Universal Credit

Damian Hinds Excerpts

Tuesday 13th March 2018 Commons Chamber

[The Secretary of State for Education (Damian Hinds)]

There are sometimes days when Ministers have to come to this House to defend difficult decisions that have had to be made, but this is not one of those days. Today, we are talking about increasing spending and widening eligibility. I would never dream of accusing any Member on either side of seeking to mislead the House, but I will make a more general point: the mere repetition of a falsehood does not turn it into the truth.

We have had fully 24 Back-Bench speeches in this debate, and I will seek to respond to as many as I can in the short time available. There are five main elements to our support in early years and childcare, and each one is a bigger offer than under Labour. First, there are 15 hours a week of free early education for disadvantaged two-year-olds. There was no such entitlement under Labour. Today’s regulations amend the eligibility criteria, introducing an equivalent earnings threshold of £15,400, which typically equates to somewhere between £24,000 and £32,000 in total household income. By 2023, we estimate that around 7,000 more children will benefit from the entitlement compared with the previous system.

Secondly, there is the universal 15 hours a week free childcare for three and four-year-olds—more hours than under Labour and now with the early years pupil premium, which was also not available under Labour. Thirdly, there are an additional 15 hours for working parents, and guess what? No such offer existed before 2010. Fourthly, up to 85% of childcare costs can be reimbursed through universal credit, which is a higher percentage than was ever available under tax credits. Finally, tax-free childcare will provide support for nearly 1 million more families than the existing vouchers scheme.

[Emma Little Pengelly (Belfast South) (DUP)]

Given the concerns raised across the House about the April closure of the childcare vouchers scheme, does the Secretary of State agree that the closure should be delayed to allow for those concerns to be addressed?

[Damian Hinds]

I have heard the concerns about the timing, and I can confirm that, following the hon. Lady’s representations, we will be able to keep the voucher scheme open to new entrants for a further six months.

Tax-free childcare will mean that more people become eligible, regardless of their employer and including the self-employed for the first time. The hon. Member for Ashton-under-Lyne (Angela Rayner) raised concerns about families having to pay childcare costs up front, but I reassure her that the flexible support fund is available to help in such cases.

[Lucy Powell]

Will the Secretary of State give way on that point?

[Damian Hinds]

I am short of time, so if the hon. Lady will forgive me, I will come back to her if there is time.

Turning to free school meals, we have extended the availability of free meals since 2010, going much further than Labour. The Conservative-led coalition extended free meals to disadvantaged students in further education institutions and introduced universal infant free school meals. We are investing £26 million in a breakfast club programme over the next three years, using the soft drinks industry levy.

When universal credit was introduced, we made clear our intention to set new criteria for free school meals, as my hon. Friend the Member for Fylde (Mark Menzies) rightly pointed out. We stated that intention in our response to the Social Security Advisory Committee report on passported benefits in March 2012. We repeated it in April 2013, when we introduced a temporary measure enabling all universal credit families to receive free school meals during the early phase of universal credit, and we have repeated it again several times since, as my hon. Friend the Member for Croydon South (Chris Philp) mentioned. We are now, as we always planned, introducing new eligibility criteria to ensure that those entitlements continue to benefit those who need them the most.

Under our new regulations, we estimate that by 2022 around 50,000 more children will benefit from a free school meal compared with the previous system. The hon. Member for Washington and Sunderland West (Mrs Hodgson), who is shaking her head, asked about the methodology, as did the hon. Member for High Peak (Ruth George) and, I believe, the hon. Member for North West Durham (Laura Pidcock). We responded to the Social Security Advisory Committee on that exact point, and it put the information into the public domain.

[Lucy Powell]

Will the Secretary of State give way?

[Damian Hinds]

I cannot. No child who is receiving free meals now or who gained them during the roll-out of universal credit will lose their entitlement during the roll-out, even if family earnings rise above the threshold, as my hon. Friends the Members for Nuneaton (Mr Jones) and for Harborough (Neil O’Brien) mentioned. Once roll-out is complete, those children will be protected until the end of their phase of education—primary or secondary—as my hon. Friend the Member for Charnwood (Edward Argar) reminded us.

The protection arrangements will enable hundreds of thousands of children to continue to receive a meal during the roll-out, even if family earnings exceed the threshold. The £7,400 threshold relates to earned income, and it does not include additional incomings through universal credit. Depending on their exact circumstances, a typical family earning around our threshold would have a total annual household income of between £18,000 and £24,000.

The hon. Member for Manchester Central (Lucy Powell) said that the threshold was arbitrary. It is not arbitrary; the thresholds for these passported benefits are set at such a level as to hold the eligibility cohort steady, except that in the case of free school meals we took the decision to make it somewhat more generous than the previous system. The threshold is comparable, by the way, to that in the approach in Scotland, where there is a net earnings threshold equivalent of £7,320.

It is simply not true to say that we are introducing a cliff edge; there has always been one. The simple fact is that a child either gets a lunch or does not. A plate of food does not lend itself well to being tapered, as my hon. Friend the Member for South Cambridgeshire (Heidi Allen) has said. Some have suggested that we could convert the benefit into cash—that is true, of course—so that we could have a taper, but the whole point of free school meals is to guarantee that an individual child will receive a nutritious and healthy lunch.

Extending eligibility to all children in households on universal credit would result in around half of pupils becoming eligible. We estimate that that would cost in excess of £3 billion a year more by 2022. The additional meal costs alone, excepting the deprivation funding, would be in excess of £450 million a year—quite close to the figure mentioned by the hon. Member for Washington and Sunderland West. I reiterate that eligibility is going up, not down, as my hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke) said.

I am running short of time, so I will turn to the regulations on universal credit. My right hon. Friend the Secretary of State for Work and Pensions earlier outlined the changes in these regulations for UC. They include the removal of waiting days, which will put an average of £160 extra in people’s pockets and get them into the monthly routine sooner, and an additional two weeks of housing benefit to smooth the transition to universal credit. That one-off, additional, non-recoverable payment is worth an average of £233 to 2.3 million claimants over the roll-out period. Those measures form part of the £1.5 billion package of reforms that the Chancellor announced at the Budget. My hon. Friend the Member for Mid Dorset and North Poole (Michael Tomlinson) said that he was surprised to hear that Labour Members would be voting against those measures. I suggest that their constituents will be even more surprised.

[Paul Masterton]

Wil my right hon. Friend give way?

[Damian Hinds]

I hope my hon. Friend will forgive me if I do not; we are very short of time. As my hon. Friend the Member for Lewes (Maria Caulfield) reminded us in her unique style, the Government are committed to tackling injustices, removing barriers and widening opportunity. Because of the strong economic management that my right hon. Friend the Chancellor recapped for us earlier, we are able to continue our bold and ambitious programme of social reform extremely quickly.

[Emma Little Pengelly]

Can the Secretary of State confirm clearly for the House—this is very important—that the six-month delay in the closure of the childcare voucher scheme will be used to address concerns and issues that have been raised in the House today?

[Damian Hinds]

I already confirmed that we would have this period to reflect concerns and to allow the bed-in.

Our approach is working, including through advances in education, ensuring everyone can get the best start, unprecedented investment in childcare to support career choices and household budgets and universal credit, helping people into work, faster. In this generation, we have employment at record levels, household incomes at record levels and income inequality down. For the next generation, we have major improvements in the early years foundation stages, 1.9 million more children in good or outstanding schools and a 10% narrowing in attainment between the rich and poor. Today’s legislation continues this important work. I am proud of the enhanced support we are offering families through these programmes, and I commend the regulations to the House.

Question put.

Employment, Social Policy, Health and Consumers Affairs Council

Damian Hinds Excerpts

Monday 18th December 2017 Written Statements

[The Minister for Employment (Damian Hinds)]

The Employment, Social Policy, Health and Consumer Affairs Council met on 7 December 2017 in Brussels. As Minister of State for Employment, I represented the UK.

The Council agreed a partial general approach on the long-term care and family benefits chapters of the revision of regulations on co-ordination of social security systems—(883/04 and 987/09). The UK explained its abstention due to a parliamentary scrutiny reservation.

The Council agreed a general approach on the European Accessibility Act. The UK supported the aims of the proposal but registered an abstention, reflecting concerns about the clarity of text.

The Council received a progress report on the draft directive on equal treatment (Art. 19) and the draft directive on work-life balance.

The Council gave political agreement to the directive implementing a social partner agreement on the implementation of amendments to the Maritime Labour Convention.

As part of the semester process the European Commission presented the annual growth survey 2018, the draft joint employment report, the alert mechanism report and the draft recommendation on the economic policy of the euro area. They also sought the views and gained the approval of member states on the employment and social aspects of the recommendation on the euro area.

The Council adopted Council conclusions on the following three topics: the future of work: making it e-easy; enhancing community-based support and care for independent living; and on enhanced measures to reduce horizontal gender segregation in education and employment.

Under any other business, the Commission presented information on the EU action plan 2017-2019 on tackling the gender pay gap and on concluding the year of focused actions to eliminate gender-based violence. The Swedish delegation and the Commission presented information on the Social summit (Gothenburg, 17 November 2017) and the Bulgarian delegation presented the work programme of its incoming presidency.

[HCWS357]

Oral Answers to Questions

Damian Hinds Excerpts

Monday 18th December 2017 Commons Chamber

[Ms Nusrat Ghani (Wealden) (Con)]

7. What recent assessment he has made of trends in youth unemployment.

[The Minister for Employment (Damian Hinds)]

Unemployment among 16 to 24-year-olds is 523,000—down 60,000 on the year and down 416,000 since 2010.

[Ms Ghani]

I welcome that news from the Minister. I am a strong campaigner for apprenticeships, including in my constituency, where we have just 70 young unemployed people. Does the Minister agree that making apprenticeships far more available helps young people into jobs, not only in Wealden but throughout the country?

[Damian Hinds]

My hon. Friend has indeed been a great campaigner and a great champion for apprenticeships. Apprenticeships—including the 620 starts in Wealden in 2016-17—are one of the key policies that have contributed to our successful labour market, in which employment now stands at 75%.

[Nic Dakin (Scunthorpe) (Lab)]

What is the trend in unemployment for young people with learning difficulties?

[Damian Hinds]

We absolutely accept that of course young people with learning difficulties need additional assistance and additional understanding of conditions and so on, which is why we have very much focused on providing that in jobcentres to make sure that they get the support they deserve.

[Sir Desmond Swayne (New Forest West) (Con)]

8. Whether his Department has set a target for the time taken for a personal independence payment claim to be processed from application to decision.

--- Later in debate ---

[Stephen Pound (Ealing North) (Lab)]

9. What estimate his Department has made of the number of sanctions that will be applied each month as universal credit is rolled out.

[The Minister for Employment (Damian Hinds)]

The Department does not forecast numbers of sanctions that will be applied. We do not want sanctions to be incurred, but they do play an important part in reasonable conditionality.

[Mr Speaker]

I think the hon. Gentleman is going to the west end to perform on the stage. He would feel so fulfilled. In fact, I think that he has already done so—perhaps just now.

[Damian Hinds]

I gently remind the hon. Gentleman that when I say that sanctions are considered to be a part of reasonable conditionality, it was also the approach that was taken up fully by the previous Labour Government. With regard to universal credit over Christmas, we have in place—as we do every year—robust processes to make sure that claims get paid. We can bring claims forward to make sure that things go smoothly, as we always seek to do before Christmas.

[Mr Speaker]

There is a matter of some dispute here between the Chair and the Table. I think that the hon. Gentleman is a representative of a petrocurrency, but Mycroft in front of me is not wholly convinced, so the matter remains as yet undetermined.

[Grahame Morris (Easington) (Lab)]

Thank you, Mr Speaker. I refer the Minister to the question I raised with the Leader of the House on Thursday. Will the Minister provide an assurance that when the Department makes mistakes in the administration of universal credit, claimants will be fully compensated in claims backdated to the point where they will be no worse off?

[Damian Hinds]

I welcome the hon. Gentleman’s question. I have written to him today on this specific case. I do not know whether the response has yet come to hand following his question on Thursday, but I am happy to meet him and discuss it in detail. I understand that there was an issue about some of the information at the time the claim was made, and that there has been some backdating. We will talk about the matter later.

[Robert Jenrick (Newark) (Con)]

10. What discussions he has had with Cabinet colleagues on the number of jobs created since 2010.

--- Later in debate ---

[Kevin Foster (Torbay) (Con)]

14. What assessment he has made of the level of preparedness in Torbay for the roll-out of universal credit.

[The Minister for Employment (Damian Hinds)]

We carry out a range of implementation activities well in advance of activation to ensure that sites are well prepared, and we have successfully rolled out to 235 jobcentres to date.

[Kevin Foster]

I thank the Minister for his answer. Roll-out of full service universal credit in Torbay is due to happen in September 2018. It is vital that claimants fully understand the system and their options. Will the Minister therefore confirm what work his Department is doing with Torbay’s local advice services to ensure that claimants can easily get such support if needed?

[Damian Hinds]

Yes, we are ensuring that stakeholders, including the key advice services, have a proper overview of universal credit, and we work closely with the citizens advice bureau and others. A dedicated employer and partnership team engages directly with local authorities, landlords and others to ensure there is a joined-up approach to supporting claimants.

[Stephen Timms (East Ham) (Lab)]

rose—

[Stephen Timms]

Thank you, Mr Speaker. There will be problems in Torbay and elsewhere if the universal credit calculation is wrong. The Minister told me in a written answer that there is no specific initiative called Late, Missing and Incorrect, but it turns out that there is, run jointly by his Department and Her Majesty’s Revenue and Customs. Will he confirm that if real-time PAYE—pay-as-you-earn—information is late, missing or incorrect, then the universal credit calculation will be wrong?

[Damian Hinds]

We all admire the right hon. Gentleman for his deftness in getting from Torbay to that point. He and I have had quite an extended correspondence in parliamentary questions on the subject of real-time information in its various aspects. Of course we want to continue to make sure that every aspect of universal credit is working entirely as it should, and he has my commitment that we will do so.

[Mr Speaker]

The right hon. Gentleman will experience a long journey from East Ham to Torbay. We empathise with him on his long journey.

--- Later in debate ---

[Henry Smith (Crawley) (Con)]

T4. What steps has the Department to taken to help older people who are looking, perhaps after redundancy or caring responsibilities, to get back into work?

[The Minister for Employment (Damian Hinds)]

My hon. Friend raises an important point. There are more working people in older age groups now than there ever have been, but much more needs to be done, which is why we published our “Fuller Working Lives” strategy. Of course, many employers are waking up to the possibilities in jobcentres, and we are also making sure that we have more older worker champions to represent that group fully.

[Neil Gray (Airdrie and Shotts) (SNP)]

Reports suggest that the Foreign Secretary, the Environment Secretary and others used this morning’s Cabinet meeting to start the campaign to scrap the working time directive after Brexit. That directive protects us when it comes to hours worked and paid holidays, as well as giving extra protection to night shift workers. Can the Secretary of State confirm what representations he has made at Cabinet to ensure that his Brexiteer colleagues are not successful at ripping up our workers’ rights?

--- Later in debate ---

[Alex Burghart (Brentwood and Ongar) (Con)]

On Friday, I visited my local jobcentre and saw the genuine enthusiasm that work coaches have for the new universal credit system. Will my hon. Friend confirm that additional help is available for users who are not too tech savvy?

[Damian Hinds]

Yes, indeed. My hon. Friend is quite right about the enthusiasm of jobcentre staff for universal credit, because it enables them to do more of what they want to do, which is to help people to get on and get into work. I can confirm to him that, yes, computers are available in jobcentres, and assistance is available when needed.

[Carolyn Harris (Swansea East) (Lab)]

With the uncertainty of universal credit payments following the roll-out in Swansea last week, my local paper, the South Wales Evening Post, has co-ordinated the collection of food and warm clothes to help those in need. Will the Secretary of State join me in congratulating the South Wales Evening Post on doing what the Government are failing to do, and making sure everyone has a good Christmas?

--- Later in debate ---

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

For jobseekers in my constituency of West Aberdeenshire and Kincardine, it is overwhelmingly the “can do” attitude of professionals and the dedication of the work coaches, whom they value, that will help them to find work. Especially at this time of year, we as a House should definitely pay tribute to them. May I ask my hon. Friend how the new work coaches will boost the chances of jobseekers in West Aberdeenshire and Kincardine, as well as those elsewhere, to find work?

[Damian Hinds]

I can confirm that we have been recruiting work coaches in every nation and region of the UK. We are seeking to do more to provide support with universal credit, and to ensure that what in-work support is needed is available.

[Patrick Grady (Glasgow North) (SNP)]

Two constituents came to my surgery on Friday, concerned that the switch of support for mortgage interest payments will force them into the private rented sector and on to housing benefit, and will therefore cost the taxpayer more money. Will the Government review that policy? Is it not more evidence of Tory austerity hitting the poorest the hardest?

Youth Employment

Damian Hinds Excerpts

Wednesday 6th December 2017 Westminster Hall

[The Minister for Employment (Damian Hinds)]

What a great pleasure it is to see you once again in the Chair in Westminster Hall, Mrs Moon. I congratulate my constituency neighbour, my hon. Friend the Member for Chichester (Gillian Keegan), on bringing this important debate to Westminster Hall. I know how important youth employment is to her, and it is important for us to have opportunities to debate it. We are all grateful to her. That is reflected in the attendance—we have had eight full speeches and this is the ninth. Seventeen Members have taken part in the debate, reflecting its importance. I also welcome the opportunity to set out the targeted support and reforms to vocational education we are implementing to give every young person the best start—an ambition we will achieve only with the help of employers large and small. We need businesses to be prepared to take a chance and offer more young people, whatever their background, valuable work experience and vocational training.

We have already made significant progress on youth unemployment. As my hon. Friend the Member for Ayr, Carrick and Cumnock (Bill Grant) reminded us, youth unemployment is down by 422,000 since 2010. Youth unemployment is now at a record low: just 4.8% of under-25s are both unemployed and not in full-time education, and the UK now has the second-highest youth employment rate in the G7.

My hon. Friend the Member for Chichester reminded us of the reality of youth unemployment in some other countries, using her experience from Spain as an example. Around one in 10 16 to 24-year-olds are not in employment, education or training. While some of those have actively made a decision to take some time out before starting a career, others struggle to overcome complex barriers and multiple setbacks or have had their expectations and ambitions damaged, in turn damaging their confidence. The Government are committed to encouraging young people to be in education, training or employment and giving them the chance to progress and achieve. That is critical if we are to improve productivity, promote intergenerational fairness and tackle poverty and disadvantage.

The right support in school is critical, and if young people are to make the best choices at school, good advice is essential. It is important to widen children’s expectations, and broaden their understanding of the range of jobs and career opportunities available. My hon. Friend the Member for Ochil and South Perthshire (Luke Graham) spoke about the importance of social capital, and if there is an absence of that, the role of the school becomes even more important when trying to fill that gap. My right hon. Friend the Member for Mid Sussex (Sir Nicholas Soames) spoke about the importance of getting companies and industry into schools to present their opportunities directly, and I could not agree with him more. Some industry programmes, such as Feeding Britain’s Future, seek to widen people’s understanding of the range of careers in those industries, and STEM ambassadors talk about where people can get to if they knuckle down and do their maths and physics, including things like engineering, an apprenticeship or a degree.

To help young people make decisions about their future, we have introduced Jobcentre Plus support for schools. Working in partnership with the Careers & Enterprise Company and professional careers advisers, Jobcentre Plus advisers in schools help young people in a variety of ways. They set up work experience opportunities, offer advice on the local labour market, CV writing and interview techniques, and promote vocational routes into employment. We are also reforming the post-16 skills system and introducing T-levels. Employers want young people to have better vocational skills, and we want everyone to recognise that a technical education is as valuable as the traditional academic route for a successful career. We must keep pace if we are to drive the benefits to the UK economy: an estimated 1.2 million new technical and digitally skilled people are needed by 2022 if we are to compete globally. The Government are embarking on a major reform of the post-16 skills system in England, focusing particularly on technical education and lifelong learning.

My hon. Friend the Member for Chichester spoke of the high reputation of Chichester College, of which I am aware. She also spoke about her own experience, and what a great illustration her story is of where an apprenticeship can take someone. We have invested more in apprenticeships than any previous Government, and by 2020 we will have increased annual apprenticeship funding in England to £2.45 billion—double what it was in 2010. There have been 3.5 million apprenticeship starts of all ages since May 2010, and 1.1 million apprenticeship starts in England since May 2015.

My hon. Friend the Member for Henley (John Howell) spoke about the importance of quality apprenticeships. He is absolutely right, and the Institute for Apprenticeships is important in that regard. We are also improving access to apprenticeships for those who are disadvantaged or who have a learning difficulty, health condition or disability.

[Stephen Kerr]

FES in Stirling has set up its own training academy and is working in partnership with Forth Valley College. What more can the Government do to encourage more businesses to take that progressive attitude to investing in their talent?

[Damian Hinds]

That is something we are constantly engaged with, and Members of Parliament can play an important role. More and more companies are doing such things. With employment at its current level, and unemployment at its lowest level since 1975—some people in this room were not born the last time unemployment was lower than it is now—it is a competitive market for talent, and more and more companies are seeing that part of having the competitive edge is exactly about investing further and doing bold things with recruitment and development.

As my hon. Friend the Member for Ochil and South Perthshire reminded us, too many young people leave school without a place in further education or training, or an apprenticeship or job go to. To tackle that head on, in April we introduced a new programme of intensive support for unemployed 18 to 21-year-olds who were making a claim to universal credit full service. The programme starts with a 71-hour curriculum of workshops and exercises that encourages them to think more broadly about their skills and job goals. It helps them to identify any training they need, and supports them to improve their job search, job application and interview skills.

Young people also receive intensive work-focused coaching, and referral to additional support drawn from a wide variety of locally available provision. That provision is tailored to address specific needs and can include mental health support, employability skills, basic skills training in maths, English and IT, work-related skills training, mentoring, and a short work experience opportunity. We anticipate that many young people who receive that valuable intensive support will move quickly into further education, vocational training, an apprenticeship, or a job. Those who are still unemployed after five months on that programme will have an extended stock-take assessment to review their learning and progress, and identify additional barriers to work that need to be addressed quickly. At six months, if the individuals remain unemployed, they will be offered a sector-based work academy placement, which is a short period of vocational training, and work experience in a sector with a high number of vacancies, or encouraged to take up a traineeship. Every 18 to 21-year-old on the programme who does not take up work-related training will be offered a three-month work experience placement to help them achieve their job goals.

Universal credit also offers, for the first time, in-work support for young people on a low income to help them progress in work. Young people are better off in work under universal credit. Most young people were not entitled to claim working tax credit until they were 25, but under universal credit they continue to receive benefits while in work and on a low income.

The rate of the national minimum wage for young people is a balance. It is, of course, important to ensure that people are properly remunerated, but we must also protect their employment prospects. The rate for people aged 18 to 24 has risen by between 7% and 8% since 2015, and from April 2018 the apprenticeship rate will be at a record high in real terms. Overall, the national living wage—such a key reform—has meant that the lowest-earning 5% of the population have recently had the biggest rise in their annual incomes since records began.

The hon. Member for Wirral West (Margaret Greenwood) asked about our use of texts and other forms of communication. Yes, we absolutely use those things in jobcentres these days. It is an important part of our communication.

As our industrial strategy set out, we need to boost productivity and earning power across the country, improve the quality of work and ensure that everyone has the right skills to progress. As I hope my hon. Friend the Member for Chichester will agree, when businesses give a young person a chance of employment or the valuable opportunity of work experience, it is not only the job-specific skills that they gain that make a difference. Through work experience, young people broaden their horizons, learn how to work with others and gain confidence. That in itself can be instrumental in changing their job opportunities and life chances.

Employers say that one key reason why they do not employ young people is a lack of work experience, so getting that experience is important. If any Member has difficulty with putting local employers in touch with jobcentres and creating those work experience placements, they should get in touch with me and I will help to facilitate that. This is such an important subject, and I thank my hon. Friend for securing this debate. This is a partnership approach between the Government, MPs and educational employers.

Universal Credit Project Assessment Reviews

Damian Hinds Excerpts

Tuesday 5th December 2017 Commons Chamber

[The Minister for Employment (Damian Hinds)]

Universal credit is being introduced at a time when record numbers of people are in work and unemployment is at its lowest for 40 years. It is a vital reform, replacing the outdated and complex benefits system of the past, which too often stifled people’s potential, as my hon. Friends the Members for Rochester and Strood (Kelly Tolhurst) and for Middlesbrough South and East Cleveland (Mr Clarke) outlined. Six benefits are replaced with one simple monthly universal credit payment, designed to support people whether they are in or out of work.

Under UC, claimants are better off when they move into work and they are better off when they progress in work. People’s UC is gradually reduced as earnings increase, so claimants will not lose all their benefits at once if they are on a low income. My hon. Friend the Member for Moray (Douglas Ross) reminded us of features of the previous system that called out for reform. With UC, there is no 16-hour ceiling, no 16-hour floor, no such thing as “permitted work”—or, rather, non-permitted work—and there is no upheaval and risk in terms of people’s benefit as they move into a job, as my hon. Friend the Member for Wealden (Ms Ghani) mentioned. This means that the more people work, the more money they get in their pocket. So UC supports those who can work and cares for those who cannot, while being fair to the taxpayer as the Government continue to spend around £90 billion a year supporting people of working age.

My hon. Friends the Members for Stirling (Stephen Kerr) and for Aldridge-Brownhills (Wendy Morton), the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone), who spoke about Wick, and others spoke of the dedication of Jobcentre Plus staff and of staff at housing associations and elsewhere, and the great deal of preparation going into readying for universal credit, and I echo those words of appreciation. I also say to any Members who have not recently visited their local jobcentre: please do so.

My hon. Friend the Member for North East Derbyshire (Lee Rowley) spoke of the phased roll-out approach and how that allows the Government to learn from frontline feedback and evolve the system, making the changes to improve as we go along, and making sure that people who need help can get it.

The Budget package that the Chancellor set out will put more money into claimants’ hands earlier, ensuring extra support for those who most need it. This is a £1.5 billion package and it addresses concerns that have been expressed about the delivery of the benefit, as my hon. Friend the Member for South Cambridgeshire (Heidi Allen) rightly said.

This month, new guidance will be issued to staff to ensure that claimants in the private rented sector who have their housing benefit paid directly to landlords are also offered that option when they join universal credit. From January, we will make two changes to advances, and my hon. Friend the Member for Ochil and South Perthshire (Luke Graham) reminded us of the new guidance given in jobcentres to make sure that advances are entirely known about. The changes are increasing the maximum recovery time from six months to a year and the maximum amount from 50% to 100%.

I should mention to the hon. Member for Reading East (Matt Rodda) that in practice this also means that new claimants in December can receive an advance of up to 50% of their overall entitlement, and may receive a second advance to take it up to 100% in the new year. So no one who needs immediate financial assistance will need to wait until the end of the first assessment period.

It has been said a few times that advances are a loan. An advance brings forward a payment, but it is not an advance like a normal loan, as there is no interest to be paid. It is also not like a normal wage advance in the sense that it does not just come out of people’s first payment. In addition, from February we will remove the seven-day waiting period, benefiting about 750,000 new universal credit claimants a year by an average of £160 per household. My hon. Friend the Member for Mid Dorset and North Poole (Michael Tomlinson) asked me to confirm that that is a net improvement in the cash position. Waiting days were a long-standing feature of the benefits system, so he is exactly right.

From April, as claimants with housing support transfer to universal credit, an additional two weeks of housing benefit will continue to be paid. That change will provide an average of £233 pounds in additional financial support per household for 2.3 million claimants over the roll-out. From February, the initial wait for payment will comprise an assessment period of one calendar month, during which evidence of earnings and so on will be gathered, and up to a further week of payment generation and administration via Bacs. A claimant’s first UC pay date will be up to seven calendar days after the end of their initial assessment period, and subsequent pay due days will be on the same date each month. As my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie) said, most people are paid monthly, and that is the case for universal credit, too.

I want to try to respond to as many of the points made in the debate as I can, but I fear I will not get to all of them. The hon. Members for Eastbourne (Stephen Lloyd) and for Central Ayrshire (Dr Whitford) talked about different payment patterns. It is a reality of devolution that they are possible under the devolved Administrations, and we will engage with them to make that work. However, we think that monthly is the better payment pattern. It is not that it is impossible to use other patterns, and an argument for why payment should be weekly could be constructed, but few things are paid fortnightly. Monthly is the more sensible pattern, and it is only way by which the assessment period can take account of all the different patterns of how people in work are paid.

My hon. and learned Friend the Member for South East Cambridgeshire (Lucy Frazer) noted the use of Opposition days in respect of matters relating to the release of documents and discussed other urgent matters that have not been covered in the meantime. My hon. Friend the Member for Brentwood and Ongar (Alex Burghart) talked about the positive role that the Work and Pensions Committee can play in the process. My hon. Friend the Member for Bolton West (Chris Green) reminded us of the need for care and responsibility in interpreting reports. The hon. Member for High Peak (Ruth George) asked about the post-implementation review, and that will come in 2022. My hon. Friend the Member for South Suffolk (James Cartlidge) mentioned the importance of fiscal responsibility, and universal credit will save substantially on fraud and error.

[Frank Field]

Will the Minister give way?

[Damian Hinds]

I cannot. My hon. Friend the Member for Stirling (Stephen Kerr) asked about home visits, and I can confirm that the DWP makes around 300,000 home visits a year, most of which are completed within 10 days.

I want to turn specifically to the comments of the right hon. Member for Birkenhead (Frank Field), who made a passionate, powerful, emotive speech. Nobody here could fail to have been affected by the moving stories that he related. I know that that is what brought him into politics, and I would never question his motivation, sincerity or determination. However, on the behalf of everybody on this side of the House—I can say this with no fear of contradiction—that is what brought us into politics, too. When we talk about extending free childcare, school results, the national living wage, the creation of 3 million jobs, the reduction in income inequality and record-high household incomes, they are not just statistics; they are steps towards tackling injustice and spreading opportunity, and universal credit is at the heart of that list.

Universal credit helps to prepare people for work through personalised support and help with IT skills and budgeting, by paying people monthly like most jobs and by paying money to people, not landlords. It helps people into work by removing the risk to their benefit claim by making it visibly clear that work will pay and by covering childcare costs in the run-up to work, so that children can settle and people can get set and ready for the first day at work. Once people are there, it helps them to get on in work, because it pays out based on earnings, not hours, because it covers more of their childcare costs, and because there are no hours rules and no restrictions on progression. We are in the middle of a fundamental structural reform that is already improving lives. We will continue to work with claimants, partners and right hon. and hon. Members from across the house to resolve issues and improve universal credit as it rolls out across the country.

Question put and agreed to.

Resolved,

That an humble Address be presented to Her Majesty, That she will be graciously pleased to give directions that the five project assessment reviews, carried out into universal credit between 2012 and 2015 by the Government’s Major Projects Authority now known as the Infrastructure and Projects Authority, and any subsequent project assessment reviews carried out into universal credit by the Infrastructure and Projects Authority between 1 January 2016 and 30 November 2017 that have been provided to Her Majesty’s Ministers at the Department for Work and Pensions, be provided by the Secretary of State for Work and Pensions to the Work and Pensions Committee.

[Frank Field]

On a point of order, Mr Speaker. I have never doubted the motives of people on the other side of the House. As the Government have accepted the motion, will the Select Committee have the papers tomorrow?

Employment, Social Policy, Health and Consumer Affairs Council

Damian Hinds Excerpts

Tuesday 5th December 2017 Written Statements

[The Minister for Employment (Damian Hinds)]

The Employment, Social Policy, Health and Consumer Affairs Council will take place on 7 December 2017 in Brussels. As Minister of State for Employment, I will represent the UK.

The Council will be invited to agree a partial general approach on the revision of regulations on co-ordination of social security systems—Long-Term Care and Family Benefits (883/04 and 987/09).

The Council will be invited to agree a general approach on the European Accessibility Act.

The Council will receive a progress report on the draft directive on equal treatment (Art. 19) and the draft directive on work-life balance.

The Council will be invited to give political agreement to the directive on Maritime Labour Convention (implementing a Social Partner agreement).

As part of the semester process the European Commission will present the annual growth survey 2018, the draft joint employment report, the alert mechanism report and the draft recommendation on the economic policy of the euro area. They will also seek the views and approval of member states on the employment and social aspects of the recommendation on the euro area.

The Council will be invited to adopt Council conclusions on the following three topics: the future of work: making it e-easy; enhancing community-based support and care for independent living; and on enhanced measures to reduce horizontal gender segregation in education and employment.

Under any other business, the Commission will present information on the EU action plan 2017-2019 on tackling the gender pay gap and on concluding the year of focused actions to eliminate gender-based violence. The Swedish delegation and the Commission will present information on the Social summit (Gothenburg, 17 November 2017) and the Bulgarian delegation will present the work programme of its incoming presidency.

[HCWS310]

Universal Credit Sanctions

Damian Hinds Excerpts

Monday 4th December 2017 Commons Chamber

[The Minister for Employment (Damian Hinds)]

Time is a little short, but I will seek to address as much of what the hon. Member for Oldham West and Royton (Jim McMahon) raised as possible. I congratulate him on securing this important debate.

I will start by going over some of the principles of why we have conditionality and of how the system we have specifically designed in universal credit supports claimants in meeting conditionality. The hon. Gentleman went over some of the history of our benefit support system and, yes, the system is there to provide a safety net, but it is also a well-understood and long-standing principle that individuals must meet certain conditions to receive certain benefits.

It is possible, of course, to argue for a system of out-of-work support that does not have conditionality—something like a universal basic income—but that is not, to the best of my knowledge, the policy of the official Opposition or of other Opposition parties in this House. That would be a completely different debate.

Conditionality has been a long-standing feature of welfare benefit entitlements in this country, and the scope and scale of it has evolved over time. The introduction of jobseeker’s allowance in 1996 intensified the monitoring of unemployed claimants’ job seeking behaviour, and the incoming Labour Government of 1997 adopted what was called a work-first and work-for-all approach that embraced JSA’s monitoring of claimants’ job search activities, backed up by benefits sanctions in cases of non-compliance. Universal Credit is specifically designed so that work coaches engage with and support people early in their claim, and then throughout, to give them advice and support, and not to lose contact with them. With the introduction of the claimant commitment, it is clear to claimants what is expected of them. Through it, they commit to undertake certain actions, such as attending interviews, applying for jobs and apprenticeships, or going on training, in exchange for receiving benefits.

[Ruth George]

Does the Minister believe it is correct that a single parent of a 13-year-old child should have to sign up to a claimant commitment to seek work for 35 hours a week when they have a child to look after in the school holidays?

[Damian Hinds]

The claimant commitment is agreed between the claimant and the work coach, and it is based on the claimant’s particular circumstances. So where a mother is taking young children to school and back, the time she would have available to work and for work search would be restricted by that. Where someone has caring responsibilities for a spouse, parent or disabled child, that will also change the amount of time they have available. The point is that this is to be a tailored system that responds to and reflects the individual’s circumstances. The individual and the work coach between them agree what is reasonable, and the claimant then commits to it. As I was saying, work coaches have the flexibility to personalise the requirements—I have pretty much covered what I was about to say in that paragraph in responding to the hon. Lady.

Work coaches can also remove all work-related requirements where it is not reasonable to expect claimants to be able to comply, or suspend them temporarily, such as when someone needs time to find a home. We are constantly reviewing our guidance and ensuring that work coaches understand the importance of getting the right levels of conditionality in place, based on a claimant’s individual circumstances. Indeed, when a work coach takes up the role for the first time, they go through a minimum of five weeks of classroom-based learning, after which they consolidate that learning back in their jobcentre. This training covers conditionality and setting appropriate commitments for the specific circumstances of the claimant. Additionally, when a jobcentre goes live with the universal credit full service, existing work coaches there go through three weeks of classroom learning, which also includes how to apply conditionality and agree reasonable commitments. Similarly, work coaches can refer to extensive guidance on how to support claimants with disabilities and complex needs.

It is right that there is a system in place to encourage claimants to meet their requirements and, as a result, move closer to work. As such, if a claimant does not meet the requirements they have agreed to in their claimant commitment, they are referred to a decision maker to determine whether a sanction is appropriate. We take a number of steps to make sure our decisions are fair: the decision maker invites those referred for a sanction to explain why they failed to meet their requirements; and we take the claimant’s individual circumstances into account, including any health conditions or disabilities, and any evidence of good reason, before making a decision to apply a sanction.

Evidence from trials where there was no conditionality for the first 13 weeks showed a significant increase in the length of time spent on benefit. That was due mainly to people taking longer to find work. In addition, more than seven tenths of UC claimants said the potential for sanctions made them more likely to look for work or take steps to prepare for work.

A report from the OECD in 2013 also noted that the UK’s

“long tradition of activation policies to promote the effective reintegration into employment of working age benefit recipients helped limit the rise in unemployment, even during the global and financial crisis”.

When a claimant disagrees with a sanction, they can ask for the decision to be reconsidered. Following that, if necessary, they can appeal against the decision to an independent tribunal. Ultimately, where a sanction is applied, it can only deduct an amount equal to the claimant’s personal element of universal credit—that is, their standard allowance. It does not apply to the additional amounts they may receive in respect of having children, to cover housing costs or to help with the costs of disability.

We have a well-established system of hardship payments and, in universal credit, claimants are able to apply for a hardship payment from the time their payments are reduced through a sanction. Nevertheless, most claimants do what is expected of them and are not sanctioned. The latest published statistics show that at March 2017, 6.9% of people on universal credit had a deduction taken from their standard allowance as a result of a sanction.

The rate in universal credit is higher than the sanction rate for jobseeker’s allowance, but the two are not directly comparable. In UC, if a claimant fails to attend a work-focused interview without good reason they can be sanctioned, whereas if a claimant on JSA fails to attend a work-focused interview, after five days without making contact they would have their claim terminated. In the November statistics release, about two in every 10 adverse sanction decisions are for failing to attend, whereas under UC it is about seven in every 10. To repeat, it cannot be inferred from that that more people are not attending. Rather, it means that non-attendance is often treated differently because UC is a very different benefit that covers not just the individual element, but support for children, housing costs and other elements.

Universal credit is designed to support claimants in a holistic way, ensuring that we help them find or progress in work, while ensuring that they continue to receive help with their housing costs and other benefits. In universal credit, we are more likely to temporarily reduce benefit, for example where there is a complete loss of claimant contact, while we try everything possible to contact the individual. In jobseeker’s allowance—

Universal Credit: Terminally Ill People

Damian Hinds Excerpts

Wednesday 29th November 2017 Commons Chamber

[The Minister for Employment (Damian Hinds)]

I congratulate the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) on securing a debate on this important matter. These are, of course, extremely difficult situations, and we in turn must always be careful to treat them with the highest level of sensitivity.

I will begin by setting out the recently announced changes to universal credit, which of course apply to all recipients, before addressing the hon. Gentleman’s specific points. We continue to roll out universal credit gradually, constantly improving the way the system works as we do so. I am sure that hon. and right hon. Members on both sides of the House welcome the changes to universal credit that my right hon. Friend the Secretary of State for Work and Pensions announced in his statement to the House last Thursday.

New guidance will be issued to staff next month to ensure that claimants in the private rented sector who have their housing benefit paid directly to landlords are offered that option when they join universal credit. We will make two changes to advances from January. First, the maximum period over which an advance is recovered will increase from six months to 12 months, making it easier for claimants to manage their finances. That will apply regardless of the level of advance claimed. Secondly, we are increasing the amount of support that a claimant can receive through an advance from up to 50% of their estimated entitlement to up to 100%. Of course, the advance is interest-free.

If someone is in immediate need, we can fast-track the payment so that they receive it on the same day. In practice, new claimants in December can already receive an advance of up to 50% of their estimated overall entitlement, and may receive a second advance in the new year to take it up to 100%. Taken with the first scheduled payment, that means that claimants in need could receive nearly double the amount of cash that they would previously have received over that period.

In addition, from spring next year, we will make it possible to apply for an advance online, further increasing accessibility for those who need it. From February we will remove the seven-day waiting period, reducing the time claimants might wait to receive their first full payment. From April, for new claimants already receiving support towards their housing costs, we will provide an additional payment of two weeks’ housing benefit to support them as they transition to universal credit, which will help to address the issue of rent arrears for those most in need.

It is important that I explain that the personal independence payment is a separate benefit to universal credit. It will continue to be paid weekly in advance to provide important financial support to help people to meet the additional costs of disability in the latter stages of their life. PIP is also not taken into account when assessing entitlement to universal credit. To be clear, PIP is not a benefit that is being replaced by universal credit. PIP and UC are not comparable, as they are not intended for the same thing.

Income-related employment and support allowance and the linked disability premiums, including the severe disability premium, are being replaced by universal credit as part of the process of simplifying benefits to help us address overlaps. To mirror the design of ESA, universal credit has two disability elements for adults. The higher rate is set at a substantially higher level than the equivalent support group level in ESA. By structuring the rates in that way, the Government are making it clear that they are not looking to make savings. Transitional protection will also be provided for those claimants who are transferred across to universal credit by the Department for Work and Pensions and who have not had a change of circumstances.

We will continue to listen to and act on feedback as we roll out universal credit. I regret to say that mistakes can be made in any benefits system and, when errors happen, I am sorry. Of course we recognise that people with health conditions or disabilities face extra challenges. People may be dealing with more than one condition or disability, and the same condition can affect people in different ways.

[Drew Hendry]

Will the Minister take on board some of the specific points that I raised? These things are easy to do and would cost nothing. Specifically, will he address the issues relating to self-certification? I also referred to other things that would be very easy to deliver, so will he consider any of those?

[Damian Hinds]

Perhaps the hon. Gentleman will allow me to continue. As we roll out universal credit, we are absolutely committed to ensuring that terminally ill patients are treated with the utmost sensitivity and care, and receive the support they need to make a UC claim.

It might be helpful if I briefly set out to the House how the claim process works in the pre-existing system—the legacy benefit system. Under that system, additional financial support can be obtained by someone who is terminally ill by making a claim to ESA. This is a manual process that requires an application to be completed via a telephone call or a paper-based form. As part of the process, the claimant is asked whether they would like to apply for ESA under “special rules”, as the hon. Gentleman mentioned. For ESA, “special rules” means someone who has a terminal illness with a prognosis of less than six months. The claimant is asked to provide medical evidence from their GP or medical practitioner confirming this. If the claimant has already provided the medical evidence to another part of the DWP, the Department will confirm that and make a referral to an expedited work capability assessment. That is entirely clerical; it is a review of papers. The healthcare professional will provide a report, usually within 48 hours, confirming the claimant’s prognosis and condition to the DWP, which will then be able to award immediate additional financial support by allocating the claimant to the support group. As the hon. Gentleman mentioned, the UC full service is designed to be accessed and claimed for online, although a claim can be made over the phone or via a home visit, which can be arranged if needed. Universal credit has a similar process in place to support claimants when they have been diagnosed as terminally ill to make sure that additional support is provided as quickly as possible.

I am are aware of the concerns raised by the hon. Gentleman about the process of notifying the DWP about a claimant’s terminal illness. However, we do not need to change the consent rules in UC to support these claimants; we can already accept information directly from claimant representatives, such as claimant appointees and third-party organisations representing the claimant. However, we are also aware that there are instances when this is not happening as intended, and we are working very hard to make sure that the system works properly, with all the necessary guidance and procedures in place to support terminally ill claimants and to help our operational staff to assist them.

As part of the training that our staff receive, they are made aware that claimants might not know their prognosis or condition and that they therefore should not record or refer to the nature or detail of the illness on the full service journal or in discussions, unless requested by the claimant. Our approach is, and always has been, that we must ensure that terminally ill claimants are treated sensitively and with empathy at all times.

When a claim is made to UC where the claimant is terminally ill, we want to ensure that claimants receive any eligible additional financial support as quickly as possible. To make sure that that happens, the claimant is asked if they have a terminal illness. We have already asked that question of ESA claimants, but using the terminology of “special rules”. I must stress that, in effect, the two questions are the same. We changed the wording to make things clearer to the individual, and to make sure that people would be able to get the support to which they are entitled and which they need. That applies to new claims and to existing claims on a change of circumstances.

When somebody presents with such an illness, they are given the option of continuing to provide further information themselves, or of receiving support from the DWP to do so. When they indicate that they would like support, it becomes a high-priority task for a case manager to telephone the claimant to gather the information on their behalf. A home visit can also be arranged.

The most usual way for claimants to supply evidence of such an illness is by providing the DS1500 form to which the hon. Gentleman referred. It is issued for the DWP by a GP or healthcare professional, either to the claimant or to their representative. We check our systems immediately and as a matter of course to see whether we already hold a DS1500 that was submitted as part of another claim. If one is already held, we reuse it for the universal credit claim. Receipt of that information indicates to us that the claimant must receive immediate access to DWP support, and that support immediately results in an additional £318.78 per month being included in their universal credit entitlement. The additional amount is payable from day one of their claim. In addition, the claimant is completely removed from any conditionality requirements.

The Department and the universal credit programme have regular meetings with key stakeholders, including Macmillan, Maggie’s centres and Mind, to understand how our policies are working, and to identify and discuss possible areas for improvement. I recognise that the hon. Gentleman has encountered universal credit claimants who have had issues with the service in his constituency. As I acknowledged earlier, things can go wrong, and when they do, I am sorry for that. If cases involve vulnerable claimants, it is particularly important that they are escalated, investigated and resolved quickly. I am aware that the hon. Gentleman has an effective direct relationship with the Scotland complaint resolution team, as well as with our local operations team, which has helped to manage a number of urgent cases to successful resolution.

As we continue to deliver the full universal credit service—it is now available in 178 jobcentres—with its expanded claimant base, we are continuing to review and further develop the customer journey for claimants with complex needs, including by looking into how we support terminally ill claimants to engage in the process. In that context, I welcome the hon. Gentleman raising these important issues on the Floor of the House. I do recognise that there are areas for improvement in the service, but he has seen for himself the drive, commitment and passion of so many of our staff, stakeholders and people working across universal credit to see this important reform through.

Question put and agreed to.

Universal Credit Roll-out

Damian Hinds Excerpts

Thursday 16th November 2017 Commons Chamber

[The Minister for Employment (Damian Hinds)]

I congratulate the right hon. Member for Birkenhead (Frank Field) on securing this important debate today and also thank Members from across the House for such a good and constructive debate. Unfortunately, my time is now extremely short, but I will try to respond to as many points as I can.

In particular, I wish to mention the absolutely outstanding maiden speech from my hon. Friend the Member for Banff and Buchan (David Duguid). He paid generous tribute to his predecessor and spoke about how he was focused on securing the best Brexit for businesses in his constituency, particularly those around fishing and farming. He talked about some of the other opportunities for the future around oil and gas and tourism. Overall, he painted a colourful picture of his constituency and what a wonderful place it would be in which to live. Clearly, he will be a great asset to this House and to our democracy. The accents from his part of Scotland are always rich and characterful, but they sound so much better when they come from this side of the House.

Universal credit has been the subject of a number of debates over recent weeks, but it remains important not to lose sight of why this vital reform is needed, and the key principles behind it, which my hon. Friend the Member for Brentwood and Ongar (Alex Burghart) outlined effectively. Today on the main out-of-work benefits, someone who does more than a minimal amount of work would have to go through the upheaval of changing to a different benefits system. That can deter some people on jobseeker’s allowance from taking on seasonal work, for example, or a trial position. The obstacles to starting work can act even more strongly for people with disabilities who are on ESA. On ESA, people can only do so-called “permitted work” of up to £120 a week. There is no “permitted work” under universal credit, because work is permitted full stop. People do not have to make a choice between starting a career and getting support through the benefits system.

As my hon. Friend the Member for Torbay (Kevin Foster) said, universal credit simplifies the system, merging six benefits into one, and asking people to deal only with one part of Government, not three. It is paid monthly in arrears, like most jobs these days, allowing claimants to structure their expenditure around a monthly fixed payment day. My hon. Friend the Member for Mid Dorset and North Poole (Michael Tomlinson) asked me to outline how many people in work are paid fortnightly these days. The answer is about 3%. The majority of people are paid monthly, a sizeable minority are paid four-weekly and, of course, quite a lot of people are still paid weekly. Overall, about 70% of people in work are paid either monthly or four-weekly.

The month-long assessment period starts straightaway for people transferring from another benefit, and for members of certain vulnerable groups. For newly unemployed people, eligibility—and, therefore, the assessment period—starts seven days later. These waiting days reflect the principle that benefit support is not intended to cover very short periods of unemployment. Of course, they also exist in jobseeker’s allowance. The monthly in-arrears payment cycle is fundamental to the design of universal credit, meaning that an individual’s benefit payment each month can reflect what they earned in that month, and can take account of all the different patterns in which different people are paid.

Beyond the month-long assessment period, there is a further time of up to a week for final calculation, verification and making the payments. All DWP benefit payments, including universal credit, are made using the BACS system, which takes three working days to process. A claimant’s first universal credit payment due date will be seven calendar days after the end of their initial assessment period, and subsequent pay days will be on the same date each month thereafter. If the UC pay day falls on a weekend or bank holiday, it will be brought forward to the nearest working day. That is what the seven days after the monthly assessment period are for: three days for calculation, data verification and BACS processing; and four days to allow for the fact that the payment due date may come on a Saturday, Sunday or bank holiday, to then allow us to pay claimants ahead of that due date.

If someone is leaving a job, they normally have a final pay packet, and some may also have redundancy pay. If people are moving on to universal credit from another benefit such as ESA, JSA or income support, paid fortnightly in arrears, they will have their final payment from that benefit. We do realise that different people’s circumstances vary, so advances are therefore available.

My hon. Friends the Members for Redditch (Rachel Maclean) and for West Aberdeenshire and Kincardine (Andrew Bowie) reminded us that no one need go five or six weeks without money. People can get an advance payment of up to half of their indicative award, recouped over six months or, as we were reminded, in some cases longer. Advances are available and paid within five working days. In an emergency, they can be paid on that same day. These advances are not like a loan in the sense that no interest is payable, and they are not like a wage advance in the sense that they do not just get taken fully out of the first wage packet.

I must stress—it is worth repeating—that the universal credit payment cycle is then monthly, with the payment made on the same date each month, unless that date falls on a Saturday, a Sunday or a bank holiday, in which case the payment would be advanced to the nearest working day.

This monthly assessment is a much better system than the tax credits system, which works on estimates and often involves big adjustments at the end of the year, including requiring people to pay back sometimes large sums, which they might, of course, already have spent, as my hon. Friend the Member for Rochester and Strood (Kelly Tolhurst) rightly reminded us.

So UC erases the binary distinction between in work and out, and removes the need to flip in that way from one benefit to another and then back again. Three separate peer-reviewed studies show that people are more likely to be in work after six months if they are on UC than if they are on JSA. Those are matched samples comparing people who are similar in other respects, apart from the benefits they were on.

My hon. Friend the Member for Stirling (Stephen Kerr) asked about the direct payment of rent. Since the then Labour Government’s reform of 2008, the default position has been that people in the private rented sector handle their own rent. Universal credit extends that principle to people renting from a council or housing association, but we can pay rents direct to landlords, and a sizeable minority of social sector tenants on universal credit have that arrangement right now. We are further improving the set-up process to make rent payment direct, where appropriate, for the social sector—through the trusted partner status—and for private rentals.

We are also able—the hon. Member for Oldham East and Saddleworth (Debbie Abrahams) asked about this—to make payments more frequently than monthly. That can be fortnightly or, indeed, weekly, when that is necessary, and we can split payments between members of a couple.

Universal credit is a vital reform that changes how we support people out of work and in work and how we help them progress from one to the other. It is a lot of change—a new benefit, a new IT system, a new operational system and new ways of working with partners—and, yes, that does bring with it some challenges. We will continue to work with claimants, stakeholders, partners, and hon. and right hon. Members on both sides of the House to resolve those challenges as they arise and to improve universal credit as it is introduced across the country. However, it is important that we continue with universal credit in order to realise the benefits that it brings, including boosting employment by an estimated quarter of a million when fully rolled out.

Universal credit is being introduced at a measured pace over nine years. Between last month and January, it will go from covering 8% of the benefits-claiming population to 10%. This gradual, careful approach, with planned pauses in the roll-out to learn and to respond to issues as they arise, means we can continually adjust and evolve the programme.

Universal credit is the biggest modernisation of the welfare state in a generation. Already, it is transforming lives, and we are determined to see this reform through.

Oral Answers to Questions

Damian Hinds Excerpts

Monday 13th November 2017 Commons Chamber

[David Morris (Morecambe and Lunesdale) (Con)]

14. What estimate he has made of the number of claimants applying for universal credit advance payments.

[The Minister for Employment (Damian Hinds)]

The answer is about half. We are working to further improve awareness and access to this support.

[David Morris]

I am keen to ensure that advance payments are made to my constituents in need, which is why I see the jobcentre and the citizens advice bureau, one after the other, every month. Does the Minister agree that the Labour party should start acting responsibly and join me in encouraging constituents to apply for this additional help, and tone down the political rhetoric, which could deter vulnerable people from applying in the first place?

[Damian Hinds]

I do. My hon. Friend knows, and the Labour party should acknowledge, that no one need go without money while they wait for their first regular payment. Labour should not try to put people off accessing the support that is there for them.

[Ruth George (High Peak) (Lab)]

Today is exactly six weeks until Christmas day. Anyone who applies for universal credit today will have to make do on just two weeks of universal credit payments until after Christmas. What assessment has the Minister made of the impact on such families and their ability to let their children enjoy Christmas?

[Damian Hinds]

Our record on the timeliness of universal credit payments has improved markedly and, as the hon. Lady knows, advances are also available. I should also say that in the run-up to Christmas, when many temporary work opportunities are available, universal credit works much better for people, because they are able to access those opportunities, particularly on the verge of the festive season.

[Sir Desmond Swayne (New Forest West) (Con)]

15. How much longer can a claimant spend looking for a job on universal credit?

[Mr Speaker]

Very well: we have heard the right hon. Gentleman on Question 14, although he did not seek agreement to that proposition. He simply blurted it out, but we will accept that on this occasion.

[Damian Hinds]

We know that people on universal credit spend a great deal more time looking for work than others, and that they apply for a wider range of jobs and consider jobs that they may not have considered before. All that is part of why it involves significantly better labour market outcomes, and why people are more likely to be in work after six months than they were on the old benefits.

[Theresa Villiers (Chipping Barnet) (Con)]

16. What steps he is taking to ensure that the benefits system does not penalise people who wish to increase the number of hours they work.

--- Later in debate ---

[Stephen Timms (East Ham) (Lab)]

18. Whether he has investigated reports of online applications for universal credit being lost; and if he will make a statement.

[The Minister for Employment (Damian Hinds)]

We are rolling out universal credit full service in a very measured way. I am not aware of any recent cases of claims being lost, but if the right hon. Gentleman knows of such incidents, I of course very much welcome him bringing these to my attention.

[Stephen Timms]

There are serious concerns about glitches with universal credit apparently arising because the IT does not yet work properly in some areas. The Child Poverty Action Group has reported instances of claims being made and then vanishing into the ether without trace. Will the Minister assure the House that glitches of that kind will be addressed and resolved, not simply denied?

[Damian Hinds]

The CPAG report to which the right hon. Gentleman refers says in its summary that many claims seem to have disappeared, but the text refers to a small number, and then goes on to mention just one case. That is not to say that I ignore this matter or belittle it in any way—of course, I take what he says very seriously. He has my absolute assurance that I will pay attention to any glitches.

[Eleanor Smith (Wolverhampton South West) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

--- Later in debate ---

[Patrick Grady (Glasgow North) (SNP)]

T2. How does the increased conditionality associated with universal credit, such as the requirement to attend at jobcentres more frequently, square with the DWP’s estates review and the decision to close jobcentres, starting with Maryhill in my constituency—which, incidentally, I have visited?

[The Minister for Employment (Damian Hinds)]

We have a comprehensive network of jobcentres across the United Kingdom. There are more in Scotland than in England, and more in Glasgow than in other cities. Universal credit is a system that works to help and support people to get into work—it is the right system.

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[Stephen Lloyd (Eastbourne) (LD)]

T9. Universal credit is proving to be a real challenge for self-employed people as it fails to account for fluctuations in income from one month to another, meaning that many are losing out on hundreds of pounds of benefits. This is totally counter to the aspirational vision of universal credit that the Government preach, so will the Minister commit to immediately reviewing the benefit’s suitability for the self-employed and fixing this anomaly?

[Damian Hinds]

On the contrary, universal credit specifically responds each month to what a person’s earnings have been in that month. That is at the heart of its design. We want to help people in self-employment to grow their earnings and to ensure that they have sustainable remunerative work, so we have introduced a programme within the new enterprise allowance to help people to do just that.

[Sir Hugo Swire (East Devon) (Con)]

Great unhappiness continues to surround the issue of pensions and the WASPI women, many of whom have come to see us in our constituencies. I believe that there will be a debate next April on a private Member’s Bill on the matter. Given the continuing accusations and counter-accusations about whether people were told about the changes, does my right hon. Friend agree that such a debate will be worthwhile?