Oral Answers to Questions

David Nuttall Excerpts

Monday 1st February 2016 Commons Chamber

[Justin Tomlinson]

We are very proud of our record and refute the allegations of that investigation. I absolutely will not abandon the 241,000 families in overcrowded accommodation and the 1.7 million on the housing waiting list. They want us to do this and we will carry on doing it.

[Mr David Nuttall (Bury North) (Con)]

Does my hon. Friend agree that one effect of this policy is that it saves taxpayers about £500 million a year, and that it is incumbent on those who suggest reversing the policy to explain where they would find that money?

[Justin Tomlinson]

Over the course of this Parliament, it will deliver a saving of £2.5 billion. I suspect that we will be waiting a very long time to get an alternative from those on the Opposition Benches.

Under-occupancy Penalty

David Nuttall Excerpts

Thursday 28th January 2016 Commons Chamber

[Justin Tomlinson]

I meet residents all the time because as well as being a Minister I am, like the hon. Gentleman, a constituency MP. We have trebled our funding to support victims of domestic abuse to £40 million a year, and arrears in housing have actually fallen for the past four years.

[Mr David Nuttall (Bury North) (Con)]

Given the earlier and contradictory ruling in the case of MA and others v. The Secretary of State for Work and Pensions, does my hon. Friend agree that no change should be considered until the Supreme Court has made a final ruling on this matter?

[Justin Tomlinson]

That is absolutely the case.

Universal Credit: North-West

David Nuttall Excerpts

Wednesday 13th January 2016 Westminster Hall

[Graham Evans]

I am most grateful to the hon. Gentleman. There is a lot of evidence that delays are there, and those delays are unacceptable for the individuals concerned. I will not attempt to defend that. The system is not perfect, but any individual cases should be brought perhaps to the attention of the Member of Parliament, but certainly to the attention of Jobcentre Plus and the benefits agency. Those cases should be looked into and investigated.

People claiming universal credit are 13% more likely to be in work than people claiming jobseeker’s allowance. They are earning more money and are more willing to take a job. One constituent of mine, a hairdresser, was complaining. She said, “At this time of year, I usually get a rebate on income tax, but because I now have a far better personal allowance, I do not have that problem.” She is keeping more of her hard-earned money. That is what the Government are helping the lowest-paid to do.

Employment has been the Government’s real success. A thousand jobs were created each and every day during the last Parliament. That represents 2 million jobs over that period. The Office for Budget Responsibility predicts that a further million jobs will be created over the next five years. This country is the economic powerhouse of Europe. Yorkshire is creating more jobs than France, and that is why so many people want to come here. We have good quality, well-paid jobs, and the living wage is being introduced. We have a far better working environment than many other countries in the European Union. That all indicates just how successful the Government have been at getting people off benefits and back into work. There are so many opportunities in all our communities, and it is important that we expose those opportunities to those looking for work.

Crucial to the Government’s success has been the support towards childcare costs for parents, as my hon. Friend the Member for Congleton (Fiona Bruce) pointed out. Under universal credit, there is additional cover for childcare costs for parents, with up to 70% of childcare costs covered regardless of hours worked. That will be increased to 85% this year, with a monthly limit of £646 for one child and more than £1,000 for two or more children, helping more parents into work. When my children were younger, I remember Mrs Evans saying, “It is pointless me going back to work because of the childcare costs.” I know that the cover for childcare costs is an important step forward in helping working mums to work longer and keep more of their money.

The ethos of “It pays to work” is built into the DNA of the Government’s reforms, particularly universal credit. I have no doubt that as universal credit is rolled out further, we will continue to see more and more people getting back into work. The hon. Member for St Helens South and Whiston referred to the region as a guinea pig, but I am comfortable and proud that the north-west has led the way. I was particularly pleased when universal credit started in my jobcentres in Weaver Vale, because it made a massive difference. I pay tribute to the hard-working staff at Runcorn and Northwich jobcentres for the fantastic work they do helping people back into employment. They are a great example of best practice, and their hard work was recognised by the Secretary of State for Work and Pensions when he visited the jobcentre in Northwich at the end of last year. He gave the staff an award for the number of people they had helped back into work. The staff at Northwich jobcentre have told me that the introduction of universal credit has made their job easier.

A lot of people come into Weaver Vale to work. As the MP, I am puzzled why people travel great distances to work in my constituency yet I still have unemployed people. One of my challenges is to get my constituents to take the jobs that are virtually on their doorstep. That is why, when I became the MP, I started my jobs and apprenticeship fairs. The fifth will take place next month. The first time I did it, there were a lot of unemployed people, but that number has halved over the past four or five years. It is the harder-to-reach people who are left. The companies that come to my jobs fairs are fine-tuning their job offers for people who perhaps have not been in work for a long, long time.

I was most privileged to have the John Lewis Partnership come into Northwich. I am sure Members will agree that Waitrose is a fantastic organisation. When it came, it said, “We will guarantee that 30% of interviews will be for local people.” That was only an interview, not a job, but it was so impressed with the calibre and the quality of the interviewees that it ended up with more than 50% of its employees being local people. Some of those people had been long-term employed, but Jobcentre Plus had worked with the local authority and Mid Cheshire College, training the people for job interviews, CV filling out and what retail employers are looking for. That was a great example of organisations working together to get the long-term unemployed working for the great company that is the John Lewis Partnership. That 50% figure is an achievement of which we can be proud. The reforms are transforming the lives of some of the poorest families in our communities and giving people the skills and the opportunity to get on in life and stand on their own two feet.

I am keen to move Weaver Vale—indeed, Great Britain —from a low-wage, high-tax, high-welfare economy to a higher-wage, lower-tax, lower-welfare country. I support the Government’s reforms in welfare and universal credit. The system is not perfect, but it is far better than that attempted by the previous Government. I believe it is working, as proved by the reduction in unemployment, the growth in wages and the quality of the jobs now available in this country.

[Mr David Nuttall (in the Chair)]

Will people who wish to catch my eye please stand?

--- Later in debate ---

[Jonathan Reynolds]

I do not doubt the hon. Gentleman’s motivation. Before the debate we exchanged some comments about that sense of there being a group of taxpayers paying for the welfare system and a group of people in receipt of welfare benefits. That is not the way to design a welfare system. We cannot do it in a way that divides the country so simply into those arbitrary classifications. Indeed, if we do that, it is impossible to design an effective system.

I mentioned the issues relating to the first universal credit payment. People have to wait a long time, because it is designed to be paid five to six weeks in arrears. As the hon. Member for Weaver Vale (Graham Evans) said in an intervention, the assumption is that they are in the workplace and receiving a monthly salary in arrears, so they will have that support before receiving universal credit. I say this completely genuinely: that is not how the economy of my constituency works. A great many people are still paid weekly or fortnightly. A lot of people have different levels of income week by week because of zero-hours contracts. That does not seem to have been considered in the level of detail required to design how and when people will receive the support that they need.

Delays occur in any bureaucratic system, but there is an even bigger structural flaw in universal credit that I have heard about several times in my constituency surgeries. If someone applies for universal credit on the wrong day—perhaps one or two days before they really “should” apply; in other words, when they have lost their job but before they have received their final pay cheque from their former employer—the system becomes disastrous for them. We must bear in mind that a lot of people, on finding out that they are going to be made redundant, would go to the jobcentre to look at the available support. If they apply for universal credit but receive a further pay cheque from their employer, they will wait not five to six weeks but 10 to 11. That is an enormous problem that must be looked at. If that happens—if someone has to know exactly when to apply for the support to which they are entitled—it will go far beyond the current level of complexity. That would have to be sorted out before any national roll-out.

I have raised those points because we have to find a way to get a supportive system that copes with people going into and out of the workplace—regular or temporary work—in a way that does not completely reset the system and cause all kinds of problems if they then go back into work. That is what I mean when I say that we should not split the country with an arbitrary classification of those in work and those out of work and receiving welfare benefits.

Whenever problems with universal credit are raised, the Government say that advance payments can sort out all the problems, whether with housing arrears, heating or food. That is the first question I ask people who come to see me with problems with universal credit, and a lot of them tell me that they have not been told about the advance payments system. I do not know what the experience of other hon. Members is, but advance payments do not seem to be programmed into the initial assessment. If a person does not know about the advance payment system, they have an even bigger problem, because they cannot claim an advance payment if they are a number of days past their initial assessment. If people accessing unemployment benefits for the first time face a confusing system that does not give them the funding they are entitled to, given that they have paid into the system, and that prevents them from getting back into the workplace, that is not an improvement on the current system. There has been a lot of party political advertising of the employment rate, the Government’s successes, childcare and all that, but we need to look at these genuine, serious problems.

Despite the objective of simplifying the system, the roll-out would have been disastrous in my area if it were not for our welfare rights advisers. To my mind, the staff of Tameside citizens advice bureau are absolute heroes. The reality is that that kind of support is being stripped from all communities. Law centres and citizens advice bureaux are closing. If the system is to work, we have got to give people impartial, fair advice. The hon. Member for Ribble Valley (Mr Evans) made a fair comment about how people can get in touch with welfare advisers. That is important, and it is sad to see welfare advisers going at a time when people need them.

Universal credit is a big change, and if people do not have support to access it properly, their perception of it will be negative. We have to ensure that that is not the case. From my casework and experience, from what is happening in other parts of the country and from people’s testimonies, my overwhelming impression is that, despite the scale of the bureaucratic challenge of moving to universal credit, we are not tackling the big problems of our social security system. We are not providing sufficient support for people who have lost their job for the very first time—particularly during the global finance crisis—and who never thought they would be unemployed. When they find out what their national insurance contributions will buy, they are often frankly disgusted at the level of support available to them.

We are not tackling the sanctions, the conditionality and the job search criteria. Frankly, I think we are treating a lot of people like children and robbing them of their dignity. We are not giving them what they should reasonably expect when they access the welfare system. Most of all, the system is unable to cope with the flexible working patterns that are so common in our economy. Many people do not have jobs for life; often, they do not even have jobs that last for years. The system has to reflect that, but I do not think those things have been priced in. Despite the bureaucracy and our overall level of spending on the social security system, people in my constituency have been left genuinely destitute and reliant on charity and food banks to survive. That cannot be right. Given the resources we put into the system, there has to be a better way to do it.

I think we need an even more radical approach. We should look to other countries for best practice. Concepts such as basic income do not lead to a taper problem and do not disincentivise people from going back into the workplace; rather, people are supported in different stages of their lives and everybody gets something out of the system for what they pay into it. That is the direction in which we have got to be looking. We need something more radical than universal credit. Universal credit, if it worked properly, would be welcome, but at the moment there are huge teething and design problems. Even once those problems are sorted, it will not tackle the big problems of the welfare system. Let us sort those problems out, but let us not end the conversation about welfare reform here. Let us address the challenges and create a system that truly works for everybody.

[Mr David Nuttall (in the Chair)]

We now move to the winding-up speeches. I gently remind the shadow Minister, the Minister and the Scottish National party spokesman to leave a couple of minutes at the end of the debate before 11 o’clock for the hon. Member for St Helens South and Whiston (Marie Rimmer) to wind up.

--- Later in debate ---

[Alec Shelbrooke]

If I was allowed to, I would.

[Mr David Nuttall (in the Chair)]

Order.

[Nick Thomas-Symonds]

Perhaps the hon. Gentleman has special permission—I will take it up with him another time.

Another unfortunate pattern is the Conservative party putting forward various mitigations for its Government’s cuts. The latest one was on 6 January, when the Under-Secretary of State for Justice, the hon. Member for North West Cambridgeshire (Mr Vara), tried to defend the cuts to the work element of the universal credit, saying,

“let us not forget, the fact that every time we fill up our tank with petrol there is a saving of £10 because of the freezing of the fuel duty.—[Official Report, 6 January 2016; Vol. 604, c. 342.]

Back in the 1980s the Conservatives’ answer to the unemployed was, “Get on your bike,” but in 2016 it seems to be, “Fill your car.” That is the level of debate we have reached.

Confidence in the roll-out is another enormous issue, as my hon. Friend the Member for St Helens South and Whiston indicated. Let us not forget what the Secretary of State for Work and Pensions said in a press release on 1 November 2011:

“Over one million people will be claiming Universal Credit by April 2014.”

The actual number reached by November 2015 was 155,568. The hon. Member for Weaver Vale said with delicious understatement that that was not perfect. I have to agree—less than one fifth of the target had been reached. According to the independent Office for Budget Responsibility, the number will not exceed 1 million until April 2018, four years late. Does that not show the situation that we are in today? Given the cuts to the work element of universal credit and the sheer scale of incompetence with the roll-out, are we not in the worst of all worlds, where the Government lack both compassion and competence?

European Union (Approvals) Bill [Lords]

David Nuttall Excerpts

Monday 14th December 2015 Commons Chamber

[Priti Patel]

I beg to move, That the Bill be now read the Third time.

The brief explanation that accompanied the clause stand parts in the Committee stage covered all the points that need to be made about the content of this very short Bill and the reason it is required. Obviously, we covered some of the points on Second Reading. It is fair to say that our debates on this Bill have covered the two clauses sufficiently. Perhaps it is worth reflecting on the fact that the Bill before us forms part of the ability of Parliament to examine and give clearance through the much broader protection and oversight that the European Union Act 2011 affords us. Bills such as this give another layer of protection in dealing with European Union legislation.

[Mr David Nuttall (Bury North) (Con)]

As my right hon. Friend rightly says, the only concern is why such trivial matters are being dealt with by way of an Act of Parliament. Does she agree that, while these might be trivial matters and while the public might be concerned that they are being dealt with by way of an Act of Parliament, the public will be equally concerned that major matters such as perhaps the accession of Turkey to the European Union will go through exactly the same procedure?

[Priti Patel]

I thank my hon. Friend for his remarks. It is fair to say that, when it comes to debating such matters, I would not use the term “trivial”. The European Union covers not just that particular area, but other aspects, such as the accession of Turkey to the European Union. There will be debates on that matter and engagement with the European Scrutiny Committee. I am delighted to see the Chair of the European Scrutiny Committee in his place this afternoon.

I was very clear on Second Reading that there were concerns over what this legislation meant—whether it was burdensome and whether there were costs to the taxpayer. I use Third Reading to emphasise again that there are no burdens of administration or extra costs to the taxpayer. The Bill covers two clauses, one of which relates to the tripartite social summit, the other to the participation as an observer of the former Yugoslav Republic of Macedonia in the work of the European Union Agency for Fundamental Rights. They are two very straightforward clauses in a very straightforward Bill. On that basis, I commend the Bill to the House.

Oral Answers to Questions

David Nuttall Excerpts

Monday 7th December 2015 Commons Chamber

[Mr David Nuttall (Bury North) (Con)]

Does my right hon. Friend agree that it is incumbent on anyone who suggests scrapping the existing sanctions scheme to propose an effective alternative, because there has to be some means of ensuring compliance with the rules?

[Priti Patel]

Of course, my hon. Friend raises a valid point about what the Labour party is now clearly saying, despite the fact that sanctions have been in place for a considerable time, including under previous Labour Governments. The purpose of sanctions is to support claimants and to encourage them back to work. Let us also remember that the sanctions are there for claimants to comply with reasonable requirements, which are developed with the claimant as well as the work coach.

Oral Answers to Questions

David Nuttall Excerpts

Monday 7th September 2015 Commons Chamber

[Mr Duncan Smith]

We are focused constantly on trying to get incomes up, and we are looking to do that through the raising of the national living wage announced by my right hon. Friend the Chancellor. For this Government, the No. 1 thing we need to do to make sure that people get out of poverty is to get them back to work. There are some of the best employment figures in Scotland thanks to this Government.

[Mr David Nuttall (Bury North) (Con)]

T5. Given that the Chancellor has said that the welfare costs of new Syrian refugees will be paid for out of the international aid budget, does the Secretary of State agree that there is a good case to be made for that budget also to be used to pay for the costs of existing asylum seekers already in the United Kingdom?

[Mr Duncan Smith]

I thank my hon. Friend for that really helpful question. My right hon. Friend the Chancellor has made it clear that in this particular circumstance, the needs of these particular migrants, in many cases in desperate trouble, will be met by the money in the aid budget. We have no plans to change that. My hon. Friend cannot tempt me to say more, but following is a statement in which he might like to catch the Speaker’s eye.

Child Poverty

David Nuttall Excerpts

Wednesday 1st July 2015 Commons Chamber

[Mr Duncan Smith]

The hon. Lady should recognise that wages are rising faster and more strongly than at any time since 2007, so we have started that process. We have also raised the minimum wage—it is due to go up to £6.70—but if the hon. Lady wants to press me, I absolutely agree with her. I want businesses—and I have said this before—to recognise that they need to pay the people who work for them a decent wage and not rely on the Government to subsidise that wage so that they can have bigger profits. I am going to campaign for that and I hope we will drive it.

[Mr David Nuttall (Bury North) (Con)]

Unemployment in my constituency of Bury North has fallen by about half since 2010. Does the Secretary of State agree that the best way to alleviate child poverty is to have a growing economy, giving more parents the opportunity to work and enabling higher wages for those already in work?

[Mr Duncan Smith]

I agree with my hon. Friend. The Opposition are concerned and angry that the measure is being changed, but it is worth relating the interesting fact that, even with all the money under the measure, the number of working-age people in in-work poverty rose by 20% between 1998-99 and 2010. It beggars belief that some want a policy that is clearly not working to continue simply because it has become totemic to them. They are not looking at its actual effect.

Oral Answers to Questions

David Nuttall Excerpts

Monday 22nd June 2015 Commons Chamber

[Mr David Nuttall (Bury North) (Con)]

Does the Minister agree that those who pay for these benefits through their taxes expect an effective mechanism to be in place, such as sanctions, to ensure that the rules are complied with?

[Priti Patel]

My hon. Friend is right, because at the end of the day we are speaking about hard-working taxpayers who support and contribute to the welfare system. Of course, we have a duty to support those who are seeking work and who are in receipt of benefits, but at the same time, hard-working taxpayers want to ensure that their taxes are spent fairly.

Oral Answers to Questions

David Nuttall Excerpts

Monday 26th January 2015 Commons Chamber

[Esther McVey]

Indeed. I congratulate my hon. Friend’s local jobcentre and him on all the work he does. Those were over 4,000 apprenticeships in his constituency, but at the end of last year there were 2 million new apprenticeships for young people right across the country. That is why we have seen the biggest fall in youth unemployment since records began.

[Mr David Nuttall (Bury North) (Con)]

Does my right hon. Friend agree that the best way to improve job opportunities for people in the north of England is for Government to reduce tax and red tape on businesses to give them the opportunity to create new businesses, and to ensure that the Government always make it pay to be in work, not on benefits?

[Esther McVey]

Once again, my hon. Friend speaks sound sense. That is exactly what this Government have been trying to do. We have been working with businesses, finding out what they need to expand and grow and to take on young people. As we have seen, growth is increasing. We are now growing faster than any other country in the G7. We know that not only are wages going up by 2%, but they are destined to go up by 3.4%, and inflation has fallen by 0.5%. If anybody had a long-term economic plan, it is this Government.

Post Office Card Account

David Nuttall Excerpts

Tuesday 16th December 2014 Commons Chamber

[Steve Webb]

We are trying to ensure that a range of Government services, not just financial ones, can be accessed at post offices. I recently renewed my family’s passports. The Post Office Check and Send service before the passports went off provided peace of mind and meant that they came back quickly. The Post Office is very good at providing that very valuable service. Identity verification will become increasingly significant: as Government services move online, the way in which someone proves their identity online will become important. As a trusted brand, the Post Office could play an important role as one of the potential providers of those services. Not only will services that Post Office Ltd is willing to offer on a commercial basis be available at post offices, but so will a range of Government services.

[Mr David Nuttall (Bury North) (Con)]

The Minister referred to the fact that the Post Office card account includes the facility to enable someone to allow another person to collect their money for them, which is particularly useful for the disabled. Under the new contract, will the account still provide for the issue of a second card for someone who wants one?

[Steve Webb]

Yes, I can confirm that. There is a system called simple payment for some of the most vulnerable people, who used to have giros, but for those with Post Office card accounts we will continue the facility of a second card for a family member or a carer.