Department for Education
Debate between Chris Bryant and Justin Tomlinson(5 years, 9 months ago)
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The Parliamentary Under-Secretary of State for Work and Pensions (Justin Tomlinson)
It is a pleasure to respond to this debate—a vital discussion on how this Government, and our Department in particular, support people across society. I wish to pay tribute to the hon. Member for High Peak (Ruth George). We have not always agreed on every single issue, but it is clear that she is a tireless campaigner in this area. Her speech was particularly measured. She highlighted some genuine concerns that she has been pushing on in the years since she was elected. She should be proud that, in some of those areas, she has already effected change, and I know that she is an incredibly valuable member of the Work and Pensions Committee. I had the pleasure of joining her for about four weeks. Securing this debate is a tribute to her efforts.
There have been some very good speeches. In the limited time that I have, I will not be able to cover all of them, but I and my ministerial colleagues have taken note of everything that has been said and, where relevant, we will make direct contact.
Last year, the Department supported 20 million people—more than half of the adult population. We spend somewhere in the region of £190 billion, slightly more than a quarter of Government spending, and the equivalent to the GDP of Portugal. We have always been proud to share the proceeds of our growing economy with, often, some of the most vulnerable people in society.
My hon. Friend the Member for Brentwood and Ongar (Alex Burghart) made a powerful point about the impact on workless households and what an enormous difference that work can make. My hon. Friend the Member for Bexhill and Battle (Huw Merriman) said that, probably, the Government’s greatest achievement is our record on employment. Since 2010, the employment rate has increased to a joint record high. Youth unemployment has almost halved; the female unemployment rate is at a record low; and nearly 1 million more disabled people are in work than in 2013.
Last year, wages grew at their fastest rate in a decade at 3.4%. We are going further to support those in work, with the introduction of the national living wage, which is worth £2,000 a year. The changes to the income tax threshold are worth £1,200 a year. We have seen the doubling of free childcare and the extension of childcare cost support through universal credit. Money being spent on childcare support has risen from £4 billion in 2010 to £6 billion today—a 50% increase. However, this jobs miracle is not a given. Our labour market is outperforming many other developed countries: more people have moved into work in the UK since 2010 than in France, Spain, Ireland, the Netherlands, Austria and Norway combined. What a stark contrast that is to the previous Labour Government, and every other Labour Government who have always left office with higher unemployment.
Many of the speeches have understandably focused on universal credit. We are creating a welfare system in which it pays to work. It simplifies a complex legacy benefits system that too often thwarted opportunities to work. I was heartened that my hon. Friend the Member for Bexhill and Battle highlighted the huge amounts of great work done by individual work coaches. One thing that most impresses me when I go on visits to jobcentres is the enthusiasm that work coaches have for universal credit, giving them, for the first time in a generation, the tools to provide personalised and tailored support. For the first time, claimants have a named work coach who helps them navigate the support for housing, training and childcare, leaving up to 50% more time for them to find work. In addition, they get the support of universal support partnerships, which responds in real time. This contrasts with the legacy benefits, which were hugely complex, with six different benefits across three different agencies: Her Majesty’s Revenue and Customs, DWP and local authorities. We saw from our own pieces of casework just how some of the most vulnerable people fell through the system. It is estimated that £2.4 billion of financial support was left unclaimed a year.
Justin Tomlinson
I will not take interventions just yet, as I need to make a bit more progress. A total of 700,000 of some of the most vulnerable claimants have missed out, on average, on £230 a month. These are some of the people where £5 either way makes a real difference. We have removed the 90% tax rate for some, and the hated 16, 24 and 36-hour cliff edges.
However, it is right to say that improvements are needed. Many of the Members who have spoken powerfully today have helped to change universal credit since its inception. There is still much more to do, but we all welcome the additional £4.5 billion-worth of investment into universal credit set out over the last two Budgets, which means that we will be spending £2 billion more on universal credit than under the legacy benefits.
Justin Tomlinson
I will give way shortly.
We have seen changes to advanced payments. We introduced the two-week run-on for housing benefit for existing claimants and, in April 2020, an additional two weeks for ESA, JSA and income support claimants as they migrate over. We have scrapped the seven waiting days. Rightly, the Secretary of State is putting a real focus on looking at alternate payments, whether that is paying direct to the landlord or paying more frequently. We have increased the work allowance by £1,000, worth £630. We have extended the exemption for the minimum income floor for the self-employed. We are continuing to listen to these debates to make further improvements.
Chris Bryant
I have constituents who were housed by Rhondda Housing Association. They were on the old benefits, but because they have been moved by the housing association to new properties, still with the same housing association, they have been moved by the DWP on to universal credit and have to start from the very beginning. The bulk payment system and the payment directly to the housing association means that they have lost out on 11 weeks of housing benefit and, consequently, are suddenly in arrears having done nothing wrong. Will the Minister please make sure that this is put right for my constituents?
Justin Tomlinson
The hon. Gentleman is absolutely right—we have to make the transition as smooth as possible, where possible sharing data and working with support organisations.
That brings me neatly—this is why I was right to take the hon. Gentleman’s intervention at that point—on to the key point. Many of the people who will be in the benefits system are incredibly vulnerable. They do not have the family support—the network—that can help them to deal with life’s challenges as they come towards them. My ministerial colleagues and I work closely with charities, stakeholders, Members from all parties, and the Work and Pensions Committee. We also work with those with genuine, real-life experience, because they will not only raise, with their experiences, what needs to be improved, but can help with the training and guidance of our frontline staff.