our commitment to double the number of work coaches by the end of this financial year. While many claimants are ready to move back into work, others may need additional support including acquiring work experience, training or new skills.
For young people especially, a lack of work experience can be a barrier to stepping on to the jobs ladder. That is why, through our kickstart scheme, we are funding the creation of new job placements for 16 to 24-year-olds, with work coaches referring young people to prospective employers who are able to spread the start date of job placements over the next year.
After inviting expressions of interest from employers in September, young people started benefiting from the first placements in November. We have seen a brilliant response from employers with over 32,000 roles already approved. Vacancies have been created with employers large and small and across a range of sectors, including construction, digital and technology, logistics and manufacturing. Processing of applications is now proceeding at pace and we hope to see many more of our young claimants starting placements early in the new year.
In delivering kickstart, it is important that we use taxpayers’ money carefully to ensure the quality of the wraparound support to young people and avoid fraud. Therefore our processes have rightly been rigorous in assessing applications made directly from employers and those made through a kickstart “gateway” where employers, particularly smaller ones, can receive help such as from a local authority or charity. We have over 200 “gateway” organisations now approved with a significant number of roles. However, we know our processes have led to a number of employers and organisations not being approved, particularly applications by sole traders, whether directly or through gateways.
We are continuing to review and improve our assessment and control processes, including those on financial due diligence. For example, currently there is only one route for sole traders to be involved in kickstart and that is through a gateway that provides a PAYE service as part of their support. We have now approved a new gateway, operated by the Federation of Small Businesses and in partnership with Adecco Working Ventures, to provide such a route. Other organisations are considering creating similar models.
Disabled people receiving support through Access to Work are eligible for kickstart placements and these will be actively promoted by our work coaches and national employment programme teams. I am pleased that a number of people on kickstart have come from particularly disadvantaged groups and we will continue to make our work programmes appropriately inclusive.
Other parts of our plan for jobs agenda being delivered by DWP include SWAPs, JETS and JFS: sector work-based academy programmes, job entry targeted scheme and job finding support. The number of referrals and starts made to SWAPs has exceeded our initial estimates and we are seeing thousands of people being supported through our other schemes. In light of this uptake and to ensure that we can continue to support claimants we are taking steps to increase the number of placements available on the SWAPs scheme.
Work is also under way on Restart, our long-term unemployment programme, that will support over one million individuals. We have issued our invitation to tender for the programme to start in summer 2021.
Our plan for jobs is the most ambitious employment programme ever undertaken, particularly the scope and extent of kickstart. I encourage members of the House to work with local employers to ensure kickstart helps provide a flying start for our young people.
[HCWS647]
Oral Answers to Questions
Thérèse Coffey Excerpts(3 years, 11 months ago)
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Mohammad Yasin (Bedford) (Lab)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
The most recent statistics, released last week, show that 140,000 households with children have had their benefit capped. The proportion capped remains low by comparison with the overall universal credit case load. New and existing claimants can benefit from a nine-month grace period when their benefit will not be capped if they have a sustained work history, and exemptions of course also remain in place for vulnerable claimants. Since the introduction of the cap, 190,000 households are no longer capped under such benefits and nearly 80,000 are no longer capped under UC.
Mohammad Yasin [V]
The number of households with children receiving universal credit who are subject to the benefit cap in my Bedford and Kempston constituency rose by a staggering 186% between January and May this year, so will the Minister guarantee that the £20 UC uplift will reach the families who need it?
Dr Coffey
My understanding is that 460 households with children were subject to the UC cap in the Bedford local authority area. I am conscious that that is a higher number than the hon. Gentleman may wish, but I point out to him that we can also make the effort to encourage people to go for vacancies, so that they can start to earn more money, which at some point triggers a removal of the benefit cap.
Stephen Timms (East Ham) (Lab)
The number of households affected by the cap has more than doubled since the start of the pandemic, to 170,000. In addition, 160,000 households will come to the end of their nine-month benefit cap grace period in the coming month. So will the Secretary of State consider extending the grace period, to avoid cutting the benefits of hard-pressed families in the run-up to Christmas?
Dr Coffey
The statistics indicate that 140,000 households with children have their benefit capped; my understanding is that overall it is about 3.1% of the UC case load. I am conscious of the fact that the right hon. Gentleman wrote to me last week, in his role as Chairman of the Select Committee, with a variety of questions on the benefit cap. I will respond to him shortly, and I believe that is one of the questions he has asked me to address.
Seema Malhotra (Feltham and Heston) (Lab/Co-op)
Some 85% of capped households have families with children, and the Minister revealed last week that more than 160,000 households on UC could see their benefits capped in December, when their grace period comes to an end. Does she feel no shame in plunging families and children into hardship right before Christmas? Children are paying the price for their parents losing their jobs. This is a ticking time bomb and she can stop it—it is her choice: will she scrap the cap?
Dr Coffey
The cap has been in an important part of policy in trying to stimulate entrance into work. I am conscious that there are still only about half a million vacancies, compared with a significant number of people unemployed. However, I am sure the hon. Lady will welcome, with me, some of the actions that are possible for some of the most disadvantaged families, particularly those supported by the £170 million covid winter grant, from which I understand her local council will benefit to the tune of about £823,000.
Shabana Mahmood (Birmingham, Ladywood) (Lab)
Jack Lopresti (Filton and Bradley Stoke) (Con)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
Earlier this month, I announced the £170 million covid winter grant scheme to help disadvantaged people, particularly children, through the challenging winter months ahead, with food and essential utility bills over Christmas through to the end of March. The first half of funding for the scheme will reach local authorities in England this week. I am delighted to say that Nottinghamshire has been allocated £2.3 million and South Gloucestershire £569,000.
Ben Bradley [V]
Does my right hon. Friend agree that it is hugely important for the most vulnerable children—those whose welfare we know is a source of worry for their teachers when they do not see them for weeks—that we can offer the best possible help in the holidays, with proper structured and face-to-face support for those children and their families such as that offered through our holiday activity clubs?
Dr Coffey
I agree with my hon. Friend and he looks ready and dressed to support a holiday activity fund when the opportunity comes along. Maintaining that important link over the longer holidays can be transformative for children’s health and educational prospects, which is why I was proud to announce earlier this month the £220 million expansion of the programme for the longer school holidays right throughout 2021. This will offer enriching activities such as arts and sports, which will help them to perform better in school, as well as a free nutritious meal while they are there.
Jack Lopresti
I welcome the announcement of the additional winter support funding across South Gloucestershire, which will benefit lots of my constituents, but can my right hon. Friend assure me that this additional funding will be spent efficiently by the councils and go to the people who need it?
Dr Coffey
My hon. Friend is absolutely right to stress that point. As I have already indicated, his council will receive just over half a million pounds. The grant has come with conditions to ensure that the money is targeted towards the most disadvantaged people, and councils will be expected to report on that. They have a wide range of information to help them, including access to who is on benefits and other elements, to ensure that they reach people who really are disadvantaged at this time of year.
Patrick Grady (Glasgow North) (SNP)
Allan Dorans (Ayr, Carrick and Cumnock) (SNP)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
The further funding for our plan for jobs—particularly the £2.9 billion for the restart programme that is focusing on those at risk of long-term unemployment —as well as ongoing support for our other schemes and work coaches shows our focus on helping people to get back into work. Through Barnett consequentials, £36 million of funding will be available for equivalent measures in Scotland next year. Other elements, such as the record increase in defence spending and the 10-point plan for a green industrial revolution, will help to create new jobs that will positively impact Scotland and the wider UK.
Patrick Grady
That will be news to my constituents in Glasgow North, who have had to cope with the closure of their jobcentre. That decision, along with the closure of 200 other jobcentres since 2010, is starting to look a little bit short-sighted. The Chancellor says that he will do everything it takes to support the estimated 2.6 million people who will be unemployed next year, so where exactly are these job coaches going to be based, and will the Government prioritise the places that have already suffered from the closure of local jobcentres?
Dr Coffey
I think it is the situation in Glasgow that a number of jobcentres were consolidated into one area. I am a great believer that, instead of necessarily investing money in bricks and mortar, we should invest in the people who will provide that support. In Scotland more broadly, we are aiming to hire over 800 new work coaches; 400 have already been recruited to date, and I know that some of those are in Glasgow.
Patricia Gibson
The Chancellor could have made the £20 uplift to universal credit permanent, but instead he has left households deeply concerned as they face the prospect of a cut to this vital lifeline in spring. We in the Scottish National party have pressed UK Ministers on this matter countless times. Will the Secretary of State tell the House whether she discussed extending the universal credit uplift with the Chancellor prior to the spending review, and whether she believes that this extension should have been included?
Dr Coffey
The hon. Lady will be aware that the temporary extension of the £20 universal credit uplift was made in line with the fiscal measures made earlier this year. With regard to the benefit uprating, I put that through as that is the normal process that we go through, but, as has been indicated, we will continue to look at this matter again in the new year.
Allan Dorans [V]
For the last eight months, around 2 million disabled people and others on legacy benefits have been discriminated against through being excluded from the £20 uplift granted to those receiving universal credit. The Chancellor’s failure to extend the £20 uplift to them is another humiliating insult to the most disadvantaged and vulnerable in our society, and only granting them an additional 37p a week from next April is nothing short of abhorrent. Does the Secretary of State think it is acceptable that people on legacy benefits are now facing a second year without sufficient financial support from this Government?
Dr Coffey
Last year we actually increased benefits by inflation, and we have made sure that that has happened again so that there are no cuts in that regard. I am keen to continue to do what we can to encourage people to move across to universal credit. There is only one group of claimants who are effectively barred from doing that, and that will change in January next year. I genuinely want to put across how important it is; by using things such as Help to Claim and getting support directly, people can often see that they will be considerably better off under universal credit.
Ms Karen Buck (Westminster North) (Lab)
The Secretary of State announced that the local housing allowance would again be frozen in cash terms in 2021, having only moved out of the previous freeze in March. That means, as the Office for Budget Responsibility has pointed out, that LHA rates will fall back below the 30th percentile. The Government have cut local housing allowance consistently since 2010-11, including freezing it from 2016 to this year. Will the Secretary of State tell us what estimate the Department has made of the effect on children in poverty of pushing the LHA back below the 30th percentile?
Dr Coffey
The decision made last year was to increase to the 30th percentile in cash terms—that is around £1 billion of welfare support that has been added. On consideration, we felt it was right to continue the cash freeze as we recognise that around the country we are seeing rents potentially going down, although I recognise that in some places they may continue to rise. Overall, people have certainty in the amount of cash that they have. It is certainly not going back but about making sure that this is a permanent change and was not just a temporary one.
Ms Buck
The fact is that the number of children in poverty in the private rented sector rose by half a million between 2010 and 2019, so whatever uplift has been put in over the past year is in that context and we will see more children plunged into poverty as a result. Will the Secretary of State tell us exactly what steps she will take to ensure that more children do not fall into poverty as a result of the re-freezing of housing allowances?
Dr Coffey
I think I have already answered the hon. Lady. We have not reduced the LHA back to pre-covid arrangements; we decided to make that change a permanent fixture but to freeze it at cash levels, recognising that, as I said, nearly £1 billion had been injected into welfare support. We will continue to work on this issue throughout the country and I am keen to see what we can do on aspects of housing, which is why I am in regular conversation with the Ministry of Housing, Communities and Local Government about how we do things such as bring empty homes back into use as accommodation. I want to make sure that people have as much affordable housing as possible, and the increase to LHA of nearly £1 billion is one way to achieve that.
Neil Gray (Airdrie and Shotts) (SNP) [V]
Shortly, Nicola Sturgeon will outline in her conference speech plans to pay families who receive free school meals a £100 grant to help them through winter till the new, game-changing Scottish child payment starts in the new year. The Secretary of State’s Government could have matched the Scottish Government’s anti-poverty ambition at the spending review, but they failed even to make the UC uplift permanent or extend it to legacy benefits. Can she point to anything in the spending review that is there to address poverty?
Dr Coffey
The best way to get out of poverty is to get into work. I am very conscious that there are real challenges right now, as we see an increasing number of unemployed people. There are vacancies, but part of the Government’s job is to stimulate interest, which we are doing with a multibillion-pound investment in a variety of schemes, not only to create jobs, with kickstart, but to make sure that people are ready to get back into work. The idea is that we need to try to create confidence within business, and that will be a key part of that. I am sure the hon. Gentleman welcomed the money that came through the Barnett consequentials that will support initiatives that the Scottish Government might wish to undertake.
Neil Gray
The Secretary of State talks about jobs, yet just as employment is expected to reach 2.6 million, she plans, shamefully, to cut universal credit. Ahead of the spending review, a petition organised by the Disability Benefits Consortium and signed by 119,000 people was handed in to the Government, calling for the UC uplift to be extended to legacy benefits. Given that living costs have increased dramatically for disabled people during the pandemic, why have the Government not acted? Does that not just summarise perfectly the tale of two Governments: a Scottish Government extending support to those who need it while the UK Government increases disability benefits by a derisory 37p?
Dr Coffey
Last week I published the benefit uprating statement, which indicated the inflation rise for benefits, as well as the 2.5% for state pensions. I am conscious that a number of different things are going on with benefit spending—my hon. Friend the Minister for Disabled People, Health and Work just reminded me that benefit spending on people with disabilities is up 5%. I think there is a lack of understanding of what the spending review is: it is not about budgetary measures, which tend to come with major fiscal events. As has been indicated before, the decision to consider the temporary uplift to universal credit will be made in the new year.
Margaret Greenwood (Wirral West) (Lab)
Christian Wakeford (Bury South) (Con)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
Our plan for jobs includes a range of targeted measures to help claimants of all ages. Our job entry targeted support scheme—JETS—will help over 250,000 people of all ages who are unemployed for three months to re-engage with the labour market. Young people at Bury jobcentre are currently receiving support from a specialist work coach, offering tailored support, and linking with local authorities to establish a virtual youth hub, Bury works.
Christian Wakeford
Mr Speaker, I hope you were able to enjoy a happy Lancashire Day, although in a covid-secure manner.
Can I thank my right hon. Friend for the work she is doing on getting young people back into work with programmes such as kickstart, and can I ask my right hon. Friend to advise what work is being done to help get those over 50 back into work also?
Dr Coffey
There is a wide range of programmes where people can consider potential changes of career. That could be through SWAPs—sector-based work academy programmes, JETS, which is specifically targeted at older people, or kickstart, which tends to be focused on younger people. It is important to recognise that there is a wide range of opportunities with which our work coaches will be trying to help people at this difficult time in their lives, but there are wider schemes that people can consider. I am particularly excited by the Department for Education proposals on things such as Teach Last, because I think there is a lot of talent that could be used to help the next generation too.
Robert Halfon (Harlow) (Con)
Steve McCabe (Birmingham, Selly Oak) (Lab)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
Last week I announced the outcome of my annual uprating review. It delivers on our manifesto commitment for the pensions triple lock, thus providing financial peace of mind for pensioners across the UK. The basic and new state pension will be increased by 2.5% as that is the highest of the increases—inflation, earnings or 2.5%—and it means that from April 2021 the yearly basic state pension will be worth around £2,050 more in cash terms than in 2010.
Steve McCabe
With Birmingham set for an extended period in tier 3, does the Secretary of State have any plans to revisit the plight of pregnant mothers who are eligible for universal credit but ineligible for statutory maternity pay and therefore at a considerable financial disadvantage?
Dr Coffey
Of course, being in tier 3 has been put forward by the Government, and I am very conscious of the efforts that were being made right across Birmingham and other areas of the west midlands to get out of that tier. As regards matters such as statutory maternity pay, a lot of these things continue to be under consideration, but I will consider the points the hon. Gentleman has made.
Damien Moore (Southport) (Con)
Dr Coffey
My hon. Friend rightly draws attention to this important point. As a result of actions by this Government the UK is the first major economy to put climate risk and disclosure into statute for pension schemes, leading the way on this issue, having already legislated for net zero by 2050 and introduced ESG—environment, social and governance—legislation through 2018 amendments to the occupational pension schemes investment regulations. I genuinely look forward to when we manage to complete the Pension Schemes Bill to bring all that into effect.
Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)
Last week the Chancellor described the scale of the unemployment crisis in the UK when he said that we could be facing 2.6 million people out of work next year. The Government’s major announcement to tackle that was the restart programme, but analysis of the spending review document shows that restart will not get up to scale until 2022, a full year after unemployment has peaked, so what will the Government be doing next year, as unemployment peaks, to help people get through the crisis?
Dr Coffey
The hon. Gentleman is right to draw attention to our plan for jobs. He will be aware that there are a number of schemes already under way, including kickstart, JETS and the sector-based work academy programme. It will take a little time to contract for the long-term unemployment programme, but I assure him that, compared with the last financial crisis just over a decade ago under the Labour Government, we have acted far more quickly in getting these employment contracts in place, because we need to make sure that people do what they can to try to remain connected to the labour market.
Jonathan Reynolds
I am grateful to the Secretary of State for that answer, but last week the Chancellor said that this is the biggest economic crisis for 300 years, and he is right, so I cannot understand how those same spending review documents show the Government cutting universal credit next April—a £1,000-a-year cut, taken from 6 million families just when they need it most. No Government since the great depression have cut unemployment benefits during a crisis, so how can the biggest economic crisis for 300 years be the time to do so?
Dr Coffey
As the hon. Gentleman knows, the Government introduced a raft of temporary measures to support those hardest hit, including the furlough scheme, the self-employment income support scheme and the £20 UC uplift. The Chancellor has confirmed the UC uplift until March ’21, and it is right that we wait for more clarity on the national economic and social picture before assessing the best way to support low-income families moving forward. That is exactly what I put in the written ministerial statement last week.
Mark Jenkinson (Workington) (Con)
Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)
Dr Coffey
We want to make sure that all eligible pensioners claim the pension credit to which they are rightly entitled, and we want to encourage people to either call the free claim line—0800 999 1234—or go online to gov.uk/pension-credit. We did a considerable amount of advertising earlier in the year to encourage that, and of course the BBC has, in effect, done some free advertising, recognising that those people who have pension credit will also get a free TV licence.
Mark Menzies (Fylde) (Con) [V]
Bell Ribeiro-Addy (Streatham) (Lab)
Dr Coffey
The situation that happens with aspects of pensions is quite complicated and often these are reciprocal arrangements, so that is where such things as aggregation may well happen, but that does rely on those agreements being in place. That has been the policy on pensions for longer than any of us in this House have been alive, I expect, and it continues to be honoured. I am conscious of what the hon. Member says, but there may well be other elements of support that the constituent to whom she refers may be entitled.
Mike Hill (Hartlepool) (Lab)
Rob Roberts (Delyn) (Con)
Dr Coffey
I know that the Pensions Minister—the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Hexham (Guy Opperman)—will be delighted to meet my hon. Friend and to look at this matter. We take this absolutely seriously, in terms of wanting people to get the benefits to which they are entitled, and I am sure that he, as a very diligent local MP, will be able to use every lever that he has to improve the prospects of his constituents.
Jonathan Gullis (Stoke-on-Trent North) (Con)
Social Security Benefit and Pension Up-rating 2021-22
Thérèse Coffey Excerpts(3 years, 12 months ago)
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The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
I have concluded my statutory annual review of benefit and state pension rates. The new rates will apply in the tax year 2021-22, and come into effect on 12 April 2021. The Social Security (Uprating of Benefits) Act 2020 enables me to increase the basic and new state pensions and the standard minimum guarantee in pension credit by providing a discretion to increase them for one year even though there has been no growth in earnings.
State pensions will be increased by 2.5%, in line with the Government’s manifesto commitment. The full rate of the new state pension will now be worth £179.60 per week. The standard minimum guarantee in pension credit will also increase by the same cash amount as the basic state pension, rising by 1.9%.
All other benefits will be increased in line with CPI —which was 0.5% in the relevant reference period. This includes working-age benefits, benefits to help with additional needs arising from disability, carers’ benefits, pensioner premiums in income-related benefits, statutory payments, and additional state pension.
Separate to the uprating review, I can confirm that the increase to local housing allowance rates in April this year will be maintained in cash terms in 2021-22. The assumption in the forecast is that rates will remain at these levels in future years, subject to the Secretary of State reviewing annually in the usual way.
All of these pensions and benefits are transferred to Northern Ireland, and corresponding provision will be made there. Some of these benefits are devolved to Scotland; in respect of these, the Scottish Government will bring forward corresponding legislation in the Scottish Parliament.
The statutory annual review is separate from the temporary £20 per week uplift to universal credit and working tax credit, which was announced by the Chancellor as a temporary measure in March 2020, and enacted for one year under different legislation to support those facing the most financial disruption as a result of the public health emergency. As the Government have done throughout this crisis, they will continue to assess how best to support low-income families, which is why we will look at the economic and health context in the new year.
I will place the full list of proposed benefit and pension rates for 2021-22 in the Library of the House.
[HCWS600]
Work and Pensions
Thérèse Coffey Excerpts(4 years ago)
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Sir Robert Neill (Bromley and Chislehurst) (Con)
A number of my constituents are receiving letters out of the blue saying that the Child Maintenance Service is writing off unpaid payments as part of a review of historical debt. Will my right hon. Friend tell me the basis for the review, what the criteria are for the cases, how many are involved, and by what means personal advance notice of the changes is being given to the people concerned?
Dr Coffey
My understanding is that the policy relates to people who have had child maintenance arrangements for a very long time. There comes a point when there is an element of understanding the different debts. My hon. Friend will be aware that, in a way, this is a very odd arrangement, with the state effectively becoming the arbiter between two parents. The only people who lose are the children. That is why I encourage everybody who has a responsibility towards their children—currently 111,000 children are owed £187 million by parents who refuse to pay up—to get on and do the right thing by them. We should not end up having to rely on the state to arbitrate between two parents.
[Official Report, 19 October 2020, Vol. 682, c. 753.]
Letter of correction from the Secretary of State for Work and Pensions, the right hon. Member for Suffolk Coastal (Dr Coffey).
An error has been identified in the response I gave to my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill)
The correct response should have been.
Sir Robert Neill (Bromley and Chislehurst) (Con)
A number of my constituents are receiving letters out of the blue saying that the Child Maintenance Service is writing off unpaid payments as part of a review of historical debt. Will my right hon. Friend tell me the basis for the review, what the criteria are for the cases, how many are involved, and by what means personal advance notice of the changes is being given to the people concerned?
Dr Coffey
My understanding is that the policy relates to people who have had child maintenance arrangements for a very long time. There comes a point when there is an element of understanding the different debts. My hon. Friend will be aware that, in a way, this is a very odd arrangement, with the state effectively becoming the arbiter between two parents. The only people who lose are the children. That is why I encourage everybody who has a responsibility towards their children—as of the end of June 2020, £362 million in unpaid maintenance was owed by parents—to get on and do the right thing by them. We should not end up having to rely on the state to arbitrate between two parents.
Supporting Disadvantaged Families
Thérèse Coffey Excerpts(4 years ago)
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The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
Throughout the coronavirus pandemic, this Government have put an unprecedented package of support in place to strengthen the safety net for individuals, families, communities and businesses who need help at this critical time. We recognise that this has been a challenging year for everyone, especially for those who have lost their jobs and those families who are feeling the extra strain, worrying about putting food on the table or money in the meter. The Prime Minister has been clear that this Government will use all their efforts to make sure that no child should go hungry this winter. This Government also want to ensure that every child reaches their full potential. That is why I am announcing a comprehensive package of support to see these families through the winter months and beyond, through the new covid winter grant scheme, increasing the value of Healthy Start vouchers, and the national roll-out of the holiday activities and food programme for the longer holidays in 2021.
With Christmas coming, we want to give disadvantaged families peace of mind and help those who need it to have food on the table and other essentials so that every child will be warm and well fed this winter. Through the covid winter grant scheme, we are delivering £170 million to local authorities in England, starting next month, to cover the period until the end of March. That fund builds on the £63 million already distributed earlier this year and, as then, funding will be disbursed according to an authority’s population, weighted by a function of the English index of multiple deprivation. Any Barnett consequentials are already included in the guaranteed £16 billion funding for the devolved Administrations, so there is funding available for every child in the UK, and I hope that the devolved Administrations will play their part in this mission.
Local councils have the local ties and knowledge, making them best placed to identify and help those children and families most in need, and it is important to stress that the scheme covers children of pre-school age, too. Targeting this money effectively will ease the burden faced by those families across the country worrying about the next bill coming through the letterbox or the next food shop. Grants will be made under section 31 of the Local Government Act 2003, and different from earlier in the year, they will carry conditions and reporting requirements to ensure that the scheme is focused on providing support with food and utility costs to vulnerable families with children who are affected by the pandemic. We will require that at least 80% of the grant is spent on children with their families, providing some flexibility for councils to help other vulnerable people. We will also require councils to spend at least 80% on food and key utilities, again providing some flexibility for other essentials.
In trying to give children the best start in life, it is important that food for young children and expectant mothers should be nutritious, as that will help in their future health and educational attainment. That is why we are increasing the value of Healthy Start vouchers by more than a third, helping low-income families to buy fresh milk and fruit and vegetables, and helping to boost their health and readiness for school. From April 2021, the value of vouchers will rise from £3.10 to £4.25.
The third part of our comprehensive package is the extra support we will be giving children and families during the longer school holidays. After successful pilots of our holiday activities and food programme, I am pleased to let the House know that it will be expanded and rolled out across the country starting from Easter next year, through the summer and the Christmas holidays, supported by £220 million of funding.
Our manifesto set out our commitment to flexible childcare, and the expansion of the holiday activities and food programme has always been part of that commitment. We are building on the learning from the successful delivery of the programme over the past three years to expand it across England, as we had set out to do. The programme, which is being extended to all disadvantaged children, offers that vital connection for children during the longer school holidays to enriching activities such as arts and sport which will help them perform better in school, as well as a free, nutritious meal while they are there.
In May, the Government provided £16 million to charities to provide food for those struggling due to the immediate impacts of the pandemic. I announce today that we will match that figure again, making a further £16 million available to fund local charities through well-established networks and provide immediate support to frontline food aid charities, who have a vital role to play in supporting people of all ages. The package taken as a whole will make a big difference to families and children throughout the country as we continue to fight the virus.
We are taking a long-term, holistic approach, looking at health, education and hunger in the round, not just over the Christmas period but throughout the winter and beyond. This is not just about responding to the pressures of winter and covid but about further rolling out the holiday activities fund, which is an established part of the Government’s approach to helping children reach their full potential. With this announcement, we are ensuring that as well as taking unprecedented action to protect jobs and livelihoods, we are protecting younger generations.
We are living under extraordinary circumstances, which require an extraordinary response, but I am steadfast in taking action to support all children to fulfil their potential long after we have beaten the pandemic. Social justice has been at the heart of every decision this compassionate Conservative Government have made, whether that be protecting over 12 million jobs through our income support schemes, injecting over £9 billion into the welfare system or providing over 4 million food boxes to those shielding. This is yet another example of how the Government have supported people throughout the pandemic.
Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)
I thank the Secretary of State for advance sight of her statement. The Opposition welcome any move that will stop children from going hungry over the tough months that lie ahead. I would hope that that is true of everyone elected to this Parliament, so I still cannot believe that the Government have had to be dragged kicking and screaming to the right place and to acknowledge that, in this country, in this day and age, no child should be going hungry. I am astonished that the Government can somehow pretend that we did not all hear hours and hours of justification from them, in this House just a fortnight ago, for why they thought the absolute opposite of what has been announced today.
In my 10 years in Parliament, I have never been so depressed as I was when I listened to the comments made on the Conservative Benches during the holiday hunger debate and on social media afterwards. That was not because of the disagreement on policy; debate and disagreement are what Parliament is all about. What I could not stand was the toxic commentary and the stigmatising of good people in hardship due to the economic mess this Government are themselves responsible for. I am talking about the unacceptable insinuations about money for children’s food being spent on brothels and drugs, with no evidence to back that up. I am talking about Tory MPs attacking businesses in their own constituencies that had stepped up when the Government would not do so, and using that compassion as evidence that financial support was no longer required for those businesses. I am talking about the same tired old clichés about state dependency at a time when it is the state itself that has had to close businesses and workplaces to deal with the virus. People who themselves have only ever known privilege were showing us that they did not even know how poverty was measured in this country, and in one case did not know the difference between the calculation of a median wage and an average wage. It was unedifying, it was ignorant and it was insulting to British families, so I ask the Secretary of State to start with an apology for that debate and that vote, because the tone of her statement today does not match the tenor of the debate.
Welcome as this statement is, the Government have, as at every stage of the pandemic, acted too late. Half term has been and gone, so let me thank the real hero of the hour: Marcus Rashford. I think the Secretary of State might have forgotten to mention him, but Marcus deserves immense credit for his campaign and for what he has achieved in such a short space of time. The depression that I and many others felt when we listened to the debate here in Parliament turned to joy when his activism unleashed the most incredible response from UK businesses over the half-term holiday. Even though they are facing extremely tough times themselves, they stepped up. That is because in a compassionate society it is a given that children should not go hungry, but why did it take that extraordinary outpouring of community support to make the Government see that?
Let us get to the heart of the issue. All of this is so important because the social security system in this country does not give people the support they need when they hit hard times. That is why this announcement matters so much. That is why furlough had to be invented. That is why the self-employed and contractors are in such a precarious position. In her announcement today, the Secretary of State once again referenced the £9.3 billion that the Government have put into social security since the beginning of the crisis. I ask the Government and all Conservative MPs to reflect on this question: if, after they have spent an additional £10 billion, there is still so much incredible hardship and unmet need out there, what does that say about the system that they have created over the 10 years preceding the crisis? I note, by the way, that there is still no sign of the Department for Work and Pensions’ review of food bank use, which was due out on 19 October, but we all know what it will say.
At the beginning of this crisis, the Opposition asked for five urgent measures to stop families falling into significant hardship: sharing the £20 increase in universal credit across legacy benefits; scrapping the savings threshold so that savers would not be punished; ending the punitive two-child limit; ending the benefit cap so that people could receive what the Government had already announced; and turning the universal credit advance into a grant, rather than a loan. Those five measures would have been a big step towards alleviating child poverty and giving people the support they need, and they are still required. Yet, unbelievably, instead of acting, the Government are still on course to cut universal credit by £20 in April next year, when we know the pandemic will still be affecting people’s livelihoods. That will be a cut for 6 million families. I ask the Secretary of State to spare Britain’s families that brinkmanship and spare us the inevitable U-turn after the event. On top of the announcement today, will the Government commit to not cutting universal credit in six months’ time? For once, will they make the right decision before it is too late?
Dr Coffey
I welcome the hon. Gentleman’s support for these measures, but I am somewhat disappointed by his approach. It is quite simply false to label this as anything other than a significant expansion of existing support measures and delivering on our manifesto commitments to support disadvantaged children and families. This summer alone, 50,000 children benefited from the holidays and activities fund and, as we have said, next Easter, summer and Christmas, that will be open to all eligible children who want to take part in it. Also, I think that an additional 2,500 breakfast clubs have been started during covid.
I would remind Labour Members that their proposal simply to extend vouchers for free school meals recipients over Christmas would have cost £40 million for the two-week period, and that only school-age children would have been eligible. By contrast, our new package of support, building on the £63 million earlier in the year for the local welfare assistance fund, is £170 million. It will last 12 weeks and support thousands more disadvantaged children and families. That is not to mention the commitment to extend the holiday activities and food programme, the Healthy Start vouchers and food redistribution charities. Recognising the Barnett consequentials, this represents more than half a billion pounds of support for children and families. That is happening in a much more targeted way, trusting our local councils, which can draw on the variety of information they have to ensure that we help the most disadvantaged and vulnerable people at this time.
It is that targeted approach that really sets this policy apart. We will work with councils up and down the country to ensure that every child is warm and well fed this winter.
Paul Maynard (Blackpool North and Cleveleys) (Con)
As someone who did not support the Government in the Lobby a fortnight ago, I none the less welcome this announcement by the Secretary of State. It will make a difference to literally tens of thousands of people in my constituency. I praise Ministers, who have been working on this package not just over the past fortnight but for many months, for their perseverance through the political maelstrom. Will the Secretary of State say a little more about how, when the project is delivered by local councils, we will ensure that the money is spent not just on meeting immediate need, but on improving the life chances of young people for the long run?
Dr Coffey
I thank my hon. Friend. We wanted to ensure that this was a comprehensive package, and we said in the debate a couple of weeks ago that we wanted to ensure there was targeted intervention. He is right that, as a Government, we want to make sure that every child can fulfil their potential. I hope he will recognise that the schemes we are announcing today, with the extended funding and extended coverage, are among the most important things we can do to make a difference to a young child’s future life.
Neil Gray (Airdrie and Shotts) (SNP) [V]
I thank the Secretary of State for advance sight of the statement. I am just sorry to say that as welcome as some of these measures are, they are just not enough. They will serve only to partially catch up with where Scotland has been for some time. When the Scottish Government introduced their Best Start Foods payment last year—the equivalent of the Healthy Start payment—they had already increased it to £4.25. The Scottish Government have also gone beyond their £70 million food fund commitment and made over £130 million available to tackle food insecurity caused by the pandemic.
On free school meals, I am delighted that the UK Government appear finally to be relenting to the incredible campaign run by Marcus Rashford. The decision today will no doubt be welcomed by the same Scottish Tories who failed to support it only two weeks ago. The UK Government are only starting to give free school meals in the holidays from next year, whereas the Scottish Government committed last month to making £10 million available to extend free school meals into the Christmas holidays and Easter. The need is now. That is why it is so welcome that the new Scottish child payment, described as game-changing by anti-poverty campaigners, opens for applications today, with payments starting early in the new year.
There has been nothing on the two-child cap, nothing on the five-week wait—those advances should be made into grants—and nothing on the temporary uplift to universal credit. In response to the significant campaign led by the Scottish National party, the Joseph Rowntree Foundation, Save the Children and others, which is now supported by the Secretary of State’s predecessors at the DWP and the leader of the Scottish Conservatives, the Treasury has been flirting with extending the much-needed increase to universal credit—and no wonder. Even with the temporary £20 a week extra, the Secretary of State knows that those who are out of work are £1,000 worse off today compared with 2011.
Will the Secretary of State put it on the record today that she expects the temporary uplift to universal credit to be made permanent and, so that there is no longer the unfairness of sick and disabled people on legacy benefits not getting the same, will she finally commit to extending the uplift to legacy benefits?
Dr Coffey
I am not sure whether the hon. Gentleman welcomed these measures or not. He will see that the Barnett consequentials will feed through to the Scottish Government. I do not think the Scottish Government provided support over half-term, but I am conscious that future support is part of their legacy already.
In terms of moving forward, I remind the hon. Gentleman of aspects such as the fact that advances are actual grants to people—they are just the phasing of universal credit payments over the year, and soon to be over two years if that is what claimants want. As a consequence, we need to make sure that we continue to manage, with our customers, to make sure that they are financially resilient. We will continue to try to support them in that endeavour.
In terms of recognition, as I say, I am sure that the Scottish Government will take full advantage of the money they receive as part of that £16 billion between the three devolved Administrations and make sure that they use it best and ensure that no child in Scotland goes without warmth and food this winter.
Dean Russell (Watford) (Con)
I completely understand the strength of feeling in the country in respect of supporting children and families at this really difficult time. Does my right hon. Friend agree that the measures announced rightly go far beyond any of the provisions that were recently called for on free school meals? Will she please assure me that this measure will provide the right support, targeted in the right way and in a sustainable way, long-term, as we laid out in our manifesto last year?
Dr Coffey
First, I congratulate my hon. Friend: he has been exemplary in volunteering in his in Watford constituency throughout the pandemic. I know that he will continue to serve his constituents well.
I believe that this approach is far more comprehensive in the number of children it will help, particularly by focusing on using local expertise. One thing that people may not be aware of is that councils have access to information on people who are on benefits, and of course councils in the upper tier will hold information on who is on free school meals if they wish to decide that that is the best way to target support. I want to make sure that every child who is vulnerable this winter is supported, and I believe that our councils are well placed to make sure that that happens, alongside the ongoing activity for a child’s future potential.
Stephen Timms (East Ham) (Lab)
I do hope that the Secretary of State will have the good grace to acknowledge and thank Marcus Rashford for his campaign, as I certainly do.
I welcome the additional support that the Secretary of State has announced today. Will she outline how the funding is going to be allocated among all the local authorities in England? What will the basis for that allocation be? I welcome her reference to
“funding available for every child in the UK”;
will she confirm that families with no recourse to public funds will be eligible for help from the funding she has announced?
Dr Coffey
I thank the Chairman of the Work and Pensions Committee for his comments. In answer to his first question, the approach is the same as that taken earlier in the year, using the index of multiple deprivation. A letter should go out to colleagues today setting out the amount of money that every council gets, but, candidly, the right hon. Gentleman can take the amount that was distributed earlier in the year, which was intended to spread over three months from the beginning of August, and divide it by 63 and multiply it by 170.
Yes, of course I congratulate Marcus Rashford. He has shown his passion for wanting to make sure that no child goes hungry. That is a passion that I share, and I think it is a passion that everybody in this House shares, which is why we are working on it right across Government, as we are today. We have been working with other Departments to get this package together—it has not just arrived by magic; it is part of an ongoing plan to support families to support children so that they can do better in life. That is why the package takes a holistic approach, looking at health and education. We will continue to make sure that we have a family strategy—which, again, I am working on with a variety of Departments —to really try to make sure that families, including every child, are well and truly supported.
Steve Double (St Austell and Newquay) (Con)
I thank the Secretary of State for this announcement, which is clearly an extension of our policy of making sure that help is targeted at those who need it most. Will she confirm that we have given the additional funding for this winter to councils because they are best placed to understand the needs of their communities and to get the support to the families that need it most? Does she share my view that this support should not just be used to support those who qualify for free school meals? Many families are not eligible for free school meals and it is important that they get the support that is available as well.
Dr Coffey
Indeed, my hon. Friend is right. Using councils is probably the best way because they have the variety of information that I referring to earlier, but we can also use social services and health visitors. This goes beyond just children at school, and we need to make sure that all the information is well considered, in the round, so that the children who need help this winter get it.
I am conscious that people have asked why this is going to a variety of councils in the upper tier. It is because those councils generally have a statutory duty towards children. However, the best councils I have seen are working together right across their counties to make sure they make full use of the levers of local government to help children, an aim we share in this House, along with our councillors up and down the country, regardless of what party they represent.
Sarah Owen (Luton North) (Lab)
Nearly 4,000 children in Luton North and 8,000 children across the whole of Luton did not know where their next meal was coming from last half-term. Yet again, our wonderful community stepped up when the Government stepped back. When the Prime Minister chose to ignore Marcus Rashford’s campaign, it revealed a moral and compassion deficit that runs rife throughout his Government. Does the Minister agree that she should ensure that no child faces holiday hunger again, not just for the winter months but beyond this pandemic, and that she should start by paying workers a real living wage and ending in-work poverty?
Dr Coffey
The universal credit system is designed to ensure that people are better off working than not working, and this Government introduced the national living wage, which has seen a huge uplift for a lot of people. In addition, by raising the personal tax allowance to more than £12,000 we have lifted at least 4 million people out of paying tax altogether. So people’s take-home pay has risen thanks to the actions of this Government, and we will continue to support families. However, under the In-Work Progression Commission, I want to go further, and Baroness Ruby McGregor-Smith is working on that because we want to make sure people can continue up the career ladder as well.
Steve Brine (Winchester) (Con)
I really welcome this package today, most of all because it is a comprehensive, coherent and funded plan. We are spending our constituents’ money, and this plan has been put together outside a political storm, which has to be the right way to proceed. Will the Secretary of State confirm that support with food costs will not just be confined to families with school-age children, but will extend to all eligible pre-school children? We have to make sure we look after pre-school meals as well as free school meals.
Dr Coffey
My hon. Friend is absolutely right on that, and I welcome his support for this package. We are taking that comprehensive, holistic approach, trusting our local councils to target the people who need that support. Commendable as people may have thought the motion discussed in the House a few weeks ago was, we wanted to make sure that every child at risk of going hungry this winter would be helped. This is also why we want to continue this approach with councils, whereby with these additions to their welfare funds they can really try to ensure that people have the money, if necessary, to heat their homes and prepare good nutritious meals.
Wendy Chamberlain (North East Fife) (LD)
I join other Opposition Members in welcoming the Government’s movement on the issue, and I am pleased that they finally agree that no child should go hungry in the UK, but the devolved Administrations had their priorities on this issue right from the outset. Just moments ago, we heard that this is a significant expansion in England but that the devolved Administrations are to make do with moneys already announced last week. So will the Secretary of State explain why the devolved Administrations are arguably being penalised for having not only their priorities right on this issue, but their sums right?
Dr Coffey
I am afraid that the hon. Lady is completely wrong on that. One thing the Chancellor set out last week was a recognition that, through the Barnett formula, every time we do certain different policies the devolved Administrations want to do additional things. We have a mature relationship with the devolved Administrations. They have been set a guaranteed amount of funding, and I assure her that there is still more room in terms of Barnett consequentials. The Chancellor was right to make the decision he did, and she should welcome it.
Christian Wakeford (Bury South) (Con)
Although I did not support the Government in the vote a few weeks ago, like all in this Chamber I welcome the announcement of the covid winter grant scheme, especially with the inclusion of pre-school children. However, there is much more we can be doing, such as implementing the School Breakfast Bill, which stands in the name of the hon. Member for South Shields (Mrs Lewell-Buck)—I look forward to working with my right hon. Friend on achieving that. Does she agree that putting on enriching activities through the holiday activities fund is a great way of both helping disadvantaged children in closing the attainment gap and ensuring they get a healthy meal?
Dr Coffey
My hon. Friend is absolutely right about the purpose of the holiday activities fund. I do not want to call it a summer school because it is not, and we certainly do not want to put children off from attending because they have the idea that that is what it is. It is this element of enriching activities that keeps children involved. When they are away from school for longer than a week, we start to see them dropping away potentially, so it is really important that we have that engaging element where they can have fun and enjoy themselves. Certainly, it is my understanding from my hon. Friends at the Department for Education that the programme will help, and it is helping, children improve their educational attainment, which is so important for their future lives.
Andrew Gwynne (Denton and Reddish) (Lab) [V]
I welcome the package of support for tackling child hunger over Christmas. As a Manchester City fan, let me pay tribute to that United hero, because without him, I do not believe that this Government would have done anything here, so thank you Marcus Rashford. Child poverty is serious. It is not just about free school meals; it is also about the proposed cut to universal credit in April and the inadequacy of the local housing allowance that is pushing too many children and families into poverty at this time. Rather than U-turning again next spring, which is probably inevitable, why will the Secretary of State not do the right thing now?
Dr Coffey
I am conscious that we did boost the local housing allowance to the 30th percentile, which cost more than £1 billion, and I am sure that that may have helped some of the hon. Gentleman’s constituents. One thing we must recognise—we are working across Government on this—is what we can do to try to help reduce the cost of living. An interesting paper by the University of Bristol talks about the poverty premium, half of which is energy related—about £250 out of the £490 it identified. That is why I am working with people such as the Under-Secretary of State for Education, my hon. Friend the Member for Chelmsford (Vicky Ford), the Minister for Business, Energy and Clean Growth, my right hon. Friend the Member for Spelthorne (Kwasi Kwarteng) and a wide range of people in this Government to tackle issues that face not only the poorest in society, but other households as well. We will continue to do that and I look forward to ongoing activity in and out of Government in order to ensure that we reach as many people as possible and make their lives better.
Damian Hinds (East Hampshire) (Con)
I particularly welcome this very large extension of the holiday activities programme. Will my right hon. Friend assure me that, in rolling it out, the Government will learn from some of the best deployments such as Connect4Summer in Hampshire, with a focus not only on a nutritious meal, on the daily mile, and on purposeful activity to address the holiday learning loss to which she has just alluded, but on things such as cooking from scratch workshops, first aid, and whole family sessions?
Dr Coffey
Indeed, my right hon. Friend, a former Secretary of State for Education—a notable one at that—is right to put his finger on this and say that it is a comprehensive approach. I am aware that some of the best courses have included the whole family, which ensures that we can help them build that sustainable and resilient future. They also include some basic elements as well as some really sophisticated ways to try to improve these enriching activities, which I am sure they will enjoy.
Mohammad Yasin (Bedford) (Lab) [V]
I have had many heartfelt letters from directors of small and medium-sized enterprises who have received no financial assistance from the Chancellor, despite running successful businesses. Many have no idea how they will make ends meet for their families this Christmas—the families that this Government have forgotten about. Universal credit is not the answer. When will the Government do the right thing and support these businesses through the crisis, so that they can be there to support the economic recovery?
Dr Coffey
The Chancellor has appeared before this House on several occasions, as have other Treasury Ministers, setting out how we are supporting self-employed people. I am very conscious that there is access to help, whether it is through business loans, or, for those people who do not have savings that are not business assets, universal credit, but one thing about this particular scheme is that it will be for local councils to identify and decide who is eligible for support. I am conscious that the hon. Gentleman wishes to see other elements, but this is a comprehensive package from which many of the people he refers to may well benefit.
Robert Halfon (Harlow) (Con) [V]
I strongly welcome the announcement, which shows a Government who are committed to social justice. I particularly welcome the holiday activities programme. Will my right hon. Friend give guidance to councils to ensure that access to the £170 million covid winter grant is as unbureaucratic as possible for families? Will she also confirm when Healthy Start vouchers will be digitised? We know that national uptake in October was just over 50%, partly due to the paper application form and voucher system.
Dr Coffey
I welcome my right hon. Friend’s support for the scheme, particularly the holiday activities fund. On guidance to councils about the winter grant, I am sure that they will work with a number of public sector organisations in their areas, and get valuable knowledge from schools. I am conscious that take-up of the Healthy Start voucher is not 100%, but I will ask the Health Secretary to write to him about that particular issue.
Holly Lynch (Halifax) (Lab)
Like everybody in the Chamber today, I very much welcome this announcement. But will the Secretary of State join me in paying tribute to Calderdale Council, the Community Foundation for Calderdale, the Piece Hall and so many others in Halifax that came together to launch the Never Hungry Again campaign, which was made possible by donations from the general public and plugged the gap of free school meals over the recent half-term? Following her announcement today, will the Secretary of State commit to reimbursing Calderdale Council for the resources it had to invest to ensure that no child went hungry over the recent half-term?
Dr Coffey
Throughout this pandemic, we have seen communities and councils come together to support those in more difficulty than themselves. It has been a tremendous response by the people of this country. I think it is fair to say that the £63 million of funding allocated to councils earlier in the year was designed to extend from the beginning of August through to October. Of course, councils used it in a variety of ways. My own council—Suffolk County Council—was allocated £700,000 and added another £800,000 itself, and it has used £600,000 of the funds in total. It wanted to ensure that it was using the best knowledge to reach the most vulnerable people, and I am sure that Calderdale Council can be congratulated on ensuring that it has done that too.
Mrs Heather Wheeler (South Derbyshire) (Con) [V]
I thank my right hon. Friend for her statement. Does she agree that putting on enriching activities through their holiday activities fund, especially in South Derbyshire, is a great way of helping disadvantaged children and ensuring that they get a free and healthy meal, about which many of my constituents are so concerned?
Dr Coffey
I am sure that the holiday activities fund will be a huge success in my hon. Friend’s constituency, as it will have her full support. I am conscious that having a nutritious meal is part of that, but I am also sure that the enriching elements that children will enjoy over the longer holidays will be a welcome relief both for parents and their children, and will keep them connected to the ongoing progress that they can make in their educational attainment.
Chris Stephens (Glasgow South West) (SNP) ][V]
The Secretary of State said earlier that advances are grants. That, of course, is not the view shared by the cross-party Work and Pensions Committee, which describes advances as loans that should be replaced by grants. Will the Secretary of State tell us when she will be in a position to respond to that report, and whether she is considering making the £20 uplift to universal credit permanent, as Feeding Britain estimates this would prevent 300,000 children from going into poverty?
Dr Coffey
The universal credit that is given out every month to benefit recipients is a grant. The advances are simply an early payment of that grant, and then the total amount is spread over the year. I have been asked about the report a few times; as I have said to the Select Committee previously, we have ongoing discussions with the Treasury about aspects of welfare support and those discussions are continuing.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op) [V]
I know the Secretary of State to be a very pleasant colleague and woman, but I have to tell her that I have never seen such poverty in our land in all my 40 years in Parliament. What she has announced today is too little, too late. She talks about working across Government—I remember how they got rid of Sure Start and children’s centres. Early years provision, which so many working families depend on, is in deep financial trouble. When is she going to do something across Government to tackle the family poverty that stalks this land right now?
Dr Coffey
The hon. Gentleman is a long-standing Member of the House, and I am conscious that he will be seeing things exacerbated in his constituency by the issues that we face in tackling coronavirus. It is a great sadness that so many people have lost their work or are on reduced hours, and that is why we put in the extra injection of more than £9 billion of welfare support, to help people through this time.
In terms of helping young children, the Under-Secretary of State for Education, my hon. Friend the Member for Chelmsford (Vicky Ford), has just reminded me that we have the most generous support for pre-school children ever undertaken by a Government. We continue to want to ensure that every child reaches their potential. While I am conscious of how proud the Labour party was of Sure Start, the key difference is that we wanted to ensure that the interventions we undertook were exceptionally targeted, so that every child was able to fulfil their potential. I am confident that the measures in place will continue to accelerate that, because that is the right thing to do.
Margaret Greenwood (Wirral West) (Lab) [V]
People who have already had a mortgage holiday for six months are not eligible for another one under the Government’s scheme, so many people will be worrying about how they will keep a roof over their heads this winter. Furthermore, the scheme does not cover mortgage interest, so that will still accrue during any payment holiday. Back in April 2018, the Government scrapped the support for mortgage interest payment and replaced it with a loan, despite warnings from Labour that that would put low-income households at risk. What consideration has the Secretary of State given to reinstating SMI, and will she abolish the nine-month waiting period, which renders the scheme unfit for purpose?
Dr Coffey
One of the things the hon. Lady fails to mention is that if those who are new to benefits have had full contributions over the last nine months, there is no cap on the benefits that they may receive. The support for mortgage interest is continuing. She is right to say that the Government changed that from a grant to a loan. That was the right thing to do, because people have an asset, and we are helping them to keep it. I am conscious of the extensive work undertaken by the Chancellor on ensuring that mortgages could be rearranged or that payments could be made. I am also conscious of the excellent work done by my right hon. Friend the Secretary of State for Housing, Communities and Local Government on ensuring that no evictions would happen as a result of the issues we are facing, except, more recently, for people who are nuisance neighbours. We have done a lot to ensure that people can stay in their homes and keep a roof over their heads.
Mrs Maria Miller (Basingstoke) (Con)
I warmly welcome this package of measures to support families through what will undoubtedly be a very hard winter. My right hon. Friend will be aware that, in constituencies such as mine, more than half of the people on low incomes are in single-person households, and they face a very different set of issues this winter. Can she confirm that funding for programmes that help people through homelessness, support rough sleepers and provide support on issues around mental health will not be diminished by the package of measures announced today?
Dr Coffey
I know Basingstoke well, because that is where I worked for many years, and I am conscious of the wide variety of communities there that are supportive of one another. I hope my right hon. Friend will be aware of the £700 million package announced by my right hon. Friend the Secretary of State for Housing, Communities and Local Government last week, to ensure that rough sleeping really does become history.
Neil Coyle (Bermondsey and Old Southwark) (Lab)
Today’s measures are reactive; they have been forced out of this Government by the covid pandemic and the epic campaign of Marcus Rashford. The truth is that last year, the Trussell Trust had to provide 720,000 emergency packages of support to children in this country. That is more than 700,000 higher than when Labour left office in 2010. All we are asking today is for the Secretary of State to be proactive—scrap the benefit cap, scrap the universal credit delay and scrap the “no recourse to public funds” restrictions, which will all leave children hungry across this country if the Government continue to fail to listen.
Dr Coffey
This is a massive expansion of the holiday activities fund that we have been running for the past three years, and I am sure that the hon. Gentleman will welcome that. In terms of building on what we distributed earlier in the year—£63 million, as well as the covid summer scheme—£170 million will be there to make sure that every child has no need to go hungry in this country. I am sure that he will welcome that too. We will continue to work on helping people to try to get ready to get back into work as and when the economy recovers. We are doing that through our plan for jobs, which I am sure he will welcome too.
Tom Hunt (Ipswich) (Con)
Over the summer, the Under-Secretary of State for Education, my hon. Friend the Member for Chelmsford (Vicky Ford), visited me in Ipswich because we were one of the pilots where the holiday food and activities fund was in operation. I can tell everyone in this House that this has been a long time coming—it has been worked on by Government for a very long period and was very much a plan that they hoped to extend across the country. This is far more ambitious than what was proposed in terms of simply extending the school meal vouchers into the holidays; this is an unprecedented intervention to help those who need the help the most, and I fundamentally welcome it. But does my right hon. Friend agree with me that we all have a big job to do, both in this place but also as Government and as councils, to make sure that before December everyone is aware of this fund and the profile is raised so that we can ensure that those who are vulnerable and need the help the most get access to it in a timely way?
Dr Coffey
I completely agree with my hon. Friend and neighbour on the excellent work that was done through the holiday activities fund in the summer in Ipswich. He will be conscious of the diverse community that he represents, but also the excellent work undertaken by Suffolk County Council, and indeed all public sector leaders, in trying to make sure that they have distributed the funds that were allocated to them earlier in the year and have added money on top. I am convinced that the £2 million, I think it is, that will be going to Suffolk will really go a long way towards making sure that children in Ipswich, in my constituency, in Lowestoft and right across the county will be sure of getting the help that they need.
David Johnston (Wantage) (Con)
I very much welcome this package of support today, which will rightly tackle more aspects of poverty than efforts with vouchers could have done. Regarding the additional support for FareShare, we have in my constituency one of its regional partners, SOFEA, which I volunteered for regularly in lockdown, seeing first-hand what a great job it does. Does my right hon. Friend agree that charities such as this are often better placed to understand the needs of their communities than central Government are?
Dr Coffey
I congratulate my hon. Friend. I know how dedicated he was, before entering this House, to social mobility and tackling poverty, and he continues to be so. I fully agree that a lot of local charities have a particular insight into their communities and are often helped by more national organisations such as FareShare. However, they are not the only ones out there. There are plenty of others trying to make sure that we help people in different ways: not only help to get food on the table but help through some of the wraparound care that is so important for families at this time.
Barbara Keeley (Worsley and Eccles South) (Lab) [V]
I want to raise the issue of carers and financial disadvantage. During this crisis, millions of unpaid carers have taken on more caring duties or started caring for a family member for the first time, and many of them are struggling to make ends meet. Although universal credit was uplifted during the crisis to provide people with more support, there was no change to the level of carers allowance, despite it being the lowest benefit of its kind. Will the Secretary of State recognise the monumental impact that the pandemic has had on carers’ lives and introduce an equivalent uplift payment to that for universal credit for carers in receipt of carers allowance?
Dr Coffey
I heard part of the hon. Lady’s question and I think the whole House can agree how much we value carers not only as a Government but often through experiences in our own individual lives. I am conscious that carers allowance is not a salary—it is there as a benefit to help people who undertake that duty. I continue to make sure that we try to offer as much help as we can, as a Government, not only to social services but through how we can help people to undertake these caring responsibilities in as flexible a way as possible.
Andy Carter (Warrington South) (Con)
Can I welcome the statement today from the Secretary of State? It is very much an extension to our policy, and it is adapting to the extraordinary circumstances we find ourselves in in this country. Can she confirm that the £170 million scheme builds on the £63 million already announced earlier this year, and as with previous funding allocations, it is local councils that get that cash—in my constituency, it is Warrington Borough Council—because they are best placed to be able to deliver the support that local disadvantaged families need in this time of extraordinary circumstance?
Dr Coffey
My hon. Friend is absolutely right. The people in Warrington will benefit significantly from this addition to what is—in effect, through the covid winter grant—an extension of the local welfare fund, which we had already given money to earlier in the year, as he identifies. I think it is important that we continue to use the strengths of local councils in order to make sure that the help goes to those who need it the most and is really well targeted. I am sure that they will draw on every capability and insight in order to make sure that no child in Warrington will go cold or hungry this winter.
Mary Kelly Foy (City of Durham) (Lab)
Last month, Conservative Members took to social media to claim that free school meal vouchers were being spent on prostitution and drugs, as well as to criticise selfless business owners who stepped in to provide the support that the Government refused to. Will the Secretary of State condemn these comments by MPs as not only false, but as yet more demonisation of those in poverty by the Conservative Government?
Dr Coffey
This Government continue to strive to help people who are vulnerable and disadvantaged, and we will continue to do that. I welcome any support given in order to help local communities. I am conscious that we need to continue to try to make sure we reach people of all ages; in particular, this grant is focused on children. There will be flexibility in supporting local organisations to do the right thing, but I also continue to welcome other organisations, such as businesses in the hon. Member’s constituency, that also reach out to help.
Jonathan Gullis (Stoke-on-Trent North) (Con)
Obviously, this is a very welcome package, and I thank the Secretary of State for giving this much-needed money—over £1 million for Stoke-on-Trent City Council and over £2 million for Staffordshire County Council. The Hubb Foundation in Stoke-on-Trent, in the mother town of Burslem, is an amazing holiday club, run by Carol Shanahan. I really implore the Minister and ask the Minister to meet me and Ms Shanahan to discuss how its holiday programme is one of those exemplary holiday programmes not just locally but nationally, and to ensure that it gets funding for the Christmas and Easter period coming up?
Dr Coffey
My hon. Friend, with his vast educational experience, will have been a true witness to the benefits that activities like the holiday activity fund can really bring to the future potential of children. I am very happy to say that my hon. Friend the Minister for children will be leading on this programme, with support from the welfare delivery Minister—the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Colchester (Will Quince)—and I am sure that they will both be delighted to meet him and the lady to whom he refers, because we want to keep learning from success to make sure that every child who is eligible for that support will get equally excellent educational and enriching activities over the coming holidays.
Naz Shah (Bradford West) (Lab)
I came into politics because I had this feeling that politics was broken and today’s example of the Secretary of State coming in here and using the words of social justice when announcing this package is just absolutely shocking. But I do welcome—I genuinely welcome—anything that helps my constituents, when I have in my constituency the fastest growing rate of child poverty in the whole of Yorkshire and Humber. The country’s compassion shone through. It filled the gaps where the Government failed, and I just want to say thank you to the council, Cafe West in Lower Grange, the churches, the Bradford Foundation Trust and Bradford Central food bank, which really stepped up. But what an insult to all these businesses came from the hon. Member for North Devon (Selaine Saxby), who suggested that she was delighted that businesses had bounced back from the pandemic to offer this support and should no longer receive Government help. Does the Minister agree with me that that was a shameful comment?
Dr Coffey
To be honest, I do not really know what the hon. Lady is talking about and I reject her assertion—[Interruption.] I reject her assertion and the comments that she made. I think she should consider them carefully. Hon. Members right across this House want to do the right thing by children. We have been particularly affected as a country and as a nation by the coronavirus pandemic. She should not—[Interruption.] She should not underestimate what has happened over the last 10 years. This Government are in a place to actually extend the financial support that we have offered to families, businesses and other organisations—to many charities—across the country. Frankly, it may have happened 10 years ago, but when Labour left government, it left nothing; there was no money left. It has taken 10 years of hard work, the ongoing support to this country and the passion of this country in order to recover from the horrific economic deficit. It is through that that we continue to be able to borrow to make sure the issues today can be addressed and we continue to bounce back. Things such as the furlough scheme will have helped the hon. Lady’s constituents get through this difficult time, and I am sad that she seems to have just dismissed it entirely.
Miriam Cates (Penistone and Stocksbridge) (Con)
I thank my right hon. Friend for her statement. I am delighted that, in my constituency, Barnsley Council will be receiving more than £900,000 and Sheffield will be receiving more than £2 million from the covid winter support grant, which will go to support our most vulnerable families this winter.
There has been a huge amount of coverage in the past few weeks about free school meals, but of course this has never been a debate about school meals, which by definition are provided in school in term time and have never been intended to support families in crisis. So I welcome this comprehensive approach to supporting the families who have been most affected by this pandemic. This year more than any other year, families’ circumstances have changed so quickly. So can my right hon. Friend confirm that local authorities will be able to use this to support all families, not just those who have previously registered for support?
Dr Coffey
My hon. Friend is absolutely right to welcome the funding, which will support her constituents. Working with local councils, we want to ensure that money reaches the people who really need it, and there will not be pre-qualification through other ways. Councils are well placed with sources of information to make sure they help children not just at school age but before that. They will have access to benefits data. They have access to other data from social services and health visitors —the list goes on—so they can really target their support. I am sure they will also be helped by many local charities and organisations, such as those in my hon. Friend’s constituency.
Beth Winter (Cynon Valley) (Lab) [V]
Research by the Joseph Rowntree Foundation has found significant increases in poverty rates as a result of the covid pandemic. Local and devolved Governments in every country of the UK have now democratically called for pilots of universal basic income. There is a clear will across political parties and among the public for such pilots to go ahead. Will the Secretary of State agree to meet me and the other co-chairs of the cross-party group on UBI to discuss what support her Department can provide for that important initiative?
Dr Coffey
I know that the hon. Lady is interested in universal basic income. She once asked me a question in this House that took more than a minute. The answer was no then and it is no now to UBI. I am conscious that she is being tenacious on this matter, but she will not make UBI happen under this Government.
Jack Brereton (Stoke-on-Trent South) (Con)
I join my hon. Friends the Members for Stoke-on-Trent North (Jonathan Gullis) and for Stoke-on-Trent Central (Jo Gideon) in fully supporting this announcement. Unemployment is above the UK average in Stoke-on-Trent, so schemes to help low-income families and get people into work are vital. What steps is my right hon. Friend’s Department taking to support those who have found themselves out of work to find new employment opportunities?
Dr Coffey
My hon. Friend is right to point out that, while we continue to support people through the welfare system, we know that the best way ultimately for people to get out of poverty is to work. That is why, through our plan for jobs, we have been extending the number of training courses that people can do. In particular, a new scheme called JETS—job entry targeted support—tries to get people ready to go back into work. The jobs finding support scheme is particularly tailored to help people who had been in work for a long time; to try to find work is a new experience for them. There are also swaps: in some sectors, the future does not look quite so bright for the next few years, and we want to encourage people to consider swapping careers, even if it is just in the short term, to ensure they can try to get back into work. That is a successful programme for which there is huge demand. We are seeing huge delivery of these programmes.
Yvonne Fovargue (Makerfield) (Lab) [V]
I welcome the expansion of grants, but can I urge the Secretary of State to scrap the five-week delay in claiming universal credit? An advance that has to be repaid over whatever period is a loan. There is increasing evidence from debt charities that that is pushing vulnerable families further into debt.
Dr Coffey
If somebody comes to make a universal credit claim, they can get money pretty quickly—within about three or four days. Yes, that is an advance but there is an earlier payment of the sum that would generally be available over the year. Instead of getting 12 payments, a recipient will get 13. It is important that if people need help, they get it, but then the payment will be spread over the rest of the year.
Kevin Hollinrake (Thirsk and Malton) (Con)
As co-chair of the all-party group on poverty, may I welcome my right hon. Friend’s statement? Despite protestations from the Opposition, I do not remember any similar package of support being available in 2008-09, when millions of people faced similar hardship. It is important to take a strategic approach, so will my right hon. Friend outline how this strategy will dovetail with the national food strategy, which was commissioned by this Government in 2019 and has made similar recommendations?
Dr Coffey
My hon. Friend is right to point out that the Government continue to try to support people through this challenging time. They have put their money where their mouth is to get that direct support to families, as well as to businesses and communities more generally. On the national food strategy, Henry Dimbleby has produced his initial review, and once we get phase 2 of his work and suggestions, the Government will develop a food strategy. We are united in ensuring, particularly through Healthy Start vouchers, that the food that young children and expectant mothers have is nutritious, because that is important for the development of our young children.
Dr Philippa Whitford (Central Ayrshire) (SNP) [V]
Last year, the UN special rapporteur on poverty highlighted that disabled people have been among the hardest hit by 10 years of this Government’s austerity agenda. They are particularly reliant on legacy benefits which, unlike universal credit, have not been increased by £20 a week during the covid crisis. Will the Secretary of State commit to a permanent increase in universal credit, and support disabled people by extending the uplift to all legacy benefits?
Dr Coffey
People can move to universal credit, apart from that small cohort of people who currently receive the severe disability premium, and they will be able to make that move from January. It is important that people check to see whether they will be better off, but we think that the vast majority of recipients will be better off on universal credit than they are on legacy benefits, and we will do what we can to help them in that journey.
Caroline Ansell (Eastbourne) (Con)
I sincerely thank my right hon. Friend and the Ministers who have worked intensively during this period to bring these measures to the House today. They are incredibly welcome and will make a real difference to children in Eastbourne and Willingdon. I recognise that they go further, wider and deeper than the motion I supported two weeks ago. I particularly welcome the extension of the holiday and food activities programme, not least because we have seen schools close this year, and the learning gap has widened. These measures will help with that and be impactful. The programme is new to Eastbourne. I have seen the success of pilot schemes in other areas, and it is something I hugely welcome. Will my right hon. Friend assure me that good practice in other areas will be shared with county councils that do not have experience of delivering these programmes, to ensure that every child benefits to the maximum?
Dr Coffey
I thank my hon. Friend for her remarks, and she is right to recognise that this support package is much more comprehensive in reaching disadvantaged children. I particularly welcome her support for the national roll-out of the holiday activities programme. Not only will there be guidance, but I genuinely hope that we can do something innovative regarding how we share best practice between the most successful schemes. We must encourage charities, in a covid-secure way, to find out what is happening in different parts of the country, so that they will be well prepared when these programmes start at Easter.
Christine Jardine (Edinburgh West) (LD)
While I welcome this latest U-turn from the Government on supporting children, I ask them to consider the fact that there are still millions of people in this country, like the constituent I spoke to on Wednesday who was at her wits’ end, who have had no help, no support, no finance from the Government at all since March. Will the Government reconsider? Will they consider universal basic income? Will they extend the help we have at the moment to the excluded?
Siobhan Baillie (Stroud) (Con)
A long-term and local approach was always going to be the best thing to help families. I feel quite emotional about this, because I was told that I was starving children and that I was killing children—I had the worst abuse ever. I abstained because I wanted to help the Government to look at that long-term approach. If Opposition Members really thought that children would be starving over the half-term holidays, they would not have brought that just before the half-term holidays. The local approach is working and I ask the Secretary of State to give praise to charities such as The Long Table, the Freezers of Love initiative and Paganhill community groups, and say to them that the money and the funding will be there, because they know where the families are who they can help.
Dr Coffey
It is nice to see my hon. Friend back in the House after her maternity leave. She speaks with appropriate compassion and she recognises some of the local organisations in her area. I encourage her to work with them and her council to help to ensure that the £170 million funding can be effectively distributed, so that the most disadvantaged children and families are truly helped. We want to make sure that that activity continues to support similar children through the holiday activity fund.
Madam Deputy Speaker (Dame Rosie Winterton)
In order to allow the safe exit of hon. Members participating in this item of business and the safe arrival of those participating in the next, I am suspending the House for a few minutes.
Minimum Income Floor
Thérèse Coffey Excerpts(4 years ago)
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The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
After careful consideration of the ongoing public health situation and the national working environment, the current easement of the suspension of the minimum income floor in universal credit that was due to expire on 12 November 2020 will be extended to the end of April 2021.
Regulations will be laid and made prior to 12 November 2020.
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Oral Answers to Questions
Thérèse Coffey Excerpts(4 years, 1 month ago)
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The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
I am grateful to the hon. Gentleman for his question, because he gives me the opportunity to highlight again what we are doing to help people in the sectors worst affected by the covid-19 outbreak. I have worked with my colleagues across government in forming and delivering our £30 billion plan for jobs to increase employment support, protect jobs and create new opportunities. He will be aware of the kickstart scheme, which particularly focuses on young people, but we will continue to help people of all ages to get back into work.
Chris Elmore
May I raise the specific issue of the support that is available to single parents when their child has to self-isolate? They are not able to claim statutory sick pay if their child is having to self-isolate at school age. In addition, if they were to apply for universal credit, they would have to restart the process each and every time. I have constituents who have had to self-isolate on multiple occasions because their school-age children have been told they have to stay at home and cannot stay at home on their own. Can the Secretary of State either tell me now, or come back to me on it in writing, what specific support can be directed towards constituents who need that additional support as single parents?
Dr Coffey
I will certainly ask the Minister for Disabled People, Health and Work to look into that detailed issue on SSP. If a person is required to self-isolate as a consequence of somebody in their household having symptoms, then, in my view, they should be eligible for SSP. But given that it is such a legal and technical issue, I will ask my hon. Friend to write to the hon. Gentleman specifically.
Neil Gray (Airdrie and Shotts) (SNP) [V]
Ending the furlough scheme early is going to put livelihoods at risk, so will the Secretary of State provide an update on her discussions with the Treasury about extending the covid-related increase to universal credit and ensuring that it is expanded to legacy benefits? While she is in those discussions, will she raise extending the furlough scheme and ask that the covid self-isolation grants be tax-exempt, as called for by the Social Security Secretary in Scotland, Shirley-Ann Somerville?
Dr Coffey
There are multiple questions there. My right hon. Friend the Chancellor has already responded by introducing the new job support scheme, which he updated for particular sectors, thinking of tier 3 in England, to extend even further the furlough scheme. It is clear that this Government are doing what is needed. In terms of the other things that the hon. Gentleman mentions, he will be aware that I continue to have regular discussions with my Treasury colleagues on the best way that we can help to support people during this pandemic.
Alison McGovern (Wirral South) (Lab)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
The 2020-21 universal credit increase was included in a package of welfare measures worth around £9.3 billion this year to help people with the financial consequences of what has happened with the covid-19 pandemic. I continue to work with the Treasury on the best ways to support those receiving benefits. I share the view of my right hon. Friend the Chancellor that we must act in a way that recognises social justice, and that is the motivation of those on the Government Benches.
Rosie Cooper [V]
Does the Secretary of State still intend to end the suspension of the minimum income floor for self-employed universal credit claimants, which is due to expire on 13 November?
Dr Coffey
That policy is still under review. Clearly, this is a matter of discussion, because the regulations do come to an end. It is important to recognise that we have different measures happening around different parts of the country. We do need to try to take a national approach to the overall policy, but as ever, we trust and empower our work coaches to make the best decisions for the claimants they are helping, usually to help them get back into work.
Mr Speaker
I call the Chair of the Select Committee on Work and Pensions, Stephen Timms.
Stephen Timms
The Select Committee’s report published today calls for new starter payments to claimants of universal credit to help tide them over the very difficult five-week wait for their first regular benefit payment, and for the £20 a week increase, which the Secretary of State has referred to, to be made permanent. How can it possibly be justified for people claiming jobseeker’s allowance and employment and support allowance to receive £20 a week less than people in identical circumstances who happen to be claiming universal credit?
Dr Coffey
On what happened with legacy benefits and universal credit, I think the rationale was set out clearly at the time; in particular, it was also about having a rate that was quite similar to statutory sick pay. We will look carefully at the report that the right hon. Gentleman and his Committee have issued to us today, but I remind him that of course people do not need to wait five weeks for a universal credit payment; they can get a payment within a matter of days, and that payment is then spread over the entire year.
Owen Thompson (Midlothian) (SNP)
Duncan Baker (North Norfolk) (Con)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
The Government’s new job support scheme being launched next month to protect viable jobs and businesses that are facing lower demand is yet another part of how my Department and the Government are standing ready to try to help people stay in work and to prepare to get back into work. [Interruption.] We will continue to do whatever it takes to make sure we are reaching people of all ages. In particular, I want to make sure that people who may newly be looking for support from the welfare state use the Government-funded help to claim service, administered by Citizens Advice. [Interruption.]
Mr Speaker
Order—apologies, Minister. Let me just say to the hon. Member for Stockton North (Alex Cunningham) that there was not time to call him. There was another Member before him on the call list, so there was not a chance that I could have called him before moving on; I do apologise. If he wants to hang around, I will try to get him into topical questions if he wishes to speak.
Duncan Baker
I was pleased to see my right hon. Friend’s announcement that almost 1 million pensioners in receipt of pension credit will be receiving £140 off their energy bills through the warm home discount scheme. My constituency has a very elderly demographic, so that is a great lifeline for so many. Will she confirm that, alongside it, the Government will continue to make winter fuel payments to support our pensioners this winter?
Dr Coffey
My hon. Friend is absolutely correct, and I praise him for raising this issue on behalf of the many people he represents. This Government are committed to tackling fuel poverty, particularly among pensioners, and will continue to deliver winter fuel payments this year. I was pleased by the work done by my Department to make sure that those on pension credit, including in your constituency, Mr Speaker, received the £140 from the warm home discount scheme, without lifting a finger.
Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)
As the Government place millions of people across the country under new covid restrictions, they will be asking many people to undergo significant cuts to their income. Last week, the Prime Minister said that due to the job support scheme and universal credit
“nobody gets less than 93% of their current income.”—[Official Report, 14 October 2020; Vol. 682, c. 368.]
Unfortunately, that is just completely wrong. The reality is that a person employed by a business that the Government are ordering to close could still lose a third of their income, and for an unspecified length of time. Their rent, mortgages and food bills will not be any lower, so how does the Secretary of State expect those people to get by?
Dr Coffey
The Government have taken unprecedented action in the design of their new schemes, recognising that some businesses right around the country are still experiencing a loss in demand. As a consequence, we have developed two different schemes, one of which is “a third, a third, a third” in terms of helping people with their cost of living. Where we believe, in conjunction with local leadership, that it is the right thing for certain sectors to be closed in areas, the two-thirds support of wages is important. Of course if people do come under a certain threshold, they may well be eligible for UC, which would help top up their ongoing income during these difficult times.
Jonathan Reynolds
Secretary of State, this is important, because it is the barrier to additional restrictions being introduced. As the Government know, people who are eligible for the job support scheme and may be losing only a third of their income are, comparatively, the lucky ones, as people in receipt of UC or jobseeker’s allowance will be left on just a fraction of their current income. With that in mind, I have a straightforward question for her: it is clear that we are not going to be out of this crisis by April next year, so will the Government do the right thing and scrap their plans to cut UC to an even lower amount next April?
Dr Coffey
What is different from the regime we had earlier in the year is that then the strong message was very much for people to stay at home and retail was closed, along with a number of different sectors. That is not the case anymore: we have now had to intervene in a much more limited number of sectors, often in conjunction with the local leadership. As a consequence, we will continue to review the best ways to support people through the welfare system, as well as through the plan for jobs and the measures that the Chancellor has introduced.
Tim Loughton (East Worthing and Shoreham) (Con)
Dr Coffey
One element of the kickstart scheme, a £2 billion investment in the future of our young people, is designed to help people to get on the first rung of the ladder with a proper job. It is a way for those people who have recently left school or university and are at risk of long-term unemployment to get experience and financing, which does not just have to be through private organisations and could be through local government or charitable or other sectors. It is a specific way to ensure that those people get not only a job but the extra training and wraparound support that they need to help them further on in their lives.
Neil Gray (Airdrie and Shotts) (SNP) [V]
For some time, the SNP has led the campaign to end the universal credit five-week wait. We think that is best done by the introduction of grants, so we welcome today’s Work and Pensions Committee report. We also agree with the idea of renaming advances as “new claim loans” to make clearer what they actually are. Will the Secretary of State look favourably on the report’s findings and accept its recommendations?
Dr Coffey
I will look carefully at the report. Select Committee members will know that I have spoken to them on previous occasions, as have other Ministers, to explain that advances are a way to spread the payment of universal credit over a year—in fact, in future it will be over two years, if that is how long people want to spread that initial support—and it is not our intention in any way to introduce a grant at the beginning. The grant is there in the benefits—that is exactly what they are there to do—so I do not see how we will be responding positively to the Committee’s report in that regard.
Owen Thompson (Midlothian) (SNP)
Kerry McCarthy (Bristol East) (Lab)
Laura Farris (Newbury) (Con)
Dr Coffey
My hon. Friend is right to point out that the kickstart placements are six-month-long jobs, but the skills that people will learn and the experience they will gain will put them in good stead to secure future employment. We are investing in our young people in recognition of this difficult time, but of course if they do not secure a permanent job at the end of that time—although the placements may be a gateway to apprenticeships and similar—we will continue to support them until they find a job.
Andrew Jones (Harrogate and Knaresborough) (Con)
Sir Robert Neill (Bromley and Chislehurst) (Con)
Dr Coffey
My understanding is that the policy relates to people who have had child maintenance arrangements for a very long time. There comes a point when there is an element of understanding the different debts. My hon. Friend will be aware that, in a way, this is a very odd arrangement, with the state effectively becoming the arbiter between two parents. The only people who lose are the children. That is why I encourage everybody who has a responsibility towards their children—currently 111,000 children are owed £187 million by parents who refuse to pay up—to get on and do the right thing by them. We should not end up having to rely on the state to arbitrate between two parents.[Official Report, 16 November 2020, Vol. 684, c. 2MC.]
Matt Western (Warwick and Leamington) (Lab)
Dr Coffey
The £500 self-isolation payment administered by local councils was devised to achieve compliance with public health guidance. That is why the Department of Health and Social Care is leading on the matter. I am conscious that there may be local arrangements that need to be addressed. Often, the best way to tackle those is through the Ministry of Housing, Communities and Local Government, which has local funds that have been topped up by this Government to help with local welfare issues.
Selaine Saxby (North Devon) (Con) [V]
Dr Coffey
My hon. Friend is right to praise hard-working DWP staff at her local Jobcentre Plus and across the network. The team in Barnstaple have worked with the National Careers Service to help with interview technique and build transferable skills among people who become unemployed, and great work is already under way at the North Devon youth support hub in Bideford and Barnstaple. I look forward to visiting the south-west. As she knows, the DWP jobcentre is a covid-secure environment and I look forward to joining her there in due course.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD) [V]
Jeff Smith (Manchester, Withington) (Lab)
In-Work Progression Commission: Call for Evidence
Thérèse Coffey Excerpts(4 years, 1 month ago)
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The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
I established the in-work progression commission, led by Baroness McGregor-Smith, in March this year as part of this Government’s commitment to levelling up opportunities for those who want to progress from lower paid jobs into higher paid work.
In response to covid-19, our focus is on getting people back into work and our £30 billion plan for jobs will support hundreds of thousands of people of all ages do this. Now however is also the time to lay the groundwork for the future when people will be able and striving to progress.
The commission wants to hear from all sectors, including businesses, charities, think-tanks, advocacy groups and other community focused organisations as well as from individuals who have or have not progressed out of low pay. We have launched a call for evidence, details of which can be found here: https://www.gov.uk/government/ consultations/call-for-evidence-and-good-practice-on-in-work-progression/call-for-evidence-and-good-practice-on-in-work-progression
We want written contributions that highlight the challenges to progression in low-paid sectors and how best to support talented people to rise through the ranks. A copy of the call for evidence document will be placed in the House Library and responses can be sent to: progression.commission@dwp.gov.uk.
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Warm Home Discount Scheme: Pensioner Support
Thérèse Coffey Excerpts(4 years, 1 month ago)
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The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
The warm home discount scheme (WHDS) provides up to £350m per year to tackle fuel poverty and the pressure placed by energy prices on low income households.
Around 1.2 million pensioner households who receive the guarantee element of pension credit are automatically eligible for the WHDS and will receive a £140 discount off their energy bill. Thanks to DWP IT we have data matched nearly one million eligible claimants who will receive this discount automatically.
A further 220,000 pensioners will receive a letter encouraging them to check their eligibility and apply. Pensioners can call to check their eligibility on 0800 731 0214.
Where eligible, the deduction will be taken automatically from energy bills before March 2021, with most pensioners receiving their discounts between now and January.
Up to a further 1.2 million low income, working age households can also benefit from a £140 discount from their supplier. These customers must meet an individual energy supplier’s criteria for the scheme to qualify, which will include being in receipt of certain means-tested benefits.
The WHDS also provides a range of initiatives to benefit fuel poor and vulnerable households, including debt assistance, benefit entitlement checks and energy advice to domestic customers in or at risk of fuel poverty.
More information on the warm home discount scheme is available at gov.uk/the-warm-home-discount-scheme.
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