Oral Answers to Questions Debate
Full Debate: Read Full DebateLord Sharma
Main Page: Lord Sharma (Conservative - Life peer)Department Debates - View all Lord Sharma's debates with the Department for Work and Pensions
(5 years, 7 months ago)
Commons ChamberUnder universal credit, our work coaches provide vital one-to-one support to all claimants. Work coaches receive appropriate training to ensure that they can offer support to claimant groups with a variety of characteristics.
As I understand it, the test and learn approach has been crucial to improving the system and getting it right for individual claimants. What key lessons have been learned and what steps have been taken to address them?
My hon. Friend is absolutely right: the test and learn approach has allowed us to adapt the delivery of universal credit to support claimants more fully. Examples include: abolishing the seven-day waiting period; the introduction of 100% advances; the landlord portal; and the flexible support fund being used to cover initial childcare costs.
Of course there is a range of reasons why people make use of food banks, but what is important is that the DWP makes sure that we get funds to claimants in a timely manner. The Secretary of State has already talked about the 100% advances and the two-week housing benefit run-on, and, of course, there will be additional run-ons coming on in 2020.
I have constituents in Stirling who would like to take up work or to extend their hours of work but cannot afford to pay the upfront costs of childcare. Can the Minister tell the House what is being done to help parents with upfront costs of childcare?
My hon. Friend raises a very important point. Under universal credit, up to 85% of childcare costs can be covered and, as the Secretary of State announced earlier this year, we are making the flexible support fund available so that funding can be provided up front to take care of childcare costs, which will help people get into work.
It is welcome that the Secretary of State has finally responded to pressure and abolished three-year sanctions, but failure to scrap this punishing regime entirely means, as we have heard across the House today, that many people including children will still suffer. Six months is a long time to go without money, so will she go the extra mile and abolish punitive sanctions altogether?
I welcome the fact that the hon. Gentleman has, in turn, welcomed what the Secretary of State has announced—it has absolutely been the right thing to do. Sanctions are not put forward indiscriminately; a very clear procedure takes place, and right now less than 3% of those who are on universal credit and under conditionality are getting a sanction. The average sanction rate is 31 days.
The unemployment rate is at its lowest since the 1970s. We have record employment with more people in work than ever before, and wages have been rising faster than inflation for 13 months in a row.
The latest figures do indeed show that Britain’s economy is booming, unlike those of the rest of the European Union. Do the Minister and his colleagues on the ministerial team agree that the prospect of Brexit, with or without a deal, is driving forward the British economy and confidence in it?
My hon. Friend is of course right to point out that, despite any uncertainty around Brexit, the British economy is in good shape. We do have one of the highest employment rates in the EU, Britain is the No. 1 destination in Europe for foreign direct investment, and the IMF projects that our economy will grow faster than Germany’s this year. Unlike the Opposition, Conservative Members believe in supporting businesses and employers.
A constituent of mine is being passed from pillar to post by the DWP and the Scottish student loans group, both of which say she is entitled to support. She wants to start studying full time in September but, as a single parent, cannot do so without appropriate financial support. Will the Secretary of State or one of her Ministers meet me to see whether we can find a way out of this Catch-22 situation and ensure that my constituent and other single mothers like her, who want to improve their families’ opportunities, have the support to do so?
According to the Joseph Rowntree Foundation, 1.9 million pensioners now live in poverty, which is a complete disgrace. Given that 46,000 pensioners died prematurely last year, why has the winter fuel allowance not been increased for more than a decade?
My caseworkers recently updated me on the thousands and thousands of pounds of public money that they have helped to recover for constituents who are entitled to it, often after many months of delays. I am not satisfied with that; I am angry that this Government Department is keeping so many of my constituents and, I presume, others across the country in poverty for so long when they are owed this money. What is the Government doing about reviewing DWP’s shameful record on paying people money to which they are entitled?
I would just point out to the hon. Lady that, under the legacy benefits system, there are £2.4 billion of unclaimed benefits. That is changing and being fixed under universal credit. If she has specific cases, she will know that this ministerial team is always happy to talk to Members of Parliament to try to resolve issues. If she wants to talk about specific cases, I would be happy to do so after this session.
Visits to one of the food banks in my constituency have increased by 20% since the roll-out of universal credit. Trussell Trust referrals have risen by 52% since the roll-out of universal credit. Everything suggests that universal credit is not lifting people out of poverty, but pushing them further into it. Was that the Government’s intention with the roll-out of universal credit, because that is what is happening?
The Verify identification function for those claiming universal credit online does not work properly. When the Secretary of State is looking at that, will she also look at the problem that requires couples making a joint claim to verify their identity in person at the same time, which causes those sharing childcare and working shift patterns difficulty in claiming?
I am happy to discuss any issues around Verify with the hon. Gentleman, but, as he will know, there is more than one way for someone to verify their identity. Of course, they can use gov.uk Verify, but they can also use documentary evidence or a biographical test. Those are known, recognised tests, and they are all available in the system.
The Secretary of State just said that universal credit is better than the legacy system, yet evidence published this weekend shows that twice as many children will be pushed into poverty by universal credit, the two-child limit and the benefit cap. On top of that, universal credit is actually increasing infant mortality—the first time we have seen an increase in 100—
Centrepoint’s evidence to the DWP Committee showed that 96% of the young people it surveyed were not offered a traineeship or work placement if they were still on the youth obligation for six months. Does the Minister think it is worth having a closer look at what more could be done to improve the youth obligation?
I share the hon. Lady’s desire to make sure the youth obligation support programme works properly. We are looking at extracting information from the system, and I hope shortly to come and report on the findings from that.