Social Security (Additional Payments) (No. 2) Bill

Amy Callaghan Excerpts

Committee stage
Monday 6th March 2023 Commons Chamber

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I add my voice to those welcoming you back, Dame Eleanor. It is so lovely to see you back in your rightful place.

I rise to speak to new clause 7, which stands in my name. As the Chair of the Work and Pensions Committee, my right hon. Friend the Member for East Ham (Sir Stephen Timms), has already said, new clause 7 is about reviewing the public health and poverty effects of the Bill. It requests that the Secretary of State

“review the public health and poverty effects of the provisions of this Act and lay a report…before the House of Commons within six months of the passing of this Act.”

The reason why we need to do so is that we know our health, how long we live and how long we live in good health are driven by the social, economic and environmental policies that we in this place enact. Given that we now have a declining life expectancy in our country, addressing this issue cannot be delayed any further.

As chair of the all-party parliamentary group on health in all policies, I authored in 2021 a report that looked specifically at the health effects of the Welfare Reform and Work Act 2016. That report pulled together the evidence on the reduction in support since 2012 by successive Administrations—some £34 billion in support to working-age people has been cut since 2010—and the impact that that reduction has had on social security-driven poverty and, in turn, on health. If I may, Dame Eleanor, I will read out a section of that report:

“Each 1% increase in child poverty was significantly associated with an extra 5.8 infant deaths per 100 000 live births”

and

“about a third of the increases in infant mortality between 2014 and 2017 can be attributed to rising child poverty”.

Earlier in that report, it set out how significant those changes in social security were, as my right hon. Friend the Member for East Ham mentioned. That reduction in value has not only been the worst in the UK but, I think, the worst in the OECD and the worst in the EU. As for its impacts, I have just mentioned the relationship with infant mortality. When Michael Marmot published his 10-year review of the impact on inequalities, he mentioned the contribution of the declining value of social security support, and the lack of protection that it provided to the most financially vulnerable. In turn, he related that to the contribution of the UK’s flatlining life expectancy—it was flatlining in 2017, although in my part of the world, in Oldham, it was actually declining. Now we are seeing declining life expectancy across England, and the reduction in the value of social security support is a major contributor to that.

I hope that the Minister will take a look at my new clause 7, which is about developing good policy that will benefit the constituents we serve. I also add my support for amendment 3, tabled by my right hon. Friend the Member for East Ham and the hon. Member for Amber Valley (Nigel Mills), and for amendment 2, on sanctions, tabled by the hon. Member for Glasgow East (David Linden).

[Amy Callaghan (East Dunbartonshire) (SNP)]

It is great to see you back in the Chair, Dame Eleanor.

We are all broadly united in this Chamber today, in that we recognise that our constituents need additional financial support, but the reality is that we are here today because of 12 years of Tory austerity. The cost of living crisis has occurred because of Brexit and because of the policies of austerity, so it is welcome that we are having a debate on this Bill if even so we can go over broader DWP failings and mismanagement.

One example is that a very recent 38 Degrees poll found that 20% of my constituents fear that they may have to use a food bank. I am not convinced that these payments will help with that figure at all. This Government are giving our constituents the additional payments outlined in the Bill, yet they still impose the benefit cap, the bedroom tax, the rape clause and cuts to universal credit. Naturally, the British Government will sit here today hoping for a round of applause for these additional payments, but frankly, these pennies are nowhere near enough to make up for the grossly flawed benefit system that this Government preside over. This support is a start, and it needs to be just that. In the face of a Tory-made, Brexit-induced cost of living crisis, we need this Government to step up and step up more, again and again.

I have previously spoken in this House about my constituent Stacey, who I met in hospital while we recovered from our strokes together. Stacey and her family struggle to make ends meet. The Government will be aware of the significantly increased costs that disabled people face, so I would be keen to hear exactly what difference the Government think this £150 payment will make to them. I also echo the call of my hon. Friend the Member for Glasgow East (David Linden) that an assessment should be made of the fact that legacy benefits were not uplifted during the pandemic in the way that universal credit was. It would be revealing to see the impact that has had, particularly on disabled people.

My constituents and people across Scotland are being failed by this Tory Government. Week by week, this Government try to steer conversation towards one topic or the next, but when I speak to my constituents, the issues caused by this Government’s failing, broken social security system are consistent. Dignity and the basic living conditions of our constituents are simply not a priority for this Government but an afterthought, hence them not bringing forward the uprating of benefits to before April. The House of Commons Library has published information showing that inflation is being felt worse than ever, and also that it is usual or the norm for this uprating to occur in April, but that no Government are bound by that; it is just common practice. These are not normal times we are living through, and support should be accelerated, instead of civil servants’ time being wasted applying the Retained EU Law (Revocation and Reform) Bill. I would also appreciate some clarity on the timing of these additional payments—that should have been laid out before now.

Amendment 2 would fix a flaw in the Bill as it stands. It seems utterly unreasonable that any one of our constituents could miss out on this additional support because they have been sanctioned under this Government’s cruel sanctions regime.

[Hannah Bardell (Livingston) (SNP)]

My hon. Friend speaks about sanctions. Does she share my concern that in probably one of the grimmest league tables around, my constituents are No. 4 in Scotland for the number of people being sanctioned? Some 10% of claimants are being sanctioned, and one reason is public transport. We have significant challenges with public transport, because we cannot get enough bus drivers, and we cannot get enough bus drivers because of Brexit. Those constituents are facing a triple whammy—from the cost of living crisis, from being sanctioned because they cannot get there, and from the increasing cost of living and energy costs—because of the policies this Government have pursued.

[Amy Callaghan]

Unfortunately, my constituency of East Dunbartonshire rivals my hon. Friend’s and has a similar statistic for sanctions. It is not a position we want to be in, especially when we know that many of our constituents are sanctioned due to legitimate reasons, such as transport issues or potentially having to take their children to school.

Any Member walking through the Lobby tonight to vote against amendment 2 is condoning the Government’s sanctions regime—in fact, they are breathing more life into it by denying the most vulnerable much-needed support. We on the SNP Benches always welcome additional support for our constituents, especially in these times, but will the Government consider whether they are offering enough? What about the Women Against State Pension Inequality Campaign? Those women have been continuously let down by the failings of this British Government. They have run an incredibly powerful campaign so that politicians will listen. Are they supposed to be appeased by this additional payment? I know with certainty that they will not be.

What about UK pensioners living overseas? Will their pensions be uprated this time around? Will they receive this additional support? What about our pensioners who have remained in the UK? Additional support for them is of course welcome, but it highlights a glaring need for a concerted effort, or a more concerted effort, around the uptake of pension credit, of which £3 million goes unclaimed each year in my constituency of East Dunbartonshire alone. Hopefully that will be less this year, given the effort by me and my hon. Friend the Member for Glasgow North East (Anne McLaughlin). When will we see a much more active campaign directly reaching out to pensioners, encouraging them to sign up for pension credit?

What about single-parent families, already discriminated against by the British Government’s child maintenance system, which charges them to access money they are entitled to and places vulnerable women at further risk of manipulation and abuse? Where is the relief from their deductions? What about young parents on universal credit? They face the young parent penalty, denying them the same level of social security as parents over 25. Where is the relief from their deductions?

These additional payments are welcome, particularly against the backdrop of this Tory cost of living crisis and a fundamentally broken social security system, but these payments need to be made with the highest degree of urgency, and a timescale would be much appreciated. If the Government wanted to make a real difference, they could reintroduce the uplift to universal credit and extend it this time to legacy benefits. I urge Members to vote for our amendment 2 tonight, to stop our constituents missing out on this much-needed support due to sanctions being imposed upon them.

[John McDonnell (Hayes and Harlington) (Lab)]

Welcome back, Dame Eleanor. You can gauge from the warmth of the response how much you have been missed. Pass on my thanks also to that young whippersnapper they appointed to act on your behalf, the right hon. Member for North Thanet (Sir Roger Gale). I say that, but then I realise that Hansard has no irony, does it?

--- Later in debate ---

[Mims Davies]

I thank my hon. Friend, and she makes the point extremely eloquently. This is much more about getting people into work and progressing; it is not about some punitive sanctions regime. This is about individuals being supported to best progress. On those people who engage with us during the qualifying period, as long as they attend, we will be supporting them if there is any particular reason that they cannot engage with us, if they have good cause.

Amendment 3 would extend the qualifying period for universal credit over two months rather than one. I understand the point made by my hon. Friend the Member for Amber Valley. Keeping the eligibility dates as close as possible to payment reduces administrative challenges such as out-of-date contact or bank details, and including two assessment periods extends the amount of time between eligibility and payment. [Interruption.] Sorry, but the hon. Member for East Dunbartonshire (Amy Callaghan) was speaking. In this time, individuals will have the opportunity to—

[Amy Callaghan]

Will the Minister give way?

[Mims Davies]

I will let the hon. Lady intervene, because she is making a racket.

[Amy Callaghan]

On sanctions, I appreciate the Minister giving way, and I thought she might enjoy a second just to reflect on some of the guff that she has been spouting. [Interruption.] I would say “guff” is a suitable word. I am absolutely scunnered by what she is saying, and I know my constituents will be too, given the high rate of sanctions in my constituency.

[Mims Davies]

I thank the hon. Lady, and I think the point here is that this is not solely about sanctions. As we heard from my hon. Friend the Member for Peterborough (Paul Bristow), this is about getting cost of living payments to the people most in need at this challenging time. SNP Members are continually talking about sanctions, and never talking about getting people into work and progressing. It is a continual bleating, and I think it is right that the hon. Lady reassesses the word “guff” in relation to fairness between the taxpayer and those people who of course need to be engaging with work coaches. It is important that we know what is happening with our claimants. Leaving people to their own devices and not seeing what is going on is no way to support them, and I do hope that SNP Members will look at that.

I am going to talk a little more about sanction cases: 97.6% of sanctions in the quarter up to October 2022 were applied for failing to attend a mandatory appointment at a jobcentre. These cases can often be resolved quickly by engaging with claimants, so that they turn up to the next appointment. If someone with no universal credit award due to sanctions re-engages with us, they could get one of the later cost of living payments. That is why it was so important that we look at those hard edges, and as I have told the Committee, we did look at them.

Clause 3 sets out the eligibility criteria for each cost of living payment, based on the entitlement of child tax credit or working tax credit. This clause ensures that only individuals who have been paid tax credits by HMRC in respect of a day in the qualifying period will receive a cost of living payment. Clause 4 is applicable to those who are entitled to more than one social security benefit or tax credit, so that they do not get duplicate cost of living payments.

Clause 5, on the additional payment for disability, means that there is a cost of living payment of £150 for people who receive an eligible benefit, and this will enable us to make payments to up to 6 million people. I fully recognise that disabled people may be likely to face extra costs to deal with the impact of higher inflation, as we have heard in the Chamber this evening, so I am pleased that we can make this additional payment. I can also confirm that many will qualify for both the disability payment and means-tested benefits, to a maximum of £1,050 in total in what is covered by this Bill.

Let me make a little progress in trying to whip through the clauses. On the administration of the payments, clause 6 makes appropriate arrangements for the recovery of overpaid cost of living payments. This means that, where a cost of living payment is overpaid, including as a result of fraud, recovery rules that apply to its qualifying benefit will apply to the cost of living payment. Cost of living payments are paid automatically, without the need to claim, and there is no separate right of appeal against a decision on entitlement. Individuals can, of course, exercise their right of appeal against the decision on entitlement in relation to the relevant qualifying benefit.

Clause 7, on the co-operation between the Secretary of State and HMRC, allows for relevant data to be shared to ensure that cost of living payments reach the right people, and to avoid the duplication of payments. In the event that a payment is made by HMRC when it should have been made by the DWP, or the other way around, this clause allows us to treat the payment as if it was made by the correct Department, and it avoids the need for recovery of cost of living payments in these circumstances.

I am pleased to confirm to Members that clause 8—on payments to be disregarded for the purpose of tax and social security—ensures that any additional payments made are exempt from tax, will not affect a person’s entitlement to social security benefits or tax credits, and are not subject to the benefit cap. This means that every person who is entitled to a cost of living payment will receive every penny in their pockets.

Clause 9 amends the Social Security (Additional Payments) Act 2022 to ensure that provisions relating to overpayments and recovery of the qualifying disability benefit also apply to disability cost of living payments. This clause also amends regulations made by HMRC to simplify and clarify their position on the recovery of overpaid cost of living payments in the next financial year. These are essentially tidying-up provisions that modify existing legislation to clarify our policy intention.

Clause 10 sets out the definition and interpretation of certain terms used in the Bill. Clause 11 explains the procedure for the laying of regulations. Clause 12 defines the territorial extent of the Bill and specifies that its provisions extend to England, Wales, Scotland and now to Northern Ireland. These are standard clauses.

I will briefly respond to new clauses 1, 2, 3, 7, 8 and 14 laid respectively by the hon. Members for Glasgow East (David Linden), for Oldham East and Saddleworth (Debbie Abrahams) and for North East Fife (Wendy Chamberlain) and my hon. Friend the Member for Bromley and Chislehurst (Sir Robert Neill).

New clause 1 appears to require the Government to publish analysis of the impact on household incomes of an earlier backstop date for the second and third qualifying day. New clauses 2, 3, 7, 8 and 14 require the Government to publish analysis on the impacts of the Bill on various groups, and I would point to a number of existing analytical publications. The Treasury has already published a distributional analysis of the autumn statement decisions; this shows the impact of the cost of living payments on households across the income distribution. Alongside this Bill, we have published an impact analysis which uses administrative data to look at the characteristics of those receiving the cost of living payments. This includes consideration of different characteristics such as age, gender and geographical location, including England, Scotland, Wales and Northern Ireland. My Department’s annual “Household below average income” publication looks at numbers in both relative and absolute low income and covers a wide range of characteristics, as I have mentioned.

I am pleased to say that my Department is planning an evaluation of the cost of living payments. In addition, we will consider what further information we can release in future. I hope, given the amount of data we are making available, hon. Members will withdraw these amendments.