Oral Answers to Questions

Yvonne Fovargue Excerpts

Monday 8th November 2021 Commons Chamber

[Mims Davies]

The DWP helps fill vacancies directly with work coach support through our plan for jobs programmes, including via the sector-based work academy programmes, and kickstart. We have doubled the number of our work coaches, particularly to support sectors with shortages, and we have a virtual job help platform with job search advice, a showcase of sectors and signposts directly to those vacancies, including in HGVs and logistics.

[Yvonne Fovargue (Makerfield) (Lab)]

T8. The new Help to Claim contract tender only specifies digital and telephone channels, yet a large number of claimants who need this service find those channels impossible to use and need face-to-face advice. Can the Minister confirm that there will be no removal of funds from face-to-face services and that potential claimants will still be able to access help via face-to-face advice?

[The Parliamentary Under-Secretary of State for Work and Pensions (David Rutley)]

We are committed to making sure that the best advice is available to people. We have clearly moved on from the depth of the pandemic, and we are looking at how best we respond. I will come back to the hon. Lady with more detail on how we propose to move things forward.

Income Tax (Charge)

Yvonne Fovargue Excerpts

Thursday 4th March 2021 Commons Chamber

[Yvonne Fovargue (Makerfield) (Lab) [V]]

As chair of the all-party parliamentary group on debt and personal finance, I welcome many of the measures to alleviate people’s income problems during this time. However, the question remains: what happens when the support ends and millions of people potentially face a cliff edge?

Although some people have been able to increase their savings and have paid off debt, poorer households always suffer disproportionately during hard times, and the pandemic has widened that gap. People on lower incomes pay more for essential products—including energy, credit and insurance, to name just three—and are also likely to pay more to access their cash. I will return to that shortly.

I welcome the retention of the £20 weekly uplift to universal credit, but I believe it should be made permanent and extended to legacy benefit payments. The pandemic has raised awareness of the relatively low level of benefits, and it is not just charities and faith groups that believe that the amount should be increased; it is also the general public. There are other issues, including the five-week wait, the two-child limit and the benefit cap, and I also urge that loans be converted to grants, because paying back from an already low income causes great hardship.

The level of the self-isolation payment of statutory sick pay has also caused problems. Many people are unable to afford to self-isolate in order to limit the spread of the coronavirus. They want to do the right thing, but they have to balance that with the cost to their family, and that can prove to be an impossible decision.

I am pleased that the Chancellor has brought in and is going to pilot the no-interest loan scheme. I will follow it with great interest and I hope that it will be implemented as soon as possible. However, there are many people who will have little or no chance of paying any loan in the medium or long term and who are already deeply in a spiral of debt. More research should be done on the effects of this on individuals and families, and on ways in which they could be helped, which may include debt write-offs. These are unprecedented times and we will need unprecedented solutions.

I also believe that private renters have been disproportionately hit. They need a targeted financial package to help them pay off arrears built up during the first lockdown. It would help people stay in their homes and keep away the human and financial cost that evictions would bring.

In his last Budget statement, the Chancellor promised to protect access to cash by introducing legislation. We now hear that he believes that the matter is best dealt with by the Financial Conduct Authority. If I may mix my metaphors, he is both washing his hands of it and kicking it into the long grass. A considerable minority of the public prefer to use cash. It is impossible for them to overspend if they use just the money in their purse. On Monday, we learned that half of Britain’s cash machines could close unless banks are forced to support them. The Chancellor must step in and show the Government’s commitment to cash by forcing the banks to pledge to a five-year deal to allow the Post Office to invest in its banking service and to allow Link to manage its national network.

The pandemic was like an earthquake, disrupting the finances of millions of people. What we now have to do is ensure that it is not followed by a tsunami of debt that will engulf the most vulnerable.

Supporting Disadvantaged Families

Yvonne Fovargue Excerpts

Monday 9th November 2020 Commons Chamber

[Dr Coffey]

My hon. Friend is right to point out that, while we continue to support people through the welfare system, we know that the best way ultimately for people to get out of poverty is to work. That is why, through our plan for jobs, we have been extending the number of training courses that people can do. In particular, a new scheme called JETS—job entry targeted support—tries to get people ready to go back into work. The jobs finding support scheme is particularly tailored to help people who had been in work for a long time; to try to find work is a new experience for them. There are also swaps: in some sectors, the future does not look quite so bright for the next few years, and we want to encourage people to consider swapping careers, even if it is just in the short term, to ensure they can try to get back into work. That is a successful programme for which there is huge demand. We are seeing huge delivery of these programmes.

[Yvonne Fovargue (Makerfield) (Lab) [V]]

I welcome the expansion of grants, but can I urge the Secretary of State to scrap the five-week delay in claiming universal credit? An advance that has to be repaid over whatever period is a loan. There is increasing evidence from debt charities that that is pushing vulnerable families further into debt.

[Dr Coffey]

If somebody comes to make a universal credit claim, they can get money pretty quickly—within about three or four days. Yes, that is an advance but there is an earlier payment of the sum that would generally be available over the year. Instead of getting 12 payments, a recipient will get 13. It is important that if people need help, they get it, but then the payment will be spread over the rest of the year.

Universal Credit: Delayed Roll-Out

Yvonne Fovargue Excerpts

Tuesday 4th February 2020 Commons Chamber

[Will Quince]

I thank my hon. Friend for that question and for his support for universal credit and, indeed, his local jobcentre. We believe that work should always pay, and we need a welfare system that helps people into work, supports those who need help, and is fair to the taxpayers who pay for it. It is important to stress—my hon. Friend is right about this—that it always pays to work and increase one’s hours under universal credit. That was not the case under the legacy benefit system.

[Yvonne Fovargue (Makerfield) (Lab)]

Overwhelming evidence from the pilot areas such as Wigan and debt charities such as StepChange shows that the five-week wait is causing further debt problems. Will the Minister use this delay to rescind and reconsider this policy urgently?

[Will Quince]

I have huge respect for the hon. Lady, and I would be happy to visit her constituency to meet some of the organisations she references. It is important to state that nobody has to wait five weeks for an initial payment, which can be done on day one. It is repayable over 12 months but, as of next year, that will be extended to 16 months. We also have additional measures such as the two-week housing run-on and, as of July this year, a further two-week run-on of other legacy benefits. Are there further improvements that I would like to make? Yes, of course there are. They would all require Treasury approval, but I would be happy to work with hon. Lady to look at them in further detail.

Oral Answers to Questions

Yvonne Fovargue Excerpts

Monday 27th January 2020 Commons Chamber

[Will Quince]

As I have already said in answer to two other colleagues, the amount of universal credit paid to claimants reflects as closely as possible the actual circumstances of a household during each monthly assessment period, so over the course of a year it levels out and people do not lose out. I appreciate, though, that there is a budgeting issue, and I am keen to find a solution.

[Yvonne Fovargue (Makerfield) (Lab)]

14. What recent assessment her Department has made of the effect of the roll-out of universal credit on the personal finances of claimants.

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

In total, universal credit is £2 billion a year more generous than the legacy system it replaces. For those who can work, universal credit ensures people take home more of their earned income and are supported to work more hours, whereas for those who cannot work, the higher disability element is more generous, meaning that 1 million disabled claimants will gain, on average, £100 a month.

[Yvonne Fovargue]

Last week, a report from the debt charity StepChange found that 65% of clients said that universal credit had made it harder for them to budget and manage their finances. Given the DWP’s oversight of the UK financial wellbeing strategy, what will the Department do to ensure that universal credit helps people to recover from debt and does not make the problem worse?

[Dr Coffey]

I know that the hon. Lady has focused on this issue for a lot of her professional career, as well as for a lot of her parliamentary career. We do important work through the Money and Pensions Service to make debt advice available, and that is an important avenue to which people can be referred. We also work closely with Citizens Advice on the Help to Claim service, to help to provide that alternative holistic approach for which we fund the CAB.