(4 years, 6 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
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I thank my hon. Friend for that question, and I welcome her to her place and indeed to her position on the Select Committee. Most claimants will not notice any difference whatever, other than that an extra 900,000 will be eligible for transitional protection. She raises an important point. The IFS slammed Labour’s pledge to scrap universal credit as uncosted and
“unwise…expensive, disruptive and unnecessary.”
It is important to point out that no Labour Government have ever left office with unemployment lower than when they started.
The Minister is correct that he apologised to Glasgow MPs, but he told us he would write to us that day and we are still waiting. Delays seem to be an important part of his stewardship.
On the five-week wait and given that we now know from parliamentary answers that the Department receives £50 million a month in repayments from advances, surely that now tells us to scrap the five-week wait and make sure the first payment is not a loan or an advance payment, but a first payment for universal credit.
It is a system based on arrears, not on advances, unlike the legacy benefit system. The hon. Gentleman knows that people are able to access an advance on day one repayable over 12 months. That will extend to 16 months next year and I am looking at whether we can explore options to extend that further. We have made further changes—scrapping the seven-day wait, the additional two-week run-on, the two-week run-on starting in July of legacy benefits—and, where there are further changes we can make, I am of course willing to look at them and act where appropriate.
(4 years, 7 months ago)
Commons ChamberThank you very much, Mr Speaker. As my hon. Friend the Member for Glasgow North East (Anne McLaughlin) pointed out, the Under-Secretary of State for Work and Pensions, the hon. Member for Colchester (Will Quince), was in several of our constituencies last week and did not give any of us the courtesy of informing us. I would suggest to the Minister that rather than gadding about eating deep-fried Mars bars and patronising us, he might want to meet the Glasgow Disability Alliance, whose hustings I attended during the election campaign. Its fury at Tory incompetence on the benefits system is well known in the region, and he should meet it rather than disrespecting all of us.
Further to that point of order, Mr Speaker. The Minister was also at Ibrox stadium in my constituency, where he met the Rangers Charity Foundation, and again we were not notified. For the benefit of new Ministers, can you inform the House of the protocol for Government Ministers visiting constituencies for which they are not the home Member?
The protocol is that all Members—whether they are Ministers, shadow Ministers or Back Benchers —who are carrying out political business in those constituencies should inform the MP that they are going there. I think it is wrong to break that protocol. I do frown upon it. It is not good practice, and it is a practice that I do not want to see happening again. In fairness, I am going to allow the Minister to come back on this, but we certainly know my position.
(4 years, 9 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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We are all here to help the children, whether in Scotland, England, Wales or Northern Ireland. That is what it is all about.
I congratulate the hon. Gentleman on securing the debate. Is not one of the biggest reasons for children going into poverty the two-child limit on tax credits? Does he agree with the Select Committee on Work and Pensions, which is to publish a report before Dissolution that says that the policy should be scrapped?
Yes. I will come on to two-child cap poverty.
History shows that we can tackle child poverty in Scotland. The largest falls in the poverty rate recorded in the past 20 years were among pensioners and children. From the late 1990s, child poverty across Scotland fell significantly because of the policy choices made by the Labour Government. The Labour Government redesigned the welfare state with the purpose of tackling child poverty, which is why policies like child tax credits and the national minimum wage were introduced. Those policies were designed to target the underlying causes of child poverty, such as low pay. The success of the Labour Government in reducing child poverty highlights the fact that it can be done when there is the political will and the right policies.
We need to show that political will, because the impact of poverty on children is simply unacceptable. Children living in poverty suffer greater health and social outcomes than their better-off peers. Children living in poverty are much more likely to suffer health problems, such as poor mental health and wellbeing, and obesity. They are more likely to lag behind in reading, writing and numeracy. Child poverty affects not just childhood, but individuals throughout their whole life.
I thank the hon. Lady for that staggering fact. How sad is it that, in this day and age, children are dying from poverty before they are 15?
If we are to tackle child poverty in Scotland, we must look at whether current policies help us to do so. Since 2010, the Government have implemented a series of welfare reforms, such as universal credit. As we all know from our surgeries and constituents, universal credit is having a negative impact on families. In particular, it is hurting low-income families, pushing more children into poverty. Universal credit could be considered a success only if its aims were to push up rent arrears, increase food bank use and drive people deeper into poverty. That is the success that some think universal credit is creating.
Earlier this year, I led an Adjournment debate on food poverty in Scotland, after it was revealed that more than 210,000 food parcels had been distributed by the Trussell Trust last year. Nearly 70,000 of those food parcels were issued to children. That means that about one in three food parcels distributed in Scotland last year was for a child. What a shameful situation we are in. The UK is meant to be the world’s fifth largest economy, but we have children going hungry in our constituencies.
Rising food bank use is linked directly to the Government’s welfare reforms. Trussell Trust figures reveal that almost 50% of all food bank referrals are the result of a delay to benefit payments to claimants. Almost 35% of all emergency food supplies are distributed to those individuals who find that their benefits regularly fail to cover their cost of living. In areas where universal credit has already been rolled out, the Trussell Trust observed a 30% increase in food bank use after a year of the roll-out.
I recall the hon. Gentleman’s Adjournment debate on food poverty. Does he agree that one of the main issues is that people wait five weeks to get their benefit entitlement? The advanced payment really should be the first payment, and people should not have to wait five weeks to get state support.
I totally agree. That is a change we can make today.
The Government decided to implement a two-child limit policy, despite warnings from this House and charities that it would worsen child poverty in Scotland. What was warned about has come to pass, and almost 4,000 low-income families in Scotland are affected, with a loss of £3,000 per year for each family. We cannot ignore the impact of other welfare reforms introduced by the Government. The benefit cap affects over 3,000 households in Scotland, 92% of which contain children. The benefits freeze has impacted low-income families, further fuelling child poverty across Scotland.
It would be fair to say that the Government’s welfare reforms have worsened the child poverty rate in Scotland, but we cannot ignore the fact that the Scottish Government have gained greater powers, which would enable them to better address child poverty. The Joseph Rowntree Foundation highlights that in areas of Scotland such as Edinburgh, where the private rent sector is bigger than the social sector, private rent growth has outstripped inflation over the last decade. Higher rents impact on the incomes of families, meaning that they are less able to cover essential costs such as food and heating. Undoubtedly, that fuels child poverty across Scotland.
(5 years, 1 month ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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It is a pleasure to see you in the Chair, Ms Buck. I congratulate the hon. Member for Ogmore (Chris Elmore) on an excellent speech. It is noticeable that the Celtic nations have dominated the debate so far, with one honourable exception in the hon. Member for Barnsley East (Stephanie Peacock). I have noticed something else in the debate, and we should show sympathy and solidarity with our Conservative colleagues, who are all nervously watching their telephones as the reshuffle begins. If social media is to be believed, we are looking at an episode of “Game of Thrones”—“The Red Wedding 2”—but we will see what happens in the next few hours.
As I said, the hon. Member for Ogmore made an excellent speech on access to pension credit and pressed home the statistics that he read out. The Independent Age charity informed me that there is an unclaimed £9,664,000 in the Glasgow South West constituency on a yearly basis. Frankly, that is an astonishing figure. It is outrageous that the Department for Work and Pensions is allowing billions in benefits to go unclaimed by poor pensioners. As the hon. Member for Ogmore said, four in 10 pensioner households that are entitled to pension credit are not receiving it. When we add that to the TV licence proposals, which I will come to, it looks very much look like poorer pensioners are missing out on many aspects of state support that they should receive.
The hon. Member for Glasgow North East (Mr Sweeney) and others have rightly invited DWP to try to sort out the situation, but some of us feel that, as Members of Parliament, we have to address it as well. I am organising a pension credit event for pensioner clubs and other organisations—bowling clubs, for example—during the summer recess, to show their members what they are entitled to and highlight that they will have friends and neighbours who are entitled to pension credit but are not receiving it.
We have other decisions on pension credit. The outrageous decision to cut pension credit for mixed-age couples could cost some couples £7,000 a year. It really is not good enough for the Government to say that a decision was made in 2012. There have been two general elections since then, and the make-up of Parliament is a lot different. There really should have been parliamentary scrutiny before 15 May, when the Government decided to put that forward. It is unacceptable, and just another addition to the long list of policies that are hurting older people.
I want to touch briefly on TV licences, because I think a number of hon. Members have suggested, and I agree, that it could end up being a false economy for the Government—[Interruption.]—I am obviously getting agreement from outside, as I am being cheered. It is a false economy because what could end up happening is that we will have people claiming pension credit to try to keep their free TV licence, which will cost the DWP a lot more than if it had kept TV licences under its domain. There is also the issue of the 1950s-born women, many of whom were not properly informed of the changes. Some have been affected by the mixed-age couple rules, and some single 1950s-born women could be eligible for pension credit, but they will have to wait longer to claim it because of the increase in pension age.
I want to close by emphasising that any suggestion that austerity is over is absolutely farcical. The Government have continued to target austerity at the most disadvantaged. The changes they are making to pension credit, and the fact that they are not proactive in ensuring that poorer pensioners know they are entitled to it, emphasises the point very well indeed.
(5 years, 1 month ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
(Urgent Question): To ask the Secretary of State for Work and Pensions if she will make a statement on last week’s Supreme Court ruling on personal independence payments for those with mental health issues.
The Supreme Court has ruled on the case of Secretary of State for Work and Pensions v. MM, which is known as MM. The case was about the definition of “social support” when engaging with other people face to face in the PIP assessment, and how far in advance that support can be provided.
We took the case to the Supreme Court because we wanted clarity on the issue and the judgment gives us that clarity. We welcome the Court’s judgment. We are pleased it accepted that there is a difference between “prompting” and “social support”, and that there must be a need for social support to be provided by someone who is trained or experienced in providing such support.
PIP is already a better benefit for people with mental health conditions than the legacy disability living allowance. The proportion of them who get the higher rate of PIP is five times higher than under DLA, with PIP at 33% and DLA at 6%.
It is clear that there is an increasing understanding in society about mental health and how important it is to make sure that individuals with poor mental health get the right help. It is not an exact science, but the desire for an increased understanding of mental health issues is one of the few areas that have cross-party support.
Getting this clarity ensures that even more people who need help to engage face to face may now be eligible to benefit under PIP. I want to be clear that supporting disabled people and those with mental health conditions continues to be a priority for this Government. That is why we will now carefully consider the full judgment and, working with disabled people and engaging with Mind and other stakeholders, implement it fully and fairly so that claimants get the PIP support they are entitled to.
I thank you, Mr Speaker, for granting the urgent question and the Minister for his response.
The individual concerned in the case is a Glasgow South West constituent. As the Minister said, the Department appealed the decision by the Scottish courts.
Will the Minister confirm that the judgment means that ongoing encouragement from a family member to help someone leave their house and engage socially will result in additional points in the PIP process? Does he accept that it is now clear that PIP assessments need to be overhauled and that, once again, we have found that the process discriminates against those with psychological conditions?
The Minister appears to accept the judgment, so will he tell us whether any estimate has been made of the number of people who will be affected by the decision and how long it will take to initiate any back payments? Will he confirm that that will be new money and that it will not come out of existing budgets?
(5 years, 1 month ago)
Commons ChamberI thank my right hon. Friend for his question and his continued interest in ensuring that the poorest in our society and in his constituency are well looked after. The purpose of the managed migration pilot is to make sure that we get it right; constantly engaging with stakeholders will be part of that, and of course we will take any learnings from it.
I thank the Secretary of State for advance sight of her statement, although it is staggering that the Department for Work and Pensions is pushing out regulations days before recess. Although it is correct that the back-payments are being issued—Members across the House, including on the SNP Benches, have been calling for that—hearing about them 48 hours before the change takes place is, frankly, disrespectful to the House and outrageous.
I have a number of questions. Can the Secretary of State confirm that the Government are formally accepting the decision of the High Court? That leads to the next question, which is about the £405 a month. Will the Secretary of State publish how that figure has been calculated, to give us all an opportunity to see that the Government are complying with the High Court decision? The Secretary of State has confirmed that these regulations will be laid under the negative resolution procedure; however, her predecessor had committed to allowing the House to debate the new regulations. Why is the House not being given the opportunity to debate them? Finally, can she confirm that the Social Security Advisory Committee has been consulted on these new regulations?
To address the final question first, yes the SSAC has been consulted. On how the amounts have been arrived at, that is broadly in line with what the tribunal has recommended, but I will take the opportunity, if I may, to write to the hon. Gentleman so that he can see the set-up for himself. He asked about the previous Secretary of State and her commitments: the commitment that we are delivering on today is to respond to the requirement to lay the legislation and for me, the Secretary State, to come to the House and set out why we are doing it. The advice that we have received is to use the negative resolution procedure, because things have been changed since the former Secretary of State laid the original legislation, but I acknowledge that to move in future from the pilot to the full managed migration is likely to need much fuller debate.
(5 years, 2 months ago)
Commons ChamberThe Secretary of State needs to look at the report and realise why Mr Alston was able to come to his conclusions on the evidence that he found during his visit to this country, rather than doing what she and her colleagues have done up to now: report personal attacks against a UN rapporteur who visited this country to draw conclusions about poverty and human rights.
I thank my hon. Friend for being most generous in giving way. Would he be surprised to hear that this morning, in the Select Committee on Work and Pensions, a Minister stated that the Department’s policy is now that it regrets the inflammatory language in its response to the rapporteur’s report and is taking that report seriously?
I would be very interested to see the transcript, because that directly contradicts what the Secretary of State just did to me in her intervention. I would be very interested to see what was said in more detail.
There is no doubt but that the Institute for Fiscal Studies has blown a rather wide hole in the Tory rhetoric around inequality in the United Kingdom. Its report can be complemented by so many others—from the Trussell Trust, the Joseph Rowntree Foundation and the Child Poverty Action Group, to name just a few of the expert charities highlighting how the UK Government’s policies are impoverishing people across the UK. That is why we support the motion. I hope that the Government will finally wake up to the social destruction that they are causing, will act, and will no longer take their path of austerity.
(5 years, 2 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to see you in the Chair, Sir Henry.
This debate is in stark contrast to the advertisements for universal credit that we see in certain newspapers. Those adverts should not include a DWP or universal credit logo; those advertisements would not look out of place in an episode of “Jackanory”. As a constituent pointed out to me yesterday, one advertisement mentioned the advance payment, but did not say it was a loan. Does that advance come in wrapping paper and ribbon? The advance payment is a loan, and the Government cannot keep denying that or saying that it is something else. That loan is adding to universal credit debt, as is the five-week wait. As has been said, many of those leaving work were paid weekly or fortnightly, and they then have to wait five weeks. People are refusing the advance because it is a loan.
Some 60% of those with debt reductions are not getting the help they need from creditors, so they are borrowing more money. Those with deductions on universal credit are becoming more reliant on foodbanks, and Scottish Welfare Fund crisis grants are increasing all the time as a result. Some 40% of those with deductions are also behind with other household bills, such as food or fuel—it is a circle. My great fear is that the Government are not following Cabinet Office guidelines on debt collection, and that this is become a loan shark’s charter. This is a serious issue, and I hope that the Minister and his Department will get a grip on how they deal with debts and universal credit.
Also, individuals will receive that money as an advance to their universal credit payment, so they will receive 13 payments over a 12-month period. I make it absolutely clear once again that, as I hope colleagues will acknowledge, these are interest-free advances. Of course, from October this year, the Government will reduce the maximum rate—
I will not, as there is quite a lot to get through.
From this October, the Government will reduce the maximum rate at which deductions can be made from a universal credit award from 40% to 30% of the standard allowance. By the end of 2019-20, it is forecast that around 290,000 universal credit households will have had deductions reduced, by an average of £295 over the year. It is already possible to extend the period over which advances are repaid to 15 months in certain circumstances, and of course, as Members have acknowledged, from October 2021, the maximum period will be extended to 16 months for all claimants.
One issue not touched on in the debate was payment timeliness, but it is worth pointing out that it has been raised in previous debates, certainly during my time as a Minister. Payment timeliness has improved significantly. We now pay around 85% of new claimants of universal credit in full on time. In addition, 95% of claimants are paid in full within five weeks of their payment due date. If there are delays in making the first payment, that can be due to outstanding verification issues, such as the need to provide bank statements or proof of rent. It can also be due to a claimant not signing their claimant commitment. For ongoing claims, payment timeliness is around 98%.
The shadow Minister, the hon. Member for Weaver Vale (Mike Amesbury), raised the issue of employment. The whole point of simplifying the welfare system is to remove the cliff edges and the disincentives to take on work and extra hours that existed under the legacy benefit system. We now offer claimants one-to-one support to help them to move into work.
I hope that colleagues will acknowledge that we are seeing record rates of employment, month after month. The shadow Minister talked about zero-hours contracts, but he will know that less than 3% of people in employment in the UK are on zero-hours contracts. That figure has fallen this year. Indeed, those on zero-hours contracts are doing about 24 hours of work a week on average.
We have recognised that we need to provide a consistently high level of support to those who may have difficulties in making a universal credit claim. That is why we announced our partnership with Citizens Advice and Citizens Advice Scotland, which are now funded to provide the “help to claim” service for claimants.
In the past, a number of colleagues have spoken about debt advice. They will know that debt advice is now fully funded by the financial services levy, and that service delivery is commissioned by the Money and Pensions Service, which was launched in January this year. In 2019-20, MaPS will provide around 560,000 sessions of debt advice in England. It is also worth noting that in addition to the funding that Citizens Advice receives for the “help to claim” service, it will, like other organisations, receive additional funding from MaPS to provide debt advice.
A number of colleagues raised the issue of rent arrears. I point out that a report published in July 2018 by the National Federation of ALMOs, or arms-length management organisations, showed that over three quarters of their tenants who had started claiming universal credit were already behind with their rent prior to commencing their claim. Also, research that we have carried out shows that the proportion of universal credit claimants who were in arrears at the start of their claim fell by a third after four months. In the universal credit full service claimant survey, which was published by the DWP in June 2018, 84% of claimants said that they felt confident about managing and paying their housing costs.
My hon. Friend the Member for Gloucester raised the issue of rent arrears and asked what further work we were doing on it. I can confirm that we are carrying out further analysis with a number of housing providers to investigate and understand the true level of rent arrears among their tenants, and what is causing those arrears. Of course, when we have that information, we will publish it.
A number of colleagues raised the issue of tax credit debt. Her Majesty’s Revenue and Customs already seeks to recover overpayments of tax credit debts. When a claimant moves on to universal credit, any outstanding debt is transferred to the DWP for recovery. This does not include debt that is subject to ongoing disputes or appeals, and HMRC tells the claimant the amount of debt that is being transferred to the DWP for recovery. HMRC and the DWP continue to work closely to improve the claimant journey. This includes having a joint inquiry team to handle any issues that tax credit customers might experience during their move to universal credit. Of course, if claimants are struggling with the rate of repayment applied, they can ask the Department to review that rate.
A large number of points were made during the debate, so I say to hon. Members that if they want to meet me separately to discuss any points in more detail, I am very happy to do that, or they can write to me. However, in the remaining couple of minutes that I have, I will try to cover off some of the points made in the debate.
On the discussion about poverty, I point out that income inequality and absolute poverty are lower now than in 2010, and indeed the number of children—
(5 years, 3 months ago)
Commons ChamberMy hon. Friend is absolutely right to say that some people are very concerned about this; they see the changing face of the workplace, and they are concerned about their own job security and skills. I am determined to ensure that we give people the skills they need and that we work with work coaches on projects to ensure that people get the right support. I would be delighted to work with my hon. Friend, particularly as she did such fantastic work in my Department, to ensure that her constituents are early beneficiaries.
We know that, from April, 15% of claimants are not receiving their first payment within five weeks. Will the Secretary of State tell us what action the Department is taking to ensure that claimants are paid in a timeous fashion?
I can reassure the hon. Gentleman that we are seeing constant improvements in the rate at which pay is received by claimants as early as possible. We have ensured that advance payments are available, and I am vigilant about ensuring that the figure of 85% for those receiving the actual application on time is constantly improving.
(5 years, 3 months ago)
Commons ChamberI want to start by reflecting on a scene from Ken Loach’s 2016 film “I, Daniel Blake”, where Katie Morgan, overcome with hunger, begins to eat cold baked beans from a can in her local food bank. Hayley Squires’ powerful performance as Katie struck a chord with people. It was a stark reminder of the real impact that food poverty has in communities across the UK.
In 2015, NHS Health Scotland conducted its initial research on the nature and extent of food poverty in Scotland, finding that food poverty arose because of individuals being on a very low income or facing destitution. That restricts their choice of what food they can buy as well as when and where they can buy it. The research highlighted that food poverty also had negative impacts on an individual’s health and wellbeing. Other research undertaken in the UK has found a link between food poverty and certain medical conditions or illnesses.
I thank the hon. Gentleman for securing this important debate. It is appropriate that he cited “I, Daniel Blake”. Does he agree that many of those on low incomes find themselves working in the public sector for UK Government Departments, where they have had a public sector pay freeze for at least 10 years, and are having to rely on food banks because of the poverty pay they are on?
I thank the hon. Gentleman for that, and I would agree with that point, because the wages have not matched the rises in food prices.
International research has also found that the more severe a person’s experience of food insecurity, the more likely they are to seek help from healthcare services. Further international studies have shown that going hungry just a handful of times can lead an individual to develop poorer mental and physical health. Both this domestic and international research emphasises that food poverty is a public health issue. I welcome the Scottish Government’s recognition of food poverty being a public health issue. The inclusion of questions on food insecurity in the 2018 Scottish health survey was a positive step. The survey revealed those who are most likely to find themselves living in food poverty across Scotland; 18% of those in deprived areas live in food poverty, which compares with a figure of just 3% in the least deprived areas.
I was actually coming on to that point about heat or eat. It is a very well used phrase, but perhaps it should be used more often. Some 13% of 16 to 44-year-olds live in food poverty compared with just 1% of those over 65. A total of 21% of single parents also live in food poverty—what a shameful situation. The UK is the world’s fifth largest economy, yet the Scottish Health Survey revealed that one in 10 Scots lives in food poverty.
The Independent Food Aid Network had identified 2,000 food banks currently operating in the UK, 212 of which are in Scotland. I pay tribute to the volunteers at all food banks, particularly to those at the Coatbridge community food bank and the Viewpark food bank in my constituency. They work tirelessly to support families who find themselves in food poverty as a result of the austerity policies pursued by this Government. I have previously supported the Coatbridge community food bank to secure an additional warehouse, and I will support those volunteers looking to establish a food bank in Moodiesburn as well.
I thank the hon. Gentleman for being so generous in giving way. He quite rightly praises the food bank volunteers and provides me with the opportunity to praise the great work of the Glasgow South West food bank, but does he agree that if it were not for the generosity of his constituents and my constituents these food banks would not exist? It is the community that should be thanked for its generosity.
I agree wholeheartedly. Where would we be in this country without the volunteers? Let us ask the volunteers to take a day off and then see how this country survives. I say thanks to all the volunteers who get involved.
I thank the hon. Gentleman for that very important point. It is not about the price of the food, but about the quality of the food.
Indeed, the Trussell Trust revealed that three-day emergency supplies were sent to 1,800 households with children in North Lanarkshire. I agree with Dr Mary Anne McLeod of A Menu for Change when she says that these figures are truly shameful for Scotland. They are, and I hope that they will serve as a call to action.
I thank the hon. Gentleman for giving way again. He is being very generous. Like me, does he have evidence from food banks that the demand for their services rockets by as much as 30% when universal credit kicks in or is rolled out in a particular area?
Yes, I agree with that. The demand has gone through the roof. In fact, Coatbridge food bank has now doubled the size of its unit—I helped them to achieve that. That is not what I was going to say, but that is what has happened anyway.
We must look at the underlying causes of food poverty in Scotland. Oxford University carried out research into food bank users across the UK in 2017. It found that every two in five food bank users were waiting for benefit payments, with the delay in receiving payments being the primary cause of their food bank use. One in six households using food banks had at least one person in work, but that was often insecure employment, such as a job on a zero-hours contract. Food bank users were also found to have monthly household incomes of no greater than £500. Some 16% were even found to have no income at all in the month before they became a food bank user. The food poverty crisis is clearly driven by low pay, insecure employment and the Government’s welfare reforms.
I thank the hon. Lady for raising that point, because I have seen this happening a lot in my own area recently. There are some deprived places in my constituency, and the shops are starting to charge money at the ATMs. It is okay for me—I can walk away and refuse to use that ATM—but I understand that some people are trapped, and instead of getting £10, they are getting £8. It is an absolutely scandalous practice that has to end. That issue could be another huge debate in itself.
The hon. Gentleman made a very important point about the five-week wait for universal credit payment. Will he confirm that he has constituents like I have in Glasgow South West who are scared to take the advance payment of two weeks’ universal credit because it will only exacerbate their debt?
Yes, I know people who worry about borrowing, and try to borrow from their family and friends rather than having to pay back this loan, which I believe also accrues some interest and puts them back even further.
Professor Philip Alston visited the UK back in November, and spoke to volunteers and food bank users as part of his research into poverty in the UK. His report for the United Nations concluded that food banks were a symptom—a symptom of this Government’s complete denial of the impact of austerity on the poorest in our society. I hope that the Government will snap out of their denial and start showing willingness to act. I stress that that goes for the Scottish Government as well.
I pay tribute to Labour-led North Lanarkshire Council’s fantastic Club 365 programme, which is free to attend for primary school pupils who receive free school meals, and ensures that they do not go hungry at the weekends or during the school holidays. North Lanarkshire Council helps to feed our children 365 days a year. I remember attending a meeting that looked at the positive impact of Club 365 on the lives of children in my constituency of Coatbridge, Chryston and Bellshill, as well as across North Lanarkshire. A Conservative councillor was moved to tears at that meeting; he never realised that the problem was so big.
Club 365 highlights that food poverty can be tackled when the political will exists. I hope that both the UK and Scottish Governments will now show that they have that political will. Let us not make “Oliver” a reality for more of our children: “Please Sir, can I have some more?” I say no more—no more children and their families going hungry in Scotland. If the UK Government can remove the smokescreen of Brexit, and the Scottish Government can remove the distraction of indyref 2, 3, 4 and 5, maybe we can end food poverty.
The hon. Lady is absolutely right that we do not want anybody, particularly those with a disability, to struggle in accessing our welfare system. I can assure her that I will be working very closely alongside my hon. Friend the Minister for Disabled People, Health and Work to ensure that our welfare system does deliver in that regard.
As a member of the Work and Pensions Committee, I welcome the Minister to his post. We look forward to questioning him in his current role. If, as he has said, the economy is so strong and wages are so great at the moment, that surely tells us that food prices, and fuel prices, are rising higher than wages. Is that the case, or is he suggesting that food poverty exists for another reason?
I thank the hon. Gentleman for his intervention. I look forward to appearing before the Work and Pensions Committee in due course, and I hope that our relationship will be robust and, no doubt, critically constructive. He raises some good points. I have already set aside time to meet the Scottish National party’s spokesman on these issues, and I also look forward to sitting down with the hon. Gentleman to look at them.
A working-age adult living in a household where every adult is working is about six times less likely to be in relative poverty than one living in a household where nobody works. A child living in a household where every adult is working is about five times less likely to be in relative poverty than a child in a household where nobody works. There is only a 7% chance of a child being in relative poverty if both parents work full time, compared with 66% for two-parent families with only part-time work. We will continue to reform our welfare system, so that it promotes work as the most effective route out of poverty and is fairer to those who receive it and to the taxpayers who pay for it.
Universal credit is, of course, at the heart of these reforms and will help tackle poverty by helping an extra 200,000 people into work. It is a modern benefit with one monthly payment that adjusts to earnings, avoiding the cliff edges associated with the legacy benefits that it replaces. It will also be £2 billion a year more generous than the previous system. A number of Members across the House have raised concerns, and as a Government we have responded to those concerns by making changes to remove waiting days and make bigger advance payments available. In the last Budget, we announced a £4.5 billion cash boost, which will make a huge difference to the lives of working families and provide extra support for people moving on to universal credit.
I thank the Minister for that, but the problem with the advance payment is that it is very much seen as a loan. Is the Department, as it previously indicated to the Work and Pensions Committee, looking at whether the advance payment could become the first payment, which could relieve the reliance on food banks and deal with food poverty?
I thank the hon. Gentleman for his further intervention. As I said, we have made improvements to the initial UC assessment period, including the removal of waiting days and advances of up to 100% of the indicative first payment. It is important to say that the advances are 100% interest-free, and people have to pay them back over 12 months; as of 2021, it will be over 16 months. However, he makes a fair point. We need to ensure that claimants are working with their coaches and are absolutely clear about what they are taking on. It is not a loan; it is an advance. We have to ensure that work coaches are advising appropriately and ensuring that options are available to the claimant. They do not have to take it all in one go, for example; they can take a small amount as per their needs at the time. I am willing to discuss that with him in further detail.
I mentioned the concerns that were raised and the changes that were made in the last Budget. In particular, we have put an extra £1.7 billion a year into work allowances, increasing the amount that hard-working families can earn before the taper is applied. That is an extra £630 a year for 2.4 million families, many of them in Scotland.
We are also working in partnership with Citizens Advice Scotland to provide a consistent UK-wide service and assist claimants to successfully make their universal credit claim. The Citizens Advice Help to Claim service offers tailored, practical support to help people make their claim and receive their first full payment on time. That service is available online, over the telephone and face to face through local Citizens Advice services. We are also working closely with the Scottish Government to help them achieve their goals on UC flexibilities. For example, UC Scottish choices are now available to all claimants in Scotland on full service who are not in receipt of a DWP alternative arrangement plan.
No one in the Government wants to see poverty increasing or reported increases in food bank use. The recent poverty statistics are, of course, disappointing. However, child poverty in Scotland has remained the same or decreased across all four of the main measures in the three years to 2017-18, compared with the three years to 2009-10. The statistics published in March this year represent a year—2017-18—when some families struggled to keep pace with rising costs, including a higher level of inflation, which the hon. Member for Glasgow South West (Chris Stephens) referred to, but since then there has been a year of real wage growth. Earnings have outpaced inflation for 13 months in a row, with real wages growing 1.6% on the year. The statistics do not reflect the substantial additional funding for our welfare system announced in the last financial year, which are only just beginning to take effect.
Increasing the rate of employment is not, however, the limit of our ambition. The Government have gone much further than previous Governments to support working people and have set out their ambition in the Chancellor’s spring statement to end low pay across the UK. UC works alongside other policies introduced by this Government to promote full-time employment as a way out of poverty and towards financial independence. In particular, it offers smooth incentives for people to increase their hours, and we are confident that as UC reaches more working families we will see more working full time.
Our national living wage, which is among the highest in the world, is expected to benefit more than 1.7 million people; and the increase to £8.21 from April this year will increase a full-time worker’s annual pay by more than £2,750 since 2016.
The hon. Gentleman is right: we should learn from things that are being done really well across the country and seek to share that best practice. I join him in thanking the organisations that make such a big difference.
One moment.
As I said, the Government also want to build a better understanding of household food needs, to ensure that we are targeting support at those who need it most. That is why we have worked with the Scottish Government, food insecurity experts and the Office for National Statistics to introduce a new set of food security questions in the family resources survey, starting from April 2019. In future, we will be able to monitor the prevalence and severity of household food insecurity across the UK, and for specific groups, better to understand the drivers of food insecurity and identify which groups are most at risk.
The hon. Member for Coatbridge, Chryston and Bellshill also spoke about the recent trends in food bank use. I reassure the House that I am very much alive to the issue. I have already had an introductory conversation with the chief executive of the Trussell Trust, and I plan to visit a number of food banks to understand more about the experiences of food bank users. I echo comments made by hon. Members thanking volunteers across our country and those who donate to food banks.
I want to finish on food banks. My Department is also exploring whether, building on existing good practice, working more closely with food banks can help us to identify and better support any customers who may, for a variety of reasons, not be receiving the full formal support to which they are entitled.
I want to come back on two comments made during this debate. The hon. Member for Glasgow Central (Alison Thewliss) asked about those with no recourse to public funds. I hear her point. Those people and how they are supported is a matter for the Home Office, but I will take her point away and have that conversation with my Home Office counterpart.
The hon. Member for Strangford (Jim Shannon) mentioned pensioner poverty. The percentage of pensioners living in poverty has fallen dramatically over several decades. Relative poverty among pensioners has halved since 1990. The Government will be spending £121.5 billion on benefits for pensioners this year, including £97 billion on the state pension. We are absolutely committed to the triple lock for the rest of this Parliament.
In conclusion, I would like to reaffirm our view that the long-term approach that we are taking is the right one if we are to deliver lasting change. However, we are not complacent: this is an area of real focus for me and the Department. I look forward to working with colleagues from across the House, the devolved Administrations and charities to tackle poverty in all its forms.
Question put and agreed to.