Underpayment of Benefits: Compensation
Bob Blackman Excerpts(2 years, 3 months ago)
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David Rutley
The hon. Gentleman has made a number of points. Arrears have already been paid to the 118,000, but the team are still in place, so when people are deceased and the surviving parties feel, on the basis of the report, that they could be eligible to receive such arrears, they can do so. I have already explained how those who feel they should receive further compensation can find out more about the process of investigating that. I agree with the hon. Gentleman that we need to do more to increase people’s awareness of the pension credits that are available. He also mentioned people with vulnerabilities. We want to help those people, which is why we established the household support fund and made additional funds available in Scotland as well.
Bob Blackman (Harrow East) (Con)
During the period of the inquiry the benefits system was incredibly complicated, involving many mutually exclusive benefits. I well remember talking on the helplines to civil servants who did not know which elements were mutually exclusive and which were not. Will my hon. Friend bear in mind the need to ensure that the system is straightforward, that people can understand it, and that people are paid the compensation and the benefits they are due? We are talking about the most vulnerable members of society.
David Rutley
My hon. Friend has made some good points. I know that he has a proven track record in this area, given his campaigning work both locally and nationally. The benefits system is indeed complicated. Universal credit has helped to simplify it by putting benefits into a single bundle, but as the new Minister on the welfare delivery block, I am aware that the system is still complex even under the universal credit banner. I shall be working hard to ensure that we can communicate clearly with some of those most vulnerable people in explaining what benefits are available; and, as I have said, we will review the report and see what further lessons can be learnt.
Oral Answers to Questions
Bob Blackman Excerpts(2 years, 6 months ago)
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Dr Coffey
Given that it was a temporary uplift, recognising the effect of aspects of the pandemic on people new to benefits, no impact assessment was undertaken. With the removal of the temporary uplift, therefore, no impact assessment has been undertaken either.
Bob Blackman (Harrow East) (Con)
The cut to the taper rate from 63% to 55% was clearly a vital measure to support people on low incomes. What consideration has my right hon. Friend given to lowering the taper rate further so that we can ensure that people who go to work continue to work and benefit as a result?
Dr Coffey
I congratulate my hon. Friend on championing the announcement of the reduction of the taper rate from 63% to 55%. He may be aware that that was the original design of the universal credit system. The Chancellor agreed with me and the Prime Minister that, in trying to ensure that work pays, it was the right moment to do it. It recognises the labour market opportunities and makes sure that people are better off working. With my right hon. Friend the Chancellor having already provided for costs of about £2.5 billion annually, I am not convinced that we will seek to change the taper rate further; instead, we will be seeking to ensure that all the current job vacancies are taken up so that work really does pay.
Oral Answers to Questions
Bob Blackman Excerpts(3 years, 2 months ago)
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Bob Blackman (Harrow East) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
We do not collect information about individuals’ rent accounts. For universal credit claimants with rent arrears, alternative payment arrangements and support with budgeting are available. In 2020-21, we are projected to spend almost £30 billion on housing benefit and the housing element of universal credit to support people with their housing costs.
Bob Blackman [V]
I thank my hon. Friend for that answer. The evidence produced by the National Residential Landlords Association and a lot of housing charities demonstrates that rent arrears are growing and growing very fast such that they will probably never be repaid. What action will my hon. Friend take to ensure that rent arrears are eliminated and further assistance is provided to people who genuinely cannot afford to pay their rent?
Will Quince
I thank my hon. Friend for his question. He is a strong advocate on these issues. As I say, managed payment to a landlord is available where universal credit claimants are unable to manage monthly payments and are at risk of financial harm. That can be requested by the tenant, landlord or work coach. Our relatively new online tool makes it easier for landlords to request a managed payment to landlords. UC also enables a landlord to request recovery of rent when a UC claimant is in arrears or once a tenancy reaches two months’ rent arrears. I agree to some extent with my hon. Friend. Rent arrears concern me too and we continue to monitor the situation very closely.
Income Tax (Charge)
Bob Blackman Excerpts(3 years, 2 months ago)
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Bob Blackman (Harrow East) (Con) [V]
It is a pleasure to follow the hon. Member for Nottingham East (Nadia Whittome). The Budget obviously has to be set against the situation in which we found ourselves in recovering from the pandemic, and the Chancellor and his team are to be congratulated on ensuring that we have balanced the position between encouraging industry and commerce to reopen but, at the same time, supporting people who are going through the pandemic in a difficult fashion. I strongly support all the measures that the Chancellor announced in the Budget.
There are four areas, however, that need to be explored yet further. On the position on remediating cladding, when the Secretary of State for Housing, Communities and Local Government announced the new scheme for dealing with high-rise blocks, it was said at the same time that the loan scheme would be announced by the Chancellor during the Budget process. At the moment, we have not heard that, and clearly, a large number of leaseholders will want to know the details. Personally, I take the strong view that leaseholders should not have to contribute a penny and I reserve my position on where we stand until we hear the details of the loan scheme. So, clearly, that is a matter of concern.
The estimate of the number of private tenants in rent arrears has soared during the pandemic and, clearly, a day of reckoning is coming. It is not clear what the Government’s strategy will be to ensure that those rent arrears are cleared to the benefit of either tenants or, indeed, landlords who depend on that income for their ability to finance themselves. That needs further explanation, and I hope that my right hon. Friend the Financial Secretary to the Treasury will be able to answer that during the wind-up to the debate.
Another vital issue is pensions. The Chancellor has chosen to freeze the lifetime allowance. There are concerns in a number of professions, including our medical professions. Doctors are saying that they have saved all the money that they can under the lifetime arrangements, so there is no incentive for them to continue working. That is a potential loss of skills that we can ill afford, particularly at a time when we are approaching a need for more doctors, nurses and medical professionals in our national health service.
Equally, of course, I am disappointed that the Chancellor has not announced any more funding to compensate the victims of the Equitable Life scandal. The reality is that those individuals saved for their retirement and intended to ensure that they had a decent income. They have been short-changed, I am afraid, as a result of the compensation scheme by the Government thus far. I look forward to the Chancellor coming forward with further funding. At the moment, £2.6 billion is owed. It is quite clear that the Chancellor has been able to find funding when it is necessary. These people are among the most vulnerable in our society and deserve our backing and support.
Equally challenging, I think, is the fact that our economy and savings regime have been shown to be extremely fragile. The pandemic has revealed that many people do not have money saved up to support themselves through difficult times. In future Budgets, I hope the Chancellor will bring forward incentives for people to save, not only for a rainy day but for their retirement and when they will need it next. In summary I strongly applaud what he and his team have been able to do to get us out of the pandemic, get employment back and get the economy working once again.
Oral Answers to Questions
Bob Blackman Excerpts(3 years, 7 months ago)
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Guy Opperman
Any customer with a building society or credit union account will be able to continue to access their benefit or pension payments at a post office, even after the closure of the Post Office card account, including all bank accounts. There is also the ability to open a basic bank account, for which assistance can be given.
Bob Blackman (Harrow East) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)
As my hon. Friend knows, alternative payment arrangements are already available to enable housing costs to be paid directly to the landlord. We have listened to feedback, and in May we introduced a new online system for private landlords, so that claimants who struggle with managing their money get the right support promptly. Landlords can now request that a universal credit tenant’s rent is paid directly to them online, rather than by email or post.
Bob Blackman [V]
I thank my hon. Friend for his answer. As he will know, it is estimated that 125,000 people are now in rent arrears, with rent not being paid to landlords. Many of those people will be in receipt of either universal credit or housing benefit. What steps can he take to ensure that that rent will be paid to landlords and to prevent spiralling debts that are impossible for people to repay, so that landlords are paid their rent and tenants do not fall into unnecessary rent arrears?
Will Quince
I thank my hon. Friend for that question. He is a passionate and knowledgeable advocate on housing issues, and I always listen carefully to his representations. Alternative payment arrangements such as direct payment to landlords can be requested by the tenant, landlord or work coach, but if there is more that we can do, I am happy to explore it. I regularly meet my counterpart at the Ministry of Housing, Communities and Local Government to discuss these issues, and I am happy to meet my hon. Friend.
Universal Credit: Court of Appeal Judgment
Bob Blackman Excerpts(3 years, 10 months ago)
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Bob Blackman (Harrow East) (Con) [V]
If you knew the broadband experience in north London, Mr Speaker, you would know why I need to wear this headset.
One advantage of the universal credit system is that it takes input from claimants that would otherwise have to be re-input several times, resulting in the correct level of benefit, but one problem is that it does not deal with the exceptions. Could my hon. Friend consider a system whereby, when people suddenly see huge increases in their pay and therefore a reduction in benefits, an alert is triggered to allow someone to look at what is going on and correct the position?
Will Quince
I thank my hon. Friend. That is a helpful suggestion and certainly one that I will be exploring. He is right to extol the virtues of real-time earnings information. Among many other reasons, it is what makes universal credit much superior to the legacy benefits system, because we are able to ensure that as people’s income fluctuates their support can fluctuate too. His suggestion is a good one, and it is one that I will be looking at along with a suite of numerous other measures no doubt. I would be very happy to meet him to discuss it in further detail.
Oral Answers to Questions
Bob Blackman Excerpts(4 years, 12 months ago)
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Giles Watling (Clacton) (Con)
Bob Blackman (Harrow East) (Con)
The Secretary of State for Work and Pensions (Amber Rudd)
Universal credit makes sure that payments reach those who need them most. Around 1 million disabled households will receive, on average, £100 more per month on universal credit than on the system 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 was previously unclaimed.
Amber Rudd
I thank my hon. Friend for raising this important matter on behalf of his constituent. As he will be aware, there has recently been a court judgment on the Universal Credit (Transitional Provisions) (SDP Gateway) Amendment Regulations 2019, and we will have to wait to consider it before I will be able to give him an update. I will come back to him on the earliest possible occasion, because I understand the concern his constituent must have on this matter.
Bob Blackman
Without a roof over one’s head, it is very difficult to get a job or to claim benefits. Without a job, it is almost impossible to afford rent, so what is my right hon. Friend going to do to ensure that universal credit claimants are helped and assisted not only to get a roof over their heads but to get back into work?
Amber Rudd
My hon. Friend asks a question about which he has done so much, and I start by paying tribute to his incredible work to help homeless people in the previous Parliament.
We recognise the concerns about homelessness, and I am determined to make sure we help homeless people to rebuild their lives. I recognise the link he so eloquently describes between jobs and homes. As part of the rough sleeping strategy, we will establish a single point of contact for homelessness at every jobcentre. I recently announced that we are increasing awareness of direct payments to private landlords under universal credit to protect vulnerable claimants’ rent. Many private landlords have told us that that will help to ensure that vulnerable people are able to stay in their homes.
Oral Answers to Questions
Bob Blackman Excerpts(5 years, 1 month ago)
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Bob Blackman (Harrow East) (Con)
Huw Merriman (Bexhill and Battle) (Con)
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.
Employment and Support Allowance Underpayments
Bob Blackman Excerpts(5 years, 6 months ago)
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Sarah Newton
I thank the hon. Lady for that question. I know that she does fantastic work on the Work and Pensions Committee, and no doubt we will discuss this further at the Committee.
Let us be really clear about what happened. The advice that the Department got was that section 27 of the Social Security Act 1998 applied. That was why we felt we had to make the decision to back-pay to 2014. When additional information came forward from the National Audit Office and the Child Poverty Action Group about official error, the Secretary of State took the decision that, of course, we must do what the law says and go right back to the point of conversion. It was not in any way that the Government were trying not to do the right thing. We have proactively been utterly transparent and open with the House about this error, and we want to fix it as soon as possible.
The hon. Lady asked about the two phases. The first group of people that we are looking at date back to pre-2014 and the second group are from 2014. We have started to make payments to both groups of people, and so far we have paid out £420 million to the pre-2014 group.[Official Report, 22 October 2018, Vol. 648, c.2MC.]
Bob Blackman (Harrow East) (Con)
We are talking about some of the most vulnerable people in society, who will be assisted by either carers or charities. Can my hon. Friend update the House on what assistance is being given to charities and carers? Is there a helpline or somewhere that people who may not be contacted by the Department can seek help and assistance?
Sarah Newton
My hon. Friend is a doughty champion for the most disadvantaged people in society, so I would expect no less a question from him. To reassure him, I visited the main centre in Oldham where we are contacting people who we feel may have been affected and then beginning to collect information, so that we can ensure that we pay them what they are owed. We are being very careful to ensure that we send letters, and in the letter there is information about a helpline that people can call.
We are very happy to speak to people’s carers. As my hon. Friend says, some people with severe disabilities may not be able to engage with us, and people with mental health conditions may be anxious and not want to engage with us. I was incredibly impressed by the care, compassion and professionalism of my colleagues in the Department for Work and Pensions in Oldham who are undertaking this very important exercise.
Universal Credit
Bob Blackman Excerpts(5 years, 6 months ago)
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Alok Sharma
I apologise if I have not been to Scotland yet—I hope I will put that right in near time—but I have been going up and down the country to jobcentres, talking to people, and I have to say to the hon. Gentleman that universal credit is working.
Bob Blackman (Harrow East) (Con)
Universal credit replaces six complex benefits, some of which are mutually exclusive. My hon. Friend the Minister has confirmed that 700,000 people do not claim the benefits that they are entitled to. When universal credit applies to those people, how much on average will they gain?
Alok Sharma
My hon. Friend is right: people have been underpaid benefits. On average, households will gain £285 a month. Under the previous system, 1.4 million people spent a decade trapped on benefits instead of being helped into work. That is changing under universal credit.