(1 year, 5 months ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
It is a pleasure to serve under your chairmanship, Mr Robertson. I congratulate my right hon. Friend the Member for Bexleyheath and Crayford (Sir David Evennett) on securing the debate. I have heard him talk many times about how important social mobility is to him, and we have had conversations about it. He is right that we have slightly lost focus on the issue in recent years.
Social mobility has been very important to my own personal and professional life. I ran three charities for disadvantaged young people, the last of which was called the Social Mobility Foundation. I was on the original Social Mobility and Child Poverty Commission, when Alan Milburn was the chair. I chair the social mobility all-party parliamentary group. The two words “social mobility” have been very important in both my personal and professional life.
If there is one key point in what I will say, it is that it is everybody’s responsibility to make social mobility happen. On the commission, we used to say that we can get into a situation where employers blame universities, which blame schools, which blame families—and everybody blames the Government—and that, actually, if at each stage of people’s life cycles things were done slightly differently, obstacles that are in the way of social mobility would be removed.
Starting with the early years is very important, but it should not be an obsession. It does not necessarily provide what Geoffrey Canada of Harlem Children’s Zone calls the escape velocity that will take someone through the rest of their life—even though we might hope it does. Some academics would say that about 80% of our outcomes are about what happens in the home rather than in school. We focus on school in this place. That is why things like family hubs are so important; every parent wants to be able to do the right thing, but they do not necessarily get the right advice and guidance about what to do. Being school-ready at age five is so important to how children then access school as they move through their lives. That is one big area that is not within the Government’s control, but it is important that we encourage the right things.
Then there is school. The Prime Minister said that education is the closest thing to a silver bullet that we have for social mobility.
Before my hon. Friend moves on to school-age children, there are things the Government can do to support disadvantaged and vulnerable children at an early age to improve not only educational attainment, but many aspects of their lives. We can look at longitudinal studies of schemes like the Family Nurse Partnership, which targets vulnerable and poorer families, provides targeted support for new mums and dads, and helps children be school-ready. Will he briefly comment on that, because that is something the Government could put money towards?
My hon. Friend is absolutely right. We have to talk more about this because too often in politics people on the left fear they will demonise parents and on the right they fear they will appear to be the nanny state if they talk about it, but politicians and commentators who say those things are doing exactly the right things for their children. He is absolutely right about the Family Nurse Partnership and a whole range of other things, including family hubs.
The schools system is the easiest lever for politicians to pull, and we have seen huge increases in attainment through academies, free schools and various other initiatives. We have seen London state schools go from being the worst to the best, but we still have parts of the country where the standard of education is not good enough. We have a gender gap in education where girls do better than boys, and an ethnicity gap where certain ethnic groups do better than others, but the biggest gap in education is between children who have free school meals and those who do not. Although we have been making progress—albeit slow—covid has made that situation a lot worse, and has destroyed a lot of the progress we have made. As my right hon. Friend the Member for Bexleyheath and Crayford says, the national tutoring programme is important, but we have to do more to focus on that.
Let me quickly canter through some other areas. This is about further education colleges and ensuring that the courses they provide will help people in the employment market, which is what we were trying to get to with the Skills and Post-16 Education Act 2022. When it comes to universities, the success they often trumpet about the percentage of state school students they have masks the fact that a huge proportion of them went to selective state schools—grammar schools—and that the proportion of comprehensive school entry pupils is still low. There is more for them to do, particularly at the most elite universities.
Finally, on professions, Members will have heard me say previously that someone is 24 times more likely to become a doctor if their parent is a doctor; only 6% of doctors are from a working-class background. Again, that is not in the Government’s control. Employers have to do something about that. Some people will say that social mobility is not about people leaving their home area, going to a Russell Group university and getting a middle-class job, but show me someone who says that, and nine times out of 10 they will have done exactly that in their own life. That does not invalidate the point—we need to have both, and to move jobs and investment to those areas—but do not tell me that we should not be trying to get more people into those universities and professions, because they are controlling the country. If we are to get to a position where talent and opportunity is everywhere, everybody has to play their part.
I have to ask Members to please stick to four minutes now.
(1 year, 7 months ago)
Commons ChamberI would, of course, be happy to look at the right hon. Gentleman’s private Member’s Bill. He makes an important point, which is that we have to ensure that employers see disabled people with eyes wide open—their abilities and the contribution they can make. That is why we promote Disability Confident, and why we have so many work coaches up and down the country focusing on just that.
I hope hon. Members know that pension credit take-up is a priority for me and for the Government. Our £1.2 million communications campaign has been ongoing since April. We had a huge push before Christmas, ahead of the cost of living payments, and I am grateful to the many hon. Members who came to the drop-in session. In addition, I know that my hon. Friend does a huge amount of work in his constituency to boost take-up.
I was pleased to support my hon. Friend’s campaign to increase the uptake of pension credit in the run-up to Christmas. Will she update the House as to whether or not that has been a success and whether we have seen an increase in uptake?
I am delighted to tell the House that we saw 7,200 claims in the week commencing 12 December, which is a 177% increase on the previous year. I thank all hon. Members who have worked hard in their constituencies to make this happen.
(1 year, 7 months ago)
Commons ChamberWe do not think about our pensions enough, let alone talk about them enough. We should acknowledge the fact that a lot of people did not have them, which is why auto-enrolment has been such an important policy. Since this Government introduced auto-enrolment, nearly 11 million more people have been saving into a pension, although some people still do not have them. Auto-enrolment has been a welcome development.
Even people who do have a pension can find them difficult to understand. They see an amount on their pay slip that disappears from their pay, but they do not really have a sense of what that will mean for them in retirement. The total sum that they have saved may look large until it is divided across their life expectancy after they have retired; that might make it seem a much smaller sum. We know that contributions are not generally at the levels they should be.
We are very fortunate to have a Minister who is passionate about pensions, and about making sure that people have good pensions that are clearly understood. That is also why these dashboards will be so important, because it is a complex area that people do not understand, and having one place where someone can clearly see how much money they have saved will help them to plan for their retirement. To the point made by my hon. Friend the Member for North Devon (Selaine Saxby), people often collect several pensions through their working lives from different places that are not easily transferable. They can entirely lose the information about them; they have no sense of how much is in each of them, or how to bring them together and what that might mean. As such, the Bill is very welcome.
We have often seen scandals arise from the complexity of pensions, and we all know of very high-profile national scandals involving pensions. We know of some local cases—I have my own local case that I have been working on—where people have thought their money would be well guarded, but have found decades later that the promises that were made to them have been abandoned, and when they have tried to seek redress, they have felt blown off by authorities: “Too late, too bad. You’ve lost that money.” As such, while I would like to think that none of the people managing pensions would take money out of their assets in order to pay fines, I am afraid that based on all the things we have seen in the pension industry over the years, I do not have that confidence. I totally accept that it will be a small minority, but the safeguard in the Bill is a very important one to have in place, and I congratulate my hon. Friend the Member for Cheadle on bringing it in.
(1 year, 9 months ago)
Commons ChamberI will give way to my hon. Friend from Leicester, given that I am a Leicester MP, and then let the hon. Gentleman in.
My hon. Friend is absolutely spot on, as she always is. May I also say what a pleasure it is to see her back defending the people of Leicester West after her maternity leave.
Does the right hon. Gentleman accept that, given that the Government are making their announcement about the triple lock next week and that it takes effect in April, it is therefore irresponsible to suggest that pensioners will face the sort of cuts that he is talking about? We should just wait for the announcement.
I do not know if the hon. Gentleman was in the House about three weeks ago, but that was when the then Conservative Prime Minister committed from the Dispatch Box to maintain the triple lock. If the hon. Gentleman wants to stand up for the 21,000 pensioners in the Wantage area who are set to lose £425 from a real-terms cut, he should vote with us in the Lobby this afternoon.
Let me make a bit of progress. A £900 cut in income, around £37 per month, is punishing at the best of times, and it is a cut for people who feel they have paid their dues—people who, like my mum, feel they have paid their stamps. It is a cut for those who have worked all their lives and who often live now with a disability or in ill health because of their hard work. Whether because of the hard, unyielding occupations that they may have worked in, they might live with chapped hands, sore backs and sore knees. They deserve a retirement of security, dignity and respect. It would be a betrayal of Britain’s almost 13 million pensioners to cut the pension a second year in a row, and this House should not stand for it.
Why has the triple lock been in the Chancellor’s crosshairs? It is because Conservative Members presented, cheered and welcomed the most disastrous Budget in living memory. It was a Budget so reckless and so cavalier with the public finances that it crashed the economy with unfunded tax cuts, sent borrowing costs soaring, gave us a run on pension funds, and forced mortgage rates to ricochet round the money markets, costing homeowners hundreds of pounds extra a month, and now they want us all to think it was just an aberration—that it was all just a bad dream; that Bobby Ewing was in the shower all along. But for the British people it remains a real nightmare, and now the Government are expecting pensioners to pay the price. Well, we will not stop reminding them of the Budget that they imposed on the British people.
In recent days, ahead of this debate, I have been inundated with messages from Britain’s retirees saying that that price is far too high. This was what Hilda wrote:
“We believed that with the triple lock in place, our state pension would keep pace with wages and inflation…This government cynically dismantled the triple lock and threw state pensioners under the bus”.
This was what Mary wrote to me:
“I am in tears of frustration and anger…Not all pensioners are well off. I for one am really struggling”.
This was from Patrick, who is aged 73:
“How can a responsible government minister welch on a promise?”
That is the crux of the matter, because every Government Member stood on a manifesto in 2019 that made a clear promise to the triple lock.
Six months ago, the Prime Minister, when he was the Chancellor, told us from that Dispatch Box that the promise of inflation-proofing the state pension would be honoured for the next financial year:
“I can reassure the House that next year…benefits will be uprated by this September’s consumer prices index”.
He went on:
“the triple lock will apply to the state pension.”—[Official Report, 26 May 2022; Vol. 715, c. 452.]
Those were the Prime Minister’s words six months ago. He tells us that we should not have a general election because that 2019 manifesto gives him a mandate, but he will not give us a straight answer to a very simple question: will he honour the promise he made from the Dispatch Box six months ago? So much for his promise to restore “integrity and professionalism” to Downing Street.
A year ago, the House debated breaking the triple lock. The then Pensions Minister, now promoted to Minister for Employment as Minister of State—I congratulate him of course, and I am pleased that he is back in the Department after a brief period away—last year justified cutting the state pension, telling us it was only for one year. Just a year ago, on 15 November 2021, he said:
“The triple lock will, I confirm, be applied in the usual way for the rest of the Parliament.”—[Official Report, 15 November 2021; Vol. 703, c. 372.]
So what has changed?
Today’s motion is curious because, next week, we will get the decision on this issue, but let us leave that aside for a moment. Last year, I spoke in a debate on the triple lock. At that point, we had the highest level of basic state pension in relation to earnings in 34 years. At that point, it had increased by £2,050—it is now £2,300. Along with auto-enrolment, that has been one of the most significant policy decisions taken by this Government not just in pension policy, but in domestic policy much more broadly. We now have more than 19 million people auto-enrolled in workplace pensions, which is a fantastic achievement. But of course we do not just support our pensioners via the triple lock, generous though that has been. We know that pensioners spend a higher proportion of their money on energy, and there they have had a £400 reduction. They have had an energy price guarantee, which will save, on average, £700, and a winter fuel payment topped up by a pensioner cost of living payment, worth up to another £600.
We have to think about the poorest pensioners and not just think about pensioners as one big group. There we see a further cost of living payment of £650. We see cold weather payments if the temperature of their homes drops below a certain level. Underpinning both those things, we see pension credit. We have to get more people to claim it who are eligible for it because it is worth on average £3,300, which is yet more support. Time and again, both on the triple lock and on the other support the Government give, they have been very generous and constantly thought about how best to support pensioners.
When it comes to Labour motions and Labour Front-Bench speeches, I look for what is not there as much as what is. The motion is specifically about keeping the triple lock for the coming year. As I say, we will get the decision next week. The motion does not say where to get the money for that, but let us leave that to one side for now, even though it is several billion pounds. More importantly, it does not say anything about what should happen beyond that. I listened carefully to the shadow Secretary of State to see what his view on future pension policy might be, but I am afraid that I did not hear much. That is notable because week in, week out in this House what we are hearing from the Front Benchers is, “The next Labour Government will do this” and, “The next Labour Government will do that” but we did not hear that today on pension policy.
Pensions are the second highest category of expenditure after health, so a party that hopes to form a Government ought to have a view about what it wants to do on pension policy that is not just, “We will continue Conservative policies” or “We will support all the expenditure but we will not support any reductions in other areas.” I hope that in his wind-up we might hear from the shadow Minister, the hon. Member for Cambridge (Daniel Zeichner), for whom I have a lot of time, what Labour’s view of pensions might be. If the answer is, “We would have to look at the finances to understand what we will do” that is precisely what the Government have been doing to form their decisions next week.
(2 years, 2 months ago)
Commons ChamberSince 2012, in the Wantage constituency, 14,000 local men and women have been automatically enrolled into a workplace pension. We thank the 2,410 local employers who are helping these employees to save from 8% of their earnings.
Auto-enrolment has been one of the most successful Government policies for the workplace in decades, but my hon. Friend will know that contributions are often not yet at the levels needed for people to have a secure retirement. What steps is he taking to encourage an increase in contribution levels?
We keep all policies under review, and auto-enrolment got to 8% only in 2019. We will proceed with the 2017 auto-enrolment review by lowering the eligibility age and making it from the first £1 earned in due course. We will also look at all matters in terms of contribution rates on a longer-term basis as time moves on.
(2 years, 7 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I agree absolutely with the right hon. Gentleman’s comments about welfare advisers. They play a vital role, whether in Greenwich or in Macclesfield, where we have the Disability Information Bureau, and provide the extra support that people in very vulnerable circumstances often need. He highlighted the situation involving Ms U; as I said in my apology, it was very concerning, and those compensation payments will be paid, as I have reassured him.
On the point about broader compensation, of course we only received the report this morning—it has only just been published—so we will consider it and review its recommendations, as is entirely right. We would also say that if people believe they should have further compensation and want to contact us at DWP, they can contact us through the various helplines that have been set up. There is a team working specifically on this broad issue, and if they prefer, they can go through the complaints process, so those avenues are available to those individuals. In these situations we are typically not compelled to come forward with compensation payments, but we will consider the wider points and the views put forward by the report.
I know from the individual constituent cases I have dealt with how distressing it is when people’s benefits are underpaid. One issue here is dealing with compensation payments, but the other is taking the steps to ensure something like this does not happen again. Can my hon. Friend assure me that those steps, if they have not been taken already, are in the process of being taken?
Lessons really have been learned from this situation, and if underpayments are made, that can have a real impact on people’s lives. Lessons will be learned from this. While it is not my departmental responsibility, I will take this away and work closely with the Minister for Disabled People, Health and Work and the Secretary of State, who is not able to be here today, to see what further lessons we can learn as a result of this report. As I have said, we must formally reply to the report as well.
(2 years, 11 months ago)
Commons ChamberThe triple lock has been a successful policy that has seen the basic state pension increase by 35% since 2011—£2,050 in cash terms, and, importantly, the highest level of the basic state pension in relation to earnings for 34 years. My political interest and awareness about this grew when the last Labour Government were in power, because they came into power when I was 15. I well remember the outcry over the 75p a week increase in the basic state pension early on in their term and the outcry over the 25p a week increase for older pensioners towards the end of their term. So it is important that we get these things right, and the triple lock has been a considerable advance in how we support pensioners.
We are now faced with the interplay of two things: an anomaly in earnings, as has been touched on, where wages have fallen as a result of furlough and the economic conditions of the pandemic and then sharply risen; and over £400 billion spent on protecting people’s jobs and livelihoods that will need to be paid back. On the triple lock, often, a lot of the commentary pits young against old. As someone whose pre-politics career was entirely spent supporting young people, one might expect me to take a particular side on that, but actually, on this, I think that it is the wrong characterisation, because pensioners are not a group of people who just sit there worrying solely about the value of their pensions. They will have children and grandchildren whose job prospects they are concerned about. They will have relatives who were furloughed who might have otherwise lost their jobs or who work in the public sector where unfortunately pay has been frozen. They will be concerned about international aid, where we have taken another difficult decision. Although I have had emails from people who are not happy about the decision that has been made about the triple lock, I have had emails right up until this debate and from quite a while ago saying that, in the context of all the difficult decisions that have been made, it would not be right to make an increase to the basic state pension that is so far above what other people can expect.
It was right of the Government to introduce the triple lock in 2011, it was right to change the legislation last year so that instead of getting no increase pensioners still got a 2.5% increase, and it is right to move to a double lock for a year where in all likelihood pensions will still rise by at least 3% thanks to prices growth. Most people, including most pensioners, understand why we are making that decision, and I support the Government in doing so.
(3 years, 1 month ago)
Commons ChamberMy hon. Friend is absolutely right: we want to see issues resolved as quickly as possible. I would stress that the vast majority—around 95%—of payments are paid correctly, and the Department has processed over 4.3 million new universal credit claims since March 2020. The priority has been to get money to those people who need it desperately as quickly as possible. To do that, we streamlined some of our normal checks, but we are currently revisiting any high-risk claims that we paid during the covid-19 trust and protect period. I would of course be very happy to meet my hon. Friend to talk about this issue in more detail.
Engaging with charities and training providers is central to our support for young people. This collaborative working includes the co-delivery of our national network of more than 130 new DWP youth hubs, helping us to assist young people to be ready to take up opportunities in growing sectors and move into new kickstart roles.
I am one of those people who do not think it is a good idea for everybody to work from home, because it means that young people do not have older workers that they can observe and chat to, to learn the ropes. However, while a lot of office space sits empty or underoccupied, would my hon. Friend consider encouraging employers to make that space available to charities and training providers in order to train young people in the skills they need?
I very much understand my colleague’s comments. Supporting young people to thrive and find new opportunities is an important priority for me, and I take his comments on board. This is exactly what we are doing with our new DWP youth hubs. Jobcentre Plus works with employers, training providers and charities to identify local training needs and to ensure that opportunities and suitable outreach are available for all claimants, including young people.
(3 years, 7 months ago)
Commons ChamberThe hon. Lady is right to point out that work is under way in this policy area. The DWP Minister in the Lords remains responsible for the policy; she is offering to all MPs and peers a session on 24 February at which they can raise any areas of concern, so I will make sure the Lady is invited to that. We recognise that there are problem areas and I share a number of the hon. Lady’s concerns, but it is important to stress that the majority of supported housing is provided by well-run, registered social landlords with a strong social mission.
The £170 million covid winter grant scheme is supporting disadvantaged people through the challenging winter months to the end of March with food and utilities. The first wave of funding was given to councils in November. The next tranche of payments is due next month and support for Northern Ireland, Scotland and Wales is already included in the pre-agreed Barnett funding. I have been pleased to see councils go beyond just issuing food vouchers. For example, in Telford and the Wrekin, where a large number of pupils had reportedly been going to school without a warm coat, some of the funding will help ensure that these disadvantaged children are warmly dressed for the cold winter months.
I thank my right hon. Friend for that statement. As well as providing those on low incomes with food boxes, the charity SOFEA in my constituency works with utility companies to try to drive down the costs of people’s bills, recognising that food is not their only challenge. I am hugely supportive of the covid winter fund, but does my right hon. Friend agree that what happens to those on low incomes is not just about what the Government do, and that we need all businesses to look at what more they can do to help drive down the cost of living?
My hon. Friend is absolutely right that all businesses can play a part. I praise those mobile phone and internet companies that have offered low-cost packages to people while they are on benefits. In particular there is the warm home discount scheme where my Department works closely with utility companies on data matching. Nearly 1 million eligible claimants received the £140 discount automatically and did not need to apply.
(3 years, 9 months ago)
Commons ChamberI congratulate the right hon. Member for East Ham (Stephen Timms) on securing this debate. I think it fair to say that he is well regarded on both sides of the House for his approach to these issues and for his expertise on them, which was reflected in his opening remarks and in his Committee’s report.
I want to speak in this debate because I think the performance of the Department for Work and Pensions during the pandemic has been one of the unsung successes of this period. It saw an increase in claimant numbers between February and August from 2.9 million to 5.6 million. There are few services that saw that level of increase. A lot of services saw a decrease. Some saw an increase, and obviously the biggest pressure was on the health service, but few saw such an increase in this period, and the fact that 93% of people were paid on time is a huge achievement.
I accept that for those among the 7% those delays are very distressing, although I know from my own constituents that the delays are sometimes caused if the Department does not have all the information it needs. I am not saying that that accounts for all the delays—I am sure there have been some things that have gone wrong for that 7%—but I wonder how many services, public or private, could claim a 93% success rate in the past decade or, indeed, the past two or three decades.
I want to pay tribute to the DWP staff. I was at the jobcentre in Didcot just last week, and their commitment and dedication to ensuring that every jobseeker gets the right support hit me in the face the moment I walked in.
I thank the hon. Gentleman for his kind remarks. Does he think the staff should get a pay rise?
We could make the case for all public servants to be given a pay rise at all times, but of course we have to keep a good control over the expenditure that the Government make on behalf of taxpayers. Considerable support has been given, in one of the most generous packages in the world, through the covid period, and I think that has to be taken into consideration when we talk about a pay rise. And of course some public sector workers are getting a pay rise; in fact, I think the majority still are.
I also want to give credit to the ministerial team and the way in which they have worked flexibly, whether in bringing forward the use of Government Gateway identification by six months or in suspending the conditionality on job-seeking for this period. All those things mattered and played an important role. Some of the criticism that has been made of the DWP involves things that I think are reasonable. For example, I think it reasonable still to require evidence of health conditions if someone wants to claim health-related benefits.
I accept the point about not everyone having the right level of digital literacy, but on the other hand, we wanted a system that was quick and easy to access, and we were keeping everybody inside, and I think that probably affected a small but not insignificant minority of people. Some of the other criticisms are about problems that people have with the system as a whole, such as the benefit cap or no recourse to public funds. I am not saying that those issues have not been exacerbated, but they are broader questions than just about the performance of the DWP during this period. I agree with some of the criticisms, however. The delays to mandatory reconsiderations, for example, are a problem. I have seen this for myself, and we have to sort it out. I know that the Department is committed to doing so, and the faster it can do so, the better.
After the Health and Education Departments, the DWP has had tremendous pressure placed on it, and the reason we have heard a lot less about it is that things have gone so well. That is not the case with everything, but it is a service that has gone a lot better than could have potentially been expected at the outset of this crisis, given the increase in the number of claimants. That is backed up by the statistics. The bottom 10% saw no reduction in the income level that they received, and the Government’s package overall reduced the scale of losses by up to two thirds, in the majority of cases, for working people.
The Department should be commended for this. It has some big things on its plate, like the kickstart programme—which I take a particular interest in, given my previous work with young people—and the new Restart programme. It is right to target those people who have been unemployed for at least a year. I think that what we have seen so far bodes well for how it will deliver these programmes.