(3 years, 9 months ago)
Commons ChamberUniversal credit has significant design flaws going back to its inception in 2012, but drastic cuts in social security spending in 2015 added to that. By the beginning of the pandemic last year, approximately £33 billion had already been cut in support for working-age people, with single parents and disabled people particularly affected.
Universal credit claimants have been driven into debt and rent arrears, and the increase in food bank demand is attributed to UC’s introduction. The associated poverty is driving negative impacts on health. For example, a peer-reviewed report published in The Lancet last March showed that people who moved on to universal credit experienced clinically significant psychological distress as a result. Another report from The BMJ showed that the hostile and demeaning universal credit system worsened physical and mental health.
As the covid crisis hit, not everyone could work from home and the low-paid and vulnerable sectors, such as hospitality and leisure, have been most affected, driving the increase in UC claimants. We know that not only is this health crisis far from over, but neither are the impacts on the economy and jobs. People need reassurance that in their time of need an adequate safety net is there. In my constituency, more than half of the 14,633 claimants now claiming UC are doing so as a result of the pandemic. Many have contacted me about the debate, but not just those relying on UC have written to me, which reflects the recent poll showing that 74% of the public support the increase in UC and want to see it extended.
I chair the APPG on universal credit, and we held an inquiry into the impact of covid on claimants last spring and made a number of recommendations to the Chancellor in November, including retaining the £20 per week uplift, as well as extending it to legacy benefits and replacing the five-week wait with an initial non-repayable starter payment.
We know from Save the Children that potentially 200,000 more children will be living in poverty if the uplift is not extended. The Resolution Foundation has estimated that by 2024 an additional 730,000 children will be living in poverty, but even if the uplift continues, people are still struggling. We know that one in five on UC always run out of money, compared with 8% of those not reliant on UC. We know that half a million people have accrued rent arrears since the start of the pandemic, with an average of £730 debt. The ban on evictions also runs out at the end of March. Covid saw those already struggling to stay afloat bear the brunt of the economic and health burden. We cannot—we must not—let them down. We must extend the UC uplift.
(4 years ago)
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It is a pleasure to serve under your chairmanship, Mr Rosindell, and I congratulate the hon. Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron) on her speech. It is also a pleasure to follow the hon. Member for Beaconsfield (Joy Morrissey), who made some fantastic points that I absolutely support.
In the four or so minutes that I have, I would like to make the following brief points. First, covid is a disease of poverty: people with existing health conditions or disabilities are particularly at risk of contracting the virus and, unfortunately, suffering its worst effects. Data from the Office for National Statistics shows that between March and July, disabled people accounted for three-fifths of covid deaths in England and Wales, and the ONS has said that this is probably an underestimate. There were more than 27,500 coronavirus-related deaths of disabled people, compared with 18,800 deaths of non-disabled people. Disabled women are nearly 11 times more likely to die than non-disabled women; for men, the figure is about six and a half times.
Why is that happening? As I have just said, covid is a disease of poverty, and we know that disabled people are more likely to live in poverty than non-disabled people. Last year’s very good Disability Benefits Consortium report showed that on average, disabled people have lost £1,200 every year over the past decade, compared with £300 for a non-disabled person. That figure significantly increases when there is more than one disabled person in a household, and of course we must not forget the extra costs that disabled people face as a result of their disability, which are about £538 extra a month. Overall, £36 billion will have been taken out of social security support for working-age people by 2022.
On top of that, I am afraid that the shielding system the Government set up was completely useless. The Greater Manchester Disabled People’s Panel did a large-scale survey that it published in July, which revealed that one in five people had been included in the Government’s shielding list. The 80% who were excluded did not get any of the support that was available to officially shielded people. Given that the majority of disabled people were not shielded, one would think that the Government would recognise that fact, and that additional financial support would be provided through social security—not at all. Poor disabled people were faced with the additional dilemma of having extra costs on top of their extra costs. They had to get food somehow: did they go into debt? Did they get food delivery schemes that they had to pay for, or did they risk their health and go to the shops?
As the Select Committee on Work and Pensions heard during our coronavirus inquiry in April, and as we were already anecdotally aware of people saying, disabled people in work were more likely to be made redundant than non-disabled people. Citizens Advice then showed in its survey that more than a third of disabled people were likely to be made redundant, compared with 17% of the working-age population as a whole. Access to Work is meant to enable disabled people to stay in work, so I ask the Minister this: of the 4.1 million disabled people able to work, how many more disabled people have been able to avail themselves of the support over and above the 43,400 who have done so since the covid pandemic?
What can we do about it? We need to have a supportive shielding system that identifies vulnerable people not via an algorithm but at a local level, with disabled people’s organisations. They have been completely excluded from any decisions made about what is going to affect them. It is not good enough. That needs to be done for all tiers of the new system. Personally, I believe we should be going for a national circuit-breaker. I am a former public health consultant and we know that, because of seeding, local lockdowns will not work.
Access to Work must be extended to ensure that disabled people can work from home wherever possible, or furloughed on 100% pay. The Government must monitor any unlawful discrimination of disabled people in the workplace through the Equality and Human Rights Commission, and must take enforcement action where that is happening. The Government must transfer resources to local authorities not just in terms of the national Test and Trace programme, but also to ensure that adequate support is made available to protect and support disabled people. We are at war with this virus, and the Treasury need to recognise that and invest and support our people appropriately, including disabled people.
(4 years, 4 months ago)
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Women and disabled people have had to resort to law to get the Government to listen to the unfairness and the hardship that universal credit creates. Danielle, a dinner lady, was losing about £500 a year as a result of being paid on the last day of the month. She has ended up in debt and behind with her rent, and she does not know how she will recover. If the computer system is as agile as it is meant to be, why has this, and so many other issues, occurred? Why is there a difference in the 1,000 people that the Government say have been affected, as opposed to the 85,000 people whom the court has identified?
I will certainly look at the individual case that the hon. Lady raises, but I would gently say that it is such a shame that the Labour party—and she is no exception to this—is constantly so negative about universal credit. It is a modern, flexible, personalised benefit, which reflects the rapidly changing world of work. Let us remind ourselves of Labour’s position, which is to scrap universal credit with no plan whatever with which to replace it. That seems pretty foolish to me, but do not take my word for it; the Institute for Fiscal Studies has slammed Labour’s pledge as uncosted and
“unwise…expensive, disruptive and unnecessary.”
I could not have put that better myself.
(4 years, 8 months ago)
Commons ChamberIn the last six years alone, there have been 1.4 million more disabled people in work; in the last two years alone, there have been 404,000 more disabled people in work, bringing the figure to 54.1%—a 9.9 percentage point increase in the last six years alone. The disability employment gap has fallen by 5.6 percentage points in the last six years. We are making progress and we continue to be ambitious about unlocking everybody’s potential.
Will the Secretary of State ensure that during the coronavirus epidemic, any social security claimant who fails to attend a work capability or work-related activity assessment will also not have their social security support stopped?
(4 years, 8 months ago)
Commons ChamberThank you, Madam Deputy Speaker, for granting an Adjournment debate on such an important issue.
The first duty of any Government is to keep its citizens safe, particularly the most vulnerable among us. This evening, I want to discuss the deaths of vulnerable social security claimants since 2014. That those deaths have been linked to the actions of the Department for Work and Pensions is a matter of grave concern. It shows abject failure on the part of not only the Department, but the Government. Ministers set policy and the Department implements it, so both are culpable. However, this is not just about what policies are implemented but about how they are delivered, and that relates to the culture in the Department. [Interruption.]
Order. May we have a little bit of quiet? We cannot hear what the hon. Lady is saying.
Thank you, Madam Deputy Speaker. I shall speak up.
As I was saying, the leadership determines the culture in an organisation. In a Department, that culture is determined by Ministers. It is a question not just of the policies and their implementation, but of the tone and culture that are related to their delivery.
We know that the Government’s health assessment process and sanctions regime leave sick and disabled people in fear and dread as they wait for the inevitable envelope to drop on their doormat inviting them to participate in a work capability assessment or a personal independence payment assessment, or possibly both. More than three quarters of claimants who appeal against assessment decisions telling them that they are fit for work have those decisions overturned, and that is because these are poorly people. We also know that in 2013 the death rates among people on incapacity benefit or employment and support allowance were 4.3 times higher than those in the general population, an increase from 3.6 times higher in 2003. That showed the level of sickness and ill health in that group of people.
Peer-reviewed research published in the Journal of Epidemiology and Community Health estimated that, between 2010 and 2013, work capability assessments were independently associated with an additional 590 suicides, 280,000 cases of self-reported mental health problems, and 725,000 antidepressant scripts. Not only are those assessments not fit for purpose; they are actually doing harm.
I congratulate the hon. Lady on her assiduity. She has made a name for herself in the House not only on behalf of her constituents, but on behalf of everyone affected by this issue. Does she agree that, in this day and age, for anyone to die in stress while awaiting rightful help and aid from the Government should be deemed nothing short of obscene and disgraceful, that the shame of it has an impact on every person who takes a seat in this place, and that what we need is an urgent change in the present system?
I could not agree more with the hon. Gentleman. He is absolutely right. This shames us all. These are the most vulnerable in our society, and, as I shall go on to show, evidence is revealing that policies driven by the Government are having this impact.
Over the last 10 years, five reviews of the work capability assessment have repeatedly raised issues relating to the assessment process, from the loss of medical records to blatant lies in assessment reports. Nearly 3,500 individuals shared their experiences for the purpose of the Work and Pensions Committee’s 2018 reports on ESA and PIP assessments, which was an unprecedented public response to a departmental Select Committee inquiry. Tonight, however, I want to raise a number of cases which have been in the public domain, and in which the Department’s processes to safeguard vulnerable claimants have been an abject failure.
On 23 January this year, Disability News Service brought to public attention the death of Errol Graham in 2018. Weighing just 4½ stone, Errol’s body was found eight months after his employment and support allowance had been stopped. He was 57 years old. His social security support was cut off in October 2017, just weeks after he failed to attend an appointment for a DWP fit-for-work assessment. He had been on incapacity benefit since 2003, after his father—whom he had cared for—died. He was reassessed as unfit for work in 2013, and was on ESA when the DWP called him for a retest in 2017, as, according to a letter from the Department,
“the claimed level of disability was unclear”.
The inquest heard that it was standard DWP procedure to stop the benefits of a claimant marked on the system as vulnerable after two failed safeguarding visits. It made two visits, on 16 and 17 October. Errol’s ESA payment, due on 17 October, was stopped on the same day. There was no formal requirement for DWP staff to seek more information about Errol’s health—for example, from his GP—or about how he was functioning before ceasing his benefits, and the inquest heard that they had not done so.
The coroner’s report into Errol’s death found that the
“safety net that should surround vulnerable people like Errol in our society had holes within it”.
Furthermore, she said:
“He needed the DWP to obtain more evidence”—
from his GP—
“at the time his ESA was stopped, to make a more informed decision about him, particularly following the failed safeguarding visits.”
A consultant psychiatrist told the inquest that
“Errol was vulnerable to life stressors”,
and that it was
“likely that this loss of income, and housing, were the final and devastating stressors that had a significant effect on his mental health”.
Errol’s daughter-in-law, Alison, has been scathing, telling me of the anger she and her husband Lee feel. She said that it was particularly shocking that the QC acting on behalf of the Government in the inquest tried to intimidate not just the family but others, shouting at the police officer who found Errol’s body about what else he had seen. In particular, they were deeply offended that the police officer was asked whether he had found any takeaway menus or cartons. It was clear at that inquest that the Government were far from being in listening mode or trying to learn from this. Rather, they were seeking to blame, which is absolutely unforgivable.
I congratulate my hon. Friend on securing this important debate. It is now more than 18 months since Errol Graham starved to death and more than eight months since the inquest into his death. At that inquest, the coroner asked for robust policy and guidance for DWP staff to prevent future deaths, yet the Department’s serious case panel is not even expected to consider the systemic issue identified in Errol’s case until next month. Does my hon. Friend agree that this inaction makes it hard to believe the Secretary of State when she tells me that the Department took Errol’s tragic death very seriously?
I totally agree with my hon. Friend. I shall go on to show that this has been going on for years now, and that nobody has responded. Systematic errors are coming out in repeated coroners’ reports and other reports, yet there is still no action.
I commend the determined way in which my hon. Friend has pursued this issue consistently over a long time. She has talked about the coroners getting in touch with the Department. Does she share my concern that, as was shown in the National Audit Office’s recent report, there is no systematic way at the moment of compiling what coroners say about suicides and other cases that they report to the Department on?
My right hon. Friend hits the nail on the head. There are systemic failures within the Department and they have to be addressed. This is just not good enough.
Jodey Whiting, who was from Stockton, died on 21 February 2017. She was a vulnerable woman with multiple physical and mental health illnesses, which left her housebound and requiring 23 tablets a day. That meant that she was entirely reliant on social security support. In late 2016, the DWP began to reassess Jodey’s entitlement to ESA. Jodey requested a home visit as she rarely left the house due to her health, and she had made it clear in her reply that she had
“suicidal thoughts a lot of the time and could not cope with work or looking for work”.
Despite this, the DWP decided that Jodey should attend a work capability assessment in January 2017. Unfortunately, Jodey missed that appointment and, on 6 February, the DWP decided to stop the fortnightly ESA payments that Jodey relied on. She was immensely distressed to learn that her last payment would be made on 17 February. With the help of her family, Jodey wrote to the DWP to explain the severity of her health conditions and to ask the Department to reconsider the decision to terminate her ESA, but that did not happen until after her death. She also received letters informing her that her housing benefit and council tax benefit would be stopped because they are linked to ESA. She told her mum, Joy, “Mam, I can’t walk out of the house, I can’t breathe, how am I going to work?” Jodey took her own life just three days after her last ESA payment on 21 February.
The Independent Case Examiner concluded that DWP was guilty of “multiple” and “significant” failings in handling Jodey Whiting’s case and found that the DWP failed to follow its own safeguarding rules five times in the weeks leading up to the suicide. In addition, a report by psychiatrist Dr Trevor Turner says that Jodey Whiting’s mental state was likely to have been “substantially affected” by the DWP’s decision to remove her out-of-work benefits for missing a work capability assessment that she did not know about. The case is now the subject of an appeal to the Attorney General for a new inquest, and I know from speaking to Jodey’s family today that they are desperate to know when they may hear from the Attorney General.
Then there is Stephen Smith. Last April, we learned that Stephen, the Liverpool man many people remember from the front pages of various newspapers and whose emaciated body was more reminiscent of someone from a concentration camp than 21st century Britain, had died of multiple organ failure after being found fit for work. But there are many, many more cases of DWP claimants dying, some of which I raised in last year’s Westminster Hall debate.
Jimmy Ballentine took his own life in 2018 after being found fit for work. Amy Nice also took her own life in 2018 after being found fit for work. Kevin Dooley committed suicide in 2018 after losing ESA. Brian Bailey died in July 2018, again taking his own life after being found fit for work. Elaine Morrall died in November 2017, taking her own life. Daniella Obeng died in December 2017, again taking her own life. Brian Sycamore died in September 2017, taking his own life after leaving a note blaming the DWP after failing his work capability assessment.
Mark Scholfield, who died in July 2017, was a terminal cancer patient who did not receive any UC before he died in spite of his illness. Chris Gold, who died in October 2017, was found fit for work following a stroke and was facing foreclosure when he died because he could not work. Lawrence Bond collapsed and died in the street in January 2017 after being found fit for work. Julia Kelly died in 2015, taking her own life after losing ESA for a third time. Ben McDonald took his own life in March 2015 after being found fit for work. Chris Smith, who died in 2015, had cancer and was found fit for work despite a terminal diagnosis.
David Clapson could not afford to power his fridge to store his insulin and died as a result in July 2014. Michael Connolly took his own life on his birthday in 2014 after losing his ESA. George from Chesterfield died of a heart attack in May 2014, eight months after being found fit for work despite having had three previous heart attacks. Robert Barlow died of cancer in April 2014 after losing his ESA. David Barr died in September 2014, taking his own life after losing ESA. Trevor Drakard took his own life in 2014. Shaun Pilkington—
The hon. Lady is referring to a number of names. When someone comes to my office or to the office of another MP talking about anxiety, depression or suicide, we always say to ourselves, “These people need help.” Is it not time for the Government to instruct office staff that action must be taken when they hear someone threatening suicide or meet someone who has tried to commit suicide?
Absolutely. I thank the hon. Gentleman.
This is unforgivable. These are people’s family members and we are failing them. We must not let this continue.
My hon. Friend will probably have seen, as I did, the comment in the recent National Audit Office report on suicides that internal process reviews, which are perhaps not carried out as frequently as they should be, are often carried out when a claimant takes their own life, but the Department does not know whether the lessons from those reviews are implemented. Does that not point to another dramatic change that is required here?
My right hon. Friend is spot on. There are so many learning points that we should have already picked up on, and I will go through them in a minute.
I will finish the list if I can. Shaun Pilkington died in January 2014, and Terry McGarvey died in February 2014. This is not an exhaustive list, but it shames us all. This inaction shames the Government. I have raised this so many times over the past five years, and there has been no change whatsoever.
For years now, there have been warnings that the Department’s safeguarding policies are not working. In 2014-15, as a member of the Select Committee on Work and Pensions, I asked for an inquiry on sanctions policy. From this inquiry, the Committee recommended:
“DWP should seek to establish a body modelled on the Independent Police Complaints Commission, to conduct reviews, at the request of relatives, or automatically where no living relative remains, in all instances where an individual on an out-of-work working-age benefit dies whilst in receipt of that benefit. Such a model, operated within the purview of the Parliamentary and Health Service Ombudsman, should ensure that the role of all publicly-funded agencies involved in the provision of services or benefits to the individual is scrutinised, so that a learning document can be produced setting out how policy, and the service delivery pathway, can be improved at every stage.”
In their formal response—[Interruption.] Would the Minister like to intervene? I believe there is something he finds amusing about this.
No, there is not.
I hope it was not.
In the Government’s formal response, there was no recognition or acknowledgment of the recommendation, which was completely rejected by the Government.
In 2014, the Disability News Service asked, via a freedom of information request, for the Department to publish 49 internal peer reviews into deaths. After nearly two years, and following an information rights tribunal, redacted versions were published. It was clear from the limited information available that Ministers were repeatedly —repeatedly—warned by their own civil servants that their policies to assess people for out-of-work disability benefits were putting the lives of vulnerable claimants at risk.
More recently, as my right hon. Friend the Member for East Ham (Stephen Timms) mentioned, on 7 February 2020, following a request from the former Chair of the Work and Pensions Committee, the NAO published a briefing report setting out the findings of its inquiries with the Department on the information it holds on benefit claimants who ended their life by suicide.
The NAO found:
“The Department has received nine contacts from coroners via its official coroner focal point relating to suicide since March 2016…received four Prevention of Future Death (PFD) reports from coroners since 2013, of which two were related to suicide…investigated 69 suicides of benefit claimants since 2014-15… It is highly unlikely that the 69 cases the Department has investigated represents the number of cases it could have investigated in the past six years”.
In other words, this is just the tip of the iceberg. We do not even know the actual number of people who have taken their own life as a result of what they went through.
The report continues:
“The Department does not have a robust record of all contact from coroners.”
How can that be? This is a Government Department, for heaven’s sake.
“The Department accepts that not all its staff are aware of the IPR guidance.”
What is the point of doing them if they are not aware?
“We also found that the Department’s guidance does not necessarily reflect the full scope of issues that could trigger an IPR.”
That just beggars belief. The report continues:
“the Department told us that there is no tracking or monitoring of the status of these recommendations. As a result, the Department does not know whether the suggested improvements are implemented.”
Do Ministers not feel ashamed? The report also said that
“the Department does not categorise IPR outputs to identify larger trends or themes from within the outputs, and so systemic issues which might be brought to light through these reviews could be missed.”
The NAO report found similar conclusions to those found by the Select Committee five years earlier: that lessons have not been learned. This is absolutely damning. I hope that the Ministers here take on board these results. Not only that, but because this is rarely covered in the media I hope that everyone in the Press Gallery is going to be reporting on this. It is a scandal: British citizens are dying as a result of policies implemented by this Government. Everybody should be taking note. I have asked for a full and independent inquiry, given the serious failures that are clear just from the speech I have given. I appreciate that the Minister needs to consult others, but I would like a response by the end of this week. This is too serious to be ignored.
The Department stated that there will be a new system of serious case reviews, so who will sit on the panel? Will there be independent panel members, not just DWP employees and contractors? Will they have medical expertise? Will there be a commitment to publishing the panel’s membership and terms of reference? How will the trends or themes to be investigated be identified? How will the recommendations made by the panel be tracked? Will the Department undertake to review its safeguarding policies in the round, including the training of staff? In the light of the NAO’s findings, how will the Department ensure that its guidance reflects the full scope of issues that could trigger an internal process serious case review and that all its staff are well aware of the relevant guidance?
The death of any person as a result of Government policy is nothing less than a scandal. It is clear that from the cases that I have talked about, and from the NAO report and others, that this is just the tip of the iceberg. We do not know what is going on. For too long, the Department has failed to address the effects of its policies. It must now act. Enough is enough.
(4 years, 8 months ago)
Commons ChamberUnfortunately, the Labour party is not in government, but I will say to the hon. Gentleman that the cuts have amounted to £4.7 billion per year, so the so-called investment that the Government propose pales into insignificance against that.
As we have heard from the Minister today, the Government intend to end their four-year freeze on benefits by proposing to uprate working-age benefits in line with the CPI rate as of September 2019, which was 1.7%. We welcome that slight step forward. Remarkably, for a range of benefits and not just universal credit, this will be the first cash increase in basic entitlements since April 2015. It is important to point out that there has not been any recent change in policy from the Government: the freeze was always due to come to an end in April this year, as announced by the previous Chancellor.
If we scratch beneath the surface of the increase, we find that, after adjustment for price increases, the four-year benefit freeze has actually meant a cut in the real level of benefits by 6%. In many cases, that has come on top of earlier cuts. The 2015-16 benefits freeze followed uprating by only 1% each year in the three years prior to its introduction. There is, therefore, now a yawning gap between the level of benefits offered and essential living costs. Those political choices have consequences, with child poverty, homelessness and in-work poverty at alarming levels, as evidenced in the recently published Joseph Rowntree Foundation UK Poverty report.
Indeed, under this Prime Minister, children will receive a miserly increase of 75p per week in child benefit, and the second child just 55p per week.
My hon. Friend is making a lengthy and well thought-out speech, unfortunately not reflected by the Government. He mentioned the increase in child poverty and the concerns that so many charities, including the Joseph Rowntree Foundation, have. Their conclusion is that the cuts in social security are driving not only child poverty but disability poverty. Does he agree?
I do agree with my hon. Friend. Social security has become a vehicle for cuts and children have borne the brunt, with over 4 million now in poverty.
The 75p per week for the first child will not even buy a loaf of bread in many shops. As a result of the four-year freeze, families living in poverty are now a total of £560 worse off a year on average, equivalent to three months of food shopping for low-income families. Harsh and punitive Conservative policies such as the benefits freeze, the two-child limit and the five-week wait have created a society in which people are forced to turn to food banks in ever-increasing numbers just to get by.
The flagship social security reform of universal credit is not working. The full roll-out will now be delayed yet again until 2024, seven years behind the original plan. It is driving far too many people into poverty, debt and rent arrears. One of its key defects is the in-built and unrealistic five-week wait. At what stage will the Minister apply common sense and change that to fortnightly payments?
According to latest figures available, in 2018-19 the Trussell Trust distributed just short of 1.6 million emergency food parcels, of which 578,000 went to children—the highest level since the charity opened and up nearly 20% on the previous year. In some parts of the UK—Scotland and London and the north-east—the percentage increase year on year was even higher. That represents a depressing 73% increase in food bank use over the past five years, and the Trussell Trust identifies the failing benefits system as one of the main reasons behind that. Behind these devastating statistics are real people, families and children up and down the country, many of them in the constituencies that the new Tory MPs in the north represent.
I turn to the freeze in the local housing allowance. Evidence suggests that it has been a particular source of hardship because of the increasing number of people forced into private rented accommodation by the shortage of social housing. The charity Shelter has calculated that as a result of the benefit freeze, 94% of areas in the UK are unaffordable for people claiming LHA. Recent research by the charity Crisis and the Chartered Institute of Housing found that almost 93% of areas were still unaffordable. There are huge discrepancies throughout the country. For example, an average of £87 a month would be needed to make the bottom 30% of the rental market available in the UK. However, in London a claimant would need an extra £1,398, so the uprate of £10 per month is totally unrealistic.
There is, of course, nothing to celebrate here. The Conservative Government are trying to clean up the mess they created, and they are not even getting the job done properly. We have repeatedly called on the Government to scrap the benefit freeze. This uprating is of course welcome, but it appears to be too little, too late. The brutal cuts imposed by the Government have entrenched, and continue to entrench, poverty across these islands. A 1.7% increase in working-age benefits does not make up for the damage caused by the four-year freeze. If austerity was really over, the Government would be making up the shortfall.
Let us look at some of the effects. Overall, benefits and tax credits affected by the four-year freeze will be around 6% lower in 2020-21 than they would have been if CPI indexation had been applied during the four years of the freeze. Taking account of all uprating restrictions across the decade, affected benefits are around 9% lower in 2020-21 than they would have been if CPI indexation had applied since 2010. Child benefit and working tax credit elements are between 13% and 17% lower in 2020-21 than would have been the case if CPI indexation had applied throughout the decade.
The Resolution Foundation estimated that the four-year freeze saved the Government £4.7 billion a year by 2019-20, of which £1.8 billion was attributable to the final year of the freeze, and yet the Treasury forecast at the 2016 Budget that the four-year freeze would achieve an annual saving of £3.5 billion by 2019-20. Just last week, the Joseph Rowntree Foundation reported:
“The benefit freeze has seen the value of many benefits fall. The same benefit received in 2019 and 2013 is worth around 6% less”.
We have to wonder about that. If austerity was really over, as we are continually told it is, the Government would make up that shortfall.
I am sad to say that there are 1 million people living in poverty in Scotland, and almost one in four of them are children. In 2019, 250,000 children living in one of the world’s richest nations are growing up in poverty. That is nothing short of scandalous. Poverty is not inevitable. People not having enough money to feed and clothe their children is not something that happens by accident. The existence of poverty in a country as rich as ours is a direct consequence of political choices. The decade of austerity was a political choice. Massive long-term cuts to the social security budget were a political choice. The widening of the holes in the social security safety net so that more families and children would fall through was a political choice. The ill-conceived and hopelessly financed introduction of universal credit was a political choice. Making the poorest, weakest and most vulnerable in our society carry the can and bear the brunt of a financial crisis that had nothing to do with them was, of course, a political choice.
There can be no doubt that one of the main drivers of child poverty in these islands has been the Government’s package of welfare reforms, which by any measure has been an abject failure. How else could one describe a package of reforms the result of which is that 65% of all the children who live in poverty come from households in which at least one adult is working? There is no need to take my word for it; the United Nations special rapporteur on extreme poverty said:
“Changes to benefits, and sanctions against parents…are driving the increase in child poverty.”
Some would still have us believe that it will take decades to turn things around and lift children out of poverty, but I do not believe that that is true. There are measures that the UK Government could take right now that would immediately stop children and their families falling into poverty. One of those would be for the Government immediately to stop the roll-out of universal credit, take their time and find the money to fix the major problems in the system, which they are only too well aware of but choose to ignore. There is no doubt that poverty in childhood leads to poverty of hope, aspiration and opportunity. Most movingly, we hear too often of the deep scars that people have in adulthood as a result of child poverty.
On that point, I wonder what the hon. Member thinks of the Citizens Advice proposal that all frozen benefits be uprated not just by CPI, but by CPI plus 2% for the next four years. That would go some way to addressing the appalling imbalance, and the poverty that so many of our children and our disabled people have found themselves in.
The hon. Lady—my good friend—is right that Citizens Advice has produced an excellent report on this. My local citizens advice bureau bears the brunt of trying to help people fill out forms and navigate their way through the social security system, and I am sure she knows all about that. I hope that the Government will take cognisance of the Citizens Advice report to which she refers.
There is an inescapable and undeniable link between the paucity of affordable rented property in the private rented sector, as we have heard from the shadow Minister, and the increased risk of people becoming homeless simply because they cannot afford to meet the cost of living in private rented accommodation. There is a chasm of difference between what people are expected to pay and what they can afford to pay.
Let us be absolutely clear: this housing crisis—particularly in England—and the rising levels of homelessness and rough sleeping did not happen by accident. There has not been some unforeseen set of circumstances that has led to the number of households living in temporary accommodation in England rising by 60% between 2012 and 2018. No unexpected or unforeseen quirk has led to the number of rough sleepers in England nearly doubling over the past five years. This housing crisis was all too predictable, because just about every stakeholder warned the Government right from the start about the inevitable consequences of pursuing their austerity agenda. When they froze local housing allowance and failed to meet their targets for building social housing, what did they expect to happen other than a rise in homelessness and the number of people sleeping rough on our streets? That is exactly what has happened, so let us call this what it is: a crisis entirely of the Government’s own making.
It is incontestable that the Government’s austerity agenda has had a hugely negative impact on people’s ability to rent private sector accommodation. Research from the Chartered Institute of Housing shows that many LHA rates now fail to cover even the cheapest third of rents, as they were designed to. A survey carried out by the National Housing Federation and the Scottish Federation of Housing Associations found that tenants on universal credit were more than twice as likely as other tenants to be in debt.
There is much more to be done to ensure that we help our fellow citizens escape poverty. I hope that Ministers have seen the two Bills that I presented today, the first of which aims to ensure that people who give up a zero-hours contract job are not subjected to sanctions under universal credit, and the second of which would ensure that the Government would step in to ensure that no one in rent arrears is evicted from their home.
I welcome the fact that, for the first time for many years, benefits are being uprated in line with inflation. It is a welcome change and one that is long overdue. But I think we do need to look a little bit at the history of what has happened since 2010, as the shadow Minister has done in part.
In the 2012 autumn statement the then Chancellor, George Osborne, limited increases in most working-age benefits—including those for people in work—to 1% for three years from 2013-14. That was due to end in 2015-16. But then, as we have been reminded, we had the benefits freeze, which froze most working-age benefits at cash levels for a further four years. Thank goodness that freeze is ending, but we have now had seven years without inflation uprating, and the inflation uprating that we are getting through this order is at the lower CPI rate, rather than at the RPI rate that was always used prior to 2010.
The Government have chosen to cut the incomes of those who are assessed as being the poorest, and we all know the consequences. We have been reminded of some of them already in this debate: enormous numbers resorting to food banks; people sleeping rough in Westminster tube station; and child poverty going through the roof.
Social security spending on working-age adults and children amounted to 5.7% of GDP in 2010. It is now down to 4.3%. A single adult’s jobseeker’s allowance will be £74.35 a week from April under this order. It would have been £86.72—one sixth more than it is actually going to be—if RPI uprating had been in place since 2010. Child benefit for the first or oldest child is going to be £21.05 a week after the modest increase that the shadow Minister drew attention to in his speech. If it had been uprated by RPI since 2010, it would have been £26.90 a week—over 25% more than it is actually going to be because, of course, child benefit was frozen in cash terms from 2010, not just from 2015.
This morning Citizens Advice published research entitled “The impact of the benefits freeze on people in debt”, which states:
“Since the benefits freeze began, we’ve seen an increase in the proportion of people we help with debt who have no money left at the end of the month once they’ve covered their living costs. In 2016/17, 32% of all people we helped with debt had no money left after covering their costs, but by 2019/20 this had risen to 38%.”
It argues that the Government should adopt the recommendation of the Work and Pensions Committee to which my hon. Friend the Member for Oldham East and Saddleworth (Debbie Abrahams) has already drawn attention. I think the Committee first made this proposal last July under the chairmanship of Frank Field, to whom I pay tribute and who will be greatly missed in the House. The recommendation was:
“From 2020/21, the Government should increase the rates of frozen benefits by CPI plus 2%. That would mean that benefit rates would, after four years, reach the level at which they would have been set if they had not been frozen.”
The Joseph Rowntree Foundation calculates a minimum income standard for a minimum acceptable standard of living for different household types. In 2009, the benefits system provided 70% of that standard for a lone parent with two young children. By last year, that was down to 58%. In 2009, the system provided a childless working-age couple with 42% of the standard. Hon. Members might think that that is low enough, but last year it was down to 30%. The household benefit cap is not being uprated at all, when it certainly should be, and there is no change at all to the harshness of the two-child limit.
I am grateful to my right hon. Friend—the new Chair of the Work and Pensions Committee—for giving way. Many of us are concerned that the Government’s proposed increase is not at all going to rectify the dreadful social security situation that exists at the moment. Is he as concerned as I am about this?
I am very concerned. My hon. Friend is absolutely right. I think that the Government are making sure that the situation is not going to get worse, or at least not much worse, but they are certainly in no way putting right the damage that has been done over the last few years—indeed, over the past 10 years.
(4 years, 9 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
My hon. Friend asks a pertinent question that was raised by six separate colleagues at oral questions only last week. I am looking closely at this area and intend to organise a roundtable with interested colleagues and officials to explore how we can tackle the issue.
I congratulate my hon. Friend the Member for Airdrie and Shotts (Neil Gray) on his urgent question. Policy in Practice analysis shows that disabled people lose an average of £3,000 a year, but they are not the only group to lose money under universal credit. In addition to considering the five-week wait, about which so many of my colleagues have raised issues, will the Minister examine increased support for disabled people? Disabled people and children are being plunged into poverty as a result of this benefit.
I think I have already answered this question. Around 1 million disabled households will receive an average of £100 more per month under universal credit. Importantly, the claimants will have access to around £2.4 billion of previously unclaimed benefits that, for all sorts of reasons, they did not claim under the legacy benefit system.
(4 years, 9 months ago)
Commons ChamberI thank my hon. Friend for his question and welcome him to his place. I am delighted that more than 5 million people are now self-employed; that is fantastic news. This issue is the priority for me, alongside progression and youth opportunity. The Chancellor has announced a consultation in January and I urge all Members to take part; it concludes in the middle of February. We are keeping a close eye on this sector, and it is absolutely right that we should stand up for the self-employed.
We recognise that attending a work capability assessment can be a stressful experience and have put measures in place to address that. Where possible, we will determine benefit entitlement based on written evidence alone.
Jodey Whiting took her own life in 2017 when her social security support stopped after she missed a work capability assessment that she did not know about. Last week, a psychiatrist said that Jodey’s mental state was likely to have been “substantially affected” by the DWP’s decision.
Last week, Errol Graham’s death was reported in the news. He died in 2018, of starvation. He weighed four and a half stone—again, under similar circumstances. Will the Secretary of State consider, as a matter of urgency, an independent inquiry into the deaths of claimants in these circumstances?
I thank the hon. Lady for that question; she has been a long-standing campaigner against Labour’s work capability assessment, introduced in 2008. We agree: that is why we commissioned five independent reviews and implemented more than 100 recommendations. Working with the Royal College of Psychiatrists, we are making sure that our frontline staff are fully trained to be in the best place to identify people at risk of suicide.
(5 years ago)
Commons ChamberUniversal credit targets additional support at a wider group than the system it replaces, with a much higher rate for severely disabled people than the employment and support allowance equivalent. Around 1 million disabled households will gain, on average, £100 a month on universal credit compared with legacy benefits.
We continue to work with stakeholders and claimants to make sure the system is improved and can operate as quickly as possible. I encourage Opposition Members to support the £600 million of additional support for the severe disability premium and not pray against those regulations.
Despite what the Minister says, the reality is that a new claimant on universal credit will be £180 a month worse off as a result of disability premiums not being available. That is in addition to the increasing number of disabled people who are dying after being found fit for work or being refused PIP. When will the Government ensure that disabled people are not discriminated against and are adequately resourced, as they would be under the Labour party’s policy?
(5 years, 3 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
I understand the thrust of the hon. Lady’s point, and I know that she works hard in this area. As I have said, our collective understanding is getting better, and we are working with stakeholders—people with real frontline experience—to help shape our training. All the assessors—trained health professionals—have people behind them who are experts in all conditions, not just mental health. Remember, many claimants have a menu of health conditions to be navigated. Where an assessor feels that they need additional support, they will get it from those experts before the assessment and while writing the report afterwards.
To be dragged to the courts yet again in relation to PIP and the totally inadequate support that it provides to disabled people is a shame on this Government. According to Mind, two thirds of people on DLA for mental health conditions have had their PIP refused or reduced, which is just not good enough. On top of that, 60 disabled people a month—a month—die after being refused PIP. To say that PIP is an okay support system for the most vulnerable people in this country is an absolute disgrace, so will the Minister write to me and answer the questions that I put to him in my letter of over two months ago?
I remind the hon. Lady that the Government took this case to the Supreme Court because we wanted to get clarity on this important issue. I also remind her that, under DLA, only 6% of claimants with a mental health condition got access to the highest rate of support. Under PIP, 33% of claimants are getting that support—more than five times higher than under DLA. We are doing everything we can to support people, and we are continuing to work with stakeholders and disabled people to ensure that the process continues to improve. I am proud that this Government are spending a record amount of money on supporting the most vulnerable people in society, something that Opposition Members continue to vote against at each Budget.