Welfare Reform and Work Act

David Linden Excerpts

Wednesday 21st March 2018 Westminster Hall

[Rachel Maclean (Redditch) (Con)]

It is a pleasure to serve under your chairmanship, Mr Gapes.

I congratulate the hon. Member for Central Ayrshire (Dr Whitford) on securing this important debate. It is a pleasure to follow her speech, which raised some very important issues. As Members of Parliament, we all want to ensure that the welfare system operates correctly. I am a strong believer in what the Government are doing on welfare and find myself, once again, in a debate about welfare reform. I am glad to be here, because one of the Government’s most important jobs is looking after those who are unable to look after themselves. I am proud of what this Government have done during the time I have been in Parliament, and of the record since the 2010 coalition Government and the Conservative Government that followed.

[David Linden (Glasgow East) (SNP)]

The hon. Lady talks about how proud she is of this Government’s actions, but by the time this debate concludes, at 11 o’ clock, St Stephen’s church café in Redditch will open as a food bank. Does she not understand that there is a clear correlation between this Government’s actions on welfare reform and the food banks in her constituency?

[Rachel Maclean]

I visited the food bank and have spoken to the people there, but time does not permit me to talk in depth about those issues. I have an ongoing dialogue with both the people who run the food bank and the people who use it. I understand very well what is happening in my constituency of Redditch and, if the hon. Gentleman will forgive me for moving on, I will speak about some of my experiences with universal credit and the jobcentre there.

I will focus my remarks on universal credit because it is a key plank of the Government’s reforms. Since my election, I have made it a priority to understand what services exist for my constituents who face challenges, whether those are unemployment, poverty or physical and mental health problems. As a constituency MP, I understand very well what is going on. There are areas of deprivation in Redditch, as there are in every constituency up and down the country. It is up to the Government to ensure that the help is on the ground, where it is needed.

It is important to revisit the principles behind the drive to reform the system that we inherited from the last Labour Government. In that system, people had little or no incentive to get back into work. When they did, they found themselves worse off and liable to lose money if they took on more hours or a better paid job. How could that be right?

The hon. Member for Central Ayrshire talked about tax credits. It is my understanding from DWP statistics that tax credit spending ballooned from £1.1 billion at its introduction to £30 billion a year by 2015. I do not think it is right to spend such a rapidly escalating amount of GDP on benefits. That indicates there is something fundamentally wrong at the heart of the system.

There is widespread public support for the principle that welfare should be not a life sentence, but a lifeline as someone transitions through difficult circumstances or the loss of a job. The old welfare system had become labyrinthine in its complexity, with a number of different benefits adding to the confusion over what someone was entitled to. It was not a system that gave people a ladder to a better life, but rather one that trapped them in worklessness and poverty.

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[David Linden (Glasgow East) (SNP)]

I warmly congratulate my hon. Friend the Member for Central Ayrshire (Dr Whitford) on securing this important and timely debate. I have come to the debate to offer my views from a practical, not an ideological, point of view. I pride myself on being a constituency MP. When I go to my surgeries in Parkhead, Baillieston, Easterhouse or Cranhill, people do not tell me how wonderful the system is. When I go to the jobcentres that are left in my constituency, because the UK—

[Alex Burghart]

I am also a constituency MP and I take my casework very seriously. Does the hon. Gentleman acknowledge that it is not the nature of casework that people come and tell us when things are working? People come and tell us when things are not working. Naturally, we see an unrepresentative portion of the population.

[David Linden]

As well as being a constituency MP who does surgeries, I spend two hours every week door-knocking in my constituency. I do not regularly find people opening their door and saying to me, “This welfare system is absolutely fandabbydozy.”

This week marks two years since the Welfare Reform and Work Act 2016 implemented some of the most punitive cuts from this Government. Some of those were a fresh round of cuts, and some built on the cuts made in the Welfare Reform Act 2012. This debate allows us the opportunity to shine a bright light on the damage caused by those punitive welfare reforms, which have had a direct impact on some of the most vulnerable people in my constituency. I will address two policy areas in my remarks: first, the punitive benefit freeze, which leaves people out in the cold, quite literally, while the cost of living soars, and secondly, the medieval two-child policy and abhorrent rape clause.

Figures commissioned by the SNP and put together by the Library show that, based on the spring statement 2018, between 2018-19 and 2020-21, the benefit freeze will save an additional £3 billion compared with what was forecast for those years in the summer Budget 2015. In November 2017, the Joseph Rowntree Foundation said that the benefit freeze means that between 2010 and 2020, a couple with two kids will be £832 a year worse off. It has also said:

“The freeze is the single biggest policy driver behind rising poverty by the end of the Parliament.”

The impact of the poverty premium means that people on low incomes face higher costs as a proportion of their income than those on higher incomes, due to the nature of products and services. People on low incomes often cannot pay for goods or services by fixed direct debit, but for many things, such as mobile phone bills, energy bills and bank cards, companies only offer discounts based on people signing up for a direct debit.

Economic shocks such as the breakdown of a car or a washing machine are far more significant for people on a low income. I know that from direct experience, having spent two years working at Glasgow Credit Union. One of the most heart-breaking things about being in that job was people coming to me for loans to pay for a washing machine that had broken down or for school uniforms.

Sadly, that is the reality we are now in. I am disappointed that that lived experience did not come into the previous speech. We see it week in, week out when we do our constituency surgeries. With all those factors, the benefit freeze is an additional financial burden on disadvantaged people. The Government must urgently restore the real value of benefits by scrapping the freeze.

The second issue I will raise is the Government’s medieval two-child policy that would frankly make China blush. The idea that in 2018, we are saying to families, “Two children in your family—that’s it. The state won’t pay for any more than that,” sends a strong signal from this place. [Interruption.] If the Minister is unhappy with that, I am more than happy to take an intervention—absolutely not.

[Dr Whitford]

Will my hon. Friend give way?

[David Linden]

I am happy to give way to my hon. Friend, though.

[Dr Whitford]

Does my hon. Friend accept the basic premise that we have an ageing population and we need people to have children so we can balance that? Instead, we are relentlessly punishing people who have children.

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[David Linden]

Absolutely. The Government have often spoken about their family test for policy. I do not think that turning round to a family and saying that they can have only two children is appropriate, given that family test.

The Women’s Budget Group has said the cut to child tax credits will disproportionately hit black, Asian and minority ethnic women, who tend to have larger families. The idea that we put victims through the trauma of having to prove to the Department that their child was born as a result of rape sends a strong signal from the other side of the House. It is not something we would do in Scotland.

That is precisely the point, because this legislation, which has been on the statute book for two years, genuinely has an impact on the “just about managing” families that the Prime Minister spoke about when she took office. It is not too late for the Government to think again and implement a social security system that delivers social justice, fairness and, above all, dignity for the most vulnerable in our society.