Oral Answers to Questions

Amber Rudd Excerpts

Monday 18th March 2019 Commons Chamber

[Luke Graham (Ochil and South Perthshire) (Con)]

23. What comparative assessment her Department has made of the levels of financial support available through (a) universal credit and (b) the legacy system.

[The Secretary of State for Work and Pensions (Amber Rudd)]

When fully rolled out, universal credit will be £2 billion per year more generous than the support it replaces. As a single system that integrates six legacy benefits, universal credit will enable 700,000 households to access approximately £2.4 billion of welfare that previously went unclaimed. Our welfare reforms are about targeting support at those who need it most.

[Bob Blackman]

At the Budget, additional funds, which are to come into effect in the new financial year, were allocated to pay for work allowances,. Will my right hon. Friend update the House on when those work allowances will come in, how much they will be, and how much extra the working people in my constituency who receive universal credit can expect to receive each week?

[Amber Rudd]

My hon. Friend is right that an extra £1.7 billion a year will be put into work allowances to increase them by £1,000 from April 2019. That will provide a boost to the incomes of the lowest paid that will result in 2.4 million families keeping an extra £630 per year of what they earn.

[Huw Merriman]

It is not just the financial support that is key, but the support provided by jobcentres in getting people work-ready. One of my constituents was languishing on benefits for a decade with no interventions. Now, under universal credit, she is being helped and supported to become job-ready. Will my right hon. Friend ensure that we continue this approach, and that we reach out and support the work coaches in jobcentres?

[Amber Rudd]

I thank my hon. Friend and near parliamentary neighbour for pointing out the excellent work done by work coaches. The defining difference between universal credit and the legacy benefits that it replaces is that tailored, personal approach, which really helps individuals to get back into work.

[Luke Graham]

What support is being given, through not only universal credit but schemes such as Access to Work, to those who experience mental ill health?

[Amber Rudd]

I thank my hon. Friend for pointing out this important element of universal credit. We are determined to make sure that universal credit really supports the most vulnerable. We are piloting a new scheme in Milton Keynes in which people with mental health difficulties are given an early referral to make sure that their needs are dealt with early on, so that they can be given the appropriate, personal, supportive care that they need.

[Stephen Timms (East Ham) (Lab)]

The five-week wait for universal credit assumed that everybody would have their last month’s pay cheque in the bank, but reality is not like that. Most claimants have to take an advance—a debt to the Department—the repayment of which often forces people to use food banks, as the Secretary of State has rightly acknowledged, or go into rent arrears. Will she scrap the five-week delay?

[Amber Rudd]

I thank the right hon. Gentleman for raising this important issue; we have addressed concerns about the five-week wait by putting in additional measures. One measure now in place relates to the receipt of legacy housing benefit over two weeks. All universal credit applicants can get an advance, and we now find that 60% of applicants take up that opportunity. That obviates the need for concerns about the early amount of cash that people get.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

I spent most of Saturday collecting a third of a tonne of food for our local food banks as part of our Winter of Compassion campaign. It is already clear that we will have to run such food-bank collections all year round. When will the Secretary of State join us in Birmingham to help collect the food needed to end the hunger that her policies are causing?

[Amber Rudd]

I totally reject the right hon. Gentleman’s assumption and comments. The issue with food banks is partly that the early roll-out of universal credit had some difficulties. We now know that 85% of applications for universal credit are paid on time and, as I said in answer to an earlier question, 60% of people get advances. I hope that that combination will enable people to access the cash that they need straight away.

[Jo Swinson (East Dunbartonshire) (LD)]

Despite the recent funding, the levels of work allowances have still not recovered from the cruel cuts made to them back in 2015. Does the Secretary of State recognise that although the principle of simplicity behind universal credit is a good one, if universal credit is to have credibility, it needs to be funded properly?

[Amber Rudd]

It is because universal credit needs to be funded properly that my right hon. Friend the Chancellor has, since 2016, put another £10 billion into different areas of it, to ensure that it does what it sets out to do, which is support the most vulnerable and help others into work.

[Alison Thewliss (Glasgow Central) (SNP)]

The UK Government have removed the higher rates in universal credit for lone parents under 25. In answer to a question from my hon. Friend the Member for Airdrie and Shotts (Neil Gray), the Minister for Employment had the audacity to claim that under-25s have lower living costs, and that

“this reflects the lower wages that younger workers typically receive”

as a result of state-sanctioned age discrimination, including through this Government. Will the Secretary of State tell me in what way it costs a 24-year-old less to be a single parent than it costs a 26-year-old?

[Amber Rudd]

I point out to the hon. Lady that we have made available more childcare that is both better and lower-cost. A person can now have 85% of their childcare costs paid under universal credit. We have also made sure, as I said in a recent announcement, that work coaches have the wherewithal, through the flexible support grant, to give that money to people who need it early on in the process.

[Mike Amesbury (Weaver Vale) (Lab)]

Ministers may like to claim that nobody will be worse off on universal credit, but people transferring through natural migration get no protection against loss of income, even though they may just have moved home. Will the Secretary of State tell the House what the Government will do to ensure that nobody is left worse off?

[Amber Rudd]

I ask the hon. Gentleman to engage with the change that is universal credit. People were left to languish on previous legacy benefits, and were not helped into work at all. We now have a system where the money is focused on trying to help people into work. That is why we have seen the changes with the work allowance, and why we have seen additional support from the Chancellor. It is a different system from that point of view.

[Mary Robinson (Cheadle) (Con)]

2. What steps she has taken to ensure that universal credit is tailored to individual claimants’ needs.

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[Mr Philip Hollobone (Kettering) (Con)]

6. How many people in Kettering constituency receive (a) personal independence payment, (b) employment and support allowance and (c) universal credit.

[The Secretary of State for Work and Pensions (Amber Rudd)]

I am pleased to say that since 2013 the number of people claiming unemployment-related benefits in Kettering has decreased by over a third. The latest published statistics show that there are 3,520 people on PIP in Kettering, 35% of whom are getting the highest rates, compared with 14% of working-age disability living allowance recipients in the area when PIP was introduced.

[Mr Hollobone]

It is taking too long for those who are refused PIP to successfully appeal against the decision. Across the country, it takes 190 days, and the worst 10% of cases in the east midlands now take 300 days. What percentage of PIP refusals are successfully overturned on appeal?

[Amber Rudd]

I share my hon. Friend’s concern that it is taking too long, and that too many appeals are indeed overturned. That is why I committed in my most recent statement to making sure that we look again at mandatory considerations to make them more effective, so that we can start to reverse this. I share his concerns and I am addressing the issue.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

rose—

[Mr Sheerman]

The Secretary of State is a fair-minded person. This morning, I have been looking at her constituency stats, the Kettering stats, and my stats in Huddersfield. However, I appeal to her to raise her vision beyond just the stats and the data, and to look at the evidence from children’s charities such as Action for Children, which will tell her that in her patch, in Kettering and in my patch, child poverty has not diminished.

[Amber Rudd]

I am very mindful of what we are delivering on the ground to individual constituents, families and children. We attempt, we hope, to protect the vulnerable and help people into work, but I know that my Department has a part to play in reducing poverty, and I am focused on that.

[Mr Ranil Jayawardena (North East Hampshire) (Con)]

7. What recent assessment her Department has made of the number of people in work in Hampshire.

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[Heidi Allen (South Cambridgeshire) (Ind)]

9. What assessment she has made of the effect of the five-week wait to receive universal credit on claimants’ levels of debt.

[The Secretary of State for Work and Pensions (Amber Rudd)]

No one has to wait five weeks for the first part of their benefit because, as the hon. Lady is aware, they can get an advance of up to 100%, and 60% of people do that. We have also introduced a two-week run-on of housing benefit, and from next year a further two-week run-on of employment and support allowance, jobseeker’s allowance and income support will be available. Those payments are in addition to each claimant’s universal credit benefit award.

[Heidi Allen]

I am afraid to say that the five-week wait issue is not going to go away until the Government recognise that it is driving some people to food banks. I was in Glasgow on Friday with the Chair of the Work and Pensions Committee, the right hon. Member for Birkenhead (Frank Field), and we will continue on our tour of the UK, taking a camera crew with us and shining a spotlight on poverty until the Government change their mind on this. For the most vulnerable in society who have zero financial resilience, the four-week assessment period makes no sense at all—they have to wait four weeks to prove they have no money. I have suggested that there is a need to identify the most vulnerable claimants—those with no financial resilience—and hand-hold them through the system, and either make the assessment period start at minus four weeks or make those advance payments non-repayable grants, not for everyone but for the vulnerable.

[Amber Rudd]

I am always willing to look at suggestions for how to improve universal credit. The hon. Lady is well known for bringing forward a lot of suggestions for us to look at. However, we need to be careful not to create incentives that are counter to our intention to help people into work. I do believe that advances work well, and the work coaches I talk to—I also go around the country talking to people about it—do tell me that they make a significant difference.

[Joanna Cherry (Edinburgh South West) (SNP)]

A constituent of mine, a working mum with two little girls, had to wait the five weeks for her universal credit claim and then a further month for assistance with childcare costs because the Department insists on paying childcare in arrears. We all know that, in the real world, nurseries have to be paid in advance, so why cannot the system recognise that simple reality?

[Amber Rudd]

We have acknowledged that issue. I have announced that work coaches now have access to the flexible support fund so that they can give that money in advance and do exactly what the hon. and learned Lady is suggesting—giving that money to the people who need it when they are ready to pay for childcare to get into work.

[Ms Karen Buck (Westminster North) (Lab)]

10. What assessment she has made of the financial effect of the benefit cap on claimants who are not required to undertake a work search.

--- Later in debate ---

[Will Quince (Colchester) (Con)]

21. What steps the Government are taking to support victims of domestic abuse through the welfare system.

[The Secretary of State for Work and Pensions (Amber Rudd)]

Domestic abuse is a devastating crime and my Department will always do what it can to support victims of domestic abuse. Departmental training and awareness is now better than ever, but I can confirm that, by the summer of this year, we will ensure that we have domestic abuse specialists in every jobcentre to help everybody who needs it.

[Will Quince]

What steps are the Government taking to increase the provision and quality of supported housing for such vulnerable people?

[Amber Rudd]

I thank my hon. Friend for raising this issue. Of course, supported housing is essential for vulnerable groups, including those fleeing domestic abuse, which is why we announced in August last year that we will maintain funding for all supported housing and housing benefit. I am going to work closely with the Secretary of State for Housing, Communities and Local Government, the Chancellor and local authorities to ensure that quality and value for money are always available in supported housing provision for domestic abuse victims.

[Ruth George (High Peak) (Lab)]

Making sure that the system prevents domestic abuse, including financial abuse, is as important as supporting those, rightly, who are affected by it. The Secretary of State made a statement a few months ago regarding single payment of universal credit. What progress has she made on that to make sure that women and the children they support as main carer can directly receive the support that they so rightly need?

[Amber Rudd]

I thank the hon. Lady for raising this issue. She is right and I announced recently that I want to make sure that it is the main carer who receives the benefit. I am working with jobcentres to ensure that we have a new approach so that there is effectively an early question in their process where they find out who the main carer is, who is usually a woman, so that we can ensure that potential victims of domestic abuse are more likely to have access to the overall funds.

[Mr Speaker]

Patience and the City of Chester are alike rewarded. I call Mr Christian Matheson.

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[Jack Brereton (Stoke-on-Trent South) (Con)]

T1. If she will make a statement on her departmental responsibilities.

[The Secretary of State for Work and Pensions (Amber Rudd)]

Today I can announce that this Conservative Government will deliver on their promise to legislate to create a new type of pension scheme: collective defined- contribution schemes. These schemes will help improve retirement outcomes for members, while also benefiting employers. Savers’ contributions are paid into a pooled fund, which is invested to achieve a target benefit. At retirement, savers receive a regular pension income. This is a major promise delivered. It shows this Government are meeting their objective to protect private pensions and provide security for hard-working savers in retirement.

[Jack Brereton]

I thank my right hon. Friend for updating us on her Department. Will she comment on how the Government are helping young people in my constituency into work?

[Amber Rudd]

I thank my hon. Friend for raising this important matter, and I thank him particularly for the great work he does in his constituency for young people. I have looked into this, and there are many different initiatives taking place in his constituency, but I particularly commend the Prince’s Trust, which does such great work across country, and which attends the jobcentre fortnightly to provide targeted support for 18 to 24-year-olds.

[Marsha De Cordova (Battersea) (Lab)]

Shocking reports have emerged today that ill and disabled people are being left without vital social security, as the Department for Work and Pensions has sent misleading letters to GPs advising them that they no longer need to provide fit for work notes to patients who are refused employment and support allowance. Patients need those notes to access the assessment rate of ESA if they are appealing the decision, and this obviously results in many being left close to destitution and in rent arrears. Will the Secretary of State commit today to reword these letters and immediately prevent any further harm to any ill and disabled people?

[Amber Rudd]

I thank the hon. Lady for giving me the opportunity to set the record straight. These letters simply inform GPs when a claimant has been found fit for work, and are not intended to dissuade them from issuing fit notes for ESA appeal purposes. To claim otherwise is inaccurate. We are committed to ensuring our communication is clear, which is why the wording of this letter was cleared by both the British Medical Association and the Royal College of General Practitioners. However, we will of course consider feedback when revising the letter.

[Mr Marcus Jones (Nuneaton) (Con)]

T7. Several constituents have arrived at the disability assessment centre in Coventry only to find that they are not able to access their appointment because the centre is on the first floor. Will my right hon. Friend look at this issue to see what more can be done to make sure all these assessment centres are on public transport routes and are completely accessible to disabled people?

[Amber Rudd]

Of course. My hon. Friend is right. I will take a careful look at that issue to ensure that is the case. We care enormously about making sure there is correct access for disabled people. If I may say so, nobody cared more than my hon. Friend the Member for Truro and Falmouth (Sarah Newton), who did such great work for everybody with disabilities and who will be sorely missed in the Department.

[Alison Thewliss (Glasgow Central) (SNP)]

My SNP colleagues and I have been seeing a growing number of constituents who are EU and European economic area nationals and who were previously entitled to social security payments but who are now seeing their universal credit claims rejected because they have failed the habitual residence test. Can the Minister tell me categorically whether DWP guidance has been issued or changed on this matter, and whether this is just an extension of the hostile environment?

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[Stephen Kerr (Stirling) (Con)]

Is my right hon. Friend’s Department holding up the transfer of welfare powers to the Scottish Government?

[Amber Rudd]

Absolutely not. We work closely with the Scottish Government to ensure that their proposals, which sometimes differ from ours, are met, and we are bending over backwards to ensure that we assist them. We are still waiting to receive further information so that we can deliver on their ambitions.

[Several hon. Members rose—]

--- Later in debate ---

[Stephen Timms (East Ham) (Lab)]

T5. When Bright Blue surveyed claimants for its new universal credit report, it found that the five-week wait was their biggest concern. According to the report: “Only a handful of interviewees said they had enough…to cover their expenses in this period.”The Secretary of State cannot justify the five-week wait. Will she scrap it?

[Amber Rudd]

As the right hon. Gentleman knows, we are introducing measures to help people gain early access to money so that that eventuality does not occur. They can receive benefit advances of up to 100%, which 60% now access, and can access the housing benefits run-on, which is additional money, and, from next year, other legacy benefits, which are also additional money and which will be paid within that two-week period.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

T6. Council tax payers in the highlands are continuing to bear the burden of additional administration expenses amounting to many hundreds of thousands of pounds as a result of universal credit. The Minister met me in January, and his officials have subsequently met council officers. The situation is clearly unfair. When will it be sorted out, and the money reimbursed?

[Alex Norris (Nottingham North) (Lab/Co-op)]

T8. Disability Direct, an advocacy organisation in my constituency, has a staggering 89% success rate at tribunals where its clients appeal against judgments on employment and support allowance and personal independence payments. Do Ministers really not accept that when they are losing nearly 90% of the time, their system is not working?

[Amber Rudd]

That, of course, applies to 4% of the overall decisions that are made. However, I acknowledge that we need to do better, for the hon. Gentleman’s constituents and those of the rest of us. That is why I have already announced that we will look again at the mandatory reconsiderations to ensure that fewer people proceed to the necessary tribunal reviews.

[Ms Marie Rimmer (St Helens South and Whiston) (Lab)]

T9. Given that 72% of PIP assessments are overturned, and that, as we have heard, many of those who are assessed are vulnerable or have learning disabilities, what support is available to them when they are faced with highly paid DWP lawyers at legal tribunals?

[Amber Rudd]

I have just answered that question, in terms of making sure that we do better and that the mandatory reconsiderations will have additional support to ensure that a greater proportion of those reviews do not have to go forward and so are not overturned.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

George Osborne said in his 2015 summer Budget that the welfare system should always support the elderly and the vulnerable. Does the Secretary of State agree? If so, why are we seeing stealth cuts to pension credit for mixed-age couples—a loss of £7,320 to some of our poorest and most vulnerable pensioners?

--- Later in debate ---

[Mrs Madeleine Moon (Bridgend) (Lab)]

Like the Secretary of State, I will miss the hon. Member for Truro and Falmouth (Sarah Newton); she was working with me on my Access to Welfare (Terminal Illness Definition) Bill—a critical Bill at a time when the Scottish Government are consulting on new standards for clinicians to decide when someone is terminally ill. Will the Secretary of State meet me to discuss the Bill and move it forward?

[Amber Rudd]

I am aware of the good work that my hon. Friend the Member for Truro and Falmouth was doing with the hon. Lady; I am aware of the campaign and how important it is, and I will be delighted to meet the hon. Lady to see how we can move it forward.

[Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)]

My constituent received a UC sanction for accompanying her younger sister, who has severe cerebral palsy and for whom my constituent cares, to an appointment at the children’s hospice at Loch Lomond. Surely that is an inhumane way to treat young carers under the UC system.

--- Later in debate ---

[Amber Rudd]

It sounds to me like the hon. Lady’s constituent should have had a home visit, but I hope that the hon. Lady will have received the email I sent out inviting Members of Parliament to an open hour that I am having tomorrow so that they can bring any individual cases. Sometimes it is best to have a one-to-one over individual cases, rather than deal with them on the Floor of the House.

[Christine Jardine (Edinburgh West) (LD)]

I would like to press the Secretary of State further on the assurances she gave to the Opposition Front Benchers. As part of the review, will she be prepared to ensure that the original wording is reinstated so that claimants are not left without benefits while appeals are pending?

[Amber Rudd]

I am always willing to look at new ideas on how to improve the offer we have, and I will certainly take a look at what the hon. Lady sends to me.