(5 years, 3 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.
This information is provided by Parallel Parliament and does not comprise part of the offical record
My hon. Friend raises an important point. Not only do stakeholders and those with real, genuine frontline experience work closely with us and help to shape our policies, but we recognise that they can play a key part on the frontline. I therefore very much welcome the announcement that Citizens Advice will be present across the jobcentre network to provide additional support for claimants above and beyond what our frontline staff do.
We know that approximately 20,000 people died before the Department was able to review their backdated ESA payments. That must not happen with the severe disability premium payments. Has the Department investigated whether it has happened to claimants who were owed such payments? If so, how many? In the event of death, who will receive the back payments?
The key priority is to make sure that we get money to the most vulnerable in society as quickly as possible. That is why our commitment remains that we will bring forward the regulations at the earliest opportunity.
(5 years, 3 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, Mr McCabe. When I saw your good self and the Minister sat there, I thought that I was in a Select Committee. I was ready to ask him impertinent questions—
I will perhaps have to quote the Minister’s comment back at him during a future inquiry.
I congratulate my constituency neighbour, my hon. Friend the Member for Glasgow Central (Alison Thewliss), on all her work on working at height, which is particularly prevalent in sectors such as construction. I come from a trade union background and was a Unison activist in Glasgow, and we were very aware of such issues, in particular those around whether workers should get additional payments for the context in which they work—at height, for example—and so on. We should remember that in some sectors of the economy, blacklisting by employers was prevalent, often of individuals who expressed the health and safety concerns of workers. That is a real problem and it is still happening. Blacklisting is illegal, but some evidence presented to the Select Committee on Scottish Affairs last year suggested that the practice continues. I refer Members to the early-day motion in my name that calls for a public inquiry into blacklisting.
Every fall from height can have life-altering consequences for workers and their families. The working-at-height culture needs to improve, as the APPG report demonstrates clearly, but sadly the issue does not yet appear to be at the top of decision-making agendas. Lack of data prevents us from understanding the causes of falls from height, which is compounded by a cultural obstacle to supporting people to report unsafe practices.
This excellent report looks at the issues that the right hon. Member for Delyn (David Hanson) talked about, in particular the four primary recommendations: the enhanced reporting system; the appointment of an independent body to allow confidential, enhanced and digital reporting of all near-misses, to be shared with Government and industry to inform health and safety policy; the extension of the Working Well Together programme; and the extension of the Scotland fatal accident inquiry process to other parts of the United Kingdom.
Another concern to share is that, under the coalition Government, the HSE suffered cuts and job losses. Many of us from a trade union background and those Members in Parliament at the time had real concerns about the deregulation of health and safety and the reporting of it. I hope that the Minister will tell us what the existing staffing levels are at the HSE, because I would be concerned had the numbers reduced over the past 10 years. Clearly, we should not be cutting jobs at the Health and Safety Executive.
In Scotland, under section 29 of the Inquiries into Fatal Accidents and Sudden Deaths etc. (Scotland) Act 2016, Ministers are required to report on fatalities. Fatal accident inquiries are the legal mechanism through which deaths in the workplace are investigated. Inquiries are mandatory for deaths occurring in the workplace, as well as in custody, or when the circumstances are deemed to be in the public interest, and they are usually held in the sheriff courts. The outcomes of all fatal accident inquiries since 1999 are publicly available and can be accessed online via the Scottish Courts and Tribunals Service. The all-party group calls for an equivalent system to be introduced in the rest of the UK, to ensure that employers are held to account for fatal injuries occurring as a result of workers falling from height, and that incidents are reported with sufficient information.
The Scottish Government are looking at the law on culpable homicide and considering proposals made by Members of the Scottish Parliament. For example, Claire Baker MSP launched a consultation, which ran from 7 November to 23 April this year, on how the law on culpable homicide can be tightened, and the related Bill appears to have cross-party support.
Companies can be prosecuted under the UK Government’s Corporate Manslaughter and Corporate Homicide Act 2007. We support the Act, but have concerns about the lack of prosecutions under it. Will the Minister talk a bit about that when he responds to the debate? Individual directors can also be charged with the common law offence of culpable homicide or with offences under health and safety legislation, but the SNP position is that if existing legislation can be improved by devolved legislation, we will consider what further steps should be taken.
In the 2018-19 programme for government, the Scottish Government committed to establish in spring this year a new support service—developed and delivered with Victim Support Scotland—to give families bereaved by murder and culpable homicide dedicated and continuous support. That is an important part of the Government’s programme. Wider work to look at the law of homicide is also under way. The Scottish Government asked the Scottish Law Commission to consider that law, and examination commenced in February 2018. Our view is that every fatality at a place of employment in Scotland should be investigated, and that the nature of the deaths requires a detailed and often lengthy investigation involving complex, technical and medical issues and expert opinion. The law already allows individual directors to be charged, which of course is necessary.
I congratulate my hon. Friend the Member for Glasgow Central. Clearly, Scottish National party Members are leading the way in this Parliament in promoting the rights of workers. My hon. Friend the Member for Glasgow East (David Linden) is campaigning against discrimination against young people in the living wage; my constituency neighbour, my hon. Friend the Member for Glasgow South (Stewart Malcolm McDonald), is producing legislation on unpaid work trials; and I am promoting—this debate is another opportunity to do so—the Workers (Definition and Rights) Bill, which touches on issues such as a worker’s status. People in industries such as construction believe that they are workers or employees, but later find out that they are somehow self-employed. We need to get on top of the issue of precarious work.
Thank you, Mr McCabe, for chairing this debate. I commend to the House the report of the all-party parliamentary group on working at height.
(5 years, 4 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
I beg to move,
That this House has considered pension credit changes.
It is a pleasure to see you in the Chair, Mr Davies.
14 January was a pivotal day: not only was there a meaningful vote on Brexit but on that day the Government announced in a written statement that from 15 May 2019 both partners in a couple need to reach state pension age to claim pension credit or pension age housing benefit. That change has been on the statute book since 2012, but the announcement was made quietly through a written ministerial statement on one of the busiest days in Parliament, only four months before it was due to come into effect. Full details of the impact have not yet been published, nor do we have detailed information on how the proposal will operate in a wide range of possible circumstances.
My first question for the Minister is: why was the proposed change made in a written statement and not by a vote of the House? That sets a dangerous precedent—a change put on the statute book two Governments ago, two Parliaments ago, in 2012 is being made now via a written statement instead of another vote in the House.
The Government say that 115,000 mixed-age couples receive pension credit and/or housing benefit. Couples who claim after 14 May could be up to £7,000 worse off compared with a couple claiming now. I will come back to those figures and give some examples. The Department for Work and Pensions estimates that in 2019-20, 15,000 mixed-age couples will be affected by the change. That rises to 30,000 in 2020-21 and 40,000 in 2021-22. In theory, the change applies only to future claimants, but it will also hit any pensioner in a mixed-age couple in receipt of pension credit whose claim is interrupted. As Age Scotland and Age UK point out, couples claiming in the future could be nearly £140 a week worse off than before the change—as I said, an incredible £7,000-per-year cut for some pensioners.
That figure is noteworthy when taken in the context of another one: 40% of people entitled to pension credit do not claim it, whether through lack of knowledge or because of accessibility issues. What are the Government doing to assist such people to take up pension credit, given that alarming figure of 40%?
Age Scotland and Age UK provided me with a figure for an average Glasgow South West constituent in two scenarios, both taking into account state pension, pension credit, housing benefit, council tax reductions, health vouchers and the cold weather payment, and both for a mixed-age couple renting a one-bedroom, council tax band C property, paying rent of £510 a month and receiving state pension of £160 a week.
In the first scenario, the couple would receive total benefits of £395.46 a week, £1,581.84 a month or £19,097.08 a year; the total annual state pension income would be £8,320, so the income lost if no benefits were received and they relied only on some state pension would be £10,777.08. Secondly, the charities investigated how the same couple would fare if they were claiming universal credit, which is already a decisively less generous benefit and has well documented difficulties in claiming and sustaining payments. Even so, they would face a total annual loss of £6,751.24.
Under the universal credit rules, rather than the existing state pension credit situation, older people face a particularly substantial loss of income—a devastating loss, especially for those on low incomes. It is therefore vital that in the first instance we encourage everyone eligible for pension credit to claim it. It is scandalous to think that people would be financially better off if they lived apart than if they lived together.
I congratulate the hon. Gentleman on securing the debate. He is making a powerful speech. A lot of people who reach pension age are struggling to be able to work, although they may not be able to access disability or sickness benefits because of their condition. Does he agree that this change will affect such couples in particular, many of whom include a WASPI—Women Against State Pension Inequality Campaign—woman unable to claim the state pension or, as part of a couple, pension credit? Those women will be doubly dissatisfied.
The hon. Lady is absolutely correct. I will come on to the 1950s-born women and the double whammy affecting them. She makes an excellent point about those on benefits and low income and, as she will be aware because we have just come from the Select Committee on Work and Pensions where we were discussing “No DSS” adverts in the private rented sector, the change could have devastating implications for those people too.
Will the Minister therefore accept the calculations from Age UK and Age Scotland? Will he advise us whether there has been a recent equality impact assessment since January’s announcement? I understand that there was an impact assessment back in 2012, but will he tell us whether there has been an updated equality impact assessment on the pension credit change?
In 2010, a woman aged 60 and her partner aged 65 would both have been entitled to their state pension and both been considered pensioners for pension credit. From 15 May 2019, they will have to wait an extra six years to be in that position. In essence, the change will impose a financial penalty on pensioners who have a younger partner. That is why some WASPI women in Glasgow refer to the change as the “toy boy tax”, as well as the “age gap tax”.
According to the Joseph Rowntree Foundation, one in six pensioners in the UK already live in poverty. This Government policy will mean that many pensioners might find themselves in the position of being financially better off if they split up with or lived apart from their partner. Pensioners should not be put in a position where it would be better living alone.
As the hon. Member for High Peak (Ruth George) outlined, the policy change will adversely affect women born during the 1950s—precisely the group impacted by other Government decisions to raise the state pension age. Anyone hit by that double whammy will be entitled to feel especially aggrieved, and I can tell the hon. Lady and the Minister that certainly in my constituency the campaigners for the 1950s-born women do feel especially aggrieved by the change and regard it as a double whammy.
The public will be left with little faith in the Government and their ability to deliver pension justice for women born in the 1950s. The Women’s Budget Group states that
“pension credit is the single most important poverty alleviation mechanism for older people that we have in this country”.
The Government should make time for a new debate and a vote on the change, given that the decision was made seven years ago—two Parliaments ago. Rather than just enforcing the change, it is time to have another debate and vote.
According to OECD figures, the UK has the lowest state pension in the developed world; the change will only increase discrepancies. The Joseph Rowntree Foundation’s “UK Poverty 2018” report highlighted the fact that previous falls in pensioner poverty were in part due to the introduction of pension credit. Universal credit will not adequately meet the needs of a household of retirement age because of the strict requirements for seeking work, such as signing on at the jobcentre, qualifying as an unpaid carer or proving inability to work. Changes should be immediately introduced to ensure that older people do not suffer as a result. The policy change will be seen as a stealth tax on ageing couples on low incomes.
The Department for Work and Pensions has confirmed that it expects to save almost £1.1 billion over the next five years due to the changes. Tom McPhail, head of policy at Hargreaves Lansdown, commented that
“the impact on individuals and their household spending will amount to hundreds or even thousands of pounds per year and for some it could present real problems”.
The meagre savings that the Government will make from the policy change will not match the disastrous consequences that will ensue. If the change is not abandoned, it is anticipated that there will be a consequential increase in demand for support from the Scottish welfare fund, which provides crisis grants to families and people in Scotland on low incomes.
Pensioners could face a heavy financial penalty for having a younger partner. That could affect the health and well-being of those affected and is likely to increase the number of older people living in poverty. Pensioners should not be put in a situation where they could be better off living alone and claiming pension credit than living as part of a couple and receiving universal credit. The change could put pressure on existing relationships. Although the intention is to protect those receiving pensioner benefits before 15 May, they could lose their entitlement if their circumstances change, even if only for one day.
Does the hon. Gentleman share my concern that thousands of pensioner couples are affected but unaware? I highlighted to the Minister before the recess my concern that the gov.uk calculator incorrectly shows people that they cannot claim pension credit when, in fact, they are entitled to it.
The hon. Lady makes an excellent point; the lack of information has been a real issue, particularly for women born in the 1950s, many of whom did not receive letters about the pension changes. I have previously joked that I would be more likely to find a golden ticket in a Wonka bar than find a woman who received a letter about the pension changes.
The universal credit system was designed for people of working age, not pensioners. For example, it includes no additional support for a couple where one member is not expected to work because they are over state pension age.
I thank hon. Members for attending the debate. The pension change is a toy boy tax for many; it is certainly an age gap tax. I look forward to the Minister’s response. I hope he will tell me that the changes will be paused so that we can vote in the House on whether they should take place.
With respect, Parliament has debated the matter and made a decision. The hon. Lady will be aware of the 2011 equality impact assessment, the 2012 risk assessment, the universal credit impact assessment, and the ad hoc statistical analysis published on 28 February, which outlined the number of people affected, as the hon. Gentleman mentioned—approximately 115,000 mixed- age couples in the United Kingdom.[Official Report, 16 May 2019, Vol. 660, c. 4MC.]
I want to come back to the ministerial statement. There have been various changes to the political make-up of Parliament since 2012. There must be at least 200 new MPs since then, and I think they would want to consider the change, particularly in the light of other benefit changes, as the hon. Member for High Peak (Ruth George) said. Did the Department consider a fresh debate? The Minister mentioned the quality impact assessment. Could he tell us whether a fresh equality impact assessment was made this year prior to the announcement on 14 January?
I cannot go back to the specific debates in 2012 and say chapter and verse what was discussed at that stage, but it is a relatively normal procedure for this House to legislate on matters that will be contingent on a written ministerial statement or a commencement order. That standard practice was followed in this case. I am not aware of a fresh equality impact assessment being done. The equality impact assessment was done in respect of the Welfare Reform Act.
I will deal with that point and then perhaps return to it in more detail later. I accept that there are other points relevant to this debate, but it is inevitable that devolution will come up when one discusses welfare with a colleague from the Scottish National party and other Scottish colleagues. Certainly, it has come up in relation to the campaigns on the state pension age.
My hon. Friend will be aware of two facts in particular. First, Jeane Freeman, who was my opposite number as the Scottish pensions Minister, wrote to my predecessor on 22 June 2017 concerning the powers under sections 26, 28 and 24 of the Scotland Act. Of particular interest is section 26, about which she wrote:
“This power is limited to providing help with ‘short term needs’, and those needs must require to be met to avoid a risk to a person’s wellbeing. That would not readily allow assistance to the majority of the women affected by the acceleration of the increase in their State Pension Age. Their needs and the risks to their well-being would have to be assessed individually.”
She also dealt with the creation of a new benefit under section 28, which is a possibility, and the top-up of reserved benefits under section 24, which is a wide-ranging power to make discretionary payments.
That deals with the original point in 2017. The point can then fairly be made that if the Scottish Government disagree with any of the UK Government’s welfare reforms, they have powers to do something about that in Scotland. I want to make it absolutely clear that, in addition to the substantial support that the UK Government are providing, the Scottish Government have significant new powers available to them to tailor welfare provision for people in Scotland. Although pensions themselves are very definitely a reserved matter, the Scotland Act gives the Scottish Government the ability to use a wide range of new welfare provisions.
I was asked specifically whether I have been engaged with by Scottish Ministers who seek to provide specific top-up support for mixed-age couples. I have not been made aware of any such information being provided to me. Frankly, it is not for the UK Government to do that. If the Scottish Government wish to do that, the ball is in their court, given their powers under the Scotland Act. Clearly, that is a matter for the hon. Member for Glasgow South West to take up with the Scottish Government at Holyrood.
Let me return to the change itself, which ensures that the younger partner has the same work incentives as others of the same age. Those claiming universal credit have access to tailored support from work coaches to help them find work, and universal credit is designed to ensure that work always pays, which is not the case for pension credit.
Let me try to address the specific point raised by the hon. Member for High Peak (Ruth George). First, I endeavoured to address her emails of 10 and 11 April, which arrived shortly before Easter and were looked at by the Department over Easter. I have written her a letter. We exchanged comments before the debate, and I accept that she has not received that letter. I signed it off late yesterday afternoon, on my first day back in the Department; to be fair to the Department, there is no criticism of it whatever. I also wrote a letter to the hon. Member for Glasgow South West, but we managed to get that to him in time.
I am conscious that the hon. Lady raised a specific fault. I am happy to put it on the record that there was an acceptance that that was a fault, and that, as of 18 April, it has been fixed. The reality of the situation is that the calculator provided the wrong outcome in one particular instance—for couples where one member is in receipt of carer’s allowance and the other retains an underlying entitlement to carer’s allowance. I will leave her to look at the specifics of the letter when she receives it later today. I am grateful to her and the Derbyshire team for bringing the issue to our attention. It has been rectified, and I hope the position on that matter has been addressed.
The hon. Lady raised a separate issue about pension credit generally. It is entirely the case that we are attempting to encourage people to be in a position to take up pension credit in a particular way, and there most definitely is a desire for that to happen. All 115,000 existing mixed-age couples involved were written to subsequent to the decision being made in January. Although I do not have a regional breakdown of that figure, 8,000 people will potentially be affected in Scotland. I do not have localised figures for the hon. Lady’s area.
I want to stress that the change does not in any way affect entitlement to state pension or the level of state pension. Mixed-age couples who are already receiving pension credit or pension-age housing benefit on 14 May will not be affected for as long as they remain entitled to either of those benefits. As I said, we have written directly to those couples to inform them of the change. The change therefore will apply mainly to working-age couples currently claiming means-tested benefit, or to mixed-age couples who apply for benefit only after the date of the change.
I thank the Minister for giving way again; he is being very generous. On the calculations, has he had any meetings with Age UK or Age Scotland, which indicate that people could be £7,000 a year worse off as a result of the change?
Age UK has met repeatedly—as recently as last month, as I understand it—with civil servants and special advisers in the Department for Work and Pensions. It is almost impossible to state what a future calculation will be without taking into account whether the individual will apply for a job and what their allowances for caring responsibilities and their other entitlements will be. There is a requirement and a desire for universal credit to incentivise and reward paid work, while pension credit is intended to provide long-term support to pensioner households who have left the labour market permanently through retirement.
(5 years, 4 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 serve under your chairmanship, Sir Henry. I thank the hon. Member for North West Durham (Laura Pidcock) for securing the debate. I pay tribute to my parliamentary casework team, and to Citizens Advice and Money Matters, local organisations that work with the casework team to ensure that people who are going through the ESA and PIP system or who have other issues get their social security. The assistance that they provide to my constituents is invaluable. Without those organisations, it is quite clear that more people would suffer.
I will confine my observations to a Work and Pensions Committee report. As a member of that Committee, I can say that, such was the level of interest in PIP and ESA assessments, 200 organisations submitted evidence and there were 3,500 individual submissions. That tells us more than anything else the level of interest, and the pain and suffering that people are going through as a result of these assessments.
Let us look at the Department’s own statistics. There have been 3.1 million ESA applications, with 1.7 million assessments completed, but with payments and awards issued to only 1 million people. That suggests low confidence and trust in the assessment system. The hon. Member for Cheltenham (Alex Chalk) quite rightly said that it is important that the Department and the assessment process are correct first time. However, that is not the experience of far too many people, which is why I am delighted to take part in this debate secured by the hon. Member for North West Durham.
The simple fact is that claimants can have multiple health conditions, which can mean that they have severe limitations. There was a recommendation to commission and publish independent research on the impact of the application and assessment processes of both ESA and PIP on claimants’ health. Will the Minister tell us whether the Department accepted that recommendation and will take it forward?
Claims are often made by telephone, Sir Henry, and you and others will be aware that one campaign I launched since I got here was to abolish the telephone tax. I am delighted to say that the Government finally listened, and that the telephone tax was abolished. It is ludicrous to suggest that it should cost claimants phoning a telephone helpline 55p a minute, and I am delighted that that has now gone. However, as a result of health conditions, there are claimants who require communications in specific formats—I think particularly of those with hearing impairments—and we need to make sure that there are other methods for them to apply for ESA or PIP and the like. I hope that the Minister will update us on that.
The hon. Member for North West Durham was absolutely right on home visits. Maximus told the Select Committee that decisions on any request for home visits that they would carry out would be based on medical fact, not medical opinion. I hope that the Minister will say a bit about the guidelines on home visits that the Department gives to assessors. That brings us to the assessors and their knowledge; they can have partial knowledge or no knowledge at all of specific conditions. I still remember asking Maximus and Atos who a claimant with multiple sclerosis and a history of depression would see if they were to visit an assessment centre. The answer came back that they would see a general occupational therapist. If the assessment process is to have that conditionality, which I personally oppose, claimants must see people at the assessment centre with some knowledge or expertise on specific conditions.
We really need to improve understanding among healthcare and social care professionals and claimants about what constitutes good evidence, including measures, monitoring and reporting, and the supply of evidence. For far too many people, the assessment process has become a lottery. I agree with the recording of assessments, because we really need to end the mistrust around assessments. The fact is that appeals are upheld based on oral evidence given at the original assessment, not at the appeal. That is why recording is a must, and I hope the Minister will tell us that there has been progress on that.
A full copy of the report should be given, to increase transparency, and the quality of reports really must improve. We have contractors who have not once hit their targets for acceptable reports. If they cannot hit that target, we have to ask why they were given the contracts in the very first place. If a contractor failed to hit targets in any other part of the public sector, they would have that contract taken off them. I hope that the Minister can tell us what feedback and quality control measures the Department has put in place, because far too many people are suffering under this system. We have to ensure that it improves. I am delighted that the Scottish Government will do away with private contractors to undertake assessments. The Westminster parties should consider that too.
(5 years, 4 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
I support the equalisation of the pension age. It is quite astonishing for the hon. Lady to almost deny the devolution settlement. This is how devolution works. Different parts of the United Kingdom can pursue different policy objectives. The hon. Lady is almost arguing for the abolition of the Scottish Parliament and Scottish Government’s ability to take different decisions and pursue different policy objectives. Why not accept that they have the power and ability to take action to compensate those women and support the Scottish Government in taking a different approach if they choose to do so?
Given that the hon. Gentleman is advocating his support for 1950s-born women, is he in favour of the UK Government’s pension credit changes, which will go through in May, which are being referred to by WASPI women as a toy boy tax?
I support the changes. I have supported a number of my constituents. As I have said, the equalisation of the pension age is right. People are living to be older, and it is right that men and women are entitled to their pension at the same age. This is another example of the Scottish Government’s failure to take action when it has the power to do so. Despite all the rhetoric demanding more powers, they have an inability to use those powers.
Devolution of welfare by this Conservative Government has made the Scottish Parliament one of the most powerful devolved Parliaments in the world. It is therefore perhaps unsurprising that the Scottish Government have found taking on those powers such a challenge. The latest delay is surprising, given the SNP’s criticism of the system they are inheriting. It is important that the Department for Work and Pensions continues to do all that it can to ensure the orderly transfer of welfare powers and to ensure that the recipients—the people of Scotland; our constituents—continue to receive the support they need.
That is entirely up to the Scottish Government. It is devolved. It is another ball that they have dropped and are not prepared to pick up.
The state of preparedness of the Scottish Government’s social security agency is such that it is unable fully to administer and make its annual payments of circa £2.9 billion. The Scottish social security system is apparently failing to fulfil, at least in part, one of its own stated principles, which is
“to be efficient and deliver value for money”.
I understand that Audit Scotland is due to report on a further audit, of how effectively the Scottish Government are managing the delivery.
The Scottish Government’s stated aim of improving benefits for disabled people and people with ill health is laudable, and I applaud it. However, I note that assessments may not be carried out by the private sector, so there is potential for an already overstretched public sector to inherit that significant, important responsibility. In an earlier debate, I acknowledged previous concerns about the DWP assessments that are carried out by the private sector, and those concerns are being addressed. The Secretary of State for Work and Pensions advised in February 2019 that the average wait for an assessment had been reduced by nearly four fifths since July 2014, while the average end-to-end claim journey had been significantly reduced.
No. My concern with the Scottish plan of action is that constituents complain about the public sector, for both the length of time that they have to wait for an NHS appointment and the shortage of specialist medical staff. That said, I fear that either the waiting time for those constituents could increase or the decision-making process for benefit claimants could take longer. I note that the Scottish Government, in response to recent questions, have proposed to do away with some assessments and re-assessments unless there is no other way to obtain information.
In future, constituents need clarity. Will the Minister consider enhancing public awareness of the revised timetable for the Scottish Government—assuming that that is much wanted and desired—in their responsibilities to devolved benefits? The current situation is not good for the people of Scotland who rely on those benefits; it is not good for the Scottish devolution settlement; and it is not good for Scotland. It lies firmly and squarely at the door of the Scottish Government.
No, I am answering the hon. Member for Berwickshire, Roxburgh and Selkirk first. He does not appear to have a problem with the delay or the problems in the roll-out of universal credit or the roll-out of PIP. He has never mentioned those before, despite the constituency case load that I imagine he has in those two areas, yet he uses this place as a battering ram to criticise the Scottish Government. That says more—[Interruption.] That says more about the hon. Gentleman’s intentions than it does about the Scottish Government’s.
I have listened to this gang of Trumpists shout and bawl and try to shout people down. Does my hon. Friend agree that the main issue, the real issue, is that the DWP and Social Security Scotland will truly share clients? Not once have we heard from a Conservative in this debate about clients—about people, about the poor—and what that means. The Conservatives have completely ignored the fact that universal credit is being delayed to 2023, which will have a real impact on all claimants.
I thank my hon. Friend for his intervention. He serves on the Select Committee on Work and Pensions, so he knows these issues well. Of course, what the hon. Member for Berwickshire, Roxburgh and Selkirk and some others in the debate forgot to talk about was the fine work that the SNP Scottish Government, as a minority Government, have achieved by gaining cross-party consensus to protect the people of Scotland from the worst damage being inflicted by this poverty-inducing Tory Government. The hon. Gentleman’s constituents do not need to pay the bedroom tax and can still receive council tax benefit. If they are in receipt of carer’s allowance, they will have had a significant uplift in their payments. They can still get access to education maintenance allowance. Some 316,000 low-income households in crisis in Scotland have been helped to buy essential items, such as nappies, food and cookers, through the Scottish welfare fund—a local crisis grant system almost completely abolished elsewhere by the Tories. And we have set a clear path to deliver a new—sadly, it is limited to just 15% of spend—social security system based on dignity and respect. That is all with 55% of taxpayers in Scotland paying less than they would elsewhere in the UK. It is a more progressive tax system that sees those at the top paying a little more and those on the lowest incomes paying a little less.
(5 years, 5 months ago)
Commons ChamberThe right hon. Gentleman has raised that with me before. I am always looking at ways to improve the way we deliver universal credit. I have said that I will look at that, and I will continue to engage with everybody across the House to find ways of improving the delivery of universal credit. I feel that the advances that are available to people on day one when they apply for universal credit are the way to ensure that people have access to money as soon as they need it. That is working well, with over 60% of claimants now taking advantage of it.
But the problem with that answer is that, as the Chair of the Work and Pensions Committee said when he visited the Glasgow South West food bank a couple of weeks ago, people are not taking the advance payment because it is a loan, and they do not want to be in more debt. How much does it cost to administer advance payments, and would it not be better if they were the first payment for all claimants?
The hon. Gentleman can call it a loan; I can call it an advance. The fact is that it is a way of getting money that will be paid to the claimant to them in advance of the date they would receive it. I do not see it as a loan in the same way. I am looking at ways to ensure that work coaches in jobcentres can position it in the right way, so that claimants do not face it with fear, as he described. I want people to have confidence. This is the money that they will be receiving. If they want to effectively receive 13 payments over 12 months, that is a choice they can make.
(5 years, 5 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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My hon. Friend is another champion in his constituency, ensuring that disabled residents have the maximum opportunity that so many of us take for granted. We are spending £10 billion more in real terms on disability benefits than we were in 2010, and that is making a difference to some of the most vulnerable people in society.
It is good to see that the Minister survived his grilling from the Work and Pensions Committee yesterday. Has he seen the report from the think-tank Demos, which has found that there is a “chronic” lack of trust between disabled people and the Department, and that 60% of disabled people do not believe that it understands their concerns? What will he do to address that perception?
(5 years, 5 months ago)
General CommitteesIt is good to see a fellow Glaswegian in the Chair, Mr Gray. It is the greatest city in the world, as you and I are well aware.
First, the Government suggest that the draft regulations will protect citizens’ rights “as far as possible”. However, it is clear that there can be absolutely no guarantees that the current rights of UK citizens in the EU will be protected.
Secondly, I think that the European Statutory Instruments Committee was correct to decide that the statutory instruments should be upgraded to the affirmative procedure, as opposed to the negative procedure. I say that as a former member of that Committee—I thought the Whips were disciplining me for something. It is a Committee that always takes the issues very seriously.
Thirdly, there appears to be a paradox in the UK Government putting in place mechanisms for the operation of social security co-ordination agreements in the event of no deal. The statutory instruments will enable the UK Government to ask claimants to provide them with data to determine whether the UK or another relevant member state is responsible for the payment of social security. The explanatory notes state that should the information be insufficient, the UK will simply not make the payment, even if it is its competence to do so. What information will claimants be asked to provide? Will claimants have to obtain the information themselves at their own cost? What deadline will the UK Government give to such claimants? Will the Minister also tell us what the determination of “sufficiency” is? How will such determinations of sufficiency be communicated to claimants? These are serious questions, and the Government must answer them.
What is the situation for people who have worked in the UK, whether they are UK or EU nationals, but who do not live in the UK? In the event of no deal or there being no reciprocal arrangements, will their national insurance contributions be put on hold? Will they be inaccessible for the duration until the person provides sufficient information? What will the Government do with those national insurance contributions until the person provides the information? Is there a cut-off point? If that person passes away, will the national insurance contributions pass to their next of kin?
Will the Minister confirm that a UK claimant in the EU will lose their right to provisional payments by the DWP during disputes over competence? Will he also confirm that workers who are resident outside the UK, whether UK or EU nationals, could be subject to legislation in two different states at the same time? The entire point of the social security co-ordination regulations at the EU level is to stop that from happening.
It is clear that social security co-ordination could essentially cease with these draft regulations, meaning that there would be no protection for those to whom it currently applies. This situation adds to the arguments of those of us in this House who believe that we should be extending article 50 and putting a vote to the people.
I note the hon. Lady’s point but, as I said, the impact assessment was in relation to any material changes. We do not believe that there are any, as these are merely technical changes to retained law.
A point was raised about data-sharing. We will of course continue to work closely with the EU so that the first port of call for contribution queries is other member states. The instruments include provisions to ensure that the UK can continue to share data with EU member states when they are applying the co-ordination regulations. If I have not been able to answer any questions—
The Minister is obviously going to tell us that he is going to write to us on some of the questions. Could he also write to members of the Select Committee on Work and Pensions about this? Will he be liaising with that Committee on the regulations in the event of no deal, and what it means for social security claimants?
I will, of course, write to the hon. Gentleman. When it comes to the Select Committee and other bodies of the House, there is always an opportunity to have a dialogue with them. As he will know, DWP Ministers are in front of the Select Committee on a regular basis—I will be making another appearance in a few weeks—so we are always happy to liaise.
In conclusion, the Government are committed to ensuring that the social security system works for everyone post exit day. The draft regulations will help to do that by fixing deficiencies in retained EU law. I therefore commend them to the Committee.
Question put and agreed to.
Resolved,
That the Committee has considered the draft Social Security Coordination (Regulation (EC) No 987/2009) (Amendment) (EU Exit) Regulations 2019.
Draft Social Security Coordination (Council Regulation (EEC) No 1408/71 and Council Regulation (EC) No 859/2003) (Amendment) (EU Exit) Regulations 2019
Resolved,
That the Committee has considered the draft Social Security Coordination (Council Regulation (EEC) No 1408/71 and Council Regulation (EC) No 859/2003) (Amendment) (EU Exit) Regulations 2019.—(Alok Sharma.)
Draft Social Security Coordination (Council Regulation (EEC) No 574/72) (Amendment) (EU Exit) Regulations 2019
Resolved,
That the Committee has considered the draft Social Security Coordination (Council Regulation (EEC) No 574/72) (Amendment) (EU Exit) Regulations 2019.—(Alok Sharma.)
Draft Social Security Coordination (Regulation (EC) No 883/2004, EEA Agreement and Swiss Agreement) (Amendment) (EU Exit) Regulations 2019
Resolved,
That the Committee has considered the draft Social Security Coordination (Regulation (EC) No 883/2004, EEA Agreement and Swiss Agreement) (Amendment) (EU Exit) Regulations 2019.—(Alok Sharma.)
(5 years, 6 months ago)
Commons ChamberI want to raise one topic, which has already been touched on by my hon. Friend the Member for High Peak (Ruth George) in her excellent speech opening the debate: namely, the current five-week delay between claimants applying for universal credit and being entitled to their first payment. Like the hon. Member for Edinburgh West (Christine Jardine), I welcome the change of tone from the Secretary of State and her frank acknowledgment of the fact, long denied by her predecessors, that the roll-out of universal credit has increased demand at food banks.
The theory of the five-week delay was explained to us by the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith) during the coalition period. He explained that people leaving a job will have their last monthly pay cheque in the bank, which will keep them going for a month. In addition to the normal waiting days, which have always been part of the benefits system, that results in a delay of five or six weeks.
There are some obvious problems with that justification. For example, what about those who are paid weekly? The hon. Member for Bexhill and Battle (Huw Merriman) told us that 75% of people are paid monthly—that may well be right; I think it is about right—but what about the 25% who are not? According to the latest annual survey of hours and earnings, 16.2 % are paid weekly and 2.9% are paid fortnightly. What are those people supposed to do during this five-week gap? The Government’s justification for the five-week gap clearly does not apply to them.
I have repeatedly pressed Ministers on this subject. They are not capable of providing a justification for the five-week delay for people who are not paid monthly. I do not blame them, because there is no justification. I confidently predict that we are not going to hear a justification that works for them when the Minister winds up this debate. What about people on zero-hours contracts? They cannot be confident of having had a monthly pay check when they left their last job either. Even more starkly, the five-week gap will also apply to the millions of people about to be transferred from legacy benefits to universal credit.
On zero-hours contracts, does it alarm the right hon. Gentleman that someone on universal credit who comes out of a zero-hours contract job could be sanctioned, whereas if they were on a legacy benefit, they would not be sanctioned?
The hon. Gentleman is absolutely right. On JSA, people could not be sanctioned for that and on universal credit they can. I agree with him that that is wrong. That was revealed in a very recent written answer.
Another written answer to a question I asked last week told us that 57% of new universal credit claimants are taking an advance. The proportion of those applying for universal credit who have a month’s savings, as the policy assumes, is less than half. Most applicants have to go into debt to the DWP and take an advance to stay afloat in the first five weeks. Having been forced into debt in that way by the Department, far too many people find it impossible to get out of it. That is why we have seen the big increase in demand for food banks.
The Secretary of State suggested that the problem was temporary, because of early glitches in the roll-out of universal credit. No doubt it is true that the extraordinary delays that were experienced at the start of the universal credit roll-out did make things even worse, but the fact that over half of applicants are forced into debt by taking an advance, because they do not have the money in the bank that the policy assumes they will have, is why so many people have to use food banks and why so many get into arrears with their rent. This problem is hard-baked into the Department’s current policy.
The Trussell Trust made the point that it found the increase in referrals to its food banks was 52% in areas where universal credit had been rolled out for 12 months or more, compared with a 13% increase for areas where it was, at most, three months since universal credit had been rolled out or it had not rolled out at all. In other words, when universal credit is well-established and has been there for at least 12 months, the increase in referrals to food banks is greater than when universal credit has just been introduced. The Trussell Trust has been pointing that out for a considerable length of time.
Another change of tone I welcome came in another written answer last week. It told us that the Department is now working with the Trussell Trust to see if it is possible to develop—I think this is how it referred to it—a “shared conclusion” about the impact of universal credit on food bank demand. I shall certainly be very interested to see that shared conclusion when it is published. The Trussell Trust briefing for this debate highlights the five-week delay as among the
“urgent problems causing significant hardship”.
It goes on to say that Trussell Trust food bank referrals due to benefit delays are increasingly driven by this initial wait. It is a huge problem that needs to be fixed.
(5 years, 6 months ago)
Commons ChamberWe published ad hoc statistics last week so that we could very clearly respond to the question that the hon. Lady raised.
We know that many people who fall on hard times can go on and off the radar, and some who have been underpaid may since have become homeless. Will the Minister tell us what efforts the Government are making to find these people to give them the money that they are owed and that they will be in desperate need of?
I reassure the hon. Gentleman that people would have been on benefits, so it is not fair to say that—or to characterise the situation as one in which—people would not have had any benefits. Clearly, some people would have benefited from additional payments because we did not give them the right amount of money, but people did have those payments in the first place.