Supported Housing
Caroline Nokes Excerpts(8 years ago)
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The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)
It is a pleasure to serve under your chairmanship, Mr Howarth. I add my congratulations to those offered to the hon. Member for Bermondsey and Old Southwark (Neil Coyle) on securing this important debate. Prior to his election, the hon. Gentleman worked in the field of disability and he continues to be an important campaigner for disabled people in his role as a Member of Parliament. He will know from his experience—we have heard a little of it this morning—how broad the supported housing sector is. He therefore has an excellent insight into the challenges of finding a proposal that will work across the whole sector.
As we have heard, supported housing is vital for many vulnerable groups. Whether additional support is needed for a short time to help someone recover from difficulties or setbacks in life, or whether it represents a longer-term arrangement, the valuable role that such accommodation plays is clear. Last week we published our evidence review of the supported housing sector, which we commissioned jointly with the Department for Communities and Local Government. The review has given us an important indication of the scale, scope and, indeed, cost of the sector across Great Britain. It estimates that there are about 651,500 supported housing units, predominantly provided by housing associations, local authorities and charities. The majority of the units—about 71%—are for older people, and the remainder for those of working age. It is estimated that at the end of 2015, just over £4 billion of housing benefit was being spent annually on the sector in Great Britain. That amounts to 17% of the total departmental expenditure on housing support. The review also provides an indicative estimate of just over £2 billion per annum for additional funding from other sources in addition to housing benefit in Great Britain. That was largely made up of local authority spending.
The focus of debate today is specifically the effect of the Government’s proposals on supported housing. The Government are committed not only to protecting but to boosting the supply of such housing, and ensuring that it provides value for money and works for those who use it, as well as those who pay for it. As Members will be aware, we have announced that a new funding model will be introduced for supported housing when the local housing allowance rates are extended to the social rented sector from April 2019. In future, housing costs up to the level of the relevant LHA rate will be met through either housing benefit or universal credit. Funding for the additional costs of providing supported housing in excess of that amount will be met through local funding, which is to be devolved to local authorities in England and to the devolved Administrations.
Neil Coyle
I think three different Members have asked about the potential for a pilot of the new funding model. Will the Minister clarify whether there will be one?
Caroline Nokes
The hon. Gentleman must not fret; I will come to that later. Many comments were made by hon. Members and I will try to respond to most of them, but I am conscious that time may not allow for all. I will allow the hon. Gentleman time to come in at the end as well.
As hon. Members have heard, the Department for Communities and Local Government and my Department last week jointly launched a consultation on the detail and implementation of the new sustainable funding model. I welcome this debate as an important opportunity to draw Members’ attention to that. I will turn to the specific points raised by hon. Members in order. I hope to get to every point, but if time does not permit, I will write to hon. Members to clarify a few points.
My hon. Friend the Member for Taunton Deane (Rebecca Pow) and the hon. Members for South Down (Ms Ritchie) and for Bermondsey and Old Southwark mentioned local funding and why it is important that local authorities and devolved Administrations are going to be involved. I absolutely believe that local authorities are best placed to make decisions about how to support vulnerable people in their own areas. We heard about location from my hon. Friend the Member for Waveney (Peter Aldous) and the hon. Member for South Down, and they are right that it is important. However, it is also about understanding local need and being able to reflect that in the most appropriate type of provision.
The hon. Member for Bermondsey and Old Southwark mentioned disabled people, and he was right to do so. As he will know, disability spending will be higher every year to 2020 than it was in 2010. He also spoke of the types of people living in supported accommodation and, like me, he celebrates the numbers of young disabled people who are both living longer and wishing, quite understandably, to live more independently. He is right to point out that that is also a challenge, but it is one that we are determined to rise to.
Likewise, we have a growing elderly population. At the start of the debate, the hon. Gentleman outlined some percentages of individuals living in supported accommodation and what their particular needs might be. I emphasise that people do not necessarily have single needs. We have an ageing population, and as people grow older, their needs tend to become more acute and they tend to have more of them. It is important that we have a system that enables those with really quite intense needs to live independently for as long as they can and, indeed, for as long as they wish to.
Under the Care Act 2014, local authorities have a general duty to promote an individual’s wellbeing when carrying out their care and support functions. Through the consultation, we will be seeking views on whether further protections may be required to ensure that all relevant client groups can gain appropriate access to funding, including those without existing statutory duties.
I can reassure the hon. Gentleman that Departments across Government have worked closely together on the proposals and will continue to do so. They include the Department for Work and Pensions, the Department for Communities and Local Government, the Department of Health, the Ministry of Justice, the Department for Education and the Home Office. We are also working with colleagues in the devolved Administrations.
We have to make it clear that this is not about targeting individuals but about ensuring that we have a system in which the quality of services is central and there is a clear focus on outcomes for individuals. Under the current system, effective oversight of quality and value for money is not strong enough. Through the consultation, we will consider new approaches to transparency and oversight. Our aim should be consistent standards for everyone living in supported housing, alongside a clear demonstration to the taxpayer of value for money.
We want to ensure simplicity and a streamlined process, in line with the principles of universal credit, which a number of hon. Members have mentioned. We have a solid foundation of universal credit delivery in every Jobcentre Plus, and people who are moved from housing benefit to universal credit by the Department after April 2019, and whose overall benefit entitlement will be lower, will be protected in cash terms under transitional arrangements.
As I have said, we recognise the diversity of the supported housing sector, in terms of both the groups of people who live in such provision and the range of support needs that they may have. Officials and Ministers from across the DWP and DCLG have held extensive meetings with representatives from across the sector to understand the nuances of what a new model needs to deliver. They have asked specifically about additions in the consultation document, including what potential role additional statutory provisions or duties for local authorities in England could play, particularly in terms of protecting provision for specific vulnerable groups. The task and finish groups we are setting up to consider a number of detailed aspects of the model are being carefully put together to ensure that the breadth of the sector is represented. I think three hon. Members asked whether the Government would commit to piloting the new funding model. There will be shadow-year arrangements in place on the detail and allocation of funding, to allow for the full transition to the new model from April 2018.
During the last two financial years, the majority of local authorities spent less than 100% of their allocation of discretionary housing payment from central Government. The hon. Member for Bermondsey and Old Southwark has urged me not to dwell on DHP—this will be one of my few references to it—but we provided local authorities with £560 million in DHP funding in the last Parliament, and we have committed to a further £870 million over the next five years. The amount of top-up funding will be set on the basis of current projections for future need. Budgets for years beyond those already set will be determined in the usual way: at future spending reviews. I emphasise again that we want to work with the sector, through the consultation, to consider the wider strategic goals, such as responding to expected future growth in demand.
We see an opportunity here to do things differently, and to create a new strategic approach to commissioning supported housing. My hon. Friend the Member for St Ives (Derek Thomas) made a number of important points about doing better. He also raised the issue of the YMCA. I have been pleased to visit a number of projects since coming into this role in July, and I have long been a supporter of the work of the YMCA and have welcomed the input it has made to this process so far. I also visited a foyer in St Ives, and I absolutely agree with my hon. Friend on the importance, particularly for young people in the supported housing sector, of having move-on accommodation and increasing their level of education and training so that they have a better opportunity of employment.
The hon. Member for Linlithgow and East Falkirk (Martyn Day) spoke of Open Door in his constituency and its supported flat service. He made the valid point that there are very different accommodation landscapes across Scotland. We recognise that challenge, which is one of the reasons why we are devolving this responsibility to local authorities and to the Scottish Parliament.
The hon. Member for Banff and Buchan (Dr Whiteford) asked what contact I had had with Scottish members of the sector. In one of my roundtable meetings, I was pleased to have representatives from Scottish housing associations who came down to London to put their point of view across. I pay particular tribute to Scottish Women’s Aid, along with Women’s Aid nationally, which has been really constructive and engaged throughout this process, both with myself and with my noble Friend Lord Freud, who is the Minister for Welfare Reform. My hon. Friend the Member for St Ives mentioned a specific case in his constituency about students. I will be happy to meet him later to discuss that.
As we know, the Scottish and Welsh Governments have devolved responsibility for housing policy and already determine their own priorities. We anticipate that the Treasury will advise those Governments of their allocations at around the same time as the local authorities in England, which we expect will be in autumn 2017.
Caroline Nokes
I am sorry, but I really have no time left and I would like to leave a couple of minutes for the hon. Member for Bermondsey and Old Southwark to wind up—it will probably be 90 seconds now.
There is a specific point in the consultation about working with the sector to design an alternative model for refuges, which was raised by the hon. Member for Kilmarnock and Loudoun (Alan Brown), and the hon. Member for Strangford (Jim Shannon) said we should get that right. He is absolutely correct to say so. That is why we are not rushing this, and it is why I am pleased to be here today. My first debate as a Minister was on supported housing and that is the issue again today. Getting this right and ensuring that the consultation is as full and thorough as possible is an important part of my role, so that when we move forward with the new funding model, it works for those groups who hon. Members have rightly identified.
Social Security Benefit and Pension Up-rating 2017-18
Caroline Nokes Excerpts(8 years ago)
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The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)
Today I am announcing the proposed social security benefit and pension rates for 2017-18.1 have attached the table of rates to this statement and I will place a copy of the proposed benefit and pension rates 2017-18 in the House Library. The annual up-rating of benefits will take place for state pensions and most other benefits in the first full week of the tax year. In 2017, this will be the week beginning 10 April. A corresponding provision will be made in Northern Ireland.
The annual up-rating process takes into account a variety of measures:
The basic and new state pension will be increased by the Government’s ‘triple lock’ manifesto commitment, meaning that they will be up-rated in line with the highest of prices, earnings or 2.5%.
The pension credit standard minimum guarantee will be up-rated in line with the annual rise in earnings, as reflected in average weekly earnings (AWE).
Benefits linked to the additional costs of disability, and for carers, are increased by the annual rise in prices, as reflected in the consumer price index (CPI). A number of other elements—including non-dependant deductions (NDDs)—will also be up-rated 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 2017-18 from £110 to £116 a week.
[HCWS287]
Oral Answers to Questions
Caroline Nokes Excerpts(8 years, 1 month ago)
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Mr Alistair Carmichael (Orkney and Shetland) (LD)
The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)
The Government are committed to the creation of jobs and making work pay. We know that work is the best route out of poverty, and that is why our welfare reforms are focused on supporting people into work, rather than leaving them to rely on benefits.
Mr Carmichael
It is interesting that that answer does not necessarily address the question that I asked.
Last week, the Institute for Fiscal Studies highlighted the impact that weaker sterling will have on the cost of many of the essentials for which welfare benefits pay—clothing and food. It estimates that inflation for those items could be 2.7% next year. These circumstances were neither known nor anticipated when the decision was made to freeze benefits, so should they not themselves be the catalyst for a review of the decision?
Caroline Nokes
The right hon. Gentleman will be aware that inflation was in fact down last month. What is really important is that we support people who can work into jobs, and into better jobs—that is the whole premise behind universal credit. We know that getting people into work lifts them out of poverty. Our reforms include increasing the national living wage to £9 an hour by 2020, cutting income tax for more than 30 million people and, of course, the roll-out of universal credit.
Kerry McCarthy (Bristol East) (Lab)
Daniel Zeichner (Cambridge) (Lab)
The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)
In his written ministerial statement to the House of Commons on 15 September, the Secretary of State confirmed that from 2019-20 we will be introducing a new funding model for supported housing. I can also confirm that the Department for Work and Pensions, along with the Department for Communities and Local Government, will today publish a consultation document to develop the details that will underpin the new funding model, and the evidence review of supported housing in Great Britain.
Daniel Zeichner
One in five people affected by severe mental illness rely on supported housing. What discussions has the Minister had with the Department of Health about the effect that these policy changes have had on those who suffer from a mental illness?
Caroline Nokes
Colleagues from the DCLG and I have had extensive discussions with the supported housing sector since 15 September, and those conversations will continue now that the consultation document has been published.
Mike Freer (Finchley and Golders Green) (Con)
Kate Green (Stretford and Urmston) (Lab)
With around £4 billion of child support debts still outstanding and DWP’s own figures to March this year showing that 90,000 non-resident parents have not paid child support in full, will the Secretary of State tell the House where extra resources can be found to ensure that those parents who are due child maintenance for the care of their children receive it in full and on time?
The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)
We encourage paying parents to pay their maintenance on time and in full and to avoid the accrual of arrears. However, if a paying parent fails to pay on time, we aim to take immediate action to recover the debt and re-establish compliance. We have a range of strong enforcement powers, including seizing property and commitment to prison. We attempt to re-establish compliance initially through a one-off card payment, or negotiated agreement, deduction from the paying parent’s earnings, or deduction directly from an individual’s bank account. We are currently in the process of responding to a consultation run earlier this year on using powers to deduct from joint bank accounts.
Mr Steve Baker (Wycombe) (Con)
Caroline Nokes
The DWP has long recognised the challenges that some claimants, particularly those with multiple or complex needs, may face in the transition to universal credit. That is why we have developed the personal budgeting strategy to ensure that claimants have access to suitable financial products and money advice. For the small minority who need them, alternative payment arrangements can be set up. All APA cases are dealt with urgently and the majority of cases are processed within the first assessment period and within a five-day average clearance time.
Greg Mulholland (Leeds North West) (LD)
It was a long overdue victory for common sense that those people with chronic illnesses and long-term conditions will no longer be subject to the work capability assessment, but what about our brave veterans in receipt of war pensions? Why are they still subject to work capability assessments?
Fireworks: Licensing of Premises
Caroline Nokes Excerpts(8 years, 1 month ago)
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The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)
First, I extend my heartfelt sympathy to the families of Simon Hillier and Stewart Staples, whose lives were taken in the terrible incident at SP Plastics in the constituency of my hon. Friend the Member for Stafford (Jeremy Lefroy) on 30 October 2014. He will acknowledge that, as there is an ongoing police-led investigation, I will not be able to comment further on it in my response today. However, Health and Safety Executive officials would welcome the opportunity to meet my hon. Friend once the coroner’s inquest has concluded. That would provide an opportunity to consider the findings in full and whether any further work is needed to help reduce the risk of similar incidents happening again.
The prevention of accidents with the potential to cause extensive harm to workers, members of the public and the environment remains a key Government priority. In the past 10 years, there have tragically been three significant incidents involving firework-licensed sites where people have died. Although that is a relatively low number, the consequences can clearly be catastrophic and, as in the case of the incident in my hon. Friend’s constituency, devastating to the families involved. There is, therefore, no room for complacency.
I reassure my hon. Friend that the Government are committed to making sure that the health and safety requirements in this area are robust, to enable businesses to effectively control their risks. Businesses in Great Britain must have a licence to manufacture or store quantities or types of fireworks that are considered to be of higher hazard. That is in line with their potential for harm. As my hon. Friend has said, in Great Britain the responsibility for issuing licences to business that wish to store fireworks or, indeed, other explosives is split between the local licensing authorities, which can issue storage licences for 2 tonnes or less, and HSE, which issues storage licences for more than 2 tonnes as well as licences to manufacture.
I shall talk first about the role of local licensing authorities. If any business wishes to store 2 tonnes or less of fireworks, or of other explosives, it must apply for a licence from the appropriate local licensing authority. The authorities require applicants to be “fit people”, and for them to supply accurate details of the types of activities being carried out; the types of fireworks or other explosives being manufactured or stored; and plans of the site. That helps to ensure that the authorities have a clear picture of what businesses are requesting the licences for and whether there are any issues that need further consideration.
Local authorities can grant licences only where predetermined legal separation distances between explosives and people are met, making sure that potentially higher-hazard licensing requests are referred to the explosive specialists at HSE. The licensing authority can revoke a licence if there is a change in circumstances that means that the person holding the licence is no longer considered fit, or if the site is no longer suitable. In addition, to acquire, or acquire and keep, certain types of explosives, the licence holder must have an explosives certificate from the police.
My hon. Friend has asked whether it would be more appropriate for the fire service to issue licences for larger traders. Licences to store smaller quantities of fireworks are issued by local licensing authorities, which include local council trading standards, fire authorities and the police. Local authorities are best placed to make decisions about licensing, as they understand, and are able to reflect, local concerns and requirements. HSE offers guidance to local authorities to support them in their assessments, and works closely with partner licensing authorities to ensure that the licensing framework is applied appropriately.
In Great Britain, if any business wishes to manufacture explosives or to store more than 2 tonnes of fireworks or other explosives, it must apply for a licence from HSE, which requires details of the types of activities being carried out; the fireworks or explosives being manufactured or stored; plans of the site; and the proposed distances between the fireworks or other explosives and people. HSE’s explosives inspectorate considers the suitability of the applicant and of the site and whether the application can be progressed. HSE-issued licences must have the agreement of local authorities. That enables local communities to highlight local factors and make sure that specific information regarding location and proximities is considered.
My hon. Friend raises an interesting point about whether the levels of scrutiny are appropriate for the risks, and queries whether the 2-tonne threshold for HSE-issued licensing is correct. I am reminded, given the time of year, that the amount of explosive to be used in the gunpowder plot was 2.5 tonnes.
The thresholds for licensing come from a long-standing historical approach first introduced under the Explosives Act 1875. The thresholds were reviewed in 2002 and were considered still to be valid. I have extended to my hon. Friend the offer to meet the Health and Safety Executive to discuss such concerns, and I encourage him to do so. That will provide him with the opportunity to raise the issue of the 2-tonne threshold directly with the HSE.
My hon. Friend expressed concerns that business insurance policies for companies storing or manufacturing fireworks are not sufficient. Specifically, he suggested a requirement to protect third-party businesses from damages caused by any firework-related incident. Over the years, Parliament has legislated to require compulsory insurance for specific categories of risk, such as liabilities incurred by those using a motor vehicle on a road or in a public space. Businesses that employ staff are legally required to have employer liability compulsory insurance to provide redress for employees against bodily injury, illness or disease sustained in the course of employment. In addition to those requirements, businesses such as a firework display operator must have valid liability insurance.
The explosives and fireworks licensing framework focuses on the health, safety and security of the licensed premises and the impact on the surrounding community. Consequently, that health and safety legislation does not extend to cover business insurance requirements for licensed premises. However, I have already made the commitment that HSE officials would welcome the opportunity to meet my hon. Friend once the coroner’s inquest into the SP Fireworks incident has concluded to consider the findings in full.
My hon. Friend suggested that we should introduce a requirement for licensed businesses to inform neighbouring businesses of, and display, the fact that fireworks are stored on their premises. The HSE licence approval process requires businesses to notify local communities that they are applying for a licence. Applicants must publish a notice in a local paper stating: they are applying for a licence; they are inviting any representations on the application; and how the application may be inspected. Applicants should also write to or leaflet those affected. That helps to inform neighbouring businesses, communities and residential properties.
I note carefully the specific impacts that my hon. Friend described on companies in his constituency, including River Canal Rescue. He made some cogent arguments about what can go wrong when there is a lack of adequate information or separation from other businesses. I congratulate River Canal Rescue on its success in continuing to employ apprentices, which is such an important part of ensuring that our young people can go on to fulfilling careers. However, I have noted carefully what he said about the difficulties it has faced, which indeed many companies can face in emergency situations.
The Government strategy for regulators is set out in the regulators’ code, which requires regulators to ensure that they take proportionate approaches to regulation in line with the level of risk. The principles of the regulators’ code are applied by HSE’s explosives licensing team, with sites undergoing targeted interventions, including inspection. HSE has an effective enforcement policy statement and has developed an enforcement management model that aligns to the Government’s better regulation principles. Similarly, local licensing authorities also adopt a risk-based approach to targeting health and safety interventions. This principle-based framework is set out in the published local authority national code.
My hon. Friend has suggested that bodies responsible for licensing should conduct unannounced checks on premises and receive specific training in fireworks. As I have mentioned, the HSE works closely with local authorities and the industry to ensure that the licensing framework is applied appropriately. Licensing authorities use a number of intervention approaches to regulate and influence businesses, including the provision of advice and guidance, and both proactive and reactive inspection.
The Government fully recognise the importance of ensuring suitable licensing requirements for fireworks and other explosives. The Health and Safety Executive works extensively with explosives and fireworks industries to support compliance with the law. The HSE regularly engages with industry stakeholders and has developed guidance with the industry. The existing licensing framework aims to make sure that, where businesses comply with the licence conditions, the risks of an uncontrolled explosion occurring are greatly reduced. Where businesses fail to meet these requirements or harm occurs, regulatory action is swift.
As I have already mentioned, the Health and Safety Executive is undertaking a review of explosives licensing as part its ongoing commitment to continual business improvement, and to ensure that the framework is fit for purpose. The review will look at how the HSE’s licensing approach can be improved and whether any possible burdens on business can be reduced while maintaining standards of safety. It will involve input from industry, other Departments and other regulators, including local authorities, which will provide my hon. Friend and other hon. Members with an opportunity to feed into the process.
We have heard my hon. Friend’s specific areas of concern, but there may well be others. The review is certainly a chance to scrutinise the current system. The concerns he has raised include those about the 2-tonne limit on local authority, as opposed to HSE, licensing and about the categories of fireworks, which is very important. However, there may also be other areas, such as the secondary manufacture or fusing of fireworks, which often takes place in companies seeking to put on professional displays.
My hon. Friend raised the concern that licensing should be required for any business in Great Britain manufacturing or storing hazardous quantities or types of fireworks. I hope he is reassured by my response that this is already the case. I thank him for bringing these important issues to our attention. Again, I would like to extend my sincerest condolences to the families of Simon Hillier and Stewart Staples. My officials would welcome the opportunity to meet my hon. Friend to discuss the coroner’s findings once the inquest has been concluded, and to consider any areas of further work.
Question put and agreed to.
Housing Benefit and Universal Credit
Caroline Nokes Excerpts(8 years, 1 month ago)
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The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)
Following the recent Supreme Court judgments relating to the removal of the spare room subsidy, and to ensure the facts of the cases are fully understood, I would draw colleagues’ attention to the following entry in Hansard:
https://hansard.parliament.uk/commons/2016-11-14/debates/D5D5E72C-3772-46E6-8A4F-15A8F8EBA19A/Under-OccupancyCharge
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Social Fund Annual Report
Caroline Nokes Excerpts(8 years, 1 month ago)
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The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)
In the annual report of the social fund by the Secretary of State for Work and Pensions on the social fund 2014-15, published in June 2015, in annex 9 on page 52 of the report the number of social fund appeals decided in the appellant’s favour was incorrectly reported by Her Majesty’s Courts and Tribunal Service (HMCTS) as follows:
Social fund (funeral payments): 380
Social fund (sure start maternity grants): 190
Total: 560
The percentage decided in the appellant’s favour was incorrectly reported as follows:
Social fund (funeral payments): 77%
Social fund (sure start maternity grant): 90%
Total: 81%
This was due to an error, which led to the figures for appeals decided in the Department’s favour being mistakenly given under this heading. The correct figures—rounded as in the report to the nearest 10—are:
Social fund (funeral payments): 110
Social fund (sure start maternity grants): 20
Total: 130
The correct percentage decided in the appellant’s favour are:
Social fund (funeral payments): 22%
Social fund (sure start maternity grant): 11%
Total 19%
I apologise for this inadvertent error.
Later today I will lay a correction slip to formally correct the record.
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Oral Answers to Questions
Caroline Nokes Excerpts(8 years, 2 months ago)
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Tom Pursglove (Corby) (Con)
The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)
Department for Work and Pensions visiting officers can assist people with the completion of their PIP forms in their own homes, as can family and friends. Claimants can also authorise another person or organisation to help them handle their PIP claim.
Tom Pursglove
I am grateful to the Minister for that answer, but completing the forms can be a particularly difficult experience for those with mental health conditions. I was pleased to hear what the Secretary of State said earlier about reassessments, but what specific help and support is provided to that particular group of applicants?
Caroline Nokes
We want to help people with the form as much as possible. That is why we give them up to a month to complete the return form, as well as additional time if they require it. We provide guidance online so that friends and family can look at it and go on to assist the person with the completion of the form. We also allow them to use their own words to describe their condition and to provide as much detail as they would like, or as much as their condition allows.
Mrs Madeleine Moon (Bridgend) (Lab)
Caroline Nokes
There are opportunities in the Green Paper for exactly that sort of information to be fed back, and my hon. Friend the Minister for Disabled People, Health and Work will be delighted to provide as much support as is needed.
Bill Esterson (Sefton Central) (Lab)
My constituent John Mullen had been working abroad for two years when he fell ill earlier this year with relapsing-remitting multiple sclerosis. When he came back to this country, he was told that he would not qualify for personal independence payments until January 2018. Given what the Secretary of State has said about relaxing the cuts in welfare payments, will the Minister look at his case personally and make sure that my constituent has the money that he needs right now?
Caroline Nokes
As the hon. Gentleman knows, we cannot intervene in individual cases, but if he sends the detail of the specific problem with regard to those who have lived abroad and moved back, my hon. Friend the Minister for Disabled People, Health and Work will be delighted to look at it.
Huw Merriman (Bexhill and Battle) (Con)
Mr Virendra Sharma (Ealing, Southall) (Lab)
The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)
The Secretary of State announced in a written ministerial statement on 15 September 2016 that we will be deferring the application of local housing allowance rates for supported housing until 2019-20. At that point, we will bring in a new funding model.
Vicky Foxcroft
In Lewisham, funding for supported accommodation has fallen by more than half since 2010. My constituent Winston Morris suffers from multiple sclerosis and is wholly reliant on his wheelchair. He was made homeless and had to move into his sister’s living room, where he sleeps, eats, uses the commode and bathes. More than a year later, he is still there. Despite being on the housing waiting list, there is no clear timeframe for when he will be rehoused. This is completely unacceptable. Will the Minister meet me to discuss his case to prevent other vulnerable people from falling into similar situations?
Caroline Nokes
Local authorities are absolutely best placed to make decisions on supporting vulnerable people in their own areas and commissioning supported services that are needed locally, which is why I would be very happy to meet the hon. Lady to discuss the specific issues she raises. It is important that we work to establish the best funding model for supported housing.
Jess Phillips
First, I very much welcome the Government’s announcement to exempt specialist providers such as women’s refuges from changes to housing benefit. I know that the Government have a plan to help refuges and women’s refuges remain sustainable in the future, so I would like to hear what they plan to do for all other sorts of supported living accommodation for elderly people, people with learning difficulties and some of our ex-servicemen and women who, as I heard on the radio today, are having their services shut.
Caroline Nokes
I commend the hon. Lady for the sterling work she has done on refuges. What we know is that there is a massive variety of types of providers of supported housing, and it is critical that in the consultation process we find a solution that works for all of them.
Caroline Nokes
What is critical is that we get the solution right, which is why we are bringing forward the consultation and why we deferred the local housing allowance cap for supported housing until 2019-20.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
Child Tax Credits
Caroline Nokes Excerpts(8 years, 2 months ago)
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)
It is a pleasure to serve under your chairmanship, Mr Howarth. I congratulate the hon. Member for Glasgow Central (Alison Thewliss) on securing the debate. She is right to point out that she has been determined in her pursuit of this policy. She has certainly taken every opportunity to raise the matter with Ministers. I wish, though, to put on the record my support for my noble Friend Lord Freud, who has worked tirelessly on this matter. I entirely reject the hon. Lady’s portrayal of him, and believe that she has deliberately given an inaccurate and misleading account of a private meeting.
This debate explores the limitation of tax credits to two children, which was legislated for under the Welfare Reform and Work Act 2016. I know that the hon. Lady has a strong interest in this topic, and that it is something she has raised in the past. I welcome the opportunity to set out the purpose of the policy. In so doing, I hope that I can allay many of her concerns and particularly underline that we are absolutely committed to ensuring fairness for all families.
The welfare reforms that the Government have introduced are about much more than simply money. Our reforms seek to bring about a positive change in our nation. They are about putting welfare spending on a sustainable footing, but it is important to do that in a way that protects the most vulnerable. As the Prime Minister herself has said, we will fight against the injustices we see in our society.
The current benefits structure, which adjusts automatically to family size, is unsustainable, and it is not fair to the taxpayer or to families who support themselves solely through work and necessarily make difficult choices. That is why we have announced that, from 6 April 2017, families with third and subsequent children born after that date will no longer be able to claim additional support through child tax credit and universal credit. The policy will also apply to future new universal credit claims from families with more than two children.
Dan Jarvis
Is the Minister prepared to commit today to publishing an analysis of the likely impact of the policy on child poverty levels?
Caroline Nokes
I shall address the impacts of the policy later in my speech.
The Government believe that the policy strikes the right balance between protecting the vulnerable, such as by retaining extra support for families with disabled children, and encouraging families who receive tax credits to make the same financial decisions about the number of children they can afford to support as those families who support themselves solely through work do. Parents will continue to receive help with the cost of raising children through the payment of child benefit, which will continue to be paid regardless of family size.
Alison Thewliss
Does the Minister accept that there is a fundamental contradiction in the Government’s saying that they will pay child benefit for as many children as are in a family but not tax credits?
Caroline Nokes
No, I do not accept that there is a contradiction. Later in my speech I hope to be able to set out why we have been so specific when it comes to child tax credits.
The separate disability element of child tax credit will remain payable for all disabled children. I should also be clear that those families already receiving child tax credit for children born before 6 April 2017 will continue to receive it. It is important that I pick up on the hon. Lady’s comments about the 63% of families with three or more children who receive tax credits and are in work, whom she said would be affected. She said that it would be pulling the rug out from underneath them, but that is far from the case, because the families she identified—the 63%—already have those children. We are not talking about retrospectively applying the policy; it is for children born after 6 April next year.
The reforms to tax credits cannot be considered in isolation. The Government are committed to making life easier for working families. We want to support parents claiming benefits to get into and stay in work after having a child. From September next year, the Government are extending free childcare entitlement from 15 hours to 30 hours a week for working parents of three and four-year-olds. Alongside the introduction of tax-free childcare, that support gives parents more freedom when making decisions about whether and, indeed, when to return to work.
Alison Thewliss
Does the Minister accept that there is a further inconsistency? Tax-free childcare is not limited to the first two children within a family; it is for all children within a family, unlike this limitation that she is seeking to impose.
Caroline Nokes
The hon. Lady may not like the response that I keep giving but I will continue to give it. The reality is that the Government want working families and those in receipt of working tax credits to be on the same footing and to make the same difficult decisions. I have no doubt that there will be people in this Chamber who have made difficult decisions about how many children that they wish to have and can afford to have. This issue is about fairness for all families.
Of course, as the hon. Lady will be aware, roll-out of universal credit, the Government’s flagship welfare reform, is continuing. Universal credit is already transforming lives across the country, with those in universal credit moving into work significantly faster and staying in work longer than under the old system. We are now expanding universal credit to all claimants across the country, so that everyone has the chance to benefit from the dignity of a job, the pride of a pay packet and the security that comes from being able to support their family.
The evidence shows us that universal credit is working. As I say, people move into work faster than before. For every 100 people who find work under the old jobseeker’s allowance system, 113 universal credit claimants have found a job. People on universal credit spend more time than before looking for a job—in fact, around 50% more time—and they are actively looking to increase their hours and their earnings.
More than a quarter of a million people are now receiving universal credit, with some 12,500 new claims every week. We have already launched universal credit full service in Musselburgh and Inverness, and next month we are rolling it out to Kirkintilloch, Port Glasgow and Greenock. I have had the pleasure of visiting both live service and full service jobcentres in Barnsbury and Newcastle. I was impressed by what I saw, including the commitment of the work coaches, and indeed their sensitivity and ability to respond to the different circumstances and the different needs of individual claimants.
Caroline Nokes
The hon. Lady shakes her head, but I extend to her an invitation, which I am sure she has already received from others, to visit a local jobcentre, to see for herself how our reforms are working in action.
We also recognise that some claimants are not able to make the same choices about the number of children in their family as others. The Government have been clear that there will be exemptions for certain groups, and it is worth outlining these groups in some detail. Exemptions apply to third or subsequent children who are part of a multiple birth, where there were previously fewer than two children in the household; to children living long-term with friends or family and who are at risk of entering the care system; or to those children born as a result of rape.
Caroline Nokes
I would give way to the hon. Gentleman but there are many really important points that I would like to get through in the time allocated to me, and I have already taken a number of interventions from the hon. Member for Glasgow Central and one intervention from the hon. Member for Barnsley Central (Dan Jarvis).
Today, I am pleased to be able to inform hon. Members that, as part of the Children and Social Work Bill, the Government have given further consideration to the position of children who are being adopted from local authority care, and we will extend the announced exemption to all third or subsequent children in these circumstances. This change will support families who care for our most vulnerable children, and they will be provided for, along with the other exemptions, in regulations.
Of course, we are aware that these exemptions are sensitive and complicated, and we want to make sure that we get this process right. That is why we are consulting with a number of stakeholders from charities, women’s representative organisations and indeed religious groups.
The Government recognise that women who have a child born as a result of rape face extremely difficult circumstances. That is why we are considering very carefully the best possible way to deliver this exemption. I want to be very clear that we are not looking to rely on or to pre-empt decisions within the criminal justice system. Instead, we are looking to ensure that claimants receive the help they need at the time they need it, using criteria that are straightforward to apply and not overly intrusive, while providing the right assurance to Government that the additional support is going to those for whom it is intended.
Our current thinking is that a third-party evidence model offers the most promising approach to strike the balance we need to achieve. This is a model where a woman can request the exemption by engaging with a professional third party, such as a healthcare professional or a social worker. This approach would not be new for the benefit system. For example, within universal credit we use a similar model for the relaxation of the requirements to be available for work in cases of domestic violence, where the evidence required is the reporting of abuse to a third party acting in an official capacity, and that model was developed with input from stakeholders. We recognise the sensitivity of this exemption and the need to get advice from experts, so we have sought views from stakeholder groups involved in supporting victims of rape to help us to develop this exemption.
The hon. Member for Glasgow Central raised a large number of issues, and I will set out the Government’s vision for a sustainable welfare system that supports working families and encourages them to make similar decisions to those made by people who support themselves fully through work. I will also respond to the intervention from the hon. Member for Barnsley Central regarding the impacts of the policy of limiting support to two children in tax credit and universal credit, while meeting our obligations as set out in the public sector equality duty. The Government have set out our assessments of the impacts of the policy as part of the Welfare Reform and Work Act 2016, on 20 July 2015, in a published impact assessment.
The Government are cutting income tax for more than 30 million people this year and we took 4 million of the lowest paid out of income tax completely during the last Parliament. By 2018, a typical basic-rate taxpayer will pay more than £1,000 less in income tax than they did in 2010. Universal credit now provides for 85% of childcare costs for families with two children; this could be worth £13,000 a year.
The number of people in work is at a record high. With the national living wage, we have given a pay rise to 1 million of the lowest paid, and we have overhauled the welfare system so that it pays to work rather than to claim benefits. The number of workless households has fallen by nearly 200,000 in the past year and now stands at 3.1 million, which is the lowest figure since records began. The number of children living in workless households has fallen by 557,000 since 2010, and there are now 100,000 fewer children in relative low income compared to the number in 2010. In the hon. Lady’s own constituency of Glasgow Central, the employment rate has increased by 2.9 percentage points since 2010, to 62.9% in March 2016. This reflects the fact that there are now 2,000 more people in work in her constituency than there were in 2010. The Government are committed to ensuring that those in work are paid a fair wage and have opportunities to progress and to achieve their potential.
The Smith Commission agreement was very clear that universal credit should remain a reserved UK Government benefit, so that there is a clear and consistent offer of vital support to people in England, Scotland and Wales. Where the UK Government decide to make changes to reserved benefits, such as eligibility criteria, or to how payments for dependent children are calculated, those changes will apply equally across England, Scotland and Wales.
However, the Scotland Act 2016 gives the Scottish Parliament and Scottish Ministers significant new welfare powers. Not only can they now work with us to change certain defined elements of universal credit, such as the way that the housing cost calculation is made, but they will also get responsibility for a range of existing UK Government benefits, which were worth £2.7 billion in Scotland in 2014-15.
Crucially, the Scottish Government also now have new, wide-ranging powers to pay cash top-ups to anyone receiving a reserved benefit, or to introduce brand new benefits in devolved areas. This means that the Scottish Government can tailor the welfare system in Scotland, to meet both their own political aims and local needs.
In conclusion, I would like to reassure hon. Members that the Government are committed to achieving these welfare reforms. Putting welfare spending on a sustainable footing, and in a way that protects the most vulnerable, is vital as we progress to a society that will give working families more control over their lives. It will also ensures fairness for all families—both those who are paying for, and those who are receiving support from, the welfare system.
The hon. Member for Glasgow Central is right to raise the issue about the rape exemption; she has made her point and she has made it repeatedly to different Ministers. However, the Department for Work and Pensions is determined to address this issue with fairness and sensitivity, to make sure that women have the opportunity to report in a safe environment to trusted professionals. It is critically important that we extend that opportunity to them and that we do not remove the exemption, because I think that would be a very dangerous and unfair thing to do.
However, it is important that we instil within the benefits system a fairness for all families, for those who make choices about how many children they can afford to have, and that will apply to those who are working and supporting themselves solely through work, as well as to those who are in receipt of tax credit. Our priority remains to help working parents by providing them with the support they need to get on in life, and in doing so we will make life easier for all families.
Question put and agreed to.
Cross-departmental Strategy on Social Justice
Caroline Nokes Excerpts(8 years, 3 months ago)
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The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)
It is, of course, a pleasure to serve under your chairmanship, Ms Dorries. Like other hon. Members, I congratulate my hon. Friends the Members for Congleton (Fiona Bruce) and for Enfield, Southgate (Mr Burrowes) on securing this important debate on social justice.
My hon. Friend the Member for Congleton in particular is a very committed and diligent campaigner on these issues, and I thank her for the work that she has done to raise the profile of social justice matters. I also thank hon. Members on both sides of the House for their contributions to this discussion. I pay tribute to my right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith), who unfortunately has had to leave the Chamber, but whose commitment to these issues is indeed incredibly well known.
The Government, too, are committed to building a country that works for everyone. That means taking action to help the most disadvantaged. As my right hon. Friend the Prime Minister said on the steps of Downing Street, we will fight against the injustices we see in our society and, in doing that, we will do everything we can to give people more control over their lives. However, we know that, as many hon. Members have said today, our strategies need to be joined up across Government so that we can effectively support and transform the lives of the most vulnerable. That is why the Prime Minister has established a new Social Reform Cabinet Committee—to bring Departments together to deliver social reform. In addition to the Prime Minister, that Committee includes the Chancellor of the Exchequer, the Home Secretary and the Chancellor of the Duchy of Lancaster; in total, nine Departments are involved.
The Prime Minister has been clear that tackling poverty and disadvantage and delivering social reform will be a priority for this Government, but I would like to take this opportunity to respond to the many issues that hon. Members have raised and to set out the ways we are currently tackling disadvantage, removing barriers for people and ensuring that everyone has the right opportunities to fulfil their potential.
This afternoon there has been a focus on relationships and families, and rightly so. Good-quality relationships are the basis of a strong and stable society, and we are committed to strengthening and supporting family life for our children and for future generations. The evidence is clear: what matters most is the quality of family relationships and not necessarily whether parents are part of a couple, cohabiting, married or separated. It is important to acknowledge that families come in many different shapes and sizes and we need to be able to support them all.
Over the last four years, we have invested £30 million in relationship support services, allowing 160,000 people to access preventive support. More than 48,000 couples participated in counselling, and more than 17,000 practitioners have been trained to help families in difficulty. We are developing new programmes of relationship support services to help couples with relationship issues, and those focus particularly on the most disadvantaged in society. They are aimed at helping parents to manage and resolve couple conflict.
What we know more clearly than anything else is that conflict has the most impact on children. We want to support parents to stay together where they want to and can, but also support parents, when they have separated, to continue working together in the best interests of their children. My officials are actively working with a range of Departments. Given the prevalence of relationship distress in disadvantaged groups, we are working with Department for Communities and Local Government colleagues, who are responsible for the troubled families programme, on strengthening the focus of that programme on relationship support and parenting.
We recognise that relationships come to an end and it is important that those parents get the support they need to keep conflict to a minimum and to agree on what is best for their children. Over the last two years we have funded 17 projects to help test which services work best in helping separated parents. These have been up and down the country in very different and varied areas, including the constituencies of some of my honourable colleagues.
What I found particularly interesting from one project was the evidence that the involvement of grandparents could be incredibly useful and constructive when couples are separating, to help them work in the best interests of their grandchildren. We have learned a great deal from these projects and are now deciding how best to invest in the help for separated families and single parents in the future.
I was delighted to hear my hon. Friend the Member for Congleton refer to the Government’s work on care leavers. As a former member of the Education Committee, I was but one small part of the work looking at the impact that Government and agencies can have on care leavers. It is absolutely right that these young people, some of the most vulnerable in our society, whose educational, health and employment outcomes are significantly poorer than those of their peers, are made one of our priorities. We are committed to giving them the support they need as they make the difficult transition to adulthood, independent living and, of course, work.
Since the first cross-Government care leaver strategy was published in October 2013, the Department for Work and Pensions has continued to take action to improve the employment support we provide for care leavers. In July this year, the Government published a new, more ambitious strategy to improve care leaver support across this Parliament. This includes setting out in law, for the first time, what it means for a local authority to be a good corporate parent, and creating a new care leaver covenant, which will be launched shortly.
Offender rehabilitation was spoken about by my hon. Friends the Members for Congleton and the Member for South West Bedfordshire (Andrew Selous), who has a great deal of experience and expertise in that important area. We are committed to offender rehabilitation and prison reform. Helping offenders to get into work and make a positive contribution is in the best interests of the individual and wider society.
We know that ex-offenders who find work are significantly less likely to return to prison. Reoffending rates are around 20% lower for prison leavers who go into a job. Work is the best route out of poverty, and for offenders work is essential to rebuild their lives and achieve independence and stability for themselves and their families. My hon. Friend the Member for South West Bedfordshire referenced Jobs, Friends & Houses, which is working in the Blackpool area. Close to my own constituency, I have seen some of the work done at Winchester prison that has seen the prison working with both education providers and local businesses to help prisoners acquire employment placements.
We also recognise what an important stabilising and motivating influence families can be in prisoner rehabilitation. Family engagement in prisons across England and Wales helps increase wellbeing and reduce reoffending. At Winchester I saw the work done by the charity Spurgeons, which is one of many partners delivering this support across the prison estate. Spurgeons supports imprisoned fathers to help them with their parenting skills, and to help their families handle the stresses associated with having a parent in custody. Classes are run on parenting skills and the impact that custodial sentences have on families. Family days are then held to support building better relationships during custody and after release.
The hon. Member for Strangford (Jim Shannon) raised a number of very important issues, including a discussion of the big society, which I too have seen working in my constituency. We might have a discussion about the role that food banks play, but he is absolutely right to point out the role that the Church has in both establishing food banks and supporting people who use them. In Southampton just last week, I was at the 20th anniversary of the Basics Bank, which operates in a network of churches across the city. It is based at Above Bar Church, but also operates in Swaythling Methodist Church in my constituency.
The hon. Gentleman also talked about universal credit, and of course this is an important part of the Government’s welfare reforms. During the summer recess, I visited the Newcastle jobcentre where UC is operating in the full service. I saw the commitment and determination of the work coaches, who play an absolutely critical role in encouraging and supporting people—not just into work, but once they are in work, in that journey to better employment, longer hours and higher wages. Actually seeing it in operation was an incredible experience. The support and encouragement the work coaches were giving to the individual jobseekers coming in was really motivating to me. I saw the commitment they had and their enthusiasm for the transformational difference universal credit has, where nobody is penalised for taking on more hours.
It is an important change and one that we need to emphasise: to explain clearly that this is a route where there are no cliff edges and where work coaches can make sure they give budgetary advice. That is an important part of the transformation that we can make to people’s lives. They can give support and, importantly, build relationships with those jobseekers.
The hon. Member for Lanark and Hamilton East (Angela Crawley) also spoke about universal credit. She raised a very important point, which I must address, about Concentrix and the contract; HMRC has confirmed it will not extend that and also that those who have had their tax credits stopped will be made priorities, to make sure that their cases are looked at.
I pay tribute to the comments of my hon. Friend the Member for South West Bedfordshire. He gave me a great long list of questions, which I fear I am not going to have enough time to answer in full. I reassure him that we do look at the work being done overseas and learn from best practice in places such as Australia, New Zealand, Canada and the Netherlands. I am absolutely open to suggestions of what works to help build and strengthen family relationships wherever it happens in the world. In this country we are not isolated from the impacts of what other countries have learnt before, and we should be willing to learn from our neighbours.
In conclusion, let me reassure hon. Members that this Government are absolutely committed to fighting against the injustices of society and to ensuring that everybody has the right opportunities to fulfil their potential. Our priorities remain making work pay and supporting families into work and out of poverty, by tackling the root causes of poverty and not just the symptoms.
In his moving explanation of Lucy and the Lucy test, my hon. Friend the Member for Enfield, Southgate was absolutely right to point out that these are individuals who are impacted. We must do our utmost to make sure that that Lucy test is used to ensure that the policies the Government have across a broad range of Departments are effective and deliver the outcomes we are looking for.
Social Fund Funeral Payments
Caroline Nokes Excerpts(8 years, 3 months ago)
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The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)
It is, of course, a pleasure to serve under your chairmanship today, Sir David.
I add my congratulations to those that have already been offered to the hon. Member for Belfast East (Gavin Robinson), not only on securing this important debate but on the sincere and thoughtful way that he has addressed a really difficult and emotional subject. Many Members have already paid tribute to him for how he has tackled this issue, but I also thank him for the particular way that he has addressed it.
Of course, a period of bereavement is a very difficult time; bereavement is one of the toughest experiences that any individual or family will ever face. This debate has raised many very important issues and asked important questions about how the Government can best support the bereaved and vulnerable people who are going through that experience, including the practical challenges that bereavement causes.
I fully understand the importance of providing the right support at the right time. The hon. Member for Belfast East has caused me to consider the real cultural differences in different parts of the United Kingdom. His example from Northern Ireland, where a funeral will usually be conducted within just a few days, highlights that the issue is about ensuring that the support is there in a timely fashion. There is a big contrast with other parts of the UK, such as England, where the period before the funeral might be as long as three weeks. I thank him for making me think about that this morning.
An awful lot of work has been taking place on funeral payments and support for the bereaved. I pay tribute to the hon. Member for South Shields (Mrs Lewell-Buck), even if she asked me some challenging questions this morning. She has been most robust in how she has tackled my Department on this matter. She had a private Member’s Bill last year, and my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard) raised the matter in a Westminster Hall debate last year.
The hon. Member for North Ayrshire and Arran (Patricia Gibson) mentioned that debate, and I thank the hon. Member for Strangford (Jim Shannon) for mentioning the fact that I raised this issue in a Westminster Hall debate, albeit at somewhat of a tangent to this morning’s debate; I think that was two years ago. Perhaps this is an annual occasion in Westminster Hall, where we have the opportunity to raise these serious issues and to discuss—for me, from a very different position—the challenges that remain within bereavement services and how the Government and the funeral industry can help. If I remember correctly, when I raised the issue, I was particularly tackling the relationship between funeral directors and hospitals.
More recently, members of the Work and Pensions Committee—I thank them for their work; they are not here today because they are serving on the Committee—have looked in detail at the support the Government provide for the bereaved. I thank them for their insight and recommendations. In particular, I thank the Chairman for the correspondence we have shared since I came into this post.
Quite rightly, the debate has focused on the costs of funerals and on the application process for funeral expenses payments. I will respond to those points and to many of the other points that have been raised, but first, it is important to set on the record the support that the Department provides for vulnerable people at a difficult time. We continue to make a significant contribution towards the cost of a simple, respectful funeral for applicants on qualifying income-related benefits. We meet the full necessary costs of a burial or cremation, which we know can vary. Before I came to this place, I was the cabinet member in my local authority with responsibility for cemeteries and graveyards. I can remember that we constantly reviewed the costs of burial plots and compared how they varied across even one county. Those costs vary enormously across an entire country.
The cost of any medical references or the removal of active implanted medical devices will be covered for cremations, as well as reasonable costs if a body has to be moved more than 50 miles. Travel costs are covered for the applicant to arrange and attend the funeral. In addition, as many Members have said, the Department also meets other costs up to a maximum of £700. In 2014-15, funeral expenses payments were paid for around 6% of deaths in Great Britain. The average payment made has increased in value over the past 10 years by about 27%—from £1,081 in 2005-06 to £1,375 in 2014-15 —as necessary costs have increased.
Despite the current economic uncertainty and pressures for savings, we have protected the £700 limit for other costs people face. However, we know that in the majority of claims the other funeral costs exceed the £700 limit. In 2012, we made interest-free social fund budgeting loans available for funeral costs in addition to the funeral expenses payment. Last year the average award for budgeting loans was £413.
The loans can be crucial in supporting people at a difficult time by ensuring that they do not face financial pressures caused by turning to high-cost lenders or credit cards. We have heard from Members about payday loans and the use of credit cards for paying funeral costs. It is important to emphasise that we made those payments available in 2012 and that they are interest-free. It is worth noting that this country provides the most generous support, after Norway, for funeral expenses compared with other European countries. However, we know that there is more we can do, and I want to turn to the specific issues raised during the debate.
The hon. Member for Belfast East spoke eloquently and with a great amount of detail, much of which pertained specifically to Northern Ireland. He will know that the Northern Ireland Executive are responsible for the funeral expenses payment scheme in Northern Ireland. He raised a very specific matter about bereavement benefits and cohabiting couples. He mentioned the recent court case, which indicated that the Northern Ireland Executive would have to treat cohabiting couples the same as married couples. I am aware that the Executive are appealing the case, and we understand that a date for the appeal hearing has been set for 24 October this year. The Government are watching that matter closely and will consider the implications of the outcome of that appeal.
The hon. Gentleman and many other Members have mentioned the issue of eligibility checkers. We have considered the merits of an online checker, but that can cause additional confusion to bereaved people. The research we have done with service users indicates that the bereaved often prefer to talk to someone in person. That was something I discovered when talking to the banking industry.
When the next of kin has to report a bereavement to the bank, they often prefer to do it in person or by talking to someone, rather than doing it online. That is why we have a dedicated bereavement telephony service, where staff are incredibly highly trained. They are specialists in what they do. At the end of the day, we are determined to provide the best service and the service that people want in their time of need.
We are investigating other solutions, including giving claimants an earlier decision on eligibility before they commit to funeral arrangements, but we want to test that with users. Via the social fund, the Department collects and publishes comprehensive data on applicants, application and award volumes, expenditure and processing time. That allows the Department to monitor the operation of the scheme. Extra data could be generated, but that would come at a significant cost, both in money and time. Although the £700 is not index-linked, there is no cap on the necessary costs category, which is where we have seen much of the inflationary pressure. Inflation in funeral costs has been reflected in the year-on-year rise in average payment amounts. As I said earlier, the average payment has increased in value by about 27%.
In the short time I have left, I pay particular tribute to the hon. Member for Sheffield, Brightside and Hillsborough (Gill Furniss). She adds a very personal dimension to this issue, and I thank her for sharing her experiences with us. We are considering a systematic review with the industry on the causes of funeral cost inflation. The hon. Member for South Shields talked about round tables and discussions with the industry and stakeholders. I assure her that if Twitter is anything to go by, there is absolutely no reluctance on their part to meet me and discuss these important issues. I have meetings scheduled for next month, when we return after the conference recess.
The hon. Member for North Ayrshire and Arran mentioned the consultation with the Scottish Government. As she might expect, we are watching that closely. We are having ongoing discussions with the funeral industry, academics and bereavement services to ensure that we continue to look at this important issue. We believe that the best approach is to work with the industry, rather than dictating a cap on costs, but we want to see absolute transparency on costs and the provision of price lists that people can take away from funeral directors. Through that, the bereaved will have greater knowledge of what they are paying for and how much things will cost them.
When considering the level of support for funeral costs, a balance needs to be struck. We do not want to see the funeral expenses scheme influence or inflate the prices charged by the industry for a simple funeral. The scheme cannot undermine personal and family responsibility for meeting funeral costs. I take on board the point that the hon. Lady made about payment schemes. If nothing else, the debate has caused me to think carefully about how we can best encourage people to find responsible schemes, should they wish to take out some sort of insurance policy.
I am conscious that I am very tight on time. I will draw my speech to a close simply by thanking Members for a very constructive and informative debate. The points made will certainly help my discussions with the industry.
Question put and agreed to.
Resolved,
That this House has considered Social Fund funeral payments.