Oral Answers to Questions
Alison McGovern Excerpts(6 days, 1 hour ago)
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Dr Neil Shastri-Hurst (Solihull West and Shirley) (Con)
The Minister for Employment (Alison McGovern)
The Budget made the choices needed to fix the foundations of our economy. Taking those into account, the Office for Budget Responsibility forecasts that unemployment will fall to 4.1% next year and remain low until 2029. We are taking action to support jobs and growth, and to transform employment support to get Britain working.
Dr Shastri-Hurst
Will the Minister answer a simple question: since the Budget, have unemployment rates gone up or down?
Alison McGovern
I have just given the OBR’s assessment. It is worth noting that there are still a significant number of vacancies in the economy. We are determined that the Department for Work and Pensions will be reformed to serve employers better, so that they can fill those vacancies.
Deirdre Costigan (Ealing Southall) (Lab)
Many disabled people in Ealing Southall are unnecessarily unemployed purely and simply because their employer refuses to respond to their request for the reasonable adjustments that they need to do their job. Will the Minister consider strengthening the right to reasonable adjustments, so that workers receive a response within a specified number of weeks, in line with the recommendations in the groundbreaking disability employment charter?
Alison McGovern
I thank my hon. Friend for her important question. I know she met my colleague the Minister for Social Security and Disability recently, and I am sure that their conversations were productive on this important point.
Jerome Mayhew (Broadland and Fakenham) (Con)
I recognise what was behind the increase in the national minimum wage for 18 to 21-year-olds, but I have been surprised by the reaction of businesses in my constituency. Those businesses have told me, in terms, that they will reduce the number of 18 to 21-year-olds they employ, because there is a higher failure rate associated with their employment, as they are new to the workforce, yet employing them will cost the same as employing those who are older. Does the Minister recognise that issue, and what will she do about it?
Alison McGovern
Anybody who sees that, in the British economy, there are nearly 1 million young people out of work or training—not doing anything—would say that is a dreadful legacy left by the previous Administration. That is why the youth guarantee is at the heart of our “Get Britain Working” plan.
Mr Speaker
Order. Before I call Dr Jeevun Sandher, may I offer him my congratulations on his engagement?
Dr Jeevun Sandher (Loughborough) (Lab)
That is incredibly kind of you, Mr Speaker.
Young non-graduates are finding it far harder to get good, well-paid jobs. The number of young people not in education, employment or training has nearly doubled since 2013, and youth unemployment is at its highest rate in almost a decade because young people are not getting the skills they need. On top of that, they are becoming far sicker; one in three young people currently has a mental health problem, and that figure is rising. What are the Government and the Department doing to give young people the skills and the health support that they need to get good, well-paying jobs?
Alison McGovern
That question demonstrates the quality analysis I would expect from recently engaged economists on the Labour Benches. The Minister for Skills and I have been working closely on the youth guarantee, because we know that it is only by colleges and jobcentres working in hand in hand that we will get young people the skills that they need to succeed.
Helen Whately (Faversham and Mid Kent) (Con)
In the run-up to the election, Labour clearly committed to an employment rate target of 80%, but in the past few weeks I have noticed a shift in language from “target” to “ambition”. Will the Minister clear this up for us: are the Government still committed to the 80% employment target, or will that be another broken Labour promise?
Alison McGovern
I make no apologies for having ambition for people in our labour market. The figure was always an ambition, because Labour Members want our jobcentres to shift away from pointless admin towards real ambition for everybody who steps through the door.
Helen Whately
I think we all heard that loud and clear: Labour has ditched its employment target. That is already another broken Labour promise. However, I feel for the Minister. How can she be expected to boost employment when her Chancellor is busy taxing jobs and then shrinking the economy? The Government have destroyed business confidence, have put up taxes on jobs, and are piling red tape on employers. Which of those measures will help her to deliver that employment “ambition”?
Alison McGovern
I have brought forward proposals to get Britain working, together with the Secretary of State for Work and Pensions, the Secretary of State for Education, and Secretaries of State right across Government. That is how we will plot a course towards our ambition of an 80% employment rate. I thank the shadow Secretary of State for being kind enough to refer to our “Get Britain Working” plans as
“rearranging the deckchairs on the Titanic”.
It was very brave of her to acknowledge that the last Government’s legacy for us was a sinking ship.
Kanishka Narayan (Vale of Glamorgan) (Lab)
Chris Murray (Edinburgh East and Musselburgh) (Lab)
The Minister for Employment (Alison McGovern)
We have all been there, Mr Speaker. Businesses are crying out for staff, yet only one in six employers uses jobcentres. Our “Get Britain Working” White Paper will revolutionise employment support to give employers the workforce they need. The support will include a new jobs and career service, designed around employers’ needs. We are also launching an independent review of the role of employers in promoting healthy and inclusive workforces.
Chris Murray
Some of us are still getting our heads around our new jobs, Mr Speaker. Edinburgh is a booming economy that has all the raw materials to thrive in the years ahead—especially because we have some of the growth industries that the Government have identified as being key to the future of the economy. However, businesses in my constituency are crying out for workers with the skills that they need. What are the Government doing to ensure that the workforce has the skills that businesses need?
Alison McGovern
My hon. Friend describes exactly why we need a local tailored service: so that all employers can properly engage with jobcentres and work together to find the skilled members of staff that they need. I agree with him that Edinburgh offers so many opportunities to our young people. I know that all my DWP colleagues in Edinburgh will work with him to get business the skilled staff that they need.
Jim Allister (North Antrim) (TUV)
E-commerce is a growing part of our economy. Will the Minister spare a thought for small-scale employers in my constituency and throughout Northern Ireland, who. since Friday, have seen their supply chain clobbered by the imposition on Northern Ireland of the EU’s general product safety regulations? Because of the extra paperwork and the need to pay an agent in Northern Ireland, many suppliers in Great Britain are now refusing to sell to Northern Ireland. Will this Government ever take steps to reintegrate Northern Ireland into the internal market—
Mr Speaker
Order. We have to shorten questions a little, so that I can get others in.
Alison McGovern
I am not entirely sure that the issues the hon. and learned Gentleman raises are completely within my responsibilities. However, DWP colleagues in Northern Ireland work closely with business, and I am sure that they will continue to do so, whatever the prevailing economic circumstances.
Antonia Bance (Tipton and Wednesbury) (Lab)
David Taylor (Hemel Hempstead) (Lab)
The Minister for Employment (Alison McGovern)
More people in good jobs is the foundation of our approach to tackling poverty. That is why we have set out the biggest reforms to employment support in a generation, on top of extending the household support fund, introducing a fair repayment rate for universal credit, and the extensive work of the child poverty taskforce.
David Taylor
In my constituency of Hemel Hempstead, according to figures given to me by the local charity DENS, there has been a 1,000% increase in the number of people needing to use food banks over the past 10 years. Meanwhile, another institution, the Hemel Hempstead community fridge, sees queues an hour before it opens, in scenes akin to something out of Soviet Russia. Does the Minister agree that there are few more shameful examples of the last Government’s record on poverty? [Interruption.] I cannot quite hear the mutterings of Conservative Members, Mr Speaker—I think the word they were looking for was “sorry”. Will the Minister also outline further steps that we can take to reduce the need for food banks to exist at all?
Alison McGovern
The statistics my hon. Friend has read out are, I am sorry to say, consistent with those of the Trussell Trust, which distributed 61,000 emergency food parcels in 2010. Last year, the figure was 3.1 million. That is not acceptable, which is why we have committed to tripling investment in breakfast clubs to over £30 million and—as I have said—introduce our fair repayment rate for deductions from universal credit, because if a person is out of debt, they are out of danger. We are increasing the national living wage to £12.21 an hour from next April, which will boost the pay of 3 million workers. That is also why the child poverty taskforce is working very hard.
Ellie Chowns (North Herefordshire) (Green)
Benefits such as pension credit and disability living allowance are important in assisting people to stay out of poverty, but delays in processing applications push people into poverty. One constituent of mine is an 82-year-old gentleman who has spent more than 16 weeks waiting for his application to be processed, and another is the mother of a disabled child who has waited more than 18 weeks and is now being told that it will take an extra 25 weeks for a mandatory reconsideration. What steps is the Minister taking to reduce delays in processing applications for pension credit and other state support, in order to help lift households out of poverty?
Alison McGovern
I thank the hon. Lady for the question that she rightly puts to this House. We have increased the number of staff working on pension credit by over 500, and are working very quickly to deal with those backlogs and delays. As she says, we need to get through those backlogs.
Mr Andrew Snowden (Fylde) (Con)
The Minister for Employment (Alison McGovern)
We still have more than 800,000 vacancies in this economy, and businesses are crying out for staff. That is why, through our reform programme, we are determined that the DWP will serve business better. I look forward to working with Members across the House to make that happen.
Adam Jogee (Newcastle-under-Lyme) (Lab)
Sir Desmond Swayne (New Forest West) (Con)
Alison McGovern
I refer the right hon. Gentleman to the OBR report that says that overall, employment will go up.
Douglas McAllister (West Dunbartonshire) (Lab)
How does the Secretary of State envision the future of jobcentres in my constituency and across Scotland, and what role will technology play in that?
Mr Paul Kohler (Wimbledon) (LD)
Alison McGovern
The hon. Gentleman is right to raise the condition of children living in poverty in this country. That is why, as I mentioned earlier, the child poverty taskforce is doing extensive work on the issue.
Kate Osamor (Edmonton and Winchmore Hill) (Lab/Co-op)
According to the 2022 Migration Observatory report, over 200,000 children are likely to be in families with no recourse to public funds. As the 2022 Work and Pensions Committee report highlighted, those families face particularly tough circumstances without access to benefits. Will the Minister confirm whether the child poverty taskforce is engaging directly with affected families to understand the challenges they face?
Alison McGovern
The child poverty taskforce is considering all children across the UK in all aspects of our child poverty strategy. We recognise the distinct challenges of poverty faced by children in particular groups, such as migrant children, disabled children and others. We are engaging directly with families affected by poverty. We recognise that the causes of child poverty are deep rooted and we will look at all levers to make change.
Helen Maguire (Epsom and Ewell) (LD)
In Epsom and Ewell, local charities such as the Sunnybank Trust are seeing a lack of employment opportunities for people with learning disabilities. In fact, only 6.9% of people with learning disabilities are currently in paid work. What measures is the DWP taking to support employers to help individuals with learning disabilities to get into work?
Food Banks
Alison McGovern Excerpts(1 month ago)
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The Minister for Employment (Alison McGovern)
It is, as ever, a pleasure to serve under your chairship, Ms Vaz. I thank the hon. Member for Aberdeenshire North and Moray East (Seamus Logan) for bringing this important debate. It is testament to his judgment and to the importance of this issue that fully 20 Members of Parliament have chosen to speak; in fact, we could have gone on for hours, because of the importance of the issue.
I will deal briefly with a couple of questions that were put to me in the debate. The hon. Member for Strangford (Jim Shannon), who is no longer in his place, asked if I will meet him, which of course I will. The hon. Member for Stoke-on-Trent North (David Williams) also asked that I meet the Stoke Members of Parliament to discuss the issue, which of course I will. The Lib Dems spokesperson, the hon. Member for Chippenham (Sarah Gibson), asked about asylum seekers and where they will fit in, and I will ask the Home Office Minister responsible for asylum seekers to write to her on that subject, because she raises an important point.
Labour’s election-winning manifesto said:
“Good work will be the foundation of our approach to tackling poverty and inequality. We will create more good jobs, reform employment support, and make work pay so that many more people benefit from the dignity and purpose of work.
Labour is committed to reviewing Universal Credit so that it makes work pay and tackles poverty. We want to end mass dependence on emergency food parcels, which is a moral scar on our society.”
And these are my words: no one in the United Kingdom should have to beg for food.
Our first Budget in 14 years was a down payment on our approach to tackling poverty. As hon. Members have mentioned, we extended the household support fund for a further year, to help people currently struggling with the cost of essentials, including food. We saw a pay rise for more than 3 million lower earners, with a 6.7% increase to the national living wage, making work pay. We introduced a fair repayment rate on deductions in universal credit—a point that is very important to me—which will help about 700,000 of the poorest families with children to keep more of their universal credit. As Members have also mentioned, the roll-out of breakfast clubs and improved access to childcare will help parents have more choice in order to get better jobs.
The manifesto commitment and what we saw in our first Budget explains our approach to the issue. These first steps will make a real difference to people’s lives, but the scale of the challenge is huge.
Members have mentioned what has happened to emergency food help over the past five years. Ms Vaz, you and I have been around a while now, and you will remember that in 2010 the Trussell Trust distributed 61,000 emergency food parcels. Last year, it was 3.1 million. Either my maths is wrong, or that is a fiftyfold increase. I simply ask, what happened in those 14 years? I think Members have set out the case well—the combination of failed economic and social policies.
In Opposition, on the Back Benches and from the Front Bench, I travelled around the country speaking to people running food banks and supporting those who needed them, to try to understand what on earth was going on with this massive increase in the need for emergency food help. Before the pandemic, my experience was that families were experiencing really significant challenges in their budgets. Post pandemic, deteriorating help has made it 10 times worse.
In Government, I have spent time with many of our volunteers who are addressing the family incomes crisis that we are facing. From listening to them, I know this: not one of those volunteers wants emergency food help to go on being given in this way for ever; not one of them wants our fellow citizens to be so vulnerable; and every single food bank volunteer that I have met—a number of whom have volunteered because they needed help themselves at one stage—wants a country where people live never in destitution and always with dignity.
I want to talk about children. About 800,000 children live in households in the United Kingdom that have used a food bank in the last 12 months. That is a devastating statistic. That does not just harm children today; it has a lasting effect on their life chances—their long-term health, their education and their employment outcomes. They cannot fulfil their potential if they are going to school hungry or worrying about the family at home, and we will not fulfil our potential as a country if the next generation is held back.
Ensuring that every child is safe, well fed and has chances and choices in their life is not just a moral imperative, but an economic one too. It is a priority for myself and for the Secretary of State. That is why we have got the child poverty taskforce up and running, led by the Secretary of State for Work and Pensions alongside the Education Secretary. We know that the causes of child poverty are wide-ranging and we are looking at all the levers we can pull to increase family incomes, reduce family costs and give our kids the best start in life.
Only yesterday, we met employers, trade unions and think-tanks to discuss options to increase incomes and family resilience in low-income households. We are hearing from a very wide range of people and organisations, including those who are experiencing poverty today. That approach will inform our strategy, which will be published in the spring, but despite the dreadful inheritance and the £22 billion hole in public finances, we have not waited until next spring to help people in desperate need of support.
The cost of living crisis does mean that pressure on household budgets is at an all-time high. We have seen inflation spikes, including in energy bills and the cost of shopping. Those are not luxuries that anyone can easily cut out; everyone needs a warm home and everyone needs the basics, which is why—as mentioned—within two months of taking office we announced a six-month extension to the household support fund. We have extended it again for a further year.
Members have mentioned the need to consider the future of the household support fund and of crisis support. I look forward to having those conversations with Members. We will invest £1 billion, including the Barnett impact, to extend the household support fund and to maintain the discretionary housing payment fund for a further year. I know that such support is a lifeline for many, and I am grateful to all the charities and local authorities who work hard to distribute it.
Douglas McAllister
On local charities, will the Minister join me in congratulating Old Kilpatrick Food Parcels, which last week was awarded the King’s award for voluntary service for 2024? That accolade recognised its outstanding work in support of communities in West Dunbartonshire, providing food and comfort.
Alison McGovern
I send my congratulations to those receiving that wonderful award in West Dunbartonshire. Well done to them.
We will always need some form of crisis support. My worry is not just the consequences of day-to-day crisis, but the chronic challenge. People need an income that they can live on, and that is why in last month’s Budget the Chancellor announced that we will introduce a fair repayment rate to help households on universal credit who are having deductions made from their benefit keep more of their money to help them budget for essentials. More than 1.2 million households on universal credit will benefit from that—a reduction in the deductions cap from 25% to 15%, which is worth about £420 a year on average. As my dad used to say, “Out of debt, out of danger.”
That will make a big difference for some of the poorest people in our country, but we understand that more change will still be needed. That is why we are committed, as Members have mentioned, to reviewing universal credit. I know, and Beveridge wrote in his report, that social security can only work well when we have policies for full and fulfilling employment. We have to make work pay. It is ridiculous to have a queue at the food bank door when our businesses are crying out for staff. We have millions of people locked out of work, not getting the support they need to build a better life.
Alongside the reforms I have set out, therefore, we have set an ambitious long-term goal of an 80% employment rate, towards full employment. To achieve it, we have kick-started the biggest reforms to employment support for a generation. We will build a new jobs and careers service to give people proper, tailored support to help them get on in work. Our White Paper will bring forward a youth guarantee for our young people, to ensure that they are not left on the scrapheap. We will empower our local areas, towns and cities so that they can be in the lead with their work, health and skills plan. We will set out all that detail in our “Get Britain Working” White Paper shortly. I cannot wait to talk to Members and colleagues about it.
I want to make one more point about making work pay. It is not enough to get people into any job; it must be a good job. In 2022, 2.3 million people lived in a household that had used a food bank in the past year, and 40% of them were living in families where at least one adult worked. That is not acceptable to me. Too many people in our country are being denied the dignity of decent and fair work. Too many are stuck in insecure jobs with unpredictable working patterns. That is why we introduced our Employment Rights Bill.
I do not agree that we have to make a choice between high unemployment and poor-quality work. We will have the biggest upgrade to rights at work for a generation, including an end to exploitative zero-hours contracts, which often see people not just low-paid, but unsure about what pay they will get next week. That stress and instability tip people into destitution. As I said, we are also putting up the living wage, which will benefit 3 million workers and be worth £1,400 next year for the average full-time worker.
In conclusion, as I have set out—and as Members know from their experiences talking to people in their constituencies—the inheritance of this Government could hardly be worse. It is not really the 3.1 million bags of shopping handed out to people in desperate need that is the problem, but the social and economic failure that that represents. We cannot accept it.
Tackling poverty and ending mass dependence on emergency food parcels is not just a manifesto commitment that we made to the British public; it is our priority every day. It is vital to all this Government’s missions to break down barriers to opportunity and to deliver economic growth, because you cannot grow a country on shaky foundations. The action we have already taken to support those most in need—to spread opportunity and make work pay—shows that we will take that challenge head-on. I look forward to working with all Members present to deliver that change.
Oral Answers to Questions
Alison McGovern Excerpts(1 month, 1 week ago)
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Torcuil Crichton (Na h-Eileanan an Iar) (Lab)
The Minister for Employment (Alison McGovern)
After 14 years of Conservative Government, 8 million adults and 4.3 million children were left in poverty. Among other things, £240 million was recently announced in the Budget to support better work so that people can get the dignity of a good job and the security of a proper wage. Details will soon be available, as the Secretary of State mentioned, in our “Get Britain Working” White Paper.
Torcuil Crichton
I thank the Minister for that answer and the assurance from the Dispatch Box that the maximum level of debt repayment from a household’s universal credit is to be reduced from 25% to 15% each month. That is great news for Scottish families, who could benefit by an average of £420 a year. Much of that debt management is carried out at the DWP centre in Stornoway in my constituency, and some 65 of the 80 staff there are involved in responding to calls nationally. That is a good example of job dispersal, and their service is high quality and is now involved in reducing poverty. I encourage the Minister to come and meet the staff there, to meet clients and to see the operation for herself.
Alison McGovern
My hon. Friend mentions the new fair repayment rate, which is another crucial part of the Budget and a downpayment on the action that we will take on poverty. I am fond of an invitation to Scotland, and I will happily accept that one.
Mike Martin (Tunbridge Wells) (LD)
Lewis Cocking (Broxbourne) (Con)
The Minister for Employment (Alison McGovern)
Jobcentres serving the Broxbourne constituency and elsewhere will change following the “Get Britain Working” White Paper, which has already been mentioned. This fundamental reform will have three parts: a new public employment service to get more people into work and to help them get on in work; a joined-up work, health and skills plan; and a guarantee for young people aged 18 to 21.
Lewis Cocking
The Budget has made it even harder for small businesses in my Broxbourne constituency to create jobs. What can the Minister do to make sure that jobcentres connect with local businesses to help those who are looking for work to find sustainable employment?
Alison McGovern
I thank the Minister for his question—[Interruption.] Honestly, I am still getting used to being on this side of the House.
The hon. Gentleman is absolutely right that jobcentres everywhere need to be locally responsive to employers, and that we need to provide an excellent service to local employers. If he has further thoughts on how we can make that work in his constituency, I would be very happy to discuss it with him.
Munira Wilson (Twickenham) (LD)
Mrs Emma Lewell-Buck (South Shields) (Lab)
The Minister for Employment (Alison McGovern)
As well as putting in place breakfast clubs that mean children are ready to learn, and as well as the fair payment rate—we have discussed that—which will stop families being tipped into destitution by debt, the ministerial taskforce, chaired by the Work and Pensions and Education Secretaries, will publish the child poverty strategy in spring 2025, using all available levers across government to bring about an enduring reduction in child poverty in this Parliament, as part of a 10-year strategy for lasting change.
Mrs Lewell-Buck
We know that the previous Government presided over shameful levels of child poverty, including nearly 500,000 children who are eligible for free school meals but who are missing out. Will my hon. Friend, alongside the Education Secretary, urgently look at the proposal by Feeding Britain for auto-enrolment to free school meals as part of the single application process for families claiming UC?
Alison McGovern
One person who has never looked the other way when people were facing poverty in this country is my hon. Friend. Through her innovation, she has ensured that household food insecurity is measured properly, and I pay tribute to her efforts. I have listened to what she said about Feeding Britain, and I will take that as an input into the child poverty taskforce. I hope that she and Feeding Britain will meet me to discuss how we can take that forward.
Tom Hayes (Bournemouth East) (Lab)
The Minister for Employment (Alison McGovern)
Helping parents to have fulfilling and sustainable work helps our economy and prevents child poverty. As we have mentioned several times, the “Get Britain Working” White Paper will rewrite employment policy and set our ambition for an 80% employment rate, but we will not get there without parents.
Tom Hayes
In recent weeks, I have met the DWP in Bournemouth and advice agencies including the citizens advice bureau for Bournemouth, Christchurch and Poole. Advice agencies welcome the record increase in carers allowance that was announced in the Budget. They and in-work parents with disabled children have also asked about the transition from child tax credit to universal credit. That may be a matter for the “Get Britain Working” White Paper, but can the Minister say how the Government will further support such parents to work and earn, and flexibly meet their families’ needs?
Alison McGovern
I thank my hon. Friend for bringing this matter to the House, and I pay tribute to all those he has worked with to understand the challenge that we face. He is right that we will take this forward through the “Get Britain Working” White Paper. Citizens Advice is playing an important role in supporting that work, and the work of the child poverty taskforce.
Alan Gemmell (Central Ayrshire) (Lab)
Josh Dean (Hertford and Stortford) (Lab)
The Minister for Employment (Alison McGovern)
There have been changes to ensure that referrals are GDPR-compliant, but I will happily discuss this issue with my hon. Friend. The very best jobcentres are closely linked with local support organisations, and we must ensure that that is the case everywhere.
Rosie Duffield (Canterbury) (Ind)
Given the new Government’s collective condemnation of the two-child limit over the eight years since it was introduced, which includes condemnation from many Government Members on Select Committees, will they at the very least commit to scrapping its heinous, sexist and frankly disgusting rape clause element?
Alison McGovern
The hon. Lady raises some of the worst aspects of the consequences of 14 years of Conservative Government. We will consider all those issues through the child poverty taskforce.
Dan Aldridge (Weston-super-Mare) (Lab)
Furniture Poverty
Alison McGovern Excerpts(1 month, 2 weeks ago)
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The Minister for Employment (Alison McGovern)
As ever, Sir Roger, it is a pleasure to serve under your chairship. I thank my hon. Friend the Member for North West Cambridgeshire (Sam Carling) for securing this debate and for the very important work that he has done to support the Renters’ Rights Bill, which will make a big difference to the experience of people living in privately rented homes.
On behalf of us all, may I congratulate the hon. Member for East Grinstead and Uckfield (Mims Davies) on her new appointment? She is right to say that she and I have debated these issues many times. I will miss doing so, and I know that many of my colleagues in the DWP miss her. We wish her all the very best in her new role.
The current level of poverty is unacceptable: 1.3 million more people are in poverty than in 2010. Poverty damages lives in so many ways, as we have heard this afternoon. People simply cannot fulfil their potential when struggling to pay for basic essentials, or in many cases going without them. I am determined that we will take steps to put that right.
Good work will always be the foundation of our approach to tackling poverty. Hon. Members will know that we had a manifesto commitment to bring forward changes in this area. We will shortly publish the “Get Britain Working” White Paper, which will announce our reforms in that area. We will have a new service to support more people to enter, remain and do better in work, and a youth guarantee, with increased join-up of employment and health, which are causing so many challenges in this area. Through our plan to make work pay, we will ensure that we create opportunities for all by tackling low pay, poor working conditions and job security. This is a truly ambitious agenda to empower working people and grow our economy.
We want to protect living standards, and wages are important in doing that. The national wage introduced by the new Labour Government back in 1999 has had a transformative effect on the fortunes of working people. In last week’s Budget it was announced that the national living wage will rise to £12.21 an hour from next April, boosting the pay of 3 million workers. That is an increase of 6.7%, worth £1,400 a year for a full-time worker, helping us to make progress towards a genuine living wage.
Hon. Members have mentioned the child poverty taskforce. I will take today’s debate as a submission through the child poverty taskforce process, because we have shown how interconnected many of the issues are. It is shameful that in a rich country such as the UK, 4 million children were living in relative poverty last year, and that 800,000 children have used a food bank in the past 12 months. As has been said, the End Child Poverty campaign has suggested that 1.2 million children were in furniture poverty in 2022. That is just unacceptable. It scars children’s lives now and can damage their long-term health, education and employment outcomes. It holds our country back, and we are determined to see change.
I hope it is helpful to hon. Members if I give a brief update on the child poverty taskforce, which is working to publish a comprehensive and ambitious child poverty strategy in the spring. Last month, we published a framework to set out how we will develop the strategy, harnessing all available levers because, as so many Members have said, policy in one area affects another. We want to develop the strategy with exactly that in mind. We have four key themes: incomes, costs, increasing financial resilience and getting better local support. On that note, I recently visited Glasgow, where the city council is doing excellent work to join things up locally, as Members have suggested.
Later this month, the taskforce will meet employers, trade unions and think-tanks to discuss options to increase incomes and financial resilience in low-income households. We want to ensure that the strategy addresses poverty in every corner of the land and that we hear and learn from families in poverty as we shape it. We will be holding engagement events across the UK—I have already visited various constituencies myself—bringing together a diverse range of voices and setting up a new forum for parents and carers to ensure that the experiences of our kids are included at the heart of the strategy.
The Government believe that a wealthy country like the United Kingdom should have a social security system that meets the needs of people who are unable to fully support themselves through work. We know that for many, the system we inherited is not currently achieving that. We are determined to fix the fundamentals so that low-income families can afford the basics. We have inherited a number of policies and a challenging fiscal climate that have left us with difficult choices.
In response to the shadow Minister’s point about universal credit, it is fair to say that the policy has been on a long journey. Some of the points she made about the responsiveness of social security during the pandemic are important. We must learn from that and try to address the challenges we now face. That is why we have committed to reviewing universal credit and will listen to a full range of views on potential changes to make sure that it is doing its job now.
As a first step, the Chancellor announced in last week’s Budget that we will introduce a fair repayment rate. That will help households on universal credit who are having deductions made from their benefit, perhaps because they had a loan of some kind or moved into a new home and needed to buy furniture or other items. We will ensure that they can retain more of the money from their benefit to help them to budget for essentials like this. Over 1.2 million households on universal credit will benefit from the changing of the deduction cap from 25% to 15%. It will mean an average of £420 a year, which is a good down payment on a future plan.
I turn to the specific issue of furniture affordability. Most of us will experience large one-off costs or unexpected expenditure at some point. As hon. Members have explained fully, these costs can be difficult to budget for, and we do not want to drive people into debt.
Jim Shannon
I mentioned the significant work done by charities and particularly churches, including St Vincent de Paul. What are the Minister’s thoughts on that?
Alison McGovern
The hon. Gentleman makes his point very well. Let me respond briefly to questions that Members have raised. I will ask the relevant Minister to write to my hon. Friend the Member for North West Cambridgeshire about the regulatory changes arising from the Renters’ Rights Bill, on whose Public Bill Committee he served ably. I reassure him that the DWP will work across Departments, because these areas cover different departmental responsibilities. We will include all those points in the child poverty taskforce. The hon. Member for Strangford (Jim Shannon) is right about charities—Wirral Repair Café in my constituency does a fantastic job.
My hon. Friend the Member for Uxbridge and South Ruislip (Danny Beales) made an excellent speech on household support fund guidance. I encourage him to be part of that conversation. I will take away what he has said, but he might want to write to me with more detail. To other hon. Members, I say that we are looking at all the ways in which poverty is now affecting people, given the spikes in energy prices and other issues. The comments were about the construction of homes and how we can limit the cost of energy are very important. I encourage Members to keep bringing those points forward, because now is the time to address them.
Hon. Members will know that the social security system has always made provision to help people on low incomes without adequate savings, and we do consider the impact of budgeting loans, advances and other measures. I mentioned the change in deductions. We know that while there will always be people who struggle to meet unexpected costs, no one wants a system in which large numbers of people are relying on crisis support to help them to feed their families or pay for heating and other day-to-day essentials. We want the system to genuinely respond to this as a crisis, not a chronic problem.
To support the upcoming child poverty strategy and address the demand we face, as the hon. Member for East Grinstead and Uckfield mentioned, we are continuing to provide substantial funding for crisis support through the household support fund and discretionary housing payments. We will invest £1 billion, including the Barnett impact, to extend the household support fund in England for an additional year until 31 March 2026 and to maintain the discretionary housing payments fund for a further year. This will ensure that the current targeted support is available for the most vulnerable.
In the end, we know that there is no quick fix. The issues that we have in this country are deep rooted and complicated, but that can never be an excuse for not trying to tackle them. We have taken the first steps, and there is more to come in the child poverty strategy and the “Get Britain Working” White Paper. I look forward to working with all Members here to get this right.
Question put and agreed to.
Resolved,
That this House has considered furniture poverty.
Income Tax (Charge)
Alison McGovern Excerpts(1 month, 2 weeks ago)
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Mel Stride
I have just explained exactly what the OBR said. It said that it does not legitimise the black hole—the £22 billion, which has been repeated yet again from the Government Front Bench.
Opportunities were missed in this Budget, not least around driving up productivity. We know that Labour Governments spend money. We know that Labour Governments tax people a lot—that is what they do. What they do not do is spend the money with any strings attached. There has been a 14% pay rise for train drivers and 22% for junior doctors, but not one suggestion that there might be improvements in productivity to accompany that spending. That is unlike the Conservative party when we were in office: under my right hon. Friend the Member for Godalming and Ash (Jeremy Hunt), we had a very clear, fully funded plan for the national health service and a long-term workforce plan to drive up productivity.
Let me come to the issue of welfare. It is gratifying to hear the Secretary of State confirm that the Labour party is going ahead with some of the more important reforms that we brought forward, such as that to the work capability assessment.
Mel Stride
The Minister for Employment shakes her head, but my understanding is that while the Government may say they will make some changes, they are quite happy to take the savings that are baked into the OBR’s forecast. The Secretary of State is right to clamp down on fraud, but it is important that she does not misrepresent the fact that the approach she is taking is exactly the same as the approach we were bringing forward to do that.
The reality is that some DWP budgets are growing to an extent that they need to be arrested in order for us to have a successful economy. If we were able to hold the number of people of working age with a health or disability component to their benefit at the level it is now for the next five years, there would be a saving of about £14 billion; if we were able to get it back to where it was before the pandemic, over £30 billion would be saved. When the Conservative party was in government, we had a clear plan to begin to address that issue. We have heard nothing from the Government about how they will tackle that fundamental fact.
What we have had from the Government on welfare expenditure is the announcement that the welfare cap will be set, at the end of the scorecard period, at 5% above the OBR’s forecast for spending on those benefits. That is not a restraint; that is permission—an invitation—to spend ever more on welfare without hitting the cap. The Government have no plan and the taxpayer will continue to pay for it.
So what do we have to show for this Budget? Compared with the spring: lower growth, lower living standards, lower wages, higher taxes, higher borrowing, and increased interest rates and mortgages. This is a Budget of broken promises, and when the dust has finally settled and this lot have gone, as we step over the fallen—the former farmers, the pensioners, the one-time businesspeople, the poor and the vulnerable—there we will find the shattered remains of the working people of this country, betrayed by a party that lied to them, and they will never forget it.
Carer’s Allowance
Alison McGovern Excerpts(2 months ago)
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The Minister for Employment (Alison McGovern)
I beg to move an amendment, to leave out from “society” to the end and add:
“; believes it is essential that carers are provided with the support they need at the time they need it; condemns the previous Government for failing to address the scandal of demands for repayments of Carer’s Allowance; and welcomes the Government’s review into how these overpayments have occurred, what best can be done to support those who have accrued them and how to reduce the risk of these problems occurring in future.”
Let me begin by paying tribute to the right hon. Member for Kingston and Surbiton (Ed Davey). It is excellent that he has brought this subject to the House. I heard what he said about family carers as opposed to unpaid carers, and while I do not want to get involved in a big linguistic debate, I think he made an important point that will be recognised by many carers up and down the country. When we are making policy, we should always listen to those with direct experience. I think that the right hon. Gentleman made his point on behalf of millions of people, and it is good that the House has heard it.
Many people will be personally acquainted with this issue. There are 5 million carers in the UK and about 1 million people are receiving carer’s allowance, so this debate is extremely important. According to the latest census, just under one in 10 people in England and Wales provide unpaid care, but the subject of carers is not at the top of the political agenda nearly as often as it should be.
Dr Luke Evans (Hinckley and Bosworth) (Con)
When I was a clinician, people did not even realise that they could be labelled as carers and could apply to be carers, and were unaware of the gateway that that would provide. Might the Government consider doing some work to make more people aware that they are undertaking caring responsibilities, so that they can then obtain the support that is actually out there, if they only knew?
Alison McGovern
That is a very good point, and the hon. Gentleman’s experience as a clinician is welcome. The Secretary of State has considerable experience of working with carers, and I will alert her to his comments, because I think she would appreciate what he has said.
We must never think this is not an issue that does not affect us all. Many of us will become carers—if not now, at some point in our lives. This affects all of us, and everyone’s life is different. Support for family carers needs to be tailored so that it works for the individual and takes into account the different circumstances that people face. When you are caring for someone, that is a huge part of your life, and it never stops. Even if you are working, you are still thinking about that person for whom you are caring day in, day out. It is not just a physical job; it is a mental, intellectual job, and that is why the issue of stress and how carers are treated is so important.
Helena Dollimore (Hastings and Rye) (Lab/Co-op)
I join the Minister in paying tribute to the millions of carers in the country, including those in my constituency. Does she agree that when someone is juggling the daily stresses of life, it can be difficult to remember to notify the DWP of a change in circumstances, which is required under the current arrangement?
Alison McGovern
I will come to the review that we will be conducting, but let me make the general point that we in the Government ought to be able to understand the realities of life and take that into account.
The position that I have described makes the dire situation we have inherited all the more shameful. Family carers are being pushed to breaking point. They have too often been forced to quit jobs that they want to keep and could keep with the right support, which isolates them and shrinks our workforce. With the right support, we could help carers and help our economy as well. To rub salt into the wound, we have inherited a system whereby busy carers, already struggling under a huge weight of responsibility, have been left having to repay large sums of overpaid carer’s allowance, sometimes amounting to thousands of pounds. It seems as though what is supposed to be a safety net designed to catch those in need was instead designed to catch them out.
Jim Shannon
For some time constituents of mine have found that they are due to repay an overpayment. I always ask them whether they remember when they made their complaint. All telephone conversations with the Department are recorded, so there is a way of making it clear that the fault lies not with the applicant but with the Department. Is there also a way of ensuring that those who have been penalised unfairly for following the Department’s advice should not have to pay that money?
Alison McGovern
As the hon. Member knows, the Department is not responsible for the delivery of social security benefits in Northern Ireland, but I am sure that Northern Ireland’s Department for Communities will be keeping a close eye on the debate and will want to take his points into account.
This problem is one of the numerous ways in which our social security system is failing the people of this country, with 2.8 million left out of work because they are unwell and more than 4 million children growing up poor, and we have therefore moved fast to fix the foundations of the DWP. That includes our setting up a taskforce to tackle child poverty, extending the household support fund for six months, and holding the first meeting of our new Labour Market Advisory Board. The board’s expertise and fresh thinking will help us break down barriers to work, such as an inability to balance paid work with family care.
Daisy Cooper (St Albans) (LD)
This Government have talked about a duty of candour. Can the Minister give an assurance that if people working at the DWP have information about maladministration and poor management of the service that they have witnessed and wish to come forward with that information, they will be protected as whistleblowers?
Alison McGovern
Obviously whistleblowing is very important. The Hillsborough law that is being introduced is not my responsibility, so the hon. Lady will understand that I cannot go over it extensively, but I will say, as someone who worked on the Hillsborough issue for many years, that it is very important to me personally.
These problems are significant, and given the scale of the challenges, we will not be able to solve all of them overnight, but we have taken important first steps, including tackling the issue of overpayments of carer’s allowance related to earnings. We have all heard the stories of some of the thousands of carers who have been affected, we have all heard and know about the stress and anxiety that it has caused them, and we all want—I hope—to establish the facts.
To address this problem, we must first truly understand what has gone wrong. That is why the DWP has announced today an independent review of overpayments of carer’s allowance that have exceeded the entitlement threshold. The review will investigate how the overpayments have occurred, what can best be done to support those who have accrued them, and how to reduce the risk of such problems occurring in future. We are delighted that Liz Sayce OBE has agreed to lead the review. My colleagues the Minister for Social Security and Disability, my right hon. Friend the Member for East Ham (Sir Stephen Timms), and the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Stretford and Urmston (Andrew Western), have already met representatives of Carers UK, along with carers themselves, to discuss their report on overpayments, and we will consider the findings of that report alongside the independent review.
Shockat Adam (Leicester South) (Ind)
On that point, does the Minister agree that there should be a failsafe system? If an overpayment is made and the receiver is not notified, they should be allowed not to pay back any of the money.
Alison McGovern
I thank the hon. Member for his intervention. I am sure that many Members will want to provide their views to the review, which is welcome. I will come to some of the steps we have already taken to try to address the problems in a moment.
It is vital to move quickly to understand exactly what has gone wrong, so that we can set out a plan to put things right. Right now, we want to make it as easy as possible for carers to tell us when something has changed that could affect their carer’s allowance. We will continue to look at improving communications, and we are now reviewing the results of a test of text alerts to claimants who may be at risk of building up overpayments.
In response to the point that the right hon. Member for Kingston and Surbiton (Ed Davey) made about the need for a review, I assure him that we are not waiting for an extensive review in order to act; we have acted already. Our pilot involved texting 3,500 claimants to alert them when we were told by HMRC that they have breached the current earnings limit. Going forward, we want to make the best use of earnings data already held by HMRC in order to reduce the burdens on busy carers, which also responds to the point made earlier.
Alison McGovern
In a moment.
If the results of the pilot are positive, that will be the first step towards addressing the overpayments problem. I know that we need to do much more, and there are many other issues, but it will be a good start.
Ed Davey
I am grateful to the Minister for what she has just said, but will she confirm that the remit of the review will go further into the structure of carer’s allowance? Many of us think that the earnings limit is way too low, and the whole cliff-edge structure has to change. Can she confirm that the review will look at that?
Alison McGovern
I thank the right hon. Member for his question. I went through the details of what the review will look at just a moment ago, but there are wider problems with support for carers. The right hon. Member will know that the Department is currently looking at a whole host of areas, and we need family carers to be much better supported, both in work and when they are not working, so we will look at the wider issues. The review is about doing that, as I have said, but that does not mean that we are not fully aware of all the issues that carers face. As I was saying, addressing overpayments is only part of the action we need to take to ensure that unpaid carers get the support they need and deserve.
Alison McGovern
I will make a bit of progress.
We are looking closely at how the benefits system currently works, and it is right that the Government focus on addressing overpayments of carer’s allowance. As I was just saying, we have set up an independent review, but we have heard the concerns about the broader system, including the earnings limit and the lack of taper. As Members will know, earlier this year the Work and Pensions Committee, which was then chaired by my right hon. Friend the Member for East Ham, raised a number of issues with carer’s allowance—not only overpayments, but the need for modernisation more generally. As the right hon. Member for Kingston and Surbiton will know, we have given the Committee’s recommendations the detailed consideration that they deserve, and we will respond later in the autumn.
Mr Speaker
Order. May I gently say to the Minister that she should look towards the Chair when speaking? I struggle to hear when she is constantly looking the other way. We operate in the third person, which is why Members should always speak through the Chair. Otherwise, I struggle to catch the words.
Alison McGovern
I apologise, Mr Speaker. You would think that after 14 years I would be able to get it right.
Alison McGovern
Yes, 14 years. It just goes to show that every day in this House is a school day. Thank you, Mr Speaker; I always welcome your suggestions.
I cannot pre-empt the Secretary of State’s decision, but she will shortly start her uprating review of carer’s allowance, following the release of yesterday’s earnings data and today’s inflation figures, and the outcome of that review will include the new weekly rate of carer’s allowance from April 2025.
Alison McGovern
Apologies, but I feel that I should keep going.
Means-tested benefits can help where appropriate. Universal credit, for example, pays an extra £2,400 a year to unpaid family carers. I do not underestimate the challenges within the universal credit system, and we want to ensure that carers who need it get that support. As I was saying to the right hon. Member for Kingston and Surbiton a moment ago, we are looking at different aspects of the system, including by reviewing universal credit to ensure that it does the job we all want it to do. We will set out the details in due course.
Pension credit can also be paid to carers at a higher rate than what those without caring responsibilities receive, and over 100,000 carers receive an extra amount of pension credit because of their entitlement to carer’s allowance. However, we think that as many as 760,000 pensioners who are eligible for pension credit are not receiving it, which is why the Government have already taken action to drive up pension credit take-up. Last month, we started a national campaign to encourage eligible pensioners to check their eligibility and apply. We are asking local authorities to support that and, as the House will know, the Secretary of State and the Deputy Prime Minister wrote to them in August.
Following that, we have seen a 152% increase in applications for pension credit since 29 July, with almost 75,000 applications in just eight weeks. In November we will write to around 120,000 pensioners in receipt of housing benefit who may be eligible but are not currently claiming pension credit, and I encourage all family carers to check that they are receiving all the support to which they are entitled. The gov.uk website has lots of information on carer’s allowance, and 90% of people claim online, although traditional paper forms are available for those who want to claim it that way. I know that organisations such as Carers UK and Citizens Advice are also on hand and do a fantastic job of giving advice.
Financial help for carers is really important, but it is only one pillar of a proper support system. All of us need a balance in life, and that is important for carers too. Most carers of working age want to consider working in some form, and not just for financial wellbeing but to enhance their life and the life of the person for whom they care. We want to help family carers combine their caring responsibilities with paid work where they can. We will review the implementation of the Carer’s Leave Act 2023, which gave unemployed carers a right to time off work for the first time, and we will explore the benefits of paid leave while being mindful of the impact of any changes on small employers. Through the Employment Rights Bill, we will ensure that flexible working, which can play such an important role in helping carers to balance their work and caring responsibilities, is available to all workers, except where it is genuinely not feasible.
The Government will carefully consider the findings of Lord Darzi’s independent review of the NHS, which is very clear about the need for a fresh approach to supporting family carers. Caring is a demanding role in which no one can function at their best without ever having a break, and the better care fund includes money that can be used for unpaid carer support, including short breaks and respite services for carers. As I mentioned at the beginning of my contribution, we will ensure that family carers’ voices are heard as we develop plans to create a national care service as part of our reforms to adult social care.
Every day, unpaid family carers step up when loved ones need their support. Without the contribution of family carers, our country would not function. The pressure on social care in this country is already unbearable; without unpaid family carers, it would become completely untenable.
Jess Brown-Fuller (Chichester) (LD)
For all the talk of a £22 billion black hole, the value that carers give to the economy is £162 billion. Does the Minister agree that it is an absolute scandal that many carers are struggling financially?
Alison McGovern
Our country is in a very serious financial situation indeed. As I said at the beginning of my speech, anyone who thinks that the issue of care ought not to be right at the top of the political agenda is labouring under a serious misapprehension.
This is an important subject, which is why I am proud of the first steps that this Government have already taken to improve support for carers and to address the overpayment of carer’s allowance, which has caused so much distress for thousands of people. This shows our commitment to recognising and valuing the vital role that carers play in our communities. Of course there is much more to do, so it is my hope that, as we deliver the fundamental change that we need, we can work together with carer organisations and with carers themselves with a renewed sense of purpose to ensure that carers get all the support they need to carry out the incredible work of caring and to live full and fulfilled lives.
Oral Answers to Questions
Alison McGovern Excerpts(2 months, 2 weeks ago)
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The Minister for Employment (Alison McGovern)
I thank my hon. Friend for her question. Labour’s manifesto said that we will tackle the backlog of Access to Work claims, and we will. We have improved the process and increased the number of staff processing claims, but there is more to do and that work is ongoing.
Johanna Baxter
Does the Minister agree that delays to the processing of Access to Work claims not only impact the individual and their health, particularly their mental health, but impact their ability to fulfil their potential and contribute to our economy? What further steps will she take to ensure that the process for helping disabled people back into work is reformed, to ensure that it is genuinely one of support that allows people to fulfil their potential and enables businesses to thrive?
Alison McGovern
I agree wholeheartedly with my hon. Friend. Disabled people have the right to work like everybody else. We have an ambition to see an 80% employment rate in this country, and we cannot do that without the contribution of people with disabilities. We are working on an employment White Paper and developing our policies, and we want everybody in this country to make their full contribution, especially disabled people.
Mr Will Forster (Woking) (LD)
Stuart Anderson (South Shropshire) (Con)
The Minister for Employment (Alison McGovern)
We need jobcentres to be better everywhere, including those in rural areas with unique challenges. In the autumn we will publish a White Paper on our plans to transform the employment support system, which will change jobcentres. I welcome input on that issue from Members from all parts of the House.
Stuart Anderson
In South Shropshire, youth unemployment has risen over the past month. What is the Minister going to do to stop this worrying trend in rural communities like mine?
Alison McGovern
I thank the hon. Member for bringing that point to the House; it is a major focus of the work that is currently going into the White Paper. We have had very worrying developments for young people since the pandemic, and we need to do much better to give them the best possible start in life. I will say it again: on this issue we welcome input from Members on all sides of the House.
Jenny Riddell-Carpenter (Suffolk Coastal) (Lab)
Housing associations are the second largest investor in employment support in the UK, second only to the Department for Work and Pensions. Their work invests in employment support for some of the hardest-to-reach communities, including rural communities such as mine in Suffolk Coastal. Will the Minister commit to working with housing associations to co-design and co-invest employment support over this Parliament?
Alison McGovern
I thank my hon. Friend again for her very welcome point. Housing associations are extremely important for connecting with residents, who often have multiple vulnerabilities. When thinking about the journey into work we need joined up services between the NHS, the local authority and our housing associations. They will be a part of the future partnership, and I look forward to working with her for her constituency.
Patrick Hurley (Southport) (Lab)
Dr Rupa Huq (Ealing Central and Acton) (Lab)
The Minister for Employment (Alison McGovern)
In May 2019 the universal credit sanction rate was 3.17%. It reduced considerably during the pandemic, gradually returning to 3.51% by November 2021. It then continued to rise, reaching a peak of 7.29% in October 2023, but it is now falling, with a rate of 6.17% in May 2024.
Dr Huq
According to recent research by Gingerbread, a high percentage of sanctions have been misapplied to single parents, not because they have not met the job search requirements but because of missed meetings for reasons connected with childcare. Max, a bereaved single dad of two, had his sanction overturned, which involved a fairly challenging process. Will my hon. Friend please look into the possibility of overhauling the mess of a system that was left behind by that lot over there?
Alison McGovern
I thank my hon. Friend for her question and, through her, I would like to thank Gingerbread for its work on this issue. There have always been, and always will be, conditions attached to social security, but the past 14 years show what happens when we have a Government who are more interested in blaming people and creating cheap headlines than offering real help. In our manifesto, Labour committed to review universal credit so that it makes work pay and tackles poverty, and the report that Gingerbread has written will also help inform our child poverty taskforce.
Chris Webb (Blackpool South) (Lab)
Marsha De Cordova (Battersea) (Lab)
The Minister for Employment (Alison McGovern)
My hon. Friend is an absolute expert on this kind of inclusive change that we need to make to our employment support system so that we can help everybody, and I look forward to working with her on ideas just like that when we bring forward our White Paper in the autumn.
Olly Glover (Didcot and Wantage) (LD)
Alison McGovern
I assure my hon. Friend that we will work with the Welsh Government, Welsh local authorities and all our colleagues across the United Kingdom to get the policy right for young people, who I believe have been failed over recent years. It is about time they had the future they deserve.
Priti Patel (Witham) (Con)
With employers in Witham and across the country about to be whacked with a barrage of higher taxes, thanks to this Government, how do the Government expect employment levels to stay high? How do they expect small businesses to be at the heart of any employment strategy that they claim to have?
Women’s State Pension Age: Ombudsman Report
Alison McGovern Excerpts(7 months ago)
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Alison McGovern (Wirral South) (Lab)
I, too, thank the Backbench Business Committee for making time for this important debate from the limited time that it has to allocate. I have listened carefully to every contribution. A number of Members, including my hon. Friend the Member for Gower (Tonia Antoniazzi), the hon. Members for Livingston (Hannah Bardell), for Glasgow South West (Chris Stephens), and for Strangford (Jim Shannon), and the right hon. Member for Ross, Skye and Lochaber (Ian Blackford), talked about the experience of women who have been part of this campaign, or who described to their MP what they had been through. Some Members, including my hon. Friends the Members for Wirral West (Margaret Greenwood), and for Salford and Eccles (Rebecca Long Bailey), also mentioned the context of those experiences, and the systematic sexism that women have faced.
Other Members described the detail of the ombudsman’s report, and the possibilities for redress, including the hon. Members for Waveney (Peter Aldous), for North Norfolk (Duncan Baker), for South West Bedfordshire (Andrew Selous), for North East Fife (Wendy Chamberlain), and for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald), and my right hon. Friends the Members for Knowsley (Sir George Howarth), and for East Ham (Sir Stephen Timms), who chairs the Work and Pensions Committee.
We have had a thorough and extensive debate this afternoon. I recognise and pay tribute to the women who have joined us today, or who have watched the debate from afar. As I say, it has been a full discussion. The ombudsman’s report is important and has serious lessons for the Government. It also relates the serious consequences for the women who experienced the events that it describes. The ombudsman has rightly said that it is for the Government to respond, and that Parliament should consider the report’s findings. As we have heard, the Work and Pensions Committee has begun that process, and will hear from Ministers next week, I believe. I will follow those proceedings carefully.
In March, the Secretary of State said in this Chamber that he would proceed “without undue delay”, and on Monday he said that he still required an appropriate amount of time to consider the ombudsman’s conclusion. My first question is about time. For all the reasons that Members have set out, it would be helpful if the Minister set out a timescale, and told us, crucially, what advice has been provided to the Government, and what analysis is under way in the Department. It would be helpful to know what the process is.
In the absence of that further update from the Government, Labour’s position remains the same as it was when the ombudsman’s report was published. We are all waiting for the Government to respond, so I will not diverge from what my hon. Friend and colleague the Member for Leicester West (Liz Kendall) said six weeks ago. Although I understand the political reasons why the SNP wants to put pressure on me, I am not the Minister, and I do not have access to the information and advice that the Government have. I therefore call on the Government to respond without delay.
Issues around changes to the state pension have spanned multiple Parliaments, but I remind everybody that the moment that sparked the Women Against State Pension Inequality Campaign was the Pensions Act 2011, in which the then Chancellor, George Osborne, decided to accelerate state pension age increases with very little notice—a time described accurately by the right hon. Member for Ross, Skye and Lochaber. George Osborne’s comment that that
“probably saved more money than anything else we’ve done”
made me angry at the time, as I imagine it angered many other women. During that period, Labour tabled amendments that would have ensured that proper notice was given, so that women could plan for their retirement. That would have gone some way to dealing with the problem.
Have the Government, even now, done an analysis of why they pressed ahead with the changes, despite the clear consequences? In any case, the ombudsman began investigating how changes to the state pension age were communicated in 2019. That year, the High Court ruled that the ombudsman could not recommend changes to the state pension itself, or the reimbursement of lost pensions, because those issues had been decided on by Parliament, as many Members have mentioned.
The ombudsman’s report states that internal research from DWP in 2004 found that about 40% of the women affected knew about the changes to the state pension age. Is that still the Government’s assessment, now that the report has been published, or are they looking for other evidence? What is their assessment of the total number of women who would receive compensation under the different options put forward by the ombudsman? How many of them are the poorest pensioners, and how many of them are on pension credit? How many of those affected have already retired or sadly passed away? Given that the Government knew, as Members have described, that there were problems communicating the changes to the state pension age, I wonder about that moment in 2011, and precisely what advice was provided to Ministers at the time.
Let us think about the principle here. The Government are committed to providing 10 years’ notice of future changes to the state pension age. In 2015, the Pensions Commission found that that should be 15 years’ notice. It is important for the Government to state why there is that difference. We all want a result of this debate to be a guarantee that information about any future changes to the state pension age will be timely and helpful for the individuals affected. We have problems with the pensions dashboards. What is going on with pensions information? Crucially, will the response to the ombudsman’s report, when it comes, contain a list of the lessons that the Department is learning, and measures that it is putting in place?
The ombudsman took the rare decision to ask Parliament to intervene on this issue because it had doubts, as many Members have described, about whether the Department would provide a remedy. In the light of those concerns, and to aid Parliament with its work, I ask again, as we did previously, for the Government to commit to laying out all relevant information, and placing it in the Library. I have some experience of dealing with historical injustices, and I must impress on the Minister that my experience from dealing with the Hillsborough disaster is that open access to the evidence is extremely important. I hope that, in the spirit of the Hillsborough law, the Government will come forward and put that information before us, so that we can see it.
I look forward to hearing what the Minister has to say. I do not imagine that we will get a response today to the ombudsman’s report, but will he at least set out the timetable for a response, because we cannot move on until we have that? I hope that the women affected by all these changes—including those changes expedited in 2011—who were born just after the second world war can soon hear the Government’s response. As many have mentioned, they were born long before a woman’s place at work, and women’s full rights to their own earnings and pensions, were secured.
This place has always been slow when it comes to women’s rights. In 1951, more than 30 years after women could first come here, just 17 of 650 MPs were women, yet women of that generation built the platform that we all stand on. They fought to change things for women, and the least they deserve is a response from the Government to the ombudsman’s report.
Oral Answers to Questions
Alison McGovern Excerpts(7 months, 1 week ago)
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Alison McGovern (Wirral South) (Lab)
The Prime Minister said this morning, and the Secretary of State just repeated it, that the Government introduced universal credit to help people into work. That is not a real account of the situation. The truth is that not only do we have record sickness-related inactivity, but young people are faring the worst. I know what Ministers will say—the questionable allegation that Labour Governments leave office with unemployment higher has already been trotted out. Actually, Full Fact found that that is particularly true of post-war Conservative Governments. So will the Minister acknowledge what is going on today: for the first time ever, we have 3 million inactive 16 to 24-year-olds? That’s true, isn’t it?
Mel Stride
I have already set out that we have universal credit, as the hon. Lady identified, as well as WorkWell and universal support to address exactly the individuals to whom she referred. On the general point, it should be pointed out that economic inactivity is below the OECD, G7 and European Union average, and lower than in France, Italy and the United States and in every year under the last Labour Government.
Alison McGovern
I said they would and I hear what the Secretary of State said about scheme after scheme and initiative after initiative, but what have the results been? If the Tory plan was working, the OBR would have forecast an increasing employment rate, wouldn’t it? But what is the truth? Not only is employment forecast to go down, but the forecast was downgraded in response to the Government’s policies. That’s the truth, isn’t it?
Mel Stride
Our record speaks for itself: 4 million more people in work since 2010. Unemployment has halved since the last Labour Government, on the hon. Lady’s watch. Youth unemployment has fallen by more than 40%; under her watch it rose by more than 40%. As I have stated, the last Labour Government’s record on economic inactivity is that it was higher than today every single year.
Health and Disability Reform
Alison McGovern Excerpts(7 months, 3 weeks ago)
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Alison McGovern (Wirral South) (Lab)
I thank the Secretary of State for his comments about Frank Field. Both I and my hon. Friend the Member for Wallasey (Dame Angela Eagle), who is sitting alongside me on the Front Bench, thought the world of Frank. I thank the Secretary of State for his tribute to a person who was completely unique in every way.
With regards to advance sight of the Secretary of State’s statement, I say: apology accepted. Labour will carefully review the detail of the Green Paper, because the country that we want is one where disabled people have the same right to a good job and help to get it as anyone else. We will judge any measure that the Government bring forward on its merits and against that principle, because the costs of failure in this area are unsustainable. The autonomy and routine of work is good for us all, for our mental and physical health—and more than that, for women, work is freedom, too.
I have read the Secretary of State’s gibes about Labour. He says that he does not know what our position is on a set of reforms that he has not set out. The Prime Minister made a speech about this issue two weeks ago, but every single day since then the Government have failed to publish the Green Paper. The Secretary of State wants my views on his, until this moment, unpublished thoughts. What was the problem? Was the printer jammed? Rather, was it that the Prime Minister and Secretary of State realised that, as soon as they published the Green Paper, everyone would realise the truth about the Government: like the Prime Minister who leads them, they are long on questions and short when it comes to the answers?
The Green Paper is not a plan; it is an exam that the Secretary of State is hoping he will never have to sit. The reason he wants to know Labour’s plan is that he suspects he will be long gone before any of these proposals are a reality. Will the Secretary of State tell me where the Green Paper leaves the Government’s earlier half-baked plan to scrap the work capability assessment, given that the idea behind that was to use the PIP assessment? He said that some health conditions can be taken out of PIP assessments. Which conditions was he talking about?
PIP was the creation of a Conservative Government, so where is the analysis of what has gone wrong? PIP replaced DLA, and now we are hearing that PIP is the problem. How many more times will we go around this same roundabout? Do the Government’s plans involve treating people’s mental and physical health differently? Can he explain the legal basis for doing so? Importantly, on health itself, is this Green Paper not a huge admission of the Tory failure on the NHS, in that it takes as its starting point the fact that people today simply cannot get the treatment and care they need? What will the costs of any new system be, in particular those of any extra support of the kind he mentioned? Will we see a White Paper before a general election?
I am standing in today and for the next few weeks for my hon. Friend the Member for Leicester West (Liz Kendall), who believes that health and work are two sides of the same coin. That is the insight that the Government are missing today. I ask myself how we got here. The country today is sicker—that is the legacy of this Government. NHS waiting lists are longer than they have ever been—that is the legacy of the Secretary of State’s party. If he does not know how bad things are in mental healthcare, he needs only to ask my hon. Friend the Member for Central Suffolk and North Ipswich (Dr Poulter). There are 2.8 million people who are locked out of work due to long-term sickness. That is the Conservative legacy: like ice on our potholed roads, the Tories have widened the cracks in our economy and society, making them all much worse.
With respect to mental health, in recent weeks the Secretary of State has decided to speak out of both sides of his mouth. On the one hand, he says,
“I’m grateful for today’s much more open approach to mental health”,
but with the same breath he goes on to say,
“there is danger that this has gone too far.”
He wants it both ways. He thinks that openness about mental health is good, but then he says the very thing that brings back the stigma.
Every time the Secretary of State speaks, he makes it less likely that people will be open about their mental health. On behalf of all of us who have ever had a panic attack at work, or worse, can I say that that stigma stops people from getting treatment, it makes getting help harder, and it keeps people out of work, not in it? A Labour Government will take a totally different approach. We will not only ensure more appointments but have an extra 8,500 mental health staff. The last Labour Government delivered the highest patient satisfaction on record, and that is the record on which we will build.
The issue that we are discussing is bigger than just health; it is also about work. Because of our commitment to serve working people, we will make work better, too. We will have the new deal for working people, improving rights for the first time in a generation, and we will drive up employment in every region because we will devolve employment support and end the tick-box culture in jobcentres. We will tear down the barriers to work for disabled people and provide help for young people. That will get Britain working again.
Harold Wilson said that unemployment, above all else, made him political. Those of us who grew up seeing people thrown on the scrapheap in the ’80s and ’90s feel the same. Every young person out of work today will never forget whose hand was on the tiller when these Tories robbed them of hope. It is time for a change, and a general election.
Mel Stride
I thank the hon. Lady for her response and the gracious manner in which she accepted my apology, which is much appreciated.
The hon. Lady said that she cannot be expected to comment on the PIP proposals, but I remind her that the work capability assessment proposals went through a consultation, and we still do not know where the Labour party stands on those. We have spoken about fit note reforms, we are setting up WorkWell, and in the autumn we will trial some of those fit note possibilities. We do not know where the Labour party stands at all on those matters.
One would have thought that given the central role that PIP plays in the welfare system in our society and country, the Labour party would have some kind of view on that benefit. But we hear precisely nothing on that matter because the Labour party has no plan. The consequence of that will be that, as under previous Labour Governments, the welfare bill will continue to spiral out of control. That will fall to hard-working families up and down the country to pay, by way of higher taxation.
The hon. Lady asked about the abolition of the work capability assessment, which, as she said, is set out in the White Paper. Those measures will not be due to come into effect until 2026. We will take into account the conclusions that may be drawn as a result of this consultation when we consider that matter. She raised numerous other questions, many of which are included in the consultation. I am sure that she will actively take part in the consultation as we work towards the answers to those questions.
I was rather surprised that the hon. Lady raised the NHS. This party is spending more on the national health service than at any time in its history, with a 13% real-terms increase in spending over the last couple of years, 21,000 additional nurses and 7,000 more doctors in the last 12 months alone, and from next year £2.4 billion additional spend on mental health services, to which she referred. That is on top of the additional £4.7 billion that the Chancellor previously set aside for more mental health treatments and, at the last fiscal event, 400,000 additional talking therapies within the national health service.
The hon. Lady concluded by referring to Harold Wilson’s comments on unemployment. I simply refer her to the fact that under every single Labour Government in the history of this country, unemployment has been higher at the end of their term of office than at the beginning.