Universal Credit and Working Tax Credits

Bridget Phillipson Excerpts

Wednesday 15th September 2021 Commons Chamber

[Claire Coutinho]

I will talk about the things that I already talk about with them: the youth hub and the work coaches that the Department for Work and Pensions has put into my constituency to help people into work, and the jobs that we are creating in the local economy, which are helping people into work.

Secondly, on skills, not only have we introduced the kickstart scheme, which is helping 2,500 young people a week into the quality jobs we want to see them in, but we have introduced a lifetime skills guarantee. We have improved schools during our period in government, going from two thirds of children being in good and outstanding schools to 86% of children. We have increased the number of job coaches and the amount of money going into apprenticeships and traineeships. These will all set people up to have a good job and a good life.

We are also looking at the root causes of poverty. I assume the Labour party would support the national living wage, which is an extra £5,400 going into people’s pockets since 2010. We are doing things like the troubled families programme and the reducing parental conflict programme, about which I am particularly passionate because, unlike some Opposition Members, I think relationships, not just financial benefits, are one of the best ways to help people out of poverty. That is really important.

I also highlight some of the inconsistencies I have heard today, which I find quite troubling. The Labour party would keep the triple lock, with its 8% rise funded by working-age people. [Interruption.] Let me go through what is happening: 2.5% last year, 2.5% or more this year and back to the triple lock next year. The Labour party would keep it at 8%, funded by working-age people—£5 billion out of their pockets.

Let us talk about pay rises for those who helped us during the pandemic, which the Labour party voted against yesterday. Let us talk about taxes.

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

National insurance, there’s one.

[Claire Coutinho]

Yes, a tax that the Labour party raised in 2003. [Interruption.]

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[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

I thank so many of my hon. Friends for their powerful contributions to today’s important debate. Time is short, so I apologise that I am not able to mention them all personally. I also acknowledge the small number of Conservative Members who called on their own side to think again on this issue.

This debate has been rich in statistics, which reflects both the scale of the mistake the Government are on track to make, and the horror so many of us feel at the simple evidence of the numbers affected and that the impact on each family seems to bear such little weight on the Government’s decision making.

This debate has also been rich in powerful stories about what £20 each week, £100 each month, means to families right across our country. It means enough food to get through the week, it means being able to keep the house warm as the nights grow longer and it means growing children having clothes that fit them properly and warm clothes to see them through the winter.

My hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds), in opening the debate, set out powerfully that the cut to universal credit hurts families in work, as well as those out of work. It is no solution to tell people who are about to be clobbered by this cut that they need to go and get a job when so many are already working all the hours God sends. Nor is it any solution for those who, by reason of disability, illness or caring responsibilities, simply cannot work.

This decision to cut the incomes of millions of families is a choice, but it is a choice that sadly fits with so many recent decisions made by the Chancellor and the Prime Minister. Last November, the Chancellor chose to put up council tax for the very families we are talking about today. He chose to freeze the pay of millions of frontline workers. In March, he chose to freeze income tax thresholds. Last week, he had a brand new tax on working people and their jobs. And today we are debating cutting universal credit.

Again and again, this Government look first to working people, rather than looking across the piece at our tax system. There was a stamp duty holiday for buy-to-let landlords and second home owners, but they have taken £1,000 a year out of the incomes of working people who are doing all that is asked of them.

The most recent figures show that GDP growth is stalling, and this morning’s inflation figures show us that the weekly shop is getting more expensive. Now is not the time to be sucking demand out of our economy. The Government are taking away £20 each week from budgets that are already stretched and from our high streets and local businesses that are getting back on their feet after a tough 18 months.

When I talk of universal credit as a meal on the table for families, heating for homes and coats for children, it is because I know the difference that the money makes. For me, this is more than political—it is personal. Growing up in the north-east in the 1980s, I was one of those children. Not long after starting school, as the winter drew in, my mam could not afford a new coat for me. She was a single parent, money was tight and we did not always have much. I was kept warm by the generosity of a neighbour, who himself did not have much, who saw me and put some money through our door in an envelope marked, “For Bridget’s coat”. I never forgot that kindness.

I thought, and hoped, that more than 30 years later we had moved on. I thought that as a society we would never again allow children to grow up in poverty, never again allow families like my own to be so dependent on random acts of kindness from others. As I grew up, I saw a Labour Government lifting hundreds of thousands of children out of poverty. I saw that poverty is not inevitable: it is about the choices politicians make. Poverty is not about coats or food in and of themselves—it is about the power to make choices for yourself and to have control over your own future. Today, we are seeing a Government about to plunge hundreds of thousands of children back into avoidable poverty.

Today’s debate is not about me. It is about the worried families in my community and across our country starting to think about the same horrible, painful decisions that my family faced all those years ago. At tables across this country, in every constituency, those discussions, those calculations, will be happening this evening and in the weeks to come. They are not decisions I would wish on anyone. They are not decisions Conservative Ministers should be forcing on anyone. That is why I urge all Members to make a different choice this afternoon. I urge Conservative Members to abandon their plans to take away £20 each week from struggling families, and to remember the common decency and compassion that should unite us all. I urge them to support our motion and join us in the Lobby this evening. It is time to cancel the cut.

Oral Answers to Questions

Bridget Phillipson Excerpts

Monday 13th May 2019 Commons Chamber

[Amber Rudd]

I can reassure the right hon. Gentleman that we are spending more money and investing more effort to make sure we get the decision right first time. I am working very closely with the Ministry of Justice, which is recruiting additional people to make sure there is less of a wait for the tribunal. I know how distressing that wait can be, and I am determined to reduce that time.

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

2. What recent assessment her Department has made of trends in the level of in-work poverty.

[The Secretary of State for Work and Pensions (Amber Rudd)]

There is clear evidence that work offers people the best opportunity to get out of poverty, and we now see record numbers of people in work. But it is not enough just to have a job; we want people to have good jobs and to progress in their work. And last month, this Conservative Government increased the national living wage, work allowances on universal credit and the personal tax allowance, providing the biggest pay rise to the lowest earners in 20 years.

[Bridget Phillipson]

I did listen to the Secretary of State’s answer, but she will know that around two thirds of children growing up in poverty have at least one parent in paid work. Work is simply not a straightforward route out of poverty for far too many families. Will she look again at the current levels of the work allowance and the taper rate for universal credit as an important first step in addressing this rising tide of in-work poverty?

[Amber Rudd]

There are many different levers that we can assist with to ensure that we reduce poverty overall and child poverty in particular. I have been focusing particularly on ensuring that more childcare is available and accessible to parents who want to get back into work, sometimes full time, so that the whole family income can be increased. That is a really positive way to try to assist people such as the hon. Lady’s constituents.

Households Below Average Income Statistics

Bridget Phillipson Excerpts

Thursday 28th March 2019 Commons Chamber

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

No child in modern Britain should grow up in poverty, and frankly it should be a source of shame for Ministers that today we are seeing child poverty rising, even by their own preferred measures. We are constantly told that work should be the best route out of poverty, yet for too many children that is simply not the case. Even today we have seen the percentage of children in poverty with working parents rising again. Will the Secretary of State not acknowledge this and change course?

[Amber Rudd]

It is because I have acknowledged that these figures are disappointing and because I want to address this that I have come here to set out what we are doing, what we have already done, and what are going to be the important changes to make to the welfare system to ensure that we do address it. I am committed to making sure that we reduce poverty, and I will be putting in place the levers whereby we can do so. However, these figures are now nearly two years out of date. I have made sure that we are starting immediately to invest the money that the Chancellor put aside for us—£1.7 billion a year—to reduce the taper rate, increase the work allowance, and make sure that we address some of these issues.

Oral Answers to Questions

Bridget Phillipson Excerpts

Monday 5th February 2018 Commons Chamber

[Mr Speaker]

I am grateful to the Minister. I am sure that Members will have an opportunity to pore over her comprehensive reply by moving speedily to the Library, where copies will, I am sure, be located within minutes.

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

T1. If she will make a statement on her departmental responsibilities.

[The Secretary of State for Work and Pensions (Ms Esther McVey)]

We had a record-breaking 2017 for employment, and I am delighted to see the trend continue as we enter the new year. The proportion of people in work is at an all-time high at 75.3%—so 32.2 million people are now in work, 415,000 more than were working last year. Figures also show that there are a record 810,000 vacancies in the economy at any one time, which proves that the Government are delivering on our promise to build a strong economy.

[Bridget Phillipson]

No child in modern Britain should grow up in poverty, but figures from both the End Child Poverty coalition and the Secretary of State’s own Department reveal that we face a growing crisis. Does she seriously believe that ploughing ahead with universal credit will do anything to help the millions of children who are trapped in avoidable poverty in our country or will bring that number down?

[Ms McVey]

One thing on which both of us will agree—on which, indeed, Members in all parts of the House will agree—is that no child should be growing up in poverty. If we take action to ensure that families are working, those children will not be in poverty. We know for certain that if a child’s family are working, that child is much less likely to be in poverty when it grows up and is more likely to attain higher school qualifications. That is the action that this Conservative Government are taking.

Oral Answers to Questions

Bridget Phillipson Excerpts

Monday 21st November 2016 Commons Chamber

[Damian Green]

As so often, my hon. Friend makes an innovative and good point. We work with employers to see what the best form of recognition is for employers who are particularly good at ensuring that older workers can carry on in the workforce, but I will certainly consider his suggestion.

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

2. What recent assessment he has made of trends in the level of self-employment.

[The Minister for Employment (Damian Hinds)]

Many people aspire to be their own boss. Although the bulk of the growth in employment in recent years has been in employment, there are now 4.7 million self-employed people in the UK labour market, accounting for approximately 15% of everyone in work.

[Bridget Phillipson]

I am grateful to the Minister for his answer, but notwithstanding what he has said there is a growing issue of bogus self-employment. Trade unions such as the GMB have been at the forefront of exposing such practices, so will he commit to working with trade unions as part of the ongoing Taylor review?

[Damian Hinds]

Of course, what the hon. Lady refers to does not apply to the great majority of people in self-employment, but some concerns have been expressed. The growth of atypical employment was behind the Prime Minister quite rightly saying that there would be a proper review under Matthew Taylor. That review will look at a whole range of things, as its terms of reference are quite broad: rights, responsibilities, representation, training, representation of under-represented groups and so on.

Oral Answers to Questions

Bridget Phillipson Excerpts

Monday 17th October 2016 Commons Chamber

[Penny Mordaunt]

This was part of the consultation on business rate retention and is being considered at the moment.

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

T10. As the Secretary of State will know, the north-east still has the highest unemployment rate in the UK, with far too many people desperate to find secure work. Is this what the Government mean by a northern powerhouse, or have Ministers abandoned the idea altogether?

[Damian Green]

Ministers have absolutely not abandoned the idea of the northern powerhouse, as I am sure the hon. Lady knows, but we are also equally determined that the benefits of the high employment, low unemployment regime we have established over recent years are spread to all regions of the country, including her own. We will continue the very successful work that we have done in that field over the past six years during the course of this Parliament.

Oral Answers to Questions

Bridget Phillipson Excerpts

Monday 9th March 2015 Commons Chamber

[Mr Duncan Smith]

Apart from the technical changes, the reality is that at the moment when someone falls unemployed then takes a part-time job they have to sign off and go through the whole rigmarole of claiming tax credits with no one talking to them. Under universal credit, they do not sign off. They stay with their adviser, who helps them enormously in negotiating their way through all their job applications. There is therefore a human interface, which is much better and which will help people who are unemployed and who have difficulties. People can look forward to that.

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

12. What proportion of people over the age of 50 who have been referred to the Work programme have found work as a result.

[The Minister for Employment (Esther McVey)]

The objective of the Work programme is to move more people into sustainable employment, and so the available data relate to people’s job outcomes, not starts, which means they have been in work for three or six months. To September 2014, there were 300,410 referrals of people aged 50 and over, resulting in 42,750 job outcomes.

[Bridget Phillipson]

The Work programme is failing older people, with the figures the Minister has just given meaning that only 13% of people aged 55 to 59 have found a lasting job as a result of the programme. What would she say to the constituents I meet, who are desperate to work and doing all that is asked of them yet feel badly let down by her Government?

[Esther McVey]

The Work programme is the largest programme of its kind, helping people into work on an unparalleled scale. It is superseding all the expected levels and targets; it is better than anything that has gone before it.

Oral Answers to Questions

Bridget Phillipson Excerpts

Monday 1st September 2014 Commons Chamber

[Heidi Alexander (Lewisham East) (Lab)]

4. How long the average wait for an assessment for a personal independence payment was on the latest date for which figures are available.

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

13. How long the average wait for an assessment for a personal independence payment was on the latest date for which figures are available.

[The Minister of State, Department for Work and Pensions (Mr Mark Harper)]

The straightforward answer is that claimants have to wait for too long. We are committed to putting that right by clearing backlogs and improving processing time. Analysts in the Department are currently considering what information we should publish in future. We will pre-announce that publication in due course, in line with the UK Statistics Authority’s code of practice.

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[Mr Harper]

I would say two things. Clearly, I am disappointed to hear about the circumstances that the hon. Lady’s constituent has faced, which is why we are focusing on improving the system. My predecessor, my right hon. Friend the Member for Hemel Hempstead (Mike Penning), put a lot of work into improving the position for constituents who have terminal illnesses. We have made significant strides there, reducing processing times almost to the level we would expect, which is a matter of days. We are now focusing on other claims, so that constituents such as those of the hon. Lady will not have to wait for that length of time in the future.

[Bridget Phillipson]

In his earlier response, the Minister said that claimants are having to wait too long, but is it not the case, as Atos acknowledged in an e-mail to me, that that is on average 26 weeks? Surely it is wholly unacceptable to leave people in hardship and distress while they wait. What will the Minister do to sort out that chaos?

[Mr Harper]

First, I agree that the wait is too long. My right hon. Friend the Secretary of State has made it clear that no one should be waiting longer than 26 weeks by the autumn, and 16 weeks by the end of the year, and we will make sure that that happens. As regards hardship, PIP is not an income-replacement benefit for those out of work. It is paid in work and out of work. There are other benefits available such as employment and support allowance, which can help those people who have lost their jobs through no fault of their own.

Oral Answers to Questions

Bridget Phillipson Excerpts

Thursday 13th March 2014 Commons Chamber

[Mike Penning]

People are waiting too long for PIP assessments, partly because of the number being called for face-to-face assessments—between 90% and 95%— which is much too high. The policy was for that to be about 70%, so I think that it could be reduced further. We are looking carefully at whether it is absolutely necessary for that number of people to be called for assessment. When a face-to-face assessment is not needed, PIP will be granted without it.

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

2. What assessment she has made of the effect of Government policies on occupational gender segregation.

[The Parliamentary Under-Secretary of State for Women and Equalities (Jenny Willott)]

We asked the Women’s Business Council to look at how we could tackle the barriers women face in the workplace and when choosing a career. It published its recommendations in June last year, and we are working closely with businesses and across Government to turn them into reality.

[Bridget Phillipson]

It is worrying that the number of female apprentices has dropped, and much more needs to be done to attract women into traditionally male-dominated sectors, such as engineering and manufacturing. When will we see some progress from the Government on that?

[Jenny Willott]

The Government are very proud of our record on apprentices. Over this Parliament we are funding a quarter of a million more apprenticeship places. In fact, more girls and women are taking up these opportunities than boys and men, particularly at the higher levels, where over 60% of apprentices are women. There is an issue with the proportion of women taking up more traditionally male apprenticeships, which is something I will be taking up with the Minister for Skills and Enterprise, my hon. Friend the Member for West Suffolk (Matthew Hancock).

Women in Public Life

Budget Resolutions and Economic Situation

Bridget Phillipson Excerpts

Friday 22nd March 2013 Commons Chamber

[Bridget Phillipson (Houghton and Sunderland South) (Lab)]

I am grateful for the opportunity to speak in today’s debate, and I make no apology for focusing the first half of my remarks on the north-east and on the Budget’s impact on my constituents. I had hoped for a Budget for the whole country, but I fear that the north-east is being left behind.

We have a lot to be proud of in the north-east. We are the country’s No. 1 car producing region, with one in three cars made on Wearside by Nissan. We have a strong record on exports and our world-class universities attract students from throughout Britain, and indeed from throughout the world. However, unemployment rates remain a considerable source of concern. In the last year in my constituency there has been a 96% increase in long-term unemployment, with an increase of 108% for young people. The situation for those aged 25 and over who have been claiming jobseeker’s allowance for more than two years is even more stark: there has been a 600% increase.

The unemployment rate in my constituency and throughout the north-east is higher than in May 2010, and the north-east continues to have the highest unemployment rate of any region. We witnessed in the past the devastating consequences of long-term unemployment, particularly among young people, and Ministers cannot afford to be complacent and just hope for the best. My region needs a Government willing to take action, not repeat the mistakes of the past.

Figures from the House of Commons Library also show a significant increase in the proportion of working men in part-time work in the north-east—up 27% since 2007-08. I know from local trade union representatives that they are doing all that they can to work with employers to protect jobs, but that often comes at the cost of reduced hours and pay cuts. This proportionate increase in part-time male workers places greater strain on families who are already struggling to make ends meet, and it goes some of the way to explaining the rising tax credits and housing benefit bill. Families are being forced to turn to the state as hours and pay are cut at the same time as living costs rise, and that is before we consider the impact of under-employment in the economy. The Office for National Statistics estimates that the number of people who are under-employed has risen by 1 million since 2008. That is 1 million more people who want to work more hours, but they are simply not available.

In the remaining time that I have left, I intend to focus my remarks on one of the biggest barriers that parents, particularly mothers, face, and that is child care when returning to work. Affordable and accessible child care is vital to our economic and social success as a nation, allowing parents to work and helping to give children the best possible start in life. But parents face the triple whammy of fewer child care places, rising costs and reduced Government support. The measures set out by the Government in the Budget do not even kick in until the next Parliament and do nothing to help parents now. Even in 2015, the £750 million that the Government have identified pales in comparison with the £7 billion-worth of cuts made to families in this Parliament.

The Government’s plans to water down carer to child ratios will undermine the quality of child care, and are a real cause for concern. The Government’s own adviser, Professor Nutbrown, has today strongly criticised the proposals, saying that they make no sense at all, and that they are likely to lead to worse child care, with too few adults and too many little children. There is no guarantee that the plans will have the desired impact of reducing the cost to parents.

[Jane Ellison]

Child care is of enormous concern to my constituents as well. How would the hon. Lady expand available child care within the same spending envelope?

[Bridget Phillipson]

It is a cause of concern that parents face that squeeze and rising costs, but I am not convinced that changing the ratios is the answer. The Government need to ensure that the proposals do not have the impact of driving down quality and making parents so concerned about leaving their children in child care settings that they opt not to return to work because they are worried about the time that a carer will be able to spend with a child. I agree that this area concerns us all. I am sure that it concerns the hon. Lady’s constituents. We have to get it right, and my worry is that experts say that the Government are not getting it right and will need to look at it again.

In concluding, I want to return to what my constituents needed from the Budget. The OBR has confirmed that by 2015, people will be worse off than in 2010. My constituents will take little comfort from the Budget. They are paying the price of this Government’s economic failure. We needed a Budget to promote jobs and growth and to support families and businesses that are feeling the squeeze. In the north-east we showed considerable resilience in rebuilding and diversifying our economy following the loss of our traditional industries, but we need a Government for the whole nation, and if we are to complete this transition, we need action from the Government, not more of the same failed policies of the past.

--- Later in debate ---

[Dr Offord]

Yes, of course it would, but I think we need to focus on ensuring that families do not break down, rather than putting someone into care. I know that the circumstances the hon. Gentleman is talking about—[Interruption.] Members are chuntering from a sedentary position, but unless they wish to intervene—

[Bridget Phillipson]

We talk about family breakdown, which of course none of us wants to happen, and I do not know the young man’s particular circumstances, but we are dealing with his case now, not what we might like to be the case. Surely it is wrong that vulnerable young men like him will be punished by the bedroom tax—call it what you like.

[Dr Offord]

The young man is 17 years old, and obviously for the past 17 years we have not had a Government who have addressed social issues in our country.

There is no dispute, at least among the serious political parties, that the country has to make difficult financial decisions in order to reduce the deficit. My disappointment is that there are no such proposals coming from Labour Front Benchers. The Labour party’s 2010 election manifesto stated:

“Housing Benefit will be reformed to ensure that we do not subsidise people to live in the private sector on rents that other ordinary working families could not afford.”

However, the shadow Work and Pensions Secretary, who is no longer in his place, was recently forced to concede that the cost of housing benefit, at £20 billion a year, is too high. He has also admitted that the Labour party does not have a solution for that. How can they be a credible Opposition if they cannot tell people where they would make cuts?

The most appealing part of the Budget for my constituents is the proposed help to assist people to get on the housing ladder. My constituency is the victim of its own success. Good schools, green spaces and a comparatively low crime rate for London ensure that many people want to move there. Although I certainly welcome them, they put pressure on the availability of the housing stock. My constituents’ children find it hard to buy a property, or indeed to rent one, when they return from university or go to work. We should not forget that not everyone is given a deed of variation by mummy and daddy that allows them to stay in part of the family’s house in places such as Primrose Hill, ensuring that they never have to go to a job interview or get a proper job in order to put a roof over their heads.

Many of my constituents are forced to move away from their family and friends and the places they grew up in. The Help to Buy scheme will help them, because in my constituency there are huge regeneration schemes in progress. The Beaufort Park and Grahame Park regeneration schemes are transforming the landscape of the social rented sector in Colindale, and the Mill Hill barracks site is also providing homes for people in the area. Only this morning—this explains my absence at the beginning of the debate—I met John Morris and the resident representatives of the West Hendon regeneration scheme. It has been a hugely difficult social sector regeneration scheme that was not progressed by the previous Government. Indeed, I suspect the motives of local Labour politicians who want to keep people in substandard accommodation instead of getting homes built. [Interruption.] From a sedentary position, Mr Morris says that that is disgraceful—