Social Security

Alison McGovern Excerpts

Monday 4th March 2019 Commons Chamber

[Justin Tomlinson]

I will come back to the hon. Lady.

Turning to universal credit, in the 2018 autumn Budget statement the Chancellor announced additional assistance for those on universal credit. As such, the universal credit work allowance will increase by £1,000 after they have been increased by prices, helping 2.4 million working families. This measure raises the amount someone can earn before their universal credit payment is reduced and directs additional support to some of the most vulnerable low-paid working families.

Finally, let me turn to disability benefits. This year the Government will continue to make sure that carers and people who face additional costs as a result of their disability will get the additional support they need.

[Alison McGovern (Wirral South) (Lab)]

I have to ask the Minister: is that it? We are in the middle of a benefits freeze that is seeing family poverty rise—is that all he has got to say about it?

[Justin Tomlinson]

With this uprating order, I am bringing forward plans to increase support for some of the most vulnerable people in society to the tune of £3.5 billion, with £3 billion alone to help those with disabilities and long-term health conditions, and pensioners—key people who the Government, as we share the proceeds of growth, will continue to target support towards. That is why the incomes of the lowest-paid have risen by over £400 in real terms since 2010 while the wealthiest fifth of society have seen their income fall by £800. We recognise the right places to target support through additional measures, including the introduction of the national living wage, worth £2,000 a year, and the increase to the income tax threshold of £1,200.

--- Later in debate ---

[Justin Tomlinson]

As I have set out before, as the economy has continued to grow, we have been able to share the proceeds of growth to support some of the most vulnerable in society. That has seen increases to the income tax threshold, which will reach £12,500 this year, taking 4 million of the lowest earners out of paying any income tax at all. We are also seeing significant additional support for those with children. Whereas spending on childcare was £4 billion in 2010, it will be £6 billion by 2020—a 50% increase as part of our doubling of free childcare support, particularly helping lone parents who seek to take advantage of the record employment in all regions.

[Alison McGovern]

I thank the Minister for giving way again. He knows as well as I do that none of the figures he has just announced add up to the £12 billion of welfare cuts previously announced in this House by George Osborne. By the end of the benefit freeze and the other measures that the Government have introduced, children in poverty in this country will be worse off—is that not right?

[Justin Tomlinson]

But we know from announcements in the last two Budgets that spending on working-age benefits will be £2 billion higher than it would have been under the legacy benefits. That is why we now see 300,000 fewer children in absolute poverty, as we continue to target support at the most vulnerable in society.

--- Later in debate ---

[Margaret Greenwood]

I thank the hon. Lady for making the point so powerfully.

The benefit freeze increases poverty. According to the Joseph Rowntree Foundation, the freeze is set to drive almost 500,000 more people into poverty by 2020. In 2018, a couple with children claiming universal credit were up to £500 worse off, and a lone parent with children was up to £400 worse off, due to the benefit freeze. The JRF says that the freeze is the single biggest policy driver behind rising poverty levels. Before the freeze was introduced in the Welfare Reform and Work Act, working-age benefits were capped at 1%, yet living costs are rising. In the 12 months to September last year, prices grew by 2.4%, according to the CPI inflation measure. The Joseph Rowntree Foundation says that between the introduction of the benefits freeze in April 2016 and November 2018, the annual cost of living for people on low incomes rose by £900.

Rising living costs and frozen social security mean that the value of benefits is increasingly inadequate to protect people from poverty. A recent report by the National Audit Office shows how the real value of the basic rate of jobseeker’s allowance and income support has fallen nearly every year since 2012-13, and it is now below its value in 2009-10. Overall, the real cut to many benefits from the four-year freeze is over 6%. According to the Resolution Foundation, child benefit is now already worth less than it was in April 1999. Beyond a family’s first child, child benefit in April 2019 will be worth 14% less than it was when it was fully introduced in April 1979. This is compounded by the Conservatives’ broken economy: low wage growth and the rise of insecure and zero-hours contracts mean that incomes are failing to meet the rising cost of living.

[Alison McGovern]

Simply, child benefit is easy to claim and has wide support in society, so are not the statistics my hon. Friend has laid out absolutely terrible for working families?

[Margaret Greenwood]

My hon. Friend makes an absolutely pertinent point, and I thank her for it.

Universal Credit

Alison McGovern Excerpts

Monday 14th January 2019 Commons Chamber

[Alok Sharma]

I hope we have shown over the past couple of years that we do listen and that we do make changes. Of course we will continue to do so where that is appropriate.

[Alison McGovern (Wirral South) (Lab)]

Sometimes it can be hard to understand what the Minister is really saying to us. Most people call non-consensual conception rape, and that is what we are talking about. Most people in this country would call picking and choosing between the children we choose to support discrimination. The next time they Minister has to come to the House, as he undoubtedly will, to tell us about a policy change in relation to the two-child policy, will he commit to telling us exactly what the characteristics are of the kids that our Government will no longer support?

[Alok Sharma]

I am sorry that the hon. Lady feels unable to welcome the changes. The previous two Budgets have included additional support and, as I just said in answer to my hon. Friend the Member for Mid Worcestershire (Nigel Huddleston), we will see what more we can do where that is appropriate.

Universal Credit: Managed Migration

Alison McGovern Excerpts

Tuesday 8th January 2019 Commons Chamber

[Alok Sharma]

As the hon. Lady will know, home visits are already available under the welfare system and the universal credit arrangements. However, she has raised an important point about the need to ensure that no one who is vulnerable falls through the cracks. We want to ensure that as well, which is why we are working with health charities and others to make certain that we get this absolutely right.

[Alison McGovern (Wirral South) (Lab)]

A quarter of households in receipt of universal credit are lone-parent households, and we know that as people move on to universal credit, 50% more of those households will lose rather than gain. Given the tax cuts that the Government have handed out to the richest households, can the Minister give me a single reason why any lone-parent household should be worse off rather than better off? Can he give me a single justification for that?

[Alok Sharma]

If the hon. Lady is so keen to support lone-parent households, she should have supported us and voted for the work allowances that we introduced in the Budget.

Work and Pensions

Alison McGovern Excerpts

Wednesday 28th November 2018 Ministerial Corrections

The following are extracts from questions to the Secretary of State for Work and Pensions on 19 November 2018.

[Alison McGovern (Wirral South) (Lab)]

21. What assessment she has made of the effect of universal credit on lone parents.

[The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)]

Lone parents are the primary beneficiaries of the Government’s decision to increase the help provided for childcare from 70% to 85%, which will help us to enhance the record levels of lone parent employment in this country.

--- Later in debate ---

[Alison McGovern]

The whole House will be aware that lone parent employment increased radically under the last Labour Government, but unfortunately lone parents now face being worse off because of universal credit. So can the new Secretary of State and her ministerial team guarantee that as part of their review they will make sure that no lone parent family in this country is worse off because of universal credit?

[Justin Tomlinson]

The lone parent employment rate is now at 67.6%, which is a record high and something this Government are very proud of. We will continue to try to push to see that figure go up further. We have made announcements on increasing the national living wage, which has seen a real-terms increase of 8% over the past three years, and changes to the income tax threshold worth £1,200, while the national living wage in itself, for somebody working full-time, is worth £2,000. That is making sure that lone parents who are working are getting the support to have more money available at the end of every month.

[Official Report, 19 November 2018, Vol. 649, c. 566.]

Letter of correction from the Under-Secretary of State for Work and Pensions, the hon. Member for North Swindon (Justin Tomlinson):

Errors have been identified in the responses I gave to the hon. Member for Wirral South (Alison McGovern).

The correct responses should have been:

[The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)]

Lone parents are the primary beneficiaries of the Government’s decision to increase the help provided for childcare from 70% to 85%, which will help us to enhance the near record levels of lone parent employment in this country.

[Alison McGovern]

The whole House will be aware that lone parent employment increased radically under the last Labour Government, but unfortunately lone parents now face being worse off because of universal credit. So can the new Secretary of State and her ministerial team guarantee that as part of their review they will make sure that no lone parent family in this country is worse off because of universal credit?

[Justin Tomlinson]

The lone parent employment rate is now at 67.1%, which is a near record high and something this Government are very proud of. We will continue to try to push to see that figure go up further. We have made announcements on increasing the national living wage, which has seen a real-terms increase of 8% over the past three years, and changes to the income tax threshold worth £1,200, while the national living wage in itself, for somebody working full-time, is worth £2,000. That is making sure that lone parents who are working are getting the support to have more money available at the end of every month.

Universal Credit and Child Tax Credit: Two-child Limit

Alison McGovern Excerpts

Tuesday 27th November 2018 Westminster Hall

[Mike Amesbury (Weaver Vale) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Streeter, and I thank the hon. Member for Glasgow Central (Alison Thewliss) for securing such an important debate. She shares my view, and that of many colleagues, that the two-child limit is unfair and adversely affects tens of thousands of families. That policy stands out, tragically, as a clear example—perhaps the clearest example—of a Tory welfare system that is failing and unsupportive of those most in need. That view is shared not just by those of us in this debate; it is shared by charities and many advocacy groups, and much of civil society.

Earlier this year, 60 Christian, Muslim and Jewish religious leaders strongly condemned the policy, arguing that it sent a message that some children matter less than others. Disappointingly, however, some do not share that view. The former Work and Pensions Secretary, the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith), described it as a “brilliant idea”, and believed that it would force claimants to make the same life choices as families who are not on benefits, and incentivise them to seek work or increase their hours. We have heard from this debate that it is certainly not a brilliant idea. The claims about life choices and incentives show nothing but disdain for the people and families who our welfare state should be supporting and show no understanding of the precarious reality of the world of work for many at the sharp end.

While the two-child limit was possibly the most pernicious element of the approach, we should not forget that it was part of a package of welfare reforms to tax credits and universal credit announced in the 2015 Budget. The Child Poverty Action Group has estimated, as my hon. Friend the Member for Bury South (Mr Lewis) pointed out, that the two-child limit alone will lead to 200,000 more children growing up in poverty by 2020. It is also a policy that causes one sibling to lose out at the expense of another, with one child being of more value than another. Surely that is not fair or right.

[Alison McGovern (Wirral South) (Lab)]

Does my hon. Friend agree that there is a simple unfairness at the heart of the policy? We should no more support it than support one child in a family getting access to education and another not, or one getting access to health services and another not.

[Mike Amesbury]

I agree entirely with my hon. Friend and neighbour. Children are children.

From April 2017, low-income families lost entitlement to additional support through child tax credits or the child element of universal credit for a third or subsequent child born after that date. If the family was already claiming support for three or more children before that date, in principle they continue to receive support. However, to demonstrate the absurdity of the policy, if a third or subsequent child born after April 2017 is disabled, the family will receive child tax credits or the child element of universal credit for that child, but one of the other two children will lose out. As was rightly pointed out by hon. Friends across the Chamber, that is an attack on some of the most vulnerable in society: children. The policy also discredits the claim of this Conservative Government that they are the party of the family and of religious freedom. It is yet another example of why the roll-out of universal credit needs to be stopped.

The Government must end the delays in payment, and it must also end one of the most shocking consequences of the legislation: the rape clause. Another former Secretary of State for Work and Pensions, the right hon. Member for Tatton (Ms McVey), made the extraordinary claim that the policy potentially offered rape victims double support: social security and “an opportunity to talk” about the assault. That was insensitive to say the least. As hon. Friends have pointed out, it was absolutely appalling.

--- Later in debate ---

[Alok Sharma]

No, I will not, if the hon. Gentleman does not mind.

The flexible support fund is available to help eligible parents who are moving into work to pay up-front childcare costs or deposits. Child benefit continues to be paid to parents regardless of the number of children within the household. There is also an additional amount in universal credit designed to support disabled children, again regardless of the total number of children in a household.

To return to the Budget, we have listened to feedback about the support available for families on universal credit and we have acted. In last month’s Budget, the Chancellor announced that an extra £1.7 billion a year will be put into increasing work allowances for families with children and disabled people, strengthening universal credit work incentives and providing a boost to the incomes of the lowest-paid. This will result in 2.4 million families keeping an extra £630 per year of what they earn.

[Alison McGovern]

Does the Minister concede that a reduced cut to someone’s income is still a cut?

[Alok Sharma]

I have just explained how, as a result of these work allowances, more money is going into the system. As I say, if the hon. Lady wants that to happen, she should help us and vote for these policies.

Given the points made about poverty, it is worth pointing out that 1 million fewer people are living in absolute poverty than in 2010, including 500,000 working adults and 300,000 children. That is a positive outcome. Children living in workless households are approximately five times more likely to be in poverty than those living in households in which all adults work. There are now 637,000 fewer children in workless households than in 2010—a 33% decrease. The number now stands at a record low.

The Government continue to take action to help families with the cost of living through the national living wage, through reducing the universal credit taper to 63%, through raising the income tax personal allowance, and through childcare support, which I have already spoken about.

Several colleagues raised the changes to be made in February. I will simply point out that the High Court has found the policy to be lawful. From the Government’s perspective, this is an issue of fairness, but I will reflect on all the discussions that we have had in this debate.

This has been a useful debate in which colleagues have had the chance to air their views. I hope that I have demonstrated that we are a Government who listen. We have introduced support for families in the system and, of course, we will continue to listen and reflect.

Oral Answers to Questions

Alison McGovern Excerpts

Monday 19th November 2018 Commons Chamber

[Alok Sharma]

If the hon. Lady is keen on protecting people who move from legacy benefits on to universal credit under the managed migration process, I would invite her to vote for the regulations, with me and my colleagues, when they come through Parliament later this year.

[Alison McGovern (Wirral South) (Lab)]

21. What assessment she has made of the effect of universal credit on lone parents.

[The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)]

Lone parents are the primary beneficiaries of the Government’s decision to increase the help provided for childcare from 70% to 85%, which will help us to enhance the record levels of lone parent employment in this country.

[Alison McGovern]

The whole House will be aware that lone parent employment increased radically under the last Labour Government, but unfortunately lone parents now face being worse off because of universal credit. So can the new Secretary of State and her ministerial team guarantee that as part of their review they will make sure that no lone parent family in this country is worse off because of universal credit?

[Justin Tomlinson]

The lone parent employment rate is now at 67.6%, which is a record high and something this Government are very proud of. We will continue to try to push to see that figure go up further. We have made announcements on increasing the national living wage, which has seen a real-terms increase of 8% over the past three years, and changes to the income tax threshold worth £1,200, while the national living wage in itself, for somebody working full-time, is worth £2,000. That is making sure that lone parents who are working are getting the support to have more money available at the end of every month.[Official Report, 28 November 2018, Vol. 650, c. 2MC.]

Universal Credit

Alison McGovern Excerpts

Wednesday 17th October 2018 Commons Chamber

[Alison McGovern (Wirral South) (Lab)]

I will be brief; I have three points to make. First, after listening to today’s debate, I feel that we have been having the same debate every year that I have been in this House. From speaking to more experienced colleagues than me, I know that the debate about tax credits and whether they worked and how they should be changed is one that we keep having. I am happy to discuss the legacy systems, and what went right and what went wrong. We have been doing so for the past decade, but that is not the point.

What we are talking about today—this is my second point—is a fundamental dilemma in our economy. We have a three-way policy choice between employment, wages and poverty. We all want employment to go up and people to be in work, but we cannot expect wages on their own to cover the cost of life. That is what we are seeing at the moment. While wages have not gone up—[Interruption.] The hon. Gentleman on the Front Bench says that that is ridiculous. Well, he should listen and he should go back to the Beveridge report, because exactly that point was proved: if someone has children, if they are sick or disabled, and if they are old, their wages will not cover the cost of life. The welfare state is there to smooth people’s income over their lives so that in periods of high cost they do not fall into poverty.

That brings me to the third part of this dilemma. If the state does not step in to make sure that the welfare state can do what it is supposed to do, work and wages alone will not stop poverty, and that is what is going on. I ask Ministers: how high does child poverty have to go before they step in? [Interruption.] That is not the case. The Government just changed the definition of poverty. Other Members have listed the organisations that have given ample evidence on poverty to Ministers. Unless the state steps in to fulfil Beveridge’s vision and takes account of the cost of having children, we will always see people falling into poverty. That is a fundamental truth of how our economy works.

I leave the final words to my brilliant staff, Jay Glover, Debbie Caine and Rob Buckingham, who have seen food bank use in my constituency go from nothing to a situation now where it is rife. At the end of every month, there is a spike in demand for food bank vouchers, and they are left dealing with the mess that universal credit is creating. Unlike my hon. Friend the Member for Liverpool, Walton (Dan Carden), who is a good friend of mine, we in Wirral South never expected to see food bank usage rife in our area, which is more mixed than his, and yet here we are with this pain and stress every month, and this Government, I am afraid, are to blame.

Oral Answers to Questions

Alison McGovern Excerpts

Monday 15th October 2018 Commons Chamber

[Ms McVey]

My hon. Friend is always a good campaigner on these causes and we of course meet to discuss these matters. At the moment, the taper rate is 63%, as he says, but it was over 90% under the legacy system. We have dropped it considerably and when we can, when the economy is on a sounder footing, we will seek to drop it even further to make sure that work pays, which is something this Conservative Government do.

[Alison McGovern (Wirral South) (Lab)]

The Secretary of State says that universal credit is constantly improving, but unfortunately the number of people coming to my office for food bank vouchers is constantly increasing. More and more of the people coming are families with kids. The public are angry. Has the Secretary of State made an assessment of how many families using food bank vouchers are lone parents with children?

[Ms McVey]

The hon. Lady raises a good question about what happened under the previous Labour Government—[Interruption.] Can I just put this on the record, Mr Speaker? Under the previous Labour Government—[Interruption.] Labour Members are huffing, puffing, tutting and shaking their heads, but the number of households where no one had ever worked doubled under Labour. That is where the problem started and we are changing that. It has been a quick change—to 3.4 million people in work—and we have to help those people now to get a higher income, which we are doing.

Food Poverty: Merseyside

Alison McGovern Excerpts

Tuesday 16th January 2018 Westminster Hall

[Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)]

I beg to move,

That this House has considered food poverty in Merseyside.

It is a pleasure to serve under your chairmanship in Westminster Hall this afternoon, Sir David.

May I start by thanking all the selfless and dedicated food bank volunteers not just in Merseyside but across the country? Over the past two years I have volunteered at a local food bank in my constituency—the North Liverpool food bank network at St John’s church in Tuebrook—and I have seen at first hand both the fantastic work it does and the massive need it seeks to address.

May I also welcome my hon. Friends from across Merseyside who have joined us for this debate? Two of my hon. Friends who are unable to be here today have sent their best wishes. My neighbour, my hon. Friend the Member for Liverpool, Wavertree (Luciana Berger), has been a long-standing campaigner on this issue, and my other neighbour, my hon. Friend the Member for Liverpool, Walton (Dan Carden), used his first Prime Minister’s question last year to ask about schools providing free meals during the holidays, which is a subject I will return to later in my speech. Both of them have other duties in the House this afternoon.

Frankly, this is a debate that we should not be having. As a first-world country—one of the wealthiest in the world—it is surely shameful that we have seen the exponential increase in food bank use that there has been. According to the highly respected Trussell Trust, 128,697 people were provided with a three-day emergency food package in 2011. Last year, the comparable figure was over 1.1 million, which is an eightfold increase in a six-year period. In the run-up to Christmas, ITV Granada ran a special report on food poverty, focusing on Morecambe in the north-west. That programme was seen by more than 7 million people, and the issues that it raised so powerfully are exactly the same as the issues that we face in Merseyside.

The Department of Health defines food poverty as

“the inability to afford, or to have access to, food to make up a healthy diet.”

The United Nations found that between 2014 and 2016, just over 4% of the UK population were deemed to be severely food insecure. That is nearly 3 million people in our country, and it suggests that there are about 2 million people suffering from food poverty who, for whatever reason, have not had access to a food bank.

Across the north-west last year, the Trussell Trust network provided 175,000 emergency food packages. That is the largest number in any region in the country. Of course, that does not take into account the independent food banks that are also providing food aid, including the Hope food banks, the Orchard and the Merseyside Youth Association food bank. Last Friday, for example, the Orchard food bank in the constituency of my hon. Friend the Member for Garston and Halewood (Maria Eagle) opened at 10 in the morning, handed out 49 bags of food in the space of 25 minutes and had to close at 11 because it had run out of food packages, such was the demand.

Across Merseyside, the two biggest factors driving people to use food banks are low incomes and changes and delays in the benefits system. In the six months between April and September last year, 27% of people in Liverpool said that the main reason they were being referred to the food bank was a low income. These are people in work who are having to use food banks. In recent years, we have seen an increase in food prices. Last year, for example, there was the highest rate of food price inflation for four years. When that is combined with wage stagnation and increasing job insecurity, it means that many of the most vulnerable families in work are taking home less money. Real wages have barely increased in this country for over a decade, and last year they fell by 0.4%. This brings together what might be described as a “perfect storm”, where the price of food is increasing much quicker than most people’s wages. I urge the Government to focus more on measures to tackle the scourge of low pay in this country.

Nationally, the main reason people are referred to food banks is low incomes for families in work. In Liverpool, although that is the case for a significant number, the primary reason is changes and delays in the benefits system. Some 51% of those who used a food bank in Liverpool last year did so because of changes or delays with their benefits. Since 2010, we have seen more than 20 major changes to working-age benefits in this country, and that has affected more than 50,000 households in just the city of Liverpool. Liverpool City Council undertook a cumulative impact assessment of those changes two years ago, and I urge the Minister to work with Liverpool City Council and other local authorities to undertake a current cumulative impact assessment of the impact of benefit changes in communities in not only Merseyside but other parts of the country.

[Alison McGovern (Wirral South) (Lab)]

Just before Christmas I walked into my constituency office and saw Jay Glover, my assistant, on the phone to the Department for Work and Pensions for an extraordinary amount of time, trying to resolve somebody’s benefits problem. That was just before Christmas, and that person had to go to a food bank. Does my hon. Friend agree that such incidents are becoming ever more frequent in all our constituency offices, and so we know that this DWP delay is real?

[Stephen Twigg]

My hon. Friend is absolutely right. My experience from my advice surgeries and the constituency caseworkers in my local office is exactly the same, as I am sure is that of colleagues. The survey evidence that I referred to demonstrates that in Liverpool, half of those who have to use food banks say that it is because of delays and changes with benefits.

Oral Answers to Questions

Alison McGovern Excerpts

Monday 9th January 2017 Commons Chamber

[Richard Harrington]

I thank my hon. Friend for his salutations and for his question. The Department for Work and Pensions continues to run a multi-channel communication campaign that includes radio, press and social media to raise awareness of the new state pension. As well as directing people to information on gov.uk and working with stakeholders to deliver key information, our priority has been to provide personalised information to individuals so that they know how much state pension they are likely to get, and from when. Since February 2016, the online Check your State Pension service has had more than 2.1 million views.

[Alison McGovern (Wirral South) (Lab)]

The Minister’s warm words will do nothing to reassure the women in my constituency for whom the Government’s advice on pensions has a terrible reputation because of the injustices highlighted by the Women Against State Pension Inequality campaign. The one thing the Government could do to persuade the public to believe their pronouncements on pension entitlements would be to give justice to the WASPI women by looking again at the 2011 changes.

[Richard Harrington]

The hon. Lady will be aware, because the WASPI women have been discussed in the House and I have discussed this matter personally with her on many occasions, that the changes affecting them were in the Pensions Act 1995, and that a lot of time and resources were devoted to informing them of the situation, including millions of letters being sent out from 2011.