Oral Answers to Questions

Bill Esterson Excerpts

Thursday 13th March 2014 Commons Chamber

[Mr Vaizey]

We want councils to match fund the money we have put up for the superfast broadband extension programme, as it is important that they are involved. I recognise the amazing work that has been done in Wiltshire, and I have visited to see the work being done on broadband roll-out. I hear what has been said.

[Bill Esterson (Sefton Central) (Lab)]

My constituents are concerned about the impact a third betting shop will have on a small geographical area in Formby, and they are amazed that there is nothing that they or their councillors can do to prevent that shop from opening. Will the Minister listen to people up and down the country who are concerned about the impact of too many betting shops and will she allow local communities the powers to prevent the spread of such shops?

[Mrs Grant]

I always try to listen. These are important issues. I can tell the hon. Gentleman that local authorities have good powers at their disposal to control the location and number of betting shops through article 4 directions and use of their licensing conditions, but of course I shall continue to listen.

Housing Benefit

Bill Esterson Excerpts

Wednesday 26th February 2014 Commons Chamber

[Sandra Osborne]

I am sure that is very kind. However, I am a mother and a grandmother. I love my family dearly, but I do not want them to live with me all the time.

As if by magic, the plan was that thousands of tenants throughout the land would move to mythical smaller properties—they do not exist—freeing up larger properties for overcrowded families, or find an average of £720 a year, which they do not possess. Not a cunning plan, but a cruel, uncaring and illusory plan that has seen more than 4,500 of my constituents suffer. Within months of the bedroom tax being introduced, 62% of my constituents in East Ayrshire council were in arrears, and the figures continue to rise.

[Bill Esterson (Sefton Central) (Lab)]

I wonder whether social landlords in my hon. Friend’s constituency are trying to help people in the same way as One Vision Housing does in Sefton. It states that

“we are helping tenants to downsize in order to avoid the bedroom tax, however with limited availability of one-bedroom properties it is becoming simply unavoidable.”

As of November, 4,963 people wanted a one-bedroom property, but just 10 were available. Does my hon. Friend have a similar situation in her constituency, which shows just how unworkable the policy is?

[Sandra Osborne]

I do indeed, and the policy is putting more pressure on the housing service, not taking it away. I also fear for those who have struggled to pay the bedroom tax, because I know fine well they cannot afford it. I worry about where they are getting the money from, and whether it is pushing them in other directions such as food banks or very high-interest loans. It is not possible for me to over emphasise the fear, concern and anger that the bedroom tax has caused, together with the Atos debacle and the fact that people are being suspended from benefits at the drop of a hat.

--- Later in debate ---

[Heather Wheeler (South Derbyshire) (Con)]

I want to remind Opposition Members that the ethos behind the spare-room subsidy has been around for a very long time. I repeat what I said in an earlier debate: what have Opposition Members been doing to ensure that their councils talk to the Homes and Communities Agency and housing associations about the number of properties they need in their areas? My council, South Derbyshire district council, which I am very proud of, sorted out what the numbers would be; how many units we needed to swap; and what was going to be needed with the discretionary housing payments. We also opened up an early dialogue with all our tenants.

[Bill Esterson]

Perhaps the hon. Lady can tell me how, overnight, she could expect Sefton council, working with its social landlords, to provide 5,000 one-bedroom properties? That was the number of properties needed. How was that supposed to happen?

[Heather Wheeler]

That is the whole point: it was not overnight; there was at least two years’ notice. [Laughter.] Opposition Members may laugh, but in two years more than 140 one and two-bedroom units have been built in South Derbyshire. What, my friends, were Opposition Members doing to look after their so-called vulnerable people?

Universal Credit

Bill Esterson Excerpts

Tuesday 10th December 2013 Commons Chamber

[Mr Duncan Smith]

That is exactly right. The point is that we intervened early when we thought there was a problem, and we did not deliberately drive it through to roll-out. Quite frankly, we will have got this right because, unlike Labour, we are testing the system and learning first, and then finally implementing it. My hon. Friend is right: we have no idea what Labour Members really want. They just want to criticise but they have no other proposals.

[Bill Esterson (Sefton Central) (Lab)]

Will the Secretary of State tell the House how many children will qualify for free school meals in households in receipt of universal credit?

[Mr Duncan Smith]

Everybody now in receipt of free school meals will be eligible for them as we roll out universal credit, and the changes that are necessary in universal credit will be made apparent as we come to do that. I guarantee that nobody will lose out with free school meals.

Oral Answers to Questions

Bill Esterson Excerpts

Monday 18th November 2013 Commons Chamber

[Bill Esterson (Sefton Central) (Lab)]

What advice does the Secretary of State have for the 4,963 people in Sefton chasing the 10 available one-bedroom properties? Where does he expect them to go, especially given that many of them are disabled and are unable to pay the bedroom tax?

[Mr Duncan Smith]

As my hon. Friends made clear in the debate last week, there is actually an awful lot of available property in HomeSwap, with over 300,000 available in the last week alone. I simply say to the hon. Gentleman, and, through him to the councils, local authorities and housing associations, that the purpose of this programme is to get them to manage their housing better, and not to be building bigger houses when they need one-bedroom properties, and to start managing better for the people who need their property.

Housing Benefit

Bill Esterson Excerpts

Tuesday 12th November 2013 Commons Chamber

[Rachel Reeves]

As in Tameside, two thirds of the budget for discretionary housing payment in my constituency has already been used, despite the council adding £250,000 to the budget.

I have heard heart-rending testimony about the tax. I have heard about a man who received worrying letters about rent arrears while in hospital for a triple heart bypass because he suddenly had to find another £18 a week to keep the specially adapted home he had lived in for most of his life. I have heard about a woman with young children who had found another flat with a family and wanted to swap, but she was in a Catch-22 situation because she could not move until she had paid off the arrears she had built up as a result of the bedroom tax. I have heard about a family with a disabled son who have discovered that the room that carers stay in is now designated as a spare bedroom with a charge of £14 a week.

In so many cases, local authorities and housing associations are put in impossible situations, trying to minimise the impact of this badly designed policy on local people. Decent people in tough situations who are doing their best and trying to survive are being trapped by an absurd policy that makes no sense. They are terrified of losing their homes or sinking deeper into poverty and unmanageable debt.

[Bill Esterson (Sefton Central) (Lab)]

My hon. Friend is demonstrating through individual cases just how unfair this appalling policy is, but does she agree that it is also unworkable? Only last month in the borough of Sefton there were 4,963 people registered for a one-bedroom property, but just 10 such properties were available. Does that not demonstrate just how wrong the policy is?

[Rachel Reeves]

My hon. Friend is absolutely right. As well as being cruel, the policy is unworkable. I know that hon. Friends have heard many such stories, as many have already testified today, about people in their constituencies. I know that we will hear more this afternoon. We know that around 660,000 households across the country have been hit by this punitive tax. All the people affected are in this country, rather than in Paris, where the Secretary of State is today. Many of them have conditions that mean they need to sleep separately or accommodate carers or special equipment. A large number are families with children and they are already at or below the poverty line.

Oral Answers to Questions

Bill Esterson Excerpts

Monday 14th October 2013 Commons Chamber

[Mr Duncan Smith]

For the most part they provide a good service to all constituents and have been successful in all parts of the country. They operate within Jobcentre Plus districts and are monitored locally. If there are concerns, they are raised with the Jobcentre Plus. Their monthly management information flow gives us a very good overview of the scheme. In the north-west, my hon. Friend’s region, 8,000 have started working with a mentor and 4,420 have started claiming the weekly allowance—a big success.

[Bill Esterson (Sefton Central) (Lab)]

Most businesses do not survive beyond the first year, and failing generally leaves their owners significantly out of pocket. Would it not be better to concentrate on boosting the economy to create jobs for young people, rather than recommending self-employment which, sadly, may make matters worse for the vast majority?

[Mr Duncan Smith]

I am sorry to hear the hon. Gentleman cavil about this programme. The reality is that the two are not mutually exclusive. For those who have a good idea and want to start a business, the scheme provides an opportunity that otherwise would not be there. I remind him that approximately 1,800 18 to 24-year-olds, 18,000 25 to 49-year-olds, 6,000 aged 50-plus, who may well have had difficulty getting a job later on, and 4,800 with disabilities who would have been written off under the old scheme, have now started a business.

Oral Answers to Questions

Bill Esterson Excerpts

Monday 20th May 2013 Commons Chamber

[Mr Hoban]

My hon. Friend is absolutely right. I congratulate the voluntary mentors who are taking their role seriously, helping people to get into work and identify ways of setting up their own business. On Thursday, I was in Bradford talking to a group called Inspired Neighbourhoods, which promotes self-employment in its area and provides many voluntary mentors to help people take advantage of those opportunities.

[Bill Esterson (Sefton Central) (Lab)]

Given the difficulties and challenges in setting up a business, does the Minister agree that it is essential that the advice given ensures that people can succeed, so that they do not end up in a worse situation than if they had not gone down that route in the first place?

[Mr Hoban]

The hon. Gentleman is right. That was one of the lessons from Inspired Neighbourhoods, which sat down with people and said, “This is the amount of money you need to make from your business to ensure you become free from benefits and help your family to look after themselves.”

Oral Answers to Questions

Bill Esterson Excerpts

Monday 11th March 2013 Commons Chamber

[Mr Duncan Smith]

My hon. Friend makes an important point. As the law stands, when a local authority agrees that a family needs an extra bedroom because their child’s disability means that they are unable to share, the family can be entitled to the spare room subsidy in respect of that extra bedroom. As with housing benefit claims, the determination of whether their disability requires them to have an extra bedroom is a matter for the local authority to decide with the help of DWP guidance and medical evidence. This week we will issue final guidance to local authorities on a number of areas, including this one, that will confirm the position that the judgment in Burnip, Trengove and Gorry applies to both the social rented sector and the private rented sector.

[Bill Esterson (Sefton Central) (Lab)]

One effect of the Secretary of State’s policy is that foster carers who have a spare bedroom and are waiting for a child to be placed must move to a smaller property without the space for them to foster. Is that what he intended?

[Mr Duncan Smith]

As the hon. Gentleman will know, we have made discretionary payments of £5 million available for foster carers to ensure that that does not happen. The effect for foster carers, as we move forward, will be that they will not have to change the number of rooms or their property as they will be able to remain there and to foster. That is what the policy will be.

Welfare Benefits Up-rating Bill

Bill Esterson Excerpts

Tuesday 8th January 2013 Commons Chamber

[David T. C. Davies (Monmouth) (Con)]

It is never a pleasure to support any Bill that will leave some people worse off, but Members of both Government parties do so out of a heavy sense of duty and responsibility, both to those who pay taxes and to those who receive them. It is unfortunate, to an extent, that this debate has been framed, perhaps not in this House today, but in some quarters of the press, as a kind of battle between workers and shirkers or, even more regrettably, between immigrants who have come to this country and are sponging off the state and those British nationals who have been here all their lives and paid taxes.

It is true that some people have come to this country and have received too generous an amount in benefits. It is equally true that a lot of eastern Europeans—I know that both points are true from the experience of my own extended family, who are eastern Europeans—have come to this country, sometimes speaking very little English and sometimes with qualifications that are not recognised here, and have managed to find work very quickly, have used that work to get better jobs, and have ended up contributing a great deal to our society. It is true that some British people have not wanted to take on the jobs that have been snapped up by eastern Europeans.

I would have no hesitation in saying to somebody who is fairly young and in their 20s that they should be willing to accept any job going, no matter how demeaning it may appear. I have worked in nightclubs and done other low-paid work in my life. I would have more of a problem, however, with saying to people I know who spent 20 or 25 years working for Tata—British Steel as was—who lost their job through no fault of their own and who may be a father of three or four, “You have to go to work in Starbucks on the minimum wage.” It is a shame that we find it hard in our benefit system to distinguish between different types of people, but that is the way it is.

We are not here to talk about penalising people; we are here because we have a simple problem, which was put eloquently by the right hon. Member for Birmingham, Hodge Hill (Mr Byrne) when he said that we do not have any money.

[Bill Esterson (Sefton Central) (Lab)]

If the hon. Gentleman is saying that that is the problem, why is he supporting a Government who are only too happy to give a tax cut of £2,000 a week to everybody earning more than £1 million a year? How does that add up? How is that fair?

[David T. C. Davies]

Put simply, the total amount of tax that we are taking from the rich has increased, as my right hon. Friend the Secretary of State has said, and that has not been denied by any Opposition Member. The total amount of money that we are taking from the rich has increased, which means that the total amount that we have to take from those who are not so rich has gone down somewhat. That is how I would justify it.

--- Later in debate ---

[Dame Anne Begg]

I thank my hon. Friend, because she sets up my point on how the proposals undermine the Government’s flagship policy of introducing universal credit. Universal credit will create problems—she alludes to the fact that it will be paid monthly, and that housing benefit will be paid directly to individuals, who must make the decisions she describes.

One big claim for universal credit is that it will make work pay in all circumstances, but Government Members somehow cannot understand that making work pay means increasing benefits, because the majority of people who receive the benefits that will be affected by the Bill are in work. The group who are out of work and the group in work are often the same people, as my hon. Friend the Member for Westminster North (Ms Buck) has said—they move in and out of work.

The principle of universal credit is to smooth the move into work. The Government are freezing the benefits that make up universal credit statutorily for the next three years. I do not know why we are not having the normal uprating debate. There is no reason why the measure must be in the form of legislation, which makes me suspect that it is a political decision. The freezing of those benefits will tie the Government’s hands on the introduction of universal credit and could undermine it.

In spite of everything that has been said today, tax credits were a huge success. They increased the income of workers on low wages and made work pay. For the first time in at least two generations, the poverty trap was ended—I thought that it had gone for ever. There was a genuine poverty trap created by the previous Conservative Government and to all intents and purposes tax credits got rid of that. Almost everybody was better off as a result of tax credits unless they lived in a high accommodation cost area such as London or they had a large number of children. Work paid. The incentives did not always work because work did not pay enough. Through the Bill, the Government are repeating the same mistake—the incentives to move into work under universal credit will not be high enough to make work pay in all circumstances.

[Bill Esterson]

My hon. Friend is making an excellent point about the impact of universal credit. I am sure she is aware that the DWP itself says that 1.8 million main earners will be worse off if they take extra hours under universal credit than they are under the current arrangement. The figure for second earners is 300,000.

[Dame Anne Begg]

Indeed, and Barnardo’s has just published a report which says that families that depend on child care to allow the adults to work will be worse off if they increase their hours. The claims that are being made for universal credit—that it will do away with the cliff edges, smooth the transitions and make work pay in all circumstances—are false. The Bill will make that more likely to happen, not less likely.

Welfare benefits have already been attacked and reduced. We have heard today about housing benefit. Still to come are the changes to council tax benefit, and tax credits have been frozen for the last two years. We now know that universal credit will be set at a level comparable to the benefits that it will replace—income-related job seeker’s allowance, income-related employment support allowance and housing benefit, as well as tax credits. If those benefits have not increased with inflation, by the time universal credit comes in it will be set at a much lower level as a result of the decisions taken today. That will mean less support through universal credit for those moving into work. Unless the Government intend to change the tapers and the disregards—and I have heard nothing to suggest that—the difference between being in work and out of work will not be very great, and on many occasions people could be made worse off by increasing their hours or taking work in the first place.

I have always suspected that when the Government said that no existing claimants would lose in cash terms from the introduction of universal credit, it was their intention to reduce what people were receiving before the move to universal credit. This Bill confirms that that is exactly what they intend. They seem to have missed the essential point—to make work pay, the Government need to increase in-work support, not decrease it as this Bill will do. So when universal credit is introduced and fails to be the magic bullet that the Government have claimed—when it does not do all that has been claimed—they cannot say that they were not warned. That is why I will not support the Bill and will vote for the amendment.

Personal Independence Payments

Bill Esterson Excerpts

Thursday 13th December 2012 Commons Chamber

[Esther McVey]

The hon. Lady is right that we have put men on the moon. However, she will also know that her Government never did such an impact assessment, and for good reason. On such wide-ranging reforms, it is impossible to make an accurate assessment. That is particularly the case with these reforms because they will not be in place until 2017-18 and there is such a dynamic case load. Even the Institute for Fiscal Studies says that it would be near impossible.

[Bill Esterson (Sefton Central) (Lab)]

I am glad the Minister was able to confirm that we have put a man on the moon.

Let me return to the point about appeals, which is crucial. Surely if we get the assessment process right and it is fair, there will be no need for appeals and we will not see so many disabled people coming to my surgery—and those of Members across the House—who are worried about their financial futures.

[Esther McVey]

All sides of the House wanted reform. Everybody said that reform was right, but the difference is that this Government are making that reform to ensure we have a benefit that is fair and correct, right for the 21st century, and that has rigour put into it.