Oral Answers to Questions

Debbie Abrahams Excerpts

Tuesday 11th December 2018 Commons Chamber

[Mr Hammond]

Yes, and that is indeed the express view of the vast majority of businesses in this country.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

Will the Chancellor work with the Minister for the Cabinet Office and the Secretary of State for Business, Energy and Industrial Strategy to support my ten-minute rule Bill on project bank accounts for Government projects? It will protect small businesses from losses when tier 1 suppliers such as Carillion and Interserve collapse.

[Mr Hammond]

I am happy to look further at the hon. Lady’s Bill. It is an interesting idea and I know that the Cabinet Office commercial secretariat has been looking at her proposals.

Finance (No. 3) Bill

Debbie Abrahams Excerpts

Committee: 1st sitting: House of Commons
Monday 19th November 2018 Commons Chamber

[Leo Docherty]

Of course the best way to measure the effect of this is in employment growth. I expect these changes to further deepen the positive impact and the positive growth in employment that we have seen recently. Having considered these amendments, I am delighted to welcome the Bill wholeheartedly. Government Members must be confident about supporting our balanced approach, in contrast to the reckless and ideologically driven approach of the Labour party. We must consider this not just in economic or fiscal terms, but in human terms. Free-market capitalism has been one of the greatest forces that the world has ever seen. It has lifted 1.5 billion people out of poverty in the past 30 years. We should be confident about that, and we should be confident in our balanced and responsible approach. I am delighted to welcome the Bill this evening.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

Before I speak to my new clause 18, I want to gently chastise the hon. Member for Gloucester (Richard Graham). He is not in his place at the moment, but I am sure that someone will respond to this for him. He very inappropriately raised quite selective data on inequalities, a subject that I spent nearly 20 years working on before I came to this place. He should know that we are the seventh most unequal country of the 30 developed countries in relation to income inequality. By some measures, we do worse than others, but overall, economic equality is not just about income; it is also about pay and wealth. We need to be mindful of this fact, and selectively reporting data is not a practice that we should be indulging in.

I should like to declare an interest as the chair of the all-party parliamentary group for health in all policies and as a fellow of the Faculty of Public Health, following more than 20 years of national and international work in this field prior to becoming an MP. It is lovely to see you in the Chair, Madam Deputy Speaker. New clause 18 would require the Government to commit to undertaking an assessment of the effects of the personal taxation measures in the Budget—including changes in the personal allowance and the higher rate threshold—on poverty, on the public’s health, including their life expectancy and healthy life expectancy, and in turn on public services.

The reason I have tabled this new clause is that, over the past eight years or so, I have seen the gains made under the previous Labour Government being totally reversed by this Government. Those gains included the reduction in the number of children and older people living in poverty and the improvements in health including an increase in our life expectancy and reductions in health inequalities. As the UN’s special rapporteur on extreme poverty and human rights, Philip Alston, said on Friday, the cuts and reforms introduced in the past few years have brought misery and torn at our social fabric. He went on:

“British compassion for those who are suffering has been replaced by a punitive, mean-spirited and callous approach”.

As I mentioned in my point of order earlier, I am afraid the Under-Secretary of State for Exiting the European Union, the hon. Member for Spelthorne (Kwasi Kwarteng) demonstrated this exact point in his comments on the “The Andrew Marr Show” yesterday. The lack of humanity he showed in his response to the plight of Emily Lydon, who is being forced to sell her home because of issues with transitioning on to universal credit, shamed not only himself and the Government of which he is a Minister, but this whole House.

[Peter Dowd]

Does my hon. Friend agree that the massive cuts in the public health budgets that are now controlled by local authorities have simply made matters considerably worse in the public health field?

[Debbie Abrahams]

My hon. Friend is totally right. Those budgets were ring-fenced to start with, but they are now absolutely emaciated. This is stopping us doing the prevention work that we should be doing. We made massive investments in public health, and they were having a real impact in terms of health gain. I am afraid that that is now going by the bye.

We know that there are 14 million people living in poverty in the United Kingdom, 8 million of whom are working—the highest level ever. It is fine for Conservative Members to speak on a positive note about employment rates, but they should be asking themselves why we have such high levels of in-work poverty. That, too, brings shame on us. Two thirds of the 4 million children living in poverty are from working households. How on earth are young people expected to learn and to excel at school if they are constantly hungry?

[Alison Thewliss]

The hon. Lady might not have had a chance to read it yet, but the all-party parliamentary group on infant feeding and inequalities, which I chair, produced a report that came out last week. It found that even working families are now struggling to meet the cost of infant formula, so they are having to stretch it out, to the detriment of their children’s health. So this problem is starting even before children go to school, because babies are not getting the nutrition that they need.

[Debbie Abrahams]

That is absolutely right. I will come on to some of the really worrying figures about how, from birth, our children are being affected because of the poverty that they are experiencing.

What about disabled people? Disabled people are twice as likely to live in poverty as non-disabled people because of the extra costs that they face around their disability. We have seen their social security support become absolutely emaciated. Given that we are the fifth richest country in the world, that is shocking—absolutely shocking. Four million disabled people are already living in poverty, with many now continually finding that they are becoming more and more isolated in their own homes.

Since 2015, as analysis from the Institute for Fiscal Studies and others has shown, those who are in the lowest income decile have lost proportionately more income than any other group as a consequence of personal taxation and social security changes. That is the important thing. My new clause is not just about taxation. We cannot see that in isolation from how we then ensure, as a country, that we are supporting people on low incomes—and that support is completely inadequate. What was put forward in the Budget does not go anywhere near repairing the damage that was done in the summer Budget of 2015.

Last month’s Budget produces only marginal gains to the household income of the poorest, while reducing the number of higher-rate taxpayers by 300,000. The Government’s regressive measures have done nothing to reduce the gap between the rich and the poor. When cuts to household incomes are combined with the cuts to public spending and services, the impact is even more dramatic, and again with disproportionate cuts to Government funding to towns and cities across the north, as evidence has repeatedly shown.

The effects of all this on life expectancy are now being seen, with health gains made over decades now falling away. Life expectancy has been stalling since 2011, and it is now flatlining, particularly in older age groups and for older women. In the same week—the very same week—that these data came out last year, the Government actually increased the state pension age. We know that our life expectancy is flatlining. For women—think about the 1950s-born women—it is going backwards, yet we are still putting up the state pension age. What is going on?

On top of this there are regional differences in how long people will live, with these health inequalities reflecting the socioeconomic inequalities across the country. Life expectancy for men in Windsor and Maidenhead stands at 81.6 years, while in my Oldham and Saddleworth constituency it is 77. Even within these areas, there are differences in how long people will live. Again, in the Windsor and Maidenhead local authority area, the life expectancy gap is 5.8 years for men and 4.8 years for women, while in my constituency it is 11.4 years for men and 10.7 years for women. These health inequalities are reflected right across the country. The gains Labour made in reducing health inequalities are now being reversed.

Similarly, the Royal College of Paediatrics and Child Health reported last month that infant mortality has started to increase for the first time in 100 years. Four in 1,000 babies will not reach their first birthday in the UK, compared with 2.8 in the EU. These are the unacceptable consequences of austerity. I welcome the Department of Health and Social Care commissioning Public Health England to investigate the causes of this declining health status, but it is very late in the day. Public health specialists—renowned epidemiologists such as Professor Sir Michael Marmot, Professor Martin McKee and many others—have been calling for this for the past 18 months. We already know from the work that they have been doing that they are pointing the finger towards austerity. It is imperative that in addition to stopping austerity, and the misery and poverty that is being wrought, we tackle the inequalities within and between regions and communities.

An analysis of the effects of the Budget’s personal taxation measures is part of this, but it should not be seen in isolation. This would be outside the scope of the Bill, but the Government should be doing an analysis of their social security and public spending cuts. Reducing the gap between the rich and the poor is not just good for the economy. As evidence from totemic reports such as “The Spirit Level” shows, life expectancy then increases, as well as educational attainment, social mobility, trust, and much more. Fairer, more equal societies benefit everyone. Inequalities are not inevitable—they are socially reproduced and they can be changed—but to tackle them in all their forms takes commitment, it takes courage, and it takes leadership.

--- Later in debate ---

[Jack Brereton]

I thank my hon. Friend for those comments, which show that the highest earners are paying their fair share, while the lowest paid in society are being supported as much as we can. That is what this Government have been doing: reducing taxes for the lowest paid in society and ensuring that the lowest paid can be paid more.

I reject many of the views of the hon. Member for Oldham East and Saddleworth (Debbie Abrahams). She made some comments about statistics and then used statistics in her own way. I will also refer to the G7 by saying that only in the UK and Japan have the lowest paid seen their wages grow in that time, and income inequality is lower than it was previously.

[Debbie Abrahams]

On a point of order, Dame Eleanor. The hon. Member for Stoke-on-Trent South (Jack Brereton) suggests that I have used statistics inappropriately. I can cite all my sources of evidence; can he?

[The First Deputy Chairman of Ways and Means (Dame Eleanor Laing)]

Order. The hon. Lady knows that that is not a point of order for the Chair; it is a point of debate, and, as I have said many times in here—and so has Mr Speaker—fortunately it is not the duty of the Chair to decide between one set of statistics and another. It all depends on how one applies the statistics, and the hon. Lady is perfectly at liberty to intervene on the hon. Member for Stoke-on-Trent South (Jack Brereton), as is he to take an intervention from her, where they can continue the argument between them, but I will take no part in it.

--- Later in debate ---

[Mel Stride]

My hon. Friend is exactly right. This is why we also have the enterprise investment scheme and the seed enterprise investment scheme, and why we have made this change to entrepreneurs’ relief. An interesting fact is that of those who benefit from the entrepreneurs’ relief, around a third go on to reinvest in further businesses, so those tax savings are being reinvested in further economic activity.

I turn to the comments of the hon. Member for Bootle (Peter Dowd), who made a number of important points—or, should I say, he made a number of points about important matters? That might be slightly more to the point. However, I agree entirely with my hon. Friend the Member for Brentwood and Ongar (Alex Burghart), who is no longer in his place; I have a great affection for the shadow Minister, particularly the Plutarch and Cicero quotes of which he is most fond. In fact, I will share one with him that does not apply to him in any way, of course:

“Any man can make mistakes, but only a fool persists in his error.”

I think that is probably more appropriate to the leader of his party than to the hon. Gentleman himself.

The hon. Gentleman raised the issues of the amount of tax burden shouldered by the wealthiest in the country. I remind him that under this Government the wealthiest 1% pay a full 28% of all income tax; it was about 24% when the Labour party was in power. As my hon. Friend the Member for Gloucester (Richard Graham) pointed out, the lowest 20% of earners have benefited the most since 2010, from the combination of changes to tax, the national living wage and other factors.

The hon. Gentleman mentioned the UN rapporteur and my appearance on Channel 4. I have to point out that the rapporteur produced, I think, a 24-page report based on around two weeks’ fact-finding in this country. The Government’s view is that the conclusions drawn were disproportionate to say the least. The hon. Gentleman suggested that I did not answer the questions put to me on that particular occasion, which I dispute. However, it is indisputable that he failed to answer the question of my hon. Friend the Member for Cheltenham (Alex Chalk) as to exactly what the Opposition would do with the personal allowance, given the exception that they are taking to our tax measures in the Budget.

[Debbie Abrahams]

Can the Minister recollect whether there has been a UN report in the last eight years that this Government have agreed with?

[Mel Stride]

Well, I am not here to debate UN reports of any description and whether the Government agree with them, other than to make the point that this particular report is rather disproportionate, given the remarks that I made earlier about what has happened to absolute poverty and children of workless households and so on.

Oral Answers to Questions

Debbie Abrahams Excerpts

Tuesday 7th June 2016 Commons Chamber

[Harriett Baldwin]

I welcome this question because our financial services sector is not only our highest-paid sector, but the one with the widest gender pay gap. That is why we launched the Women in Finance charter, and we are asking all financial services firms to implement the recommendations in the excellent review by Jayne-Anne Gadhia, the chief executive of Virgin Money, on the representation, or rather the under-representation, of senior women in financial services.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

The Government have made significant public spending cuts affecting disabled people, including nearly £30 billion of cuts in social security to 3.7 million disabled people. Given that disabled people are twice as likely as the general population to be living in poverty, how many more disabled people will be living in poverty by 2020?

[The Exchequer Secretary to the Treasury (Damian Hinds)]

In fact, spending on disability benefits is going up, not down. There are many more personal independence payments claimants getting the highest rate than there were under disability living allowance; 200,000 more people are getting carers allowance; 22,000 more people are getting help through Motability, and we have a firm commitment to work towards halving the disability employment gap, which is so important for driving up incomes. The gap has remained stubbornly wide, but the most recent quarter showed a small decrease.

Tax Avoidance and Evasion

Debbie Abrahams Excerpts

Wednesday 13th April 2016 Commons Chamber

[Mr Gauke]

I want to make a few more points. Even before last week, HMRC had already received a great deal of information on offshore companies, including those in Panama and including Mossack Fonseca. This information comes from a wide range of sources and is currently the subject of intensive investigation. HMRC has asked the International Consortium of Investigative Journalists, the BBC and The Guardian to share the data they have received from last week’s leaks. Clearly, it is important to examine the data very closely, which is why we are providing new funding of up to £10 million for an operationally independent cross-agency taskforce to analyse the Panama papers and take action on any wrongdoing and regulatory breaches. The taskforce will include analysts, compliance specialists and investigators from across HMRC, the National Crime Agency, the Serious Fraud Office and the Financial Conduct Authority. Between them, those agencies will have some of the most sophisticated technology, experts and resources to tackle money laundering and tax evasion anywhere in the world. The taskforce will report to my right hon. Friends the Chancellor of the Exchequer and the Home Secretary on the strategy for taking action, and we will update Parliament later this year. I stress that the taskforce will have total operational independence. If it finds people to prosecute, it will prosecute them. If it finds information about illegality, it can act on it. In addition, the independent FCA has written to financial firms asking them to declare their links to Mossack Fonseca. If the FCA were to find any evidence that firms have been breaking the rules, it, too, has strong powers to take punitive action.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

The Minister mentioned last year’s Budget and the £800 million for non-compliance issues. However, I understand from his answer to a written question that only £266 million of that has been allocated specifically to address tax fraud. How much of that will be spent on dealing with tax evasion?

--- Later in debate ---

[James Cartlidge]

We have a record low in the number of workless households. Worklessness is the single biggest cause of poverty. The Government have a very strong record on dealing with poverty, and I will come on to that.

[Debbie Abrahams]

It is generous of the hon. Gentleman to give way, but I have to challenge him on his last point. There are more people in work who are in poverty than ever before.

[James Cartlidge]

I simply do not agree with that. I want to start by focusing on the action that has been taken, because I do not think that the anger out there is caused by a lack of action.

--- Later in debate ---

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

What has been highlighted by the publication of the so-called Panama papers is that we do not have a fair tax system. We are not all in it together, as my hon. Friend the Member for Newcastle upon Tyne North (Catherine McKinnell) said so eloquently. Those exposed by this scandal have knowingly exploited tax avoidance measures for their own financial gain. While it is not technically illegal, aggressive tax avoidance has been argued to be against the spirit and intention of the law and of the will of this House. What is really shocking is that Heads of Government are involved, including our own Prime Minister, and that poses fundamental questions about politics and politicians. Once again, it threatens public confidence and trust in politics and politicians. These people are meant to be providing leadership to our citizens, and such involvement calls into question their attitudes and values, as well as their motives for seeking public office.

[Dawn Butler (Brent Central) (Lab)]

Does my hon. Friend think the comments that have been made—for instance, the right hon. Member for Rutland and Melton (Sir Alan Duncan) said, “If you are not wealthy, you are a low achiever”—have added to the public’s distrust of politicians in this place?

--- Later in debate ---

[Debbie Abrahams]

Such a comment adds to the dissatisfaction with politics and politicians as a whole, as I have said. I thought it was a very insulting statement.

As Members on both sides of the House have already said, the Panama papers provide more evidence of the existence of a powerful and indifferent elite, for whom the accumulation of personal wealth at the expense of their fellow citizens is paramount. The evasion and avoidance of tax means that less money is collected by the Exchequer for our pensioners, disabled people and the vulnerable, as well as for doctors, nurses, teachers and all the other public servants funded by public money. Fundamentally, dodging paying a fair share of tax is contributing to growing inequality in this country and across the world, and tax havens are at the heart of this.

Many Members will have seen Oxfam’s report last month. It says the UK heads the world’s biggest financial secrecy network, which spans its Crown dependencies and overseas territories, and is centred on the City of London. Collectively, it is estimated to account for nearly a quarter of global financial services provided to non-residents within any given jurisdiction. The UK takes prime position out of all jurisdictions across the world in the Tax Justice Network’s financial secrecy index, which is hardly something we should be proud of.

The National Audit Office has estimated that the tax gap is £34 billion a year, which is £1 billion more than in 2009. That is equivalent to a third of the NHS’s national budget. About half of the tax gap is accounted for by tax fraud, which includes tax evasion, criminal activity and the hidden or grey economy. When we consider the cuts proposed in last month’s Budget in relation to the personal independent payment for disabled people, we can see that figure for half of the tax gap would pay the whole annual budget for people on the disability living allowance and PIP.

HMRC’s compliance units, now merged into the fraud investigation service, tackle all aspects of non-compliance. According to the NAO, they do not record how much of the revenue they successfully recover relates to tax evasion, but the NAO estimates that the figure is about 30%. One of the issues that HMRC has to face is the need to balance what it can get in quickly, as low-hanging fruit, from low-risk, low-visibility and lower-gain operations with what it can get in from the high-risk, high-visibility and higher-gain and more complex criminal cases. This is where political leadership comes in. Such leadership has been seriously absent, as I shall mention later.

In spite of the 2013 G8 commitment to a common reporting standard at a global level, the Government have dragged their feet and obfuscated on comprehensive action on such measures. I welcome what the Government have proposed this week, but why—six years later—is that happening now? As I asked in an intervention, I would be grateful to the Financial Secretary if he responded on how much of the £266 million that has been specifically allocated to address tax fraud is to deal with tax evasion.

HMRC now has additional staff, with 670 new staff acting on tax evasion, but why were nearly 6,000 HMRC staff let go between 2013 and 2015? Has the 10% reduction in the number of HMRC staff since 2008 actually affected the collection of the moneys owed because of tax evasion?

As I say, I welcome the additional measures that have been taken, but the absolute outrage at this is clear from my mailbox, which I am sure is the same for other Members. There is palpable public anger. My hon. Friend the Member for Blaydon (Mr Anderson) summed it up perfectly: when people are really struggling, it is shocking to see such absolute abuse by a tiny minority.

We need to look at this in the context of the Government’s other benefits and tax measures. According to the Institute for Fiscal Studies, the regressive Budgets during the past six years have left people on low and middle incomes proportionately worse off. That is a result of the tax and social security measures. Projections for the next five years show that there will be increasing poverty and inequalities. All of that compounds the anger that people are feeling. In such a context, the vast accumulation of wealth by the wealthiest is very shocking. In the past 15 years, those in the top 1% have increased their wealth by 79%, which is £3.7 million per person, while someone in the bottom 10% has seen a rise of just 45%, which is £1,600 per person.

In addition to the Prime Minister’s admission in his statement last week that he had benefited from an investment in an offshore trust based in a tax haven, he intervened in 2013 to oppose the beneficiaries of offshore trusts being named in proposed EU money laundering rules. This is what I mean by the need for political leadership. There has been an absence of political leadership, contrary to what can be deemed fair. I am conscious of the time, so I will not pursue that point. Our proposals will make a real difference, and I hope that Members will look at them.

Budget Changes

Debbie Abrahams Excerpts

Monday 21st March 2016 Commons Chamber

[Mr Gauke]

This was an excellent Budget for education; it was an excellent Budget for the next generation. If we are going to have the prosperity and economic security the country wants, we have to have a world class education system. That is exactly what the Government are in the process of delivering.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

Is it fair to make £4.4 billion of cuts to disabled people through the personal independence payment when they are twice as likely to live in poverty, and at the same time give tax breaks in corporation and capital gains tax?

[Mr Gauke]

As I say, there will be a statement on personal independence payments later this afternoon. In the past six years, we have seen a significant increase in real-terms spending on the disability living allowance and PIP. We also need to ensure we have a productive economy that creates wealth in the first place. I make no apologies for our wanting to have a competitive tax system.

Tax Avoidance and Multinational Companies

Debbie Abrahams Excerpts

Wednesday 3rd February 2016 Commons Chamber

[Roger Mullin]

Yes, full of IKEA furniture.

It has been claimed by Oxfam, although I have not checked this out, that 98 of the FTSE 100 companies have subsidiaries in tax havens. There is a wider ethical question to address. This is not merely about how international corporations may evade UK tax. Some countries are much more vulnerable than the UK. There are considerable concerns, as the hon. Member for Foyle (Mark Durkan) said, in the developing world. Some 30% of Africa’s wealth is held offshore. Research by the International Monetary Fund has found that developing countries lose $200 billion a year to tax avoidance—more than they get in all forms of foreign aid.

The UK needs to take a lead. Hopefully we will see that when the Prime Minister hosts the anti-corruption summit in May 2016, because the UK remains at the centre of a global network.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

It is three years since the Prime Minister promised to clamp down on tax evasion and to publish the details of UK-based companies and people in the overseas territories. Does the hon. Gentleman agree that the Prime Minister should fulfil his obligation? This is a manifesto commitment that he has failed to fulfil.

[Roger Mullin]

I agree with the hon. Lady, and hopefully the Prime Minister will fulfil that obligation in the conference that he will chair shortly. We shall wait and see.

I shall conclude with one other example that is close to the heart of the Scottish people: our historical links with Malawi. This week, ActionAid launched a new campaign, calling for the UK to negotiate a fairer tax treaty with Malawi. Every constituency in Scotland has strong historical links with Malawi. The UK tax treaty with Malawi was signed in 1955 when Malawi was under British colonial rule, and it limits the ability of the Malawi Government to collect tax revenue from UK firms that operate there, thereby preventing that poor country from raising money that it desperately needs.

It is right to hold a thorough investigation into the Google settlement, and we should press for greater transparency. We should also press the UK to take an international lead in addressing the corrupt tax avoidance practices of the many, and not just the few. Getting our own house in order would be a fine start.

Spending Review and Autumn Statement

Debbie Abrahams Excerpts

Wednesday 25th November 2015 Commons Chamber

[Mr Osborne]

There you go—Trident. That is the modern Labour party: it wants to get rid of our nuclear deterrent. Some Labour Members are now shaking their heads. May I make a polite suggestion? Why does not the Labour party sort out its policies and then come to the House of Commons and tell us what they are?

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I welcome the Chancellor’s announcement of increased mental health funding, especially as it follows a cut to the mental health tariff in the last Parliament. Given last week’s research findings, which showed a clear link between the Government’s own work capability assessment policy and an increase in suicides and other adverse mental health effects since 2010, how much of the increased funding will be spent on ameliorating the adverse effects of the Government’s own policies?

[Mr Osborne]

It is generally accepted across this House that mental health services in the NHS have not always had the support they need over many decades and that we have not always had equality of treatment in the NHS. We have now made that change in the constitution of the NHS. Today I have announced £600 million extra funding for mental health, on top of what was announced at the March Budget. That will help with access to talking therapies and to perinatal mental health services. I would have thought and hoped that the hon. Lady welcomed that.

Welfare Reform and Work Bill

Debbie Abrahams Excerpts

Tuesday 27th October 2015 Commons Chamber

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Natascha Engel)]

With this it will be convenient to discuss the following:

New clause 3—Personal independence payment: timing of payment—

‘(1) Schedule 10 of the Welfare Reform Act 2012 is amended as follows.

(2) In paragraph 1(1), at start insert “Subject to paragraph ( ),”

(3) At end of paragraph 1(1), insert the following new paragraph—

“( ) Where a person in receipt of disability living allowance meets the requirements of section 82 of the 2012 Act his or her entitlement to disability living allowance shall terminate immediately and entitlement to personal independence payment shall commence on the same day.”’.

This New Clause aims to enable claimants of DLA who are transferred to PIP due to terminal illness to receive their first PIP payment immediately after being transferred. Currently claimants must wait four weeks from their final DLA payment to be made and then another four weeks to receive their first PIP payment.

New clause 4—Review of application of sanctions—

‘(1) The Secretary of State must before the financial year ending 31 March 2016 provide for a full and independent review of the sanctions regimes attached to working-age benefits, including but not limited to Jobseekers Allowance, Employment Support Allowance and Income Support, to determine whether they are effective and proportionate for meeting the Government’s objectives.

(2) The terms of reference for the review must include consideration of—

(a) the application of sanctions to lone parents with dependent children;

(b) the application of sanctions to claimants who are disabled;

(c) the effectiveness of sanctions in moving claimants into sustained work; and

(d) any other matters which the Secretary of State considers relevant.”

To provide for a full, independent review of the operation of the sanctions regimes attached to out of-work benefits, to determine the effectiveness of sanctions in moving claimants into sustained work as well as any adverse impacts on particular groups.

New clause 5—Report on impact of benefit cap reductions—

‘(1) The Secretary of State must publish and lay before Parliament before the end of the financial year ending with 31 March 2017 a report on the impact of the benefit cap reductions introduced by this Bill.

(2) The report must include an assessment of the impact on each of the measures of child poverty defined in the Child Poverty Act 2010.”

This new clause requires the Secretary of State to review impact of lower benefit cap after 12months.

New clause 7—Changes to the benefit cap—

Changes to the Benefit Cap shall not be made until the Secretary of State has carried out an assessment of the impact on its effect on poverty and laid a report before the House of Commons, The Scottish Parliament, The Northern Ireland Assembly and the National Assembly for Wales.”

New clause 9—Universal credit and carers—

Claimants in receipt of universal credit who are responsible carers for children are not subject to work focused interviews or work preparation requirements until their youngest child starts school.”

New clause 10—Changes to age of eligible claimants of housing benefit—

The Social Security Contributions and Benefits Act 1992 is amended as follows. After section 130(1) insert—

‘(1A) The Secretary of State shall not make provision about eligibility for housing benefit in respect of the age of a claimant except by primary legislation.”.”

New clause 11—Entitlement to housing costs element of universal credit for 18-21 year olds—

‘(1) Entitlement to the housing cost element of Universal Credit shall not be restricted for those 18 to 21 year olds who fall into the following categories—

(a) those who have previously been in work;

(b) a person who lives independently;

(c) those with a disability or mental health problem receiving Employment Support Allowance or Income Support;

(d) those with dependent children;

(e) pregnant women;

(f) those who are owed a rehousing duty under—

(i) section 193 of the Housing Act 1996;

(ii) section 9 of the Homelessness etc. (Scotland) Act 2003;

(iii) section 73 of the Housing (Wales) Act 2014;

(g) those who are homeless or at risk of homelessness who are being assisted by local authority housing teams;

(h) those who are living in statutory or voluntary sector homelessness accommodation;

(i) those who have formerly been homeless and have been supported by voluntary or statutory agencies into accommodation;

(j) those who have formerly been homeless between the ages of 16 and 21;

(k) a person without family or whom social services have found that a home environment is not suitable for them to live in; care leavers and

(l) those leaving custody.

(2) Within three months of section [Entitlement to housing costs element of universal credit for 18-21 year olds] of this Act coming into force, the Secretary of State must, by regulation, provide definitions of—

“a person who lives independently”;

“risk of homelessness” and

“a person without family”.”

New clause 12—Review of application of sanctions—

‘(1) The Secretary of State must on commencement of this bill, commence a full and independent review of the sanctions regimes attached to working-age benefits, including but not limited to Jobseekers Allowance, Employment Support Allowance and Income Support , to measure the impact on—

(a) to lone parents with dependent children;

(b) claimants who are disabled;

(c) moving claimants into continuous work;

(d) homeless;

(e) protected characteristics;

(f) long term health conditions;

(g) claimants with mental health disorders and

(h) any other matters which the Secretary of State considers relevant.”

Amendment 35, in clause 6, page 8, line 39, leave out subsection (2)

Amendment 36, in clause 7, page 9, line 2, leave out “£23,000 or £15,410” and insert “£26,000 or £18,200”

Amendment 37, page 9, line 3, leave out “£20,000 or £13,400” and insert “£26,000 or £18,200”

Amendment 38, page 9, line 15, leave out paragraph (a)

Amendment 39, page 9, line 17, leave out paragraph (b)

Amendment 40, page 9, line 19, leave out paragraph (c)

Amendment 41, page 9, line 21, leave out paragraph (d)

Amendment 42, page 9, line 27, leave out paragraph (f)

Amendment 43, page 9, line 39, leave out paragraph (k)

Amendment 44, page 9, line 41, leave out paragraph (l)

Amendment 45, page 9, line 44, leave out paragraph (n)

Amendment 46, page 9, line 46, leave out paragraph (o)

Amendment 47, page 9, line 48, leave out paragraph (p)

Amendment 48, page 10, line 1, leave out subsection (6)

Amendment 56, page 14, line 15, leave out Clause 13

Amendment 29, in clause 13, page 14, line 26, at end insert—

‘(3A) The Secretary of State may not lay an order under section 31 to bring the provisions of subsections (2) and (3) into force until he has laid before both Houses of Parliament a report giving his estimate of the impact of those provisions on persons who would otherwise be entitled to start claiming the work-related activity component of employment and support allowance.

(3B) No order bringing subsections (2) and (3) into force shall be made unless a draft of the order has been laid before and approved by a resolution of both Houses of Parliament”.

Amendment 31, page 14, line 29, at end insert—

‘(5A) The Secretary of State must make provision for additional personalised and specialist employment support in connection with the changes made by subsections (1) to (3).

(5B) The Secretary of State must issue guidance on the following—

(a) the forms of personalised and specialist employment support;

(b) the means by which a diverse market of suppliers for personalised and specialist employment support can be developed in local areas; and

(c) information for local authorities seeking to improve local disability employment rates.”

Amendment 20, page 14, line 39, leave out Clause 14

Amendment 57, page 14, line 39, leave out Clause 14

Amendment 58, page 15, line 1, leave out Clause 15

Amendment 59, in clause 15, page 15, line 4, leave out paragraph (a)

Amendment 60, page 15, line 4, leave out paragraphs (a) to (c) and insert—

“(a) in section 19(2)(c) for the words “under the age of 1” substitute “who has not yet started primary school””

Amendment 61, page 15, line 9, after “2,”, insert “3 or 4”

Amendment 62, page 15, line 10, leave out paragraph (c)

Amendment 63, page 15, line 13, leave out paragraph (a)

Amendment 64, page 15, line 13, leave out paragraphs (a) and (b) and insert—

“(a) in regulation 91 (claimants subject to work-focused interview requirement only), for the word “3” substitute “5 or when the child starts primary school”;

(b) in regulation 91A (claimants subject to work preparation requirement) for the words “3 or 4” substitute “who has not yet started primary school”;”

Amendment 65, page 15, line 15, leave out paragraph (b)

--- Later in debate ---

[Debbie Abrahams]

It is a pleasure to be here on my first occasion at the Dispatch Box. On Second Reading I conveyed my concerns about the Bill, and after a few weeks in Committee I have not changed my opinion. I said then that I thought this is a wicked Bill, and I still feel that.

Amendments 56 and 20 seek to leave out clauses 13 and 14 so as to prevent cuts to the work-related activity component of employment and support allowance, and to the limited capability for work element of universal credit. We believe it is unjust and unfair that disabled people and those with serious health conditions who have been assessed during the work capability assessment as not fit for work and placed in the work-related activity group should have their social security support cut by nearly £30, from £102.15 to £73.10.

Compelling evidence from the independent Extra Costs Commission, which analysed the additional costs facing disabled people, shows that on average they spend an extra £550 per month on things associated with their disability. The Government’s proposed cuts to people in the ESA WRAG come on top of a host of other cuts to social security and support for disabled people since 2010. Demos has estimated that by 2018, £23.8 billion will have been taken from 3.7 million disabled people, with 13 policy changes in the Welfare Reform Act 2012.

The cut in the ESA WRAG comes on top of the freeze in other social security support and the £3.6 billion of cuts to social care. My hon. Friend the Member for Pontypridd (Owen Smith) has argued for a cumulative impact assessment of cuts to tax credits and other benefit reforms for working families on low incomes, as defined in new clause 2, but why has that not happened already? Why have the Government not undertaken a cumulative impact assessment of the latest proposed cuts for disabled people, given that it is a requirement under the Equality Act 2010? I raised that point in Committee, and although I am grateful to the Minister for her response, she implied that only one model can be used to analyse the distributional effects of a policy. That is a flawed judgment. The Equality and Human Rights Commission is somewhat surprised by the suggestion that such cumulative modelling is not possible, given that it is undertaking its own cumulative impact assessment. I understand that the commission has written to the Government and highlighted the resources that are available to help them do that work, and perhaps when she responds the Minister will enlighten the House as to whether the Government have changed their mind.

The Government have also failed to provide evidence to substantiate their claim that working families on low incomes will be better off in spite of having tax credits taken from them—for example, through the introduction of the new national minimum wage, changes to personal allowances, and extended childcare provision. The Government’s meagre offering of an impact assessment for clauses 13 and 14 has failed to provide reassurance that disabled people will not be subjected to serious financial hardship. Although the assessment estimates that approximately 500,000 disabled people and their families will be affected by the cut to the ESA WRAG, there is no analysis of the impact this will have on the disabled people who will be pushed into poverty.

[Ian Lavery]

I am not sure whether my hon. Friend was present about an hour ago, when the Minister suggested that it was a good idea for people in the work-related activity group to lose 30% of their benefits so as to move them nearer to employment. How ridiculous is that?

[Debbie Abrahams]

I entirely agree with my hon. Friend. In fact, I am going to move on to a section specifically concerned with incentivising work and how on earth people with, for example, progressive conditions can be incentivised.

[Richard Graham (Gloucester) (Con)]

I welcome the hon. Lady to her place. On the specific issue of trying to help people in the work-related activity group to get into work, does she agree that the current system is not working as well as it should and that we need to spend more money on helping them find jobs? It is harder for them to find jobs than it is for other people on jobseeker’s allowance. In answer to the point made by the hon. Member for Wansbeck (Ian Lavery), that is precisely why we should be transferring money into helping them to get jobs.

[Debbie Abrahams]

I thank the hon. Gentleman for his intervention, but his question belies the facts. Some £640 million is being withdrawn from people in the ESA WRAG, while £100 million is meant, in some undisclosed manner, to provide support. There is no information from the Government on how that will support disabled people back into work.

As I was saying, there is no analysis of the impact that this will have on the disabled people who will be pushed into poverty. Disabled people are twice as likely as non-disabled people to live in persistent poverty, and 80% of disability-related poverty is caused by their extra costs. Last year, there was a 2% increase in the number of disabled people who were pushed into poverty. That is equivalent to 300,000 people. The Minister’s recent reply to me did not address this particular point, so I would be very grateful if that could be explained. Half a million disabled people will be affected and lose £30 a week—nearly a third of their weekly income. What is the Government’s estimate of the increase in the number of disabled people who will be living in poverty?

[Neil Coyle]

I welcome my hon. Friend to her rightful place on the Labour Front Bench. Is she aware that in the other place Lord Low is going to carry out an independent review of poverty, in the absence of a Government study? Will she encourage the Government to interact with that independent review, in particular on poverty and the impact on higher health and local authority costs as a result of the reduction in ESA?

[Debbie Abrahams]

My hon. Friend makes some excellent points. The Equality and Human Rights Commission is able to undertake that analysis. Other bodies and organisations are doing it, so why are the Government not able to do it? Surely this is what we should expect from the Government in their implementation of policy. There are real concerns from disabled charities, disabled groups and Lord Holmes, the chair of the EHRC’s disability committee, about the extent to which the assessment of the impact on disabled people is understood.

On incentivising work, on Second Reading the Secretary of State for Work and Pensions stated:

“the current system discourages claimants from making the transition into work.”—[Official Report, 20 July 2015; Vol. 598, c. 1259.]

What about people with progressive conditions, such as Parkinson’s, multiple sclerosis and motor neurone disease, who have no prospect of recovery but have undergone a work capability assessment? They have been found not fit for work and placed in the WRAG group. Are the Government seriously saying that the measure will incentivise this group of disabled people into work? They have already been found not able to work through the Government’s own assessment process. Their progressive conditions are not going to change. This is a real concern.

[Mr Anderson]

I welcome my hon. Friend to her position on the Front Bench. As chairman of the all-party group on muscular dystrophy, I would like to tell her that information shared with me suggests that people across the whole field of disability believe that this measure will actually have the opposite effect from the one intended. Rather than providing an incentive for people to go to work, it will mean that they will struggle to continue to have the independence they need. This £30 deduction will make a big difference: people will wonder whether they can afford to maintain their mobility, which will have a detrimental effect, making it less likely that they will find work than if they are left where they are now.

[Debbie Abrahams]

My hon. Friend makes an entirely valid point. Disabled people will find it more and more difficult to live fulfilling lives that enable them to make contact and fulfil their potential, which everyone should have the right to do, so it will be a disincentive.

[Simon Hoare]

I am chairman of the all-party group on multiple sclerosis. I entirely understand the hon. Lady’s concern and, indeed, the sort of representations made by the hon. Member for Blaydon (Mr Anderson). However, does she take heart, as I do, from the fact that Ministers are part of a party that brought forward pioneering legislation on disability rights, which should provide comfort that Ministers on the Treasury Bench will make sure that no policy will leave people behind?

[Debbie Abrahams]

Yes, it is right to acknowledge the Government’s role in bringing in the Disability Discrimination Act 1995, but this Bill flies in the face of that legacy. I really hope that by the end of today, the Government will be able to provide some reassurance, because to date there has simply been none for disabled people.

In Committee, the Minister said that these cuts would not affect people currently on the ESA WRAG, but does that mean that people diagnosed with progressive conditions, but assessed after the Bill is enacted, will be deemed to have a different form of the progressive condition? Will they require less support, or do the Government finally accept that, apart from being dehumanising and exacerbating people’s health conditions, the work capability assessment is not fit for purpose and needs a complete overhaul so that people with progressive conditions are not placed in the ESA WRAG? I would really appreciate some clarity on that point.

Surely if the Government were serious about supporting disabled people into work, there would be measures in place to support into work those disabled people who are able to work. How many employers will be engaged? Although the Disability Confident scheme is a good first step, only 68 employers are currently active in it, and they will certainly not be able to support the 1.3 million disabled people who are able to and want to work. Do the Government intend to extend Access to Work beyond the 35,000 disabled people it helped stay in work or into a new job last year? What is going to happen about the appalling ratio of one disability employment adviser for 600 disabled people? [Interruption.] What estimates are there of the impact on the employment of disabled people of this measure and the reduction of the 30% disability employment gap?

[Helen Goodman (Bishop Auckland) (Lab)]

My hon. Friend has just said the most astounding thing I have heard in this Chamber for a very long time. There is one work adviser for 600 people. In the course of a year, I wonder whether each person would get some attention just once. Has there been any assessment of the absurdity and ineffectiveness of this situation, as contrasted, of course, with the marvellous suggestions we heard a short while ago from the hon. Member for Gloucester (Richard Graham)?

[Debbie Abrahams]

That figure was revealed through the work done when I sat on the Select Committee. Yes, it is shocking. Some are trying to say that this Bill is about encouraging people into work, but there are no measures in place to support it. Indeed, my next point is—where exactly is the “work” bit in this Welfare Reform and Work Bill? Here we are on Report, and these basic questions have still not been answered. All we know from the Government’s impact assessment is that by 2020-21, approximately £640 a year will have been cut from social security support for disabled people—on top of the £23.8 billion of support that has already been taken from them—and that £100 million a year will be provided in unspecified support to help them into work. That is a disgrace; disabled people deserve much better.

--- Later in debate ---

[Simon Hoare]

Hitherto, the hon. Lady has been making a very thoughtful and considered speech. It may not be up to me, as a new Member, to say this, but the sentence that she has just uttered has fundamentally undermined the cause of her argument, and I invite her to reconsider it.

[Debbie Abrahams]

I appreciate that it is strong language, but I can only provide the hon. Gentleman with the evidence. In 2010, the use of the term “scrounger” by the mainstream press had increased by more than 330%, and it has remained at that level. We should always be mindful of the language that we use as leaders, and of how it is perpetuated.

[Ian Lavery]

May I advise my hon. Friend not to take any lectures from the team opposite when they are asking her to calm down in respect of her language against the disabled? Constantly, for the last five years, they have attacked disabled people, poor people and lower-paid people. No apologies are required.

[Debbie Abrahams]

I used that language to draw attention to the issue in the House, and more widely. I did so partly because I am sure I am not the only one to remember the autumn statement two or three years ago in which the Chancellor, at the Dispatch Box, referred to “closed curtains” when people were going out to work. It was quite clear what that implied. I use such language very carefully, and I repeat that its use in the media has increased by 330%. We all have a responsibility in this regard, including the country’s leaders.

The innuendo is that people with a disability or illness might be faking it or feckless. That is grotesque. As a former public health consultant, I speak with some knowledge. It is recognised that incapacity benefit and ESA are good population health indicators, and the release of the Government’s own data has proved the point. Disabled people in the ESA WRAG are a vulnerable group who need our care and support, and not our humiliation.

[Simon Hoare]

rose—

[Debbie Abrahams]

I will give way to the hon. Gentleman one more time.

[Richard Graham]

I invite the hon. Lady to come to the opportunities fair in my constituency on 6 November, which is specifically focused on helping people in the ESA WRAG category to find opportunities for getting back into work. It will be very similar in tone to the first Disability Confident fair we held a year ago, and I am sure she would want to encourage Members from all parts of this House to hold these events and champion people like that who are trying to find jobs.

[Debbie Abrahams]

In return, I ask the hon. Gentleman to ask his constituents who are on ESA WRAG how they will be affected by these proposals and whether they will have to cut back on such journeys and work fairs because of the cuts the Government are likely to impose. Up and down the country good work is being done to support people back into work, but this measure is not part of that.

[Several hon. Members rose—]

--- Later in debate ---

[Debbie Abrahams]

I am not going to give way anymore, as I am conscious of the time.

These cuts are punitive and wrong. They fly in the face of the Conservative party’s pledge to protect disabled people’s benefits. With this cut to ESA WRAG support, without putting in place anything to replace it, the Government are condemning more disabled people and their families to live in poverty. I predict that more tragedies will happen. I will be pushing our proposals to a vote and urge all Members to do the right thing by supporting the removal of clauses 13 and 14 from the Bill.

New clause 4 requires that the Government undertake a full independent review of their sanctions regime by 31 March 2016. It is with considerable regret that, after the Work and Pensions Committee’s report earlier this year, which also recommended an independent review of benefit conditionality and sanctions, the Government have failed to recognise the real concerns about their new sanctions regime, either in response to what was said in the Bill Committee or to that report.

I have been campaigning for an independent review of sanctions for nearly two years, and in that time constituents have come to me with their stories about how they have been sanctioned. One constituent was told while he was undergoing the work capability assessment that he was having a heart attack and should go to hospital, yet two weeks later he received a letter to say that he had been sanctioned. People up and down the country have also got in touch with their stories of how they have been sanctioned, for example, for being a few minutes late for an appointment with an adviser or work coach. Increasingly, people are being sanctioned unreasonably, for example, because they had attended their mother’s funeral, been hospitalised or gone to a job interview—this is absurd.

There was another category of reasons for being sanctioned. I still have the email from a constituent who had received a letter saying he had been sanctioned for non-attendance at a meeting with his adviser at the jobcentre, even though he had evidence that he had been there. The penny dropped when another constituent, who had worked in jobcentres across Greater Manchester for 20 years, came to me to tell me that as part of the new sanctions regime introduced at the end of 2012, the DWP had targets for sanctions. As he described it, claimants were being deliberately set up to fail, whether they had done anything wrong or not.

The Work and Pensions Committee also became concerned while conducting an inquiry in 2013 on “The role of Jobcentre Plus in the reformed welfare system”. At that stage, it recommended the following:

“DWP should launch a second, broader, independent review of conditionality and sanctions, to include investigation of whether the process is being applied appropriately, fairly, proportionately and in accordance with the rules, across the Jobcentre network.”

[Graham Stuart (Beverley and Holderness) (Con)]

I am concerned about the issue the hon. Lady raised about targets for sanctions, as this is a serious allegation to make and it is a serious issue. It is possible to meet people from all sorts of walks of life who through their profession may have some professional insight, but their word alone is not enough to suggest that something is true—one does need verification from elsewhere. Can she substantiate her point? What did she find out that would make us believe it is true?

[Debbie Abrahams]

The hon. Gentleman makes my point for me: that is why we need the independent review. There was enough evidence to leave real concerns about this matter. The Select Committee thought that the Minister had agreed to a review, but as paragraph 100 of the report states, unfortunately he reneged on that promise. In addition to these serious ethical issues, there were, and still are, concerns about a number of people affected, particularly in the case of ESA claimants, and about the meteoric rise in the use of sanctions.

[Peter Dowd (Bootle) (Lab)]

Does my hon. Friend recall that in the summer the Department for Work and Pensions was forced to admit to having invented quotes from fake benefit claimants, which meant that its sanctions leaflets had to be withdrawn pretty quickly?

[Debbie Abrahams]

My hon. Friend makes a valid point. That is one of the reasons why we need an independent review to investigate such matters.

[Graham Evans (Weaver Vale) (Con)]

I congratulate the hon. Lady on her new role on the Front Bench—she has done far better than me. When she and I served on the Work and Pensions Committee, we investigated this matter and found no evidence of benefit sanctions targets in the jobcentres we visited. I have two outstanding Jobcentre Plus offices in my constituency, and I have seen no evidence whatsoever of any targets there. How can she stand at the Dispatch Box and say that there are targets for sanctions when, to the best of my knowledge, there is no evidence that they exist?

[Debbie Abrahams]

I thank the hon. Gentleman for his kind remarks. I understand that his wife has previously worked in a Jobcentre Plus office. To reiterate my response to the hon. Member for Beverley and Holderness (Graham Stuart), the whole point is that there is some evidence and that we need a better understanding, which is why we need an independent review.

[Helen Goodman]

If there is to be an independent review, does my hon. Friend agree that it should take evidence from the National Audit Office, which has stated that although the targets might not come from the Minister’s office, the performance management of the jobcentres amounts to targets, because what it measures does not take into account the numbers of people who are supposed to go back into work or the quality of advice they receive?

[Debbie Abrahams]

My hon. Friend makes a valid point. The Select Committee reported on the fact that there are targets for off-flow, which means getting people off the books. Those in themselves are targets. [Interruption.]

[Graham Stuart]

That has nothing to do with sanctions.

[Debbie Abrahams]

Well, I will move on to that shortly and show exactly why we believe that is happening.

In addition to those serious ethical issues, we have also seen a meteoric rise in the use of sanctions. ESA sanctions increased from 60,363 between June 2010 and October 2012 to 245,679 between November 2012 and March 2015, which corresponds with the introduction of the new sanctions regime. As I have said, people on ESA are disabled or have serious health conditions.

The new sanctions regime is also particularly punitive. People are without financial support not just for a week or two, because the minimum sanction is now four weeks. Subsequent misdemeanours can mean up to three years of sanctions, whereas previously the maximum was six months. That has particularly affected young people, disabled people and lone parents. In addition, during 2013-14 it became clear that although no other benefits, such as housing benefit, were meant to be affected, in some cases housing benefit was automatically being stopped. The obvious implication is that families will be getting into debt as a result.

The fact that since January 2014, on average, nearly half of ESA sanctions have been overturned on appeal surely confirms that there are issues with sanctions policy and practice. The Work and Pensions Committee published its report in March this year, revealing even greater concerns about the inappropriate use of sanctions, their ineffectiveness in getting people into work and the impact on the health and wellbeing of claimants.

The Select Committee received evidence that sanctions were being driven by targets to get claimants off-flow in a way that distorted the JSA claimant count. A team from Oxford analysed data from 376 local authority areas and found that 43% of JSA sanctioned claimants left JSA and that 80% did so for reasons other than employment. In July, the Social Security Advisory Committee also raised concerns about the effectiveness of the sanctions regime in getting people into good quality jobs, and called for better evidence to underpin sanctions policy.

--- Later in debate ---

[Helen Goodman]

Exactly. It is a long-term problem.

[Debbie Abrahams]

Absolutely.

Similarly, there are concerns about the impact of the benefit cap on disabled people, who already face extra costs associated with their disability, as I mentioned earlier. It is estimated that 150,000 adults and 395,000 children will be affected by the reduction in the cap. We believe that, in conjunction with the freeze in local housing allowance, cuts in social housing rents and a lack of affordable homes, the lower cap also risks exacerbating the housing crisis. The Government’s own impact assessment concedes that rent arrears, evictions and homelessness will increase as a result of the lower cap. We believe that further reductions in the benefit cap in London and elsewhere risk pushing tens of thousands of children, families and disabled people into poverty. We are the sixth wealthiest country in the world. It is not right that the Government are seeking to secure the recovery on the backs of the working poor, their children and disabled people. I hope they will think again.

[Graham Stuart]

I, too, would like to congratulate the hon. Member for Oldham East and Saddleworth (Debbie Abrahams) on her new position.

I want to speak narrowly to new clause 3, tabled by the hon. Member for Sheffield Central (Paul Blomfield). The new clause would amend the regulations that currently mean that a claimant who is moved from the old disability living allowance system to the new personal independence payment award must wait 28 days after a decision before receiving the new benefit. Those regulations allow a claimant who is moving to a lower award to adjust to their new financial circumstances by receiving the old award for a period of time, which is extremely welcome.

The unintended consequence of the regulations, however, has been that some of the most disabled and vulnerable people in our society, including those who are terminally ill, are being forced to wait almost a month, and sometimes longer, to receive the extra money they need to meet the costs resulting from their illness. That situation most commonly affects individuals who have become entitled to additional money through PIP because their diagnosis has become terminal.

I am grateful to Macmillan Cancer Care for the work that it has done in this area. Let us imagine a cancer patient, who is already receiving some support under the old DLA system because of their illness, and who receives a terminal diagnosis. They inform the Department for Work and Pensions about this, and the Department makes a decision about their eligibility for additional financial support as a result of their terminal diagnosis. I am pleased to say that that decision should be made within six days—a target timescale that was introduced precisely in recognition of the fact that those who are terminally ill are in particular need of timely assistance.

Welfare Reform and Work Bill (Seventh sitting)

Debbie Abrahams Excerpts

Tuesday 13th October 2015 Public Bill Committees

[Damian Hinds (East Hampshire) (Con)]

The amendment seeks to delay the Government’s proposed changes to the family element of child tax credit until April 2022. The Government were elected on a mandate to reduce the deficit and restore order to our public finances. As part of the plan to get us into surplus and to continue the progress made in the previous Parliament, the Government have committed to making a further £12 billion of welfare savings.

To set the scene, the most recent statistics show that, in 2011, the level of UK expenditure on family benefits was the second highest out of the 34 countries in the OECD and almost double the average. Child tax credits are there, of course, to provide support to low-income families to help them with the costs of raising children.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

Will the Minister clarify those figures? Are they in terms of percentage of spend to GDP or absolute figures?

[Damian Hinds]

The OECD has done a survey based on percentage of spend to GDP. The hon. Lady has not asked this question but let me clarify further: it takes together family benefits, cash benefits, tax breaks and childcare. Of course, the mix is different in different countries. Nordic countries tend to spend more on direct childcare and Anglophone countries tend to spend less on that but put more into tax breaks. Our country has tended to spend a little bit more on cash benefits and on childcare.

As I said, child tax credits are there to provide support to low-income families to help them with the cost of raising children, but the system has grown unsustainably—a family with three children that earns up to almost £40,000 could still be eligible for some support. The previous Labour Government let public spending on tax credits rocket out of control so that, in 2010, nine out of 10 families with children were eligible for tax credits. That was not targeted support for low-income families.

--- Later in debate ---

[The Chair]

Just before I call Debbie Abrahams, a number of colleagues have been using the word “you”, which of course refers to the Chair, when they really mean the hon. Gentleman or the Government. I say that to all my colleagues, both experienced and inexperienced. It is an easy mistake to make.

[Debbie Abrahams]

It is a pleasure to serve under your chairmanship, Mr Streeter. This is the first opportunity I have had to speak as the shadow Minister for Disabled People, so if you will allow me, I would like to start by paying tribute to my predecessor and friend, the hon. Member for Stretford and Urmston (Kate Green). She did a fantastic job, not just in this Bill Committee but in the past in this role and her mantle is going to be hard to take up.

I want to add my voice to what my hon. Friend the Member for Islington South and Finsbury has said. The tax credit provisions in the Bill are pernicious, and these elements are particularly callous and unjust. We are seeking to try to exempt families with disabled children from their impact.

Those who have spoken to parents and carers with disabled children will know that there are additional costs associated with raising disabled children. Contact A Family’s “Counting the Costs” report found that families with disabled children are more likely to be living in poverty than other families and that it costs three times as much to raise a disabled child. Families with disabled children face considerable additional expenditure on heating, housing, clothing, equipment and other items compared with other families. My youngest daughter was diagnosed with asthma when she was very little. One of the triggers for her was the cold and we had to have our heating on all day and all night when she was little to try and avoid what often happened, which was that she stopped breathing. I have that personal experience and, fortunately, we were able to cope with the financial costs of additional heating, but that is not the case for many families.

Research over many years demonstrates a strong relationship between low income, social exclusion and disability among families who have a disabled child. As the “Every Disabled Child Matters” campaign has said, childhood disability is frequently a trigger event for poverty, as a result of additional costs, family break-up and unemployment following the birth or diagnosis of a disabled child. As I said, disabled children are also at a high risk of poverty as a result of low household incomes. Many parents of disabled children are unable to work because of care responsibilities and the lack of, or the cost of, appropriate childcare. I would be interested in the Minister’s response to the issue of providing appropriate childcare for disabled people because, within the proposed provisions, the Government have not been particularly explicit about how that relates to disabled children.

[Neil Coyle]

I welcome my hon. Friend to her new role. The Minister has already mentioned a commitment to providing 30 hours of childcare, but at no point have the Government provided any information on how it will be assessed and whether parents can genuinely access that level of childcare, in particular the parents of disabled children. Would my hon. Friend welcome the Government clarifying whether childcare is genuinely accessible, particularly for parents of disabled children?

[Debbie Abrahams]

My hon. Friend makes a valid point and I would be grateful if the Minister could address it in his response.

Barriers to work are created by the stress of caring, often with no support. I am thinking again in the context of the £3.6 billion of cuts in social care, which also affect disabled people. When people do not have that support enabling them to work, it can build difficulties into family relationship. It is not clear in the impact assessment whether an assessment has been done on the likely increase in poverty of families with disabled children.

For example, what is the increase in NHS admissions predicted to be? I have mentioned my daughter who has asthma. The implication is that there will be other families in similar circumstances. Is there any prediction of an increase in family breakdown? We cannot be in a situation where, potentially, the Government are arguing that the measure will balance the books when it is really about cost-shunting from one Department to another. What assessment has been done on that?

We do not believe that disabled people, their families and their carers should be subject to further cuts and therefore seek to exempt households with one or more disabled children from the provisions on both child tax credit and universal credit. The Government and the social security system rightly recognise the additional costs of raising disabled children but the provisions in clauses 11 and 12 seem to be at odds with that. I oppose them absolutely and in their entirety. At the very least, the effect of the provisions should be mitigated for households with a disabled child and I urge all members of the Committee to do the right thing and support the amendments.

[Emily Thornberry]

Might I rise again? It is entirely my mistake but I realise that I spoke just to amendments 83 and 84 and not to new clause 16. Would it be convenient for me to do so now?

National Insurance Contributions (Rate Ceilings) Bill

Debbie Abrahams Excerpts

Tuesday 15th September 2015 Commons Chamber

[Harriett Baldwin]

My remarks will be so short that hon. Members will need to intervene quickly with their points of clarification on this five-clause Bill. The hon. Lady will be aware that in the summer Budget the Chancellor announced that we are asking the Office of Tax Simplification to look at class 2 and class 4 contributions. We are expecting that consultation, which opened on 21 July, to inform the Budget next year. She asks a sensible question and I welcome her curiosity.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

Can the Minister clarify what assessment she has made of the number of self-employed people who may apply for an exemption from paying class 2 contributions, especially as at least half of the increase in employment is self-employed people and, on average, self-employment incomes have fallen to less than £10,000?

[Harriett Baldwin]

We are very pleased that we are backing those who want to take a chance, start their own business and become self-employed. In fact, we have taken measures in previous Budgets to simplify the process so that self-employed people can consider making those contributions alongside their self-assessment.

--- Later in debate ---

[Harriett Baldwin]

I thank my hon. Friend for making that excellent point. The Government want to back small businesses, entrepreneurs and those who want the certainty over the next five years that if they employ four people on the new national living wage, they will not have to pay any national insurance because of the employment allowance.

[Debbie Abrahams]

May I press the Minister on the point I made in my earlier intervention, which she did not actually answer? What assessment has she made of the number of self-employed people who earn so little that they could apply for an exemption from class 2 national insurance contributions?

[Harriett Baldwin]

When one starts out in business, it is often the case that one earns a small amount, but it is those fantastic people who start businesses, often at their kitchen table, whom the Government are trying to back with the measures in the Bill, which will give them a certainty that they would not have if Labour were in charge.