Oral Answers to Questions
Will Quince Excerpts(4 years, 2 months ago)
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Bob Blackman (Harrow East) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
As my hon. Friend knows, alternative payment arrangements are already available to enable housing costs to be paid directly to the landlord. We have listened to feedback, and in May we introduced a new online system for private landlords, so that claimants who struggle with managing their money get the right support promptly. Landlords can now request that a universal credit tenant’s rent is paid directly to them online, rather than by email or post.
Bob Blackman [V]
I thank my hon. Friend for his answer. As he will know, it is estimated that 125,000 people are now in rent arrears, with rent not being paid to landlords. Many of those people will be in receipt of either universal credit or housing benefit. What steps can he take to ensure that that rent will be paid to landlords and to prevent spiralling debts that are impossible for people to repay, so that landlords are paid their rent and tenants do not fall into unnecessary rent arrears?
Will Quince
I thank my hon. Friend for that question. He is a passionate and knowledgeable advocate on housing issues, and I always listen carefully to his representations. Alternative payment arrangements such as direct payment to landlords can be requested by the tenant, landlord or work coach, but if there is more that we can do, I am happy to explore it. I regularly meet my counterpart at the Ministry of Housing, Communities and Local Government to discuss these issues, and I am happy to meet my hon. Friend.
Ms Karen Buck (Westminster North) (Lab)
Direct payments to landlords can help vulnerable tenants, but the issue remains that the design flaws in universal credit leave many tenants at risk. We now know that on average, new claimants of universal credit see a net fall of 40% of their income, one in eight tenants have built up arrears and there is a £440 million gap between what landlords believe they are owed and what tenants have paid. What immediate steps can the Minister take to deal with these structural problems, particularly the waiting period for universal credit, so that when the eviction ban is lifted next week, tenants are not at risk of losing their homes?
Will Quince
First, I welcome the hon. Lady to her place. I am afraid that I have to start by disagreeing. It is wrong to attribute a rise in rent arrears solely to universal credit. We know that many tenants are arriving on universal credit with pre-existing rent arrears, which universal credit actually appears to be helping to clear over time. There is no wait for universal credit; people can get an advance immediately. We recognise that this has been a very difficult time for people on low incomes, and that is why we have injected more than £9.3 billion into our welfare system.
Cat Smith (Lancaster and Fleetwood) (Lab)
Margaret Ferrier (Rutherglen and Hamilton West) (SNP)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
Bonuses are earnings and are treated in the same way as any other earnings in calculating universal credit awards, reflecting HMRC guidance and ensuring fairness across the working population, many of whom do not claim welfare. UC is more generous than the legacy benefits that it replaces. The Government have already made significant investment to increase universal credit’s generosity by cutting the taper rate to 63% in 2017, with an extra £1.7 billion a year put into work allowances by 2023-24.
Margaret Ferrier
My constituent, a key worker in a pharmacy, received a one-off bonus of £120 for her efforts supporting vulnerable people during the coronavirus pandemic. That reward for hard work was eroded when £172.69 was subsequently deducted from her monthly universal credit payments. Does the Minister agree that that is no way to treat people who have stepped up to support us all during these difficult times? Will he consider temporary changes to the work allowances and taper rate to enable key workers to receive these bonuses in full?
Will Quince
I want to thank all the key workers across our country who have done so much during the pandemic. Universal credit makes sure that people are always better off in work. Under the legacy benefits system, claimants would not have kept all their bonuses; in fact, in many cases, the legacy withdrawal rate could be as high as 91% for each additional £1 earned, compared with a maximum of 75% under universal credit.
Tom Hunt (Ipswich) (Con)
Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
The Government introduced a package of welfare measures worth more than £9.3 billion this year, to help those facing the most financial disruption during the pandemic. We introduced a series of measures to support people, including an increase in the universal credit standard allowance for 12 months, worth up to £1,040. Increased local housing allowance rates have put an average of £600 into people’s pockets, and we made statutory sick pay available to employees from day one.
Stuart C. McDonald
I thank the Minister for his answer, but ending the £20 universal credit uplift could see food bank use increase by 10%, according to the Trussell Trust, and the Joseph Rowntree Foundation has warned that 16 million people could lose £1,000 a year overnight, plunging 700,000 more people into poverty. Will the Government remove that cliff edge and make the £20 uplift to universal credit permanent?
Will Quince
The increase was introduced for an initial period of one year as part of the Government’s measures to assist with the financial consequences of covid-19. It was part of a £9.3 billion increase to the welfare system that ensured that it was able to stand up and support the millions of extra people who needed it. Future decisions on benefit rates will be made at the appropriate fiscal event.
Sarah Champion (Rotherham) (Lab)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
Since mid-March we have received more than 3 million claims for universal credit, ensuring that people have a welfare safety net in their time of need. I am proud that more than 90% of new eligible claimants were paid in full and on time, proving that universal credit can stand up to the challenge. The Government’s support for people and businesses is not ending, and we are now focused on delivering our plan for jobs. I hope that the hon. Lady will support that plan, particularly the new £2 billion kickstart scheme that will create hundreds of thousands of new, fully subsidised jobs for young people across our country.
Sarah Champion [V]
I appreciate the Minister’s response, but with coronavirus support schemes being wound down and the Government seemingly unwilling to contemplate their extension, what actual steps is the Minister taking to ensure that towns such as Rotherham are not faced with a generation of mass unemployment, empty shops and closed factories as a result of the pandemic?
Will Quince
The hon. Lady is right to say that the coronavirus job retention scheme has been a huge success—it has protected up to 10 million jobs—but it is important to point out that support for furloughed employees does not end in October. In the Chancellor’s summer statement, he announced the new job retention bonus, which will pay employers £1,000 for every employee still in post by the end of January. For those who, sadly, are made redundant or lose their jobs, Jobcentre Plus stands ready to assist up and down the country.
Elliot Colburn (Carshalton and Wallington) (Con)
Stephen Timms (East Ham) (Lab)
The National Audit Office told the Work and Pensions Committee two weeks ago that the “sophisticated” analysis of the Trussell Trust has established an association between universal credit roll-out on the one hand and rising food bank demand on the other. Association is not the same as causation, so what plans do the Government have to commission research, as the National Audit Office recommends, into the impact of universal credit on food bank demand?
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
I thank the Chairman of the Select Committee for his question. As he knows, I gave evidence to the Committee recently on this very matter. I have worked closely with food bank providers—the Trussell Trust and others—over the course of the pandemic to ensure that our support has got to those who need it quickly. We continue to better understand the reasons for food insecurity. That is why we have put additional questions in the family resources survey. We keep all policies under review, and of course we listen to the findings of reports such as that of the Trussell Trust.
Mrs Pauline Latham (Mid Derbyshire) (Con)
Helen Hayes (Dulwich and West Norwood) (Lab)
Will Quince
I thank the hon. Lady for her question. The Department has an ongoing positive relationship with a range of food bank providers. It has regularly engaged with them throughout the coronavirus pandemic and will continue to do so. We quickly introduced welfare changes worth an additional £9.3 billion, and worked closely with other Government Departments on the cross-Government taskforce on food and other essential supplies. Further to my earlier answer, the hon. Lady will have to wait for future fiscal events where benefit rates are set.
Andrew Jones (Harrogate and Knaresborough) (Con)
Will Quince
My hon. Friend rightly pays tribute to the incredible team at Harrogate Jobcentre Plus. As he knows, we have seen a surge of over 3 million claims since mid-March, and I agree that UC has stood up to the challenge, with payment timeliness remaining high at over 90%. We will continue to closely monitor our services across the country and will continue to keep staff numbers under review. As he also knows, we have committed to doubling the number of work coaches.
Mr Virendra Sharma (Ealing, Southall) (Lab) [V]
Robert Halfon (Harlow) (Con)
Will Quince
My right hon. Friend is a passionate advocate for hard-working people. He tempts me to set Treasury policy, which I fear the Chancellor of the Exchequer would not take kindly to, but I urge him to make representations to Her Majesty’s Treasury instead.
Tim Farron (Westmorland and Lonsdale) (LD)
Oral Answers to Questions
Will Quince Excerpts(4 years, 4 months ago)
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Sarah Champion (Rotherham) (Lab)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
Since mid-March, we have processed about 3.2 million individual universal credit claims. Despite that surge, the system is standing up to the challenge and demonstrating the resilience and scalability that is a fundamental part of its design. From the peak of claims made, less than 1% of claimants have outstanding verification preventing payment. There is no way that the legacy benefit system could have coped with such pressure.
Jeff Smith
Citizens Advice found recently that more than half of people claiming universal credit for the first time during the crisis had experienced hardship and that many did not want to take out a loan because they were afraid of taking on more debt. A system where more than half of people are experiencing hardship is surely a system that is not working, so will the Minister reconsider proposals to end the five-week wait and replace loans with a cash grant?
Will Quince
I do not recognise the picture the hon. Gentleman paints. Universal credit advances are available for those who need them. They are interest free for 12 months and as of next year that will increase to 24 months. We get support to people as quickly as they need it. That is why the payment advance is available, usually within a couple of days.
Dame Diana Johnson [V]
When the job retention scheme is wound down, we will see, I am sure, a second wave of universal credit applications, on top of the 70% increase we have already seen in Hull. With unemployment in Hull forecast to get to about 16%, is it not time now to prepare to remove the five-week wait for universal credit and to make the £20 increase a permanent feature?
Will Quince
The Department has processed an unprecedented number of claims during this period. We have put over £6.5 billion into our welfare system to support those who need it quickly. In terms of what the hon. Lady defines as the five-week wait, nobody has to wait five weeks for a payment. An advance is available, usually within a couple of days, for those who need it.
Sarah Champion [V]
Covid-19 has had a huge impact on manufacturing, particularly the automotive and aviation industries. In Rotherham, McLaren and Rolls-Royce face redundancies. As well as universal credit, what package of support can the Minister put in place to help these highly skilled workers if job losses do come their way?
Will Quince
Any job loss is regrettable, and the Department stands ready to support people who find themselves in that position. The £6.5 billion package included an increase to universal credit of over £1,000, a similar increase to the standard allowance for tax credits and an increase to the local housing allowance. That is over and above measures such as the job retention scheme, the self-employment income support scheme, the £500 million hardship fund via local councils and the £63 million local welfare assistance fund. As the Chancellor said, we will do whatever it takes to support people through covid-19.
Mark Pawsey (Rugby) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
The Government announced in March that anyone reaching state pension age while claiming universal credit will be eligible for a run-on until the end of the assessment period in which they reach state pension age. An estimated 200,000 people will benefit from this measure over the next five years, receiving on average an additional £350 each. I am pleased to confirm that regulations are being laid today to put this measure on a statutory footing.
Mark Pawsey
In November 2017, my constituent Caroll Nash visited my advice surgery and told me about a shortfall of £530 as a consequence of transitioning from universal credit to the state pension. Her claim ended on 17 October in anticipation of her receipt of the state pension from 6 November. At that time, no facility for a part-payment was available, although we did manage to resolve the issue. Can the Minister confirm that, as a consequence of the test-and-learn approach that his Department has taken in respect of universal credit, that claimant’s circumstances today would result in a seamless transition?
Will Quince
I thank my hon. Friend for his question. He is right, and I am pleased to confirm that everyone who reaches state pension age while on universal credit will be eligible for the new run-on payment. That will mean no gap in benefit provision as people transition from universal credit to the pension-age benefit system.
John Nicolson (Ochil and South Perthshire) (SNP)
Richard Thomson (Gordon) (SNP)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
There are now over 200,000 fewer people in absolute poverty compared with 2010, and universal credit is a fundamental part of this Government’s strategy to support people. As a result of the covid-19 pandemic, we have increased the UC standard allowance by around £1,000. An estimated 2.5 million households on UC will benefit from that straightaway, as well as new claimants who will become unemployed or those whose earnings or work hours decrease because of the outbreak.
John Nicolson [V]
I would like to begin by saying that my party’s thoughts are with the victims of the terrible knife attack in Glasgow, and we want to thank the emergency services for their incredible bravery.
According to the Select Committee on Work and Pensions, the DWP last published a full impact assessment of universal credit in 2012, and no formal impact assessment has ever been produced on advance payments. How can we have any idea of the effectiveness or otherwise of universal credit unless assessments are available for scrutiny?
Will Quince
I thank the hon. Gentleman for his question, and I would like to echo his comments; we are certainly thinking of the people of Glasgow at this incredibly difficult time.
We keep all policy under review, but I think Members across the House recognise yet another attack on universal credit and the system. We know that the legacy benefit system simply would not have coped with the unprecedented demand we have seen during covid-19. Universal credit has done a superb job. I hope that when the hon. Gentleman reflects on the role that universal credit has played in ensuring that over 3.2 million people have got the support they need as quickly as possible, he will take a different view about its success.
Stephen Flynn
The Social Mobility Commission has highlighted that, in the last seven years, there has been “little or no action” by the UK Government on a third of its recommendations, including on ensuring that child poverty is not exacerbated by universal credit. Indeed, its damning report criticised DWP for failing to provide a detailed assessment of how benefit changes are tied to these poverty rates. On that basis, how can the Minister possibly know whether universal credit is increasing or decreasing poverty?
Will Quince
The statistics show that full-time work substantially reduces the chances of poverty. The absolute rate of poverty for a child where both parents work full time is 4% compared with 44% where one or more parents are in part-time work. We are supporting people into full-time work wherever possible, for example, through our childcare offer, and universal credit, where work always pays, is a fundamental part of that offer.
Richard Thomson
Research by the Institute for Fiscal Studies has found that, despite the DWP’s temporary increase to universal credit, out-of-work households with children are, on average, £2,900 a year worse off than they would have been without cuts since 2011. Does the Minister understand that, far from doing a superb job, as he says, universal credit is leaving some families in serious difficulty and poverty, and will he commit to looking at the IFS findings?
Will Quince
Our focus today is rightly on what the Government can do to support people financially through these unprecedented times. However, our broader ambition remains to build an economy that ensures that everyone, no matter their background, has opportunities to enter and progress in work where possible, while being supported by the welfare system in their time of need. I just gently remind the hon. Gentleman that, in this financial year, we have spent more than £120 billion on benefits for working-age people.
Stephen Timms (East Ham) (Lab)
I welcomed the Minister’s confirmation last week of no appeal in the universal credit court case that the Department lost, but has he yet grasped the full scale of the problem that that issue has raised? He said in the House last week that, at most, 1,500 people were affected and suggested that 85,000 was a figure that had come from the Opposition. I wonder whether he has now had the chance to see that that 85,000 figure comes from the decision of Lady Justice Rose in the Court of Appeal last week. Did he also see that Lord Justice Underhill said:
“It is not simply a matter of uneven cash-flow…affected claimants will receive substantially lower payments”.
Will Quince
I answered an urgent question on this matter on Thursday for some 45 minutes, as the right hon. Gentleman has mentioned. I confirmed that we would not be appealing the decision of the court. As I made clear to him, I am now considering options to address the issue and will keep the House updated on progress. The 85,000 figure, which he references, from the judgment, came, in my understanding, from the Opposition. It is referenced in the judgment, but it came from the Opposition and we do not recognise those figures.
Neil Gray (Airdrie and Shotts) (SNP) [V]
My hon. Friends have highlighted the range of expert reports out over the past couple of weeks showing that the DWP has no idea how universal credit impacts child poverty. It has done precious little to address it and could have made it worse through systematic cuts, leaving families and children worse off since 2011. The Joseph Rowntree Foundation and Save the Children say that families need an extra £20 a week in the child element of universal credit and child tax credits. Will the Minister ask the Chancellor to make that happen?
Will Quince
As I just said, in 2020-21, we will spend more than £120 billion on benefits for working-age people. We spend more on family benefits than any other country in the G7 at 3.5% of GDP. The measure that the hon. Gentleman raises would alone add another several billion to that bill. We will continue to reform the welfare system so that it encourages work while supporting those who need help. It is an approach that is based on the clear evidence that work offers families the best opportunity to get out of poverty.
Neil Gray
I note that the Minister did not answer my question. There is growing pressure on the UK Government to act here. The former DWP Secretary of State, the right hon. Member for Preseli Pembrokeshire (Stephen Crabb), has called on the Minister and his colleagues to accept the recommendations of the Joseph Rowntree Foundation and Save the Children and to uprate legacy benefits, too. Poverty Alliance’s report today shows that UC is pulling people into poverty rather than acting as a lifeline, so will he agree to convene a cross-party meeting, including the former Secretary of State and a Treasury Minister, to look at ways to make that recommendation happen?
Will Quince
For a start, the hon. Gentleman knows that that is well above my pay grade, but I gently remind him that universal credit will be over £2 billion a year more generous when fully rolled out compared with the legacy benefits system that it replaces. He also fails to recognise the £6.5 billion to £7 billion that this Government have put in place to support people through covid-19. As the Chancellor has said, we will do “whatever it takes”, and this Government are doing that: we are supporting people and this Department is getting that support to those who need it quickly.
Huw Merriman (Bexhill and Battle) (Con)
Geraint Davies (Swansea West) (Lab/Co-op)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
I regularly engage with my counterpart in DEFRA, the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Banbury (Victoria Prentis), on this issue and participate in the food and essential supplies to the vulnerable ministerial taskforce. In addition to welfare changes worth more than £6.5 billion, Departments have worked together throughout this period to ensure support for the most vulnerable. Funding of up to £16 million, including the £3.5 million food charities grant fund, is available so that charities can continue to provide food for those in need.
Geraint Davies [V]
The Food Foundation has found that 5 million adults and 2 million children suffer from food insecurity, which the United Nations defines as insufficient nutritious food each day to avoid hunger. The 2019 national food strategy was shelved because of coronavirus. What plans has the Minister to introduce more money for those most in need so that we do not have growing numbers of people relying on food banks and to prevent millions more from being plunged into hunger in the event of a second wave of coronavirus and a bad or no deal Brexit?
Will Quince
Over and above the £6.5 billion we have pumped into our welfare system, there is the more than £16 million for food redistribution charities, the £3.5 million for the food charities fund, which offers grants of up to £100,000 to support those charities, the £63 million local welfare assistance fund through local authorities that the Prime Minister announced two weeks ago and, of course, the free school meals voucher scheme. However, the hon. Gentleman raises a good point. We want to better understand food insecurity in this country. That is why we commissioned extra questions for the family resources survey. I look forward to looking at the results of that in great detail.
Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)
I congratulate my hon. Friend the Member for Stretford and Urmston (Kate Green) on her promotion to the shadow Cabinet.
The Government say that the aim of the benefit cap is to make people work more hours or move to cheaper accommodation. Neither of those options has been possible during the covid crisis, so what possible justification have the Government got for persisting with that policy, which prevents families from receiving what the Department for Work and Pensions itself believes to be necessary?
Rushanara Ali (Bethnal Green and Bow) (Lab)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
We keep all policy under review. The particular policy change the hon. Lady references would not only cost around £2 billion a year but could not be operationalised now even if we wanted to, because all the focus is rightly on the Department’s response to covid-19. I say to her gently, though, that it is a policy based on fairness; those in receipt of benefits are faced with the same choices in life as those not in receipt of benefits.
Tom Hunt (Ipswich) (Con)
Alison Thewliss (Glasgow Central) (SNP)
Will Quince
We recognise that people face unprecedented financial pressure as a result of covid-19. That is exactly why the Government have invested £6.5 billion in our welfare system, increasing universal credit by £20 per week, increasing tax credits and increasing the local housing allowance.
Mrs Sheryll Murray (South East Cornwall) (Con)
Scott Benton (Blackpool South) (Con)
Will Quince
I thank my hon. Friend for that question, and he is absolutely right. The amount paid in UC reflects as closely as possible the actual circumstances of a household during each monthly assessment period. This allows UC awards to be adjusted on a monthly basis, ensuring that if a claimant’s income falls, they do not have to wait several months for a rise in their UC. UC pays up to 85% of childcare costs to support working parents, compared with 70% in the legacy benefits system.
Mr Virendra Sharma (Ealing, Southall) (Lab) [V]
Universal Credit: Court of Appeal Judgment
Will Quince Excerpts(4 years, 5 months ago)
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Stephen Timms (East Ham) (Lab)
(Urgent Question): To ask the Secretary of State for Work and Pensions if she will make a statement on her Department’s response to the decision of the Court of Appeal of 22 June 2020 in the case Johnson, Woods, Barrett and Stewart v. the Secretary of State for Work and Pensions.
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
I can today confirm my Department’s intention not to appeal against the judgment of the Court of Appeal of 22 June 2020 in the case of Johnson, Woods, Barrett and Stewart v. the Secretary of State for Work and Pensions. The judgment relates to an appeal made in January 2019 by the Department against the High Court decision.
As we told the court, identifying claimants is hard; it is a difficult issue. To date, we are aware of around 1,000 claimants who have disputed their earnings and fall within the relevant cohort. We are looking at how we can further identify people in this group. I stress that many people affected by two salary payments will not suffer a financial loss, as their universal credit award will increase in the following month to balance the reduction. However, we do recognise the budgeting issues that may have been caused, and we are now assessing the remedial options. That is not straightforward—it is not the simple click of a switch—particularly at a time when the Department is focused on meeting the challenges of unprecedented demand for its services.
I hope Members will appreciate that as the judgment was passed down on Monday, it would be remiss not to afford more consideration before we press on, particularly when the Court has not called for immediate action. We will now begin the process of carefully considering possible solutions, and we will keep the House updated as progress is made. There are, however, immediate actions that can be taken. We are already working closely with Her Majesty’s Revenue and Customs to work with employers on how to report their employees’ earnings correctly. HMRC has issued updated guidance for employers which, if followed correctly, will further reduce the small numbers affected.
Stephen Timms
Thank you very much, Mr Speaker, for granting this urgent question.
If a universal credit claimant is in work and is paid monthly, but those monthly payments do not align precisely with universal credit months—for example, if the claimant works for the NHS and gets paid on the last day of every month—that claimant will, from time to time, be paid twice in a single universal credit month. The universal credit computer system treats that claimant as if they had had a 100% pay rise; their benefit is cut, quite likely to zero; they have to reapply for the benefit; and their income is severely disrupted.
One of those involved in this case says that she was more financially stable out of work than in work. Another turned down an NHS job for which she was expertly qualified because she knew that universal credit would wreck her finances. Surely, nobody will dispute the view of the Appeal Court that the policy is “irrational”. I am grateful that the Minister has accepted the inevitable and is not going to be paying out for even more expensive lawyers to appeal the case. Surely the Department should have given up the fight last year, not waited until the Appeal Court reached this conclusion.
May I ask the Minister to tell us more about how many people are affected? I think the Court heard figures of around 80,000. It is a very significant problem for a lot of claimants. In his keeping the House updated—I am grateful to him for his assurance on that—will he tell us much more about the numbers who are affected, and will he fix the universal credit computer system as soon as possible?
Will Quince
I thank the right hon. Gentleman for his question and the constructive way in which he has put it. I will, of course, keep him updated as the Chairman of the Work and Pensions Committee as our work in this area progresses.
The case was before my time as a Minister, but several legal points were considered, and it was on only one of those points that the Department lost. We face and recognise the decision of the Court, and we recognise that some people may face budgeting difficulties. That is why we are working as quickly as we possibly can to identify the solutions and to address the matter in line with the court order.
The scope of this case is limited and we believe the cohort, as I briefly mentioned, to be in the region of 1,500, but I am looking to identify that claimant cohort very carefully. I understand that fewer than 1,000 UC claimants have notified us over the past 18 months that they may be affected by this, and it is important to keep that in the context of the 5.2 million claimants to universal credit.
Mr Mark Harper (Forest of Dean) (Con)
I welcome the Government’s decision to deal with this issue and not pursue a further appeal, but, having been in his position as the Commons Minister responsible for universal credit in the past, I do not underestimate how complicated it is to put in place a fix. As the Minister does so, he should reflect that we should remain clear about the central purpose of universal credit, which is ensuring that everyone is better off in work, and on the fact that it has very flexibly dealt with the huge increase of claimants as a result of covid-19 and will no doubt face challenges later this year.
My specific question is this: we only have a few weeks now until the House rises for the summer, and the Minister may not be able to solve the problem before then, but will he at least update the House before we rise, to set out what further steps he is going to take?
Will Quince
I thank my right hon. Friend for that question. We received the judgment only on Monday, and it is a complex issue, as he rightly recognised and as I believe was recognised by the Court. The fix will not be a simple one, and we are facing unprecedented pressures on the Department at the moment. I will of course continue to keep the House and the Chair of the Select Committee updated as that work progresses.
My right hon. Friend is right absolutely about the universal credit system; it has not been easy over the course of the past six or so weeks. I must say that our people across the DWP have worked incredibly hard, but the system has also worked exactly as it should have done, with around 90% of claimants consistently paid in full and on time—more than 3.2 million people since 16 March.
Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)
I add my thanks to my right hon. Friend the Member for East Ham (Stephen Timms) for securing this important question.
This Government are “irrational” and they are “unlawful”. Those are not my words, but those of Lady Justice Rose, who delivered the verdict in this week’s Court of Appeal decision against the Department of Work and Pensions. Reading that decision, there is really only one question to ask: what on earth were Ministers doing fighting this case for so many years, only to be told by the Court of Appeal something that seems to most people a matter of basic common sense?
If universal credit cannot cope with the date when people are paid and the impact of bank holidays and weekends on that payment date, the solution should always have been to change how the system works, not to persist with something that leaves thousands of people with wildly fluctuating payments from month to month. I have a constituent affected, Mr Speaker, and the first time I saw the problem in my constituency surgery in Stalybridge, I could not believe that the regulations would work the way they do.
This issue goes to the heart of the problems with universal credit. Time and time again we are told by Ministers that universal credit is more flexible, that it is more agile and that it can be adapted to meet new requirements and respond to problems that are identified. Yet when it comes to making seemingly simple changes such as these, claimants are faced with a rigid, unbending, uncaring response.
The Government always seem unwilling to listen to the experiences of the people who actually use the system. I ask the Minister, first, how much public money has the Department has wasted fighting the case? Secondly, I welcome the Minister’s statement that the Government now accept this decision, so how, and how quickly, will the universal credit regulations be changed to accommodate the ruling? Thirdly, do the Government accept that four single mums should not have to go to the Court of Appeal to be listened to by their own Government? Will the Department acknowledge that there is an overwhelming need to recognise the lived experiences of people who are actually in receipt of universal credit and review a whole range of policies, including the five-week wait, the frequency of payments and how the initial assessment period works, so that we can then get a social security system that is fair and effective and works the way that it should?
Will Quince
I thank the hon. Gentleman for his question. Each and every judicial review has its own grounds for being brought and is looked at on a case-by-case basis, and with each JR, the Secretary of State, Ministers and officials look closely at the grounds and respond accordingly. I gently point out to him that the Court of Appeal accepted our interpretation of the UC regulations. However, the point that some people may face budgeting issues is why we are acting.
I am disappointed, if not surprised, that the hon. Gentleman has taken the opportunity to launch yet another attack—a baseless, unwarranted and unfounded attack—on universal credit. We all know, and he knows, the truth: the system has worked incredibly well and Labour’s broken legacy benefits system simply would not have coped with the unprecedented demand that we have seen during covid-19. Universal credit has passed that test with flying colours. There have been over 3 million claims, and I am so proud of our DWP employees and the universal credit system. It is time that Labour got behind this Government and universal credit and worked with us to make the system even better.
Mr Richard Holden (North West Durham) (Con)
I echo the words of my right hon. Friend the Member for Forest of Dean (Mr Harper) and welcome the decision by the Government not to appeal this judgment, because this has also affected constituents in North West Durham. I also welcome the fact that the Government have invested an extra £7 billion into the welfare system to support people during the coronavirus pandemic, which has clearly strengthened the safety net for a large number of my constituents. Will the Minister confirm how many families across the country have benefited from this extra support through the universal credit system at this difficult time?
Will Quince
I thank my hon. Friend, who is a firm champion of his constituents in this place. He is absolutely right that we have introduced a series of changes during the covid-19 pandemic, targeted at those facing the most financial disruption, that could be operationalised as quickly as possible, ensuring that people get the support that they need. He is right that that is close to £7 billion in the welfare system alone and it will benefit approximately 10 million families.
Neil Gray (Airdrie and Shotts) (SNP) [V]
I pay tribute to the four women who brought this case and all those who supported them, including the Child Poverty Action Group, and I thank the Work and Pensions Committee Chair, the right hon. Member for East Ham (Stephen Timms), for securing this question. This really is damning for the Government and successive Secretaries of State, who have belligerently fought this in the courts. Why should women and disabled people have to go to court to get basic fairness? I am sorry that the Secretary of State is not here to respond.
The issue of people getting paid salaries on irregular but predictable days of the month is something that the Scottish National party has been raising as an issue with UC for years, and the Court of Appeal has ruled that it was irrational for the Work and Pensions Secretary not to act to resolve the problem. Why should claimants lose UC support simply because of the day of the month that they are paid? That question has not been answered. As part of the process of accepting this ruling, will the Minister at the very least ensure that the predicted 85,000 people thought to be directly impacted have their situations resolved? Will the Minister work with the Chancellor to finally add flexibility to the monthly assessment period to resolve this issue and the five-week wait, which is also impoverishing people?
Will Quince
I thank the hon. Gentleman for his question. I stress that we received the judgment only on Monday and it is a hugely complex issue. That is recognised by the court—it is not a simple fix, as the hon. Gentleman points out. He knows that we are facing unprecedented demand, because he has raised this question with me before. I said that I will keep the House and the right hon. Member for East Ham (Stephen Timms), the Chair of the Work and Pensions Committee, updated as we progress.
On the hon. Gentleman’s points relating to assessment periods, there are some aspects of the universal credit system that are fundamental to its design and are deliberately designed to achieve its original objectives—to mirror the world of work. This includes the mechanism of a monthly assessment period and, of course, the initial assessment period at the beginning of a claim. It is important to stress that over 75% of people in this country are paid monthly and the majority of countries in the European Union also have systems that operate on a monthly basis.
Jerome Mayhew (Broadland) (Con)
In March alone, about 1.24 million new applicants relied on the universal credit system to be able to process their claims and pay them within days vitally important sums of money to help them live. While the case has properly highlighted about 1,500 outlier cases, does my hon. Friend agree that it was the Government’s decision to invest in an automated digital system that does not require manual intervention by DWP officers to carry out individual calculations of the amount of an award that has allowed this to happen?
Will Quince
My hon. Friend is absolutely right. It was this Conservative Government who introduced our modern, dynamic, agile new benefits system, tailored for the claimant’s personal circumstances. The fact it is online means we have been able to process the claims of more than 3 million people, getting them the support they desperately need as quickly as possible. Just imagine for a moment, Mr Speaker, the chaos that would have ensued had we been relying on Labour’s broken legacy benefits system alone. Thank heavens for universal credit.
Jim Shannon (Strangford) (DUP)
I have had many similar cases over the years, so I am really pleased first to see the court decision, but secondly to see the Government and the Minister in particular responding in a very positive fashion. The judge referred to common sense; it is about not just common sense, but the practical effects on families at a time of financial stringency over Christmas and the new year. Can the Minister confirm whether he will retrospectively correct the mistake, which quite simply boggles the mind and common sense? He referred to solutions, and I can give him one very quickly. Will those who have had to take out loans to cover the month where they lost full payment receive help to pay the interest on those loans? Some took out loans with tremendously large interest rates. It is important that people have help right now.
Will Quince
I am happy to meet the hon. Gentleman to discuss those cases in more detail. As I said, I am absolutely committed to finding a fix. The court has not mandated any specific fix or action, but I am committing us to finding a solution, and I will do all I can to do so. The court dismissed the appeal on the grounds of discrimination. He mentioned families. The Department is absolutely clear in its firm support for all claimants. We continue to support families with things such as childcare costs, and I stress that childcare support under universal credit is far more generous than the old legacy benefits system, with the ability to claim back 85%, as compared with 70%. I would be very happy to meet the hon. Gentleman to discuss those concerns in further detail.
James Sunderland (Bracknell) (Con)
Many of my constituents in Bracknell work in the creative arts sector. We heard earlier about the millions of families who benefited from universal credit during the pandemic, but will the Minister please assure me that the minimum income floor will be maintained for this important area of the economy for the foreseeable future?
Will Quince
I thank my hon. Friend for that question, and he is right to raise the issue, because I know that those who work in the creative arts are particularly exercised and concerned by it. The issue is covered by the Minister for Employment, my hon. Friend the Member for Mid Sussex (Mims Davies). The minimum income floor rules are suspended at the moment. I will put the Minister for Employment in touch with my hon. Friend and ensure that his concerns are raised, but he has rightly put them on record.
Marco Longhi (Dudley North) (Con)
The universal credit system has come under unprecedented pressures for obvious reasons during the past few weeks. Having interrogated my office systems, I have encountered only 10 inquiries relating to universal credit, which were largely inquiries wanting more information. That is out of thousands of other cases that my office has received. Does my hon. Friend agree that that is in fact indicative of a system that is both resilient and working very well?
Will Quince
My hon. Friend is absolutely right: universal credit is standing up to the challenge during this unprecedented time. The digital approach of universal credit, as he rightly points out, has allowed us to get support to more than 3 million people over the past three months, which simply would not have happened under Labour’s legacy benefits system.
Dr Ben Spencer (Runnymede and Weybridge) (Con)
I thank the Minister for his answers today. It is important to reflect on the fact that the computer system has been able to deal with an unprecedented crisis in terms of people claiming UC, which the legacy benefits system just would not have been able to cope with, but with automation comes inflexibility. Could he say whether this is a case of “computer says no” or “computer says not yet”?
Will Quince
I thank my hon. Friend for that helpful question. My universal credit programme colleagues may well have their heads in their hands as we speak, depending on what I now commit them to, but I am absolutely determined to find a fix to this issue.
Yes, a number of items are in the pipeline, ready to be changed on universal credit. Despite criticism from Opposition Members, we have made significant changes to universal credit, and much more is to come, such as the roll-on of legacy benefits next month, which will benefit people to the tune of £200. Those are all in the pipeline to be done, and this will be added to that. I will try to expedite it as much as I possibly can.
Margaret Greenwood (Wirral West) (Lab) [V]
Many people on low incomes have suffered real hardship as a result of the Government’s failure to address this fundamental flaw in universal credit. I pay tribute to the women who took the Government to court to seek justice on this matter, but they should not have had to do so. A number of my constituents have been affected. One is a single working mother who has fallen into arrears with her rent, has seen an increase in her anxiety and depression, and has had to turn to food banks and local welfare assistance as a result. I wrote to the Secretary of State and Ministers several times about this last year, so will the Government now look at the cases of my constituents and all those affected as a matter of urgency, and pay them the money that they should have received?
Will Quince
I am certainly happy to look at the cases raised by the hon. Lady. I have said clearly that I am determined to find a fix. That will involve looking at numerous solutions, identifying the cohort of people and the fix, and putting it into action. That may take a little time but, as I say, I am determined to find that solution. I am happy to meet her when we are able to do so to look at those individual cases she raises in more detail.
Selaine Saxby (North Devon) (Con)
Three million people have claimed universal credit since the beginning of the coronavirus pandemic, which is a huge success. I thank the Department for Work and Pensions team who enabled that. Indeed, the robustness of the computer system behind universal credit has facilitated rapid and easy access to welfare support for so many additional claimants. However, does the Minister agree that, on occasion, human intervention when the computer does indeed say no might help prevent cases like those falling through the cracks?
Will Quince
I thank my hon. Friend for her helpful question. The system is largely automated, and that brings huge benefits—that is why we have been able to deal with those claims—but, inevitably, that also means that issues come up that we need to address. This is one of those issues and, yes, in some cases, they require a manual intervention. My first instinct is to look at whether we can find an automated fix, but we will of course look at manual fixes, if that is necessary. I know that my hon. Friend is on the Select Committee and, if she has any particular ideas in that regard, I am happy to meet her to discuss them.
Jessica Morden (Newport East) (Lab) [V]
The Court of Appeal ruling rightly draws attention to one of the problems with the universal credit system, but will the Minister also address why under-25-year-old single parents receive less on universal credit than they would have done under legacy benefits? I have lobbied Ministers with the Newport GoGirls group on that—it is unfair and it needs to change.
Will Quince
I did not entirely catch the question, but I think the hon. Lady is referring to the disparity between universal credit and legacy benefits. I would say that this Department acted at incredible pace to operationalise and bring in measures as quickly as possible to help those who have been most financially disadvantaged as a result of covid-19. That is why we did it through the vehicle of universal credit. Legacy benefits will be reviewed and uprated ahead of April 2021 as per usual.
Nigel Mills (Amber Valley) (Con) [V]
Is there any merit in having another look at the timing of assessment periods, such as having them generally fixed to the end of the month to remove some of the issues that seem to keep arising?
Will Quince
It is something I am exploring as I look at our different options. My hon. Friend is an experienced member of the Select Committee, and I am happy to work with him and to hear his ideas. It is important to stress that for the majority of the circa 5 million claimants, the date of their assessment period works well. Changing assessment periods to align with pay dates is problematic. Nevertheless, everything is on the table, and I am looking at all options. The court judgment was very recent—only on Monday—so I hope that the House will give me the time and space to look at this in the granularity of detail that it requires.
Ronnie Cowan (Inverclyde) (SNP) [V]
This is, in truth, just the latest failing in a pernicious and punitive welfare system. When Beveridge wrote his famous report in 1943, he said:
“A revolutionary moment in the world’s history is a time for revolutions, not for patching.”
As we attempt to enter a post covid-19 world, will the UK Government give their support to the Scottish Government and ensure collaboration from HMRC and DWP as we seek to run basic income pilots in Scotland?
Will Quince
At the heart of this problem is an interaction between employers and HMRC. If more employers followed the very clear and beefed-up guidance from HMRC, there would be far fewer people affected. That is why we are beefing up our work with HMRC colleagues and counterparts, to ensure that the guidance is absolutely clear. If employers follow it and report the correct dates, this issue simply will not occur.
Andrew Griffith (Arundel and South Downs) (Con)
One key test of a benefits system must be the dignity that it confers on the recipient. Does the Minister agree that there is great dignity in an automated solution that is modern, simple and straightforward and that there is potentially a role for employers to align their dates with a system that is in the best interests of their employees?
Will Quince
I thank my hon. Friend for that question. He is right. The universal credit system and tens of thousands of dedicated DWP staff have processed an unprecedented 3 million claims since mid-March. As I have said before and will keep repeating, Labour’s legacy benefit system, based on paper forms and a lot of face-to-face interaction and meetings, simply would not have coped with the pressures of covid-19. It has not been easy, and our people have had to work incredibly hard, but the important thing is that the system has held up, and people have been able to make their claims online, in their own time and in their homes. We have not seen the queues outside jobcentres that there have been in other countries, and that is because we have universal credit, and this Government invested in it.
Mary Kelly Foy (City of Durham) (Lab)
I would like to congratulate these four women on their victory for social justice. It is shameful that the Government have pursued this case to the Court of Appeal. These were working women who were paid a regular monthly salary. Welfare rights experts described them as perfect candidates for universal credit. Does the Minister agree that a system that does not work for people like them does not work at all?
Will Quince
I thank the hon. Lady for her question, but I do not recognise the picture she paints. As I said earlier, judicial reviews are brought for all sorts of reason. Like her, I pay tribute to the ladies involved in bringing this case, but I point out gently to her that the Court of Appeal accepted our interpretation of the UC regulations. Nevertheless, we accept and note that some people may face budgeting difficulties. That is why I have committed to take this action.
Robert Halfon (Harlow) (Con) [V]
Will my hon. Friend congratulate and thank the staff at Harlow jobcentre on all the work they have been doing on jobs and universal credit at this difficult time? I have had communication with a single parent in my constituency who says that if she puts her child into childcare, she may end up earning more, but then universal credit will cut £400, so it is better to be with her child. In essence, she is saying that she is worse off if she goes to work under universal credit. Will my hon. Friend look again at helping single parents, to ensure that it is better for them financially to work than stay at home?
Will Quince
I thank my right hon. Friend for his question. He is a firm champion of universal credit and the benefits of it, and I certainly join him in paying tribute to all the staff at Harlow jobcentre who have done incredible work during this most difficult and unprecedented time. He raises an important point about childcare. One of the fundamental principles of universal credit is that work should always pay. That is why, under universal credit, childcare is at a higher rate of 85% as opposed to 70%. I will look at the case that he raises in detail and meet him at our earliest possible convenience.
Neale Hanvey (Kirkcaldy and Cowdenbeath) (SNP) [V]
While I welcome the Government’s decision not to draw this matter out further, it seems that it is always someone else’s fault. This week in the Court of Appeal, the Department could not offer a single reason for its flawed and, in the words of Lady Justice Rose, “irrational” approach to universal credit’s monthly assessment period. This is not the first time that this Government have been found wanting, only to be dragged through the courts to do the right thing. If they will not tell the courts, the Minister must advise the House: what exactly was their alleged defence this time?
Will Quince
I gently suggest—[Interruption.]—as my right hon. Friend the Member for Forest of Dean (Mr Harper) says from a sedentary position, that the hon. Gentleman reads the judgment, because the Court of Appeal accepted our interpretation of the universal credit regulations. Nevertheless, we accept that there may be people who face budgeting pressures, and that is why we are committing to take this action.
Debbie Abrahams (Oldham East and Saddleworth) (Lab) [V]
Women and disabled people have had to resort to law to get the Government to listen to the unfairness and the hardship that universal credit creates. Danielle, a dinner lady, was losing about £500 a year as a result of being paid on the last day of the month. She has ended up in debt and behind with her rent, and she does not know how she will recover. If the computer system is as agile as it is meant to be, why has this, and so many other issues, occurred? Why is there a difference in the 1,000 people that the Government say have been affected, as opposed to the 85,000 people whom the court has identified?
Will Quince
I will certainly look at the individual case that the hon. Lady raises, but I would gently say that it is such a shame that the Labour party—and she is no exception to this—is constantly so negative about universal credit. It is a modern, flexible, personalised benefit, which reflects the rapidly changing world of work. Let us remind ourselves of Labour’s position, which is to scrap universal credit with no plan whatever with which to replace it. That seems pretty foolish to me, but do not take my word for it; the Institute for Fiscal Studies has slammed Labour’s pledge as uncosted and
“unwise…expensive, disruptive and unnecessary.”
I could not have put that better myself.
Alexander Stafford (Rother Valley) (Con)
More than 1 million people have claimed universal credit since the beginning of the coronavirus pandemic and have been able to access an advance first payment, giving them access to support in just a few days. Does my hon. Friend agree that this has been vital for dealing with hardship during this difficult period in my constituency of Rother Valley and across the whole of Yorkshire?
Will Quince
I thank my hon. Friend for that question. He is right. We have had more than 3 million claims to universal credit since the middle of March and more than 1 million applications for advances, getting support to people who need it quickly, often within just a couple of days. That support is important, but I would stress that, for the cohort coming on to universal credit at the moment, the take-up of advances is lower, which often reflects personal circumstances. Therefore, taking an advance is not for everybody. It is interest-free and repayable over 12 months—as of next year, that goes up to 24 months. We are making the changes, but I agree with him that we are supporting people who need it the most in a timely manner.
Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
Understandably, the Minister wants to talk a lot about the people who have had to claim universal credit in recent months. I, too, pay tribute to the staff at Hackney jobcentre, who have worked very hard to make sure that people in need get it, but there is nothing wrong with being critical of this big failure by the Department. He said that 1,000 people have complained about mistreatment, but the court identifies 85,000 people who could be affected. Can he assure us that work is going on to identify them—perhaps through an algorithm with a human element added if something unusual is thrown up—so that people are treated fairly and do not have to complain, and the Department acknowledges its mistake and seeks them out?
Will Quince
I thank the hon. Lady for her question and join her in paying tribute to the staff at Hackney jobcentre who have done an incredible job under the most difficult of circumstances. We will, of course, be doing a deep-dive exercise into the cohort that is affected. I do not recognise the 85,000 figure. If I am honest, I think that that may be a figure that came from the Opposition, but I will look at that in detail. I gently point out to her that we now spend more than £100 billion a year on benefits for working-age people—that is more than £100,000 million pounds. We will continue to reform our welfare system to ensure that work always pays, and universal credit is at the heart of that.
Bob Blackman (Harrow East) (Con) [V]
If you knew the broadband experience in north London, Mr Speaker, you would know why I need to wear this headset.
One advantage of the universal credit system is that it takes input from claimants that would otherwise have to be re-input several times, resulting in the correct level of benefit, but one problem is that it does not deal with the exceptions. Could my hon. Friend consider a system whereby, when people suddenly see huge increases in their pay and therefore a reduction in benefits, an alert is triggered to allow someone to look at what is going on and correct the position?
Will Quince
I thank my hon. Friend. That is a helpful suggestion and certainly one that I will be exploring. He is right to extol the virtues of real-time earnings information. Among many other reasons, it is what makes universal credit much superior to the legacy benefits system, because we are able to ensure that as people’s income fluctuates their support can fluctuate too. His suggestion is a good one, and it is one that I will be looking at along with a suite of numerous other measures no doubt. I would be very happy to meet him to discuss it in further detail.
Hywel Williams (Arfon) (PC) [V]
I am glad of the court’s sensible judgment and the Minister’s response, but this case highlights the flaws in UC, the need to adapt it to particular circumstances and the difficulties in doing so. With one third of Welsh households to receive UC by 2023, will he take this opportunity to respond to the Senedd’s Equality, Local Government and Communities Committee’s recommendations and look to devolve aspects of social security administration to Wales?
Will Quince
That is probably a letter that has gone to the Secretary of State, as opposed to me, and is well above my pay grade. I gently suggest to the hon. Gentleman that UC is good news for the whole UK, including, of course, Wales. I remind him that, once fully rolled out, it will be £2 billion more generous a year than the legacy benefits system it replaces. About 1 million disabled households will be £100 per calendar month better off, and claimants will have access to about £2.4 billion in benefits that previously went unclaimed under the confusing and clunky Labour legacy benefits system.
Steve McCabe (Birmingham, Selly Oak) (Lab)
The Minister is right to say that this judgment did not rely on an interpretation of regulation 54, as did the earlier one, but will his solution necessitate an interpretation based on the real income that people earn, as opposed to the false one that the Department has been assuming because of the technical judgment it has made about the assessment period and earned income?
Will Quince
The assessment period is fundamental to the design. [Interruption.] It is not fundamentally flawed. A small number of people do have fluctuations, which is why we are looking to take action in this area. We recognise that there is an issue, but it is important that it is kept in the context of 5.2 million UC claimants. I would hazard a guess, because this is certainly the case for my inbox, that despite there being more than 3.2 million new UC claimants, Members’ postbags are not full of complaints about UC. That is because the system is working very well.
Chris Stephens (Glasgow South West) (SNP) [V]
The Department’s assessment period has resulted in one of my constituents earning £846 a month with a double calculation. As a consequence, they have now received a council bill that has increased from £36 a month to more than £200 a month. Will the Minister also have discussions with local government to ensure that claimants do not have bills that they simply cannot afford due to the Department’s errors?
Will Quince
I thank the hon. Gentleman for that question and I am happy to look at that case in detail. He is right to raise the point about passported benefits, and I would be happy to meet him to discuss it in further detail.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
Newcastle was a pathfinder for UC, but the Minister seems to have learnt nothing from the experiences of my constituents. Having dealt with their experiences over years on these issues, I know not only the financial impact, which is devastating enough, but the impact on claimants’ trust in government, in our welfare system and in technology itself. I find his lack of contrition astounding. Will he not apologise and learn the lessons of this mistake?
Will Quince
UC is working and it is working well. The point I make to the hon. Lady is that we constantly and consistently listen to Members from across the House, stakeholders and members of the public who raise issues associated with UC. It is a new system and we have made significant changes. We have pumped additional billions of pounds into this system to improve it. Instead of scaremongering on UC, which the Opposition continue to do and which is the biggest thing that damages public trust in our system, I suggest they work with this Government to improve a system that is already working well, in order to make it even better.
Mr Speaker
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 three minutes.
Oral Answers to Questions
Will Quince Excerpts(4 years, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Richard Graham (Gloucester) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince) [V]
Since mid-March, we have processed around 2 million universal credit claims. Despite that surge, the system is standing up to the challenge and demonstrating that resilience is part of its design, with over 90% of new eligible claimants expected to be paid in full and on time. There is no way that the legacy benefit system would have been able to cope with such pressure.
Richard Graham [V]
I am grateful to all the jobcentres, and particularly the one in Gloucester, which has done a remarkable job of registering so many of my constituents. Some people discover when they register that they lose child tax credit before any new benefits are payable. What can my hon. Friend the Minister do to help provide our constituents with better tools to assess what will happen and whether they will be better or worse off when they first register for universal credit?
Will Quince [V]
I thank my hon. Friend for his question and for rightly praising DWP staff for the work they are doing. That issue has been raised by a number of colleagues, and I am looking at data and exploring options. We have been working closely with Her Majesty’s Revenue and Customs to encourage people to check their eligibility before making a claim and ensure that tax credit claimants understand that when they have claimed UC, their tax credits will end, and they cannot return to legacy benefits.
Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op) [V]
We believe that people need more support during this crisis, but we acknowledge and welcome the changes that the Government have made. Those include increasing the core amount of universal credit by £1,000 a year, but that rise is only for 12 months. If the Government believe that this level of support is necessary during lockdown, why do they believe that people will need less money when lockdown ends and the normal costs of living will apply? Surely it is inconceivable that anyone still unemployed by March next year could see their benefits being cut.
Will Quince [V]
I thank the hon. Gentleman for his question and welcome him to his new position. As he knows, we have announced measures that can be quickly and effectively put in place that will benefit as many disadvantaged families as possible who are currently facing financial disruption. We at the DWP have been under huge increased demand, and we have prioritised the safety and stability of our benefits system overall. All things of this nature will be kept under review, but at the moment, as he rightly points out, the funding has been secured for a 12-month period from Her Majesty’s Treasury.
Mr Speaker
Can we speed up questions and answers, to help us get through the list? We now go over to Neil Gray in Scotland.
Neil Gray (Airdrie and Shotts) (SNP) [V]
The two areas of universal credit causing the greatest hardship are the five-week wait and the two-child cap—both need scrapping. Taking a UC advanced loan means that payments will be lower than the already impossible to live on levels, so why will the Government not look at the idea of making the advance loan a grant when a person has been confirmed as eligible for UC? That stops the fraud excuse. The only barrier is political will.
Will Quince [V]
I thank the hon. Gentleman for his question. As I have said, we have announced measures that can be quickly and effectively put in place that will benefit as many disadvantaged families as possible who are facing financial disruption. We are under huge increased demand, and I have had to prioritise the safety and stability of the benefits system overall and put that above any structural change. I will always prioritise ensuring that people get their money in full and on time, over and above system change.
Sarah Jones (Croydon Central) (Lab)
Ian Byrne (Liverpool, West Derby) (Lab)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince) [V]
In these uncertain times, we would like to be absolutely clear that no claimant has to wait five weeks for a payment. Advances are available, enabling claimants faster access to their entitlement. Since mid-March, we have issued more than 700,000 advances to claimants who felt that they could not wait for their first routine payment, with the majority receiving money within 72 hours.
Sarah Jones [V]
In Croydon, all our food banks have seen a massive increase in demand. In fact, the number of food banks and soup kitchens has quadrupled in Croydon since the covid crisis began, with organisations such as the British Bangladeshi Society and the Fieldway Family Centre stepping up to the plate. One of the main reasons they cite for this need is the five-week wait for universal credit. What assessment has the Minister made of the number of people forced to use food banks because of that five-week wait? I ask him again: why can he not replace the emergency loan with a grant, so that people do not have to pile debt on debt?
Will Quince [V]
I thank the hon. Lady for that question. Over and above answers to previous questions, I would stress that non-repayable advances could not be implemented without significant development of the UC system and would require measures that have been previously announced to be deprioritised. In the light of current events and the huge pressure on our system, the Department’s focus is firmly on ensuring that new and existing claimants continue to receive their payments on time. We do not have the capacity to look at that kind of structural system change.
Ian Byrne [V]
Over the past seven weeks, the demand on Liverpool’s local welfare scheme for crisis payments for food and fuel has increased by 164% compared with this time last year. Will the Minister consider easing the plight of many living through this crisis by doubling child benefits and lifting the benefit cap, as requested by the Food Foundation?
Will Quince
I thank the hon. Gentleman for his question. We have increased the universal credit and working tax credit standard allowance by more than £1,000 a year, and we have increased local housing allowance rates, putting an average of £600 into people’s pockets. On the benefit cap, it is important to stress that those with sustained work records may benefit from a nine-month grace period in relation to the cap. Exemptions continue to apply, and I feel many people would agree that the equivalent of £24,000—or £28,000 in London—is fair and reasonable.
Stephen Timms (East Ham) (Lab) [V]
From the 1940s on, we had a social security system based on handwritten forms that was capable of making the first regular benefit payment within a few days of a person applying; now, after the Government have spent several hundred million pounds on what we were assured was agile technology, that job takes five weeks. That long delay is the main reason why people on universal credit are so much more likely to need a food bank than people on the legacy benefits. Surely the Minister must recognise that that problem must be fixed.
Will Quince
I thank the right hon. Gentleman, the Chair of the Work and Pensions Committee, for his question. He knows that we introduced an agile, dynamic online system because the legacy benefits system, which was largely paper-based, was fraught with issues and errors. That is why we moved over. Notwithstanding the points that he has made, I stress that the previous, paper-based system, which relied on face-to-face contact, would not have coped in this situation. It is because of universal credit that we have been able to process more than 2 million claims since mid-March.
Derek Twigg (Halton) (Lab)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince) [V]
Ministers and officials have had regular discussions with food bank providers and other stakeholders during this time. Flexibility and innovation in local jobcentre arrangements for signposting to food banks, within the parameters of the existing guidance, is encouraged during the covid-19 outbreak.
Derek Twigg [V]
[Inaudible.] In my constituency, the jobcentre is not referring people to the Widnes food bank. It is important that the Minister intervenes and ensures that referrals do take place so that the people who need help get it quickly.
Will Quince
I think I did, Mr Speaker. I gently point out to the hon. Gentleman that jobcentres are working with local partners to signpost claimants to the support available in their local area. The Trussell Trust and the Independent Food Aid Network are putting in place appropriate solutions where food banks are in operation. I stress that local councils in England will be able to use funding from the new £500 million local hardship fund to provide further discretion to support vulnerable people.
Danny Kruger (Devizes) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince) [V]
Dedicated DWP staff continue to be available in jobcentres throughout the country. For claimants with the most complex needs, if we are unable to help by phone or online, face-to-face support is still available. In addition to that, the Help to Claim service is undertaken on our behalf by Citizens Advice and Citizens Advice Scotland.
Danny Kruger [V]
I thank the Minister for that answer and congratulate him, the Department and the original designers of universal credit on their success in registering so many new claimants. As he knows, the original idea was for a universal support system, alongside UC, to help people with multiple and complex needs. Will the Minister consider reviving that idea to help the most vulnerable people and make the UC system work better?
Will Quince
I thank my hon. Friend for his question. I know that he shares my passion for supporting the most vulnerable and disadvantaged in our society, who often have complex needs, which is exactly why we introduced Help to Claim to support people who need support to access the welfare system. It has been a huge success over the past year, helping more than 250,000 people. I am pleased to say that we have commissioned the service for a second year.
Robert Halfon (Harlow) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince) [V]
I have regular discussions with the Minister for children and families, my hon. Friend the Member for Chelmsford (Vicky Ford), and others on mitigating the effect of covid-19 on vulnerable groups. We are providing them with support as they implement the free school meals voucher system, and we have increased universal credit and working tax credit by more than £1,000 a year over the next 12 months, which will benefit more than 4 million households.
Robert Halfon [V]
Given that we know that nearly 90% of vulnerable children are not at school or learning and that there are new frontiers of vulnerabilities in children suffering from possible domestic abuse and mental health issues, what further work, other than that which the Minister has mentioned, is the Department doing specifically with the Department for Education to help those children learn and to give them and their families proper financial support?
Will Quince
I thank my right hon. Friend for that question. We are committed to ensuring the safety and protection of vulnerable children and young people, particularly during the current period, and that is why we have invested an extra £6.5 billion in our welfare system. I know that he has huge expertise in this area. In addition to my work with the Minister for children and families, my hon. Friend the Member for Chelmsford (Vicky Ford), and others across Government, I would be very happy to work with him to explore other ways that he thinks we may be able to support vulnerable children.
Navendu Mishra (Stockport) (Lab)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince) [V]
In April, in response to covid-19, we introduced increased local housing allowance rates for housing benefit and universal credit claimants to the 30th percentile of local rents, providing additional support for private renters. This significant investment cost almost £1 billion and ensures that more than 1 million households will see an increase, on average, of £600 per year.
Navendu Mishra [V]
Thousands of families in Britain are at risk of being pushed into homelessness as a result of this crisis. What urgent steps is the Minister taking to ensure that the most vulnerable will not lose their homes as a result of the covid-19 outbreak, at a time when there is no option to find cheaper accommodation to move to?
Will Quince
Over and above the measures introduced by the Ministry of Housing, Communities and Local Government, we have increased universal credit and working tax credits by more than £1,000 a year, and increased the local housing allowance rates. In this respect, in southern Greater Manchester, which covers Stockport, the two-bedroom LHA has been increased by £76 a month—£900 a year—and the four-bedroom rate in the hon. Gentleman’s constituency has increased by over £200 a month. That extra £6.5 billion going into our welfare system is supporting the most vulnerable and disadvantaged in our society.
Shaun Bailey (West Bromwich West) (Con)
Draft Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2020
Will Quince Excerpts(4 years, 8 months ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
I beg to move,
That the Committee has considered the draft Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2020.
It is a pleasure to serve under your chairmanship, Ms McDonagh. I am pleased to introduce this draft statutory instrument, which was laid before the House on 2 March.
The draft order reflects the conclusions of this year’s annual review of the automatic enrolment earnings thresholds required by the Pensions Act 2008. The review considered the earnings trigger and the qualifying earnings band for the tax year 2020-21. The earnings trigger determines the point when a qualifying worker becomes eligible to be automatically enrolled into a qualifying workplace pension. The qualifying earnings band determines the earnings upon which workers and employers pay contributions into a workplace pension. The draft order sets a new lower limit for the qualifying earnings band and is effective from 6 April 2020.
The earnings trigger is not changed within the order; it remains at the level set in the automatic enrolment threshold review 2014-15, so no further provision is required. Similarly, the upper earnings limit is not changed within the order; it remains at the level set in the automatic enrolment threshold review 2019-20, so no further provision is required. I am satisfied that this draft order is compatible with the European convention on human rights.
Today’s debate is about a technical element of the automatic enrolment framework, which as a legal necessity that we need to have in place for 6 April 2020. The decision to maintain the earnings trigger at £10,000, and to maintain the alignment of the qualifying earnings band with those for national insurance contributions, maintains simplicity and consistency.
Statutory Sick Pay and Protection for Workers
Will Quince Excerpts(4 years, 8 months ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
First, let me thank all Members from across the House who have taken the time to attend this important debate, and to speak about their concerns in such a constructive and collaborative way. I will try to answer as many of the numerous points raised as possible, but I stress that—as hon. Members know—my door is always open and my phone is always on. If Members have urgent cases, please reach out to me and other Ministers on the Treasury Bench; we will look to take the appropriate action, as necessary.
As my right hon. Friend the Chancellor made clear yesterday, we will do whatever it takes to support people, jobs and businesses, and to help people to protect their loved ones. This includes the measures we are taking on statutory sick pay, in order to ensure that everybody is supported to do the right thing and follow the Government advice on self-isolation. We must come together to fight this virus and protect the most vulnerable, and statutory sick pay is part of our welfare safety net and our wider Government offer to support people in times of need. That is why we are ensuring that our welfare safety net provides the right level of support in these exceptional times. We have extended statutory sick pay to those who are self-isolating, in line with the latest Government health guidance, and the upcoming emergency Bill will make statutory sick pay payable from day one instead of day four. This is the right thing to do to ensure that eligible individuals are supported to stay at home in self-isolation, protecting themselves and others.
As my right hon. Friend the Chancellor set out, the Government will stand behind businesses, both large and small. As a DWP Minister, I know that the best way to support people is through protecting their jobs. Small and medium-sized businesses are the backbone of our economy, and we will support them to implement these measures. Employers with fewer than 250 employees will be able to reclaim up to two weeks’ statutory sick pay paid for sickness absences relating to the coronavirus—a measure that could help up to 2 million businesses. These changes will help to provide certainty and security for individuals and businesses affected by coronavirus.
Statutory sick pay is just one of the Government’s offers of support and protection. The safety net also extends to those who are self-employed or who work in the gig economy. Workers on zero-hours contracts or in the gig economy may be eligible for sick pay and should check with their employers, but we are here to support those who are not eligible, and they can make a claim for universal credit or contributory employment and support allowance. Last week, we made changes so that the seven waiting days for employment and support allowance for new claimants affected by coronavirus or required to self-isolate will not apply. That means that ESA is payable from day one, without the need to provide medical evidence and without the need to attend a work capability assessment. Those required to self-isolate or who are ill with coronavirus can receive up to a month’s advance from day one, with no need to physically attend a jobcentre—that point was raised by Opposition Members. Any individuals affected by coronavirus will have their work search and work availability requirements switched off, and affected self-employed claimants will not have a minimum income floor applied during this period.
A number of specific points have been raised, and I will try to cover as many as possible. The hon. Member for Sefton Central (Bill Esterson) raised the important point about the communication of changes. Everything is on gov.uk, and Departments also use social media, such as Twitter, to highlight changes. There are also daily press conferences where updates on coronavirus are given by the Prime Minister, and he is increasingly being accompanied by another member of the Cabinet. However, I take the hon. Gentleman’s point that communications in times like this are incredibly important, and I will certainly feed back to the Cabinet Office that where improvements can be made to Government communications, particularly for businesses—that is the point he made—that should be done.
Bill Esterson
I am grateful for that answer, and I know the Minister will do his best to carry out what he just promised. Will he also make sure that that information comes to us and to local authorities in a timely fashion, as we are often in a position to get it out to a great number of people in a short space of time?
Will Quince
I thank the hon. Gentleman for making that case. I know from my postbag and email account that a number of businesses and individuals affected, who are concerned on health grounds or who have concerns about their employment or financial status, will contact their Member of Parliament. We are not always the first port of call—we are sometimes the last—but we are one where people expect to be able to get a response quickly, so I will look at what further guidance and advice we can give to Members of this House and through local authorities. That point about getting the message out to local authorities may well have been heard, because the relevant Minister, the Under-Secretary of State for Housing, Communities and Local Government, my hon. Friend the Member for Thornbury and Yate (Luke Hall) , is sitting on the Treasury Bench behind me.
The hon. Member for Newport West (Ruth Jones) raised the point about SSP and the rebate for employees, and whether that could be for more than two weeks. I understand the point she is making. The current Government advice is for people to self-isolate for seven days or for 14 days if in a household, so we feel that the two-week limit on rebates is a proportionate response. She also asked why SSP is not at the same rate as the living wage. The current system is designed to balance support for the individual with the costs to the employer. As the Minister for Disabled People, Health and Work mentioned at the beginning of this debate, we have put £1 billion into the welfare system to provide additional financial security for people, and people on low income can get a top-up, where applicable, through UC.
Numerous hon. Members, including the hon. Members for Sefton Central (Bill Esterson) and for Leeds West (Rachel Reeves), raised a point about the private rented sector. Today at Prime Minister’s questions, the Prime Minister did say that we will be bringing forward legislation to protect private renters from eviction, and the Ministry of Housing, Communities and Local Government is considering whether we need to go further on that point.
The right hon. Member for East Ham (Stephen Timms) and the hon. Member for Airdrie and Shotts (Neil Gray) both raised a point about the consultation on the lower earnings limit. Our immediate concern in dealing with the covid-19 outbreak is to ensure that a suitable financial safety net is in place, and the benefits system does provide that. We estimate that about 60% of people earning below the lower earnings limit are already in receipt of benefits. Our longer-term aim in that consultation was about preserving the link between the employer and the employee so that the individual receives appropriate support upon return to work. That is less relevant when most people are facing short periods away from work. I or the Minister for Disabled People, Health and Work would be happy to meet those Members at a later point to discuss that further.
Numerous hon. Members asked why the focus so far has been on businesses and has not just been about individuals. It is so important that organisations are able to carry on trading, which is why the initial focus of Her Majesty’s Treasury has been on supporting business and keeping people in work where it is sensible and appropriate, based on Government guidance, to do so. Ultimately, that protects so many individuals in our society, but of course we are also looking at other measures for workers.
The hon. Member for Newcastle upon Tyne Central (Chi Onwurah), the right hon. Member for East Ham and the hon. Member for Airdrie and Shotts all made the point about raising the level of statutory sick pay. We continue to look at other support for workers to see what best mechanisms are available. Thankfully, a period of absence is likely to be short—we believe between seven and 14 days—but we know that some may need extra support, as Members across the Chamber have said. We know that low-paid workers are likely to be receiving additional support through universal credit, for example, and the advantage of universal credit is that it will go up if income falls to the equivalent SSP level.
Rachel Reeves
I thank the hon. Gentleman for giving way and for addressing the points that hon. Members have made. It is true that people will not have to take that long off to self-isolate for their recovery, but overall, there is likely to be a suppression of demand in the economy for a longer period. The idea that people may be off work for only one or two weeks is fine if that is for health reasons, but if it is because their business is closed or there is just not work available, it is likely to be a lot longer. That is the point that many Members have been trying to make.
Will Quince
I thank the hon. Lady for making that point. I reassure Members that the Government are doing all they can to ensure that everybody is supported to do the right thing. It is crucial that everyone follows the Government guidance on self-isolation—that has been clear throughout the debate—to protect themselves and others. The measures that we have announced and will put forward in the emergency Bill will support people to do so.
To come directly to the hon. Lady’s point, the Chancellor has announced that in the coming days the Government will go much further to support people’s financial security, working with trade unions—another point made by the hon. Member for Stockport (Navendu Mishra)—and businesses to urgently develop new forms of employment support to help to protect people’s jobs and incomes through this period. I know that the hon. Lady would like to tempt me to go further but, as I think she will understand, that is somewhat above my pay grade. It is very important, however, that debates such as this take place, because it will have been heard by Her Majesty’s Treasury and will be taken in the spirit of working collaboratively on a cross-party basis. I certainly take those ideas on board, and if Members have further ideas about how we can better support some of the most vulnerable people in our society, my door is always open, and I would welcome them coming forward with those.
The right hon. Member for East Ham, the Chair of the Select Committee, raised the point about the habitual residence test. The test has operational procedures already in place to expedite confirmation of eligibility, but I will take this point away and give it further thought—I had not given it consideration before he raised it and I would be very happy to meet him to discuss it further.
We have a safety net that helps people facing hardship if they cannot work or are seeking work. Depending on their individual circumstances, employees can claim universal credit and/or new-style ESA or JSA. As the Prime Minister set out, the Government will keep everything under review. The package that was set out at the Budget and the new measures that were recently announced should give some reassurance that support will be provided to support jobs, income and businesses. As the Chancellor said, we will do “whatever it takes”.
We are in extraordinary times. The coronavirus pandemic is the most serious public health emergency that our nation has faced for a generation. Our policy is to protect lives and fight this virus with everything we have, and the Government have been clear in their approach: we will do whatever it takes to get the nation through these testing times. We will protect people, their jobs and businesses through this period to ensure that we keep as many people as safe as possible.
Question put and agreed to.
Resolved,
That this House has considered the matter of Statutory Sick Pay and protection available for all workers.
Oral Answers to Questions
Will Quince Excerpts(4 years, 8 months ago)
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Karl MᶜCartney (Lincoln) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
The Department is working with a range of organisations to support claimants who are transitioning to universal credit. Help to Claim, which is being delivered by Citizens Advice, is working effectively for claimants, and we are in the concluding stages of detailed discussions for a second year of delivery.
Giles Watling
On a recent visit to my local jobcentre, it was clear that we have excellent staff and that they support universal credit. Will the Minister outline what plans are in place for outreach services for those who might be intimidated by a visit to the jobcentre or, indeed, who want to access support online?
Will Quince
I thank my hon. Friend for his question and for visiting his local jobcentre. All jobcentres have wi-fi and computers available for claimants to access the internet. For those who are still unable to access or use digital services, or who are not able to travel, assistance to make and maintain their claim is available via the freephone UC helpline. As I mentioned, Help to Claim offers tailored practical support to help people make a UC claim.
Sara Britcliffe
As universal credit is rolled out, I welcome the use of new technology to help applicants, particularly in Hyndburn. What support is available to make sure applicants make the best use of the new systems?
Will Quince
Universal credit has been designed to be as quick and easy as possible for the user, ensuring claimants receive money at the earliest available opportunity. It is designed to be a digital-first service, ensuring we make the best use of technology to design a modern and effective working-age welfare system. It is important to note that our UC claimant survey found that 98% of claimants have internet access and have claimed online.
Karl MᶜCartney
I thank my hon. Friend for his answer. Is he aware that in Lincoln we are pleased that the claimant rate is as low as 4.4%, which is a vast improvement on what it was when I was first elected in 2010? Will he outline what other initiatives his Department is undertaking, as well as the local jobs fairs that Conservative MPs organise in their constituencies, to assist the 2,500 or so claimants in my constituency?
Will Quince
I thank my hon. Friend for his question and for all the work he does in this area, and I welcome him back to his place. In recent years, the Government have made significant investment to improve work incentives, including the reduction in the UC taper rate from 65% to 63% and an extra £1.7 billion a year put back into UC to increase work allowances for working parents and disabled claimants by £1,000 a year from April 2019. That provides a boost to the incomes of the lowest paid and results in 2.4 million families keeping an extra £630 a year of what they earn.
Margaret Greenwood (Wirral West) (Lab)
The Prime Minister said last week that any workers who need to self-isolate because of the coronavirus and who are not eligible for statutory sick pay could claim UC. However, people have to meet a work coach at the start of a claim for UC, there is a five-week wait for the first payment and anyone asking for an advance also has to go to a jobcentre to have their identity verified. So how will people who have to self-isolate be able to claim UC?
Will Quince
I thank the hon. Lady for her question. As the Prime Minister set out last week, we will introduce, as part of the Department of Health and Social Care’s emergency Bill, provisions for statutory sick pay to be made from day one. Employers have been urged to make sure they use their discretion and respect the medical need to self-isolate in making decisions about sick pay. People not eligible to receive sick pay may be able to claim UC and/or contributory employment and support allowance, and staff at our jobcentres are ready to support people affected and can rebook any assessment or appointment that is necessary.
Neil Gray (Airdrie and Shotts) (SNP)
That just does not answer the question, does it? Will the Minister therefore outline what happens where someone on UC has to self-isolate but has to go through work searches and is unable to attend a jobcentre? Will he expect that person to be sanctioned if she cannot turn up?
Neil Gray
The Minister said last month that he of course thought that improvements could be made to UC. I agree, so perhaps he could outline some, starting with ending the two-child cap, ending the five-week wait and fully restoring the work allowances. Have those conversations been had between his Department and the Treasury, ahead of the Budget?
Will Quince
I thank the hon. Gentleman for his question. We are a Government who listen. Let us look at the improvements that have already been made to UC: increased advances, of up to 100% of a full monthly payment; cutting the taper rate, so people keep more of their salary; increasing the amount someone can earn before their UC is reduced; scrapping the seven-day waiting times; introducing a two-week overlap of housing benefit; and, as of July, we are introducing a two-week overlap of various legacy benefits. There are lots of improvements to be made. They do, of course, require Treasury approval, and I am looking at these in a lot of detail.
Martin Vickers (Cleethorpes) (Con)
Like my hon. Friend the Member for Clacton (Giles Watling), I recently visited one of the jobcentres that serves my constituency—it was in Grimsby and, along with the ones in Immingham and Barton-upon-Humber, it serves Cleethorpes. The staff there do an excellent job and they are very positive about UC. Will he congratulate the staff and do what he can to reassure those who are having problems transitioning to UC that the Government will be working to solve any of the existing problems?
Will Quince
I thank my hon. Friend for his question and for visiting the jobcentre, and he describes the same feedback that my Front-Bench colleagues and I receive when we visit jobcentres. UC is a modern, flexible, personalised benefit, which reflects the rapidly changing world of work. Conservative Members believe that work should always pay and that we need a welfare system that helps people into work, supports those who need help and is fair to everyone who pays for it. I can certainly thank the staff at that jobcentre for all the work they do.
Stephen Timms (East Ham) (Lab)
A major cause of difficulty in transitioning to UC is the five-week delay between applying and being entitled to benefit. The Work and Pensions Committee, at its first meeting last week, chose to make this the subject of its first major inquiry, and I am grateful to the Minister for the conversation we have already had about this. Will he confirm that the Department will do all it can to assist the Select Committee in its inquiry?
Will Quince
I thank the Chairman of the Select Committee for his question. I start from the premise that we do not believe anybody has to wait five weeks for a payment under universal credit. Advance payments are available at the beginning of a UC claim and budgeting support is available for anybody who needs extra help. We have the two-week roll-on of housing benefit, and as of July this year we will also have the two-week roll-on of other legacy benefits. I will of course look carefully at the findings of the report by the right hon. Gentleman’s Committee.
Mark Tami (Alyn and Deeside) (Lab)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
The Government recently announced that anyone reaching state pension age while claiming universal credit can receive a run-on until the end of the assessment period in which they reach state pension age. This removes any potential gap in provision, with such pensioners receiving, on average, an additional £350.
Mark Tami
The announcement in the written statement on Thursday was extremely welcome and a great victory for hundreds of thousands of pensioners throughout the country. I thank all Members from all parties who signed early-day motion 129, which highlighted the issue. As it was clearly a bad policy in the first place, what redress will the Government offer to those pensioners who have already suffered loss?
Will Quince
First, I thank the right hon. Gentleman for all his work in this policy area. As he rightly pointed out, the change does remove any potential gap in provision, with people reaching state pension age and leaving universal credit receiving an additional £350 on average. I stress that the process is already in operation on an extra-statutory basis, ensuring that nobody loses out on reaching state pension age. Legislation will be amended accordingly later this year.
Andrew Bridgen (North West Leicestershire) (Con)
Will the Minister outline to the House what steps his Department is taking to support those citizens who have fallen into problem debt?
Will Quince
Certainly—the breathing space policy is a prime example. If my hon. Friend would like to meet me or, indeed, the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Hexham (Guy Opperman), who is the Minister for Pensions, we would be happy to do so to set out in more detail the action that the Government are taking.
Angela Richardson (Guildford) (Con)
Kirsten Oswald (East Renfrewshire) (SNP)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
The benefit freeze will end next month, and working age benefits will rise with inflation. We will spend an additional £1 billion on working age benefits in 2020-21.
Kirsten Oswald
A 1.7% increase in working age benefits does not make up for the damage caused by the four-year freeze: affected benefits and tax credits will be about 6% lower in 2020-21. If austerity was really over, the UK Government would be making up the shortfall. Has the Secretary of State asked the Treasury to make up that shortfall?
Will Quince
As I have just said, the Government have already announced that working age benefits will rise in line with inflation next month. As the hon. Lady will know, the Secretary of State has a statutory obligation each autumn to conduct a review of pension and benefit rates for the following year. This review will begin in October for implementation in the following April.
Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)
Selaine Saxby (North Devon) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
Advances are an important tool to help the most vulnerable claimants receive the money they need to live on. As part of the application process, proposed repayments and advance payment are explained. All claimants are advised to request a level of advance that is manageable when considering the repayments required.
We have announced that from October 2021 the repayment period will extend to 16 months, but I am very sympathetic to extending it further and am looking at that in detail.
Grahame Morris (Easington) (Lab)
Helen Hayes (Dulwich and West Norwood) (Lab)
The gap between local housing allowance rates and average rents for a two-bed property in Southwark is now over £1,000 a month, and raising the local housing allowance in line with the consumer prices index will do almost nothing to close the gap. By continuing to ignore the issue, the Secretary of State is continuing to contribute to entirely unnecessary homelessness. If the Government are serious about ending homelessness, will the Secretary of State urge her right hon. Friend the Chancellor of the Exchequer to use this week’s Budget to re-link the LHA to the bottom third of rents?
Will Quince
As the Secretary of State said a moment ago, local housing allowance rates are not intended to meet all rents in all areas. The LHA is designed to ensure a fair balance between supporting vulnerable people to meet their housing costs and public spending. From April 2020, LHA rates will be increased by inflation, but I join the Secretary of State in urging the Mayor of London to do far more in terms of supply.
Paul Maynard (Blackpool North and Cleveleys) (Con)
In 2015, our election manifesto rightly committed us to halving the disability employment gap. By 2019, unfortunately, we had watered that down merely to reducing it. 2015 was also the last year that we published Fulfilling Potential indicators, allowing us to monitor the gap. As the Minister pulls together his new national disability strategy, I urge him to reinvent the wheel and provide robust statistical indicators to allow us to monitor the narrowing of the gap.
Surplus Earnings
Will Quince Excerpts(4 years, 8 months ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
The surplus earnings policy was introduced to prevent people who are paid large amounts of earnings on an irregular basis from receiving a greater amount of benefit and earnings than claimants who for example earn the same annual salary but are paid over 12 regular salary payments.
This means that where a claimant receives a large payment of earnings within an assessment period which is sufficient to end their universal credit award, and then reclaims universal credit within six months of that award ending, earnings above the de minimis level will be taken into account as earnings for the new award.
I will sign a determination to extend the current £2,500 universal credit surplus earnings de minimis level from 1 April 2020 to 31 March 2021 and will place a copy in the Library. This will safeguard the efficient administration of universal credit by not reducing the de minimis to £300 as provided by the Universal Credit Regulations 2013.
This measure will cost £70 million in 2020-21 and will mean around 500,000 fewer people will see their universal credit award reduced by surplus earnings.
[HCWS147]
Social Security
Will Quince Excerpts(4 years, 9 months ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
I beg to move,
That the draft Social Security Benefits Up-rating Order 2020, which was laid before this House on 30 January, be approved.
In my view, the provisions in these orders are compatible with the European convention on human rights. This order reflects the Government’s continuing commitment to support working families and pensioners across the nation. It will increase the basic state pension and the new state pension in line with the triple lock. The basic state pension will increase by 3.9% and we have committed to increase the new state pension by the triple lock. The state earnings-related pension schemes and the other state second pensions, as well as protected payments in the new state pension will rise by 1.7% in line with prices. It will increase the pension credit standard minimum guarantee by 3.9% in line with earnings. It will increase working age benefits by 1.7% in line with prices. Universal credit work allowances will also rise in line with prices. It will increase carers benefits and benefits intended to meet additional disability needs by 1.7% in line with prices. In addition, the carer and disability-related premiums paid with pension credit and working-age benefits will increase by 1.7%.
The Government are committed to supporting the most vulnerable in our society. In this order, the Government propose to spend an extra £5 billion in 2020-21 on increasing benefit and pension rates. With this spending, we are upholding our commitment to the country’s pensioners by maintaining the triple lock and helping the poorest pensioners who count on pension credit; spending an additional £1 billion on working-age benefits and ensuring that we continue to support working people; and providing essential support to disabled people and carers. I commend the order to the House.
Will Quince
Let me start by thanking all hon. Members for their contributions. Very many issues have been raised. As much as I much hold back the temptation to hold a second DWP oral Questions session, which I easily could, given the varied range of questions raised, I stress to hon. Members across the Chamber—the Chairman of the Select Committee knows this—that my door is always open. We may not always agree, but there is always a listening ear, and they are very welcome to come to see me or, indeed, write to me.
This order reflects the Government’s continuing commitment to support those in work while protecting the most vulnerable in our society. To reiterate, this Government are increasing the basic state pension and the new state pension in line with the triple lock. We are increasing the pension credit standard minimum guarantee by earnings to support the poorest pensioners. We are increasing working-age benefits in line with prices. We are increasing the universal credit work allowances so that claimants can earn more before their payments are reduced. We are increasing benefits to meet additional disability needs and carer benefits in line with prices. I commend this order to the House.
Question put and agreed to.
Resolved,
That the draft Social Security Benefits Up-rating Order 2020, which was laid before this House on 30 January, be approved.
Local Housing Allowance: Homeless Young People
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The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
It is a pleasure to serve under your chairmanship, Mr Hollobone, and I thank the hon. Member for Brighton, Pavilion (Caroline Lucas) for securing this important debate. Since my election in 2015, I have been passionate about tackling homelessness. Before my appointment as a Minister, I served as co-chair of the all-party parliamentary group on ending homelessness, where I engaged and built relationships with many brilliant charities, a number of which the hon. Lady mentioned, to work with them to end homelessness and rough sleeping.
Since my appointment as Minister, I have worked and continue to work closely with a number of those charities and other organisations to help to inform my work and that of my Department, to ensure that the Department for Work and Pensions does all we can to support those who are at risk of homelessness and that we are getting housing benefit right to provide the support that people need. As a Department we support the wider Government aims and ambitions to end rough sleeping and tackle wider homelessness.
My role as the Minister for welfare delivery has enabled me to go to all parts of the country, and subject to reappointment I look forward to continuing to do so. I have visited a number of charities and organisations around our great country that support those who have experience of homelessness and rough sleeping. That has enabled me to get a better understanding of those issues. I include among those organisations a number of arm’s length management organisations and housing associations that have a role to play.
The hon. Lady will no doubt recognise that this is not an issue that the Department for Work and Pensions can tackle alone. I am working with my counterparts in several Government Departments as part of cross-Government efforts to tackle this issue. Sadly, these debates are always far too short; I have no doubt that the hon. Lady and I could discuss this and associated issues at great length. We could probably spend most of the day talking about the issues she raised: rough sleeping and the broad rental market area in Brighton, local housing allowance, Centrepoint’s analysis and young people under 25 with experience of homelessness, as well, of course, as care leavers, not to mention the point she makes about social housing. I would very much welcome her at the Department to chat through some of those issues at greater length with officials, as appropriate.
I will try to cover as many of the issues as I can in the time left. First, we have to address the elephant in the room, which is the root cause of this issue: in parts of our country, we have massive supply and demand issues. The hon. Lady’s constituency is an example of that; my own constituency is another. As a result, although there are parts of the country where the ambition was to have the local housing allowance rates set at the 30th percentile, there are many parts of the country where the local housing allowance is sub-5%. That represents an issue. The root cause of that—my officials will not like me for saying it—is that successive Governments have failed to build enough houses, in particular affordable housing and homes for social rent. That is something we need to look at.
Stephanie Peacock (Barnsley East) (Lab)
I congratulate the hon. Member for Brighton, Pavilion (Caroline Lucas) on securing this important debate. On affordable housing, does the Minister share my concern about the research by the charity Crisis, which showed that cuts to housing benefit mean that in 94% of areas across the country, only one in five private-rented properties are affordable to young single people? Obviously, we need to do much more to tackle that.
Will Quince
The hon. Lady is partly right; the solution is not just about local housing allowance. We can continue to pump money into housing benefit, which unfortunately in many parts of the country lines the pockets of private rented sector landlords. But if we are to tackle this in the long term, it is about affordable housing and a mixture of tenure between ownership, affordable housing, which is up to 80% of market rent, and homes for social rent, which is significantly lower. It is about addressing the supply issue as well as the demand issue, to ensure that we tackle the problem for the medium to long term. That is why the Department and I are working closely with the Ministry of Housing, Communities and Local Government, not to mention the other Government Departments involved. Between us, we hold the key—we hold the housing benefit bill, but they have a lot of the levers to address the supply side.
Matt Western (Warwick and Leamington) (Lab)
I commend the hon. Member for Brighton, Pavilion (Caroline Lucas) on securing this debate. The Minister will be well aware that only something like 6,480 social rent properties were built in 2018. We have a huge undersupply, as the Minister highlights. The other day, Shelter told me that people are finding themselves under so much financial pressure that they cannot meet the rent because of the low payment being given to them. People are moving from a two-bedroom to a one-bedroom and are doubling up in the properties. That is putting more pressure on single occupancy and double occupancy.
Will Quince
There is no question that the Government are committed to increasing the supply of social housing. Through the affordable homes programme to March 2022, we will deliver 250,000 new homes on a wide range of tenure. We will renew the affordable homes programme, building hundreds of thousands of new homes.
It is important to stress that, since 2010, we have delivered more than 464,000 new affordable homes, including 331,800 affordable homes for rent. As I said, I am working very closely with my counterparts at MHCLG on the interaction between housing supply and housing benefit. Until that supply is addressed, local housing allowance rates will continue to play a part. That is why we have increased LHA by 1.7%, in line with CPI. Of course, the ambition is to go further, and I personally would like to see it go back up to the 30th percentile. That comes, as I think I have said in response to written parliamentary questions, to the tune of about £1 billion. It is not a cheap intervention, so we have to address the supply issue alongside it.
The hon. Member for Brighton, Pavilion rightly raised the broad rental market area in Brighton. That is not an easy issue to address. There are 192 broad rental market areas and 960 local housing allowance rates, so looking at them is a considerable piece of work. I am doing that work, and it is important that we do so, but it cannot be done in one financial year. Unfortunately, since there are so many of these issues in all parts of the country, there are unintended consequences. However we draw the boundaries, there are winners and losers. I understand that there is an issue in Brighton at the moment. The same is true of Blackpool and, close to my constituency in Essex, of Jaywick, Frinton and Clacton. These issues do arise. I encourage the hon. Lady to write to me with the specifics—alternatively, I would be very happy to visit—so we can look at them in more detail.
I work very closely with Centrepoint, which is a wonderful charity. I have been on several visits and I intend to do far more. We have already done a considerable piece of work in this area. I can touch on the Government’s action on homelessness and local housing allowance, although I probably do not have enough time to go into the detail I would like. There have been considerable amelioration measures, such as discretionary housing payments, which we are increasing by a further £40 million this financial year to help local authorities support people where local housing allowance is not sufficient. Over the past three years we have also had targeted affordability funding; as I understand it, in the last financial year, that increased about 45% of shared accommodation rates by 3%. Nevertheless, I would like us to go further, and I think the steps we have taken to increase rates by CPI will make a difference.
The hon. Lady referred specifically to care leavers. We know that people leaving the care system can be particularly at risk of homelessness. We have provided £3.2 million per annum to 47 local authorities with the highest number of care leavers at risk of homelessness. That has led to a number of innovative ideas to support those leaving the care system into safe, secure and long-term housing. However, I understand the case put by Centrepoint, the hon. Lady and others about the rate. She suggested two items that would cost a little under £10 million. That is still a significant sum and would require Treasury approval. She may have got the impression that she is pushing against a half-open door. I am very sympathetic to that view, including in relation to those who have experience of homelessness. She asked me to commit to meeting charities and Members with specific interests in this area. I would of course be delighted to. Actually, I think a number of those meetings are already in train, but I will of course continue to do that.
On the shared accommodation rate, our approach is based broadly on the principle that young single people in the private rented sector should have their housing benefit limited to the rate appropriate for shared accommodation, but the hon. Lady rightly made the point that there are exceptional circumstances and there need to be exceptions to policy. We already have a number of exceptions, as she pointed out, but where there are opportunities for us to go further and there is a clear evidence base for doing so, of course we will look at that.
An obvious example of other interventions is the Homelessness Reduction Act 2017, which has enabled us to make great strides in the support that we can give to young people in particular. Many of them would not have been eligible under the previous system of priority need but now will be eligible on the basis of the duty to refer. The Act is making a huge difference, and I have no doubt that the hon. Lady knows that from speaking to her local authority, as I do to mine. We must ensure, through the MHCLG, that it is suitably resourced, but we know it is making a difference, including to young people. Importantly, the Act also places a duty on public bodies, including children’s services, youth offending institutions and youth offending teams, to ensure better partnership working. That is really important for ensuring that young people get the wraparound support they need.
The MHCLG is the lead on broader Government action on homelessness, but we very much support its efforts. The Government are committed to tackling homelessness and rough sleeping. As the hon. Lady will know, we committed in our manifesto to end rough sleeping by the end of this Parliament and to fully enforce the Homelessness Reduction Act.
There are a number of issues, including local housing allowance rates, that I would love to cover in more depth. As the hon. Lady rightly pointed out, we have an opportunity ahead of the fiscal event—the Budget—on 11 March to look at housing in the round. We are having conversations with the MHCLG and the Treasury to see how we can look at supply and the way that investment in supply—in particular supply of affordable homes and homes for social rent—would interact with our housing benefit bill. It pains me that we spend around 30% of our housing benefit bill on the private rented sector. It pains me even more that, because of LHA rates and other demand and supply issues, a percentage of that—I do not have a figure, but there is research to be done there—is spent on housing that I do not believe is of a standard that the taxpayer and the Government should fund or invest in.
In conclusion, I would be very happy indeed to work with the hon. Lady—
Caroline Lucas
I really appreciate the Minister’s response, and I would very much like to take him up on his offer of meeting him and his officials. I know that he is broadly on side. He pointed to supply, which is very important—we need more affordable housing, particularly for rent—but we also need immediate action. As he knows, discretionary payments are not a sustainable solution. They are for moments of crisis; they are not for an ongoing payment situation. Right now, there are not any mitigating circumstances for the particular groups that I and Centrepoint have identified, so I urge him again to take up those cases.
Will Quince
I thank the hon. Lady for that intervention. As a Department, we set no timeframe or parameters for how long discretionary housing payments are available. We leave that up to local authorities. However, I very much take her point, and I thank her for the constructive way in which she has put the case for those two groups. There is a strong argument there, and I will have to take it away and work it up with officials, including by having conversations with Centrepoint and others.
We are committed to providing a strong safety net for those who need it. That is why we continue to spend more than £95 billion a year on working-age benefits, including around £23 billion to help people with their housing costs. We are meeting our manifesto commitment to end the benefit freeze and the freeze on local housing allowance rates. I hope the hon. Lady has got a sense of my passion on this issue and my desire to go further. That is why, as I have said a couple of times, work is under way between my Department and the MHCLG. Where there are opportunities to bring in Members from across the House and charities—charities have some really good ideas and quite reasonable requests of Government in this area, with strong cases—I am very happy to work with them.
Question put and agreed to.