Oral Answers to Questions

David Rutley Excerpts

Monday 6th June 2022 Commons Chamber

[Richard Thomson (Gordon) (SNP)]

9. What recent assessment she has made of the adequacy of universal credit payment levels in the context of the rise in the cost of living.

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

We have announced £15 billion in further cost of living support, bringing our total package to £37 billion this year. Through the Government’s recent interventions, we are targeting those most in need. Our package equates to at least £1,200 for almost 8 million of the most vulnerable households, at a challenging time for many people.

[Liz Twist]

Earlier today, Carers Trust Tyne and Wear, which is based in my Blaydon constituency, launched its report on the experiences of unpaid carers during the pandemic and made the point that they are the unsung heroes of the pandemic. As we have heard, carers allowance is the lowest benefit of its kind, yet those who receive it will get no cost of living support. Does the Minister really believe that carers allowance is adequate in the face of the current cost of living crisis?

[David Rutley]

I echo what my right hon. Friend the Secretary of State has already said. I also highlight the fact that households that pay energy bills will receive the £400 cash grant to support them, and that if somebody with a disability lives in a household, there will be further funding with the £150 disability cost of living payment.

[Catherine West]

My constituent, who is severely sight impaired and has learning difficulties, lives with his mother, who is basically supplementing his day-to-day living from her own pensioner poverty pot, because of the relentless increase of inflation. What action will the Minister take urgently to address this terrible injustice, with one person who is already in poverty having to try to help her severely disabled son? Will he step in to assist in this terrible cost of living crisis?

[David Rutley]

I do not know the exact details of that case, but there may be opportunities in that household to explore pension credits. Of course, the Chancellor, with support from my right hon. Friend the Secretary of State, recently announced that the household support fund has also been increased by a further £500 million, until April next year.

[Richard Thomson]

The Scottish Government have doubled their game-changing Scottish child payment to £20 per child per week and will increase that to £25 by the end of the year, thereby supporting more than 100,000 children. Why will the UK Government not commit to increasing universal credit by an equivalent amount over the same timescale, and match that for and extend it to those on legacy benefits as well?

[David Rutley]

As we have highlighted, we have just set out a really significant increase in benefits payments as part of the package that is now worth £37 billion. As a result of the work we are doing not just to provide support but to enable people to get into work, there are now 200,000 fewer children in the UK who are in absolute poverty before housing costs.

[Mr Speaker]

I call the shadow Minister, Karen Buck.

[Ms Karen Buck (Westminster North) (Lab)]

The Government have been scrabbling to catch up with the escalating cost of living crisis. Any and all help for lower-income families is very welcome, but the fact is that the protection of those on universal credit and other benefits from the worst impacts of inflation depends on their having adequate and predictable levels of income. How is it acceptable, then, that 42% of universal credit claimants face deductions of, on average, £61 a month? What is the Minister going to do about that?

[David Rutley]

We have already set out our cost of living payments, which will benefit 8 million households in the UK. They are significant and much needed as we face these current cost of living challenges. It is also important to highlight that, over the past couple of years, we have seen the maximum amount that can be taken in deductions from benefits fall from 40% to 30% and now down to 25%.

[Alexander Stafford (Rother Valley) (Con)]

7. What steps she is taking to tackle unemployment in Rother Valley constituency.

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[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

18. What assessment she has made of future trends in the level of child poverty.

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

The latest official statistics show that 200,000 fewer children were on absolute low income before housing costs in 2020-21, compared with 2019-20. This Government take the cost of living very seriously, and that is why we have announced a new £15 billion support package targeted at those most in need, bringing the total cost of living support to £37 billion this year.

[Matthew Pennycook]

The Department’s own data makes it clear that rates of absolute child poverty after housing costs in families with three or more children rose by 300,000 between 2016-17 and 2019-20. With the situation for children in these families having worsened significantly, and with inflation biting, will the Government now finally reconsider their pernicious two-child policy?

[David Rutley]

The two-child policy plays an important role in balancing fairness between those receiving benefits and those who are not. However, as we have already said through much of the questioning today, we have put a huge package on the table, which will benefit families of all sizes. With a vibrant employment market, there are big opportunities for people not just to get into work, but to progress in work as well.

[Simon Jupp (East Devon) (Con)]

22. What recent progress her Department has made on allocating the household support fund to local authorities.

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

Local authorities in England have already received their allocations for the household support fund for April to September, and those have been published online. The Government recently announced a further £421 million increase for the household support fund, extending it from October to March 2023. Devolved Administrations will also receive a further £79 million to help households with the cost of essentials, bringing the total funding for this support to £1.5 billion across the United Kingdom.

[Simon Jupp]

Devon has been allocated a further £5 million to help households in the county with the cost of living crisis. What has the Secretary of State done to ensure that that money is directed at the right places in Devon to make sure that the support really helps?

[David Rutley]

Local authorities, with their local ties and knowledge, are best placed to identify those most in need. To assist local authorities with identifying those who may be in need of additional discretionary support, the DWP has introduced data shares with local authorities, which enables them to proactively identify individuals in need, as well as the supporting guidance for the scheme.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

The Government were able to switch on, and then switch off, the £20 universal credit uplift quite easily and efficiently. What conversations did the Minister have with Treasury colleagues about doing the same again for those on universal credit in the latest package of measures, rather than imposing another bureaucratic headache on already overstretched councils?

[David Rutley]

We have important guidance in place to support local authorities, but they are best placed to provide support for people in their individual localities. That is why the household support fund has been designed with that in mind.

[Mhairi Black (Paisley and Renfrewshire South) (SNP)]

24. What (a) information and (b) financial advice her Department provides to people approaching state pension age on deferring their entitlement to the state pension.

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[Laura Trott (Sevenoaks) (Con)]

T2. Parents across Sevenoaks and Swanley are facing rising childcare costs. I know that there is a huge amount of support available, so can the Secretary of State update the House on what she is doing to simplify the system so that it is clearer to people what they are entitled to and easier for people to claim?

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

The Department is promoting the generous universal credit childcare costs offer as part of a wider national advertising campaign, and it is also working across Government to promote the full range of childcare support through the “Childcare Choices” website and by putting new guidance in place for our work coaches.

[Mr Speaker]

I call the shadow Secretary of State.

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[Claire Coutinho (East Surrey) (Con)]

T4. Many of my poorest households in East Surrey will be anxious about their energy bills and about what our cost of living package will mean for them. Now that we have had the Ofgem forecast, will the Minister confirm that the expected average increase in energy bills this year will be about £1,200 and that our package of support for anyone on means-tested benefits will mean that they receive £1,200?

[David Rutley]

It was vital that the Chancellor, the Cabinet and the Government looked at all the cost pressures arising in the economy. Once we knew what was happening with the energy price cap, it was possible for the Chancellor to start looking at what the options might be. We also needed to look at what payment mechanisms could be used to get the funding out to people. It is therefore entirely right that this package was put together and that it should have the impact that my hon. Friend has so clearly set out.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

T5.   My constituent is a paramedic and was on the frontline throughout the pandemic. He told me how much he was struggling with the cost of living crisis and how he feels cheated out of the household dream that if people worked hard, they could enjoy a good quality of life. He speaks for millions of NHS staff and many others. Does the Minister still think it was a good idea to raise taxes for working people this year?

[Mr David Davis (Haltemprice and Howden) (Con)]

T8. This year Government receipts are at a record high, and billions of pounds have rightly been announced in cost of living support. However, for those most in need—people on means-tested benefits—the support is somewhere between £1,000 and £1,200, which is roughly what they lost when the £20 universal credit uplift was withdrawn. The Joseph Rowntree Foundation has said that withdrawing the uplift would put half a million people into poverty. Citizens Advice has estimated that it has caused 2.3 million people to fall into debt. Times were tough during the covid crisis, but they are going to get tougher this year, so will the Minister look at the £20 that has been taken from universal credit, with a view to returning it by the time of the financial statement in the autumn?

[David Rutley]

I understand my right hon. Friend’s point, but it is important to highlight that the £20 uplift to universal credit was only ever a temporary measure to deal with the immediate impact of coronavirus. Since then we have been monitoring the situation and providing the support that is required at particular times, and that has led to the latest package, which totals £37 billion. As I said in other responses, it is vital to highlight that, at a time of record vacancies, there is a responsibility and requirement to help people to tackle poverty by being able to get into the workplace and to progress in employment as well.

[Ian Byrne (Liverpool, West Derby) (Lab)]

T6. Almost a fifth of pensioners are living in poverty under this Government. With the abandonment of the triple lock, a real-terms cut to their state pension—already one of the lowest in Europe, at around £500—bills rising by £1,000 and food costs spiralling, will the Minister acknowledge that the measures announced by the Chancellor will not stop many pensioners in West Derby being plunged into poverty over the coming months?

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

According to the Child Poverty Action Group, each month some 4,300 households in my constituency are receiving an average of £57 less than they are entitled to because of automatic deductions from their universal credit, and that affects about 3,700 children. What action is the Department taking to reform the deduction system so that innocent children are not disadvantaged?

[David Rutley]

As I said earlier, we put forward policies that have reduced deductions from 40% to 30% and now to 25%. Those policies and the support available for families are designed to help tackle child poverty, along with enabling people to get into work and to progress in employment.

[Mr Speaker]

I call the Chair of the Work and Pensions Committee, Sir Stephen Timms.