Oral Answers to Questions

David Rutley Excerpts

Monday 8th November 2021 Commons Chamber

[Sarah Olney (Richmond Park) (LD)]

3. What steps she is taking to support families affected by the end of the uplift to the standard allowance of universal credit.

[The Parliamentary Under-Secretary of State for Work and Pensions (David Rutley)]

The Government have always been clear that the £20 uplift was a temporary measure. Universal credit recipients in work will soon benefit from the reduction in the taper rate from 63% to 55%, with work allowances increasing by £500 a year, meaning that nearly 2 million working households will keep about an extra £1,000 a year on average.

[Sarah Olney]

My constituent Simon Holroyd lost his mother to covid and is a single father to 10-year-old twins. He worked in the hospitality industry all his life to a senior level, but since the pandemic he has struggled to find work and is reliant on universal credit. His life before the uplift was removed was, in his words,

“a revolving mess of balancing debts”.

Now his situation is desperate. The Minister and the Secretary of State have both referred to the uplift as temporary, but for claimants such as my constituent who were not claiming universal credit before the uplift, the removal of the £20 is experienced only as a loss. Will the Minister commit to reintroducing the uplift?

[David Rutley]

With 1 million vacancies and above in the UK and with a comprehensive plan for jobs, our focus absolutely has to be on helping people into work, particularly in the hospitality sector, where there are vacancies. I hope that there might be a vacancy for the hon. Member’s constituent.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

May I thank the Minister and especially the Secretary of State for really pushing for the cut to the universal credit taper rate that we saw in the Budget? It will make a real difference to families on low incomes. There are more than 1 million job vacancies right now, plus the Budget measures to strengthen work incentives—cutting the withdrawal rate, boosting the work allowance and increasing the national minimum wage. Does that not all add up to the best opportunity in more than a generation to bear down on long-term unemployment in this country?

[David Rutley]

Absolutely. I credit my right hon. Friend: I know that he has been a champion of improving the taper rate over many years, and it was a pleasure to work with him as a Parliamentary Private Secretary when he was Secretary of State for Work and Pensions. Now is the time for us to take forward opportunities for people, given the Budget measures that have been put in place, and help long-term unemployed people into work through the sector-based work academy programme and the restart programme, which the employment Minister—the Under-Secretary of State, my hon. Friend the Member for Mid Sussex (Mims Davies)—is taking forward with her characteristic verve and enthusiasm.

[Mr Speaker]

I call the Chair of the Select Committee on Work and Pensions.

[Stephen Timms (East Ham) (Lab)]

Unemployment support is now at the lowest level in real terms for more than 30 years, even though the economy has grown by more than 50% in real terms over that period. As a proportion of average earnings, it is the lowest ever—lower than when Lloyd George introduced unemployment benefit 110 years ago. Why has unemployment support been set at this historically extremely low level?

[David Rutley]

It is always important to have a safety net, but it is also very important to make sure that we get people into the world of work, and that is what our focus is, as I have said repeatedly in my answers today. With 1.1 million vacancies and with a plan for jobs, that has to be our focus.

[Dr Ben Spencer (Runnymede and Weybridge) (Con)]

Does my hon. Friend agree that we must look at both money in and money out, and that the cost of living is causing pressures for worse-off families? Will he update the House on the work that the Department is doing in looking at the cost of living, particularly childcare and housing costs?

[David Rutley]

We have already provided a range of measures. Eighty-five per cent. of childcare costs are covered by universal credit, and extra support has been provided through the increase in the local housing allowance. So steps are being taken, but I understand my hon. Friend’s point about childcare. Clearly, we need to focus on it further, and we will.

[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

4. What support her Department is providing to universal credit claimants who are unable to secure employment.

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[Paul Blomfield (Sheffield Central) (Lab)]

8. What assessment she has made of the potential effect of ending the universal credit uplift on household budgets.

[The Parliamentary Under-Secretary of State for Work and Pensions (David Rutley)]

The Government have always been clear that the £20 uplift was a temporary measure to support households affected by the economic shock of covid-19. Now that the economy has reopened, the Government are giving nearly 2 million working households an increase, on average, of £1,000 per year, thanks to the reduction in the universal credit taper rate from 63% to 55% and a £500 increase in the work allowance.

[Paul Blomfield]

More than 9,000 Sheffield households, including 4,500 children, have together lost around £10 million as a result of the Government’s decision, and the taper adjustment compensates for just a third of that lost income. There are also deep problems caused by a backlog of work capability assessments. For some claimants, the new-style employment and support allowance is expiring as it has taken more than a year to secure an assessment. Others on universal credit face long delays in getting their correct entitlement. What is being done to clear the backlog and ensure that people with disabilities get the benefits they deserve?

[David Rutley]

I assure the hon. Gentleman that we are working flat out to ensure that people get their entitlement as speedily as possible, which is certainly the case for the vast majority of people. We saw during the pandemic that universal credit was particularly agile in responding to a huge number of people—hundreds of thousands—who needed support.

[Mr Richard Holden (North West Durham) (Con)]

We have a record 1.1 million vacancies, and we are cutting the taper rate and raising the income threshold; how many families in North West Durham and throughout the country will benefit?

[David Rutley]

We are going to see many people—

[The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)]

Hundreds.

[David Rutley]

More than hundreds—millions of people are going to benefit, because not only will they see the financial benefit but, as they start to get involved with their work coaches and understand what is available to them through the plan for jobs and in-work progression, they will see massive improvements in their financial situation and gain confidence in the workplace.

[Stephen Morgan (Portsmouth South) (Lab)]

9. What assessment she has made of the potential effect of ending the universal credit uplift on the risk of poverty among benefit claimants.

[The Parliamentary Under-Secretary of State for Work and Pensions (David Rutley)]

The Government have always been clear that the £20 uplift was a temporary measure to support households affected by the economic shock of covid-19. We believe that work is the best route out of poverty, which is why our comprehensive plan for jobs is supporting people to prepare for, get into and progress in work.

[Stephen Morgan]

The Joseph Rowntree Foundation finds that the Government’s universal credit cut will affect 21% of working-age families in my constituency and nearly half of those with children. To make matters worse, the Bank of England says that, after tax, which the Tories continue to raise, and inflation, salaries are now forecast to fall by 1.25% this year. What plans does the Minister have to support my constituents immediately, as they will be feeling that the pound in their pocket is worth less this winter?

[David Rutley]

The hon. Gentleman’s constituents will have the opportunity to fill the vacancies that are no doubt in his patch as well as across the country. I can also assure him that we do understand that there will be vulnerable families who need extra support this winter, which is why £1.8 million has been allocated to families in Portsmouth through the local authorities there.

[Mr Philip Hollobone (Kettering) (Con)]

10. How many people (a) receive the state pension and (b) claim pension credit in Kettering constituency.

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[Sir Edward Leigh (Gainsborough) (Con)]

11. What assessment she has made of the (a) utility and (b) value of universal credit compared to predecessor schemes.

[The Parliamentary Under-Secretary of State for Work and Pensions (David Rutley)]

Universal credit is a modern, tailored, resilient benefit responding effectively to economic conditions. It replaces six outdated and complex benefits with one, helping to simplify the benefits system and providing a safety net in times of need and, of course, making work pay.

[Sir Edward Leigh]

When the Centre for Social Justice originally designed the universal credit system, it was with a 55p taper, so this reform is long overdue and very welcome. The fact remains, though, that there are still record numbers of people on universal credit, 60% of whom are not working at all, yet we have record job vacancies and a labour shortage. Will the Minister tell me what more can we do? How can we get more people back into work?

[David Rutley]

The thing that has impressed me the most since taking on this ministerial responsibility is the sheer enthusiasm of our work coaches. I definitely recommend that my right hon. Friend’s constituents speak to the work coaches to find out what opportunities are available to them, particularly through skills and through restart, to get involved in new sectors through the sector-based work academy programme. Huge opportunities are available for people, and they need to be explored.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

13. What steps her Department is taking to tackle levels of poverty among pensioners.

--- Later in debate ---

[Jeff Smith (Manchester, Withington) (Lab)]

14. What steps her Department is taking to help support benefit claimants with increased costs of living.

[The Parliamentary Under-Secretary of State for Work and Pensions (David Rutley)]

From next April, the national living wage will rise by 6.6% to £9.50 an hour. This real-terms pay increase will leave more money in the pockets of hard-working people. The Government are taking action to make work pay for low-income households on universal credit by reducing the universal credit taper rate and increasing the work allowance.

[Jeff Smith]

On Friday, I visited the Fallowfield and Withington food bank. It is as busy as ever and expecting a surge in demand as a result of the recent changes to benefits. If Government support for people on benefits is adequate, why does the Minister think that so many of my constituents are having to rely on food banks?

[David Rutley]

We recognise that there are people who will require support over the winter period, which is why we have introduced the £421 million household support fund in England. I am sure that the hon. Member will welcome the £6.4 million that has been allocated to Manchester.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

T1. If she will make a statement on her departmental responsibilities.

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[Yvonne Fovargue (Makerfield) (Lab)]

T8. The new Help to Claim contract tender only specifies digital and telephone channels, yet a large number of claimants who need this service find those channels impossible to use and need face-to-face advice. Can the Minister confirm that there will be no removal of funds from face-to-face services and that potential claimants will still be able to access help via face-to-face advice?

[The Parliamentary Under-Secretary of State for Work and Pensions (David Rutley)]

We are committed to making sure that the best advice is available to people. We have clearly moved on from the depth of the pandemic, and we are looking at how best we respond. I will come back to the hon. Lady with more detail on how we propose to move things forward.

[Christian Wakeford (Bury South) (Con)]

T9. Since leaving the EU, it is right that all those in the UK who are entitled to benefits receive them, so what steps is my right hon. Friend taking to ensure that our post-Brexit benefit rules are applied fairly and consistently for UK and EU citizens alike?