Social Security (Up-rating of Benefits) Bill

Baroness Boycott Excerpts

Committee stage
Tuesday 26th October 2021 Lords Chamber

There is widespread concern that the state pension increases could be outstripped by price rises. The Centre for Economics and Business Research found that retired households will be nearly £700 worse off by next year as the state pension fails to keep pace with soaring bills and tax charges. Does the Minister accept that pensioners will be worse off? If she does, what will the Government do about it? If she does not, and if she disagrees with what I have said, all the evidence I have cited and the things that other noble Lords have done, there is a very simple way forward: she can accept my amendments, do an impact assessment and tell us the facts. I beg to move.

[Baroness Boycott (CB)]

My Lords, I am pleased to support this amendment in the name of the noble Baroness, Lady Sherlock. I thank her for that incredibly good and detailed outline of what the problem is.

I want to speak briefly as the chair of the charity Feeding Britain, where I succeeded the wonderful Frank Field—the noble Lord, Lord Field of Birkenhead. We began three years ago to support the rollout of affordable food projects. We originally held the assumption that most of the people who would want it would be working-age groups, disabled people or families with kids, but that assumption proved to be wrong. We have 80 affordable food projects in our network. In many of them, between 30% and 40% of the members are pensioners on low incomes. They either could not or would not use a food bank. Pensioners find it extremely difficult to go to a food bank. I think that when you have paid your taxes and national insurance all your life, to find yourself at 85 having to ask someone whether they will give you a can of baked beans is both humiliating and almost impossible. Indeed, we have heard stories of many people who would really rather go without than have to endure that.

In Glasgow, where we have set up many affordable food projects, we have now set them up particularly in areas where there are lot of pensioners. People have really been supported by this. One said to us: “It’s been a godsend, really, because all the prices are going up—electricity, the cost of food and the lot.”

When I was a kid, my parents both did meals on wheels, and I used to go round with them once a week and deliver meals to people’s houses. It was kind of a joy; my parents really enjoyed it. When I chaired the London Food Board, I spent a lot of time seeing what we could do to bring meals on wheels back. The reality is that no councils have any money for this anymore. As always happens when it is about food, it is a budget that gets cut, or the costs go up and it becomes not many people, so it gets struck off the list of things that you could do. One thing we could do would be to start looking at a service like that.

As the noble Baroness, Lady Sherlock, pointed out about energy, you have to pay a lot to be poor in this country. It is certainly true of food. If I go to a shop, I can buy a large size of washing powder or rice or whatever it happens to be. If you are scraping along on very little money, you pay a great deal more. We did a survey in Greenwich which pointed out that your average shop would cost you 30% to 40% more in your corner store than if you had been able to go to your local Aldi. You pay a price to be poor. That is really terrible, and it is why I support the amendment in the name of the noble Baroness, Lady Sherlock.

[Baroness Lister of Burtersett (Lab)]

My Lords, these amendments raise important issues about the impact of the Bill on poverty. I simply want to raise a point about the measure of poverty that should be used.

At Second Reading, in her response to the debate the Minister referred to a fall in pensioner poverty since 2009-10 as measured by the so-called absolute poverty measure, and she did so again earlier this evening. In fact, it is not a measure of absolute poverty as such but is better described as an anchored measure which measures any change by adjusting the 2010-11 poverty line for inflation. In contrast, the House of Commons Library briefing, using the relative poverty measure, recorded an increase in pensioner poverty from an historic low of 13% in 2011-12 to 18% in 2019-20, as my noble friend Lady Sherlock said. With reference to Amendment 8, single female poverty is higher than the overall figure—a point already made.

However, the Minister was dismissive of the use of a relative measure, stating:

“The Government believe that absolute poverty is a better measure of living standards than relative poverty, which can provide counterintuitive results”.—[Official Report, 13/10/21; col. 1885.]


Criticisms of the relative poverty measure as potentially counterintuitive have tended to focus on when it is used for short-term, year-on-year comparisons, but, in this case, we are talking about a rise in relative poverty over a period of eight years, which surely should have triggered some alarm bells in the department.

Relevant here is a recent Work and Pensions Committee report. Although its focus was on measuring child poverty, what it has to say is relevant also to pensioner poverty. It states:

“The Secretary of State is of course right to say that a relative measure can, in the short term, produce counter-intuitive results—but it has great value for assessing long term trends. We are concerned to see Ministers focusing on a single measure, rather than drawing on the rich information offered by DWP’s own set of income-based measures, which combines relative, ‘absolute’ and broader material deprivation statistics … Ministers should reaffirm their commitment to measuring poverty through all four measures”.


Similarly, I have a Written Answer from the Minister’s predecessor, dated May 2018, which states:

“No one measure of poverty is able to fully capture the concept of a low standard of living in all economic circumstances.”


Yet increasingly, Ministers use the so-called absolute measure, as if it is the only appropriate measure. Will the Minister reaffirm that commitment as called for by the Work and Pensions Committee? After all, I remind her that, when he was leader of the Conservative Party, David Cameron explained:

“We need to think of poverty in relative terms—the fact that some people lack those things that others in society take for granted. So I want this message to go out loud and clear: the Conservative Party recognises, will measure and will act on relative poverty.”


Can the Minister explain why that is no longer the case? What has changed, other than that the Government’s record on poverty looks worse using the relative poverty measure that Mr Cameron championed?

--- Later in debate ---

[Baroness Stowell of Beeston (Con)]

My Lords, it is always a privilege to speak in your Lordships’ House, even at 11 o’clock at night. I am a great admirer of my noble friend Lady Stroud, and I am even a great admirer of my noble friend Lord Freud. I should say for the Hansard writers that I am saying that with a smile—he knows that I have a great fondness for him. They are both hugely knowledgeable and great experts in policy in this area, and I know that they have given a huge amount of practical support to people in need in lots of different contexts. They are recognised for that, and rightly so. It therefore gives me no pleasure to disagree with them today, but I do, on both the substance and the practical application of their amendment.

I start, briefly, with the substance. As my noble friend Lord Freud just said, we do not know what the Chancellor will be announcing tomorrow. I know that we have seen quite a bit trailed over the past few days in the media, but we do not know the sum total of what he will announce to alleviate pressure on families faced with rising energy costs and increases in the cost of living. If he is able to do anything with regard to universal credit, I would much rather he changed the taper rate, so that working more hours is clearly advantageous when the temporary £20 uplift comes to an end. I do not support the temporary uplift becoming permanent for various reasons.

But that is irrelevant, because it is not relevant to this Bill. With the best will in the world, it is not a question for us to answer, at least not in this context. That brings me to the practice which my noble friends are applying in order to force this issue into play. My noble friend the Leader has already set out the constitutional and conventional reasons why this approach is outside our standard procedures, and I will not repeat them, but I very much endorse all that she said, and I certainly accept the advice of the clerks. I should add that I am not one of her predecessors who ever had to face the situation she is facing today, but I have been in the Chamber in the past when a similar situation occurred, and I have had my own encounters with this House on matters to do with social security and so on, so this is not an unfamiliar situation.

Having said all that, I want to add a couple of points which I urge my noble friends Lady Stroud and Lord Freud to consider between now and Report Even though I know that they are both hugely principled, and are pursuing their cause with great sincerity, not everyone looking at what is being attempted will see it in that way. I think my noble friends are suggesting that we break our rules because Mr Speaker did not break his own when this Bill was in the other place and he was considering amendments proposed by Members of the Commons.

I am not familiar with all the detail of the goings-on in the other place, but I am aware that this Mr Speaker made a commitment when he was elected that he would be impartial and uphold the rules and conventions of the Commons. This was welcomed by that House and the Government, because it came after a very turbulent period of rules and conventions being ignored by his predecessor as Mr Speaker and by many Members of that House.

Since then, not only does the other place have a new Speaker but there has been a general election, the result of which is many new and re-elected MPs who now have the greater confidence of their electorate. The Prime Minister and the Government overlook this fact and act too often as though they are still facing the same disruptive and obstructive House of Commons pre-2019. I urge him and his ministerial team to reconsider their approach when they are engaging with the House of Commons in particular.

Even though there has been all that change down the other end of the corridor since December 2019, the House of Lords is still the same. We have not faced the electorate; we have not changed. Irrespective of what the Government think about this House, or what some noble Lords think about the Government, we have a responsibility to maintain public confidence in Parliament. Some people outside Parliament might agree with my noble friends on what they are proposing in terms of the substance on universal credit; some of them might agree with me, but what would probably unite all of them is the view that the House of Lords has no place in dictating to the House of Commons—that they elected—what its MPs should do and when.

So let us see what the Chancellor has to say tomorrow, but whatever action he takes, I really hope that my noble friends, whom I am fond of as well as have huge respect for, will not return on Report with a similar amendment to this. Because however well-intentioned and noble their cause, we have no legitimacy engaging in this matter at this time and in this way.

[Baroness Boycott (CB)]

I will be very brief, given the hour. As I said, I am chair of Feeding Britain, and I would like to briefly report from the front line, so to speak, on the effect of the stopping of the £20. I totally agree with the noble Lord, Lord Freud, and the noble Baroness, Lady Stroud, that this needs to be put before the other House so that there can be a vote on it.

Our experience at Feeding Britain has suggested that the £20 increase in universal credit was responsible for a drop in the number of people needing to use food banks this year—it was 17% lower than before the pandemic. Of course, we also had the school meals campaign by Marcus Rashford and various other people but, since then, in the three weeks since the increase was removed, our social supermarkets, which are affordable food projects, have started to show signs of distress.

Some of those who used to shop monthly for low-cost food, and for whom membership represented a nice insurance policy, are now there every week, if not more. Some who used to use a debit card are now using credit cards. Some of those who used to rely only on our option of low-cost food now also want help with gas and electricity. Some cannot even afford their membership fees, which are as little as £3. They are instead going without the food or having to use food banks. People are really clinging by their fingertips to avoid that nightmare scenario.

I very much agree with the noble Lord, Lord Freud, that we need skills and ways to help people try to avoid the traps that they are in, which is what our social supermarkets do. Being poor is not only an expensive thing to do in this country; it is also very hard work as you spend your life drifting from one office to another trying to find someone who can help you sort out your problems with rent, food, schools et cetera. I am very glad that this House is bringing this amendment forward, because if we do not do it, who will?

[Baroness Lister of Burtersett (Lab)]

My Lords, I am very grateful to the noble Baroness, Lady Stroud, for tabling this amendment. Like the noble Lord, Lord Freud —I must be careful I do not get into a habit of agreeing with him—I will focus on the substance of the issue, although I say to the noble Baroness, Lady Stowell of Beeston, that this is not about dictating to the House of Commons, as the noble Baroness, Lady Stroud, said.

Like the noble Baroness, Lady Stroud, I am disappointed that apparently no attempt was made to assess the impact of what constitutes an unprecedented overnight cut in universal credit claimants’ income, despite the Financial Times reporting that an official had told it that the impact would be “catastrophic” in terms of poverty, homelessness and, as we have already heard, food bank use.

The lack of a formal impact assessment has been criticised by the UN rapporteur on extreme poverty, Olivier de Schutter. He told the Government that as a signatory of the International Covenant on Economic, Social and Cultural Rights, they must adequately justify what he defined as a retrogressive measure by carrying out such an assessment. Indeed, he warned that it was prima facie doubtful whether the removal of the £20 uplift is a measure that conforms to international human rights laws and standards. What was the Government’s reply to him?

Olivier de Schutter clearly did not see the original temporary nature of the uplift—repeatedly cited in justification—as a conclusive argument for withdrawing it now. The other main argument deployed by Ministers has been that the priority is to get people into reasonably paid work, as if that and maintaining the uplift are somehow alternatives between which we have to choose. Given that we know that hardship can undermine job-seeking efforts, what attention has been paid to the likely impact on job seeking of increasing hardship at the stroke of a computer key? What thought has been given to the impact on the significant minority who cannot be expected to seek work or work longer hours because of caring responsibilities or lack of fitness for work?

The Government have also tried to bolster their case by pointing to the £500 million household support fund referred to by the noble Lord, Lord Freud. But a discretionary fund of this kind is totally inappropriate for meeting the kind of regular needs that the UC standard allowance is supposed to meet. It offers no security or certitude to claimants in the way that a regular payment does. Not all local authorities are well placed to administer the money, especially if they are one of the significant minority which does not even run a welfare assistance scheme. I took part in a workshop last week where one participant said that her local authority had begged her food bank to administer a previous pot of money released by the Government to it because otherwise the local authority would have to return it for lack of administrative capacity.

A further sticking plaster is more money for family hubs, which could well find themselves picking up the pieces of families buckling under the strain of the loss of the £20. If, as rumoured, the Chancellor announces a cut in the taper rate tomorrow, again while welcome, it will do nothing to target the necessary help on those worst hit. Similarly, while the proposed increase in the national living wage is welcome, as both the IFS and the Resolution Foundation have made clear, it does not compensate for the loss of the uplift, not least because many of those earning the living wage are not in households in receipt of UC.

The very fact that the Chancellor was moved to introduce the uplift—which was welcome as far as it went—was tacit recognition, as we have heard, that UC rates are too low, a point made in the Commons by former Work and Pensions Secretary Stephen Crabb. Just how low is in part attributable to a decade of cuts and freezes, which took well over £30 billion a year out of the social security system, as the noble Lord, Lord Freud, has said.

As Mr Crabb pointed out, the cut raises a more fundamental question about the adequacy of the benefits we expect our fellow members of society to live on—an issue also raised by two committees of this House. While the narrow scope of the Bill does not enable us to have the more fundamental debate about benefit adequacy that I had hoped for, the amendment at least opens up the possibility of a serious vote in both Houses on the desirability of reinstating the uplift—a question that cannot be divorced from the underlying question of the adequacy of UC to meet needs.

Such a vote is needed because, although presented as somehow inevitable, the decision to withdraw the uplift was a political choice. The fact that it was originally intended to be temporary is neither here nor there, as the UN rapporteur made clear. Temporary often becomes permanent—and so it should when the overwhelming evidence shows that, be it from the perspective of food insecurity, as we have heard, debt or general hardship, the UC standard allowance is simply, to quote Stephen Crabb,

“too low to provide anything like a decent, respectable level of income replacement”—[Official Report, Commons, 15/9/21; col. 1004.],

Although inevitably so far largely anecdotal, it is clear that claimants are extremely anxious as the money disappears out of their accounts; not all of them were even aware that it would do so. An increase in fear and anxiety is how a pastor in Burnley described it to the journalist John Harris. Therefore, I hope that this amendment will be deemed admissible by this House.