Social Security

David Linden Excerpts

Tuesday 9th February 2021 Commons Chamber

[The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince)]

I beg to move,

That the draft Social Security Benefits Up-rating Order 2021, which was laid before this House on 18 January, be approved.

There is no question but that this has been a challenging time, and the coronavirus outbreak has caused financial hardship and disruption for many across our country. That is why, since the start of the pandemic, we have mobilised our welfare system like never before to provide a comprehensive package of support worth over £7 billion, providing an essential safety net for those who need it.

My Department has risen to the challenge, utilising the speed and agility of the universal credit system to deal with the huge increase in people needing our support. There is little doubt that had we relied on the legacy benefit system, we would have seen queues down the streets outside our jobcentres and long delays, leaving families facing financial disruption without support. Crucially, through our universal credit system, we have managed to pay over 90% of new claimants on time and in full.

That has meant that universal credit and the Government’s investment in the welfare safety net have been there to help catch many of those affected by the pandemic. That has been hugely important for the 3 million more people who have made a benefit claim since March last year. I think it is right once again to publicly thank the thousands of work coaches in jobcentres up and down our country, who have responded at speed and scale to ensure that we have supported people in their hour of need. Now they are working tirelessly to deliver our plan for jobs.

As the House knows, the Chancellor introduced the £20 per week uplift to universal credit and working tax credit as a temporary measure in March 2020 to support those facing the most financial disruption. That additional support increased the universal credit and working tax credit standard allowances by up to £1,040 for a year.

I understand that that subject is the elephant in the room; I know that the House is eager to know about the future of the £20 uplift to universal credit. The uplift sat, and continues to sit, outside today’s annual uprating order and is therefore not directly relevant to today’s proceedings, but I have to say that the Labour party is simply wrong in its use of emotive language that the Government plan to cut universal credit in April. In fact, the only talk of cutting universal credit in April has come from the Opposition parties. I gently say to them that they should be very careful with their use of emotive language and what they say in this House, because scaremongering in this House has real-world consequences, which the Department sees every day in claimant behaviour.

[David Linden (Glasgow East) (SNP)]

The Minister will be aware of the cross-party Select Committee on Work and Pensions report published this morning, which speaks of the need to extend and make permanent the universal credit payment. Does he think that his Conservative colleagues on the Committee who authored that report are scaremongering when they talk about the damage that would happen as a result of not continuing that past April?

--- Later in debate ---

[David Linden (Glasgow East) (SNP)]

Before I get to the substance of my remarks on the order before us, I want to take a moment to pay tribute to my hon. Friend the Member for Airdrie and Shotts (Neil Gray), who previously served as Scottish National party work and pensions spokesperson. More than just an exceptional five-a-side football player, he was a passionate advocate of social justice long before he entered this House, and although I am sad that he will soon be leaving this Parliament, I very much hope that Westminster’s loss will be Holyrood’s gain as he seeks to represent the finest town and football club in our national Parliament.

In taking on this role of shadowing the DWP, there are many things on which I will disagree with the United Kingdom Government in terms of policy and ideology, but I am very much on the same page as the Minister in paying tribute to our work coaches and DWP staff, who are the finest in the land, as I see at Shettleston jobcentre in my constituency.

Let me turn to the order before us. To be blunt, after a decade of Tory cuts to social security spending and with millions facing hardship, current social security provision simply does not go far enough to support people in a decent and caring society. These policies are part of a wider austerity agenda that continually attacks the most vulnerable in society. We see it time and again: the two-child limit, and the associated rape clause; and the benefit cap. The list gets bigger, yet the Union dividend for Scotland gets smaller. The structure and support of our social security system says a lot about us as a society and how we treat the most vulnerable when they need that safety net the most. Right now, this Tory Government are failing enormously to guarantee the future certainty of social security payments in the coming months. Ministers must therefore listen to the widespread calls to make the £20 uplift to universal credit and working tax credit permanent, and indeed extend this to the legacy benefits.

The crux of this issue for us in Scotland is that 85% of welfare expenditure and income replacement benefits remain reserved to the United Kingdom Government here in London. As we find ourselves in the middle of a pandemic facing not only a public health crisis but an economic crisis, Scotland should not have to wait and merely hope for the UK Government to reject austerity and help the poorest in our communities. The Joseph Rowntree Foundation highlighted the devastating effect of years of Tory austerity and welfare cuts on many families across Scotland, with levels of destitution rising by 35% between 2017 and 2019. Today’s uprating does not make up for four long years of benefit freezing prior to the pandemic. The proposed uplift also fails to account of the financial hardship that many families are facing as a result of the pandemic. Research by the Trussell Trust found that nearly a quarter of a million parents worry that they will not be will be able to properly feed their children if the £20-a-week boost to universal credit is whipped away in April. I do not think that the Minister would be suggesting that the Trussell Trust is scaremongering.

A case from our citizens advice bureau in the west of Scotland reports a client with a young baby facing financial difficulties as a result of unexplained deductions to her benefits. That client’s deductions are around £50 a month, meaning that any removal of the uplift will push her into more severe hardship. I do not think that the Minister would be suggesting that the citizens advice bureau in the west of Scotland is scaremongering. Indeed, at a national level, Citizens Advice Scotland reports that, without the universal credit uplift, more than seven in 10 people receiving complex debt advice from citizens advice bureaux will be unable to meet their basic living costs. I do not think that the Minister is suggesting that Citizens Advice Scotland is scare- mongering.

Throughout the pandemic, we in the SNP have urged the UK Government to make permanent the £20 uplift to universal credit. However, it is not only the SNP demanding urgent action; these calls are coming from right across the political spectrum. In its report published only this morning, the Work and Pensions Committee said:

“We stand by our recommendation—made in October 2020—that the increase in Universal Credit should be maintained, with annual inflation-based increases.”

It went on to say that

“if the Chancellor cannot yet commit to making the increase permanent, he should at the very least extend it for a further 12 months.”

I do not think the cross-party Work and Pensions Committee, which includes a majority of Conservative MPs, is scaremongering.

A cross-party report published last week by the all-party group on poverty urged the Government to retain the uplift and to suspend the benefit cap. I do not think the all-party group on poverty, co-chaired by the hon. Member for Thirsk and Malton (Kevin Hollinrake), is scaremongering.

The Prime Minister’s assurance that the £20 uplift will remain in place until at least April is simply not good enough. People are now facing a cliff edge in April, because the UK Government have failed to act and, as usual, have let the issue run on until the 11th hour. Analysis by the Scottish Government has made it clear that removing the £20 uplift will have a devastating impact, forcing a further 60,000 people in Scotland, including 20,000 children, into poverty.

This £20 uplift has helped 2.5 million households across the UK during the pandemic, but the effects of the pandemic will be long lasting, with many industries suffering and countless people facing redundancies, so it is clear that this uplift needs to remain. The British Government have a moral duty to ensure that people have enough money to get by, so I argue that making this small increase permanent would be a big step towards doing that.

[Patrick Grady (Glasgow North) (SNP)]

I congratulate my hon. Friend on his appointment to his new post. Is it not the case that lots of families are, for the first time, experiencing what it is like to be on universal credit? There will be a double whammy for those who have come on to universal credit over the course of the past year and then face this cliff edge of the further reduction. It is actually increasing the long-term cost to the Government, society and the economy if people are not properly helped back on their feet from the pandemic.

[David Linden]

My hon. Friend hits the nail on the head. Far too often during this pandemic—whether in response to the public health aspects of the pandemic or, indeed, to the economic aspects of it—everything the Government have done has been about trying to get to the next day. It has been about trying to get a quick win and just get through the day, but unless we see a strategic thought-through process from the Government, we will continue to see these problems reinvent themselves.

Alongside increasing universal credit at the outset of the pandemic, the UK Government enhanced local housing allowance to cover the lowest 30th percentile of market rents. Both these actions effectively reversed the effect of George Osborne’s freeze on the benefit introduced in 2016. The benefits freeze is a prime example of what the Tories believe to be acceptable social security policy, but the Joseph Rowntree Foundation has made it very clear that the benefits freeze has been the biggest contributory factor in exacerbating poverty levels among working families.

Although there was a welcome increase to universal credit during the pandemic, there was sadly no increase to legacy benefits such as employment and support allowance and income support. Without this increase, those who are claiming legacy benefits face unprecedented financial challenges related to the pandemic, and this further risks worsening the financial situation for those claimants who are already facing difficulties. That specifically includes those with disabilities who cannot and should not be left behind by this Government who already have a pretty woeful record when it comes to penalising those with a disability. Increasing the value of the legacy benefits would also protect people from having to make complex and very difficult decisions about whether they would be better off moving to universal credit. The Government should ease pressure on households receiving legacy benefits by applying an uplift to mirror increases to the standard allowance within universal credit.

Before I conclude, I want to make reference to the two-child policy and rape clause. The Minister is probably wincing at the reference to the rape clause—indeed, he recently wrote to my hon. Friend the Member for Glasgow Central (Alison Thewliss), pleading with her not to call it that. Presumably, Ministers would prefer it to be given its Sunday name: the non-consensual-sex exemption. If the Minister is embarrassed by the reference to the rape clause, I suggest that it is not the wording that should embarrass him, but the very essence of a policy that is surely the most barbaric ever to come out of Whitehall.

The Westminster austerity agenda continues to punish some of the most vulnerable people in our communities and make their lives a misery. The order before the House today is a mere formality; for as long as Scotland remains chained to Westminster, my party and I will always speak up for the most vulnerable and make the case for a decent, generous and robust social security system. But there is no escaping the fact that until Scotland is independent we are forced to accept the majority of social security policy from a Westminster Government we did not vote for—whose support, at best, could only be described as meagre.