State Pension Age Review

Baroness Coffey Excerpts

Tuesday 14th December 2021 Written Statements

[The Secretary of State for Work and Pensions (Dr Thérèse Coffey)]

My Department is launching the second Government review of state pension age, which must be published by May 2023, under section 27 of the Pensions Act 2014.

As the number of people over state pension age increases, due to a growing population and people on average living longer, we need to make sure that our decisions on how to manage the costs of state pension provide fairness to both taxpayers and pensioners and that it continues to provide the foundation for retirement planning and financial security.

In line with the legislative requirements to review whether the rules about pensionable age remain appropriate, this review will consider a wide range of evidence from every part of the United Kingdom. It will explore the implications of the latest life expectancy data, including evidence on healthy life expectancy disparities, to provide a balanced appraisal of the costs and options to make sure our decisions on state pension age are robust and transparent. The review will also consider how we best support an ageing population and their opportunities to work.

In line with the statutory framework, I am also commissioning two independent reports to contribute to the evidence-base that will inform this review. I will be commissioning the Government Actuary to provide a report analysing the latest life expectancy projections. I am also commissioning Baroness Neville-Rolfe DBE CMG to provide a report which considers the metrics we use for analysis when setting state pension age. Baroness Neville-Rolfe DBE CMG has a recognised wealth of senior level experience from a career in business and the public sector, including serving as a company director, working in the UK and internationally as well as being a pension scheme trustee in a FTSE 100 company. I welcome an external consideration of this issue. I have also asked Baroness Neville-Rolfe DBE CMG to consider the views of other experts and stakeholders. I attach the terms of reference for Baroness Neville-Rolfe’s report to this statement, which will also be made available today on the www.gov.uk website.

The attachment can be viewed online at: http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2021-12-14/HCWS480/

[HCWS480]

Oral Answers to Questions

Baroness Coffey Excerpts

Monday 13th December 2021 Commons Chamber

[Mary Glindon (North Tyneside) (Lab)]

21. What assessment she has made of the impact of removing the £20 uplift to the standard allowance of universal credit on household budgets.

[The Secretary of State for Work and Pensions (Dr Thérèse Coffey)]

The uplift to universal credit was a temporary measure, so we have not completed an impact assessment on its withdrawal.

[Layla Moran]

Charities warned that the cut to universal credit would risk 100,000 people falling into homelessness, yet the Government ploughed on with it. Added to that is the freeze to housing benefits, with the result that more families cannot afford their rent and risk losing the roof over their head, and the fact that the Government have yet to repeal the Vagrancy Act 1824, meaning that the very same people who are being made homeless could then become criminalised. Can the Secretary of State tell us how many people she expects to fall into homelessness, and what the Government are going to do about it?

[Dr Coffey]

We have provided £140 million of discretionary housing payments to councils, specifically to target that element. We boosted the local housing allowance in the covid Budget of 2020, and we have kept it at that rate. As the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Macclesfield (David Rutley), has just said, there has been a significant investment of about £2.5 billion in both increasing the work allowance and reducing the taper rate. My work coaches across the country are helping people to get into work day in, day out.

[Helen Hayes]

Many of my constituents have caring responsibilities and can only work part time, often at low wages. Does the Secretary of State recognise that families in this situation will generally lose more from the £20 a week cut to the standard allowance than they could ever hope to gain from the reduced taper? What does she have to say to those families?

[Dr Coffey]

I respect that people undertake care, and I am conscious that they often choose to do it in partnership with their local authority. We want to make sure that people take advantage of the increase in the national minimum wage, which will be coming in from April 2022, and of the changes that make it worthwhile for people to work extra hours and progress in work, which will be a big focus of what we do in 2022 and beyond.

[Tonia Antoniazzi]

Although the recent changes to the taper rate and the work allowance are welcome, they simply do not go far enough. The Resolution Foundation’s analysis found that huge increases in the cost of living will wipe out any gains. Even with these changes, three quarters of families on UC will still be worse off than if they had kept the £20 uplift to the standard allowance. Does the Secretary of State now see that the countless organisations, and even former Tory Work and Pensions Ministers, who argued for the uplift to be made permanent were actually right?

[Dr Coffey]

I am conscious of what the hon. Lady says, and I am sure she welcomes the £25 million of the £0.5 billion spent on the household support fund over this winter. I am also conscious that we want to make sure people will be better off working than not—that was the big change and the big announcement in the Budget. I am conscious that, right now, right across the country there are more people seeking work than ever before. More people are on payrolls than ever before and companies across the country are looking for workers, so we will be doing our best to help people who have not been working to get into work. We will also be responding to in-work progression early in the new year.

[Mary Glindon]

A survey by Christians Against Poverty found that 67% of its service users will struggle to pay for essentials in the coming months, with 35% already falling behind with bills and 27% now further into debt. What message does the Secretary of State have for these hard-pressed people in the season of good will?

[Dr Coffey]

I am sure the hon. Lady will welcome the £1.6 million that has been given to her local council specifically for targeted support through the household support fund. I am sure she will be as keen as I am to ensure that people seeking work in her constituency get the benefit of the extra work coach support. We have invested in that right across the country and we will continue to do so.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

3. What plans she has to work with employers and skills providers at a local level to help more jobseekers into work.

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[Bill Esterson (Sefton Central) (Lab)]

20. What assessment she has made of the potential effect of her Department’s employment schemes on labour market shortages.

[The Secretary of State for Work and Pensions (Dr Thérèse Coffey)]

Our plan for jobs is working. Since April 2020, over 1.9 million people have moved into work from the universal credit intensive work search group. We have done that by supporting thousands of people through programmes such as kickstart, restart and sector-based work academy programmes—SWAPs—to get back into work, with over 110,000 young people being supported through kickstart alone. There are over 200,000 kickstart jobs still waiting to be filled in the final months of the programme.

[Bill Esterson]

Earlier, the Under-Secretary of State for Work and Pensions, the hon. Member for Mid Sussex (Mims Davies), referred to the shortage of HGV drivers, and retailers report fivefold delays in the delivery of products, including wine and spirits, so I am wondering whether the Secretary of State’s scheme is helping to address the shortage of drivers in the run-up to Christmas. How many lorry drivers have started work as a result of her Department’s employment schemes?

[Dr Coffey]

I think it is worth explaining to the hon. Gentleman that a couple of different schemes are ongoing. Our principal role is to help people who are not working to get into jobs. We partner with people such as the Mayor of West Midlands, but also with specific programmes in the east midlands. More significant work is being done by my right hon. Friend the Secretary of State for Education, where we have bootcamps working and people are actually getting into jobs. A really important part of what we can do through SWAPs is getting people into new careers that they had never thought about.

[Selaine Saxby (North Devon) (Con)]

T1. If she will make a statement on her departmental responsibilities.

[The Secretary of State for Work and Pensions (Dr Thérèse Coffey)]

Thanks to our taper rate cut and the increased work allowances announced by my right hon. Friend the Chancellor, almost 2 million households will now benefit from a cash boost worth £1,000 a year on average. Thanks to diligent work by my officials, we have brought this change in a week earlier than planned, so that up to 500,000 more working people can get that extra boost before Christmas. We are also delivering today a less welcome early Christmas present to criminals who target our benefits system and steal from taxpayers, with a £500 million cash injection to root out fraudulent benefit claims and stop scammers. Finally and importantly, very much at the top of my mind today is the booster programme and the acceleration scheme. I am very pleased that our jobs army is going to become part of the jabs army, as DWP civil servants right across the country join the Government’s effort to get as many people boosted as possible.

[Selaine Saxby]

My right hon. Friend has already touched on the impact that the recent changes in the taper rate and work allowances will have on claimants’ net income, but will she expand on this? Also, will she consider a major advertising campaign to highlight that now is an excellent time to be in work?

[Dr Coffey]

My hon. Friend, who is of course on the Select Committee, is very wise in her suggestions. That is exactly the sort of communications that we will be doing in the coming months. This is particularly of interest for people on working tax credits, where we know that the cliff edges, which my hon. Friend the Member for Lincoln (Karl MᶜCartney) mentioned, can be a real barrier to people working extra hours. Those sorts of communications programmes will be released as we continue to try to help more people into work and to progress in work as well.

[Mr Speaker]

I welcome the shadow Secretary of State to his new position.

[Jonathan Ashworth (Leicester South) (Lab/Co-op)]

Thank you very much, Mr Speaker. May I ask the Secretary of State about Christmas? My question is not what her latest recommendation is should I find myself under the mistletoe, or indeed whether she hosted karaoke Christmas parties in lockdown in her office, but a very simple one: how many children will go hungry this Christmas?

[Dr Coffey]

I want to put on the record that no karaoke parties were hosted by me during lockdown; the last time I did karaoke with the right hon. Gentleman was a couple of years ago. I am conscious that he has raised a very serious point about children this Christmas, and that is why we have been working relentlessly on making sure that people can get into work and progress in work, but have also set aside half a billion pounds for the household support fund, half of which is entirely ringfenced for families with children.

[Jonathan Ashworth]

I fear the Secretary of State’s answer betrays poverty of ambition. The last Labour Government lifted 1 million children out of poverty, and we did not need footballers to run campaigns on child hunger. With universal credit still being cut for many families, prices going up in the shops, heating bills going up and taxes going up because this lot voted for them, can she guarantee that in 2022 child poverty and the shame of destitution will not also be going up?

[Dr Coffey]

I forgot to welcome the former shadow Secretary of State for Health to his new position. The right hon. Gentleman should reflect on the fact that his party opposed extra funding for the NHS through the health and social care levy, which we voted for. The different elements of trying to get people into work are key to lifting many more children out of child poverty. We should also flag up the £1 billion of child maintenance we have collected in the last year; we will keep doubling down on that to ensure deadbeat dads pay for their kids and help to lift their children out of poverty.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

T2. I was surprised to learn that child benefit ceases at the age of 16 for somebody starting an apprenticeship. That is clearly a disincentive for some parents to recommend that their children follow that route. Will my right hon. Friend look at this policy and consider making changes?

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[Duncan Baker (North Norfolk) (Con)]

T5. I have a constituent on the legacy benefit system for whom it might be beneficial to move to universal credit. What help and advice is there in making that switch, and what further considerations should he take into account going forward?

[Dr Coffey]

My hon. Friend is right to point out the opportunities for people on legacy benefits. They may be better off on UC, but if not, they should wait for the managed migration programme, where they will have transitional protection. It is also important to note that benefits calculators are readily available online, and the Department funds Citizens Advice and Citizens Advice Scotland for the help to claim programme. I am sure such organisations can give individual support. We will be resuming our plan to move to UC in 2022.

[Kim Leadbeater (Batley and Spen) (Lab)]

T7. I am sad to say that I agree with my hon. Friends that the most vulnerable in our society are being forced to make unthinkable choices. Dozens of my constituents have written to me recently, concerned about the impact this winter will have on elderly residents who face not only loneliness and isolation, but a heartbreaking choice between heating and eating, while disabled people struggle with cuts to their support and those on low incomes face a £20 per week cut to their universal credit. Is it not true that under this Government the most vulnerable in our society are being left without the dignity they deserve and the basic means to get by?

[Dr Coffey]

Far from it. I recognise the hon. Lady is trying to stand up for her constituents, but she should also recognise the significant increases in benefits that have been provided, whether that is for people of pensionable age—about £129 billion—or the increase in financial support to people with disabilities. She should recognise that we will continue to strive at local level through our jobcentres and Jobcentre Plus, and through our automation of things such as the warm home discount, so that people do not even have to go looking for that sort of energy support, and the household support fund, from which many of her constituents will benefit.

[Sir David Evennett (Bexleyheath and Crayford) (Con)]

T6. I welcome the efforts being made by the ministerial team to get people into work, but will my right hon. Friend the Secretary of State advise me of the steps she is taking to ensure that jobseekers can take advantage of the many opportunities in sectors with growing demand for workers?

[Dame Diana Johnson (Kingston upon Hull North) (Lab)]

T8. May I take the Minister of State back to the answer she gave my hon. Friend the Member for Salford and Eccles (Rebecca Long Bailey) on statutory sick pay? People in Hull North face a very tough winter. Even with the new circumstances that have been announced for work, many of them will have to go to work because they work in factories or in manufacturing. Is it not now time that the Government take some action on statutory sick pay and reversing the £20 cut to universal credit?

[Dr Coffey]

The right hon. Lady is right to consider the vulnerable people in her constituency. We looked at some of the policy choices we were making, published in our response to “Health is Everyone’s Business”, in which aspects of sick pay were considered, but there was a change in ministerial appointments near that time. We continue our discussions, and I am confident that we will continue to try to make progress on this element, but it is important to say that those who are required by law to stay at home are still eligible for a Test and Trace payment, administered through the Department of Health and Social Care.

[Simon Hoare (North Dorset) (Con)]

The announcement made last week by my right hon. Friend regarding historical institutional abuse will have been greeted very warmly by those people who were abused in Northern Ireland but now live in Great Britain. On behalf of the Select Committee, which did a lot of work in this area, may I thank her for listening to our representations, making this important policy change and ensuring that there is equity and fairness in this important area of financial support and redress?

[Dr Coffey]

I thank my hon. Friend. He will be aware that in the original primary legislation, which allowed for disregard, only Northern Ireland specifically was considered, so I am very pleased to have brought that disregard forward. At the same time, we wanted to take a consistent approach, so I am pleased that we will be applying the same disregards to the forthcoming payments being made by the Scottish Government and through, I think, Islington and Lambeth Councils. I commend him and his Committee Members for their pursuit of the matter.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

A free university-level education is a monumental benefit of living in Scotland. What discussions has the Secretary of State had with her colleagues in the Department for Education about the benefits of making higher levels of education accessible and the impact that would have on the employability of young people?

[Dr Coffey]

I am conscious that the hon. Lady thinks that just because there is a free course, those people who are most disadvantaged in her country will take advantage of it. In fact, that has not been the case; we see far more people in England from less privileged backgrounds getting into university and benefiting from that. It is important that we have a balanced approach, recognising the importance of level 3, 4 and 5 apprenticeships in particular and the fact that, once they have graduated, those people will be better off financially, except compared with those in Russell Group universities, within 10 years.

[Peter Dowd (Bootle) (Lab)]

This time last year, the Canadian Government asked the UK Government to enter into talks to bring about pension parity for pensioners like Royal Navy veteran Alan Wren, who was forced to work until he was 78 years of age because his pension had been frozen in Canada. The Government refused to enter into those discussions. What does the Secretary of State say to veterans such as Alan and the 492,000 other pensioners who are trapped on meagre state pensions, all because they live in the wrong country? In Alan’s case, the country is a commonwealth and NATO partner and ally.

[Ms Anum Qaisar (Airdrie and Shotts) (SNP)]

In an earlier answer, the Secretary of State mentioned that she has not sung karaoke for a number of years, but I seem to recall she was singing, “I’m having the time of my life” just a few months ago, the night before the universal credit uplift was removed. On that point, I recently visited a Trussell Trust foodbank in my constituency, where staff and volunteers raised serious concerns that the reduction in universal credit will push more and more families into poverty. Will the Department concede that the cut to the uplift will mean that more households will become reliant on foodbanks?

[Dr Coffey]

The hon. Lady should be aware that there was a temporary uplift, reflecting what was happening with the covid pandemic, which was extended. I am sure she will appreciate the change in the taper rate and the work allowance. Jobcentres will be helping her constituents to get into work. If I may, I will just put on record my thanks to people involved in a variety of ways, whether in foodbanks, food recycling or similar, because it is important that we all continue to work in our local communities to support our constituents.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Mr Speaker, is it in order for me to mention the B word in this Chamber? If it is okay, I want to say Blair—Tony Blair. Has the Secretary of State seen his remark that if we want to give real skills to people, it is FE colleges that are the key to skills? Tony Blair’s idea is that we upgrade the profile of all FE colleges to polytechnics and that we put the resources in to accompany that? What does she think of Blair’s ideas?

[Dr Coffey]

What I noticed was that when the hon. Gentleman referred to Tony Blair there was silence on the Labour Benches. What I will say is that we are absolutely committed to the lifetime skills guarantee. We are levelling up across the country and making sure that relevant courses get people into work. I am really pleased that we are united in recognising that that is the most important thing our Department can achieve.

Statutory Review of Benefit and Pension Rates: 2022-23

Baroness Coffey Excerpts

Thursday 25th November 2021 Written Statements

[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 2022-23 and come into effect on 11 April 2022.

The consumer prices index (CPI) for the relevant reference period (the year to September 2021) was 3.1%, and I can confirm that benefits will increase in line with that. This is consistent with the use of this index since 2011. The weekly earnings limit in carer’s allowance will also be increased by 3.1%.

In line with the Social Security (Up-rating of Benefits) Act 2021, state pension rates will rise in line with CPI of 3.1%.

I also confirm that the local housing allowance rates for 2022-23 will be maintained at the elevated cash rates agreed for 2020-21. The Office for Budget Responsibility made this assumption too in its expenditure forecast.

All of these matters are transferred in Northern Ireland, and corresponding provision will be made there.

Some benefits are devolved to the Scottish Parliament, but there are benefits that are still temporarily being delivered by DWP on behalf of the Scottish Ministers under agency agreements; these will rise with CPI of 3.1%. The Scottish Government will need to bring forward corresponding uprating legislation in the Scottish Parliament.

I will place the full list of proposed benefit and pension rates for 2022-23 in the Libraries of both Houses.

[HCWS420]

International Labour Organisation Convention 190

Baroness Coffey Excerpts

Monday 15th November 2021 Written Statements

[The Secretary of State for Work and Pensions (Dr Thérèse Coffey)]

I would like to inform the House that, today, the Government will lay the text of a Convention of the International Labour Organisation, the Violence and Harassment Convention, in the form of a Command Paper in both Houses together with an explanatory memorandum stating the Government’s proposal that the UK should ratify it. If no objections are raised in the next 21 sitting days, the Government will move to draw up the UK’s Instrument of Ratification. The convention will come into force 12 months after the instrument of ratification is deposited with the International Labour Organisation.

This is the first international treaty to recognise the right of everyone to a world of work free from violence and harassment. This convention, along with its supplementing recommendation (No. 206), sets out a common framework for action to prevent and address violence and harassment in the world of work. It is a broad instrument, affording comprehensive protections to a broad range of individuals, including those most vulnerable to violence and harassment at work, in relation to a wide range of work environments and activities.

The Government already have the legal framework in place to meet the requirements of the convention, including civil and criminal law provisions, as well as occupational health and safety law.

Following our response to the sexual harassment in the workplace consultation, published earlier this year, the Government will also be introducing a new proactive duty requiring employers to take steps to prevent their employees from experiencing sexual harassment and introducing explicit protections for employees from harassment by third parties, for example customers or clients. These measures will not only strengthen protections for those affected by harassment at work but will also motivate employers to make improvements to workplace practices and culture.

The Government will not waver in our defence of the rights of women and girls to live free from violence and abuse. The UK will continue to protect and promote the safety and rights of women and girls overseas, and call for all member states to remain committed to international conventions, including by ratifying the International Labour Organisation Violence and Harassment Convention as a means of promoting its aims globally.

It has taken time to get to this point. The UK played a leadership role in the two-year negotiations on the content of the convention, building on our already strong position on violence against women and girls. Following this we consulted the devolved administrations and our social partners, all of whom are in full support of ratification.

Ratifying this convention is the right course of action and I hope it reassures the Houses of the Government’s commitment to tackling violence and harassment in the world of work.

[HCWS388]

Oral Answers to Questions

Baroness Coffey Excerpts

Monday 8th November 2021 Commons Chamber

[Greg Smith (Buckingham) (Con)]

1. What steps she is taking to ensure that the household support fund helps the most vulnerable during winter 2021-22.

[The Secretary of State for Work and Pensions (Dr Thérèse Coffey)]

We have made £500 million available across the UK to support vulnerable households this winter. It really is for local authorities, which are closer to their communities, to use the funding to support those with needs for food, utilities and wider essentials. They are best placed to design schemes that support those most in need locally.

[Greg Smith]

The £500 million household support fund is extremely welcome and my local council is busy ensuring that support reaches those who need it through their excellent Helping Hand scheme. Will my right hon. Friend join me in congratulating Buckinghamshire Council on ensuring that a comprehensive package is available for those who are sadly unable to put food on the table or heat their homes, and will she set out what more can be done to ensure that those in such distressing circumstances know that local authorities have the resources and should be the first port of call?

[Dr Coffey]

My hon. Friend is right to praise Buckinghamshire Council, which was allocated £2.4 million from the fund. It is fair to say that local authorities delivering the household support fund have access to elements relating to health visitors, social workers and housing departments, and access to the benefits system through the Searchlight portal, to identify people who may need help at this time and are most in need. Of course, people should turn to their councils for that support, and they should be warmly welcomed.

[Ms Karen Buck (Westminster North) (Lab)]

According to the Resolution Foundation, the combined effect of the removal of the £20 universal credit uplift and the Budget measures means that 3.6 million households on universal credit—three quarters of the total—will still be worse off this winter. These measures take £3 billion out of support for the poorest, so how far does the Secretary of State estimate that the £500 million household support fund, which is equivalent to just one sixth of the amount that has been removed, will reduce the level of hardship for people this winter?

[Dr Coffey]

The hon. Lady will recognise that some of the announcements made in the Budget recently will, I expect, provide some direct support for people working or, indeed, encourage people into work. However, the £500 million, being a targeted fund, will be a great support, with people identified by local councils that know who to target in this regard. It is also fair to say, as has been said many times, that the uplift was temporary, recognising the situation that we are in, and candidly, it was far more generous than ever happened—or rather, never happened—when we had the 2009-10 financial crisis.

[Mr Steve Baker (Wycombe) (Con)]

Like my hon. Friend the Member for Buckingham (Greg Smith), I pay tribute to Buckinghamshire Council for all that it has done with the Helping Hand scheme. Does the Secretary of State agree that in a place such as High Wycombe, where riches and poverty are often found so close together, it is imperative that we equip councils to provide local people with the local help that they need?

[Dr Coffey]

I strongly agree. That is why we are working through local authorities, which understand their communities well, without there being blanket schemes. It is important that that is reflected around the country, including in places such as High Wycombe.

[Alison Thewliss (Glasgow Central) (SNP)]

2. What steps her Department is taking to tackle delays in payment of the state pension.

--- Later in debate ---

[Claire Coutinho (East Surrey) (Con)]

5. What assessment she has made of the resilience of the universal credit system during the covid-19 outbreak.

[The Secretary of State for Work and Pensions (Dr Thérèse Coffey)]

The universal credit system stood up to the challenge of the pandemic, which meant that people received vital financial support at their time of need. On one day alone we received just over 100,000 new claims, 10 times the average. The old system would not have coped with the unprecedented pressure that we have seen over the past 18 months, and that is yet another reason why universal credit is working.

[Claire Coutinho]

During the pandemic, the universal credit system proved not only its resilience but its agility in providing people with the emergency support that they needed. Now that the Government are rightly focusing on getting people back into work, could my right hon. Friend set out the timetable for the very welcome changes that she has made to the universal credit taper rate and to work allowances?

[Dr Coffey]

I was not the only person to cheer loudly when the Chancellor announced to the House that we were increasing work allowances and reducing the taper rate to 55% no later than 1 December. I am pleased to inform my hon. Friend that the latest information I have is that we intend to try to bring that in from 24 November, which means that an extra 500,000 claimants will benefit, even more than might have been predicted just a couple of weeks ago.

[Mr Toby Perkins (Chesterfield) (Lab)]

The Department for Work and Pensions makes substantial efforts to assure itself that people who are on universal credit and not in work are entitled to that payment, either because of the disabilities that they have or because they have made every possible effort to find work. On that basis, why would the Government reassure themselves that it is okay to plunge those people into poverty, when they have done everything that the Government have asked them to do in terms of trying to find work? Why not just reintroduce that £20 payment?

[Dr Coffey]

The £20 uplift was a temporary measure reflecting the nature of what happened in the pandemic, and the greatest financial impact was on those who had gone from having earnings to having no earnings at all. We have doubled the number of work coaches and we are striving to help people to get into work, because we know that that is the best way to get on in life. I am sure the hon. Gentleman will welcome the change that happened in the Budget, which shows, perhaps even quicker than initially predicted, that work genuinely pays.

[Andrew Jones (Harrogate and Knaresborough) (Con)]

My right hon. Friend is aware that Harrogate has been the location for the pilot work on the managed migration from legacy benefits. Is she able to update the House on how that is going? Before the pandemic, it was going very well indeed. Is she now in a position to recommence the pilot, or to move on to the next stage of the migration?

[Dr Coffey]

My hon. Friend is right to point out that we undertook some pilot work in Harrogate on the managed migration element of moving everybody to universal credit. I am pleased to say that there was a considerable amount of learnings from that time in Harrogate, and we have also learned a lot during the pandemic. As such, I am not envisaging a need for the pilot to be resumed in Harrogate, but it has informed our plan, which is still in preparation, on resuming the managed move to universal credit.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

6. What steps her Department is taking to help ensure that disabled people are supported in work.

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[Deidre Brock (Edinburgh North and Leith) (SNP)]

T1. If she will make a statement on her departmental responsibilities.

[The Secretary of State for Work and Pensions (Dr Thérèse Coffey)]

Since the last Work and Pensions oral questions, I am pleased to welcome the Minister of State, Department for Work and Pensions, my hon. Friend the Member for Norwich North (Chloe Smith), and the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Macclesfield (David Rutley) to join our ministerial team. I congratulate the Under-Secretary of State for Education, my hon. Friend the Member for Colchester (Will Quince) on moving to his new role, looking after childcare. I also thank my hon. Friend the Member for North Swindon (Justin Tomlinson) for the great work that he did during his time in the Department; he should be proud of his achievements, including the changes to accessibility of benefits for those with terminal illness, and the national disability strategy.

Last week I was in Glasgow for COP26. I know you were also there at the weekend, Mr Speaker, to have discussions at that important climate conference. I was meeting my international counterparts and leading industry figures to discuss how to unlock the global superpower of pension funds to help us to achieve net zero. The UK is already leading the way. We need to mobilise climate finance, but together—with the resolve and readiness of countries and companies to act—the commitment that we secured in Glasgow will deliver prosperity and protection for people and the planet.

[Deidre Brock]

My constituent contacted the Department for Work and Pensions several times after her universal credit stopped at the end of July because she had reached state pension age, but she received no response. Three months later, I wrote to the DWP on the matter and received a letter on the same day, admitting the error, immediately depositing the outstanding amount and beginning the pension payments that my constituent was due. I listened to the excuses of the Under-Secretary of State for Work and Pensions, the hon. Member for Hexham (Guy Opperman), on this earlier, but I still cannot understand how it could have happened. Will the Secretary of State apologise to my constituent for the very great anxiety that she has suffered because of the DWP’s blunders?

[Dr Coffey]

The hon. Member just shows her effectiveness as a Member of Parliament in responding to her constituent and taking the issue up with us. If there are specific details that she would like to go into, I think the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Hexham (Guy Opperman), will be more than happy to respond. It is right to say that universal credit is not paid to people who are of pension age, but I flag to her some of the issues addressed by my hon. Friend earlier when considering the backlog in paying out pensions.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

May I add my welcome to the new Ministers on the Front Bench today?

In the year before the pandemic, 380,000 sanctions were handed out by the DWP to the British people. Of course, there must be rules in any system, but since the Conservatives came to power in 2010, there has been a heavy focus on punitive sanctions, often for minor infractions, yet when the Home Secretary breaks the ministerial code by bullying, she gets off scot-free; when the Electoral Commission tries to investigate the Prime Minister’s flat refurbishment, it gets its wings clipped; and last week, when Mr Owen Paterson broke the rules on paid advocacy, this Government tried to do away with the rules all together. These are not one-offs. This is a pattern of behaviour. Does the Secretary of State appreciate that many people are comparing how the DWP operates with how the Conservative party behaves, and are asking, “Why is there one rule for the Government and another for everybody else?”?

[Dr Coffey]

Well, what can I say? The interests of the British public are best served when the Conservative party is in power and in government. We are seeing a rise in employment. We are seeing a universal credit benefit system that is more generous than the legacy system that was there. We are finally removing a lot of the thresholds that actually prevented people from working more than 16 hours per week. I am proud of not only our policies but our civil servants in delivering an excellent record in trying to make sure that money gets to the people who deserve it the most.

[Jonathan Reynolds]

People simply want to know that everyone in this country is playing by the same rules, and I think that is reasonable.

Let me turn to another crisis of the Government’s own making—the problems in the labour market we have seen over the past few months that left the pumps dry and the shelves sparse. As we left the single market it was obvious which sectors would be most disrupted: transport, logistics, and social care and the NHS. Regardless of how people voted, we have to make this work, which it clearly does not at the moment because of Government incompetence. This Government often claim they have a plan for jobs, but surely any credible plan would have tackled these shortages head on and got unemployed people the skills the economy needs to keep Britain moving. So, very simply, why was there no plan in place to prevent these problems?

[Dr Coffey]

Very evidently, the plan for jobs is working. We are seeing more people on the payrolls than was happening pre-pandemic. I hear what the hon. Gentleman says about some of the skills that may be required. I am conscious that many people who campaigned vigorously to stay in the European Union are still trying to use the excuse of leaving the European Union for why certain sectors are still under-supplied. The reality is that nearly 6 million people registered for the EU settlement scheme and they have an entitlement to live in this country if they so wish. I think there are some aspects of covid that are perhaps hindering people in coming back into the UK who are considering a return to their native countries. Let me say very clearly that we are working on this right across Government. We have the Prime Minister’s lifetime skills guarantee. We are encouraging people to consider swapping sectors, as is happening with aspects such as SWAPs—sector-based work academy programmes—for people who are unemployed. There are also the bootcamps for skills and the incentives to take on apprentices that have given been to employers right across the country. I can honestly assure the hon. Gentleman that the plan for jobs is certainly working.

[Selaine Saxby (North Devon) (Con)]

T4. North Devon still sees twice the number of jobseekers as pre-pandemic, yet employers across my constituency are desperate for staff of all skill levels. What steps is my right hon. Friend taking to match jobseekers with vacancies?

--- Later in debate ---

[David Linden (Glasgow East) (SNP)]

The British Government’s statutory minimum wage is not a real living wage; in fact, it is a sham. It does not meet the minimum income needed for an acceptable living standard, and the differing rates for young people, including in the Secretary of State’s constituency, are wholly unjust and discriminatory. What action will she take to ensure that all workers, regardless of age, get a real living wage, as set by the Living Wage Foundation in April, that actually reflects the rising cost of living, and not the sham supported by this British Government that Scotland did not vote for?

[Dr Coffey]

We have a separate body that already makes recommendations. It is called the Low Pay Commission, and the differential in wages is out there. The hon. Member can cite whatever campaigning body he likes; we have seen a huge increase in the national living wage, and that is to be welcomed right across the country as we head towards the national living wage being 66% of median earnings.

[Rob Roberts (Delyn) (Ind)]

T6. Almost exactly a year ago, I had the privilege of serving on the Bill Committee for the Pension Schemes Act 2021, which was widely appreciated by the industry as being an outstanding piece of legislation. One of the best parts of that Bill was pensions dashboards, which enable people to better understand and impact on their pension savings. Can my hon. Friend in a short time give an update on the implementation of pensions dashboards and undertake to write to members of the Committee with a more detailed response?

--- Later in debate ---

[Dr Coffey]

We have been working consistently to try to ensure that for people who receive benefits, for which immigration status is required, we exhaust all avenues to encourage them to apply to the EU settlement scheme to maintain that benefit entitlement. I am pleased to say that the vast majority of people have done so, and we will keep working to try to ensure that, whether people have received letters, UC journal messages, invitations to come to face-to-face appointments, or supportive officers have been sent round to help them with the process, we are taking every action possible to try to ensure they do so. I encourage hon. Members to ensure that people know they must apply for EUSS status so that they continue to be eligible for the benefits.

[Kirsten Oswald (East Renfrewshire) (SNP)]

Like other Members, I welcome the modest reduction in the universal credit taper rate, but it does not come close to compensating for the effect of the £20 a week cut to universal credit, to say nothing of the national insurance hike, rising inflation and soaring energy prices. In a written answer to me in September, the Minister for welfare delivery, the hon. Member for Macclesfield (David Rutley) confirmed that prior to cutting universal credit, the Department had not assessed the effect of the cut or the increase in energy costs on child poverty. Will the Secretary of State act now to correct that omission and conduct and publish an up-to-date assessment of how the cut to universal credit and the rising cost of living will impact on child poverty?

[Dr Coffey]

Given that it was a temporary uplift, recognising the effect of aspects of the pandemic on people new to benefits, no impact assessment was undertaken. With the removal of the temporary uplift, therefore, no impact assessment has been undertaken either.

[Bob Blackman (Harrow East) (Con)]

The cut to the taper rate from 63% to 55% was clearly a vital measure to support people on low incomes. What consideration has my right hon. Friend given to lowering the taper rate further so that we can ensure that people who go to work continue to work and benefit as a result?

[Dr Coffey]

I congratulate my hon. Friend on championing the announcement of the reduction of the taper rate from 63% to 55%. He may be aware that that was the original design of the universal credit system. The Chancellor agreed with me and the Prime Minister that, in trying to ensure that work pays, it was the right moment to do it. It recognises the labour market opportunities and makes sure that people are better off working. With my right hon. Friend the Chancellor having already provided for costs of about £2.5 billion annually, I am not convinced that we will seek to change the taper rate further; instead, we will be seeking to ensure that all the current job vacancies are taken up so that work really does pay.

[Andrew Gwynne (Denton and Reddish) (Lab)]

In answering an earlier question about 1950s women, the Under-Secretary of State for Work and Pensions, the hon. Member for Hexham (Guy Opperman), referred to the High Court but not the Parliamentary and Health Service Ombudsman’s report. Given that the report explicitly urged the Government not to drag their feet and to proactively co-operate with the next stages of the investigation, will he assure me that he will break the habit of a lifetime and do just that?

Cold Weather Payments Scheme

Baroness Coffey Excerpts

Monday 1st November 2021 Written Statements

[The Secretary of State for Work and Pensions (Dr Thérèse Coffey)]

We are today announcing the outcome of this year’s Met Office review of the cold weather payments scheme. The Department for Work and Pensions asks the Met Office to provide advice annually on whether the linkages between postcode areas and weather stations remain the best available. The postcode linkages take account of topography, the extent of built-up areas and the distance from available weather stations. Each postcode area is assigned to a station with the most similar climate in terms of mean winter temperature. Therefore, the assigned station is not necessarily the nearest one. Where necessary, we make changes annually to ensure that postcodes are linked to the most appropriate weather station for the purposes of administering cold weather payments.



For the 2021-22 season, the changes to weather station and postcode linkages are as follows:



The PH12 postcode will move from Leuchars to Strathallan weather station.

Due to the closure of the weather station at South Farnborough, the following postcodes will move to Odiham: GU1-4, GU7-12, GU14-35, GU46-47, GU51-52, RG1-2, RG4-8, RG10, RG12, RG14, RG18-27, RG29-31, RG40-42, RG45, SL1-2, SL4-6 and SO24.

Due to the closure of Bedford weather station, the following postcodes will move to Wittering: NN14-16; and the following postcodes will move to Stowe weather station: NN1-7, NN11-13 and MK18.

[HCWS361]

Plan for Jobs Extension

Baroness Coffey Excerpts

Monday 18th October 2021 Written Statements

[The Secretary of State for Work and Pensions (Dr Thérèse Coffey)]

Our plan for jobs is working. With the UK economy rebounding strongly, the number of payrolled employees is now above pre-pandemic levels and vacancies are at record levels. Our unprecedented £407 billion support package protected jobs and livelihoods through the worst of the pandemic and the formidable force of our jabs and jobs armies means we are building back better—helping people move into decent, well-paid jobs and get the skills they need to succeed.

We are investing a further £500 million to expand the plan for jobs to build on its successes to help people of all ages fulfil their potential, in particular younger and older jobseekers and those on low incomes.

We are extending our kickstart scheme until the end of March 2022, which has so far helped over 85,000 young people take a confident first step in their careers. This will allow thousands more young people to benefit and enable employers a further opportunity to apply for funding for roles, especially those who were unable to take on young people while covid restrictions were in place. New applications for roles will be accepted until 17 December 2021, though employers will be expected to move quickly to fill their approved roles.

We are extending our youth offer to 2025. This will ensure that young people can continue to benefit from intensive work coach support through the youth employment programme, specialised youth employability coaches and over 135 youth hubs, which are already providing support to thousands of young people across England, Scotland and Wales. We are also expanding eligibility, with 16 and 17-year-olds able to join alongside 18 to 24-year-olds claiming universal credit and searching for work.

For older workers, who often face specific challenges remaining in and returning to work, we will be funding a new support package. This will ensure they receive more intensive, tailored support during their work search journey, as well as information and guidance on later life planning, helping them make informed choices and supporting them to plan their career and stay in, or return to work.

And for low-paid workers, from April 2022, we will bolster our work coach support for people on universal credit to help them boost their earnings through a focus on career progression advice, with jobcentre specialists working with local employers to identify opportunities for people to progress in work.

We are also extending JETS—our job entry targeted support scheme—to September 2022, which has so far supported over 175,000 people across the UK by providing light-touch employment support for six months within the first year of unemployment. And our job finding support (JFS) scheme will continue to prioritise support for those coming off furlough through online, tailored, one-to-one support for those newly unemployed and claiming universal credit, including recruitment advice from a skilled adviser, support with CVs, and mock interviews.

This expansion of our plan for jobs and jobcentre network is an example of our commitment to invest in skills and jobs, helping people to move into well-paid work, progress, earn more and increase financial resilience —boosting pay, prospects and prosperity.

[HCWS318]

Household Support Fund

Baroness Coffey Excerpts

Monday 18th October 2021 Written Statements

[The Secretary of State for Work and Pensions (Dr Thérèse Coffey)]

Our £407 billion covid support package has protected jobs and livelihoods through the worst of the pandemic. With the UK economy rebounding, our plan for jobs is working, with the number of payrolled employees now above pre-pandemic levels and vacancies at record levels. Thanks to the formidable force of our jabs and jobs armies, and an expansion of the Government plan for jobs worth over £500 million, we are building back better—helping people to move into better paid work, progress, and increase their financial resilience. Our approach is boosting pay, prospects and prosperity for the long term.

However, we recognise that some people may require extra support over the winter as we enter the final stages of recovery, which is why vulnerable households across the country will now be able to access a new £500 million support fund to help them with essentials. The household support fund will provide £421 million to help vulnerable people in England and allocations to individual local authorities are set out below. The Barnett formula will apply in the usual way, with the devolved Administrations receiving almost £80 million (£41 million for the Scottish Government, £25 million for the Welsh Government and £14 million for the Nl Executive), so the fund totals £500 million.

The household support fund is available to councils in England from this month and will run over the winter to 31 March 2022. The funding will primarily be used to support households in need with food, energy and water costs, with flexibility to support with wider essentials. In cases of genuine emergency, where existing housing support schemes do not meet this exceptional need, the household support fund can also be used to support housing costs. At least 50% of the funding will be reserved for households with children and up to 50% is available for vulnerable households without children, including individuals. Local authorities have the flexibility to design their schemes to best suit local needs, within the parameters of the guidance.

This new fund will bolster existing measures that we have introduced for low-income households, such as increasing the national living wage, expanding the £220 million holiday activities and food programme, doubling free childcare for eligible working parents and increasing the value of healthy start vouchers by over a third. The household support fund also sits alongside the support available through the warm home discount, the cold weather payment scheme and the almost £30 billion that Government are projected to spend in 2020-21 on housing benefit and the housing element of universal credit.

The table for the household support fund indicative funding allocations per county councils/unitary authorities for the period 6 October 2021 to 31 March 2022, can be found at: Government launches £500m support for vulnerable households over winter - GOV.UK (www.gov.uk)

[HCWS313]

Social Security (Up-rating of Benefits) Bill

Baroness Coffey Excerpts

2nd reading
Monday 20th September 2021 Commons Chamber

[The Secretary of State for Work and Pensions (Dr Thérèse Coffey)]

I beg to move, That the Bill be now read a Second time.

Each year I am required to undertake a review of social security rates to consider whether benefits have kept pace with inflation or an increase in earnings. I will undertake that review shortly, and will report to Parliament in November. The Bill refers to how I will undertake the review.

As set out in the Social Security Administration Act 1992, there are four benefits for which there is a direct link with earnings: the basic state pension, the new state pension, the standard minimum guarantee in pension credit, and survivors’ benefits in industrial death benefit. That last benefit is devolved to Scotland, and I can confirm that we have received the legislative consent motion that is necessary. I must emphasise that the Bill does not extend to other benefits, including universal credit, where the uprating review is linked to prices.

Normally, I have a specific reference period to consider earnings growth as part of my review. That same earnings reference period has been used for the last decade. In preparing for the review last year, with regard to that reference period, we anticipated and saw an unprecedented fall in average earnings as a result of the covid restrictions that we introduced to protect lives—especially those of the most vulnerable, including many pensioners—and to protect the NHS. That was why we changed the law for one year to set aside the earnings link. Otherwise, state pensions would have remain frozen. I then made the assessment, and awarded an uprating of 2.5%, which was higher than the then inflation rate of 0.5%.

As I prepare for this year’s review, the economic context is very different from last year’s, as our economy and businesses have reopened following our successful vaccination programme and unprecedented support for businesses and households. Millions of people have moved off furlough and back into work, and we are witnessing a surge in the labour market, with over a million job vacancies. The combination of those factors has resulted in a distorting effect on wages, with a statistical anomaly.

Confirmed figures will be published in October, but provisional figures from the Office for National Statistics show an increase in earnings of 8.3%, more than two percentage points higher than at any time over the last two decades. Given that this statistical spike in earnings is due to a covid-related distortion, I am seeking the agreement of Parliament to again set aside the earnings link for just one more year, 2022-23. I have put provision in the Bill to award the higher of inflation or 2.5%, applying in effect, again, a double-lock policy. The triple-lock policy will be applied in the usual way from next year for the remainder of the Parliament. This approach has been strongly recommended by external commentators, including Sir Steve Webb, who was the Liberal Democrat Pensions Minister for the lifetime of the coalition Government. While it has come as no surprise to most of us in the House, I was disappointed by the amendment tabled by the Liberal Democrats, finding their latest bandwagon to jump on. They really should listen to Sir Steve, who probably knows more about pensions than anybody in the Liberal Democrats.

This Government are committed to ensuring that older people can enjoy their retirement with security, dignity and respect, and since 2010 the full yearly basic state pension has increased by more than £2,050 in cash terms. There are now 200,000 fewer pensioners in absolute poverty, both before and after housing costs, than in 2009-10. I am proud of our record on support for pensioners and of the action we took last year to ensure that pensioners’ incomes continue to increase. This Bill will ensure that a temporary statistical anomaly in wages does not unfairly track across into pensions, while also preserving the spending power of pensioners and protecting them from increases in the cost of living. I commend the Bill to the House.

Personal Independence Payments

Baroness Coffey Excerpts

Monday 20th September 2021 Written Statements

[The Secretary of State for Work and Pensions (Dr Thérèse Coffey)]

I would like to update the House on the Department’s implementation of the Supreme Court judgment from July 2019 in the case of Secretary of State for Work and Pensions v. MM, known as MM. The judgment concerned the way we assess the help that someone might need to engage with other people face to face and whether that help is considered “prompting” or “social support” under the PIP assessment.

The Department set out to the House on 17 September 2020 that, following this judgment, the Department had made changes to the way PIP is assessed for all new claims, award reviews and mandatory reconsiderations.

We have now started an administrative exercise, looking at PIP claims since 6 April 2016 to check whether claimants may be eligible for more support under PIP.

This is a complex exercise that will take some time to complete. We will be contacting claimants who may be affected by this change and will be writing to those we review. If claimants are eligible for more PIP, we will make backdated payments.

It is important to stress that not everyone we contact will be eligible for more PIP, however, I hope this reassures the House that we are committed to treating people fairly and ensuring that they are fully supported.

[HCWS294]