Social Security and Pensions Debate
Full Debate: Read Full DebateDavid Linden
Main Page: David Linden (Scottish National Party - Glasgow East)Department Debates - View all David Linden's debates with the Department for Work and Pensions
(1 year, 6 months ago)
Commons ChamberIt is a pleasure to follow the hon. Member for Amber Valley (Nigel Mills), who is always incredibly thoughtful on these issues, and it is certainly a pleasure to serve alongside him on the Work and Pensions Committee.
As we debate today’s annual uprating orders, we do so against a grim economic backdrop and at a time when some of the most vulnerable people in our communities are battling literally to survive this cost of living crisis and make it through the winter. However, I think it is important to recognise that the cost of living crisis is not a new thing. Yes, the war in Ukraine has had a profound impact on the global economy, and I do not think anybody in this House would deny that; and nor is anyone denying that the coronavirus pandemic has left serious scarring on the economy. But the inescapable fact is that poverty in all its forms was in a dire situation pre-pandemic. Let us take child poverty as just one example. Figures from the Child Poverty Action Group show that, pre-covid, there were 700,000 more children in poverty than at the start of 2010. Rising child poverty coupled with a cost of living crisis demands radical action from a British Government who must do more—so much more—to end the scourge of child poverty.
Today’s uprating orders are certainly a step in the right direction. The orders for the financial year 2023-24 are welcome, and we certainly will not oppose them. However, Ministers should be under no illusion that these will make up for four very long years of benefit freeze prior to the pandemic. Data from the Joseph Rowntree Foundation’s cost of living tracker in October paints a horrendous picture that should shame every single one of us. About six in 10 low-income households are not able to afford an unexpected expense, over half are in arrears and about a quarter use credit to pay essential bills, resulting in over seven in 10 families going without essentials. That, I am afraid, is the stark reality of Tory Britain in 2023, and no alternative facts in the Minister’s red folder can seek to deny that.
I thought it might be a good idea to have a look a bit closer to home—indeed, in the Minister’s own constituency —and see what Tory Britain really looks like in Hexham, so I had a look at the latest available annual report for the West Northumberland food bank, based in the Minister’s own constituency. Page 3 of its latest published annual report—again, I am quoting from the Minister’s own local food bank—states:
“Listening to people’s concerns on the helpline we became increasingly aware of rising child poverty, the two-child policy has plunged hundreds of thousands of children into poverty across the UK, since 6 April 2017. Parents having a third or subsequent child are no longer eligible for support for that child through benefits worth up to £2,830 per child per year”.
It goes on, remarkably, to cite statistics from the Minister’s own Department—this is his own food bank—saying that
“DWP…statistics show that in 2019-20 24% of children in the Hexham constituency were growing up in poverty, that’s almost 3,000 children and it’s increased by 6% since 2015, that’s 738 more children born into poverty in just 4 years.”
They are not my words, but the words of the Minister’s own local food bank’s annual report.
The red folder that the Minister walks about with may contain all sorts of distorted statistics and soundbites, but the problem is that statistics and soundbites do not put food on the tables of people in Hexham, or indeed anywhere on these islands. For example, instead of increasing the benefit cap, which has been frozen since 2016, the British Government should, in my view, just abolish it entirely, because it is pushing more and more people into poverty, and those of us who have surgeries on a Friday morning can see that clear as day.
If history teaches us anything, it is that trying to govern simply to appease headline writers in comics such as the Daily Mail and the Express does nothing other than further cement inequality and poverty, which is rife in Britain today. The reality is that too many households have now been left behind and will not benefit adequately from uprating because the Tories keep refusing to fix known policy failures. For example, the continued refusal of Ministers to fix the extensive known problems with universal credit is unacceptable and is subjecting vulnerable people to additional unnecessary hardship.
Instead of keeping additional pressures on low-income families, Ministers need to urgently address the fundamental issues with universal credit. A recent report by the Commissioner for Human Rights at the Council of Europe found that the level of support provided under UC was
“a key contributing factor to child poverty.”
The report stated that policies like
“the two-child limit and the benefit cap restrict the amount of benefits that households can receive, regardless of their specific needs, and thereby continue to exacerbate child poverty.”
Therefore, my party stands by its calls to the British Government to reinstate the uplift to UC, and indeed to increase it by £25 a week, and to extend it to means-tested legacy benefits, as well as to extend the benefit cap.
Has the hon. Gentleman or his party calculated how much that would actually cost the taxpayer?
Given the ability of the Government to crash the economy in the mini-Budget by the now elusive right hon. Member for South West Norfolk (Elizabeth Truss)—[Interruption.] Hon. Members have managed to wake up just in time to debate economics. They had nothing to say on food banks or child poverty, but when it comes to money, they are excited. The hon. Member for Bosworth (Dr Evans), who is a parliamentary private secretary, must do better with his interventions if he wants to get into the Government.
Last April, Ministers in Edinburgh called on the British Government to reverse those policy changes. That would have put £780 million into the pockets of Scottish households and it would lift 70,000 people, including 30,000 children, out of poverty in 2023-24.
In its recent submission to the United Nations Committee on Economic, Social and Cultural Rights, Human Rights Watch also gave a damning review of the British Government’s restrictive social security policies, such as the two-child limit and the failure to reduce the cut to universal credit. It set out the negative impacts on the right to an adequate standard of living, to food, and to housing for families with children. It is a depressing state of affairs that thousands of families with children will be pushed into poverty simply because the British Government refuse to scrap the two-child limit on child tax credits and universal credit. In April 2022, 1.3 million children here in these islands were affected by the two-child limit—that is 8.7%, or one in 12 children—and that number will, sadly, continue to rise as nearly all low-income families with three or more children eventually become subject to the limit.
Does my hon. Friend agree that Conservative Members may jeer from a sedentary position, but they have the poverty of people right across Scotland on their hands?
My hon. Friend is absolutely right. I understand that political ideology will separate us, but in the five years that I have been a Member of this House I have struggled to get my head around the fact that, while the hon. Gentlemen who do their surgeries on a Friday morning see the same people as we do in our surgeries, who come and say that the social security system is inadequate and has left them in dire straits, there is no conviction to come into this Chamber and say to the Government, perhaps as the hon. Member for Amber Valley has done, that this is wrong.
I am sure the hon. Gentleman is about to tell us what the Government could do better.
In the same spirit of trying to help those most in need, why do the Scottish Government not mirror our proposed changes to the terminal illness rules within disability benefits?
The hon. Gentleman is missing what is happening, given the limited social security powers that the Scottish Government have. Bearing in mind that 85% of welfare spending is reserved to this place, he will see that we are doing an awful lot to try to help people with social security, but if the Minister wants to back up my calls to devolve all social security to the Scottish Government, that will certainly be welcome.
Research from the Child Poverty Action Group shows that the majority, some 59%, of those affected by the two-child limit are working families. Perversely, some of those families work for the Minister’s own Department, which administers said benefits; that would be funny if it wasn’t so tragic. The fact that a few weeks ago the Lords Minister, Viscount Younger, could not justify to the Work and Pensions Committee how the two-child limit is compatible with the Government’s own family test is a damning indictment of a Minister who is not over his brief and whose policies do not even comply with the family test for which he is responsible.
I turn now to universal credit, which should be topical, given Labour’s significant change in stance. That change provides an opportunity to seek cross-party agreement on reform of universal credit, because all three main parties in this Chamber now agree with the broad principles and the aims of universal credit. The challenge for us now is to make it work and to iron out the creases, which are by no means insurmountable. We know, for example, that the five-week wait for a first payment is needlessly pushing people into hardship. That could be relatively easily fixed by implementing proposals to turn advance payment loans into non-repayable grants after a claimant has been deemed eligible.
On sanctions and conditionality, far too many households face destitution, largely because DWP rules are pushing them into debt through sanctions and deductions. Recent changes to the universal credit administrative earnings threshold mean that even more people will risk having their vital universal credit payments sanctioned. These 600,000 people are already working, and there is clear evidence that sanctions do not work in getting people into work or to increase their hours or earnings. To that end, I have tabled early-day motion 715 to annul the relevant regulations, which I hope the Government will grant us time to debate and vote on, and I certainly hope we can count on Labour support in that.
However, there are other problems with sanctions and conditionality. For example, individuals who have had a sanction applied have also been denied the vital cost of living payments the Minister was rightly trumpeting earlier. That demonstrates a fundamental issue with the DWP’s attitude to those on low incomes, because preventing vulnerable families from receiving the social security they are entitled to when they need it most strikes me as somewhat back to front.
I will turn now to the UC childcare offer. If the Tories actually cared about working people, they would want to improve childcare support for UC claimants by supporting them with childcare costs up front and in full. The SNP continues to call on the Government to increase payments for those aged under 25 in line with increases for older claimants. We also continue to call for local housing allowance to cover the average cost of rents and for the shared accommodation rate for those under 35 to be suspended—that age range has always struck me as somewhat arbitrary.
The SNP has called for the British Government to fix these fundamental flaws in social security and to deliver a system that actively tackles poverty and empowers people. However, it is an inescapable and undeniable fact that the Scottish Government cannot change these policies while 85% of welfare expenditure and income-related benefits remain reserved to this institution here in London, and that includes universal credit, which is of course a reserved benefit. The only way to ensure that Scotland has a decent social security system is for us to take all legislative and fiscal responsibility for these issues by way of independence and to no longer hope that the full-fat Tories, or the diet Tories on the Labour Benches, will one day reform the social security system, which is clearly broken beyond repair.
I turn now to the order on pensions, and I start by genuinely welcoming the Pensions Minister to her place. I respect her enormously, and although we will doubtless disagree on aspects of policy, I have no doubt as to her motivations. Where we have common cause and we can agree—for example, on pension credit—she can be assured of SNP support. However, I am afraid that that is probably where the warm words and cross-party consensus will come to a halt for this evening, because the British Government have a serious job of work to do if they are to rebuild credibility among pensioners. Time and again, we have seen the Tory Government short-change pensioners, who are getting a raw deal from a pension system that they have paid into their entire lives.
Pensioners on low incomes are among those hardest hit by the cost of living crisis, and the British Government must do much more to ensure that they are properly supported, so let us start with the state pension. Westminster already provides a lower state pension relative to average earnings than most other advanced economies. Last year’s breaking of the triple lock will cost each pensioner £520 on average during the course of living crisis. The Government’s own Red Book shows that that will take £30 billion in total from pensioners by the 2026-27 financial year. Retaining the triple lock is the bare minimum I would expect, but I rather fear that that policy pledge will not survive the rigours of manifesto writing when it comes to both main parties in this House. However, I would like to be assured on that issue in the winding-up speeches.
A recent report from the Pensions and Lifetime Savings Association found that the annual income required to maintain a basic standard of living in retirement has massively outstripped the rise in the state pension. For a single person, the minimum income now sits at £12,800, while the state pension will rise to only £10,600 in April for those on the full flat rate. Indisputably, the state pension remains an important source of income for pensioners living in, or at risk of moving into, poverty because of the very low take-up of pension credit, which I accept is the Minister’s biggest priority and one I am certainly willing her on to succeed with. However, Independent Age highlights that 5% of pensioner couples and 19% of single pensioners have no source of income other than the state pension and benefits.
The Joseph Rowntree Foundation’s “UK Poverty 2023” report revealed that 1.7 million pensioners were living in poverty in the UK in 2020-21, the poverty rate for single pensioners is almost double that of couple pensioners, and almost one in seven pensioners overall are living in poverty—something I can see in its rawest form in communities such as Sandyhills, Carmyle and Baillieston in my constituency. We know that pension credit is a vital support for many older people, but only around seven in 10 of those who are entitled to it actually claim it, and up to £1.7 billion of available pension credit is, I am afraid, going unclaimed. In crude terms, that amounts to £1,900 a year for each family in the east end of Glasgow entitled to receive pension credit.
I am grateful to the hon. Gentleman for giving way. Is that not a point that all of us in this House can take away? Pension credit is going unclaimed and all 650 of us could go back to our constituents and encourage them to make sure they check the website and use the phone to get, potentially, that gateway option to £3,000.
Yes, I think we are going to have a political “Lady and the Tramp” moment where we actually agree on this. There will be spaghetti across the House. The hon. Gentleman is absolutely right. We need to be in a situation where we encourage all our constituents to take up pension credit. Having met the Minister fairly recently—
I thank the hon. Gentleman for giving way. In my constituency, my staff and I encourage all the pensioners we meet every week to look at pension credit. Some will qualify and some will not. Today, Citizens Advice came to me to say it is going to start a project in Newtownards in my constituency and I look forward to that unfolding. Does he feel that the Government should focus attention specifically on pension credit, because there are many people out there who would apply if they knew more about it?
I am grateful to the hon. Gentleman for his intervention. I think I am unique in that I am one of the few people who serve as a Member of this House who has been in his constituency office and spoken to his constituency staff—some of us go on holiday to places like Newtownards. He is absolutely right. I ask the Government to put just as much effort into advertising things like pension credit take-up as they do into propaganda-like billboards in our constituencies about levelling up. If that amount of resource were put into advertising pension credit, perhaps we would see it go further.
The British Government’s assault on pensioners does not just extend to the pitiful state pension. Let us not forget that the Tories also scrapped free TV licences for over-75s, including in Broadland. People who watch on and see the Westminster incompetence of this place will know that pensioners across these islands have already been short-changed by £6,500 on average due to state pension underpayments. Peter Schofield, the permanent secretary at the DWP, recently told our Select Committee that—
The hon. Gentleman mentions Broadland and says that pensioners are being short-changed by the Government. How can he reconcile that statement with the triple lock on pensions, which raises pensions year on year by 2.5%, the rate of inflation or average earnings—a ratchet effect increasing the value of pensions when compared with the economy at large?
The triple lock the hon. Gentleman refers to is the one that he and his party broke a manifesto commitment on recently, resulting in many pensioners being diddled.
I am interested in what the hon. Gentleman is saying about the huge problem of pensioner poverty, particularly for those who are unable, or do not understand how to access the minimum income guarantee. Does he accept there is also a huge problem for women of a certain age, the WASPI women, who are living in great poverty and great stress through no fault of their own, due to a change they were unaware of?
The right hon. Gentleman is spot on. Several of us are looking with great interest at the ombudsman process, which has just finished stage two and will now move to stage three. I hope that the Government will change their tune on their approach to the issue of 1950s born women, because thus far many of those women in my constituency and, I am sure, in Islington North would suggest that the Government are not doing enough on that issue. He is right to put that on the record.
Before the hon. Member for Broadland (Jerome Mayhew) intervened, I was making the point that the DWP has identified a further 100,000 potential underpayments during its ongoing correction exercise, which will now take an extra year to complete. I would argue that that demonstrates that the British Government are unable to effectively run a state pension system, and makes the case for pensions being administered in an independent Scotland, and not by Tory Ministers who are increasingly using pensioners to penny-pinch.
It would be remiss of me not to touch on retirement age, which has been the subject of huge media speculation recently. It appears to be the worst kept secret in Whitehall that Ministers are expected to announce that the retirement age will be increased to 68 at some point in the 2030s, not in 2046 as previously expected. To be crystal clear, my party opposes any further increase in the state pension retirement age. Indeed, the Scottish Government, when they responded to the British Government’s review of the state pension age restated their opposition to any changes to the current timelines for increasing the state pension age. This might seem like an abstract debate, but these things have real-life effects. Recent analysis by Age UK shows that 1.5 million pre-state pension age households have no savings at all. We must therefore avoid the situation faced by the WASPI women, mentioned by the right hon. Member for Islington North (Jeremy Corbyn), who faced having to work longer with little time to replan for retirement. On the subject of WASPI women, I again make clear my support for their cause.
It is incumbent on the British Government to look at other areas of pension injustice, such as frozen pensions for those living overseas, many of whom are veterans. It is my party’s belief that that is not a sustainable situation and, though complex, it cannot be allowed to just go unchecked while pensioners languish in poverty overseas. That is certainly a unique take for global Britain.
The British Government’s decision to decline a request from the Government of Canada for a reciprocal social security agreement was a peculiar one and I would appreciate the Minister saying more about that during his wind-up speech.
The reality is that tonight’s orders will pass without a vote but this annual debate shines a spotlight on the major holes in our social security system. The UK is blessed with the sixth largest economy in the world, yet —remarkably—soup kitchens up and down these islands will throw open their doors tonight, in record number, to feed people who cannot afford to get by on state support. That poses a much bigger question which this Government have thus far been unable to answer. It is a question which many people in Scotland are concluding can only be answered with independence, because Westminster is not working and Scotland can do better—so much better—than this crumbling Union.
Will the right hon. Gentleman go one step further and join those of us who want the benefit cap not merely raised, but scrapped in its entirety because it is having such a detrimental impact on families across these islands?
There is a strong case for that. At the time when the benefit cap was introduced, we were told that it was to prevent people from receiving more in benefits than they would if they were working, but any relationship with wage levels has long since disappeared.
In its briefing for this debate, the Child Poverty Action Group makes the point that the increase does not undo the damage of the cap having been frozen since 2016, but
“pushes families who would be in poverty anyway into even deeper poverty.”
It points out that 123,000 households are currently affected by the cap, including 107,000 households with children. That is one reason why, before the pandemic, when the data was most recently updated, 700,000 more children were in poverty than in 2010. The case for the cap needs to be reconsidered.
I want to pick up a point that my hon. Friend the Member for Westminster North (Ms Buck) made about the absence of an uprating to the local housing allowance, which is a very big problem. The LHA will be frozen for the coming year at the level at which it was set in 2020, even though rents are rising fast. When I raised the matter with the Prime Minister at the Liaison Committee in December, he replied that the uprating in 2020 represented
“a very significant cash uplift at the time, which it is appropriate to have maintained”,
echoing the wording of the ministerial statement from which my hon. Friend the Member for Westminster North quoted.
It is a pleasure to follow the hon. Member for North Swindon (Justin Tomlinson). Let me begin by saying that 1.7 million people in Scotland are turning down or turning off their heating as their bills rise. More than 70% of the poorest 20% of families are going without essentials, more than 300,000 Scots are cutting back on toiletries and sanitary products, and 42% of adults in Scotland are showering or bathing less. That is only a snapshot of a very bleak situation. Why is it happening? Because of 13 years of Tory rule. Tories are more interested in inciting a culture war than food on tables in Scotland. Scottish National party Members welcome an inflation-related increase in benefits, but why the delay? Why do our constituents need to wait until April? This should have happened immediately, because energy bills, food prices and mortgages have already risen.
Then there is the benefit cap, a grossly unkind policy that is illustrative of this Government—a Government who have removed the cap on bankers’ bonuses but will not scrap the cap on benefits, which has been frozen since 2016 and which dictates the amount of social security that our constituents can claim: meagre, tiny amounts in comparison with the billions that the Government are playing with. They continue to inflict even more hardship on the most vulnerable of families, 70% of whom are single-parent families. Even a glance at the welfare system over which this Government preside shows that people must bargain to access welfare, and they are bargaining with their dignity.
Let us contrast that with the social security system established by the Scottish Government. They introduced the Scottish child payment, which, despite being a brand-new benefit, has already been increased by 25%. That has brought the payments to £25 a week, a rise of 150% in less than eight months.
May I point out that the Scottish child payment is not dependent on a family’s having two children, but is per child? Unlike the UK Government and the People’s Republic of China, we care about all children, not just the first two.
It is a pleasure to follow the right hon. Member for Islington North (Jeremy Corbyn). He refused to give way to me during his speech when he made reference to France being a particularly good example of a country that had reacted well to energy inflation. He forgot to mention that 80% of all French energy is generated by nuclear power and is therefore not affected by the Russian invasion of Ukraine. I look forward to his support for the roll-out of nuclear power stations across the United Kingdom.
Turning to the main body of the debate, I welcome the Government’s draft benefits uprating order, but I stand here to represent an argument that I do not think has yet been made in this debate but that has been raised many times by my constituents and those of other Members, certainly on the Conservative side of the House: is it fair, during a period of full employment, that we should increase benefits at the rate of inflation when those in employment are seeing their wages rise by about half as much? This has been raised multiple times, and forcefully, by constituents of mine. They say that it is simply not fair that people who are just about managing, who are working to support their own families and who are paying tax but also being self-reliant, should have wage rises of about 5% when benefits are being raised by double that.
I will give way in a moment, because what I am about to say might answer the hon. Gentleman’s question.
I think the answer is: yes, it is fair. That is because it is morally right to protect the purchasing power of those very poorest families at an absolute level, even when other people in employment are suffering as well. I think it is right, because personal inflation is at its highest in the poorest families and food inflation is responsible for a higher percentage of their spending. It was mentioned earlier that food inflation might be running at about 19%, but I think it is about 17.1%. It is morally right for the Government to represent and look after the very poorest in society while at the same time, crucially, always making sure that work pays.
In my constituency we have 2% unemployment. We have a huge demand for staff. I have a very odd situation in a town that I represent called Fakenham. I visited a food bank there that is run by the Samaritans, and it is only a few yards away from a jobcentre where they told me that anyone who had two arms and two legs could get a job. There are lots of jobs available, and I have had meetings with frustrated employers in Fakenham who cannot get enough staff, at every level of the employment sector, including those with no specialist skills other than their natural talent. That jobcentre is 200 yards away from a food bank.
The hon. Gentleman and I could probably have a long drawn-out debate about why there are so many vacancies in the jobs market and how the UK Government’s immigration policy impacts on that. I would ask him to reflect on the misconception that food banks are used solely by people who are out of work. We are increasingly seeing people who are in work and suffering from in-work poverty using them. Has his local food bank told him how many of the people using it are experiencing in-work poverty?
That is an interesting question, and I have asked exactly the same of our food bank. I have asked it to give me the data on how many of the people are on benefits and whether they are in work or unemployed, because it is a mystery to me. It refused to give me that data, which I think is really surprising, because that is important to us as policymakers. We need to know whether people need to use food banks because benefits on their own are the cause or whether it is about in-work benefits and the low level of pay.
I am certainly very much in favour of people in Scotland having control of their own immigration system, because our problem has never been immigration; frankly, our problem has been emigration. The hon. Member talks about how successful the UK Government’s immigration policy has been. Can he explain why there are fields all across these islands where fruit is rotting because we do not have workers coming here to pick it?
The hon. Member should know that the seasonal agricultural workers scheme allowed, from memory, 40,000 seasonal workers to enter the country last year, and that its application was not fully taken up by the agricultural sector, so that is not the reason why fruit was left rotting in the fields.
Returning to my main point, the Government are right to protect the buying power of the poorest. At the same time, they are also right to ensure that work always pays. The reduction in the taper rate from 63% to 55% is crucial in raising the income of those in work so that they do not need to rely on food banks, as is increasing the work allowance by £500. Perhaps the difference between Government and Opposition Members on this is that we on the Government Benches think that the best solution to poverty is always work—allowing people to get back into work; encouraging them to grow their skills and employability, and the value of their employability, as they progress through their career. I think the Government have got the balance right, supporting the poorest families while ensuring that work continues to pay.
Notwithstanding Putin’s invasion and the war in Ukraine, the impact of the covid pandemic and the great efforts made by the Government to support this country through it, and any fiscal difficulties caused by those efforts, this Government are supporting the most vulnerable and uprating benefits by in excess of 10%. That is on top of the cost of living support to the tune of £37 billion provided last May, and what will be provided in this coming year. I am proud to make the case for universal credit, unlike the Labour party. We support people who are out of work, and as they progress in work, through reforms brought forward by my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith), which I believe were the right way forward.
On pensioners, it is rich of the Labour party to criticise. I continue to defend Labour’s actions during its 13 years in government in respect of the women’s state pension, but I was reminded of the 75p increase, which my hon. Friend the Member for North Swindon (Justin Tomlinson) highlighted in his outstanding speech. Bear in mind that in 2009-10, the state pension was worth less than £100, and that as of April this year, it will be worth in excess of £200. That is a massive increase under the coalition and Conservative Governments.
On pension credit, I put on record my thanks for the work of my the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Sevenoaks (Laura Trott), and my thanks to Mr Len Goodman, who is not often cited in this House as a supporter of all matters to do with this Government, for his outstanding work in making the case for pension credit, which has, of course, seen a 177% increase in take-up—that is a fantastic success—[Interruption.] There are several sevens in there, as I am being reminded from behind.
My hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard) made an outstanding speech—it was a pleasure to listen to. I will write to him on a couple of issues. He is right to continue making the case for pension credit. The message is of course, “Don’t be shy: please apply”, and the freephone number is 0800 99 1234. We want people to continue applying.
It is right to make the case for the cost of living support—there is £37 billion of support in this financial year—including support for energy bills for all households and cost of living payments. We are now seeking to ensure support going forward. That will include up to £900 in cost of living payments, £300 in cost of living payments for pensioner households, an extra winter fuel payment on around 25 November of this year, and the £150 disability cost of living payment. We can also take funding and support from the household support fund, and there is also the flexible support fund and many other additional ways in which support can be provided.
We continue to provide support to all households with a domestic electricity connection through the energy price guarantee, which caps the price paid for each unit of energy. From April, the typical household will pay on average £3,000 a year, saving the average UK household £500 in 2023-24. From April 2023, the national living wage will increase by 9.7% to £10.42 an hour for workers aged 23 and over. Again, that is the largest ever cash increase for the living wage.
The Government believe that the best route out of poverty is through work. We are committed to a sustainable long-term approach to tackling child poverty and supporting people on lower incomes to progress in work. My hon. Friend the Member for North Swindon rightly made the case for the disability confident campaign, which has resulted in more than 1 million more people being in work in this country over the last few years, and he rightly made the case for additional medical and other support by private sector organisations for their staff.
I will briefly touch on the contributions from the Opposition parties. The Labour party had no answer for my hon. Friend the Member for Gloucester (Richard Graham) on whether it still supports universal credit. It is quite clear, as my hon. Friend the Member for Blackpool North and Cleveleys highlighted, that Labour now opposes any conditionality whatsoever in benefits. That is a startling admission. I believe that Labour Members will live to strongly regret that.
My hon. Friend the Member for Amber Valley (Nigel Mills) made a number of points. I would merely say that all fiscal decisions are made by the Chancellor—to whom I obviously bow on all matters—and I cannot change his policies in any way at the Dispatch Box. If my hon. Friend can wait, he will know more on 15 March.
The hon. Member for Glasgow East (David Linden) accused this Government of policy failures. Given the failings of the Scottish First Minister, and her recent about-turns, I do not think that the hon. Gentleman is any position to lecture us on any policy failings.
No. We listened with great humility to the hon. Gentleman’s 24-minute diatribe about this country. He had no answer to the argument from my hon. Friend the Member for Bosworth (Dr Evans) about funding; his inability to make any case or policy on pensions is well known; and his inability to answer any of the points made by my hon. Friend the Member for North Swindon also spoke volumes.
The reality of the situation is that the Government are doing a huge amount for the vulnerable, and are increasing support through the draft Guaranteed Minimum Pensions Increase Order 2023, the draft Social Security Benefits Up-rating Order 2023, the energy price guarantee and the draft Benefit Cap (Annual Limit) (Amendment) Regulations 2023. I commend the instruments to the House.
Question put and agreed to.
Resolved,
That the draft Social Security Benefits Up-rating Order 2023, which was laid before this House on 16 January, be approved.
Draft Benefit Cap (Annual Limit) (Amendment) Regulations 2023
Resolved,
That the draft Benefit Cap (Annual Limit) (Amendment) Regulations 2023, which were laid before this House on 16 January, be approved.—(Guy Opperman.)
draft Guaranteed Minimum Pensions Increase Order 2023
Resolved,
That the draft Guaranteed Minimum Pensions Increase Order 2023, which was laid before this House on 16 January, be approved.—(Guy Opperman.)