Oral Answers to Questions

Caroline Dinenage Excerpts

Monday 6th June 2022 Commons Chamber

[Dr Coffey]

The hon. Gentleman forgets that the advance is there to spread the payment that people are entitled to over a year into 13 payments. We have also enabled people in effect to have that payment spread over two years, with 25 payments. It is about a phasing of how we put into families’ pockets the benefits to which they are entitled, and nothing else.

[Dame Caroline Dinenage (Gosport) (Con)]

Among those worst impacted by the cost of living rising is the army of unpaid carers who do so much not only to support their friends and loved ones but to ease the pressure on the NHS. I know that my right hon. Friend understands and appreciates that. This is Carers Week; what thought has she given to increasing unpaid carers allowance to support them and reflect their hard work, sacrifice and need?

[Dr Coffey]

The whole House would unite with my hon. Friend in thanking carers, and I am sure we all have lived experiences as well. I think it is fair to say that carers allowance is not intended to be a replacement salary or anything like that; it is a contribution, and a modest contribution, I accept. As with all benefits, we consider the uplift annually, and I will continue to do so.

Universal Credit: Private Rented Sector

Caroline Dinenage Excerpts

Tuesday 9th January 2018 Westminster Hall

[The Minister of State, Department of Health and Social Care (Caroline Dinenage)]

It is a great pleasure to serve under your chairmanship, Mr Gray.

I congratulate the hon. Member for Eastbourne (Stephen Lloyd) on securing this important debate on the effect of universal credit on the private rented sector. He is a very committed campaigner and I thank him for his work to help us to improve the delivery of universal credit. Universal credit is an important reform and I am pleased to have this opportunity to talk about it, and hopefully to address the issues that have been raised by Members and some of the misconceptions.

As the hon. Gentleman knows, we have been using a test-and-learn approach to universal credit since the beginning. The roll-out of universal credit is a very long one, which is why we have taken that approach—we want to develop the universal credit system based on the evidence we gather as we go along. I thank Members from across the House for their contributions.

The Government are committed to making work pay and universal credit is transforming the welfare system to ensure that it does so. With universal credit, work always pays and, compared with the old system, people spend more time looking for work and find work faster. Universal credit supports people who can work and cares for those who cannot. For the first time, universal credit supports people who are in work, and encourages and incentivises them to progress and earn more.

Members have raised a number of concerns about the impact of universal credit on private rental sector landlords, which I will seek to address. However, we must remember that universal credit is the largest and most significant welfare reform since the second world war. The Government are listening to stakeholders both in Parliament and externally, and we are well aware of the concerns that have been raised. I will try to address some of those concerns today, and to put Members’ minds at rest where I can do so.

First, I will clarify for the House some of the things that universal credit has not changed, in particular for landlords in the private rental sector. Since 2008, housing benefit has been paid directly to claimants by default, and not directly to landlords. That remains the case with universal credit. In fact, currently only 25% to 30% of housing benefit payments are made directly to landlords in the private rented sector. If private landlords want housing benefit to be paid directly to them, they need to ensure that the relevant criteria are met, which are broadly the same as those for a request for direct payment under universal credit.

What has changed is that universal credit is assessed and paid monthly, to replicate the world of work, as we have already heard. Our ambition is to create a welfare system that encourages people to take greater responsibility for their finances, so that they are ready and prepared to move into the world of work. It means that, where possible, we want to encourage and support people to take responsibility themselves for paying their landlord, but of course we want to ensure that the necessary protections and support are in place to allow them to do that.

We know that the majority of people are comfortable managing their own money. However, for claimants for whom that is not the case, we have put in place support to help them. That is why we have the facility, as I have mentioned, for universal credit to be paid directly to the landlord where appropriate.

The hon. Member for Eastbourne asked for changes further to support private sector landlords and tenants—for example to make it easier for private landlords to have rent paid directly to them by the Department for Work and Pensions. We have always been clear that we will roll out universal credit in a way that allows us to continue to make improvements, as Members will have seen in the Budget before Christmas. We have already made a number of changes to universal credit as part of our engagement with the sector, and we will continue to develop our approach based on the feedback and evidence we collect as we go along. It is important to remember that, by Christmas, only 8% of universal credit had been rolled out, and by the end of January it will still be only 10%.

We have made practical improvements. For example, we have simplified and sped up the process for private rented sector managed payment requests, which can now be done by email and on a single form, with no additional information required, and work is under way further to improve that process in the universal credit full service.

We have also improved and updated the landlord information and have made it easier to find on gov.uk. We have another meeting this month with private rented sector representatives—such meetings happen regularly—and we will check whether they can access the information they need. Members have raised that matter today.

[Drew Hendry]

On making it easier for people to get information, there is a long-standing call to reintroduce implicit consent, to allow agencies to assist people with their claims. Will the Minister consider such a reintroduction for universal credit?

[Caroline Dinenage]

We have removed the need for explicit consent. A universal credit claim is the responsibility of the claimant, and implicit consent puts the development of the system at risk. However, it is something that we keep under review.

Some Members may not be aware that we issue a bi-monthly landlord newsletter. Such regular communications and incremental process changes are necessary if we are successfully to introduce this radical and innovative reform, and we will continue to build on them.

We have also made more fundamental changes to make a difference for private sector tenants and landlords. We have recognised that managed payments to landlords in the private rented sector are running at a lower level than expected. We understand that landlords are often small businesses with one or two properties, and that they cannot afford to have rent arrears. That is why we have made three important policy changes for this sector in recent months.

First, in December, as part of the Budget measures, we announced changes to universal credit guidance to ensure that when private sector housing benefit claimants come on to universal credit, we know whether and why they had their rent paid directly to their landlord previously. That will allow our work coaches to determine whether a managed payment to the landlord for universal credit may need to be applied, and will prompt a conversation with the claimant. That change will provide an important safeguard and help to ensure that those who need the support get it from the outset. It will also help to ensure that claimants receive appropriate budgeting support, by providing a further prompt for the work coach to have a discussion with them.

Secondly, we have changed our policy to ensure that when a private rented sector landlord asks for a managed payment to be set up and supplies evidence of two months’ rent arrears, we will implement the managed payment without requiring the claimant’s consent, just as in the old system. That change has already been welcomed by the Residential Landlords Association and shows our commitment to working with landlords to keep improving the system.

Both those changes are designed to ensure that vulnerable claimants who cannot manage a monthly universal credit payment are fully supported, and that landlords receive the rent they are owed.

Thirdly, as set out in the Budget, we will tackle rent arrears by providing claimants with an extra benefit payment equivalent to two weeks’ housing benefit while they transition on to universal credit. We have abolished the seven-day waiting period in universal credit and we have increased the maximum advance payment to up to 100% of a claimant’s indicative award.

A number of Members across the House have spoken about the universal credit monthly payment structure affecting rent being paid to landlords and, therefore, landlords’ willingness to rent to claimants. However, as I have explained, we have systems in place for those who cannot pay the rent directly. It is important that we are fully able to empower those who can be trusted with their own financial affairs. In fact, it would be wrong and insulting to assume that universal credit claimants cannot be trusted to manage their finances.

Members have mentioned reports that some landlords claim they would be unwilling to rent to universal credit claimants, including a recent one from the Residential Landlords Association. Such claims have been made by landlord groups since 2008, when we first started paying housing benefit directly to claimants, but it never seems to have materialised. The evidence shows that the proportion of tenants who are on housing benefit or universal credit has remained broadly consistent for the past 10 years—about 30% of the private rented sector and about 65% of the social rented sector. It would not make financial sense for a business to give up such a large proportion of the market. The way in which universal credit is designed means that landlords would not normally know that a prospective tenant was receiving universal credit. We know that there is anxiety about arrears, which I have addressed, but the fact remains that universal credit is a stable, secure, reliable form of income for claimants and their landlords.

The Department for Work and Pensions regularly engages with private landlords and their representatives. The universal credit team holds quarterly strategic engagement meetings with sector stakeholders, in which it shares the latest updates on universal credit, responds to questions and listens to concerns. Insight from that engagement has already helped us to make numerous process changes to improve interactions with stakeholders. Two examples are the recent changes made to the process for ensuring that managed payments to landlords are put in place where appropriate: treatment under housing benefit and the removal of the need for explicit consent from the claimant.

Department for Work and Pensions staff will continue to work with claimants who have managed payments in place to ensure that they have appropriate budgeting support, and they will remove the arrangements when a claimant is ready. To those private sector landlords who have expressed concerns about renting to universal credit claimants, I say that with the safeguards we have in place, the improved work outcomes that universal credit brings and the personal budgeting support available, such concerns should be groundless.

More attention should be paid to the evidence of universal credit outcomes than to the unhelpful scaremongering of Opposition Members. I can only give in evidence the fact that, in Prime Minister’s questions, the Leader of the Opposition claimed that Gloucester City Homes evicted one in eight tenants—12% of tenants—due to universal credit. That would have been 650 tenants. In fact, it was eight tenants, all of whom had arrears before universal credit was introduced. None of the evictions was as a result of universal credit, and one was because a gentleman had been living in Australia for 18 months.

Universal credit represents a generation-changing culture shift in how welfare is delivered and how people are helped, creating a system that allows people to break free from dependency, take control of their lives, and work. Universal credit picks up from a deeply flawed system and strives to solve problems that were previously thought intractable. In that old system, complexity and bureaucracy so often served to stifle claimants’ independence, limit their choices and constrain their outlook. We have shown with our actions, and have demonstrated here today, that we are listening and learning and are making the changes necessary to implement this historic reform safely, securely and with careful regard to our stakeholders.

Oral Answers to Questions

Caroline Dinenage Excerpts

Monday 18th December 2017 Commons Chamber

[Martin Vickers (Cleethorpes) (Con)]

3. What progress has been made on implementing the recommendations of his Department’s report, “Improving Lives: Helping Workless Families”, published in April 2017.

[The Parliamentary Under-Secretary of State for Work and Pensions (Caroline Dinenage)]

“Improving Lives: Helping Workless Families” aims to improve outcomes for disadvantaged children and is making good progress. For example, from next Spring, Public Health England will run a trial of individual placement and support, and our vital work on reducing parental conflict was boosted by the Chancellor’s announcement of £39 million in the recent Budget.

[Martin Vickers]

I thank the Minister for her reply. As she will know, working households in coastal communities such as Cleethorpes face particular difficulties. There is much low-paid work, but not much to encourage young people to stay there. What additional support can she offer to those sorts of communities?

[Caroline Dinenage]

The Government are committed to supporting coastal communities, such as those in his constituency of Cleethorpes and my constituency of Gosport. That is why I am pleased that the claimant count in his area is already down by 49%. Last March, we saw 248 families in north-east Lincolnshire achieve significant progress through our troubled families programme, and I know that the Secretary of State was impressed when he visited my hon. Friend and saw a programme that is helping troubled youngsters. More widely, the council was awarded a Coastal Communities Fund grant in April worth £3.8 million towards a scheme to enhance Cleethorpes’ role as a high-quality place to work, live and visit.

[David Hanson (Delyn) (Lab)]

Does the Minister think that the fact that she is failing to support people who are workless and still in poverty is one of the reasons why Alan Milburn resigned as chair of the Social Mobility Commission?

[Caroline Dinenage]

We are actually doing more to get people into work than any other previous Government. We know that making a meaningful difference to people’s lives, including those of the most disadvantaged children and families, requires an approach beyond just welfare support. That means supporting people into jobs, because we know that employed people have much-improved chances and incomes. That also means focusing on the other key drivers of poverty, such as education, and on other things to support children.

--- Later in debate ---

[Chris Elmore (Ogmore) (Lab)]

5. What assessment he has made of trends in the number of in-work households living in poverty.

[The Parliamentary Under-Secretary of State for Work and Pensions (Caroline Dinenage)]

It is clear that work is the best route out of poverty, as the rate of poverty in working households is one third of that among workless households. Latest data shows there are 1.9 million working households in relative low income.

[Chris Elmore]

One of the real impacts of increasing levels of in-work poverty will be in the changes that the roll-out of universal credit will bring. In a written parliamentary answer I received today from the Minister for Employment, I was told that universal credit will be rolled out in my Ogmore constituency in March next year, which is incorrect. According to the House of Commons Library, universal credit will be rolled out in March, June and November. How can the public have any trust in what the Government are doing with universal credit if they simply do not know the dates of roll out in particular constituencies when they answer MPs?

[Caroline Dinenage]

We will certainly look into that information. It is important to point out that we know that work is the best route out of poverty, and that universal credit is helping people to move into work quicker, to progress through work faster and to stay in work longer. The smooth taper rate gives incentives to take on more hours because, unlike the old system, people see more money in their pocket for every extra hour they work.

[Steve Double (St Austell and Newquay) (Con)]

Does the Minister agree that one of the ways we can help those in work and on low pay is by introducing and increasing a national living wage, by increasing the personal tax allowance so that people keep more of the money they earn, and by helping with childcare costs? Is that not precisely what the Government are doing?

[Caroline Dinenage]

I could not have put it better myself. There are 300,000 fewer working-age adults in absolute poverty now than in 2010. As my hon. Friend says, we are making sure that work pays through the national living wage and lower taxes. The lowest earners have seen their wages grow by almost 7 percentage points above inflation over the past two years.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

On behalf of my party, may I add my condolences to those already expressed in this Chamber? I am sure that all our hearts go out to Mr Deputy Speaker’s family.

One of the biggest problems facing in-work households living in poverty is fuel poverty. Altnaharra, which is in the middle of my vast constituency, is the coldest place in the UK every year, so fuel poverty is a colossal problem for my constituents. Will the Minister have meetings with the Scottish Government to take forward ways of tackling this terrible problem, particularly in the remotest and coldest parts of the UK?

[Caroline Dinenage]

I associate myself with the hon. Gentleman’s comments about Mr Deputy Speaker.

The hon. Gentleman makes a good point about fuel poverty. The Government have been doing so much to ensure that people are aware that they can cut down on household energy bills by switching, and we have been making it easier for people to switch. We also know that the Scottish Government have devolved powers to support people more with their benefits, if that is what they decide to do, and they are free to develop their own approaches to addressing poverty.

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

Is it not time to have a grown-up conversation about the measure of poverty? Under the relative measure, thousands would be lifted out of poverty by a recession, by a significant number of job losses or by a reduction in the median level of household income. Surely that cannot be the best measure and it is right that we look to work as the best route out of poverty.

[Caroline Dinenage]

My hon. Friend is absolutely right to raise this matter. If we look at progress since 2010 across all four of the most commonly used measures of poverty—relative, absolute, before housing costs and after housing costs—without cherry-picking any of the statistics, we see that people are no more likely to be in poverty today than they were in 2010. Indeed, on three of the measures the likelihood of being in poverty has reduced, and the incomes of the poorest 20% have increased in real terms by more than £300.

[Kate Green (Stretford and Urmston) (Lab)]

20. CPI—consumer prices index—stands at 2.8%, food inflation is at 4.2%, its highest for four years, and the big six energy companies have announced price increases of between 8% and 15% this year. That comes against a backdrop of freezes on working age benefits, so is it surprising that people are having to go to food banks?

[Caroline Dinenage]

The Government are committed to building an economy that works for everybody, which is why we have committed to raising the national living wage—we are talking about an increase of 33p. This will be equivalent to a 9% increase in the national living wage since its introduction in 2016. It represents an increase to a full-time minimum wage worker’s annual earnings of more than £600.

[Margaret Greenwood (Wirral West) (Lab)]

On behalf of Labour Members, I would like to express our condolences to Mr Deputy Speaker. Our thoughts are with him and his family.

Disabled people are twice as likely to live in poverty as non-disabled people because of the extra costs they face. The Equality and Human Rights Commission recently estimated the cumulative effect of Government cuts since 2010 at £2,500 a year for a disabled adult, but when the Government discovered that they had underpaid approximately 75,000 disabled people who transferred on to ESA support between 2011 and 2014, they announced in last Thursday’s written statement that they would only be repaying claimants from October 2014. How many of the 75,000 disabled people will receive an arrears payment? Given that attempted suicide rates among ESA claimants doubled between 2007 and 2014, what estimates have been undertaken on the impacts on claimants’ mental health as a result of this Department for Work and Pensions error?

[Caroline Dinenage]

I am sure that I can write to the hon. Lady with the details on that. As well as being very mindful of the impact on people’s mental health and wellbeing, we must apply the law. We have to value disabled people in our workplace, which is why the Government are making sure that many, many more disabled people are able to access work and get into work.

[Margaret Greenwood]

Recent data shows that 8 million working families are living in poverty. Despite Government rhetoric, work is not the route out of poverty.; four out of five people who are in low-paid work now are likely to be in low-paid work in 10 years’ time. But in his interview on yesterday’s “The Andrew Marr Show”, the Secretary of State failed to mention that, under universal credit, sanctions have escalated and are being applied to people who are actually in work. The Public Accounts Committee and the National Audit Office have both raised concerns about the impact of sanctions on debt, rent arrears and homelessness. So why is the Secretary of State intent on punishing people in low-paid work by sanctioning them?

[Caroline Dinenage]

Sanctions are applied only as a very last resort and there are mitigations in place to support people when this is done. The hon. Lady is wrong to say that people in work are more likely to be in poverty; a key driver of in-work poverty is the part-time work that people were trapped in when her party was in government—people were trapped working fewer than 16 hours a week. The Labour Government were literally paying them to stay poor, whereas our reforms are about supporting people to progress in work and keep more of the extra money that they earn.

[Ms Karen Lee (Lincoln) (Lab)]

6. If he will make an assessment of the effect of the length of waiting time to receive universal credit on levels of food bank usage.

--- Later in debate ---

[Imran Hussain (Bradford East) (Lab)]

T7. I recently met Hope Rising action group, which works in my constituency to support those affected by the Government’s benefit cap, and heard stories about just how hard people are being hit by a policy that is so cruel the High Court found it unlawful and guilty of causing misery. Will the Minister tell me how many people in Bradford will be affected by this policy?

[The Parliamentary Under-Secretary of State for Work and Pensions (Caroline Dinenage)]

We must ensure we have a welfare system that is fair not only to those in receipt of welfare, but to those who pay for it. The lower cap is fair to both working households and the taxpayer. Before the cap, the Department for Work and Pensions disproportionately spent £10 million a year on just 300 families.

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

For jobseekers in my constituency of West Aberdeenshire and Kincardine, it is overwhelmingly the “can do” attitude of professionals and the dedication of the work coaches, whom they value, that will help them to find work. Especially at this time of year, we as a House should definitely pay tribute to them. May I ask my hon. Friend how the new work coaches will boost the chances of jobseekers in West Aberdeenshire and Kincardine, as well as those elsewhere, to find work?

[Patrick Grady (Glasgow North) (SNP)]

Two constituents came to my surgery on Friday, concerned that the switch of support for mortgage interest payments will force them into the private rented sector and on to housing benefit, and will therefore cost the taxpayer more money. Will the Government review that policy? Is it not more evidence of Tory austerity hitting the poorest the hardest?

[Caroline Dinenage]

The conversion of SMI from a benefit into a loan is intended to retain support for owner-occupier claimants in a more sustainable way, while increasing fairness for taxpayers, many of whom cannot afford to buy a home of their own.

[Tom Pursglove (Corby) (Con)]

What steps is the Department taking to ensure that DWP staff are aware of military covenant issues, so that they are best able to support our brave men and women when they leave the armed forces?

[Caroline Dinenage]

My hon. Friend is absolutely right to raise that issue. Veterans make a considerable contribution to our country and it is right that we support them as they move on in their careers. DWP staff receive continual training to ensure that they can signpost veterans correctly. The “See Potential” campaign champions veterans and encourages employers to see the incredible skills they bring to the workplace.

State Pension Age: Women

Caroline Dinenage Excerpts

Wednesday 29th November 2017 Commons Chamber

[The Parliamentary Under-Secretary of State for Work and Pensions (Caroline Dinenage)]

I start by thanking everyone who has contributed to today’s debate on this important issue. Members on both sides of the House have made passionate and heartfelt speeches and interventions.

A welfare and pensions system is successful only as long as it is sustainable, and as the population balance shifts from working-age pension contributors to those aged over 65, an increase in the state pension age is necessary for the welfare of all. As the hon. Member for Eastbourne (Stephen Lloyd) pointed out, virtually every party in the House has either taken the opportunity to raise it, or not taken the opportunity to do something about it.

[Jamie Stone]

To support my hon. Friend the Member for Eastbourne (Stephen Lloyd), does the Minister agree that the failure to address the issue—for whatever reason, and by whatever party—reflects badly on this Parliament in general at a time when we could do with a much higher standing in public esteem?

[Caroline Dinenage]

We have taken forward transitional arrangements. It is insulting for Members from parties that have played their part in getting us to where we are today somehow to wash their hands of the matter. I will go on to make a few points, if the hon. Gentleman will forgive me.

Those who are able to work should support those who are not, confident in the expectation of similar support when they reach retirement. Today’s workers provide the support for today’s pensioners, and that is why it is so important that we have the right balance of the contributions that are paid in at present with the pensions that are being withdrawn, and that we adjust pension ages to maintain that balance. Women who retire today can still expect to receive the state pension for 24 and a half years, on average—almost three years longer than men.

As was outlined by the Pensions Minister, my hon. Friend the Member for Hexham (Guy Opperman), the Department for Work and Pensions has communicated the timetable for changes to the state pension age since they were first set in train 22 years ago. As my hon. Friend the Member for Redditch (Rachel Maclean) pointed out, in response to concerns raised during debates on the Pensions Act 2011 in both Houses, we introduced the £1.1 billion concession that has been mentioned, which staggered the changes and ensured that no one would wait more than 18 months for their pensions, compared with under the previous timetable.

Any further concession would cost significantly more. It would involve asking people of working age—more specifically, today’s younger people, as my hon. Friend the Member for Chelmsford (Vicky Ford) mentioned—to pay even more for it. Those outcomes simply cannot be justified.

[Ian Blackford]

Will the Minister give way?

[Caroline Dinenage]

I am not going to give way to the right hon. Gentleman. He made criticisms in relation to the Budget and the Chancellor, but he went on to speak for a considerable time today, taking more than 40 minutes for himself and depriving Back Benchers of the chance to have their say. I will make some progress—[Interruption.] I want to address some of the issues that have been raised by SNP Members, so if the right hon. Gentleman would like to listen, I will do so.

As has previously been stated—my hon. Friend the Member for Aberdeen South (Ross Thomson) pointed this out—if the Scottish National party disagrees with any of the UK Government’s welfare reforms, it has the power to do something about it in Scotland.

The right hon. Member for Ross, Skye and Lochaber (Ian Blackford) has mentioned on several occasions that the Scottish National party’s Westminster parliamentary group published a report by Landman Economics, which modelled—[Interruption.] I thought he would be keen to listen to this. The report modelled the impact of a number of options for compensating women affected by the 2011 Act. Of these, the Scottish National party’s preferred option was to abandon that Act entirely, returning us to the timetable under the Pensions Act 1995.

The SNP-commissioned report put the cost of this option at £7.9 billion for the period between 2016-17 to 2020-21. As it stands, that is simply unaffordable, but it has the double misfortune of also being wrong. The Landman report significantly underestimates the full costs of returning to the 1995 Act’s timetable. The Government estimate that the cost over that period would be about £14 billion—nearly double—and that figure includes the impact of lost revenue from tax and national insurance, which the Landman report does not fully take into account.

What is worse is that the SNP’s position applies the costs only to the five-year window between 2016-17 and 2020-21. The costs beyond this horizon are simply not included in the option put forward. If the changes we are implementing did not happen, the actual costs to working-age people would be more than £30 billion over an extended period, which is equivalent to over £1,100 per household. I am sure the right hon. Gentleman would like to justify that to his constituents.

The Scottish National party has also suggested using the national insurance fund to pay for the cost of scrapping the Pensions Act 2011. However, that is not the intended use of the fund, and it is worth reiterating that today’s national insurance contributions fund today’s pensions, with an excess of only two months’ outgoing payments at any given time.

The new state pension is actually much more generous for many women, who were historically worse off under the old system. By 2030, over 3 million women stand to gain an average of £550 extra per year as a result of these changes. The acceleration of the increase in the state pension age for both women and men is necessary to ensure the state pension system’s sustainability in the light of increasing life expectancy and more pressure on public resources. In fact, by 2035, there will be more than twice as many people aged 100 and over as there are now.

Failure to act in the light of such compelling evidence would be reckless. Given the increasing financial pressure that I have described, we cannot and should not unpick a policy that has been in place for 22 years. It is simply not affordable, especially when we take into account the fact that the average woman reaching state pension age will get a higher state pension income over her lifetime than an average woman reaching state pension age at any earlier point.

It is important to appreciate the modern lived experience of later life in the 21st century, which has altered significantly since the inception of the state pension in the 1940s. Longer life, better health and continued activity in later decades are reshaping the profile and participation of older people in our society. This includes sustaining work and other economic activity as those over 60 continue to learn, earn, contribute and participate.

[Rachel Maclean]

Contrary to the assertion by SNP Members that it is an insult to offer an apprenticeship, does my hon. Friend agree that saying that is actually an insult to women who would like to take up—

--- Later in debate ---

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I am sorry, but I think the Minister had finished her speech.

[Caroline Dinenage]

In fact, I do not think that I had quite finished, Madam Deputy Speaker.

I do not think that anybody is suggesting that older women should be forced to take an apprenticeship. No one is even suggesting that they should be cajoled or encouraged to do so, but I find it insulting that SNP and Labour Members seem to be suggesting that women over the age of 60 should be put on the scrapheap and should not be allowed to do what they want. If they want to take an apprenticeship, they should be allowed to do so.

[Patrick Grady (Glasgow North) (SNP)]

claimed to move the closure (Standing Order No. 36).

Question put forthwith, That the Question be now put.

Question agreed to.

Main Question accordingly put.

Benefits and Pensions Uprating 2018-19

Caroline Dinenage Excerpts

Monday 27th November 2017 Written Statements

[The Parliamentary Under-Secretary of State for Work and Pensions (Caroline Dinenage)]

I am pleased to announce the proposed social security benefit and pension rates for 2018-19. I will place a copy of the proposed benefit and pension rates 2018-19 in the House Library. The annual uprating of benefits will take place for state pensions and most other benefits in the first full week of the tax year. In 2018, this will be the week beginning 9 April. A corresponding provision will be made in Northern Ireland.

The annual uprating process takes into account a variety of measures:

The basic and new state pension will be increased by the Government’s ‘triple lock’ commitment, meaning that they will be uprated in line with the highest of prices, earnings or 2.5% —in this case CPI at 3%.

The legislative requirement for the pension credit standard minimum guarantee is that it is increased at least in line with earnings. However to protect the poorest pensioners, the pension credit standard minimum guarantee will be uprated by the same cash amount as the rise in the full rate of the basic state pension.

Benefits linked to the additional costs of disability, and for carers, are increased by the annual rise in prices, as reflected in the Consumer Prices Index (CPI). A number of other elements—including Non-Dependant Deductions (NDDs)—will also be uprated in line with prices.

The majority of working-age benefits have been frozen at their 2015-16 levels for four years under the Welfare Reform and Work Act 2016.

The list of proposed benefit and pension rates also includes a change to the carer’s allowance earnings rule, which will be increased for 2018-19 from £116 to £120 a week.

Attachments can be viewed online at:

http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2017-11-27/HCWS268.

[HCWS268]

Support for Care Leavers

Caroline Dinenage Excerpts

Thursday 16th November 2017 Westminster Hall

[The Parliamentary Under-Secretary of State for Work and Pensions (Caroline Dinenage)]

It is a pleasure, as ever, to serve under your chairmanship, Mrs Gillan. I, too, thank my hon. Friend the Member for Brentwood and Ongar (Alex Burghart) and congratulate him on securing this important debate on the support given by the Department for Work and Pensions to care leavers. I also thank hon. Members across the House for their valuable input to this important discussion. They have raised a number of really important issues on how the Government and, indeed, my Department support care leavers. I am very pleased to have the opportunity to address all—or at least most of—the questions that have been raised, and to set out some of the actions that we are taking.

Let me start by reassuring my hon. Friend, and indeed all Members, that the Government are committed to improving the lives of, and outcomes for, care leavers. We recognise that care leavers are among the most vulnerable groups of young people. We of course understand that sadly many were taken into care because of neglect or abuse as children. We understand that as they leave care, they often have to make the transition to adulthood and independent living at a younger age than their peers, and usually without the support of a family network, as other Members have said.

The exceptionally difficult challenges that care leavers face mean that their educational, health and employment outcomes can be significantly worse than those of their peers. That is why we introduced the first ever cross-government care-leaver strategy in 2013, and updated that strategy in 2016. The strategy sets out the steps that the Government are taking—from housing to health services; from the justice system to educational institutions; and from financial support to work—to support care leavers to live happy, healthy and independent lives. The Department for Work and Pensions was proud to play a full and active role in supporting the Department for Education in developing that strategy. In the time available today, Members will forgive me if I focus as specifically as I can on the actions that the Department for Work and Pensions has taken, but it is important to remember, of course, that they are part of a cross-Government approach, which needs to be joined up as far as possible.

My Department has put in place a comprehensive package of support and protections for care leavers who need to claim benefits to make the transition from local authority care to independent living. That support ensures that they are offered the help that they need to take that important step, including the necessary assistance to find employment. That is where universal credit is an enormous benefit. The new work coach model means that each claimant stays with the same work coach throughout their claim, giving continuity of support for claimants. It also means that work coaches are able to identify very early a claim by someone who has complex needs—someone who may require individualised, tailored support. That, of course, includes care leavers.

A couple of hon. Friends and hon. Members mentioned that very important data collection exercise. My Department is working very hard to try to collect better data on claimants with complex needs, including care leavers. Information that someone is a care leaver is held on the claimant profile as part of the universal credit system. We are at the very early stages of the process, and we are still working through what data is being collected and what the data is telling us. We will, of course, keep a very close eye on that, and see if further markers are needed. That is why we have built into the universal credit system a pause-and-learn approach, which means that we can incorporate the benefits of our learning as we go. The Department for Education continues to publish valuable care leaver outcome data for 17 to 21-year-old care leavers. A data-share agreement is in place between Her Majesty’s Revenue and Customs, Department for Work and Pensions, and the Department for Business, Energy and Industrial Strategy to explore the link between educational achievement and labour-market outcomes. They will also explore the quality of outcome information that the data-sharing provides for specific groups, such as care leavers.

In universal credit, work coaches can tailor interventions to the needs of the individual, and the support that they can offer is incredibly wide-ranging. It can address a variety of barriers to work, and might include improving job-search skills, referral to skills and other work-related training, and other types of support. The work-related training can include traineeships, apprenticeship places, and work experience. I will speak a little more about apprenticeship places later on.

Jobcentre Plus districts work closely with their local authority care leaving teams to put in place protocols and processes to support care leavers who need to claim benefits. There are some great examples across the country of effective working protocols between job centres and local leaving care teams. Barnet care leaver hub, for example, involves a Jobcentre Plus work coach, co-located in the local authority leaving care premises with the Drive Forward foundation, the care leaver charity that delivers intensive one-to-one work support. Jobcentre Plus partnership managers are working with their local authority leaving care teams to facilitate contracts and joint working protocols. We are working with the Department for Education to encourage local authority leaving care teams to contact Jobcentre Plus.

A key element of that is the facility to prepare a claim in advance of the claimant’s 18th birthday. With the support of their local authority leaving care adviser or a Jobcentre Plus work coach, a care leaver can begin preparing to make that benefit claim four weeks before their 18th birthday. That ensures that all the identification and evidence checks are completed before they leave care and prevents any unnecessary delays in benefit payments. It also provides the opportunity to arrange advances and to direct rent payments to landlords where appropriate.

[Alex Cunningham]

The Minister is describing lots of good practice, but I wonder how we can get to the stage where a young person can be asked at their first point of contact with the DWP whether they are a care leaver, so that identification can follow them through the system?

[Caroline Dinenage]

That is something that we have discussed at length, and we are looking in detail to see whether that proposal could be incorporated. I would like to reassure my hon. Friend the Member for Brentwood and Ongar and other hon. Members across the House that we have worked hard, and are continuing to work hard, to ensure that universal credit works and is beneficial, not only for the majority of straightforward cases but for care leavers and those with complex needs too. That is why we have introduced a series of measures aimed at safeguarding and supporting care leavers.

I would like to go through a few examples, which people may or may not be aware of. We have exempted care leavers from waiting days in universal credit. Those who are under the age of 22 do not serve the seven waiting days and are entitled to universal credit from the very first day that they make their claim.

We have introduced the second chance learning initiative to enable care leavers up to the age of 22 to catch up on the education they may have missed out on when they were younger. That means income support or universal credit are available to care leavers who take up full-time study in non-advanced education. We have exempted care leavers from the removal of automatic housing support for 18 to 21-year-olds in universal credit.

The hon. Member for Stockton North (Alex Cunningham) talked about exempting care leavers from council tax. The Government have given councils the flexibility to support vulnerable groups, including care leavers, to manage their council tax bills. The Department for Communities and Local Government wrote to all councils in 2016 to remind them of the powers they have under the Local Government Finance Act 1992 to support vulnerable groups. A number of councils have already taken the decision to support care leavers through an exemption or discount in their council tax bills, as I think he said his local council was doing.

[Steve McCabe]

I do not get that many opportunities to praise Birmingham City Council, but it is one of the authorities that apply the exemption. Will the Minister consider writing to her colleagues at DCLG to ask them to publish a full list of the councils that exempt care leavers from council tax? Quite rightly, that is not something the Government can do, but it is a practice that almost all councils should follow unless there is a very good reason why they are not doing it.

[Caroline Dinenage]

The hon. Gentleman represents Birmingham beautifully—Selly Oak and also other parts of Birmingham, as we have learned today. He makes a good point.

[Alex Cunningham]

He has broad shoulders.

[Caroline Dinenage]

He is clearly very talented. We would be very happy to do that, and I pay tribute to him for his work as chair of the all-party parliamentary group for looked after children and care leavers. I would like very much to accept his offer to come and join that APPG for at least one of its meetings.

[Patricia Gibson]

The Minister talked about councils being written to, to remind them of their flexibility and how they can implement the council tax exemption. Is she willing to give some money from central Government to help local authorities absorb the exemption that they are willing to give? That has happened in Scotland, where between 6,000 and 7,000 care leavers will be exempted from council tax, up to the age of 26. Will any money from central Government be given to help local authorities, including those in Scotland and other parts of the UK, to fund that?

[Caroline Dinenage]

The hon. Lady tempts me to make spending commitments on behalf of the Department for Communities and Local Government. While I would, of course, be absolutely delighted to do so, it is a little bit beyond my job description. I am sure the Department will read with great interest her comments in Hansard.

[Norman Lamb]

I am grateful to the Minister for giving way; she is being very generous. The former Minister Edward Timpson introduced a very good reform to enable payments to continue to children in foster care beyond their 18th birthday, which was widely welcomed. However, if the rate paid for the most complex children being looked after by very experienced foster carers goes down at their 18th birthday, it creates an incentive for the foster carer to encourage them to leave, which is the very last thing we should be doing. Does she agree that we should seek to find ways of ensuring we provide incentives for them to stay at home, as happens in every other family?

[Caroline Dinenage]

I am grateful to the right hon. Gentleman for drawing attention to my former colleague, Edward Timpson, who was a most fantastic Minister in the Department for Education and a great advocate for care leavers. We are supporting the Staying Put arrangements that the right hon. Gentleman alluded to, which mean that care leavers who remain with their ex-foster carer can claim means-tested benefit from their 18th birthday up to the age of 21, but I will look at everything he has said.

In addition, we have exempted care leavers from the shared accommodation rate until they are 22. The shared accommodation rate is normally paid to single people aged under 35. That means that care leavers can claim the higher local housing allowance one-bedroom rate of housing benefit until their 22nd birthday.

I have listened to the arguments made by hon. Members about the issue today. I particularly welcome the comments of my hon. Friend the Member for Colchester (Will Quince); he gave an eloquent description. I also thank him for the significant contribution he has made as chair of the all-party parliamentary group on homelessness, where he does a sterling and very valuable job.

We have always said that this is something we would like to achieve, but at the moment we do not have plans to extend the exemption for care leavers from the shared accommodation rate to age 25. I assure my hon. Friend and other Members who have raised the issue today that we will continue to keep it under review and will consider evidence from stakeholders on the impact that the shared accommodation rate has on care leavers.

We have given care leavers priority access to personal budgeting support in universal credit. That includes benefit advances, rent paid direct to landlords, payments more frequent than monthly and budgeting advice, including debt advice, which was raised by the hon. Member for Stockton North.

We have a fantastic “See Potential” campaign—I say fantastic as it falls under my ministerial portfolio. It encourages employers to recognise the benefits of recruiting people from all kinds of backgrounds, including care leavers. I was so pleased to celebrate the inspiring workplace and training achievements of young people, including care leavers and others, at the Land Securities Community Employment Awards recently—we saw the incredible growth, development and achievement of some very inspiring young people.

I am pleased that the Government are leading by example by setting up a cross-Government scheme to provide employment to care leavers. My Department’s own care leaver team includes a quite brilliant care leaver intern, who I have had the pleasure of meeting, and who is providing us with very valuable insights into issues that care leavers face and helping us improve our services for care leavers. She is very cool as well—she is in the room, which is why I am saying that!

In developing our support for care leavers, we have worked closely with stakeholders. I am particularly grateful for the input from the Children’s Society, representatives of which I met shortly after being appointed to the Department. When I met with them, I was made aware of the fact that in some cases care leavers have difficulty taking up apprenticeships and a number of hon. Members have raised that today. We know that without the support of a family, they struggle economically. Having had that meeting, I hotfooted it straight over to the Department for Education and met the Minister for Apprenticeships and Skills to discuss the idea of an apprenticeship bursary, which would ensure that apprenticeships were an affordable option for care leavers, who do not have the family support that most apprentices can rely on.

The Department for Education are reviewing how the new apprenticeship funding approach is supporting all those who are disadvantaged, including care leavers, with the intention of improving how the system supports those individuals from 18 to 19, so that apprenticeships offer a more attractive opportunity to them and a greater chance of success. It has agreed to explore the proposal for an apprenticeship bursary.

The debate has raised some really important issues, and I am grateful to all right hon. and hon. Members for the points they have made, which will continue to inform our work to support care leavers, alongside our discussions with our valuable stakeholders.

[Alex Cunningham]

Just before the Minister sits down, there were two further points raised during the debate—first, the imposition of sanctions at a lower rate and, secondly, the opportunity to develop a way in which local authorities can work with care leavers applying for universal credit ahead of reaching their 18th birthday.

[Caroline Dinenage]

The hon. Gentleman is right to remind me about the sanctions—I pulled that little bit of paper out, but had forgotten to pick it up—but I think that I covered applications in advance of the 18th birthday earlier in my speech.

With regard to sanctions, I would like to stress that the Department for Work and Pensions recognises the unique set of circumstances faced by care leavers. Therefore, we allow care leavers to apply for hardship payments of 60% of their normal benefit payment from day one of the sanctions. Sanctions are used in a very small minority of cases, when people fail to meet each of the requirements that they agreed in their claimant commitment without good reason. That said, conditionality and sanctions are part of a fair and effective system that supports and encourages claimants to move into work, towards work or to improve their earnings. Work coaches are very well trained to deal with vulnerable claimants, and have the flexibility to tailor the requirements according to each individual’s circumstances, and that includes the needs of care leavers.

We do not impose sanctions lightly. Claimants are given every opportunity to explain why they failed to meet their agreed conditionality requirements before a decision is made. A well-established system of hardship payments is available as a safeguard if a claimant demonstrates that they cannot meet their immediate and most essential needs, including accommodation, heating, food and hygiene, as a result of their sanction. UC claimants are able to apply for a hardship payment from the first accounting period in which the sanction reduction is applied.

I have spoken to care leavers, and we do not do them any favours by insulating them from the challenges of the day-to-day reality and responsibilities that their peers face. The care leavers I have spoken to tell me that they do not want to be wrapped in cotton wool. They want a little extra support and help, but they do not want to be entirely insulated from the challenges and responsibilities that their peers face.

I am pleased to have been able to put on the record our commitment to supporting care leavers and the action we are taking, but I hope I have made it clear that we are not complacent. I am passionate about improving the lives of care leavers. We are determined to ensure that the welfare system in general and universal credit in particular help care leavers make a successful transition to independent living and working life, and that we support them as best as we can.

[Mrs Cheryl Gillan (in the Chair)]

I call Alex Burghart to wind up.

Oral Answers to Questions

Caroline Dinenage Excerpts

Monday 13th November 2017 Commons Chamber

[Mims Davies (Eastleigh) (Con)]

1. What recent discussions he has had with Cabinet colleagues on support for Gurkhas in the welfare system.

[The Parliamentary Under-Secretary of State for Work and Pensions (Caroline Dinenage)]

The Department for Work and Pensions has regular discussions with colleagues across Government about the treatment of Gurkhas in the benefit system and its responsibilities under the armed forces covenant. Additional support is already in place for members of the armed forces community, to take account of their needs and circumstances.

[Mims Davies]

Gurkhas put themselves on the line for our country. I recently met members of the Gurkha community in Eastleigh. They have travelled a long distance from home and they are phenomenal soldiers. Will my hon. Friend continue to ensure that their unique circumstances are recognised in both our pensions and benefits systems?

[Caroline Dinenage]

As you will be aware, Mr Speaker, I am married to a former Gurkha, so I fully understand and share my hon. Friend’s gratitude for their bravery and service. No member of our armed forces should be disadvantaged by their service to our country. I would like to reassure her that the DWP takes very seriously our commitment to the armed forces covenant. We will do everything we can, and work as hard as we can, to help them get the best possible support.

[Paul Blomfield (Sheffield Central) (Lab)]

2. Whether he has made an assessment of the potential merits of reducing the repayment rate on advance payments of universal credit.

--- Later in debate ---

[Ian Mearns (Gateshead) (Lab)]

19. What assessment he has made of the effect of the length of waiting time to receive universal credit on levels of rent arrears.

[The Parliamentary Under-Secretary of State for Work and Pensions (Caroline Dinenage)]

The Department for Work and Pensions is currently undertaking work to investigate the reality of rent arrears in universal credit. It aims to understand the true level of rent arrears for tenants, what is causing them, and any impacts universal credit may be having.

[Tracy Brabin]

New findings say that 49% of landlords are less likely to rent to those in receipt of universal credit. In Kirklees, only 121 social homes are available for the 9,700 people on the waiting list. What steps will the Minister take to prevent those on universal credit from being discriminated against?

[Caroline Dinenage]

The hon. Lady is right to ask the question, but alternative payment arrangements are available. We have listened carefully to housing providers and we are seeing improvements all the time.

[Ian Mearns]

I listened carefully to the Minister’s answer, and I wonder whether it would be of any surprise to her that the chief executive of a large housing authority in the north-west of England recently told me that the authority had arrears of more than £2 million from universal credit alone. Claimants in one authority in Yorkshire and Humber have average arrears of more than £1,100 each. Why is that happening and what is she going to do about it?

[Caroline Dinenage]

We have to be careful not to scaremonger on this issue. A National Federation of Arm’s Length Management Organisations report says that three quarters of tenants who started to claim universal credit were already in arrears, and research shows that after four months the number of claimants in arrears has fallen by a third.

[Richard Graham (Gloucester) (Con)]

The single biggest problem for some welfare recipients who move into universal credit is their high level of debt. Can my hon. Friend the Minister for Employment tell me what he can do to take forward his idea of an interest-free period to resolve outstanding debt, and to promote the use of credit unions in advising strongly against the use of loan sharks, particularly in the run-up to Christmas?

[Caroline Dinenage]

On behalf of the Minister for Employment, may I say that my hon. Friend makes a very important point? We do want people to address their levels of debt, and that is why we have this effective system of advance payments, which enables people to budget properly and to meet their debts.

[Stephen Timms (East Ham) (Lab)]

18. Whether he has investigated reports of online applications for universal credit being lost; and if he will make a statement.

--- Later in debate ---

[Stephen Kerr (Stirling) (Con)]

What are Ministers doing to close loopholes used to avoid child maintenance payments?

[Caroline Dinenage]

When a non-resident parent fails to pay on time or in full, we endeavour to immediately establish compliance before enforcement action is needed. There is a range of strong powers that we can take, including the forced sale of property, disqualification from driving or, indeed, commitment to prison, but we are exploring options to expand those, and they will form part of our new compliance and arrears strategy, which will be published shortly.

[Nic Dakin (Scunthorpe) (Lab)]

Members of the British Steel pension scheme need to decide whether to go into British Steel pension scheme 2 or the Pension Protection Fund by 11 December, but there is still a lack of clarity around the position of high/low pensioners in the PPF and whether that might change after the point of decision making. Will the Secretary of State look at this so that the information is available to people before they make that decision?

Supported Housing

Caroline Dinenage Excerpts

Wednesday 25th October 2017 Commons Chamber

[The Parliamentary Under-Secretary of State for Work and Pensions (Caroline Dinenage)]

I very much welcome the opportunity to discuss this important issue. We have heard from a huge number of colleagues on both sides of the Chamber. I thank them all for their really valuable contributions, as well as for their support for this essential sector and their individual stories, particularly those drawing attention to the work—we all understand that it is incredible valuable—that is done by the suppliers of supported housing and sheltered accommodation in their constituencies.

I want to emphasise the importance that the Government attach to supported housing. It plays a vital role for many vulnerable people, as so many Members have said. It gives them a safe and supportive place where they can live as independently as possible. The Government are keen to ensure that those living in supported accommodation and those who provide this type of housing receive appropriate payment and protections. We also want building and further development in this sector to meet the projected future demand and ensure we can offer supported housing provision to those who need it.

That is why we have announced today that the local housing allowance cap will not be applied to social sector tenants, including those living in supported housing. It is absolutely essential—for providers, commissioners and vulnerable tenants, as well as for taxpayers—that we put the supported housing sector funding model on a sustainable footing and ensure that it works for all. We will announce our proposals for supported housing next week, and I hope these will show that we have listened to what people and organisations have said and that we have understood the issues.

[Mary Glindon]

Will the Minister give an assurance that the YMCA, the largest charitable provider of young people’s supported housing, which has expressed lots of concerns, has been given a full hearing and that its suggestions have been taken fully on board in the review?

[Caroline Dinenage]

A lot of comments have been made about how long it has taken to get to this point, but that is because we have spoken extensively with valuable stakeholders such as the YMCA. My hon. Friend the Member for Walsall North (Eddie Hughes) told us about the incredible value of that organisation and others.

As has been said, the DWP, in conjunction with the DCLG, concluded a 12-week consultation on the supported housing sector earlier this year. As many Members have rightly suggested, it is absolutely vital that we listen to the concerns that the sector has raised, and that is precisely what we have been doing. We welcome the input that we have received in this consultation—the views of the sector, local government and other stakeholders—as well as the excellent joint report from the Work and Pensions Committee and the Communities and Local Government Committee. I add my congratulations to both Committees on their work. We have been carefully taking stock of these views, considering the recommendations and continuing our extensive conversation with the sector. We have done so to make sure that we get the detail right before making an announcement and that the services provided are as good as they can be.

This morning’s announcement by the Prime Minister has already been embraced by the sector, which has acknowledged that we are listening to their concerns. The chief executive of the National Housing Federation has said:

“Things are really starting to change and it is great to see social housing getting the right kind of attention it deserves.”

The chief executive of the Chartered Institute of Housing has also welcomed the announcement, suggesting that the Government have

“clearly listened to the concerns of housing professionals across the UK”.

Several Members have raised concerns about how confidence in future funding is having an impact on the supply of supported housing. As I believe has been made very clear during this debate, we are absolutely determined to achieve our goal of ensuring a long-term sustainable future for the whole supported housing sector. Indeed, the National Housing Federation has welcomed the Prime Minister’s recent announcements on housing, which demonstrate that social housing and house building are firmly at the top of the Government’s agenda.

We understand that the sector needs certainty to help it to continue to plan and deliver much-needed new supported housing, including sheltered housing for older people. We need to inject confidence into a sector that is in need of clarity about the future arrangements and to reignite the stalled supply as soon as possible. However, it was vital not to be too hasty or rushed in reaching this decision. We have taken time to get things right and to take into account voices from the sector to ensure that this is sustainable in the long term and protects those who are most vulnerable and who most need our support.

The Government have a good track record in safeguarding supported housing and boosting new supply. Since 2011, we have delivered 27,000 units of specialist and general housing for disabled, vulnerable and older people. We announced £400 million of funding in the spending review to deliver new specialist affordable homes for the vulnerable, elderly or those with disabilities. In addition, there will be more specialised homes funded by the Department of Health.

[Paul Farrelly]

In my area of Newcastle-under-Lyme, our local housing association, Aspire, is not building affordable or supported housing at all. It is developing in higher property price areas in Cheshire to recycle the money to support its existing estates because of the squeeze on its finances and income from Government policies. Is there not something fundamentally wrong when a local housing association cannot build affordable housing at all?

[Caroline Dinenage]

That flies in the face of what the National Housing Federation said; the Government are giving confidence to suppliers to build into the future.

As my hon. Friend the Member for St Ives (Derek Thomas) said, we recognise and celebrate the diversity of the supported housing sector and we are reflecting this in the design of the reformed funding model. We want to ensure that the model is flexible and responsive to meet the variety of needs and demands placed on it for such a diverse sector and client base. Across the Government, we have considered the needs of all supported housing groups, including those with learning difficulties, physical and sensory disabilities and mental health problems, older people and those experiencing homelessness and seeking refuge from domestic abuse. We are working hard to ensure that the funding model reflects the unique range of provision in the supported housing sector, and we are listening to the sector to make sure we get that right. I believe that that will be seen in our response to the consultation, and we have always been clear that we are committed to developing a separate model that will work for short-term accommodation.

I want to address some of the concerns raised today about short-term supported and emergency housing such as hostels and refuges, which play a vital role in providing consistent, high-quality support for many vulnerable people who have experienced or are experiencing a crisis, such as fleeing domestic abuse. That was mentioned by a number of Members from all parties. We have always been very clear that we are committed to developing a separate funding model that will work well for people requiring help from these types of accommodation. As a former Minister for Equalities, I carry on my passion for tackling domestic abuse, which is a key priority for this Government.

We fully support the valuable work carried out by women’s refuges and other supported accommodation providers, and we are fully committed to ensuring that victims of domestic abuse are not turned away from the support that they need. Since 2014, we have invested £33.5 million in services to support victims, and the number of beds for victims of domestic violence has gone up. I want to be unambiguous about this: everyone who uses short-term supported and emergency housing such as hostels and refuges and who is eligible to have their housing costs met by housing benefit under the current system will continue to have these costs met through any new funding model for short-term accommodation.

My hon. Friend the Member for Walsall North mentioned the YMCA setting, social enterprises and adopting to change. We welcomed his valuable and characteristically positive addition to the debate, and that is exactly the kind of innovative and flexible approach that the Government promote. It is absolutely right that we should do our best in government to listen to and support the sector, but we should also take the opportunity to recognise the tireless work and groundbreaking approaches, such as that which he identified today.

We have listened to the views of the sector on sheltered and extra care housing through its response to our consultation, through its participation in our task and finish groups and through its involvement in the joint work of the Communities and Local Government and Work and Pensions Committees. We have heard the concerns that it has raised, and it is clear that an alternative model is required to secure supply. The Government recognise that supported housing helps many vulnerable people to stand on their own feet and lead independent lives. We have done a lot of work to understand the needs of individuals who live in long-term supported housing. We are committed to protecting and boosting the provision of supported and older people’s sheltered housing and to ensuring we get the new model right to ensure that that housing is funded sustainably in the long term.

The Government are clear that everyone who would be eligible under the current system to have their supported housing costs met by housing benefit will continue to have their housing costs met under the new funding model. We are committed to protecting provision of supported and older people’s sheltered housing to ensure that we get the new model right and that funding for supported housing is sustainable.

The Government’s intention is to find the best means to deliver improvements in quality, oversight and value for money, while recognising the need to give appropriate consideration to the concerns raised by the sector through the consultation and the Select Committees. I can confirm that we will be able to announce the plans for supported housing next week and answer many more of the questions that hon. Members have raised. I am convinced that, when the announcement is made, it will be clear that we have listened and properly consulted and considered the concerns of all.

Question put and agreed to.

Resolved,

That this House calls on the Government to halt its current plans to cap, at the local housing allowance rate, help with housing costs for tenants of supported housing and to adopt instead a system which safeguards the long-term future and funding of supported housing, building on the recommendations of the First Joint Report of the Communities and Local Government and Work and Pensions Committees of Session 2016-17, Future of supported housing, HC 867.

[John Healey (Wentworth and Dearne) (Lab)]

On a point of order, Mr Deputy Speaker. After the Prime Minister made an announcement at Prime Minister’s questions, ahead of our Opposition day debate today, that the Government will drop their plans for a crude cap and cuts to supported housing, have you or Mr Speaker had any indication that Ministers, when they make the full announcement next week, which the Minister has just mentioned, will come and make the announcement to the House with an oral statement? In the light of the unanimous support for our motion tonight and the widespread concern about the Government’s plans over the past two years on both sides of the House and across the sector, it is clearly really important that Members can question Ministers on the announcement in full that they make.

Social Security Support for Kinship Carers

Caroline Dinenage Excerpts

Wednesday 18th October 2017 Westminster Hall

[The Parliamentary Under-Secretary of State for Work and Pensions (Caroline Dinenage)]

It is a great pleasure to serve under your chairmanship, Mr Owen. I congratulate the hon. Member for Great Grimsby (Melanie Onn) on securing this important debate on social security support for kinship carers. She has raised a number of important issues and I am glad that she has taken the opportunity to highlight the invaluable work that kinship carers do. They truly are the unsung heroes, stepping in and offering care to children when they most need it.

Let me start by assuring the hon. Lady that the Government acknowledge the immense value of care given by kinship carers, be they family or friends looking after children whose parents are unable to provide the necessary care themselves, or non-parent carers supporting children who would otherwise be in local authority care. As she said, they save the public purse an awful lot of money; but more than that, the value of the stability and care that they give is probably immeasurable. A number of the issues she raised in passing, as well as the Family Rights Group and Kinship Care Alliance report that she referred to, cover a multitude of Departments. I will take a closer look at that report and recommend it to my colleagues from across different Departments.

I am grateful that the hon. Lady raised the specific issues of some of her constituents and others. Those individuals, through the selfless gesture that they make, play such a vital role in ensuring that children are raised in a caring family: an environment that gives them the stability they need to grow and develop. As a society, we owe them a massive debt of gratitude. In particular, she raised the story of her constituent, Alyssa, who raised three of her siblings from a very young age, and I understand that she gave up her own studies to do that. She has clearly done a remarkable job, given that one is now making her own way through university. She should be the subject of all our praise and thanks for that enormous act of self-sacrifice at such a young age—it must have been terrifying for her.

The Government work to ensure that the role of kinship carers is recognised and supported by ensuring access to the same support as parents within the benefits system in relation to child benefit, universal credit, child tax credits and other means-tested benefits. I am sure the hon. Lady will understand that the benefits administered by the Department for Work and Pensions are designed to try to suit the majority of claimants and cannot always be tailored to every individual circumstance, as that would introduce difficult and often subjective decisions into what are intended to be simple, streamlined schemes. However, I assure her that the Government recognise that there are times when the rules may not seem to have the flexibility that one would want, and this is clearly one of those times.

The hon. Lady has raised a number of important issues. This is something I will look more closely at and, as with all our policies, the Department will continue to keep the policy under review.

With regard to the Sure Start maternity grant, payment is restricted to just the one child under 16 in the family. We believe it is important to focus support where it is needed most. That is why we took that decision. The expenses related to the first child—buying all the necessary paraphernalia that come with a baby—are usually greater than those for subsequent children. That means that kinship carers of children under the age of 16 who then have their first baby are usually not eligible for the grant for that baby. However, as the hon. Lady rightly said, the circumstances of kinship carers vary, and it is not possible to legislate for every specific circumstance. As she highlighted, sometimes children taken into kinship care are not infants and did not come with all the necessary baby bits and bobs. That is why I take on board very much what she said and am happy to look at the issues she raised to do with that specific circumstance.

The hon. Lady also raised the Government’s policy to limit tax credits to two children. I would like quickly to touch on the rationale for the policy to provide support for a maximum of two children, as that might help to explain its impact on kinship carers as well as other claimants. As we know, a benefits structure that adjusts automatically to family size is not fair on families supporting themselves solely through work, who do not usually see their incomes rise when they have more children. We know that households need to think carefully about whether they are financially prepared to support an additional child without relying on income-related benefits. The Government’s view is that providing support to a maximum of two children or qualifying young persons in universal credit and child tax credit will ensure fairness between claimants on the one hand and, on the other, those taxpayers who support themselves solely through work. We believe that all children should be treated equally, and the decision to have more children should be taken based on whether the claimant can afford to support additional children.

However, I must stress that the Government recognise that some parents and carers are not able to make choices about the number of children in their family, and kinship carers often step up to the plate unexpectedly. That is why we have developed a number of exceptions for third and subsequent children to the maximum support on entitlement. One of those exceptions applies to parents who already have two children in their household and make the selfless decision to take on the responsibility of kinship care for children who would otherwise be at risk of entering the care system.

Claimants will still be entitled to an additional amount for any disabled children, regardless of the total number of children in the household. It is also worth noting that tax-free childcare is available to households where all parents are earning at least the equivalent of 16 hours at the national minimum wage per week. Households can receive support for any number of eligible children from age zero to 12, or to age 17 where the child is disabled. Child benefit will continue to be paid regardless of family size, as that is the basis of the Government’s contribution towards the cost of bringing up a child.

I reassure the hon. Lady that the Government recognise the pivotal role played by kinship carers. Our welfare policies are designed to ensure fairness between families supporting themselves solely through work and those on income-related benefits and to support those most in need. She has raised a number of important issues and the Department will give the policies discussed today and their impact on kinship carers every consideration.

Question put and agreed to.

Oral Answers to Questions

Caroline Dinenage Excerpts

Monday 9th October 2017 Commons Chamber

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

I am sure that the Secretary of State and everyone in this House would agree that parents should fulfil their financial obligations to their children. But do they agree that much more should be done to combat those who are shamefully using legal loopholes to avoid paying child maintenance?

[The Parliamentary Under-Secretary of State for Work and Pensions (Caroline Dinenage)]

Where a parent fails to pay on time or in full, we aim to take immediate action to recover that debt and to re-establish compliance. Where someone’s personal income appears suspicious in any way, caseworkers may refer that case to our newly beefed-up financial investigations unit.

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

I wrote to the Secretary of State on Friday about my constituent, Danielle Brown, who lost her leg at the age of two. She has now lost her PIP and her Motability car. Will the Minister look into this case and assure me that I will get a reply as soon as possible?

--- Later in debate ---

[Ian Austin (Dudley North) (Lab)]

How much does the Secretary of State estimate is being paid out through housing benefit, or will be paid out under the housing-related costs of universal credit, for unfit accommodation in the private rented sector? All too often, I meet vulnerable tenants living in completely unfit accommodation. A huge amount of taxpayers’ money is being used to line the pockets of dodgy landlords. It is a complete and utter disgrace, and I would like to know what the Secretary of State’s estimate is of the size of the problem and what he is going to do about it.

[Caroline Dinenage]

We are always concerned about substandard rental accommodation, and we do keep in touch with the relevant bodies. This is something that is generally of concern to the Department, and it is something we will keep an eye on moving forward.

[Lilian Greenwood (Nottingham South) (Lab)]

The all-party parliamentary group on deafness recently heard compelling evidence about the disproportionate and damaging impact the cap on awards under the Access to Work scheme is having on people who use British sign language as their first language, with deaf people having job offers withdrawn, withdrawing from their roles and giving up on their careers. The Government say they are committed to improving disabled people’s opportunities at work, but this policy is destroying them. Will the Minister think again?