Working Tax Credit and Universal Credit: Two-Child Limit

Debate between Alison McGovern and David Rutley

Thursday 21st April 2022 Westminster Hall

[David Rutley]

As I think the hon. Gentleman knows, the national minimum wage has gone up to £9.50—[Interruption.] There is a bit of head-shaking going on; it is very disturbing. The national minimum wage is now £9.50 and is projected by many to reach £10. The £9.50 figure is a 6.6% increase, which is very welcome. I am sure that the hon. Gentleman will join me in welcoming that significant increase.

A few things have been said about the non-consensual conception exemption. We recognise that it is a difficult and sensitive issue, and we have put in place procedures that are mindful of the sensitivities involved. Third-party professionals include healthcare professionals, registered social workers and relevant specialist charities, which can also signpost claimants to further support, so claimants will get the support that they need and be assisted through the light-touch processes in challenging circumstances. The hon. Member for Glasgow Central made a point about rape conviction rates. I reassure her—I think she knows this, but let me put it on the record—that the criteria for the non-consensual conception exemption is much wider than just conviction. The third-party professionals can assist in those circumstances as well.

The hon. Member for Strangford (Jim Shannon), who I think everybody in this Chamber loves, highlighted many situations—nearly all of them, actually. I agree with him that there are a few exceptions, but clearly, we will have differences of opinion on this point. He and I share a love of ensuring that people can express their faith freely—that is a fundamental part of our democracy—and the policy does not seek to get in the way of that vital democratic right and freedom that we all cherish. The Government have published an impact assessment noting that ethnic minority households may be more likely to be impacted by the policy because they are, on average, more likely to be in receipt of child tax credit or universal credit, or to have larger families. That could also be the case for households of a particular religion, but the DWP has insufficient data to confirm that. I highlight that the Supreme Court found that the two-child policy was lawful and not in breach of the European convention on human rights.

Points have been made about abortion and fertility rates. The Nuffield Foundation’s research consortium on larger families has this month published a report outlining that fertility rates for those claiming, or eligible to claim, benefits have changed very little since the introduction of the policy. That would seem to refute the evidence from the British Pregnancy Advisory Service that was discussed earlier. The policy was never designed to affect fertility rates; it is fundamentally about seeking to provide fairness with those who are unable to access benefits, when it comes to the choices that they have to make.

The hon. Member for Glasgow Central also asked the question—

[Alison McGovern (Wirral South) (Lab)]

Will the Minister give way?

[David Rutley]

I do not think that the hon. Member was here for the whole debate. I will take interventions from others, who have had the courtesy to be here for the whole debate, but I will carry on for now.

On the point about monitoring, we are keeping all our policies under review, but this policy seeks to strike the right balance between supporting those in need and fairness for taxpayers and those who support themselves primarily through work, who do not see their incomes rise when they have more children.

The hon. Members for Arfon (Hywel Williams) and for Cynon Valley (Beth Winter) made some points about poverty and whether this policy is impacting it. I am sure they are assiduously following the latest households below average income statistics, which show that the support we put in place around benefits and incentives for people to get into work—creating a vibrant labour market so that people can get into work and progress—means that 1.2 million fewer people were in absolute low income, before housing costs, in 2020-21, compared with 2009-10. That included 200,000 fewer children and 500,000 fewer working-age adults. Furthermore, there are now nearly 1 million fewer workless households and, very importantly, almost 540,000 fewer children living in such households than in 2010.

In-work Poverty

Debate between Alison McGovern and David Rutley

Wednesday 16th March 2022 Westminster Hall

[David Rutley]

I understand the hon. Gentleman’s point, but as a member of the Work and Pensions Committee he will also realise that we are experiencing record levels of fraud, and we are absolutely determined to bear down on that. We need to get the balance right, because it is taxpayers’ money that we are talking about.

[Alison McGovern]

Just to remind the Minister, when will the Government respond to the in-work progression report?

[David Rutley]

Of course, we recognise that we need to do more on in-work progression. The hon. Member is right to highlight that and we will respond shortly, and the response will be important. We are already taking action in this area, and I did not focus on that today because it was focused on in a previous debate. The hon. Member for North Ayrshire and Arran (Patricia Gibson) wanted to know what we were doing differently on progression, and I confirmed then and confirm now that we are working to put in place progression champions across the country who will make connections between employers, local authorities and skills providers and help more people to progress in work, which all of us across this Chamber want to achieve.

I believe passionately that we need to help people to see the opportunities before them and realise their potential. The plan for jobs helps people into work and also provides lots of mechanisms to enable people to progress in work. The progression work coaches will be a vital tool to help with that agenda. We know there is more to be done, and we are working hard to deliver on it.

Cost of Living

Debate between Alison McGovern and David Rutley

Tuesday 25th January 2022 Westminster Hall

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

It is a pleasure to serve under your chairmanship today, Mrs Cummins, and to see your wonderful smiling face. I congratulate the hon. Member for North Ayrshire and Arran (Patricia Gibson) on securing the debate. It has been a lively one on important issues, but it was brightened up by the wonderful tie of my hon. Friend the Member for St Ives (Derek Thomas).

The Government are taking the present challenges of those on low incomes very seriously. The pandemic has been challenging for many people. We acted quickly to put in place unprecedented levels of support during this period, as has been highlighted by some Members today. After yesterday’s debate, it feels a little like groundhog day discussing these issues today, but they are important. As was highlighted yesterday, given the current cost-of-living challenges, we in the Government are actively working on the best way to build on the existing support that is available. I hope that will reassure the hon. Members for Strangford (Jim Shannon) and for East Londonderry (Mr Campbell), who raised points on this, as well as my hon. Friend the Member for St Ives.

Since the pandemic started, we have spent more than £400 billion on protecting people’s jobs and livelihoods and supporting businesses and public services. There has been unprecedented welfare support. Universal credit has stood up to the challenge of covid-19, providing a vital safety net for 6 million people. We must thank the hard-working staff at the Department for Work and Pensions, including the thousands of work coaches across all our constituencies, who worked tirelessly to ensure that the benefits system did its job. Many of them are the pandemic’s unsung heroes. I hope that we make an extra effort to thank them when we perform our constituency duties over the weeks ahead, if we have not done so already.

[Alison McGovern]

I just want to add that whatever the policy disagreements between our parties, I agree wholeheartedly that those who work for the DWP, particularly on the frontline, deserve all our thanks.

[David Rutley]

I am grateful for that comment. The hon. Lady did not have to say that; I know her well enough to know that she feels that way. We have differences over policy, but we know we have very dedicated public servants in the UK and Scottish Governments who are committed to addressing the issues, and we are grateful for their work.

It is also important to highlight the fact that our successful vaccine programme is providing us with the protection to fight the virus in all its forms. Although we need to remain cautious, the latest labour market statistics show that time and again we have made positive decisions during the pandemic. As we have shown throughout the pandemic, the Government will do what it takes to support people who are struggling financially. Supporting vulnerable people in our society is of paramount importance to me, our Secretary of State and the Government.

The proportion of Government spending that goes on welfare reflects a strong commitment to the poorest in society. This year, we will invest more than £250 billion through the welfare system, including £110 billion on people of working age. That rightly provides an important safety net. We also take notice of the clear evidence that work, particularly where it is full time, plays an essential role in reducing the risk of poverty. With our economic recovery continuing, it is right to focus our attention on getting people back into work.

The latest job figures tell a positive story. A record number of people are now in payroll employment in the UK, with 23,000 people added to the payroll in Scotland in December alone. The UK has a buoyant labour market, with 1.25 million vacancies. That figure is has increased by 33,000, or 2.7%, on the month, and by 462,000, or 58.9%, since the start of the pandemic, offering people opportunities to secure a job, progress in work and increase their earnings. Current estimates show that the number of online job adverts in Scotland alone has risen by 13.3% since the start of the pandemic. To help people take advantage of those vacancies, our extended multibillion-pound plan for jobs will help people across the UK find work and boost their wages and prospects.

The hon. Member for Wirral South (Alison McGovern) will probably shake her head at this point, but we are making real progress. We have opened 150 temporary job centres; I had the honour of opening the most recent one in Macclesfield last Friday. We have recruited 13,500 work coaches. They make a difference because they care about individuals, often meeting them face-to-face—increasingly so as we come out of the pandemic. There are 1,200 extra work coaches in Scotland, helping with this vital task.

We are also investing in our young people through the kickstart scheme: 112,000 young people have started a life-changing six-month work placement, and 10,000 of those starts were in Scotland.

[Alison McGovern]

It was supposed to be 250,000 by now. Given what the Minister just said, what accounts for the gap?

[David Rutley]

There are more vacancies available, and we are encouraging people to take them up across the country, in Scotland as well. The scheme has seen real success in turning people’s lives around. There are further opportunities in the months ahead for people to get involved with that important programme.

It does not stop there, because we want to ensure that we help address some of the gaps in the workforce that were highlighted yesterday: in hospitality, health and social care, and technology. Sector-based work academies help people to get new skills and a guaranteed job interview at the end of their placement.

I also recognise, along with many others here, the immense value that older workers bring to the workforce. That is why the DWP is providing specific funding for that cohort. There is funding available for the over-50s to get tailored Jobcentre Plus support, to help them find work and build on skills to get into the workforce.

In addition, to support those jobseekers who are out of work for 12 months or more, our Restart scheme provides intensive support to help claimants in England and Wales find jobs in their local area, which I am sure will be welcomed across the Chamber today. Through regular contact with all participants, providers will develop a strong understanding of the individual’s employment history, skills, aspirations and support needs to help each one succeed. That will break down the employment barriers holding claimants back from finding work.

I remind hon. Members that the DWP is focused on helping people to increase their income by progressing in work. We often talk about the importance of getting people into work, but we are equally committed to helping people progress in work and move ahead with their career aspirations. We will shortly respond to Baroness McGregor-Smith’s report on in-work progression and set out our approach. I hope that will be welcomed by the hon. Member for Motherwell and Wishaw (Marion Fellows), who was concerned about that issue.

Universal credit incentivises work as part of its design. With that in mind, we have gone further to make work pay, as has been referred to, by cutting universal credit taper rates from 63% to 55%, and increasing universal credit work allowances by £500 a year. That is essentially a tax cut for the lowest paid in society, worth around £2.2 billion in 2022-23. That means that 1.9 million households will keep, on average, around an extra £1,000 a year. In addition, from April 2022, we will boost the national living wage by 6.6% to £9.50, which is ahead of inflation and worth another £1,000 each year to workers on the lowest pay.