Cost of Living Support

Clive Efford Excerpts

Tuesday 20th June 2023 Commons Chamber

[Tom Pursglove]

The hon. Lady knows, because we meet regularly to talk about these issues, my absolute determination to deliver on greater employment opportunities for disabled people. In fact, as I said earlier, I am meeting the Scottish Minister later today, where this issue is on the agenda. I hope that we can move forward with our reforms in a constructive, collaborative manner, so that they benefit people across the United Kingdom to their fullest extent. We are putting additional resource into Access to Work to get through applications quicker, and a number of process changes have also been made. Those are in the early stages, but the anecdotal commentary I am receiving from officials is that with some of these changes, we are seeing cases processed much more quickly.

[Clive Efford (Eltham) (Lab)]

The Resolution Foundation estimates that mortgage payers will pay an average of £2,900 more in the next year due to increases in interest rates. Some 13% of retirees are still paying mortgages at the time of retirement, and 770,000 households are not claiming pension credit, so do not qualify for pension credit payments. This Government have been a disaster for pensioners, particularly those with mortgages. If the Minister has done his research, can he tell us how many people on pension credit applied for mortgage interest support? How many pensioners are facing interest rates rising faster than their pensions?

Budget Resolutions and Economic Situation

Clive Efford Excerpts

Thursday 16th March 2023 Commons Chamber

[Clive Efford (Eltham) (Lab)]

When I looked at the clock as the Chancellor finished speaking yesterday, I was shocked that his speech had been only an hour. The speech was well padded out. I thought at one stage that he was going to tell us how much the Government planned to spend on paper clips in the next year. He started by announcing that we were not going into a recession, expecting praise for not taking us into a recession that the Conservatives had brought us to the brink of in the first place. It was a bit like an arsonist asking to be thanked, having set light to your house, for then ringing the police. Average energy bills have doubled in the past 18 months, the average mortgage is up by £2,000, and household incomes are lower in real terms than 13 years ago. Those are the worst figures since records began.

We have had 13 years of cuts to our public services, leaving them in a parlous state, and we went into covid with record numbers on NHS waiting lists—2.5 million people. We now have an estimated 7 million people waiting for hospital appointments. According to a Nuffield Trust report published last year, our NHS is short of 12,000 doctors and 50,000 nurses and midwives, and we will need over 500,000 more NHS and care workers by 2030. Where was anything in the Budget to deal with that crisis? Oh, we did have one thing; we had a tax cut for the wealthiest 1% to keep doctors in the NHS. Only the Tories could turn a crisis in the NHS into an excuse to cut taxes for the wealthiest 1% in this country.

Someone with a £2 million pension pot will get a tax saving of £275,000. How is that justifiable? Yet next month the tax thresholds will be frozen. For a basic rate taxpayer, that is £500 a year, for a higher rate taxpayer, that is £1,000, but in this Budget it is somehow justifiable to make that tax cut to the richest 1%. It is just not fair. In the past decade, we have seen the Conservatives stand by while a disproportionate share of national income has gone to the wealthiest. The OBR has confirmed that the cost of living crisis means that living standards will fall by 5.7% over the next two years. Average real-terms household incomes are at a 50-year low due to a decade of consistent low growth. The Resolution Foundation’s “Stagnation nation” report, published late last year, shows that in each decade since the 1970s, average household incomes rose by 33% until 2007, but since the Tories took power, weak productivity growth has fed directly into flatlining wages and sluggish income growth, with real wage growth falling below zero in the 2010s.

The Government’s own figures show that incomes have grown by an average of 9% since 2008—0.7% a year—having grown by an average of 2.2% in each of the previous 20 years. Their excuse is to blame everyone else, but everyone else internationally has been through the same shocks as us. How do the Tories explain the fact that average household incomes in the UK are 16% lower than in Germany and 9% lower than in France, having been higher than both in 2007?

Wealth inequality in this country has grown under the Conservatives, and a failure to tax the assets of the super-rich is leading to widening inequality. The more wealth someone accumulates, the less tax they pay. The Government should be looking at how we tax wealth and tackle that growing inequality. Since the banking crash in 2007-08, it has become easier to borrow money, which has meant that the wealthiest people have been able to buy assets, and we do not tax those assets. I would like to see a discussion about a tax on wealth above £10 million. A 1% tax on that wealth would raise £11 billion. I have spoken to many people who are in that tax bracket, and they say that a 1% tax on their wealth at that level would not cause them to take flight and go abroad—they would not notice it. No one is going to up their family and their children’s future because they would pay 1% tax on their wealth above £10 million.

We could equalise capital gains with income tax rates. There is cross-party support for this measure, which could raise £15.2 billion. It is not a radical suggestion, because it is what Nigel Lawson did back in the 1970s. I welcome the fact that the Government are offering tax relief for investment in R&D, because that could reward people who pay their tax in that way.

It is not fair that people who pay rent to somebody who has bought properties pay national insurance contributions on their wages, but the person they pay rent to does not pay national insurance contributions on the income from that rent. We should look at expanding the range of national insurance to make the system fair. The Labour party supports reform of non-dom status, which would raise £3.2 billion.

There is money in the system that we can use to resolve many of the problems we face with the crisis in our public services. It is a travesty that, given the strikes we are facing and the crisis in the national health service, there was nothing about that in the Chancellor’s statement yesterday. It is time for a new form of government. It is time for a Government who will tackle inequality and create a fairer taxation system that will benefit the whole country, not leave people to sink or swim. We need an active Government who will be on people’s side, intervene when necessary and do what is necessary to create a fairer and more equitable society.

Oral Answers to Questions

Clive Efford Excerpts

Monday 7th February 2022 Commons Chamber

[Mims Davies]

My hon. Friend, again, raises the work of local DWP teams and jobs fairs, which we have seen in Way to Work. Up to 409,000 more people are on payrolls as a result of the DWP’s hard work in my hon. Friend’s community and more widely.

[Clive Efford (Eltham) (Lab)]

My disabled constituent Ann’s monthly fuel bills of £95 have now risen to £140 and will rise to £200 in April; she also faces inflation-busting care costs. In her budgeting, she has to choose between heating and eating—exactly the problems that were highlighted in the NatCen report. Who benefited most from suppressing that report: my constituent Ann or the Government?

[Chloe Smith]

I am rather more interested in the hon. Gentleman’s constituent Ann than in party political game playing. I sincerely hope that his constituent Ann will be able to benefit from the £9 billion package that the Government have laid out, which comes on top of £12 billion and is targeted at the most vulnerable. Meanwhile, we are spending record amounts on health and disability benefits: £59 billion this year.

Underpayment of Benefits: Compensation

Clive Efford Excerpts

Thursday 13th January 2022 Commons Chamber

[David Rutley]

My hon. Friend has made a good point. There are people who criticise universal credit, but, as I said earlier, it is a simplifying mechanism. It proved to be very resilient in response to the pandemic, and it helped millions of people at a crucial time. We have learnt lessons in that regard, but, as we have said before and as I have reiterated today, there are wider lessons that we also need to learn, and we will do so.

[Clive Efford (Eltham) (Lab)]

I wish to pay tribute to Greenwich Borough Council’s welfare rights unit for identifying this error and for the tenacity with which it pursued it on behalf of my constituent. This will affect the 118,000 other people who have also been wronged. My constituent suffers from paranoid schizophrenia, arthritis, hypertension and Graves’ disease. This decision left her to survive on far less than she was entitled to between 23 May 2012 and 11 August 2017, amounting to £80 a week. The DWP, having made this error, compounded the problem by refusing to allow her to complain to the independent case examiner and by failing to tell her about her right to go to the ombudsman.

The ombudsman has now recommended that, within one month of the final report, the DWP should write to my constituent to apologise for the impact of maladministration on her life, make a payment of £7,500 to compensate her for the impact and apply the appropriate rate of interest to the benefit arrears payment of £19,832.55. Will the Minister give me an undertaking that the DWP will comply with the ombudsman’s recommendations on behalf of my constituent?

[David Rutley]

As I said right at the beginning, the hon. Gentleman has represented his constituent’s case well, as I would expect. We apologise unreservedly for the situation in which his constituent, Ms U, found herself. We will pay the compensation and the interest, as set out in the report. That will happen, and I very much hope we can get the apology over to her well before the month set out by the ombudsman. I will gladly discuss this further with the hon. Gentleman after this urgent question.

Universal Credit and Working Tax Credits

Clive Efford Excerpts

Wednesday 15th September 2021 Commons Chamber

[Jonathan Reynolds]

Again, no one could dispute that case. Last week I went on a visit to Peterborough, which is the Conservative constituency most affected by this cut, and I went to volunteer in a local food bank. Anyone volunteering in that situation and simply observing the level of need coming through the front door could not in any good conscience say that the people going there could sustain themselves if this cut were to take place. Some of the volunteers there are people who work for the NHS, who in their spare time are volunteering on the vaccine programme and, in their spare time from that, are volunteering at the local food bank. That is what the people of this country are doing, and if only they had a Government who were willing to give the same level of commitment, how much better things would be.

[Clive Efford (Eltham) (Lab)]

My hon. Friend is making an extremely powerful speech. We have been through a period when communities have come together, and he has just talked about volunteering and the way that communities have come together to deal with food poverty in particular. Children have been involved in that, and this is the Government who failed to feed our children during holiday time, so it is no surprise that they are bringing in this cut. Even in a constituency such as mine in London, over 5,000 children live in households that receive universal credit and are going to face a cut on top of what we have all been through over the last 18 months. It really is time that this Government started to think about the consequences of what they do to the poorest people in our communities.

[Jonathan Reynolds]

Again, I think the case my hon. Friend has made is self-evident. I would also say that if we look at the moments of national crisis in British history and at how the country has responded to those, we see that we have always sought to learn from those crises and to take the best bits of our response to them. This announcement from the Government—the debate today—is their saying, “There’s nothing to take from this; there is nothing to keep that sense of solidarity or that action to try to improve things for people, and we are walking away from it.” I think that that, perhaps more than anything else, is what makes so many people frustrated with the tin ear the Government are showing.

Pensions Update

Clive Efford Excerpts

Tuesday 7th September 2021 Commons Chamber

[Dr Coffey]

The hon. Gentleman may not be aware of how the Parliamentary and Health Service Ombudsman works in this inquiry specifically. The inquiry is happening in a staged process; we are not expected to give a response, because the process is not yet over. Unusually, the ombudsman has chosen to publish part of the judgment thus far, and there are further stages to come. The hon. Gentleman might want to read carefully the statement that was made, because he should be aware that the period of maladministration is linked to the years between 2005 and 2007, when the Labour Government were in power.

[Clive Efford (Eltham) (Lab)]

We have become used to the Government’s breaking of manifesto pledges, for instance on overseas aid and a border in the Irish sea, but today we have had two in one day, which is pretty remarkable. First, we heard the Prime Minister announce that he would break his pledge not to increase national insurance—which was not just in the manifesto, but something he had specifically singled out and pledged not to do—and now we have heard about the breaking of the triple lock, which was put in place by the last Labour Government and which played a significant part in reducing pensioner poverty.

We have heard from the Secretary of State that the Department is doing some work to advertise pension credit and encourage uptake, but we did not really hear from her any specifics, or any urgency, about the need to deal with the under-claiming of pension credit. So will she give us some more details about what she is intending to do?

[Dr Coffey]

As I have already pointed out, in terms of income guarantee, three in four of the people we have estimated may be eligible are taking up the approach. Ultimately, it is for people to apply for this extra benefit.

Relative to earnings, the state pension is now the highest that it has been in 33 years, so the policy that we have undertaken has been well and truly honoured. I believe that, because this constitutes a statistical anomaly, it is not an appropriate way in which to be using our public finances. I am very conscious that pensioners will expect us to be taking a sensible approach to sustaining the public finances, and a statistical anomaly is not one of the approaches that I believe they would accept.

Oral Answers to Questions

Clive Efford Excerpts

Monday 19th October 2020 Commons Chamber

[The Minister for Disabled People, Health and Work (Justin Tomlinson)]

My hon. Friend is always a champion of his local organisations and constituents. Yes, absolutely; many local authorities, charities and organisations, such as North Yorkshire County Council, have agreed to act as gateways or have submitted bids for funding.

[Clive Efford (Eltham) (Lab)]

Many disabled people have lost carers and are struggling to employ replacements during the covid crisis. This can mean that they have lost vital support in applying for benefits. I spoke to a constituent today who flagged up that there is nowhere on the system for people to indicate that they have a high support need, so that extra care is taken in dealing with their application. She has missed the benefit deadline because of that. Will Ministers look into this matter and ensure that we help disabled people when they apply for benefits?

[Justin Tomlinson]

The hon. Gentleman raises an important point. Our forthcoming Green Paper will look specifically at the importance of advocacy in the system, and at increasing it. That need should have been identified at the initial application. If he sends through the details, I will be happy to ensure that the claimant is not lost from the system.

Covid-19: DWP Update

Clive Efford Excerpts

Monday 4th May 2020 Commons Chamber

[Dr Coffey]

I am pleased that we have added to the jobs website on dwp.gov.uk, and there are about 58,000 vacancies currently advertised there. I am supportive of all the work that has gone on under my right hon. Friend the Secretary of State for Education, such as on how people can get new skills, including through courses that are being made available online. There are, therefore, opportunities to consider upskilling while people are, sadly, not working, and people can also speak to their work coaches about potential further assistance.

[Clive Efford (Eltham) (Lab)]

It cannot be fair that families on the benefit cap are not benefiting from the uprating of payments that has happened during this crisis. The Resolution Foundation has predicted that, in over two thirds of local authority areas, a couple with two children in an average three-bedroom house will be affected by the cap. We know that covid-19 will affect poorer families more than other sections of our community. Is it not time that we moved the benefit cap to stop this situation getting worse?

[Dr Coffey]

As I have already said to the House, there may be claimants who could benefit from a nine-month grace period, where their universal credit will not be capped if they have a sustained work record. On other raises that have happened in terms of housing, changes have been made that should help people, particularly in central and outer London. However, in general, the principle is not to remove the benefit cap.

Personal Independence Payments: Supreme Court Ruling

Clive Efford Excerpts

Tuesday 23rd July 2019 Commons Chamber

[Justin Tomlinson]

The hon. Lady refers to the mental health estimates, which were done before the final guidance was implemented. We have consulted with Mind and other key stakeholders on the revised guidance, and we will continue to ensure that those who are entitled to additional support get it as quickly as possible. We are on track to complete that work by next year, as initially set out.

[Clive Efford (Eltham) (Lab)]

We all have casework in our surgeries involving people suffering from mental health issues who have been denied PIP or have had it taken away from them, but the situation goes beyond that. I have a profoundly deaf constituent who was transferred from DLA to PIP, but they were then denied PIP. Other people with chronic illnesses have failed to score enough points through the question and answer system. Will the Minister take on board the fact that other people in the system will be suffering similarly? We need a fundamental review to ensure that those people do not suffer in the way that they are currently.

[Justin Tomlinson]

We have made a real commitment, and we work closely with stakeholders representing a huge variety of disability and health conditions, empowering them to challenge, to make suggestions, and to work with our teams to help shape the training guidance. That is why an increasing amount of money is being spent each year on supporting people with disabilities and long-term health conditions. As I said, at £55 billion a year, spending is up £10 billion since we came to office. That is a record high, and it will continue to increase as we work, listen and engage with the people who have frontline experience, which the Government have committed to do.

Oral Answers to Questions

Clive Efford Excerpts

Monday 1st July 2019 Commons Chamber

[Amber Rudd]

I can confirm that, and it is refreshing to be able to point out that universal credit is, compared with the legacy benefits, a more generous, more effective and better-targeted system, and it is also better funded.

[Clive Efford (Eltham) (Lab)]

My 16-year-old constituent has a severe hearing impairment and has been on DLA since the age of three. My constituent has recently been reassessed and is now receiving no support whatsoever. How do the Government justify such decisions?