Oral Answers to Questions Debate
Full Debate: Read Full DebateAmber Rudd
Main Page: Amber Rudd (Independent - Hastings and Rye)Department Debates - View all Amber Rudd's debates with the Department for Work and Pensions
(5 years, 9 months ago)
Commons ChamberMay I join you, Mr Speaker, in wishing a happy birthday to the hon. Member for Bolsover (Mr Skinner)? I hope he finds it a cheery occasion, as the rest of us do.
We are committed to having a strong safety net where people need it. It is clear that there were challenges with the initial roll-out of universal credit, and the main issue that led to an increase in food bank usage could have been the fact that people had difficulty accessing their money early enough. We have made changes to accessing universal credit, so that people can have advances and so that there is a legacy run-on after two weeks of housing benefit, and we believe that that will help with food insecurity.
The Secretary of State may be aware of the cross-party children’s future food inquiry that I am co-chairing. Over the past year, I have heard from charities, families and, most importantly, young people themselves about their experiences with food insecurity. The matter is complex, but they tell me that universal credit is making their situation worse. Will the Secretary of State join me in April for the launch of the report, and will she tackle children’s food insecurity as a matter of urgency?
I can reassure the hon. Lady, who chairs the all-party parliamentary group on school food, which I briefly co-chaired some while ago, that I am as committed as she is to addressing food insecurity, particularly for children. I believe and hope that the changes we have made in terms of access to early funds will have reduced food insecurity, but I will of course take an early interest in the report that she is producing. I look forward to seeing it.
Will my right hon. Friend confirm that someone on benefits moving into work under the legacy welfare system that we inherited from the Labour Government could have lost up to £9 of every £10 they earned? There was no incentive to work whatsoever.
My hon. Friend draws attention to a real failing of the previous system. There was such a high rate of tax—sometimes up to £9 out of every £10—that there was no incentive for people to get into work. I thank him for reminding us that universal credit adjusts to such situations and ensures that work will always pay.
The Secretary of State is, no doubt, right that delays in payment were part of the problem, but does she recognise that the fact that people are not entitled to any money for the first five weeks makes a big contribution to the problems that we are seeing?
I have acknowledged that people having difficulty in accessing money on time was one of the causes of the growth in food bank usage, but we have tried to address that. One of the principal ways of doing so is to ensure that every applicant can receive advance payments on the day that they apply. In fact, I visited a jobcentre just before Christmas and was told about a number of claimants who came in for the first time on the Friday before Christmas and got those advance payments.
One recent change has actually made things worse. A bunch of my constituents, who were merely changing address with the same social landlord and who were covered by the alternative payment arrangements, suddenly found that they were 10 weeks in arrears on the housing benefit element when the bulk payments element was brought in, putting them in even worse debt. All the things that the Secretary of State is talking about today have made things worse in recent weeks, so I hope she will look at the matter.
Of course I will take a look at any particular cases that the hon. Gentleman brings to me. I have addressed the issue of direct payments of rent to landlords being made more frequently by saying that alternative payment arrangements should generally be more available. The fact is that universal credit is a more effective, more transparent system than what it replaces. One of the best ways to ensure that that is actually delivered on the ground is for MPs to engage with their jobcentres to make sure all that information is available.
We know from a series of academic and stakeholder reports that the rise in food insecurity can, at least in part, be put down not just to the implementation but to the value of social security benefits. The Secretary of State has acknowledged that, I think for the first time, this afternoon. We also know from Library figures that higher than expected inflation means that the benefits freeze will save an extra £1.2 billion in the coming year. Does the Secretary of State agree that those low-income families who are being driven into food poverty deserve a break and that the benefits freeze should stop this year?
May I just point out to the hon. Gentleman that, by 2020, payments made under universal credit are expected to reach £62 billion, compared with £60 billion under the previous system? [Interruption.] The hon. Gentleman raised the issue of the amounts, and I am merely pointing out to him that, with the changes in place, the amounts are larger under universal credit than they would have been under the previous system.[Official Report, 14 February 2019, Vol. 654, c. 10MC.]
Our new guidance, which was introduced last August, now ensures that claimants with chronic conditions that are unlikely to change over time will receive an ongoing award, with only a light-touch review every 10 years. This is an important step in preventing those long-term claimants with the highest needs from having to undergo unnecessary reviews of their condition.
I appreciate the Secretary of State’s response, but will her Department review the cases of those who have already had decisions overturned? For example, I had a constituent with three brain tumours. She was awarded the highest rate of daily living and mobility allowance in 2016, but then reassessed in 2018 and not awarded anything. We had to appeal that decision, the appeal was of course successful, and she received a backdated payment of £5,000. I am sure the Secretary of State would agree that that was cruel and inhumane for someone at my constituent’s point of life. Is the Department going to look back at how many people slipped through the net over the past few years, before the Secretary of State made changes?
It is difficult to make policy based on individual cases discussed across the Chamber, but if the hon. Lady wants to show me that individual case, I will certainly look to see whether it should impact on the changes we have already made and will look at going forward.
Since 2013, nearly 8,000 disabled people have died within six months of being found ineligible for personal independence payments—yet more evidence that the assessment process is not fit for purpose. If the Secretary of State is not prepared to scrap this inhumane process, will she at least support the Bill promoted by my hon. Friend the Member for Bridgend (Mrs Moon), which would remove the arbitrary and cruel six-month time limit for people with a terminal illness?
The hon. Lady will be aware that under disability living allowance there were also assessments and difficulties with getting people paid on time, so let us not pretend that this is a wholly new change in terms of the consequences. I have started to look at the proposal from the hon. Member for Bridgend (Mrs Moon), to make sure that people with a terminal illness are treated correctly and get the support that they need as soon as possible.
The personal independence payment reassessment process is taking far too long for my constituents, with an average delay of more than 40 weeks. That causes a problem for people with significant health concerns. What action is my right hon. Friend taking to substantially reduce the waiting times in the Bolton and Wigan area?
I thank my hon. Friend for fighting so hard for his constituents and making sure that the most vulnerable in his constituency are well represented and looked after by their Member of Parliament. I believe he was referring to the tribunal reviews that take place when there are PIP appeals. We are working with Her Majesty’s Courts and Tribunals Service to make sure that we speed up the process to ensure that the waits are not so long.
It is all very well for the Secretary of State to say nice words about light-touch reassessment, but she will be aware of the case I raised last week in which a constituent whose condition worsened was assessed and lost her benefit as a result, and she will be aware of the case I have previously raised of the constituent whose leg was amputated and who was then assessed, on the basis of a phone call, as being able to walk four times further than he could the previous year on the basis of a work assessment. When are we going to see the reality of these assessments match up to the nice cuddly words we get from the Secretary of State, instead of their being used as a brutal and inhuman way to take people off benefit?
I would caution the hon. Gentleman about being so negative about an assessment that, yes, works for the vast majority of people. Only a certain number of the appeals get through and only 5% of the total number of assessments are overturned. I do not want people generally who are listening to and watching this exchange to think that the assessments are something to be fearful of. The people who conduct these assessments are sympathetic, thoughtful people who try to give the right answers. [Interruption.] Yes, they are. I urge the hon. Gentleman to let me know if he has a particular case or cases, because I or the relevant Minister will always talk to him and make sure that the outcome is settled.
I am pleased to say that, because of the changes made by this Government, we have record levels of employment—up 3.4 million since 2010—and the female unemployment rate is currently at a record low.
Recent figures show that unemployment in my constituency continues to fall. What plans does the Secretary of State have to reduce it further by working with businesses and further education colleges to ensure that young people have the skills needed for today’s workplace?
I thank my hon. Friend for the good work that he does in his constituency to ensure that unemployment continues to fall. We are committed to providing targeted support to young people, so that everyone—no matter what their start in life—is given the very best chance of getting into work. The Jobcentre Plus support for schools programme helps to improve the employability of young people and has resulted in thousands of children being better equipped for today’s labour market.
Unemployment in my constituency has actually risen by 30% over the past 12 months. Given today’s economic figures, which show very low economic growth over the last seven years, and given the impending doom of no deal, what contingency plans is the Secretary of State making so that unemployment does not rise still further?
I urge the right hon. Gentleman not to be so despondent about the growth figures today. We are seeing growth. Overall employment continues to rise. If he would like to speak to one of us regarding any scheme he has to boost employment in his constituency, I would be pleased to see him.
The hon. Member for Fylde (Mark Menzies) asked about employment trends, but one trend that he did not mention is that zero-hours contracts have quadrupled since 2010. This week is HeartUnions Week, so will the Secretary of State join me, the TUC and the Labour party in pledging to ban these disgraceful contracts?
I am afraid that the hon. Gentleman may have his facts wrong. Zero-hours contracts are down; 780,000 people are currently on zero-hours contracts, down from 883,000 in the same period in 2017. Overall, we estimate that 2.4% of the employment market are on zero-hours contracts.
I take a particular interest in ensuring that the Department for Work and Pensions liaises closely with the Home Office to make sure that the Windrush generation are properly supported. So far we have helped over 400 customers to swiftly confirm their status and access benefits.
Thank you, Mr Speaker. I am always proud of the students at Elm Wood Primary School, which is indeed an excellent school with brilliant students.
I have been writing to the Secretary of State for many months on behalf of my constituent, who was the first Windrush citizen to return to the UK in May last year. She has since been denied access to attendance allowance because she was not in the country during the assessment period. The only reason she was not in the country at the time was the illegal action of the British Government. I have been told by the DWP that she must wait until the Windrush compensation scheme is published and include within her claim compensation for benefits she is due now. That is absurd and unacceptable. Why is the Secretary of State, who presided over the Windrush scandal as Home Secretary, continuing to compound and extend the injustice that Windrush citizens are suffering by failing to put in place the support they need to access all the benefits to which they are entitled?
I would like to reassure the hon. Lady that I have looked into this case, and I do take seriously, as she and the House would expect, the issue of ensuring that the Windrush generation are supported correctly by the DWP. We have reinstated the claimant’s pension credit and have awarded arrears to date. With regard to the attendance allowance, I will be writing to the hon. Lady, and officials are working to resolve the matter. I will provide the letter as a matter of urgency.
Today I am delighted to confirm that 10 million workers have now been automatically enrolled into a workplace pension. Since 2012 this policy has been transforming savings culture. The increase in pension uptake has been particularly marked in younger workers, women and those on low earnings. For many, a private workplace pension was once a pipe dream. Thanks to the action we have taken, it is now a reality. Today I am also bringing forward plans to strengthen the Pensions Regulator to protect final salary pensions, including a new prison sentence of up to seven years in certain circumstances. These measures show that the Government are on the side of workers saving for retirement and that we will protect their incomes from the reckless behaviour of a small number of unscrupulous bosses.
I have many female constituents who are self-employed or on zero-hours contracts. They do not have a set regular monthly wage, yet the DWP insists on a four-week assessment period to assess their earnings and determine their benefits. Those women are being forced into hardship by sudden cuts to their benefit payment and a lengthy appeals process, which can take up to three to four months. Why can the DWP not recognise the situation that those on fluctuating incomes are put in and revise its guidelines accordingly?
I hope the women the hon. Lady refers to are engaging with their work coaches, who try to provide a tailored service to enable individuals to realise how much better supported they are under this system. I would also point out that female employment is at a record high—jobs and support are out there. With the help of work coaches, we want to ensure that the women she refers to do not just get the average jobs they may start on, but have a real opportunity to develop careers.
I thank my right hon. Friend for his support. In his constituency, 21,000 people and 4,290 employers are now auto-enrolled. It is working well in his constituency. In April, we will increase the amount of contribution from employers.
Social security sanctions can be detrimental to the health and wellbeing of claimants, and, in extreme cases, push people into destitution. The Government’s response to the Work and Pensions Committee report was shocking. Apparently, they are only prepared to consider increasing the length of sanctions, not reducing them. What has happened to the concept of compassion? Will the Secretary of State end the Government’s cruel and counterproductive sanctions regime?
I do not recognise the hon. Lady’s description. I have been around jobcentres. I always make a point of speaking to work coaches, asking them about the way they impose sanctions and when. They always say to me that it is a last resort only done after a series of engagements. This is a personal choice that work coaches make. They have a lot of discretion and in my experience they are using it correctly.
I am happy to say that that is exactly the aim of universal credit: to ensure that it helps people while they are in work, gives them the additional funds they may need, and ensures that the taper rate, the amount of tax they pay as they move into more employment or a higher level of pay, does not adversely affect their ambitions and their ability to earn more.
The Government are about to enact an element of policy passed seven years, two Parliaments and two Governments ago without a debate or a vote. Mixed-age pensioner couples are set to lose £7,000 from their household income if the changes to pension credit go ahead. Surely, with the Joseph Rowntree Foundation saying that 300,000 more pensioners are in poverty now compared to 2012, the Secretary of State must seek a new mandate from this House for these cuts and have a debate and a vote?
This was a policy that was introduced and voted on in the House in 2012. It is right that some people who are paid very low wages and are paying taxes should not have to pay for other people to make different life choices that they feel they cannot afford. The hon. Lady is probably aware—I hope she is—that we changed the retrospective nature of that policy to ensure that families who were already in existence before 2012 were not adversely affected by it. I think that is the right balance.
The House will know that the Government are doing more than ever to support people with disabilities in the workplace. Will the Minister tell us what is currently being done to safeguard the dignity of long-term sufferers on employment and support allowance and universal credit?
I understand the hon. Gentleman’s approach to this, but I must remind him of the terrible financial inheritance that we took on, which required belt-tightening, from which we are now getting some of the benefit. I also point out to him that now wages are rising faster than inflation, this is a significant change for people in receipt of it.
A constituent of mine, who suffers from paranoid schizophrenia, works part time in a catering assistant role, which she began as a volunteer. However, last April, she was informed that the entire year of ESA would be reclaimed due to a mistake in the reporting of her hours and salary. Does my right hon. Friend agree that claimants can often be vulnerable to errors, and would she agree to meet me to discuss this very difficult case?
Of course, I will meet my hon. Friend to ensure that the right decisions have been made, but I would point out that she has drawn attention to one of the benefits of universal credit: a monthly assessment allows a much more accurate payment to be made to individual applicants.
As I was able to say earlier, only under 2.5% are on zero-hours contracts. The facts do not support the hon. Gentleman’s approach. He can have his own views; he cannot have his own facts.
Additional cold weather payments are paid over the winter months when average ambient temperatures fall below zero degrees for a period of seven days. It is a welcome measure, particularly in Scotland, but may I ask my hon. Friend, on behalf of my constituents around the Banff and Buchan coast, if wind chill factor could be taken into consideration in any future review?
I certainly hope that that does not come forward, but I think this is the responsibility of the Department for Digital, Culture, Media and Sport, so I am sure that the hon. Gentleman will want to put that question to its Secretary of State.
Some people are paid four-weekly, not monthly, so one month of the year, they will get two payments. Will the Minister ensure that universal credit can cope adequately with this situation?
I thank the right hon. Gentleman for the extraordinary work he did that has led in part to our announcement that there will now be prison sentences for people who commit the sort of criminal activity we have seen. I cannot be drawn on that individual case, unfortunately, but I believe we will see a different regime going forward.
We have now had 10 consecutive months of real growth in wages. Can the Secretary of State confirm that this is the strongest real-terms wage growth in this country for 10 years?
I thank my hon. Friend for bringing attention to that fact. It is good news for people who are earning and people living on lower incomes, and I certainly hope that it continues.
Many people across the House will have been shocked by the pictures of my constituent Stephen Smith, who has a progressive lung disease and was hospitalised at 6 stone. He had repeated failed appeals and tribunals, and the Liverpool CASA, his advocate, said:
“We were unable to solicit any reply from the DWP”.
He was readmitted to hospital because he was so unwell, and it was only after I intervened that the DWP overturned its decision, but it should never have got to that. What will the Secretary of State do to ensure that no one in our country faces such an injustice in seeking the support they are entitled to and deserve?
I share the hon. Lady’s indignation. We have apologised to Mr Smith and his ESA payment has been repaid and reinstated in full. I will take a personal interest in ensuring that, where errors were made, they are corrected.
Under our benefits system, serious or terminally ill students have to abandon their courses to claim benefits. It is wrong for us to be telling students to give up on the hope of getting better and to abandon their courses just to claim benefits. We have to put this right.
I thank my hon. Friend for his campaign. I share his view that we need to take action. We are developing policy and I will make sure that he is the first to know what action we do take.
Turning back to the question from my hon. Friend the Member for Airdrie and Shotts (Neil Gray), does the Secretary of State not share the outrage of many people that her Department is pushing through cuts to pension credit with no legislative procedure? Will the Government bring the statutory instrument to the House for debate so that Parliament can discuss this enormous cut to low-income pensioners and the double whammy to many women born in the 1950s?