State Pension Age: Universal Credit
Thérèse Coffey Excerpts(4 years, 8 months ago)
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The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
I can today announce that we will amend regulations to smooth the transition from universal credit to pensioner benefits and remove any potential gap in support.
All those who reach state pension age while claiming universal credit will receive a run-on, meaning that they can receive a payment for the entire assessment period in which they reach state pension age. Entitlement to pensioner benefits and state pension is unaffected and continues as usual. This ensures there is no gap in benefit provision as people approach state pension age. This will benefit approximately 200,000 pensioners who will benefit by an average of £350 from this run-on at a cost of around £70 million over the next five years.
This process is already in operation on an extra statutory basis, ensuring that nobody loses out upon reaching state pension age, and legislation will be amended accordingly later this year.
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Oral Answers to Questions
Thérèse Coffey Excerpts(4 years, 10 months ago)
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Nicola Richards (West Bromwich East) (Con)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
As my hon. Friends will know, reducing homelessness and ending rough sleeping is primarily the responsibility of the Ministry of Housing, Communities and Local Government, but it is a key priority for the Government and the Prime Minister. I enjoy working closely with my right hon. Friend the Secretary of State for Housing, Communities and Local Government on the approach to delivering housing support to reduce homelessness, and I look forward to supporting his conversations with the Chancellor.
Gary Sambrook
Last Friday, I visited Northfield Community Partnership and The Project, which are doing fantastic work on reducing homelessness, especially focusing on mental health, access to welfare and debt. Will the Minister continue to commit to working with voluntary organisations to reduce homelessness?
Dr Coffey
I commend my hon. Friend for the important work he does with the community partnership. Birmingham South West Jobcentre has an excellent relationship with the city council, delivering surgeries three times a week to help claimants with housing issues. My hon. Friend will be aware of the £6.5 million that the council received specifically to tackle the issue he raises. However, we will continue to work further with the organisations that he mentions, potentially through the new transformation challenge fund.
Mr Fysh
My local jobcentre in Yeovil is very proactive in assisting the smooth transition to universal credit, but I still encounter cases in which rent arrears are a problem. What more can we do to ensure that we can intervene in cases in which arrears threaten to make people homeless?
Dr Coffey
My hon. Friend will be aware of the money given to councils—including £359,000 for his own council—to help them to support homeless people. Issues such as this can often be addressed not only by discretionary housing payments but by the flexible support fund which provides hardship payments through local jobcentres.
James Sunderland
I am grateful for the Secretary of State’s earlier response, but will she please tell us what is being done to help ex-forces personnel into work?
Dr Coffey
My hon. Friend—indeed, my hon. and gallant Friend—raises an important point. Last year we secured about £5 million in the spending review to bolster the role of our local armed forces champions, which means that in the forthcoming year we shall be able almost to triple the resources to support full-time champion posts so that we can try to ensure that veterans are given work that is fruitful and long-term.
Nicola Richards
I am grateful to the Secretary of State for her responses so far. Thanks to the work of the Government, the west midlands Mayor Andy Street and local authorities in the region, the Housing First project has made great progress so far, enabling 137 people across the region to move into their own homes and get back on track, apply for work and rebuild their lives. Will the Secretary of State join me in supporting Andy Street’s mission to end homelessness in West Bromwich East and the wider west midlands, and will her Department work with the Ministry for Housing, Communities and Local Government so that we can reach the Prime Minister’s target of ending homelessness and rough sleeping during the current Parliament?
Dr Coffey
My hon. Friend is right to praise the work that is being done in the west midlands through Andy Street, and I commend her support for it. I shall meet my right hon. Friend the Secretary of State for Housing, Communities and Local Government later this week, and our officials are already working together on a programme to tackle homelessness.
Martyn Day (Linlithgow and East Falkirk) (SNP)
The Scottish Government are spending £50 million to ensure that no one has to pay the bedroom tax, which is helping more than 70,000 households to sustain their tenancies. Will the Secretary of State make it her policy to abolish the bedroom tax so that we no longer have to mitigate this unfair policy in Scotland?
Dr Coffey
I actually think that the spare room subsidy was an important part of a change to deal with the challenges of homelessness, which we have just been discussing. I absolutely believe that we will continue that policy, but, as ever, when there are problems, part of the role of the discretionary housing payments is to deal with them. The hon. Gentleman will be aware—I think I am right in saying this—that the Scottish Government have not introduced that policy quite yet, but intend to do so later in the year.
Mr Toby Perkins (Chesterfield) (Lab)
Anyone who has visited a food bank or has met homeless people on their streets will know that welfare policy is the No.1 reason for the appalling rate of homelessness in our towns. As a simple starting point, if the housing element of universal credit were paid to landlords, we could make a start towards ending the appalling problem of homelessness that welfare policy is currently inflicting on our streets.
Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
One of the real concerns in my constituency is the inability of people who want to rent to do so privately with the money that is available. Will the Secretary of State look at local housing allowance rates to ensure that families who could be living in the private sector—because they cannot obtain social housing—are not living in single hostel rooms, as many of my constituents have been for many years?
Dr Coffey
I am sure that the hon. Lady will welcome the increase in the local housing allowance from April 2020. I am conscious of the fact that two thirds of the people who are homeless are in London, and I really wish that the Mayor of London and his devolved authorities would get on and help to sort this out.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Would the Minister consider using all the orphan funds swilling around in pension funds to create a new fund that could do something about this issue? On Wednesday night, I counted 15 people sleeping rough right outside our door in the tube station. Has she been to ask those men and women what brought them there? Could we not use orphan funds for that purpose and for fighting climate change?
Dr Coffey
On a broader point, we are considering aspects of liquid assets, and we have seen the example of Legal & General, which is starting to get into the housing sector. I reiterate that when the Prime Minister was Mayor of London he made it a personal priority to ensure that no one spent more than one night outside. We have not seen quite that emphasis under this Mayor, but I am sure that he will seek to do this before the elections in May.
Mark Pawsey (Rugby) (Con)
Yvonne Fovargue (Makerfield) (Lab)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
In total, universal credit is £2 billion a year more generous than the legacy system it replaces. For those who can work, universal credit ensures people take home more of their earned income and are supported to work more hours, whereas for those who cannot work, the higher disability element is more generous, meaning that 1 million disabled claimants will gain, on average, £100 a month.
Yvonne Fovargue
Last week, a report from the debt charity StepChange found that 65% of clients said that universal credit had made it harder for them to budget and manage their finances. Given the DWP’s oversight of the UK financial wellbeing strategy, what will the Department do to ensure that universal credit helps people to recover from debt and does not make the problem worse?
Dr Coffey
I know that the hon. Lady has focused on this issue for a lot of her professional career, as well as for a lot of her parliamentary career. We do important work through the Money and Pensions Service to make debt advice available, and that is an important avenue to which people can be referred. We also work closely with Citizens Advice on the Help to Claim service, to help to provide that alternative holistic approach for which we fund the CAB.
Mary Glindon (North Tyneside) (Lab)
Laura Farris (Newbury) (Con)
The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
In the week that we leave the European Union, I am pleased to say that our labour market continues to thrive. Employment has reached a new record high of 76.3% matched by a record number of people in work, pulling Britain forward into the new decade. That includes 15.5 million women—more than ever before—and 1.3 million disabled people have joined the labour market since 2013. This shows a bright outlook for our buoyant economy as we continue to grow and enhance the labour market in this new era for our country.
Laura Farris
Discrimination against women during pregnancy or periods of maternity leave remains a particularly problematic form of workplace discrimination, and it has affected many of my constituents. What steps is the Minister taking to improve the take-up of shared parental leave to remove the onus and the spotlight from new mothers at that particularly vulnerable period in their working lives?
Dr Coffey
My right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy leads on this issue. I assure my hon. Friend that we encourage people to take up the options and we support their efforts. We will continue to do more with our work coaches on helping people to get the most out of working.
Jack Dromey (Birmingham, Erdington) (Lab)
The Government have said that the aim of the Pension Schemes Bill is to support pension saving, putting the protection of people’s pensions at its heart. However, this weekend, we learned that the Financial Conduct Authority is preparing to write to just over three quarters of firms that advised individuals on pensions between 2015 and 2018 about “potential harm” in their defined benefit transfer advice. How can the Government claim to have a joined-up pension policy when pension freedoms can be exploited, giving licence to rogue financial advisers to put at risk people’s savings for retirement? Some have paid a terrible price, impoverishing them for years to come.
Stephen Crabb (Preseli Pembrokeshire) (Con)
Dr Coffey
My right hon. Friend is right to point to the creation of the shared prosperity fund. Discussion is ongoing within the Government. I know that the Wales Office is already engaged in conversation; we will engage in due course, once we have got through the initial design internally.
Daniel Zeichner (Cambridge) (Lab)
Zarah Sultana (Coventry South) (Lab)
Dr Coffey
The hon. Lady is right to praise volunteers at her local food bank who support vulnerable people in their area. I visited a similar food bank in my own constituency that has been working together with food redistribution schemes. Marrying the two is a perfect way to try to address the challenges that people face at difficult times in their lives. The hon. Lady will be aware of the work that we have been trying to do with the Trussell Trust, and I am pleased to say that we will also be having a roundtable of independent food banks to understand how we can help them and their customers to move forwards.
Colleen Fletcher (Coventry North East) (Lab)
Mrs Emma Lewell-Buck (South Shields) (Lab)
Dr Coffey
To be open, I am not aware of the study to which the hon. Lady refers. I will find out about it after questions, so I can send her an answer in writing. As I have mentioned to the House before, food bank use is not what we want to see in the long term. The best way to get out of poverty is through work, which is why we will continue to help people up the escalator of career progression.
Alex Norris (Nottingham North) (Lab/Co-op)
Disability Direct in my constituency has a success rate of more than two thirds when helping claimants to overturn disability-related assessment decisions. Do Ministers not recognise that a welfare system that is so wrong so often is simply broken?
Martin Docherty-Hughes (West Dunbartonshire) (SNP)
The Scottish Government have used 15% of social security that has been devolved to Holyrood to exempt the war disablement pension from the assessment of income, meaning that our veterans get the full worth of that pension in Scotland. When will the Department and the Secretary of State make the same commitment for all social security benefits?
Dr Coffey
The Scottish Government are already undertaking a series of policy changes that they recognise will take some time to work through the system, while they also create their own. I think it is best to ensure that those policies are well established before we consider any further devolution.
John Cryer (Leyton and Wanstead) (Lab)
Will the Secretary of State assure the House that there are no plans to reintroduce employment tribunal fees?
Dr Coffey
I am not aware, because as the hon. Gentleman will know, employment tribunals are basically managed by the Department for Business, Energy and Industrial Strategy, rather than the Department for Work and Pensions. I therefore encourage him to table a written question to BEIS instead.
Anne McLaughlin (Glasgow North East) (SNP)
My constituent did not wait five weeks for a universal credit decision. She waited five months and then started to receive payments, but there has been no mention of the backdated five months or whether a decision has been made. Will the Secretary of State urgently look at that case? If she lets me know the next time she sends one of her Ministers to my area, I will take him along with me and he can explain to my constituent why she nearly went bankrupt.
Dr Coffey
I suggest that the hon. Lady lets the Minister for Disabled People, Health and Work, my hon. Friend the Member for North Swindon (Justin Tomlinson), know directly about her constituent’s particular circumstances so that he can follow up on that individually. I know that he believed that he had let hon. Members know about this matter. We take the issue seriously, and we will check after Question Time what happened regarding the communication.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
Greggs in Newcastle has, as we know, given its workers a £300 bonus to share in its success as a company. Does the Secretary of State agree that that is the right thing for employers to do? Does she see why so many of the employees who are on universal credit will lose so much of that bonus because it is treated as a monthly income rather than an annual income, which is what it is?
Mr Toby Perkins (Chesterfield) (Lab)
The Secretary of State’s answer to my earlier question about homeless people’s universal credit payments going to their landlords missed the point completely. Many people who are homeless have alcohol or drug abuse issues. Giving the money to them directly is not solving the problem; it needs to go to the landlord. Rather than saying that it is a choice for them, that choice should, in many cases, be made for them.
