DWP Policies and Low-income Households

Caroline Nokes Excerpts

Tuesday 17th January 2017 Commons Chamber

[The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)]

I wish to reiterate the thanks of the Minister for Employment, my hon. Friend the Member for East Hampshire (Damian Hinds), to those Members who secured today’s important and interesting debate. I also wish to thank all Members who have contributed. I am very conscious that I am somewhat short of time, so if I do not have the opportunity to respond to every point that Members have made in this debate, I will certainly seek to do so in writing.

For Scottish Members present, I am aware that there is another debate tomorrow in Westminster Hall in which we are discussing the DWP estate. I am sure that that will be an opportunity for us to discuss in more detail the proposals in Glasgow.

This Government are committed to building a country that works for everyone, which means taking action to help the most disadvantaged. We know—many Members have mentioned this today—that our approaches need to be joined up across Government to enable us effectively to support and transform the lives of the most vulnerable. That is why we have committed to bringing forward a social justice Green Paper this year, which will identify and address the root causes of poverty and build on the two new statutory indicators brought in through the Welfare Reform and Work Act 2016. That will drive real action on workless households and educational attainment—the two areas that can make the biggest difference to disadvantaged children and their families.

The Green Paper on social justice will demonstrate our commitment to the Prime Minister’s ambition of tackling poverty and disadvantage and delivering real social reform. As my right hon. Friend the Prime Minister said on the steps of Downing Street, she will fight against the injustices that we see in our society. In doing that, we will do everything we can to give people more control over their lives. That is why the Prime Minister has established a new Social Reform Cabinet Committee, bringing together the majority of Government Departments to deliver social reform. The Prime Minister has made it very clear that tackling poverty and disadvantage will be a priority for this Government.

The evidence is clear and we as a Government have been clear that work is the best route out of poverty. Working age adults in non-working families are almost four times more likely to be living on a low income than those who work, which is why the Government’s approach has been about recognising the value and importance of work, making work pay and supporting people into work while protecting the most vulnerable in society. Our reforms are working and transforming lives. The most recent labour market statistics show that we have a near record number of people in work: more than 2.7 million more than in 2010. In the past year we have seen nearly 250,000 more disabled people in work, more than 200,000 more women and more than 150,000 more BME people. That is a record of which we are rightly proud, but we know that there is more to do to realise our ambition of an economy that works for everyone.

I reiterate the comments of my hon. Friend the Minister for Employment: it is vital that universal credit roll-out is delivered safely and securely so that claimants receive the support they need. As he mentioned, reforms such as universal credit are revolutionising relationships between claimants and work coaches, ensuring that the support we offer is more personalised and better suited to the needs of claimants.

There is no doubt that universal credit has been a large and complex programme, which is why we have rolled it out slowly, starting small to begin with and enabling our own DWP staff to be involved in the roll-out through a test-and-learn programme so that we could ensure that as the programme expanded mistakes were ironed out. Our DWP staff are also absolutely crucial to the role of universal credit in encouraging people not just into work but into more work once they have found employment. That is an entirely different relationship.

I have spent the past six months as a Minister visiting Jobcentre Plus centres around the country and speaking with work coaches. Whether in Newcastle, which saw the initial roll-out of full service UC, or in coastal towns such as Eastbourne, I have seen at first hand the value of this approach in transforming lives and I am immensely proud of the commitment I have witnessed from work coaches up and down the country. Indeed, in Oldham I saw some of the most enthusiastic and inspired job coaches that I have seen anywhere in the country, who were absolutely enthusiastic about meeting the claimants and helping them through the journey into more work

The SNP’s call to suspend universal credit, which demonstrates a complete misunderstanding of its transformational benefits, arguably shows a lack of concern for the millions of working households that will benefit from a system that helps people into work, empowering them to transform their own lives rather than leaving them trapped in benefit dependency. As some Members might know, my hon. Friend the Minister for Employment is travelling to Scotland this week to meet MSPs and Ministers in the Scottish Government to discuss with them the issues of the jobcentres in Glasgow.

We have had a lot of discussion about the impact on disability employment, and I am very clear that when a jobcentre closes, that can provide opportunities to enable DWP staff to respond to the personal circumstance of claimants. Work coaches can personalise and tailor the support they provide and can visit claimants in their own home. Claimants do not have to travel to specific jobcentres but can nominate the ones they wish to use. We want a flexible and dynamic welfare state that embraces the new opportunities of technology and the expertise and joined-up services that our local partnership organisations have.

This Government are clear that the best way to help people to pay the rent and live independent lives is to help them into work. With my noble Friend Lord Freud, the former Minister for Welfare Reform, I met arm’s length management organisations to talk about UC and the issues that they raised with us about rent arrears. Our research shows that the majority of UC claimants are comfortable managing their budgets and after four months the proportion of UC claimants we surveyed who were in arrears at the start of their claim had fallen by a third.

To conclude, let me reiterate that the Government’s commitment to an economy and society that works for all is beyond doubt. I want to reassure hon. Members that the Government are committed to fighting against the injustices of society and ensuring that everyone has the right opportunities to fulfil their potential. Households in the lowest income bracket are now much more likely to be in employment than they were at the start of the previous Parliament. In the bottom half of the income distribution, the percentage of families who were in work increased from 60.3% in 2010-11 to 65.7% in 2014-15—

[Mike Weir (Angus) (SNP)]

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

Question put forthwith, That the Question be now put.

Question agreed to.

Question put accordingly (Standing Order No. 31(2)), That the original words stand part of the Question.