(6 years, 8 months ago)
Commons ChamberI am going to carry on making these points, if I may.
I understand that, regrettably, the Government have appealed the ruling and are awaiting the outcome of a first tribunal hearing. This is the second time—
I am just going to carry on for a moment, if that is all right.
This is the second time in two years that I have brought to the House’s attention Information Commissioner rulings concerning the DWP that the Government have tried to thwart. The first time was when the Government refused to publish data on the number of people who had died after being found fit for work. Those data were shocking and vindicated those who had pushed for their release for several years. They gave cold comfort for the families and friends of those who had died and to those who were still going through the assessment process.
I appreciate that neither universal credit nor the project assessment review reports were initiated under the tenure of the current Secretary of State, but I do urge him to rethink and publish the reports forthwith. Taxpayers’ money must not be used to hide the Government’s embarrassment.
It is a pleasure to take part in this debate, and it is always good to discuss universal credit in the House. As a member of the Work and Pensions Committee, I want to make a minor point before I go on to more substantive arguments. The first I knew about the Committee’s involvement in the motion was when I saw the Order Paper this morning while I was having my breakfast. I understand that we are all politicians here, and that the Opposition do not want to give anyone unfair notice, but it would be a simple courtesy to give members of any Select Committee some advance warning that their Committee is being involved in such a motion. I am not asking for much—notice could be given even an hour before the Order Paper is published. We were all here until 1 o’clock this morning, but there was plenty of time to send an email. That is just a general point for this sort of debate, which the Opposition are absolutely entitled to call.
I would like to put it on record that I am very happy with the Secretary of State’s response and pleased that these documents will be shared with the Work and Pensions Committee. I certainly take it on agreement that we will receive the documents in confidence—I understand that we will not publish them ourselves—which I think is quite right. That said, I think that my hon. Friend the Member for South Cambridgeshire (Heidi Allen) made a good point when she said that the analysis in the reports is now slightly out of date. Opposition Members who are hoping that it will cast brilliant sunlight on the workings of universal credit will be disappointed.
There is a broader point, which has been raised by a number of Opposition Members, about whether the documents should be published. There is a live freedom of information request, so people have requested the documents and the DWP has declined to give them. The Information Commissioner has said that they should be handed over and the DWP has appealed, as it is fully entitled to do. If that ruling is upheld, the documents will be published; if it is overturned, they will be kept out of the public eye. The House should abide by that well-respected and well-established process—it was established under a Labour Government—which is tried and tested. This debate is really about greater transparency. I believe that we should always call on policy makers to reach for greater transparency, and it is the job of this House to hold them to account. That goes for policy makers on both sides.
We saw a very big investment in universal credit in the Budget—£1.5 billion. The Select Committee was delighted by and welcomed the arrival of that money. As the Red Book shows, it has been raised by reducing opportunities for tax evasion and avoidance—money well raised; money well spent. The shadow Secretary of State has said twice in this House that she thinks that that additional £1.5 billion represents just £1 in every £10 that has been taken out, and she strongly implied that she would like to put the rest of that money back. By my calculation, that is £13.5 billion that she would like to put into universal credit. I am all for putting more money into universal credit, as my colleagues and friends know, but I always like to know where the money will come from.
The Labour party has set itself a fiscal credibility rule, which means that if it gets into government it intends to balance day-to-day expenditure and borrow only for investment in infrastructure, homes, railways, roads, renewable energy and new technology. Anyone remotely familiar with the DWP budget will know that the Secretary of State does not have £13.5 billion in a jar on his shelf. There is no slack to be found there, which means the money would need to be found elsewhere. Those familiar with the Red Book will know that £13.5 billion is not easily found elsewhere either.
If the Labour party were to stick to its own fiscal credibility rule, it would have to raise £11.5 billion. Its manifesto commits £2 billion to universal credit, which it says is accounted for—the Institute for Fiscal Studies has a different view—which means that £11.5 billion is unaccounted for. I will happily take an intervention from any Opposition Front Bencher who can tell me where that £11.5 billion will come from.
Perhaps the hon. Gentleman, being new to this House, does not appreciate that mistakes made in one Department can often have financial consequences in another. Let me tell him the story of a constituent of mine who went eight weeks with no income—
I fully understand the hon. Lady’s point because of course there are knock-on consequences. I am also very sorry to hear that her constituent waited eight weeks for money, but we know that that should never happen when advance payments are available and people can receive money on the same day. The seven waiting days have now been removed. The process of test and learn shows that we can make changes and improve outcomes for people on universal credit.
If we listened to Opposition Front Benchers, we would find an £11.5 billion black hole in the spending plans for universal credit. That shows that, rather than a fiscal credibility rule, the rule is that Labour has no fiscal credibility.
It is important that we increase transparency. I would welcome a little more transparency when Select Committees are cited in motions. I believe in the Information Commissioner’s transparency processes, and I am sure that we would all welcome a little more transparency on how the Labour party would fill the epic black hole in its finances.
(6 years, 8 months ago)
Commons ChamberFirst, in response to the hon. Lady’s comments on behalf of the SNP, I know that the Minister for Disabled People, Health and Work, my hon. Friend the Member for Truro and Falmouth (Sarah Newton), has spoken to Scottish Government Ministers today and got a much more constructive response. It is the launch of the innovation fund for the Dundee gateway today and we look forward to working closely with the Scottish Government in a constructive manner.
We have consulted on the work capability assessment. It is not clear that there is consensus at this point as to the way in which the work capability assessment should be reformed, but we acknowledge that there are improvements that should be made. We have indeed made improvements in how the work capability assessment works; for example, those with severe long-term disabilities will not be reassessed in the way that they were previously. So we continue to make improvements on that. If we can reach consensus on the way in which the work capability assessment should be reformed, I will be happy to proceed with that.
I strongly welcome the statement that the Secretary of State has made this afternoon. I also welcome the news that the disability employment rate has risen by nearly 5% since 2014. The Government are obviously a major employer of people. What are the Government doing to ensure that the civil service leads by example in this area?
(6 years, 9 months ago)
Commons ChamberI do not accept the hon. Gentleman’s characterisation of either universal credit or what I actually said. I make it clear that universal credit provides support for those who need it. On the severe disability premium, which he raised yesterday at Prime Minister’s questions, it is worth bearing in mind there is no reduction in the overall amount of support. When universal credit was introduced, it was designed to widen the support that is provided. Universal credit is about providing support to everyone, and getting people closer to work and into work, where possible, is absolutely the right thing to do.
As a member of the Select Committee on Work and Pensions, I warmly welcome the £1.5 billion and the loss of the seven-day waiting time announced yesterday. Will the Secretary of State confirm that, as the roll-out of universal credit continues, test and learn will continue to be an essential part of the process?
Absolutely. I make it clear that we must constantly consider ways in which we can refine and improve the system. I have set out a number of things we will be doing over the months ahead to make the system work as well as it possibly can. As of today, universal credit is already better than the legacy system.
(6 years, 9 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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I beg to move,
That this House has considered the Department for Work and Pensions’ support for care leavers.
It is a pleasure to serve under your chairmanship, Mrs Gillan. I am extremely glad to have the opportunity to debate this important subject in Parliament. I have been interested in the care system, and the young people who grow up in it and move out of it into adult life, for the past 10 years. When I first came to Westminster, my main interest was in education, but I quickly became aware of the large number of young people in our society—approximately 70,000 of them—who are in care because life at home has gone wrong. Without a stable foundation, so many opportunities are diminished and hindered.
The Minister will be pleased to hear that I believe that the most important work with young people in care, which is ultimately for the benefit of care leavers, is done in other Departments. Perhaps some of the most significant spends that are required are on matters that she can address with her colleagues and that fall within their budgets, such as early intervention for parents or children suffering from poor mental health or addiction problems. I am sure she has such conversations with her colleagues in the Department for Education, the Department of Health and the Department for Communities and Local Government.
Too often, we give the impression that the care system in our country is irretrievably broken. I do not believe it is. Some 60% of care leavers do not become NEET—not in education, employment or training—on leaving school, which is a sign that the care system has worked for them and has provided them with opportunities they might not have received if they had stayed at home. However, that is not to say that the system cannot be improved; it can be, and I believe it has been over the past 10 years. The Munro review of child protection and Martin Narey’s reviews of residential care and fostering for the DFE have contributed to the quality of care that young people in our country receive.
Obviously, the care system is extraordinarily varied. It is often said that England has not one care system, but 150—one for each of the local authorities that take in children. Those systems and the legal framework in which they operate remind us that young people in care are our children. Because the state has decided to take them away from their families and try to create a new family environment for them, the responsibility for their wellbeing, opportunities and success lies strongly with central and local government. We should always remember that when we consider the policy interventions we can make to improve their lives.
With that in mind, what can the Department for Work and Pensions do to help young people as they embark on adult life and look for the opportunities that everyone wants, such as a stable family, a job, a chance to prosper and decent accommodation? On work and training, one wonderful initiative in the past few years has been a bursary of about £2,000 for young care leavers to go to university. I know from having spoken to care leavers that it has created opportunity where there was none before. Young people also get help with accommodation and on-site help at their universities.
That is a great start, but relatively few care leavers go to university; the majority go straight into the world of work. Modern apprenticeships, which provide a new route into employment for our young people, have been a very successful Government initiative that is growing year on year, but they do not offer care leavers the same advantages as young people living at home with their families. Indeed, the system rather assumes that apprentices have a family home to live in. Having talked to care leavers who have to manage their household bills and finances on the very low initial income that new apprentices receive—about £3.50 an hour—I ask the Government to look again at the issue.
I know that the apprenticeships programme falls within the DFE’s purview, but it is also in the DWP’s interest to ensure that young people do not become unemployed. We know that young people who become long-term unemployed when they leave school are much more likely to be long-term unemployed later in life, so it is crucial for the system to help them to avoid that pitfall. I suggest to the Minister that a little upstream investment could save a lot of money in subsequent benefit payments. A few years ago, the DWP part-funded ThinkForward, a very interesting initiative to identify young people at risk of becoming NEET and support them with long-term mentoring in the years before they left school. It dramatically reduced the number of NEETs in the target group. The DWP has a good track record with this work, and I encourage it to do more.
Many care leavers start adult life on welfare, receiving help with their bills and the necessary support to have somewhere to live. It is important that we ensure that our welfare system is adapted to their needs, especially with respect to up-front accommodation costs. As hon. Members know, the shared accommodation rate gives young people in the benefits system money for a room rather than a flat, under the assumption that they live with others, but care leavers are subject to an exemption until the age of 22. That exemption is a good Government policy, but charities I have spoken to—including the Children’s Society, which gave me some very good advice before the debate—point out that it would be better to extend it to the age of 25, when a different benefit payment rate kicks in. I strongly encourage the Minister to consider such an extension, which would ensure that care leavers have no hiatus in pay to overcome. The Children’s Society estimates that it would cost about £5 million—a small cost that would be far outweighed by the good it would do.
When I was director of strategy at the Office of the Children’s Commissioner, I spent a lot of my time going around the country to talk to local authorities that had excellent care-leaving units. Some areas, particularly Trafford, had a very detailed local strategy to ensure that the personal advisers who helped care leavers worked with their colleagues in the local jobcentre. That is important for various reasons. First, a decent personal adviser will be there to give advice on how the complexities of all the new systems work. However, it should also be a two-way conversation. If a young person has left care and falls into trouble—and is perhaps trying to get their head around meeting appointments or making sure that they do the right things to be able to claim their benefits—their personal adviser will be there to walk them through the system. We have a good generation of new work coaches who are extremely helpful when someone gets into the jobcentre, but it is important for some care leavers to have advice outside of the jobcentre to make sure that they can follow the system without falling into difficulties and becoming sanctioned. They need to know what they are entitled to.
I know there is good practice going on in the country, but I also know it is not standardised. I welcome any attempt by DWP and DFE to bring together directors of children’s services and regional heads of jobcentres so that conversations can be held at a high managerial level and cascaded down to other parts of the country.
The Centre for Social Justice, for which I used to work, contacted me before this debate about a little glitch in the welfare system for care leavers taking apprenticeships. They have to wait a month for their first payment, and the CSJ suggested that those care leavers be enabled to retain their benefits for that month. Again, that bridges a gap so as to prevent young people from falling into debt when they have made the correct decision to get an apprenticeship, build their skills and move into work. Similarly, we should allow care leavers to retain housing benefit at the existing level when they move into an apprenticeship, again reducing the risk of their acquiring arrears and getting into debt.
As I wrap up, I want us to think about data. DWP, DFE and the Ministry of Justice have come on in leaps and bounds in recent years, plugging their different enormous datasets together. That means it is increasingly possible to see how children from certain backgrounds and with certain experiences go on to achieve certain outcomes. The value of that is obviously enormous. This country has very good national datasets, which means we will be able to identify which young people become long-term unemployed and what their experiences have been at school, in the care system and in childhood before that. Similarly, it will enable us to identify the young people who had poor experiences and who then went on to be successful. If we do that, we can dig down into what made the crucial difference for those people: what children’s services department, what charity, and what intervention helped change their lives. Then we can seek to extend that good practice to other areas, truly creating a wonderful learning environment.
Finally, I encourage the Minister to let her data analysts roam free over the extraordinary wealth of knowledge that is sitting in Government Departments.
I thank the Minister for her very interesting statement, and I thank all hon. Members who took the time to participate in this important debate. It is a real pleasure to speak in a debate in which there is a lot of cross-party agreement both about the challenges that young people face and about some of the solutions. I welcome that.
To our friends in the Public Gallery who are listening, I want to say that there are a lot of other Members who wanted to be part of this debate, but a debate in the main Chamber on welfare ran over. I am very grateful to the hon. Member for High Peak (Ruth George) for coming. I am also grateful to the hon. Member for Birmingham in general—the hon. Member for Birmingham, Selly Oak (Steve McCabe)—and the hon. Member for Stockton North (Alex Cunningham) for joining in.
I am particularly thankful to the hon. Member for Stockton North for acknowledging that Governments of all stripes have helped to improve the system as the years have gone by. He did not mention—neither did I—the important reform that Edward Timpson introduced, Staying Put, but we were put right by the right hon. Member for North Norfolk (Norman Lamb). I am also grateful to the Minister for detailing some more of the exemptions, opportunities and reforms that DWP has introduced to improve outcomes for care leavers.
There is, of course, more to do. I was very interested to hear the contribution of my hon. Friend the Member for Colchester (Will Quince) about how we can help to prevent homelessness. I urge the Minister to look at the shared accommodation rate. I was pleased that she said that it is now possible for young people to set up their claim before they leave the care system. I hope that support is being given to work coaches and personal advisers to ensure that young people are aware of that opportunity and that they can get through it.
We have also had an interesting debate about how we help people in jobcentres to identify young people’s needs early on. One of the ways of doing that may be to ensure better engagement by personal advisers and to set up meetings between the people who run the jobcentres and those who run the local children’s services. As a number of Members said, that is being done well in Trafford.
I very much like the idea suggested by the hon. Member for Birmingham, Selly Oak that councils should publish whether they are offering council tax exemptions for care leavers. That would be a good way of nudging some councils into doing the right thing, and it would also give councils that have already made the change the credit they deserve.
Lastly, I am delighted to hear that the DFE and the DWP are looking together at the issue of apprenticeships, with which we started the debate. I know not only that they are a great route into employment but, as the hon. Member for Stockton North said, that there is enormous potential in our care leavers. The care leavers I meet are fizzing with ideas. I see in them future businesspeople, entrepreneurs, doctors, teachers and the like, but we must ensure that they fulfil that potential. I hope that this debate has brought to the fore a number of the ways in which DWP can play its part in ensuring that those young people get the best out of life.
Question put and agreed to.
Resolved,
That this House has considered the Department for Work and Pensions’ support for care leavers.
(6 years, 9 months ago)
Commons ChamberI am pleased to contribute to this debate—I have been looking at proto-plans for universal credit that go back about five years, and it is a pleasure to work with the right hon. Member for Birkenhead (Frank Field), who is also a friend, on the Work and Pensions Committee.
Let us go back to where this all began and the reason why, in principle, we have cross-party agreement on universal credit. The previous system was not good enough. It was set up with good intentions, and it was a way of trying to take people out of poverty by giving them handouts. However, the way it was set up meant that many people were discouraged from taking on more work, which inhibited their ability to move on in life, improve their situations, and support their family. Universal credit was born out of that realisation, and from a desire to build a welfare system that would slowly remove benefits as people moved into work, and actively encourage people to take more hours and be better off.
We also want to create a system in which the world of life out of work mirrors the world of life in work. That means that people are in work to find work, and there is an expectation that they will look for work and sign a contract to that effect—the claimant commitment. It means that benefits will be paid on a monthly basis, so that when people move into work and monthly employment, they will be ready for that. I am afraid I cannot accept the argument that some people will never be able to cope on monthly payments. I feel that is extremely insulting to many people.
I disagree with the hon. Lady. It is.
We now have a system coming into being—
The hon. Lady can shake her head, but it is true. It is insulting to people to say that they will never be able to cope on monthly payments. I challenge her to have that conversation with the many people who are looking for work, because they would be insulted by it. [Interruption.] It is unfortunate that she laughs at that because it is true. [Interruption.] Look, this is a very insulting way of carrying on.
Anybody can manage on a monthly payment of £2,000, but managing on a monthly payment of £500 is rather more difficult.
The hon. Lady will recognise that there are lots of people who do manage to do that. [Interruption.] I have had enough of this Opposition.
I am delighted to say that under the universal credit system there is personal budgeting support. No one on the Opposition Benches has referred to it, but it offers money advice to help people with a four-week payment and offers alternative payment arrangements so they can have their money paid direct to their landlord. I am very sorry to hear that the hon. Member for Stretford and Urmston (Kate Green) found that that was not working well in her jobcentre. I have spoken to people in my jobcentre and I was pleased to see that they were completely on top of how the system worked.
Within universal credit, of course, there are a lot of problems, which have been talked about today and on other days, emanating from the long wait people experience when coming into the system. At the start of the process, far too many people have been waiting for far too long. The Select Committee report has drawn on that. Since the first roll-out phase, however, a number of improvements have been made thanks to the test and learn system. The landlord portal was very favourably received by people who gave evidence to the Committee, saying it would greatly help. We have also recently seen the initial evidence interview, the once and done process, which means that more information can be brought into the system straight away. These measures are all making improvements. I say to Opposition Members that we cannot learn unless we test.
My hon. Friend is a great expert on this subject and I would like to hear more about the areas where he considers improvements have been made.
If Members do not want people to speak, please say so now and I can start to take them off the list. That is what we are doing to each other. I do not mind, but when Members do not get in, please realise what is going on here.
Thank you, Mr Deputy Speaker.
We are now left with a system in which there is a six-week wait for the initial payment. It is worth reminding the House why that exists. The very model of universal credit is about having a month-long assessment period in which the system understands how much you are earning and adjusts your payments accordingly. There must then be a calculation time which works out exactly how much people are owed. At the moment, that is a week. However, when we met Neil Couling, the DWP head of universal credit, he said that they were working to bring that down. I believe it can and should be brought down as a matter of urgency.
At the other end, of course, we still have a week’s waiting time. I do not disagree with the Government very often, but my colleagues from my previous roles know that I do not believe that those waiting days should exist. There have always been some waiting days in the system—three days—but the extension to four, which was not made by this Secretary of State or under this Chancellor of the Exchequer, should not have been introduced. That is why my Committee has called on the Government to remove the seven waiting days. We should not pause the roll-out, but we should make that adjustment.
(6 years, 9 months ago)
Commons ChamberLet me be absolutely clear about what we are trying to achieve here. Many people in Scotland and across our country who are recovering from health conditions or who have disabilities really want to work. We are doing everything that we can to provide them with tailored support, so that they can work and that they can play the full part in society that they want to play and that we want to enable them to do.
Despite record employment, only one in every 100 people in the ESA work-related activity group leaves the benefit system each month. Will the Minister tell us what more she and the Department are doing to help those people into work?
My hon. Friend is quite right to point out the unfair discrimination against people with disabilities in this country who really want to make a contribution to society and who really do want to work. We are doing everything we can, including working with employers through the Disability Confident campaign and providing people seeking employment with the tailor-made support that they need to play their full part in society.
(6 years, 10 months ago)
Commons ChamberI am not going to give way again, as 90 people have put in to speak.
The UC equivalent of the family element in tax credits was also abolished. The Government’s equality analysis showed that women and people from black, Asian and minority ethnic communities will be most adversely affected by these work allowances cuts. Let us recall what the principles of UC were and then consider that the Institute for Fiscal Studies stated at the time that the cuts to work allowances meant the principle of making sure work always pays was lost. The Government’s claim that UC is leading to more people getting into work is misleading, as it is based on 2015 data, before the work allowance cuts came into effect.
The current Chancellor’s attempt to redress some of the damage of these cuts by reducing the UC taper rate in last year’s autumn statement has had a marginal effect. Members may recall that he reduced the rate from 65% to 63%, so that for every £1 earned over the work allowance, 63p of UC support is withdrawn. That is a far cry from the 55p rate envisaged when UC was first being developed. On that basis, the Resolution Foundation estimated that some families will lose £2,600 a year because of these cuts.
I am sorry but I am not going to give way again, as I need to make progress, with 90 people having put in to speak.
This summer, the Library analysis that I commissioned showed the real-terms impacts on different family structures and for different income groups. It found that a single parent with two children working as a full-time teacher will be about £3,700 a year worse off in 2018-19 compared with 2011-12.
So where are we are up to now? The most recent statistics show that there are currently about 600,000 people claiming UC, over a third of whom are receiving support via the full service. The roll-out of UC over the next six months will see the overall case load rise to just under 1 million, which is a 63% increase. On average, 63,000 people a month may start a new UC claim before January 2018, and by 2022 we expect about 7 million people to be seeking support from the programme. We are at a turning point in the Government’s flagship programme, the roll-out of which is currently being ramped up dramatically.
On top of the design flaws and cuts that I have just mentioned, several other issues have emerged. Perhaps the most pressing is the Government’s decision to make new claimants wait six weeks before they receive any support. Four weeks of that is to allow universal credit to be backdated, plus there is an additional week, as policy, and then a further week waiting for payment to arrive. This “long hello”, as some have called it, is believed to be one of the primary drivers of the rising debt and arrears we are now seeing. Citizens Advice reports that 79% of indebted claimants
“have priority debts such a rent or council tax, putting them at greater risk of eviction, visits from bailiffs, being cut off from energy supplies and even prison”.
At the start of the year, Mr James Moran from Harthill in my constituency qualified as an HGV driver and managed to find work on a zero-hours contract as a driver while also receiving universal credit—exactly the sort of scenario under which universal credit was supposed to work better. Not long after gaining employment, however, Mr Moran was sanctioned, despite being in employment. As he started the process of appealing the sanction, he suffered a stroke, which meant that he was no longer able to work as a driver. As the sanction was still in place, he returned home from hospital with no means of receiving an income. Despite getting some help from his elderly parents, Mr Moran struggled with no money whatever for more than a month. He then suffered a second stroke. Mr Moran has advised me that the doctors who treated him in hospital at the time of his second stroke admission told him that the low blood pressure that caused the second stroke was almost certainly caused by malnourishment. That malnourishment was a direct result of a DWP sanctioning error, forcing Mr Moran to live without an income—to live on fresh air.
I wrote to the Secretary of State about the case on 1 September and have repeatedly chased his office for a reply, but I have received nothing in return to date. The six-week minimum wait appears to be built into the Secretary of State’s correspondence turnaround as well. I do not take that personally, because I gather from press reports that the Chair of the Select Committee on Work and Pensions has had similar problems with getting the Secretary of State to put pen to paper. Perhaps he will now chase a reply.
The revelation last week that our constituents on universal credit had to pay 55p a minute was a further dent to the public’s confidence in this Government’s handling of universal credit. It should not really have been much of a revelation, as my hon. Friend the Member for Glasgow South West (Chris Stephens) has been raising the telephone tax issue for months—and what a win for my hon. Friend this morning, as, following his ten-minute rule Bill in February, the Government have finally announced that the phone line will be free. But why must we wait until the end of the year for all telephone charges to be scrapped? The Government should bring in that welcome concession now.
Did any SNP Members, when they raised this issue, ever point out that there was a call-back service?
I am grateful for the opportunity to speak in this debate, Madam Deputy Speaker.
I have been following the progress of universal credit since its inception about 10 years ago. The shadow Secretary of State asked, at the start of her remarks, how did we get here? How did we get to a place where there is a new benefit system on the table whose principles are agreed by most in this House? Those principles have been agreed because they make sense and because the welfare system we inherited was a disaster. It has been a disaster since its birth in 2003: it cost £1.9 billion in errors, left hundreds of thousands of people with too little money and created a system that paid people not to take work. It left people worse off if they took on more work. We saw a taper rate that left only 4p in the pound when some people worked more than 16 hours a week. This was and is a benefit system that spends tens of billions of pounds to discourage people from working more hours. It is a disgrace and it needs to be replaced.
From those key mistakes, universal credit has learnt how to roll out a benefit and what sort of benefit to build. The sort of benefit to build is one that encourages people to move into work and to take on more work when they do; and one that has a taper rate that leaves people not with 4p in the pound, but 37p. It is a system that has learned from its predecessor. In particular, an important lesson has been learned about how to introduce a big new benefit. There is no big bang in the system. This is a “test and learn” process. As my right hon. Friend the Secretary of State said, we are moving from 8% roll-out to 10% roll-out at the start of next year, meaning that the system is evolving all the time. We are seeing its evolution before our eyes. We saw it today with the change to the phone lines. We have seen it with the advance payments system and the eligibility criteria for people to get their payments paid directly to landlords. Those are all improvements.
Hon. Members must understand, however, that we cannot have a “test and learn” environment if we are not testing. We have before us an opportunity to roll out a system slowly and get it right. Opposition Members want a pause. There has just been a pause in the summer—no new jobcentres were taken on in August and September—and there will be another pause in January. The pauses are built into the system already, and the system is using them as opportunities to develop. Labour introduced a benefit in 2003 that was a mess, and it introduced it badly, and now it is trying to make a mess of its successor.
(6 years, 10 months ago)
Commons ChamberThe hon. Lady makes a very good point; indeed, we are looking at precisely that. There are lots of pots of money out there—PIP and Access to Work, which she mentioned, are just two—but very little reference between them. We have been working on that and we hope to make some announcements shortly.
I am pleased to announce to the House that six contracts between the Department and the successful suppliers to the Health and Work Programme were signed on 29 September.
It is clear that the Health and Work programme presents an opportunity to bring a lot more disabled people into work. Will the Minister tell the House what requirements are being put on contract providers?
The key to the programme is that participants will receive much more personalised and tailored support. We need to provide bespoke things to individuals who have complex needs if we want them to be successful. We will be looking for providers to forge links with employers, nationally and locally, but also with health and social care and other local services.
(7 years, 1 month ago)
Commons ChamberUrgent 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.
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I thank the hon. Gentleman for his recognition of the work that has been done to help those who were working miners. I think I am fairly confident in saying that employment numbers and unemployment numbers have moved in the right direction in his constituency over the past seven years, which may reflect the changing political nature of his constituency. The staff at the Bolsover site are moving to Staveley. Jobcentres do have a valuable role to play, as I have outlined, but it is right that we should have modern facilities and that is what these plans involve delivering.
Obviously, we are having this debate in the context of record employment. On both sides of the House, we should be welcoming the fact that fewer people are unemployed now than ever before. That has brought with it enormous social benefits—[Interruption.] If the hon. Member for Garston and Halewood (Maria Eagle) is patient for a moment, she will hear the question. In Wirral West, for example—
Order. I am sorry, but I am afraid that the hon. Gentleman needs to ask a question not in a moment or two but straight away, because many other colleagues are waiting to contribute. The hon. Gentleman is new, and he must get used to it. I want him to get to his question.
I will, Mr Speaker. The important thing is that we ensure that people have the support they need, rather than be obsessed with bricks and mortar.