Fuel Duty
Caroline Dinenage Excerpts(3 days, 23 hours ago)
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Mr Holden
No, I have already given way to the hon. Member.
We in the Opposition are all praying for a U-turn on the fuel duty policy, which would be very welcome. We would rather that they had never come up with the policy in the first place because, just as with the previous 16 U-turns, we argued against each policy before the Government did it, and they then had to U-turn on them. Just as on the family farms tax, on which they have partially U-turned, the grooming gangs, on which they have U-turned, and winter fuel, on which they have had to U-turn, after sticking the boot in, we really hope they will think again about this, but I am not holding much store by that.
What is really worrying me and families and up and down the country, as well as Opposition Members as they go back to their constituents, is that people are facing cost of living pressures right across the board. Those running businesses are really having to make decisions about whether they hire another person or in many cases, sadly, let people go because of the taxes already imposed by this Government. This is just another tax—another tax on businesses, pensioners and families up and down the country.
Dame Caroline Dinenage (Gosport) (Con)
Gosport is not a rural area, but it is reportedly the largest town in the UK without a railway, so people rely on their cars to get around. We all know that the Chancellor cannot control events in the middle east, but being in government is about making choices. Does my right hon. Friend agree that the choice is whether we are going to keep punishing traders who have already had so much punishment from this Government, and keep punishing people who do not have a choice about using their cars?
Mr Holden
My hon. Friend makes the really important point that this is about choices. She is also right that many people do not have such a choice about their cars, and nobody has a choice about going to a shop to buy food, which will be delivered by some form of road transport at some point. So everybody will be paying for Labour’s road tax or fuel duty increases, and that is what we are opposing today.
My hon. Friend the Member for Gosport (Dame Caroline Dinenage) makes a broader point on the choices that this Government are making about on whose backs they are balancing the books. They are choosing to balance the books on the backs of working Britain. Businesses up and down the country are facing tax after tax and new bill after new bill, in the Government’s relentless pursuit to do our country down and throttle anything that seems to give a half chance of delivering growth, all to pay for a ballooning welfare bill. They would put Dumbo to shame, because they do not have the guts to reduce welfare—heaven forbid—and they do not even have the guts to try to slow the pace of the increase in welfare.
We voted against tax hikes in the Budget because they are the wrong thing to do for growth in our country and for families in our country. We are voting against a tax hike today because of the circumstances now. Especially with an international environment of soaring prices, to saddle motorists with an extra hike in the cost of getting around is the wrong thing to do. That is why the Leader of the Opposition tabled our motion, and why we are urging right hon. and hon. Members across this House to say no to Labour’s hikes on fuel duty.
Welfare Spending
Caroline Dinenage Excerpts(8 months ago)
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Helen Whately
I will first make a little progress, but then I will be happy to give way to the hon. Lady.
Last week’s welfare fiasco saw a Bill that was meant to save money become a Bill that will cost money. We have also seen the fiasco of the winter fuel payments cut, with the Government having to row back on their tough talk because taking money from low-income pensioners is not, in fact, the way to make savings. And now we are debating the future of the two-child limit, which Cabinet Ministers, including the Prime Minister, have indicated is the next tough choice that they are not going to make.
Dame Caroline Dinenage (Gosport) (Con)
My hon. Friend talks about tough choices. Does she agree that families that are in work make tough choices every single day, about what they can afford and how they spend their money, and that those who receive benefits should really have to make the same tough choices?
Helen Whately
My hon. Friend makes an important and thoughtful point. Many families, whether they are living off benefits or in work, would like to have more children but have to make these difficult choices about what they can afford. This is a point about fairness.
I know that many Labour Members passionately believe that the limit should go, and they will make arguments today about child poverty as if they were the only ones who care about it—[Interruption.] For the avoidance of doubt, that is not true. Our difference of opinion is about what to do about it. I think all of us are at a loss to know what the Prime Minister believes in. By contrast, we know what we believe in and we know why we are here. That is why we have brought forward this debate on the two-child limit, because somebody has to make the case for fiscal responsibility, for living within our means, for fairness, for ensuring that work pays and for keeping the two-child cap.
I want to be clear that all of us—including those of us on the Opposition Benches—want children to have the best possible start in life. Let us also be clear about what the two-child limit actually is, because I note that some Members from other parties are confused. The two-child limit restricts the amount of additional universal credit that families receive for having children to the first two children only, with some sensible exceptions, such as for twins or non-consensual conception. The cap does not apply to child benefit, which is available to all families with incomes of up to £80,000 for every child, regardless of the number of children in a family.
Women’s State Pension Age: Financial Redress
Caroline Dinenage Excerpts(8 months, 2 weeks ago)
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Rebecca Long Bailey (Salford) (Lab) [R]
I beg to move,
That this House notes the Parliamentary and Health Service Ombudsman’s (PHSO) report on Women’s State Pension Age, HC 638, published in March 2024, which found that maladministration in the Department for Work and Pensions (DWP) communication about the Pensions Act 1995 resulted in complainants losing opportunities to make informed decisions about some things and to do some things differently, and diminished their sense of personal autonomy and financial control; further notes that there will likely be a significant number of women born in the 1950s who have suffered injustice because of maladministration in DWP’s communication about the Pensions Act 1995; and also notes that, given the scale of the impact of DWP’s maladministration, and the urgent need for a remedy, the PHSO took the rare but necessary step of asking Parliament to intervene, laying their report before Parliament under section 10(3) of the Parliamentary Commissioner Act 1967 and asked Parliament to identify a mechanism for providing appropriate remedy for those who have suffered injustice.
Following last night’s horrific news, I just want to send my deepest condolences to the family of Diogo Jota and his brother, and to the city of Liverpool.
I would like to pay tribute to the thousands of fearless women who have been campaigning relentlessly to secure justice on this matter for decades now, and to remember all those women who have died waiting for justice. My personal thanks go to the campaign groups who have provided briefings to the all-party parliamentary group on state pension inequality for women, including CASPI, WASPI, WASPI 2018, CEDAWinLAW, Pension Partners 4 Justice, Pension United, WASPI Scotland and 1950s Women of Wales, as well as many individuals who have been in touch. My thanks also go to the Backbench Business Committee for allowing this debate, and to numerous colleagues across the House who have been instrumental in campaigning for the women and in securing today’s debate.
As Lord Bryn Davies, co-chair of the APPG and a pensions expert, stated:
“The UK’s pension system was designed for men, by men. It systematically favoured men, with the result that they received higher state pensions and even higher private pensions. Hence, the gender pensions gap. The only feature that favoured women was that the National Insurance pension was paid to women from aged 60, whereas it was paid to men from aged 65.”
But in 2010, that single advantage was taken away, without consultation and without regard to the other factors that meant women of that era were worse off financially and ended up with worse pensions. That was bad enough. What was worse, though, is that they were not even told about it. Many women were left destitute; some even lost their homes.
These women were already disadvantaged and discriminated against. They began work in an era when it was legal to pay female workers less than men, and often stepped out of the workforce to raise families or look after loved ones because there was no wraparound care, losing out on not only paying stamps but paying into a private pension. Overnight, these disgraceful changes were dumped on them without their knowledge. Many had already handed in their notice at work, and in many cases they were forced to exist on meagre welfare benefits that left them living a hand-to-mouth existence.
Hundreds of women began to raise the alarm. When the previous Government failed to take action, they escalated their complaints to the Parliamentary and Health Service Ombudsman, which began a lengthy investigation spanning years, although it chose to focus on a sample of only six cases. Its report, published in March last year, uncovered internal Department for Work and Pensions memos from 2005 showing that officials knew that considerable numbers of women were unaware of the planned changes. While many women feel that the report did not go far enough on suggested redress, and that it was too limited in the cases that it assessed, it confirmed what the women already knew: that they had suffered injustice, that the DWP was guilty of maladministration in failing to properly communicate changes, and that redress was duly owed.
When the Secretary of State for Work and Pensions responded to the report in December, there was genuine hope that the scandal would finally end—it was there, in black and white. Sadly, it did not, and women were left shocked and angry. While the Government agreed with the finding of maladministration and apologised, no redress would be forthcoming. Further, contrary to the ombudsman, they actually felt that the majority of women did know about changes to their pension age, based on Department for Work and Pensions research, and that sending the women letters would not have been effective, which I am sure most people would agree is bizarre. It is pretty effective when people receive a bill addressed to them through their door, or a letter about a hospital appointment. It is also pretty effective on the very rare but joyous occasion that His Majesty’s Revenue and Customs gives people a tax rebate cheque. So, honestly, why would 1950s-born women have actively refused to open letters with their name on from the DWP? It makes no sense.
Dame Caroline Dinenage (Gosport) (Con)
The hon. Lady is making a powerful speech. What she says reflects some of the conversations I have had with WASPI women in my constituency about not only the distress this has caused them, but how so many of them simply did not receive the correspondence that they have been told they did receive over the years about the financial situation that was coming down the track. The hon. Lady pointed out that the PHSO report found maladministration, and that despite promising to address it in all their communications before the general election, the Government said that it was too burdensome to compensate on a flat scale. When that announcement was made, I asked the Secretary of State what else could be done to support these women, many of whom have really struggled as a result of this decision. I did not receive a particularly forthcoming response, so I wonder whether the hon. Lady has had any more joy in finding out what the Government are going to do to support these women if they cannot bring forward the financial support on which so many of them have missed out.
Rebecca Long Bailey
The hon. Lady has been a formidable campaigner for these women. In answer to her question, no, I have not had any joyous information from the Government as of yet, which is why we are here today. I will outline why I think the Government’s statement and response to the ombudsman’s report was misinformed. While I understand the financial difficulties the Government face, options are available, and cost should never be a barrier to addressing injustice.
Many of the campaign groups are clear that the statistics used by Government to justify no redress are misquoted and misinformed, painting a picture that is completely at odds with the experiences of thousands of impacted women, as the hon. Member for Gosport (Dame Caroline Dinenage) has outlined, the ombudsman’s findings and the results of independent research. Research by the Department for Work and Pensions in 2003 showed that only 43% of all women affected by the changes knew that their state pension age was changing. The research itself even comments that:
“This low figure provides cause for concern and shows that information about the increase in SPA is not reaching the group of individuals who arguably have the greatest need to be informed.”
Independent research, including a focus group study by Age UK from as late as 2011, has also found that many women believed that they were still going to retire with a state pension at 60.
Further, the ombudsman’s report also focused on the continued failure of the DWP to recognise and respond to this research and feedback. Indeed, this point was flagged by the Work and Pensions Committee in 2013 and the National Audit Office in 2016, but the DWP still failed to take any meaningful action.
Welfare Reform
Caroline Dinenage Excerpts(1 year ago)
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Liz Kendall
I have great respect for my hon. Friend, but let me say this to him. I have spent years chairing Feeding Leicester, the programme to end hunger in my city, and I know that I can look my constituents in the eye and say to them: I know that getting more people into better paid jobs is the key to their future success, and I know that dealing with their mental health problems, which are so prevalent, is essential. If someone can work, we will give them the help to get back on their feet, because that is the long-term route to tackling poverty and tackling inequality, which is what this Labour party is all about.
Dame Caroline Dinenage (Gosport) (Con)
Like the Secretary of State, I was elected in 2010, and I need to tell her that our recollections differ. When I came into this role, after 13 years of Labour government, 7.5% of young people in the Gosport constituency were not in education, employment or training. That number was down to 3% last year. Since Labour has taken office, 83,000 more people across this country of working age are now unemployed. Businesses in the sectors that take on so many young people across our constituencies, from adult social care to childcare to hair and beauty, are telling me that they are not taking on more staff as a result of her Chancellor’s changes to national insurance contributions. Surely the two are mutually incompatible.
Liz Kendall
Unless we cut waiting times and waiting lists in the NHS, people cannot get back to health and back to work—many employers have said to me that they are deeply concerned about that—and that is the reason we are investing an extra £26 billion into the NHS. We are dealing with precisely those key sectors—health and social care, construction and so on—where employers want people with the skills to do those jobs. We are overhauling our approach in DWP and setting up sector-based work academy programmes specifically tailored to employers’ needs. I know there is more we need to do to work with employers and help them get people back into work, and that is what this Government will deliver.
Women’s State Pension Age Communication: PHSO Report
Caroline Dinenage Excerpts(1 year, 3 months ago)
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Dame Caroline Dinenage (Gosport) (Con)
The Parliamentary and Health Service Ombudsman’s report says what many WASPI women across my constituency have been saying for years, which is that between 2005 and 2007 the DWP and the last Labour Government let them down. I am therefore grateful to the Secretary of State for her apology, but that will come as cold comfort to those who are in this situation in the face of no financial compensation. If I am right in what I hear, she says mitigation is too complicated and that it is someone else’s fault. That will be no comfort to those impacted. What conversations does the Secretary of State plan to have with the WASPI women to see what more support can be put in place for those most impacted?
Liz Kendall
I met the WASPI campaign in opposition when I was appointed shadow Work and Pensions Minister. The Minister for Pensions was the first of her kind to meet the WASPI campaign for eight years, and she is happy to meet them again. I say to the hon. Lady, who feels very deeply about the issue, that we will learn all the lessons from what went wrong with the delay in sending the letters out, but we do not agree that even if we had done that, they would have made the difference that the ombudsman claims. This is not about the matter being too complicated; we do not believe that, when 90% of women aged 45 to 54 knew the state pension age was increasing, a flat-rate compensation scheme costing up to £10.5 billion would be a fair or proportionate use of taxpayers’ money.
Oral Answers to Questions
Caroline Dinenage Excerpts(3 years, 9 months ago)
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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(8 years, 2 months ago)
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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(8 years, 3 months ago)
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Martin Vickers (Cleethorpes) (Con)
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.
Chris Elmore (Ogmore) (Lab)
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)
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)
Imran Hussain (Bradford East) (Lab)
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(8 years, 3 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
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.
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—
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(8 years, 3 months ago)
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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]