Women’s State Pension Age: Ombudsman Report

Chris Stephens Excerpts

Thursday 16th May 2024 Commons Chamber

[Chris Stephens (Glasgow South West) (SNP)]

It is a pleasure to follow my good friend and comrade, the right hon. Member for Islington North (Jeremy Corbyn).

I congratulate my hon. Friend the Member for North Ayrshire and Arran (Patricia Gibson) on securing and leading this debate. She started with some very hard truths that have to be heard, including the simple fact that we would not be debating this subject today if the Government had allocated their own time to discussing the report and how we go forward, which is exactly what should have happened.

I am getting good at the game of anticipating what is in the Government’s prepared text. We will no doubt be told that the pension changes were made for the great cause of equality—that if we punish people equally, it is a great stride towards equality. The simple and brutal dynamic is, however, that women born in the 1950s have been discriminated against throughout their life. It started with growing up and not having a cheque book or being able to hire a television unless they had the express permission of their father or husband. There was the expectation that if they fell pregnant, they were to leave their employment and give up their careers to raise children. As my hon. Friend the Member for Livingston (Hannah Bardell) said, if they were divorced, the expectation of the financial settlement was that their pensionable rights would be there at the age of 60.

The discrimination against 1950s-born women has been going on for a long time. To say to those women with very little notice, as if it is an episode of “Who Wants to Be a Millionaire?”, “We don’t want to give you that. We want you to work an additional six years in the name of equality,” is frankly ludicrous. We need to recognise the injustices and discrimination that many 1950s-born women suffered throughout their life.

We also need to recognise that this change was not about some magical equality formula; it was to make women work longer. We need to have a serious debate about the huge difference between someone’s working age expectancy and their life expectancy, because they are two entirely different things, particularly for women whose work involves hugely physical tasks, as in the care sector and the NHS.

[Ian Blackford]

My hon. Friend is making an important point. I want to go back to the Cridland report; I remember meeting Cridland at the time. On the issue of healthy life expectancy, to be told that the DWP did not hold such information because that was the responsibility of the Department of Health and Social Care shows the dysfunctionality and the lack of concern about people’s healthy life.

[Chris Stephens]

My right hon. Friend is right. I have always been told that there is joined-up Government here—[Interruption.] Well, I am often told that by Members on the Government Benches, but all too often, hon. Members on the Opposition Benches meet that with the surprised and quizzical look that I just got from the hon. Member for Wirral South (Alison McGovern) on the Labour Front Bench when I said that.

My right hon. Friend the Member for Ross, Skye and Lochaber (Ian Blackford) is correct that we need to consider such things in future, because someone, particularly a woman, who works in a physical environment such as the care sector, the NHS or any other line of work, will not be able to work until they are 66. That is a brutal dynamic.

Several hon. Members, including my good friend the hon. Member for Easington (Grahame Morris) and my right hon. Friend the Member for Ross, Skye and Lochaber, mentioned the former Pensions Minister who rose to his feet in the great Westminster Hall debate that was packed to the rafters and said that one of the solutions was for women to apply for an apprenticeship in a new phase of the economy. Those were the most ludicrous comments that I have heard—I have heard many ludicrous comments in my time in this place, but that was No. 1 on the list.

I pay tribute to the WASPI campaigners in Glasgow and Lanarkshire, particularly the great Kathy McDonald and Rosie Dickson, who have campaigned rigorously and vigorously over the last few years, including after the 2019 election, when many people thought that this issue was finished and was not getting anywhere. Those WASPI campaigners—the 1950s-born women who have campaigned consistently on this issue for the last five years in particular—should be commended in this House.

This Parliament has issues to grapple with. Next week we will discuss the report on infected blood; we will have a piece of legislation—rightly so—for the postmasters; and we have the issue before us. I agree with everyone who has spoken so far that we need to conclude this matter before the summer recess, so that we can all say, as a Parliament, that we know and accept the cost. Then we can debate matters going forward. I am very clear about justice for the 1950s-born women, the infected blood community and the postmasters. Those groups should not be blamed for a lack of investment in public infrastructure. The country badly needs those things, and we should not use those wonderful campaigners as an excuse.

I mentioned the great Rosie Dickson. She contacted me earlier with a quote from one of my favourite political philosophers, the great Jimmy Reid, who hailed from Govan, in my Glasgow South West constituency. He said:

“From the very depth of my being, I challenge the right of any man or any group of men, in business or in government, to tell a fellow human being that he or she is expendable.”

The view of many 1950s-born women is that this Government have viewed them as expendable. I want to send a clear message to the House on their behalf, as many of us have today, that they are not expendable. They deserve justice. If justice is delayed, the price tag will go up; I hope the Government recognise that. I hope the Ministers will confirm today that we will see action and justice for those wonderful, brave 1950s-born women.

Food Poverty Strategy

Chris Stephens Excerpts

Monday 22nd April 2024 Commons Chamber

[Chris Stephens (Glasgow South West) (SNP)]

Exactly 10 years have passed since, in April 2014, an all-party parliamentary inquiry was launched to investigate hunger and food poverty in these islands. Led by the great Frank Field—now Lord Field of Birkenhead—who at that time was a distinguished Member of this House, the inquiry’s report contained a powerful rallying cry. It said:

“The simple but devastating fact that hunger stalks this country should confront each of the main political parties with a most basic and fundamental political challenge. With rising national income nobody could have predicted that in 2014 there would be a significant number of hungry people in Britain. But there are.”

In identifying the forces behind that hunger, the inquiry noted:

“Something fundamental is happening in advanced Western economies which throws into doubt the effectiveness of a national minimum below which no one is allowed to fall. It is the erosion of an effective national minimum that has led to the existence of hunger and the rise of the food bank movement in its wake.”

The fact that I will outline some of those same specific forces later in this debate, and the fact that the number of people having to use food banks has increased relentlessly since the inquiry published its report, is a shocking indictment of the UK Government’s response to hunger and food poverty over the past 10years. It is also a reminder of why an effective strategy is so necessary—to prevent yet another full decade of lengthening queues for food banks and rising levels of hunger.

The Government’s family resources survey recently found that between 2019-20 and 2022-23, household food insecurity increased for the UK as a whole from 8% to 10%. Larger families with children are particularly vulnerable to this form of injustice. A survey commissioned last year by Feeding Britain found that although 3% of households with no children reported accessing a food bank, that proportion increased to 6% among those with one child and 7% among those with two children. The highest proportion—13%—was found among those with three or more children. In a similar vein, adults living in a household with three or more children were almost four times as likely to report skipping meals every day because there was not enough money for food than those with one child, and almost six times as likely than those with no children.

The Minister will know that this injustice is felt by people both in and out of paid employment. Among members surveyed by the Bakers, Food and Allied Workers Union, the number relying on food banks increased between 2021 and 2023 from 7% to 17%. Those relying on friends and family have gone from 20% to 34%, and those eating less have gone from 35% to 57%. Of those surveyed, 80% are eating cheaper—unhealthier—meals, 55% have been worried about running out of food and 45% have skipped meals.

Even closer to home, the Minister may be aware that food bank usage among staff at the Department for Work and Pensions increased from 8% of those surveyed by the Public and Commercial Services Union in 2022 to 11% in 2023. Perhaps she could explain why so many staff working for the Department for Work and Pensions are only paid the national minimum wage. The Food Foundation’s recent survey showed that in January, 15% of UK households were experiencing food insecurity. Among households with children, 20% were experiencing food insecurity, and 24% of households of non-white ethnicity were food insecure—1.6 times more than households of white ethnicity. Of those in some kind of employment, 15% were food insecure.

Stark health inequalities are highly prevalent, particularly in diet-related poor health. The most deprived communities are affected disproportionately by much higher rates of food-related ill health and disease, from obesity to type 2 diabetes, cardiovascular disease and dental decay. Recent reports show an increase in hospital admissions for nutrient deficiencies. The data should ring alarm bells. The longevity of the cost of living crisis means that food insecurity has become the norm for many households who are unable to buy staple nutritious products. Anyone who volunteers for a food bank in Glasgow, like in any other asylum dispersal area, will tell of the need to assist those who seek sanctuary in the UK. Asylum seekers receive a payment of £45 a week—equivalent to what a youth trainee received 30 years ago.

How should the Government respond to those alarming figures? Fortunately, there are two recent precedents—from the Biden Administration in America and the Scottish Government under Humza Yousaf, both of whom have published strategies to eliminate hunger and food poverty within the coming years. A consistent thread running through both those strategies is a combination of specific policies to raise household income levels, improve access to nutritional support schemes and accelerate the development of innovative projects that bring affordable food to areas where people are struggling most. It is that threefold combination that I would like to propose to the Minister by way of an effective food poverty strategy that can eliminate the need for food banks in these islands by 2030.

First, the 2014 inquiry identified food bank usage as resulting from

“delays and errors in the processing and payment of benefits, the sometimes heavy-handed issuing of benefit sanctions…a sudden loss of earnings through reduced hours or unemployment, the absence of free school meals, the accumulation of problem debt or, for some, even a lost purse.”

It added:

“A further group of factors similarly exposes the vulnerability of many poor families. The poor are penalised for their poverty with a raft of disproportionate charges for basic utilities. They pay more for their energy through prepayment meters, are more likely to be charged to withdraw cash from their local machine, and often are unable to take advantage of the best mobile phone contracts—meaning they are likely to be just one bill away from needing to use a food bank.”

Today, around half of all households in receipt of universal credit are having an average of £60 a month deducted from their income, much of which is to repay the loans needed to cover the five-week delay at the beginning of a new claim. In my Glasgow South West constituency, almost a quarter of a million pounds per month was being deducted last year. At this stage, I would provide similar figures about the impact of the Government’s sanctions policy in Glasgow South West, but the Government decided last year that figures would no longer be made available to Members of this House on the amount of money being sanctioned in the constituencies that we represent. However, thanks to Dr David Webster at the University of Glasgow, we know that a total of 538,842 universal credit sanctions were imposed in the year ending October 2023, and 419,219 individual universal credit claimants received at least one sanction.

Food banks across these islands have identified those two policies as the two big recruiting sergeants for emergency food aid, so the first plank of a food poverty strategy must be to reform or get rid of those deductions and sanctions, which are applied so harshly as to leave people hungry. I would place the abolition of the two-child limit on social security payments in a similar category, as well as the introduction of a formal mechanism for advising the Secretary of State for Work and Pensions on the benefit levels that are required each year to safeguard all households from hunger and food poverty, and the payment of fair wages throughout the public sector and the economy as a whole so that a fair day’s work genuinely delivers a fair day’s pay to all. We need to end the scandal of those working in hospitality not being able to buy food for themselves. We need to end insecure work and guarantee workers their hours of work. We also need firm action against the poverty premium, which still results in poorer households missing out on the best and fairest deals for essential living costs.

Secondly, there are different programmes available specifically to make nutritious food available to people who are at risk of food poverty, but awareness and take-up of those programmes has never been as high as it could be. As such, can the Minister tell me whether the Government will undertake to work with all devolved Administrations and local authorities to ensure that they have the tools they need to automatically identify and register all eligible households for those programmes? That is something that featured heavily in the Biden strategy, and could extend much-needed help to hundreds of thousands of children across these islands.

Thirdly, I am proud to have set up the Good Food Scotland programme, which now runs seven affordable food larders and community shops across Glasgow, including those in Nitshill, Cardonald and Linthouse in my constituency. They serve 2,000 members with fresh, nutritious food at a low cost, helping to fill the gap between big supermarkets and food banks. That approach protects those members from food poverty with dignity and choice, and we expect to be running 10 across the city of Glasgow by the end of this year.

[Owen Thompson (Midlothian) (SNP)]

My hon. Friend is making an excellent contribution on the importance of the need for a food strategy. He has highlighted the volunteers and groups across Glasgow that he works with; will he join me in also celebrating the volunteers in Midlothian who help to run the Mayfield and Easthouses Development Trust pantry, the Woodburn pantry, the Gorebridge Beacon pantry, the Newtongrange Development Trust pantry, the Steading community fridge in Rosewell, and the Food Facts Friends pantry and community fridge that I recently visited, along with the Midlothian food bank at Gorebridge parish church and various pantries run by Cyrenians across Midlothian, which all make such an amazing contribution?

--- Later in debate ---

[Chris Stephens]

I am glad to join my right hon. Friend in thanking his organisations in Midlothian. He will know, as I do, that the case studies from these organisations can be very illuminating, and I will mention one now.

Case studies from these projects show how much difference they can make. A couple using the Linthouse Larder used to do their weekly shop in Asda at a cost of £80 a week. Buying the same items in the Linthouse Larder has reduced their weekly shop to £30 a week—a saving of £50 a week. That helps many people in Glasgow South West and in the constituency of my right hon. Friend. Those are the kind of savings that can be made, and I want to thank all those community organisations in Glasgow South West and beyond, across these islands, who are tackling hunger and food poverty. On a bigger scale, and with the appropriate resources, these affordable food programmes could play an important part in eliminating food poverty across these islands.

I propose to the Minister that the Government commit as soon as possible to a cross-sector summit, with the aim of helping communities to secure the resources they need to deliver such programmes at the scale that will be necessary in the years ahead. In addition to that, much of the food required to sustain such programmes could be made available if the Government introduced the mandatory reporting of food waste and surplus in retailers’ supply chains—a measure that would trigger much-needed action by those retailers to ensure that edible surplus arising in the farms and factories that supply them was recycled for human consumption rather than put to waste. When Baroness Boycott proposed such a measure in the other place in 2021, the Government rejected the idea on the proviso that voluntary efforts within the food industry should first be given a chance. I would argue that, three years on, it is surely time to reconsider that idea with urgency.

It is nothing short of shameful to have to bring to this House yet again the issue of hunger as a form of injustice that continues to blight the lives of millions of people in the UK, exactly a decade after the launch of an all-party inquiry that gave the Government a set of proposals to make it a thing of the past. Just imagine a society where no one goes hungry; just imagine a society with a proper social security system; just imagine a society where work pays; and just imagine a society where food is accessible for all and at a fair price. That should be our rallying call. We cannot afford to let even more time slip by without a strategy to achieve that objective. With the numbers of hungry people continuing to rise, now more than ever we need to tackle this emergency, and I await with interest the Minister’s response.

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[Chris Stephens]

A scandalous amount of food is being wasted and going to landfill, and I think we should do something about that. It is not a silver bullet, but will the Minister ask her colleagues in DEFRA to sit down with those of us who care passionately about this subject, and discuss addressing the fact that we have food poverty on one hand and a large amount of food waste on the other?

[Jo Churchill]

Funnily enough, earlier today I was talking to the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Taunton Deane (Rebecca Pow), about exactly that issue. The hon. Gentleman mentioned that there was no mandate three years ago, and I was discussing how the reporting and so on was going. We know that not only are there the benefits of redistribution for individuals but there is a significant environmental benefit for not putting that food in landfill and creating methane, so arguably there is a double win. When done sensibly, redistribution enables others to do the same as charities such as the Felix Project, which freezes food and makes it available to people.

The economy has turned a corner. Inflation has more than halved and is forecast to fall below 2% in 2024-25, while wages are rising in real terms and have done for the last consecutive nine months. Prices for food and non-alcoholic beverages rose by 12% in the year to March, easing for the 12th consecutive month. However, we recognise the financial challenges that many are still facing, which is why as inflation comes down to the 2% target we are continuing to provide support for the 2024-25 period. This includes uprating working-age benefits by 6.7%, well ahead of the current inflation rate, and uplifting the local housing allowance to the 30th percentile of local rents, which will benefit about 1.6 million private renters by, on average, £800 a year, as the hon. Gentleman indicated, alleviating financial pressures throughout the system for individuals.

Further, there is additional support for families, including free school meals, which are being claimed by some 2 million of the most disadvantaged pupils; the £40 million that the Department for Education has put into stimulating the breakfast clubs; and healthy food schemes, such as Healthy Start, which provide a nutritional safety net to more than 3 million children. I looked after the Healthy Start policy when I was at the Department of Health and Social Care, getting the uplift to £4.25 a week, so that pregnant women and children over one and under four receive £4.25 every week. For a child under one, it is £8.50 every week. This can be used to buy, or be put towards the cost of, fresh, frozen or tinned fruit and vegetables; fresh, dried and tinned pulses; milk and infant formula. I remember well meeting Daisy, who spoke to me very clearly about the difference it made having fresh produce, as the hon. Gentleman has already mentioned, come into her life and those of her children, and the nutritional benefit it gave them.

For those who still need extra help while inflation continues to fall, we are providing an additional £500 million to enable the extension of the household support fund for a further six months, including funding for the devolved Administrations through the Barnett formula, meaning local authorities in England will receive an additional £421 million to support local people, with the rest being distributed to the other nations. Independent charitable organisations do fantastic work that also helps in this space, whether they are our local churches or organisations providing lunches and community pantry schemes. As the hon. Gentleman mentioned, they all help individuals and families when they are in need.

[Chris Stephens]

I thank the Minister for giving way again; she is being extremely generous. One concern that has been reported to us is that the Department for Work and Pensions is no longer helping with food bank vouchers. Can she confirm that that is now departmental policy? That would be a very real concern for someone who is in difficulty, having a conversation with a work coach, for example, who is now being denied that food bank voucher or discussing that sort of support that someone in absolute poverty requires.

[Jo Churchill]

I thank the hon. Gentleman for giving me the opportunity to put to bed completely the idea that there has been any change in our policy. We have always signposted that support. The only thing the DWP has done is brought in a new slip to replace the one used previously. There is no change to the existing policy, but the new slip allows us to improve our existing practices and to comply with our departmental responsibilities under GDPR. Our jobcentres continue to provide customers with guidance to find that additional support, including signposting to emergency food support where appropriate. We stand ready to help people when they are most in need.

The hon. Gentleman mentioned the two-child policy. The latest statistic that we have for households in receipt of universal credit is that the majority of families—some 78%—have fewer than three children. Surely it is right that all families, whether in receipt of universal credit or not, should face the same financial choices when deciding whether to grow their family.

While our actions have shown that we remain committed to a strong welfare safety net—particularly during challenging economic times—we know that the best way we can help is through support to move into work. That approach is based on clear evidence on the role of full-time work in substantially reducing poverty. The latest statistics show that working-age adults in workless households were about seven times more likely to be in absolute poverty after housing costs. Children living in workless households were more than six times more likely to be in absolute poverty after housing costs than those in families where adults work. There are now over 1 million fewer workless households in the UK than in 2010—that is 680,000 fewer children growing up in a home where no one works. That is a cause for some gratitude.

There are more than 900,000 vacancies across the UK, and through our core job centre offer we are firmly supporting people to get into work. We support them with travel costs through the flexible support fund, with face-to-face time with work coaches, and help with interviews. The voluntary in-work progression offer is in all jobcentres across Britain, providing an estimated 1.6 million low-paid workers on universal credit with access to personalised work coaches.

We have also reduced the taper rate from 63p to 55p in the pound. We provide childcare costs, capped at £1,000 for a single child and more than £1,700 a month for larger families. We can even help with the advance.

To ensure that work pays, we have put the national living wage for people aged over 21 up by over 9.8% to £11.44 an hour, as the hon. Member mentioned. That makes sure that people are rewarded for the work they do, and it means an extra £1,800 for someone working full time. We are also providing a tax cut for 27 million people by further reducing the main rate of class 1 national insurance contributions.

Our focus continues to be on providing opportunities for people to be supported and to succeed in work, based on our firm belief that this is a sustainable way of tackling all forms of poverty. At the same time, we understand the challenges that people face, and we will continue to work across Government and party to ensure food security and that the broader welfare system will support those who need it.

Women’s State Pension Age

Chris Stephens Excerpts

Monday 25th March 2024 Commons Chamber

[Mel Stride]

We are considering the findings, which need to be considered in their entirety in order to come to a view.

[Chris Stephens (Glasgow South West) (SNP)]

I pay tribute to the WASPI campaigners in Glasgow whom I met on International Women’s Day at the Mary Barbour statue, including the great Kathy McDonald, a fantastic constituent. Surely, the Secretary of State accepts that it is unacceptable in 2024 that women continue to experience inequality in lifetime savings. Women would need to work an additional 19 years to have the same pension savings as men. Inequalities in lifetime savings, a gender pension gap and maladministration of state pension age changes: this is a triple whammy for 1950s-born women. When will they get justice and equal treatment?

[Mel Stride]

The hon. Gentleman concludes by asking the same question that has been asked many times. There will be no undue delay. We will look at the issues, including some of the points that he has raised, in the round, looking at the entirety of the report and all its points and conclusions. He will know that we have taken many steps to help to increase the pension amounts received by the women involved, including the auto-enrolment reforms that we have brought forward. In the private pension space, the reforms have shown a dramatic improvement in the level of pension provision for women up and down the country.

State Pension Changes: Women

Chris Stephens Excerpts

Tuesday 12th March 2024 Westminster Hall

[Jim Shannon]

I thank the hon. Lady for that intervention. Everybody’s interventions so far have added to the debate and reinforced the issue.

Back when ladies started to work, there were no remunerated childcare schemes and it was not standard practice for ladies to be offered access to work pension schemes.

With all due respect to the Minister, the DWP has fallen down on this matter. The Department admitted in 2009 that direct communication with those affected by increases in the state pension age was limited. In 1995, leaflets explaining the changes were available from the Benefits Agency, but only on request. In other words, if someone wanted to know anything—if they even knew to ask—that is what they should have asked for. The fact is that the DWP has a responsibility.

Some 16 million voluntary letters were issued in the form of automatic pension forecasts projecting state pension entitlements, including to women aged over 50 at the time. Those letters did not include any details of state pension age or mention that it was changing, so those women were not fully notified. That is what this debate is about. When we look back specifically to the years between 1995 and 2000, we are reminded that we lived in a relatively pre-internet world, where information was not so readily available at the click of a button and social media did not exist. In the late 1990s, we had only five TV channels, and 24-hour broadcasting was still a thing of the future.

The DWP survey of 2004 asked working-age adults about awareness of state pension age equalisation. The results showed that, of those who were aware, 47% got their information from TV advertising, 37% were informed by reading a newspaper and only 2%—only 2%—cited the Pension Service as their source of information. The Pension Service had the responsibility, and it failed badly. Some 98% of those who qualified did not even know from the state Pension Service what should have been happening. That is a massive issue, and it has to be addressed. Furthermore, despite the efforts made through television and newspaper advertising, access to what we see now as the most basic avenues of communication was limited for women who were not securely housed or in unstable domestic environments.

WASPI women deserve to be compensated for the injustice they have had to face, and that compensation should be based on the principles of recognition, restitution and reconciliation. We could call them the three Rs—it is almost like going back to school—but here they apply to the WASPI women and pensions.

The first principle of compensation is recognition, and quite clearly there is a lot to do. The Government should acknowledge the harm and suffering caused by the changes to the state pension age, the inadequate communication of those changes and the failure to consult the women concerned for the reasons I have outlined. Recognition is important for restoring the dignity and trust of these women and for validating their experiences and grievances. It is also a precondition of achieving justice and reconciliation, as it shows that the Government are willing to take responsibility and to make amends for their actions. That is what this is about.

To date, there has been resistance to offering a formal apology to the WASPI women, and the Government have argued that the actions that were taken were lawful and reasonable. Let us be quite clear: they were not. That stance has been challenged by the PHSO, which found in 2021 that the Department for Work and Pensions had committed maladministration, as the hon. Member for Denton and Reddish (Andrew Gwynne) referred to in an intervention.

The PHSO also found that, by failing to act quickly enough to inform the women about the changes to their state pension age, the DWP had not given due regard to the impact of the changes on the women’s lives and offered them no adequate support or guidance. The PHSO recommended that the Government should apologise to the women and pay them compensation for the distress and inconvenience caused by the DWP’s maladministration —I use that word because it is the right word; it describes exactly what happened.

[Chris Stephens (Glasgow South West) (SNP)]

I thank the hon. Gentleman for the speech he has made so far. People have been waiting three years since the report he has just outlined. Does he agree that justice delayed is justice denied and that the Government should, as the hon. Member for North Antrim (Ian Paisley) said, compensate them now and use this Budget to deliver that compensation?

[Jim Shannon]

I thank the hon. Member for that, and he is right: there is a real onus on Government to reach out and help.

The PHSO also found that the DWP had not given due regard to the impact of the changes on women’s lives and had not offered women adequate support or guidance. It recommended that the Government should apologise to the women and pay them compensation for all those things, including the maladministration. The Government should take positive steps following the PHSO’s findings and recommendations and issue that sincere and public apology to the WASPI women. That would be a significant gesture of respect and remorse and a first step towards repairing the relationship between Government and the women we all represent.

The second principle of compensation is restitution. The Government should restore the affected women to the position they would have been in had the changes to the state pension not occurred, or at least mitigate the negative effects of the changes. Restitution is important for compensating the women for the material and non-material losses they have incurred and for ensuring that they can enjoy a decent and dignified retirement. Wow! How much do we all want to see a decent and dignified retirement? Restitution is also a way to correct the imbalance and inequality caused by the changes and to ensure that the women are not penalised for their sex and their age.

The WASPI women will have different views and demands in terms of what constitutes fair and adequate restitution. Some want a bridging pension or a lump sum payment to cover the gap between their expected and actual state pension age. There really has to be something, and we need to see that coming forward. The restitution that each woman should receive may also depend on their individual circumstances, such as their income, health and caring responsibilities.

--- Later in debate ---

[Chris Stephens (Glasgow South West) (SNP)]

First, I want to say how much of a pleasure it was on Friday to join the WASPI Glasgow women at the Mary Barbour statue, to mark International Women’s Day. The clear message from those women is that they are not going away and nor is this issue.

I want to make three quick points. The first, which other Members have touched on, is about the historical injustices that women born in the 1950s have suffered throughout their lives, whether it is not receiving equal pay—far too many of these women are still fighting for equal pay and looking for compensation for unequal pay in the workplace—or the fact that while going about their lives they could not, for example, hire goods or services, or even get a cheque book, without the express permission of their father or husband, because society at that time decreed that it was a man who was the responsible person. What a quaint and fanciful notion that is! We have to recognise the injustices these women have suffered throughout their lives, and certainly the fact that they were not told that their pension age was changing and that many of them would have to work for an additional five years.

Secondly, it is almost certain that the ombudsman will send this issue back to Parliament to say that Parliament must now decide how to resolve the issue and how to compensate. That much is certain. The Government could have grasped the nettle. They could have recognised that this was coming and that it was time to address this issue, along with the issues of compensation for the infected blood and Post Office cases. They could have done all those things.

That brings me to my third point, which is that justice delayed is justice denied. The longer the Government wait and do not address this issue, the more the price tag will go up. That is an inevitability. We had the announcement of a Budget last week that has £46 billion of unfunded tax cuts, which is £46 billion that could have addressed all three of the issues I have mentioned. When he is on his feet, I hope the Minister will tell us how this Government should resolve this matter, because it should be up to this Parliament to decide it, instead of trying to dump it on the next Parliament.

[Sir Gary Streeter (in the Chair)]

Thank you, colleagues, for your co-operation; we are now bang on time as we turn to the Front-Bench spokesmen. I call the SNP spokesperson.

Pensions

Chris Stephens Excerpts

Wednesday 31st January 2024 Commons Chamber

[David Linden (Glasgow East) (SNP)]

When the Minister was making reference to a Netflix series earlier, I did think that the pensions uprating debate would be an unusual backdrop for Netflix and chill. I do not know whether that is the first time “Netflix and chill” has been referred to in Hansard—I am at risk of getting myself into trouble now, so I will move on quickly.

As with the previous order, my party will not oppose this order. In the previous debate I focused my remarks on poverty more broadly. Now I want to speak about the number of pensioners in poverty, which rose between 2020-21 and 2021-22, with pensioners on low incomes among some of the hardest hit by the cost of living crisis. The Joseph Rowntree Foundation’s report, which I cited earlier, revealed that 2.1 million pensioners were living in poverty in the UK in 2021-22, with the poverty rate for single pensioners almost double that of couple pensioners and about one in six pensioners overall living in poverty. I know this is felt acutely in communities such as Carmyle and Sandyhills in Glasgow’s east end.

The reality, according to Age Scotland, is that 9% of over-50s are skipping meals due to financial pressure, and 65% of people aged between 60 and 64 are having to dip into savings to meet unexpected rising costs. I met the Trussell Trust just this morning, and it is certainly seeing a larger number of pensioners using its service than before. This is of course the case for many WASPI women, given that the ombudsman found that there was indeed maladministration in the communication from the Department for Work and Pensions, with the cost of living crisis certainly making matters much worse for women born in the 1950s.

[Chris Stephens (Glasgow South West) (SNP)]

I am grateful to my hon. Friend for mentioning 1950s-born women such as my constituent Kathy McDonald. Does he not agree that there could have been plenty of time today for us to discuss the plight of those 1950s-born women, and to see what justice and compensation we should be delivering for them?

[David Linden]

My hon. Friend is right. I know Kathy McDonald, one of the 1950s women, who is a force of nature and does an incredible service for women born in the 1950s. It is frustrating that we can have these debates about 1950s women, but I am clear that what 1950s women want is not necessarily words from this place, but action from this place. I think that challenge will be put to the two main parties at Westminster as we come towards the election, and I encourage all those 1950s women to press their candidates on the need for fair and fast compensation, as well as for wider action to tackle the unacceptable gender pension gap that is so pervasive.

As Age UK highlights, the state pension is the largest single source of income for most pensioners, so retaining the triple lock is the very bare minimum. I was glad to hear the comments in the previous debate from the hon. Member for Amber Valley (Nigel Mills) on that. The British Government must urgently address the shockingly low state pension levels, as they are already providing a lower state pension than, frankly, most other advanced economies relative to average earnings.

As with the issues we face with the social security system, the only way I can see our bring truly able to protect pensioners and treat older people with the basic dignity and respect they deserve is through the powers of a normal independent nation, where we can both improve state and occupational pensions, and set the state pension at an appropriate level within a Scottish context. That is the most crucial point I want to finish on, because constituents in communities I represent, such as Sandyhills and Carmyle, know one thing: for as long as Scotland remains within this Union, the state pension age will continue to climb and the state pension itself will remain pitifully low, leading to more pensioners being placed in the invidious position of choosing between heating or eating. That says everything people need to know about this Westminster Government, who the people of Scotland did not vote for.

Social Security

Chris Stephens Excerpts

Wednesday 31st January 2024 Commons Chamber

[David Linden (Glasgow East) (SNP)]

It is a pleasure to follow the hon. Member for Amber Valley (Nigel Mills), a fellow member of the Work and Pensions Committee.

I stand here with a somewhat renewed sense of frustration following the release of the Joseph Rowntree Foundation’s “UK Poverty 2024” report, which I will refer to throughout the course of my contribution. I find myself again speaking in this Parliament against a backdrop of a truly dire situation characterised by destitution. I wonder what more can be said or done to make the British Government realise the true extent of the hardship they have inflicted on people across these islands. The SNP will not oppose the orders for 2024-25, but to keep it plain and simple: the damage has already been done. No amount of uprating will address the long-term consequences of entrenched destitution inflicted on households as a result of the British Government, who, I would argue, have been asleep at the wheel now for 14 years.

Although the Government’s announcement to uprate social security benefits means that shortfalls should not increase any further this year, the orders still fail to undo any of the cumulative impact of years of cuts to social security that households across these islands have endured. While the British Government have been asleep at the wheel, people across the country have been kept awake at night due to the sheer amount of stress and anxiety, wondering how they will feed themselves and their families, and how they can afford—they often cannot afford them—the essentials. We are faced with an horrendous picture, but that is the stark reality of living with this Westminster Government. Young children, school children, pensioners, young adults, those in and out of work—no one is left unscathed when they have the misfortune of interacting with the UK’s social security system.

As the Minister comes back to the Dispatch Box, I am sure full of civil service-inspired lines that do not meet the reality outside Whitehall, we are faced with a cold hard truth from which we cannot escape: people are suffering, and will only continue to suffer as long as this Government refuse to fix the known policy issues, on which I am sure my hon. Friend the Member for Glasgow South West (Chris Stephens) will elaborate.

[Chris Stephens (Glasgow South West) (SNP)]

We are debating what is supposed to be an adequate payment for social security. The Government’s case is completely weakened, is it not, by the ridiculous system of loans and reductions? My hon. Friend’s constituents in Glasgow East and mine in Glasgow South West are, on average, having their universal credit payments deducted by £60 a month because of this ridiculous system.

[David Linden]

I pay tribute to my hon. Friend, who is an assiduous questioner of the Government through Work and Pensions questions on the issue of debt and deductions. He is right to cite the figures in Glasgow, which are well known—local citizens advice bureaux all over our constituencies refer to them—but of course, we are not the only Members whose constituents are impacted by the debt and deductions policy of this Government, which is often found wanting. If the Minister could touch on debt and deductions when he sums up, that would be helpful.

In a Westminster Hall debate I held three weeks ago on the cost of living crisis, I compared the UK’s social security system, which used to be hailed as a safety net for those who needed it, to something that now resembles nothing more than a frayed rope, unable to bear the weight of the individuals who rely on it as a lifeline. After reading the new report and statistics produced by the Joseph Rowntree Foundation, I have never been more assured in my assessment of the state of the social security policies enforced by this Westminster Government.

The JRF report outlines that more than one in five people in the UK were in poverty in 2021-22. That is 14.4 million people, 4.2 million of whom were children and 2.1 million were pensioners. Just as the statistics from Save the Children and Age Scotland show—I will outline them shortly—the JRF report has to be a wake-up call for this Government, and indeed the Government who may follow, if we are to make any tangible change to the broken system that lies before us. In its report, the graph that illustrates the percentage of people in poverty is broken down into the following categories: in poverty, but not in deep poverty; in deep poverty, but not in very deep poverty; and, in very deep poverty. I must be honest: I find it completely surreal that we have reached a point at which statistical analysis has to be broken down into such categories to illustrate the situation that people are having to endure. It is utterly shameful that such categories even have to exist in one of the richest countries on the planet.

I understand that to Members who are present today I seem frustrated, but that is because I am. The statistics in this report are not just numbers; they are the very reality of people in the communities that I represent, such as Parkhead and Shettleston, and those, such as Mosspark or Cardonald, that are represented by my hon. Friend the Member for Glasgow South West. They are truly harrowing findings.

I want to say something about universal credit, which was also raised by the hon. Member for Wirral South (Alison McGovern). This policy is failing the very people whom it is, in theory, supposed to support: rather than supporting them, it drives destitution and food bank usage. It has been reported that 68% of people referred to a Trussell Trust food bank in Scotland who are in receipt of universal credit have money automatically deducted from their payments to repay debts, such as a DWP advance—a point made by my hon. Friend the Member for Glasgow South West. Moreover, food banks in the Trussell Trust network distributed about 3 million emergency food parcels across the UK in 2022-23, more than 1 million of which were for children.

The Government also refuse to scrap abhorrent policies such as the two-child cap and the associated rape clause. The DWP’s own figures show that in April last year, 1.5 million children were affected by the two-child limit—and I say that in the context of those 1 million children who were in receipt of food parcels. This is in addition to data from Save the Children, which found that 60% of households affected by the two-child cap included at least one adult in paid employment. No doubt the Minister will stand up and say that the two-child cap is about making sure that people get into work, but the fact is that it has an impact on people who are already in work. Punitive sanctions, deductions, the two-child limit and the five-week wait are all defining characteristics that are inherent in this British Government's social security system—policies that have caused, and continue to cause, hardship to so many.

Although I could stand here and generate endless amounts of research and statistics for the Minister, my plea is simple. Social security does not have to be done this way: we do not have to continue down this road of sanctions, deductions, rape clauses and five-week waits. It is an undeniable fact that the Scottish Government cannot make any tangible change to these policies while 85% of welfare expenditure and income-related benefits remains reserved to the Government here in Westminster. For every step forward that the Scottish Government try to make, Westminster drags us back two.

The Scottish Government desperately need the opportunity to create a system, one designed to tackle poverty actively and empower those who interact with the system, without one hand being tied behind their back. When we have had the power to do so, we have introduced game-changing policies, such as the Scottish child payment. Analysis shows that the Scottish child payment could lift up to 50,000 children out of relative poverty in 2023-24, which is because the Scottish Government choose to prioritise that. Child poverty rates in Scotland sit at 24%, which is still far too high, but they should be seen in the context of the 31% rate in England and the 28% rate in Wales. That is likely to be due, at least in part, to the Scottish child payment.

Fundamentally, it is a political choice to lift children out of poverty. If this Westminster Government are unwilling to make that choice, I simply ask them to hand over the reins of power to the Scottish Government, who are more than willing, and certainly ready, to implement a system that will allow people to thrive rather than being punished for their circumstances. Until that happens, the Scottish Government are left fighting an uphill battle against a Westminster social security system that is broken beyond repair. Again, I am left wondering how different things might be if Scotland were able to take all the legislative and fiscal responsibility for these issues through the normal powers of independence.

Whether it is the British Government’s cruel sanctions regime or their refusal to fix known policy failures that only push people further into hardship, we are seeing what will sadly be one of the defining legacies of this Tory Government. As a result, poverty no longer just exists within our society. It is deepening, it is ingrained, and it is causing insurmountable pain to people right across these islands. As we are faced with the reality of more food parcels than ever being delivered through the Trussell Trust networks and shockingly high levels of child poverty, the only conclusion I can draw is that these are all signs of a Government, and indeed a Union, that the people in Scotland must escape if they are to have any hope of a fair and prosperous future.

Oral Answers to Questions

Chris Stephens Excerpts

Monday 13th November 2023 Commons Chamber

[Mims Davies]

I think that is a reminder to continually speak up for opportunities for our young people. The current youth employment rate is 53.9%, up three percentage points since 2010. It has been my absolute mission in this Parliament, over the last four and a half years, to focus on young people, with around 140 new youth hubs to support the complex needs of young people. I humbly suggest that the hon. Member goes and looks at the changes that are happening, to see the difference being made in communities up and down the land. We are not writing young people off; we are making sure that we support them. I went to see a new youth hub only last week, and the work being done on housing and with partners is innovative. It means young people with smiles on their faces and their futures in their hands.

[Chris Stephens (Glasgow South West) (SNP)]

12. What recent assessment he has made of the adequacy of benefit levels in the context of rises in the cost of living.

[The Minister for Employment (Guy Opperman)]

The Government have never spent more on welfare and benefit support than we presently do. From April 2023, we uprated benefits by 10.1% and increased the benefit cap levels by the same amount. That is on top of the cost of living support that has been made to multiple households and individuals to address the rising cost of bills.

[Chris Stephens]

I thank the Minister for that answer, but he will be aware that the Trussell Trust has warned that food banks are at “breaking point”, as more and more people across the UK are unable to afford the essentials, with new figures showing that 1.5 million emergency food parcels were distributed through the charity’s network between April and September this year. Will the Minister therefore back its joint campaign with the Joseph Rowntree Foundation calling for an essentials guarantee within universal credit, to ensure that the basic rate at least covers life’s essentials and that support can never fall below that level?

[Guy Opperman]

The hon. Member will be aware that there has been £94 billion of cost of living support over and above the 10.1% increase in benefit rates. That support is over 2022-23 and 2023-24. For example, the winter fuel payment will be paid to the tune of £600 or £500 over the next few weeks.

Universal Credit Deductions

Chris Stephens Excerpts

Wednesday 19th July 2023 Westminster Hall

[Dame Maria Miller (in the Chair)]

It is a little warm in here today, so if Members want to remove their jackets, that is perfectly allowable.

[Chris Stephens (Glasgow South West) (SNP)]

I beg to move,

That this House has considered the matter of Universal Credit deductions.

It is a pleasure to see you in the Chair, Dame Maria. This is a matter of considerable interest and concern to me, as it will be to many other Members, each of whom will have busy caseloads from worried or despairing constituents, many of them describing how the universal credit system has worked for them or, more to the point, has abjectly failed to work for them.

In March last year and earlier this month, I questioned the Secretary of State on how many universal credit claims were having deductions taken from them in the most recent month for which data was available in each parliamentary constituency, what was the average size of sums deducted in each constituency, what was the total sum deducted from claims in each constituency, and what proportion of each sum was deducted to repay advance payments. The figures in the Scottish context were quite revealing to me. For example, I learned that in one month alone in 2021, 180,000 households in Scotland had an average of £60 deducted from their social security payments, and that between December 2022 and February 2023, the UK Government deducted £12.1 million a month from 206,000 Scottish households. The number of households affected by deductions and the sums being recouped seem to be increasing.

Those figures were disturbing but maybe not surprising. After all, last year the Work and Pensions Committee, of which I was then a member, published a report on the cost of living, which called on the Department for Work and Pensions to pause the deductions and restore them gradually only as the rate of inflation reduced, or when benefits had been increased to accurately reflect the rise in prices. The Government rejected the report’s recommendations, stating that pausing deductions is not

“necessarily in the claimant’s best interest.”

But claimants know that since then, inflation has remained very high, and the rise in the price of basic foodstuffs for the poorer has been ferocious. It is time to take a broader look at the problems with universal credit deductions. That is why I secured this debate.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

I cannot tell my hon. Friend how many times a constituent has contacted me to tell me that, as a result of the universal credit calculation and payment cycle and the fact that their employment paydays are not exactly a month apart, they are trapped in an endless cycle of recalculation and financial hardship. Does he agree that it is clear the current assessment cycle is not fit for purpose?

[Chris Stephens]

I do agree, and I point my hon. Friend to the written answer I secured, which gives the statistics for every constituency in England, Wales and Scotland. She will see that the rate of deductions is around £60 in her constituency, but she will also notice that the number of households affected by deductions is increasing. She makes an important point about looking at an individual’s pay cycle and whether it is four-weekly or monthly.

Let us look at some examples of people affected by deductions. The Trussell Trust tells us that almost half of people referred to food banks in its network are subject to deductions from their benefit payments due to repayment of a benefit advance or a benefit overpayment. We will see that linkage repeatedly during the debate. The Trussell Trust goes on to remind us that

“The five-week wait for Universal Credit means many people have no choice but to take an Advance Payment to manage essential bills like rent and utilities”,

which immediately places them in debt and reduces their income below the standard allowance.

Deductions for overpayments, including tax credit overpayments, often take people by surprise because they are historical or are the result of DWP error. Like other deductions, they can be taken from people automatically at unaffordable rates. The standard allowance of universal credit does not provide enough income to cover the cost of life’s essentials, so any deduction taking people below that already low level will push them further into hardship. Key phrases are advance payments, overpayments that are historical or due to Department for Work and Pensions error, and the cost of living essentials. I will come back to each of those.

We then hear from the Trussell Trust about consequent mental health wellbeing, which is often impaired by people struggling to understand what they owe, and why, and how to access support. The Trussell Trust is not alone in making those observations. The organisation Feeding Britain has

“a vision of a UK where no one goes hungry”.

I should also mention Good Food Scotland, with which I do a lot of work in Glasgow South West.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Gentleman for bringing this matter forward, and I will be making my own contribution to the debate. The Trussell Trust in Newtownards in my constituency was the first in Northern Ireland, and what it has to say about vision reinforces what the hon. Gentleman has said. According to Newtownards Trussell Trust,

“our vision is for a world where food banks, like ours, don’t need to exist.”

That is what we want to see, and I know the hon. Gentleman wants the same.

[Chris Stephens]

I thank the hon. Gentleman very much for that intervention. As he knows, he has relatives of mine among his constituents in Newtownards. He is absolutely correct about our vision: we all want to see a world in which food banks do not exist. I know he is very supportive of my Food Poverty Strategy Bill, which is a private Member’s Bill that I recommend to all hon. Members.

Feeding Britain has talked to many people who are having to go hungry. In the days leading up to the debate, food banks in Brighton, Derbyshire, Leeds and High Wycombe reported speaking to individuals who all cited deductions as a key reason for referrals to them, and described some harrowing cases. For example, a client in Chichester has some £55 a week to live on after deduction of rent and other deductions for advances and loans from universal credit. The client received no prior warning or notice of the deduction, and even her work coach was unable to explain why the deduction had been made. That client is a lone parent with three children. She is worried that even if the deduction is found to be a mistake, she will be waiting until the next payment to receive the money that was deducted.

Feeding Britain has also told us of a client in Manchester who had £72 deducted for rent arrears. The first he was made aware of that was three days before payment when he accessed his payment statement. Living off the standard universal credit allowance is difficult as it is, but so much being deducted with so little notice makes it almost impossible. The gov.uk website states that universal credit will place a note on the journal when a third-party debt deduction is about to start, but no such information about the debts—how much was owed or how long the client would be paying off the debt—was provided in that example; there was not even a note telling them how further information could be obtained by telephone. The closing comment from the Manchester office was that

“the most efficient aspect of Universal Credit is debt retrieval”.

In the report “UK Poverty 2023: The essential guide to understanding poverty in the UK”, the Joseph Rowntree Foundation highlights that key design features of the social security system, including having to wait five weeks for the first universal credit payment and universal credit being deducted to pay off debts and arrears, directly lead to higher food insecurity and have contributed to the rise in food banks.

The Child Poverty Action Group has shown that across the UK the number of children living in households with debt deductions being taken from their universal credit has risen to more than 2.2 million, making up more than half—53%—of all children in households receiving universal credit. Those families are missing out on an average of £73 a month as a result. Every commentator seems to express similar views on where the system is failing, and there is much commonality on where they think the appropriate solutions lie.

[Margaret Ferrier]

The use of a predominantly online system has led to many cases being raised with my office. In particular, vulnerable constituents without consistent internet access or phone credit may be unaware that they have been sanctioned until the payment is made because they are not able to access their journal. Have the hon. Member’s constituents experienced that? Does he agree that DWP’s communication needs to be improved?

[Chris Stephens]

Yes, I do agree. My hon. Friend is right again about the lack of information in journals. The example I gave of the individual in Manchester is typical of what happens to universal credit claimants who get caught up with deductions and other aspects of the social security system that I want to see resolved. The Government have recognised some of the problems and have reduced the rate of deductions by lowering the cap and extending repayment periods, but that is not enough; significant reductions to already low incomes remain, and there is no affordability assessment to ensure that people can afford the payments.

What action can we take? Research from the Joseph Rowntree Foundation shows that support has eroded over decades, and that universal credit standard allowance is now at its lowest ever level as a proportion of average earnings. Together with the Trussell Trust, it is calling on the Government to implement an essentials guarantee to ensure that the basic rate of universal credit at least covers life’s essentials and that the support can never be pulled below that level.

Rather than offering one-off payments to shore up the incomes of struggling families, the UK Government should reverse the damaging policies impacting on our most vulnerable, including by reinstating the universal credit uplift of £25 a week, removing the benefit cap and the two-child limit, and halting punitive sanctions regime, which the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) outlined. In addition, the Scottish National party recommends that the Government immediately introduce an amnesty on deductions resulting from the Department of Work and Pensions’ own errors. Advance payment loans should be turned into non-repayable grants after a claimant has been deemed eligible, as the Work and Pensions Committee recommended in our report. Too often, we hear that advances are not loans, but if someone is paid money and is expected to pay it back, that is indeed a loan, not an advance.

We are also arguing for the cap on the monthly rate of deduction to be lowered, and for the widespread use of sanctions to be stopped, as there is clear evidence that they do not work. A London School of Economics study found that the impoverishment of larger low-income households has helped few parents to get a job, and is instead pushing families further into poverty and damaging their health.

I said at the start that I will intersperse my contribution with comments, examples and solutions from Scotland, so here are some. Social Security Scotland can take deductions from some benefits—the adult disability payment, the child disability payment and the Scottish child payment—to pay back an overpayment, but when overpayments occur, it engages with clients to discuss their circumstances and agree a payment plan that takes them into account. Its debt management strategy states:

“Where the repayment method is voluntary deductions from benefits, we will mutually agree a value with client as part of Affordability Assessment. Where enforced deductions are applied due to client not engaging with us to agree a payment plan, a maximum deduction of 10% of Scottish Benefit Entitlement will be applied unless the overpayment is due to Fraud, in which case a maximum of 15% will be applied.”

That social security philosophy and those actions work.

The Scottish National party believes that social security is an investment in the people of Scotland and a key part of the Scottish Government’s national mission to tackle child poverty. It continues to do everything it can with the limited powers and fixed budgets it receives from this place. That includes investing £5.2 billion in benefits expenditure in 2023-24, supporting more than 1 million people. I have stated clearly that we need to tackle child poverty. The Scottish Government’s tackling child poverty delivery plan estimates that 90,000 fewer children will live in relative and absolute poverty this year, as a result of the policies of the Scottish Government. However, the Scottish Government should not have to pick up the broken pieces left by this place, or keep using their limited powers and fixed projects to mitigate damaging Conservative party policies.

With every day that this Government fail to fix the known problems of universal credit and the social security system, and fail to use their reserve powers to tackle the rising cost of living adequately, they demonstrate that independence is the only way for Scotland to boost incomes and build a fairer society. The rest of the United Kingdom needs to fix its broken social security system; Scotland is already determined to do so.

[Dame Maria Miller (in the Chair)]

I remind Members that they need to be here for the full debate if they are going to take part. I was also going to ask Members to bob if they want to take part; I thank Members for doing that. I call Jim Shannon.

[Jim Shannon (Strangford) (DUP)]

My goodness! Thank you, Dame Maria. That threw me off. It is a pleasure to serve under your chairship for the second day running. It has come to the point when you and I are in Westminster Hall almost as much as each other. Well, maybe that is an exaggeration. It is also a pleasure to follow the hon. Member for Glasgow South West (Chris Stephens), who rightly brought forward this topic. We met on the Terrace this morning and he said, “Jim, will you come and do your bit?” and I said, “Does the Pope have red socks? Absolutely, I will be there. There is no doubt about it.” I am here to endorse what he said. A person from the food bank wrote me a letter, and I will quote the best part of it. He illustrates very well what happens, and why it is important.

I can well remember the fear at the outset of universal credit—the fear that people would be worse off, and that families would struggle. Boy, do they struggle. I am sorry to say that, but they do, because I witness it every day. I witnessed it on Friday in my office, with a person who had the same problem with universal credit. We were able to sort it, by the way. I find it incredibly hard to understand how universal credit works, and I am far from stupid. Once through the technical details and the machinations of the whole thing, one has to ask, “How on earth does anybody follow this?”.

For some, this fear has become a real struggle, and the deductions from an already sub-par universal credit is enough to push some families over the edge. I have seen that in my constituency office. My staff have a continuously good relationship with the social security offices round the corner. I have to put on record that they are brilliant. The number of problems that they have sorted out when my staff speak to them illustrates that they have grasped how the system works and how to get through it, but the ordinary person cannot do that. I have struggled to understand it as well.

It should be remembered that those who are unemployed or unable to work have a set rate that remains pretty stable. However, self-employed people have different work weeks, and the flexibility that universal credit was supposed to offer has resulted in deductions from overpayments. The hon. Member for Glasgow South West mentioned that, and I endorse it. The deductions are so hard to work out that families are left not even understanding how they owe money. It is incomprehensible.

The Minister understands. I am no different from anybody else here. Whenever we approach the Minister and explain the issues, he always tries to respond in a positive fashion. I appreciate that, and want to put that on record, because it is good to have a Minister who really wants to do things and help out. We are all working in our constituencies, advocating for our constituents, and we know well the issues that the hon. Member for Glasgow South West outlined.

I was contacted last week by the phenomenal manager of the local food bank, a man with the largest heart for helping families and vulnerable individuals. I want to read out his comments, as time permits. My speech is his letter to me, because it illustrates the issue really well. The hon. Member for Glasgow South West has friends and relatives in Newtownards. I know them—and think they vote DUP, by the way, so maybe they are not nationalists.

[Chris Stephens]

Not a chance.

[Jim Shannon]

I think they do; he does not know them as well as I do. The letter states:

“As a food bank operating in Newtownards, we are writing to you to raise our concerns about rising numbers of people in our community who are needing to turn to food banks, like ours, because they cannot afford the essentials we all need to survive.”

These are his words: “This is not right”. I say amen to that.

“In the last financial year we saw a 30% increase in clients coming to the Newtownards Foodbank compared to the previous year. We are aware that our summer has started really busily with an average of 24 different families attending each week since June in what is normally our quieter spell.

Many attendees are struggling with the inability to feed there families and provide fuel for their house needs. A significant proportion are actually working but their outgoings outstrip their income. Those on benefits clearly don’t get enough to match their basic needs.

While the cost of living crisis and the pandemic have placed additional pressures on incomes, this year’s rise is part of a longer-term trend in levels of need. Support has eroded over decades and the basic rate (‘standard allowance’) of universal credit is now at its lowest ever level as a proportion of average earnings. Alarmingly, the number of parcels provided this year is more than double the amount distributed five years ago.”

I will say that again, because that is an important line:

“Alarmingly, the number of parcels provided this year is more than double the amount distributed five years ago.

No one should be forced to turn to a food bank because they cannot afford essentials, including food. We provide immediate support to people in our community when they are struggling the most, but our vision is for a world where food banks, like ours, don’t need to exist.”

I said that in an intervention on the hon. Member for Glasgow South West. That is his vision, mine, the vision of every Opposition Member and, I hope, of the Minister. The letter also says:

“Research by the Trussell Trust shows that inadequate social security is the main driver of food bank need and there is a known link between issues with the benefits system and food bank use. This can and must change.

Alongside the Trussell Trust, we are calling for our social security system to Guarantee Our Essentials by making sure that the basic rate of Universal Credit is at least enough to afford the essentials we all need, such as food, energy and basic household goods – and that deductions can never pull people below this level.”

He asks me:

“Will you support the principle that, at a minimum, Universal Credit should always protect people from going without the essentials?”

That is Richard’s letter to me this week. I will say on the record that I fully support what he said.

--- Later in debate ---

[David Linden (Glasgow East) (SNP)]

It is a pleasure to serve under your chairmanship, Dame Maria. I thank my very good friend, my hon. Friend the Member for Glasgow South West (Chris Stephens), for securing this timely debate. I say “timely” because it is almost a year to the day since I raised a similar issue in the Chamber. With that in mind, it is incredibly worrying that the situation outlined today has not improved. Instead, it has continued to spiral out of control, thanks to the British Government’s inaction.

I have listened with great interest to the contributions made this morning. Given the announcements this week, there is no better time to stress the damage that has been caused by this fatally flawed universal credit system. Last week, Citizens Advice published new data showing that families are operating in negative budgets, which means that their income no longer meets the basic costs of covering food, energy and housing. According to its latest analysis, two in 10 households have £100 or less after paying for monthly essentials, and of the 40,000 people who Citizens Advice sees with debt problems, over half cannot be helped, as they have already cut back so much on the bare essentials.

This all comes as a result of an austerity agenda pursued by the British Government—a Government who refuse to make the necessary change to universal credit deduction rules, despite households facing severe financial destitution and uncertainty. As we have heard today, the impact of deductions is significant and all the more pertinent to our constituents as they continue to be gripped by the cost of living crisis.

As my hon. Friend the Member for Glasgow South West said, the average Scottish household has had £59 deducted from their universal credit. In a cost of living crisis where every single penny counts, that is the difference between putting food on the table and having to go hungry. As he outlined, the deductions affect almost half of Scottish households on universal credit, with the DWP clawing back around £12 million a month. Nearly half of those deductions are to pay back universal credit advance payments because struggling households cannot wait five weeks for their first payment. This is a system that is fundamentally flawed.

It is therefore no surprise that since January this year, 60% of universal credit claimants whom citizens advice bureaux have helped with deductions have also required help accessing food bank or emergency charitable support. Trussell Trust data indicates that people with deductions were around twice as likely to go without food, toiletries and utilities as those on universal credit without deductions, and over two thirds of people in Scotland who were referred to food banks in the Trussell Trust network in receipt of universal credit were facing a deduction.

Furthermore, the latest statistics from Citizens Advice show that, of the 84% of people who had their benefits deducted, 43% have had to borrow money to cover the essentials. In addition, the Child Poverty Action Group reported that more than 2.2 million children are living in households with debt deductions from their universal credit. I know from speaking to constituents in Parkhead, Shettleston and Tollcross that the uncertainty of how much a deduction is or when it will be taken causes significant and, most importantly, unnecessary hardship for claimants.

In their reports, charities refers to universal credit deductions as “wiping out people’s finances” and

“trapping them in a spiral of debt”.

“Trapping” and “spiralling” are words that I would never wish to associate with a social security system, yet the system that this Conservative Government have designed and presided over continues to push individuals into a never-ending cycle of debt and financial insecurity. As a number of Members have stressed, the British Government are subjecting vulnerable people to heinous deductions that push them into further debt and destitution. Debt, in and of itself, has a profound impact on the cost of living, and that is only exacerbated by this broken system, which is forcing people to make impossible choices that amount to their being unable to even meet the most basic needs.

When the root cause of the issue is poor system design, it is astounding that the Government continually refuse to make the necessary changes to rules around deductions. We are faced with a British Government in denial, who do not believe

“that pausing deductions by default is necessarily in the claimant’s best interest.”

What is it about being unable to afford basic food, buy household essentials or heat their home that is in the claimant’s best interests? People are already diverting limited resources towards debt repayments and that is only compounded by unexpected deductions.

Despite continued and constrained resources, the Scottish Government are doing what they can to mitigate the impact of this broken system, but the root cause undeniably starts here in Westminster. We know the Government can make solutions and immediate changes today that would make a huge difference to those struggling the most and make our constituents’ lives somewhat more manageable, as so many continue to face impossible household budget decisions. Those changes need to be made sooner rather than later, as millions face food insecurity, soaring debt and unnecessary hardship.

[Chris Stephens]

My hon. Friend is making an excellent speech. We must ask the Minister to consider the need for some discussion between claimants and the DWP, particularly where the DWP’s own errors are causing the deduction. Does my hon. Friend agree that there needs to be a discussion about an affordability assessment between the claimant and DWP in future?

[David Linden]

I thank my hon. Friend for his intervention. When the permanent secretary of the DWP gave evidence to the Work and Pensions Committee, I raised the issue of the recovery of some of the payments. The permanent secretary acknowledged at the time that despite the heavy-handed wording in the DWP’s letter, there was scope for a discussion between claimants and the Department. The fact that the Department has not been willing to amend the text of that rather hard-hitting letter makes the point.

We have a broken social security system that is perpetuated by the UK Government. Moreover, I say to the shadow Minister, the hon. Member for Reading East (Matt Rodda), that there is no point in his party winning the election and coming into Government but continuing the policies of this Government. He and his party should be thoroughly ashamed of being thirled to a two-child policy and an associated rape clause that is the very opposite of what the Labour party should stand for. The hon. Members for Birkenhead (Mick Whitley), for Leicester East (Claudia Webbe) and for Liverpool, West Derby (Ian Byrne) are good socialists who are appalled by the policy. If the hon. Member for Reading East wants to stand up and take the opportunity to apologise for his party pursuing a policy that is tantamount to social engineering, I will be happy to hear that. If he does not do so, my constituents will conclude that the only way to ensure we do not have disgraceful social security policies is with the powers of independence, because this lot clearly have nothing different to say.

--- Later in debate ---

[Guy Opperman]

I certainly will do that, and I will also have a look at the individual letters that apply in those particular circumstances. All such letters, as the hon. Gentleman will know having done the pensions job for five long, lovely years, are kept under review, and there is the opportunity to do that.

The hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) is no longer in her place—I know she has to be elsewhere—but she raised in particular the issue of access to a journal for those who do not have the internet. Again, we need to make it clear that, obviously, an individual claimant can attend a jobcentre, which has computers that claimants can use to access their universal credit claim and their individual journal, or they can speak to a member of staff who can support them through the process.

[Chris Stephens]

Will the Minister give way?

[Guy Opperman]

Bear with me. I might give way, but I am going to keep trying to make progress. The hon. Gentleman had 20 minutes and will have more time soon.

Much criticism was made of DWP staff, particularly by the hon. Member for Leicester East. She used various expressions that I utterly reject. I will not dignify them by repeating them, but I want to make it utterly clear that I am proud to work with the 25,000 men and women who work in our 700-plus jobcentres up and down the country. They do a fantastic job in trying to assist everybody. When she impugns the individual character of DWP staff, I am afraid she is utterly wrong. She should reflect on that and visit her local jobcentre.

--- Later in debate ---

[Chris Stephens]

I think the Minister said I had 20 minutes to sum up, but you might have something to say about that, Dame Maria. I thank the hon. Members for Strangford (Jim Shannon), for East Londonderry (Mr Campbell), for Rutherglen and Hamilton West (Margaret Ferrier), for Birkenhead (Mick Whitley), for Arfon (Hywel Williams)—as I was reminded by him, he has a sophisticated electorate, given its electoral history—for Liverpool, West Derby (Ian Byrne) and for Leicester East (Claudia Webbe). I also thank the Front Bench spokesmen.

I thank the Minister for his kind words in referring to me as his good friend—that will probably get me deselected during the summer when I seek to secure selection again. I also thank him for mentioning the great Frank Field. Frank was at an event in Parliament this week, alongside Feeding Britain and Good Food Scotland, and he told me that he agrees with me on universal credit deductions. I hope the Minister will take that on board.

In reply to the Minister, it starts with a five-week wait, and the Government will really have to deal with this situation whereby we are handing out loans. They are not advances; they are loans. I ask the Government to look at how quickly they can pay a benefit as soon as someone hits the eligibility criteria.

As the hon. Member for Reading East (Matt Rodda) says, the real issue is the scale and the number of deductions now taking place. Like others, I ask the Minister to look at what happens when there is a departmental error. The Department really needs to look at the information that has been provided on the online journal and have that discussion. My hon. Friend the Member for Glasgow East (David Linden), who is a good friend—that will not get him deselected—rightly said that the Minister said he would look at the communication. That also needs to be about the information given to claimants, and I ask him to look at that and come back to us. Affordability assessments should be standard practice.

The Minister did not address the crucial point: since the Government have eased the deductions and made their changes, there has been a cost of living crisis. That is why we are asking him and the Government to look again at easing the rate of deductions, which we think will help the situation.

Every single Member has spoken about food poverty and has given examples of how deductions are causing it. I am on a crusade—a mission—to end food poverty across these islands, which is why I have introduced a private Member’s Bill to that end. One way to end food poverty is to address the universal credit deduction situation. I hope that the Minister will do that during the summer, because if he does not, we will be coming back and having another debate.

Question put and agreed to.

Resolved,

That this House has considered the matter of Universal Credit deductions.

Department for Work and Pensions

Chris Stephens Excerpts

Tuesday 4th July 2023 Commons Chamber

[David Linden (Glasgow East) (SNP)]

May I start, as others have, by sending my thanks to the Chair of our Select Committee, the right hon. Member for East Ham (Sir Stephen Timms), for securing today’s debate and for setting the scene so well? The debate takes place against the backdrop of an ongoing Westminster-made cost of living crisis that affects the livelihoods and lives of people across Scotland and these islands. The harsh, yet inescapable reality is that people in Scotland can no longer afford to pay the price for the economic mismanagement of a Westminster Government they did not elect. Indeed, we have not voted by majority for the Conservatives since 1955.

In May, CPI was still at 8.7%. Prices are still soaring and the cost of living under Westminster control is still far too high for many families who were already struggling to get by after 13 long, brutal years of Tory cuts, Brexit and economic mismanagement. We know that inflation disproportionately impacts lower-income groups such as single parents, who spend a relatively high proportion of their income on food and fuel. Indeed, new Trussell Trust research shows that families are going hungry as a result of the Westminster-made cost of living crisis, with one in seven people in the UK facing hunger in the last year due to a lack of money. Ministers often tell us that the reasons for food bank usage are complex. It is not complex—it is because people do not have enough money.

The Joseph Rowntree Foundation’s latest cost of living tracker found that 5.7 million low-income households are having to cut down or skip meals because they do not have enough money for food, while the number going without items such as food, heating and basic toiletries has remained at about 7 million for more than a year—all of that in the sixth largest economy in the world.

The average interest rate for a two-year fixed-term mortgage has risen to 6%. The Resolution Foundation has said that average annual mortgage repayments are set to rise by £2,900 for those renewing next year. In short, that is the eye-watering Westminster mortgage premium that Scots are paying for the pleasure of a Tory Government they did not elect.

What is more, analysis by the consumer group Which? shows that the prices of popular family meals have risen by 27% in the last year. The Irish and French Governments have reached agreements with major supermarket retailers to reduce food prices, while the Tory Government are sitting on their hands. It is those low-income families I represent in Parkhead, Shettleston and Baillieston who are paying the price for the sheer intransigence of Conservative Ministers here in London. Even at this late hour in the cost of living crisis, I urge the British Government to use all the powers at their disposal to tackle that crisis on the scale that is required. That does mean that they will have to be bold and radical, and the same is true of the pro-Brexit Labour party.

I turn specifically to universal credit, which is obviously the main focus of the debate. In short, the British Government’s continual refusal to fix the extensive and known-about problems with universal credit is unacceptable, and it is without doubt subjecting some of the most vulnerable people in our communities to additional and unnecessary hardship. With the three main parties in this place now agreeing on the principles of universal credit, there is an opportunity, so we should put our heads together to look at what we can do to fix it.

I will start with the level of universal credit. JRF research shows that support has eroded over decades and that the basic rate of universal credit is now at its lowest level as a proportion of average earnings. Indeed, the JRF’s latest cost of living tracker warns that about nine in 10 low-income households on UC have gone without at least one essential for the third survey in over a year.

For most people referred to food banks in the Trussell Trust network, the design and delivery of the social security system are major contributors to their inability to afford the essentials. The majority of people—indeed, some 89%—referred to food banks in the Trussell Trust network receive a means-tested benefit such as universal credit, but that did not provide them with enough to cover the cost of the essentials. As the right hon. Member for East Ham said, JRF and the Trussell Trust are together calling on Ministers to implement that essentials guarantee to ensure that, at a minimum, the basic rate of universal credit covers life’s essentials and that support can never be pulled below that level.

[Chris Stephens (Glasgow South West) (SNP)]

Is not another problem the insane part of the system where people pay back money because of advances and the level of deductions—more than £60 a month is being deducted from my hon. Friend’s constituents’ and my constituents’ universal credit? That envelops that cycle of poverty.

[David Linden]

I am grateful to my hon. Friend for putting that point on the record. He was my predecessor on the Select Committee and follows this work well. I will come to debt and deductions, because that is one of the big issues raised in the evidence that the Select Committee receives, certainly by the stakeholders that we meet. He is spot-on to draw attention to the £60 from each of our constituents that is paid back to the Government when it could be spent in our local economies.

New CPAG research finds that the digital aspects of universal credit routinely lead to wrong amounts being awarded to claimants—often those who are most vulnerable—and to breaches of rule of law principles. That is why I have repeatedly called on the Government to reverse their cuts to universal credit and working tax credits. Let us not forget that this was the biggest overnight cut to welfare in 70 years, inflicting hardship on people who were already struggling. To have done that as we came out of the teeth of the pandemic was particularly cruel.

Rather than offering one-off payments to shore up struggling families’ incomes, the DWP should reverse the damaging policies that are impacting on the most vulnerable people. It should reinstate the UC uplift at £25 per week and, of course, extend it to legacy benefits. Let us not forget the 2.5 million disabled people, so ably advocated for by the hon. Member for Oldham East and Saddleworth (Debbie Abrahams), who were cruelly left behind without that uplift during the pandemic. The Government also need to remove the benefit cap and the two-child limit with its associated rape clause. They also need to halt the punitive sanctions regime so that all households are lifted out of poverty now and in future.

I turn to the benefit cap. As the Poverty Alliance points out, the cap’s design means that those who require the highest level of support from the benefit system are the most likely to be affected. That is simply unjust. Based on the latest departmental figures, 114,000 UK households have had their benefit capped and 86% of those are families with children. The benefit cap disproportionately impacts lone-parent families, the majority of whom are women—a point made by the hon. Member for North East Fife (Wendy Chamberlain) —as well as larger and ethnic minority families.

The same is true of the two-child limit. Thousands of families with children will be pushed into poverty because Ministers on the Treasury Bench refuse to scrap the two-child limit on child tax credits and universal credit. A new London School of Economics study found that the policy’s impoverishment of larger low-income households has helped few parents get a job. Instead, its main function has been to push families further into poverty and to damage their mental health.

I wonder why Ministers are so furled to the two-child limit. The vast majority of them are actually quite embarrassed by it, and that is before we get to the associated rape clause, or as the Government like to call it, the “non-consensual sex exemption”. When this Government go around lecturing people about the values of global Britain, I am pretty sure they do not tell folk that the state will only support the first two children in the family, but if someone can prove that their child was born as a result of rape, that is okay.

In-work Poverty

Chris Stephens Excerpts

Wednesday 28th June 2023 Westminster Hall

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

I beg to move,

That this House has considered in-work poverty.

It is a pleasure to serve under your chairmanship once again, Sir George. I am grateful to have secured this important debate on the scandal that is in-work poverty. Such a debate should not be needed in the 21st century in one of the wealthiest nations in the world, and yet here we are. I hope the debate will explore why so many people face unacceptable levels of poverty not when they are out of work, but while they are working and earning a living.

“If you work hard, you can earn a decent wage, buy a house and raise a family”—that is the promise the Government made to the country in their last election manifesto when they stated:

“We will help people and families throughout their lives by bringing down the cost of living and making sure that work always pays.”

I do not think it is controversial to say that I agree with that. People who work hard should be able to earn a decent wage, afford a home and raise a family. A job that pays, a home of their own and a family they can support are not great gifts bestowed by a generous Government; they are key indicators of a healthy and functioning society. They are our modest expectations and reasonable aspirations, and any half-competent Government should be expected to deliver them. Cruelly, over the past 13 years, this Conservative Government have not only failed to do their job and deliver for the British people; they have also, systematically, through either incompetence or intention—probably both—prevented millions across the UK from getting on in life, trapping them in an inescapable cycle of poverty and hardship.

Data from the Department for Work and Pensions shows that one in five people in the UK were in relative poverty in 2021-22. It is clear that working does not preclude a family or an individual from poverty. After housing costs, 71% of children and 57% of working-age adults who are in poverty are in poverty. In-work poverty has increased by a shocking 1.5 million people since the Conservatives took office in 2010. There are three overarching reasons why things have become so bad: earnings, housing and the cost of living. On each, the Government have taken a bad situation and made it much worse.

Wages today are at the same level as in 2005. That is the longest period of stagnation in terms of earnings in nearly 200 years. Public services have been cut to the bone, and many public sector workers have seen their pay significantly eroded by years of below-inflation rises. At the same time, there has been an explosion in the gig economy and other insecure work—a damning indictment of the Tories’ economic and political choices, which have forced ever more people to rely on the benefits system.

[Chris Stephens (Glasgow South West) (SNP)]

I congratulate the hon. Gentleman on securing the debate. He mentions the gig economy. Three of the reasons for in-work poverty are insecure work and zero-hours contracts, bogus self-employment and low wages. The Government made promises in response to the Taylor review eight years ago, but we are still waiting for that employment Bill. Does he agree that we need that employment Bill now?

[Mr Dhesi]

I could not agree more. I remember standing in this very place after I had managed to secure a debate on the Taylor review of modern working practices. In fact, some of the same Members who are here today also took part in that debate, during which we asked for the employment Bill to be introduced. It is shocking that only seven of the 53 agreed areas of legislation were enacted. Such intransigence is what leads to more in-work poverty.

For 13 years, successive Conservative Governments have sought to undermine social security in our country. Universal credit is not protecting working families from poverty. More than a third of children and working age adults in working families in receipt of universal credit are still in poverty after housing costs.

Ms Clarke, one of my constituents in Slough, is a nurse who supported the most vulnerable during the covid-19 pandemic. She is struggling to pay for the loans that she took out for her training and has to claim universal credit. For that, she must take annual leave to attend her appointments at the jobcentre. How is any of that fair or right? She is a nurse and a single mother without the support she clearly requires.