Food Banks
Derek Twigg Excerpts(12 years, 1 month ago)
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Derek Twigg (Halton) (Lab)
On a point of order, Mr Speaker. Is it a discourtesy to the House that the two Work and Pensions Ministers who have responsibility for this debate have not been in the Chamber for some time, and neither has any DEFRA Minister, even though the debate is on food banks?
Mr Speaker
The organisation of the Bench rota by the Government is a matter for Ministers to decide. I note that the hon. Gentleman regards it as unusual, and that view might be widely shared, but it is not within the power of the Chair to change the situation, even if the Chair were minded to do so. It is beyond my physical powers. Perhaps we can leave it at that.
Dame Anne Begg
My hon. Friend, like me, has been lobbied by a number of organisations saying that failures in the benefit system are causing much of the increase in food bank use.
If the use of food banks were just a passing phase born out of the global banking crisis and the recent years of austerity, we would not be seeing their growth in places such as Aberdeen. If their use is temporary, why is it still growing when the Government say that the economy is picking up? If their use is nothing new, why are more families depending on food parcels than at any time in history?
Mr Godsiff
I thank the hon. Gentleman for his comments, and I am aware of those facts.
In my constituency, the Sparkhill food bank feeds hundreds of people every week. I want to share with the House the comments of somebody who has used that food bank. She is a young lady who lives in the Moseley area of my constituency. She says:
“This time last year I was working full time in a well-paid job but lost my job. I found temporary work that ended in February this year. I also suffered bereavements and the breakdown of my long term relationship and ended up in receipt of benefits. I got into debt with all my utility bills and most of my JSA was used to pay npower and Severn Trent Water.”
Derek Twigg (Halton) (Lab)
I have been told by the food banks in Widnes and Runcorn in my constituency that they are seeing an increasing number of people without gas or electricity, which means that the food they can supply is inappropriate. They are now having to consider what type of food they provide. It is not a matter of what is donated but of what people can use.
Mr Godsiff
I agree exactly with what my hon. Friend says.
My constituent goes on to say:
“At my lowest I was living off £5 per fortnight…I eventually sought help and was referred to fantastic local charities who helped me deal with my debts and in turn referred me to Sparkhill Foodbank. I will never forget going to the foodbank, it was a humbling experience and I spent 40 minutes crying as I was so ashamed but the workers at the foodbank were fantastic and put me at ease whilst assuring me that my circumstances were not my fault and in no way a reflection of me as a human being.”
She then says:
“Luckily my circumstances are going to change for the better very soon as I have recently found a job…but I will never forget the kindness of strangers who helped me fill my belly in England in 2013.”
The Government ought to be ashamed of presiding over a situation in which such people must go through what that young lady, who is not feckless or a shirker, has had to experience. At the end of the day, lives will be scarred by the humiliation of forcing people into food banks—not just the lives of those individuals, but the lives of their children, too. Whatever the Government say, their MPs should be ashamed of that.
Housing Benefit
Derek Twigg Excerpts(12 years, 2 months ago)
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Steve Webb
I am grateful to the hon. Gentleman for raising the flexibility of the housing market because to hear Labour Members one would imagine the market was static. When they talk about the availability of one-bedroom properties—someone said a moment ago that there were 10 available or something—those are empty one-bedroom properties. If one looks, for example, at social housing swap websites, significant numbers of social tenants are looking to free-up small properties and exchange with those looking for family-sized accommodation. There is plenty of evidence of fluidity. Tens of thousands of social tenants move house every year; this is not a static market.
Derek Twigg (Halton) (Lab)
The Minister said that we are ignoring the potential benefits of his policy on overcrowded accommodation. Will he tell the House why his amendment includes the words “potential beneficial impact” and say how many people have been helped to date?
Steve Webb
I am pleased to hear the hon. Gentleman refer to overcrowding, because strangely that was an omission from the Labour motion. It is almost as if the voice of the overcrowded has not been heard. To give him a sense of scale, based on the English house condition survey we estimate that more than a quarter of a million households in social accommodation are overcrowded. Census data, which offer a different definition, suggest there are getting on for 400,000 overcrowded households. The research the Government are undertaking as the policy is rolled out will monitor the extent to which people are trading down and moving from overcrowded accommodation, and the extent to which they take jobs, take in lodgers or use discretionary housing payments. People can respond to the policy in a whole raft of ways, but the idea that we can have hundreds of thousands of people in overcrowded accommodation while there are free spare bedrooms does not seem fair.
Derek Twigg (Halton) (Lab)
There is no doubt that the bedroom tax is a brutal, callous and unfair policy that affects some of the poorest and most disadvantaged people in our communities, not least those who are disabled. They have been forced into arrears and further debt, and forced to go to food banks. The policy is having a major effect on many people in our communities.
I want to address some of the points that Government Members are using to justify what they are doing, such as the cost. We do not know whether the cost savings are achievable. Some hon. Members argue that they are not, but there is a great deal of doubt. For instance, the Government would have to take account of the £65 million increase in discretionary housing payment budgets that has already been set aside for 2013-14; the additional costs of fitting aids and adaptations for disabled tenants who move; the significant additional costs to housing associations that face increasing rent arrears, re-let times, rent collection and tenant support costs, and the impact of lost development capacity, at a time when the Government are trying to drive increased supply; and the additional indirect costs to other public services, such as homelessness, health, social and advisory services, of coping with the knock-on effects and consequences of tenants moving or accumulating debt. All need to be taken into account, which undermines the Government’s case for savings.
The Government’s amendment mentions
“the potential beneficial impact of this policy on those living in overcrowded accommodation”.
It is worth noting the word “potential”. I asked the Minister to provide figures, or any evidence, to justify the claim that there would be a significant “beneficial impact”, but he was not able to do so.
Government Members have been talking all afternoon about the private rented sector. It is important to understand the difference between sectors, and it is clear that some people do not. The method for calculating housing benefit in the private rented sector is local housing allowance, which is entirely different. It is a fixed allowance paid depending upon household size and circumstances, with no reference to the size of home occupied. A tenant can choose to use the fixed allowance to under-occupy a larger home in a lower-value area without any reduction in benefit. Rents in the private rented sector are not regulated. It is necessary to impose tighter benefit restrictions to curb excessive market rents. Social rents are regulated and are approximately 40% lower. The private rented sector performs a different role from the social rented sector, as hon. Members have made clear. In general, it provides shorter-term accommodation for younger households. Some 28% of household heads in the private rented sector are over the age of 44, compared with 60% in the social sector. That is a significant difference. What is being asked for is a retrospective change.
The Government’s brutal changes are affecting real people in my constituency. I spoke to Mrs Knight on Saturday morning. She has had adaptations throughout the house to ease difficulties that her husband is experiencing: a walk-in shower, a bio bidet, a wheelchair access door leading outside, hand rails on the doors, a drop rail in the bathroom, a rail fitted to the bed, raisers on the seat, and a through-floor lift into the bedroom. They are losing a significant amount of money—£700 a year. They have lived in the house for 29 years and brought up their family in it.
Chris Ruane
My hon. Friend has just given a comprehensive list of the improvements made to his constituents’ home. If they move to other accommodation, will the council have to pay again to put in those facilities again?
Derek Twigg
As usual, my hon. Friend makes an important point. Of course the council will have to pay again, and it is significant expenditure.
What about large families that have split up, where some of the children stay with their father for three or four days a week but he has been hit by the bedroom tax? How is that helping families? How does that help parents to stay in touch with their children? The excuse given by the Minister at the time was that it would depend on who had responsibility for the children, but it is causing problems for families.
What about a single man who has lived in a house all his life and has recently become unemployed, finding himself having to live on £70-odd a week and trying to find the difference for the bedroom tax? We talk about the discretionary payment system, but they are temporary payments and finding a job in my area is not easy.
In response to a question I put to the Prime Minister earlier in the year, he said:
“Let me be clear…pensioners are exempt, people with severely disabled children are exempt and people who need round-the-clock care are exempt.”—[Official Report, 6 March 2013; Vol. 559, c. 949.]
That turned out not to be true and I challenged the Leader of the House on it the following day. On the Monday, the Government dropped their appeal to overturn the decision of the Supreme Court on the exclusion of disabled children. People with a disabled child and two spare bedrooms are hit by the bedroom tax. When universal credit comes in, pensioners with one person in the household under the pension age will be hit by the bedroom tax. Disabled people, unless they have a full-time or part-time live-in carer, are not exempt. Disabled people whose family members or friends are supporting them are not exempt. This is a terrible policy. It needs to be changed quickly.
Universal Credit
Derek Twigg Excerpts(12 years, 5 months ago)
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Mr Duncan Smith
My hon. Friend is exactly right. All our reforms—reducing the workless numbers and ensuring that the economically inactive are going back to work, saving money for the Exchequer and for taxpayers—are in play. Every one has been opposed by the Opposition and we have had no answer about what they would do instead. As my right hon. Friend the Minister for the Cabinet Office and Paymaster General has said, they dance around on all the issues and the truth is that they have no policy. The welfare party is bankrupt.
Derek Twigg (Halton) (Lab)
Under the section of the report containing the key findings, paragraph 18 states:
“Throughout the programme, the Department has lacked a detailed view of how Universal Credit is meant to work.”
Will the Secretary of State explain how that happened? Does it not show that he lost control of the project from the very beginning?
Mr Duncan Smith
The original plan to have an “Agile” process meant that by 2011 the plan would be formulated and could be delivered against. In 2011, I was concerned about the failure to deliver—that was meant to be part of the process—and that is why I instituted the changes in 2012. We will have that plan ready. It will be announced to Parliament, it will be stuck to and it will deliver in time and on budget, so the NAO is right and I fully agree with it.
Remploy
Derek Twigg Excerpts(12 years, 7 months ago)
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Derek Twigg (Halton) (Lab)
On Monday, I asked the Minister how many disabled people stayed in a job after 12 months. She said:
“Of the nearly 13,000 people who have started on Work Choice, a third—30%—have stayed in work.”—[Official Report, 1 July 2013; Vol. 565, c. 595.]
Given that many disabled people have been employed for 12 months, has she assessed why 70% of them are not staying in work long term?
Esther McVey
The hon. Gentleman makes a good point. We are looking at that, at what we can do and at the best way forward. That is why we have a brand new, two-year specialist disability employment strategy, which will start later in July, to see what is the best support we can give to those people.
Oral Answers to Questions
Derek Twigg Excerpts(12 years, 7 months ago)
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Esther McVey
I congratulate my hon. Friend on the work she is doing. Employers have the jobs and young people want those jobs, so getting them together is key. That is precisely what we will be doing when we launch our new employment strategy: getting together all the FTSE 100 companies, SMEs and young disabled entrepreneurs so that they can employ people and share best practice.
Derek Twigg (Halton) (Lab)
The Minister has mentioned programmes that help disabled people get into work, but how many of those people remained in work 12 months after they got a job?
Esther McVey
Of the nearly 13,000 people who have started on Work Choice, a third—30%—have stayed in work. That situation has improved, but we want to do more, so we are starting the “disability confident” campaign, which will, we hope, help to achieve better outcomes.
Jobseekers (Back to Work Schemes) Bill
Derek Twigg Excerpts(12 years, 10 months ago)
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Derek Twigg
New clause 1 presents an opportunity. I congratulate my right hon. Friends on the Opposition Front Bench on getting it agreed with the Government, but of course there are weaknesses and flaws that my right hon. Friend the Member for Wythenshawe and Sale East (Paul Goggins) has outlined.
There are genuine concerns, based on constituency surgeries, telephone calls and e-mails, about people being wrongly or unfairly sanctioned. I quoted a case in which the benefits of a constituent who attended the funeral of a brother were stopped. I contacted the DWP and got that changed, but it should never have happened. There are other cases that cause great concern. People who can work should work, and should be helped to do so. Clearly, it would help if there were more jobs around for people to get into work in the first place. That is an issue in areas such as mine and elsewhere, but if someone persistently, and for no good reason, refuses to take a job or look for one, sanctions should apply. However, in a number of instances sanctions are being operated unfairly.
Mental health is a matter of particular importance. We say a lot on the Floor of the House about how we want to support better those who suffer from mental health problems, and how the system should take the issue more seriously. From the evidence that is presented to me in the surgeries in my constituency, this is one area where the decisions taken to sanction people are particularly hard. Mental health affects a range of people, but particularly young single men. I have concerns about how the system works, and how those with mental health issues are sanctioned and given penalties. It is important that the review process takes this serious matter into consideration, and the Government need to provide some impetus to that.
I visited a food bank in my constituency recently. There are a growing number of single men using the food bank—they are struggling to survive. There are referrals from jobcentre plus for people who need food to be able to continue. It is a concern that people who have no money are receiving penalties. What do the Government think should happen then, particularly for those who have mental health, family or social problems? The hon. Member for Beckenham (Bob Stewart) made a point about illiteracy. In the poorer areas of the country, in constituencies such as mine, there are still significant problems relating to illiteracy, because people have poor reading or writing skills, or perhaps cannot read. That impacts on people’s ability to interact with the system and unfairly works against them. Whether they are former soldiers or other people, it is a problem that has not been properly addressed. I hope that the review will consider that as well.
I am concerned about the time scale, which is why I put my name to the amendments tabled by my right hon. Friend the Member for Wythenshawe and Sale East. I accept what the Minister said—that this has to be done properly—but I see no reason why an interim review could not be carried out. We need to get to the bottom of this, because every day people are being unfairly penalised. We need to look at the system and get it changed as quickly as possible. The terms of reference of the review are also crucial, so I hope that the Minister will bear it in mind, when the Bill goes to the Lords or on another occasion, that we need to see, and have some input into, the terms of reference. I feel strongly that the review will be an important part of our consideration of the whole system.
I hope that the Minister will consider those problems. We are here because the Government got the legislation wrong, as they have got it wrong elsewhere on welfare—for example, we know of disabled children whose families are affected by the bedroom tax, on which the Court of Appeal ruled. The Government are getting these things wrong, and the most vulnerable people in our society are suffering as a result of the mistakes in the Government’s welfare policy. I hope that they will reconsider some of these issues and how they want to proceed.
Andrew Miller (Ellesmere Port and Neston) (Lab)
I want to begin by commenting on the remarks made by my right hon. Friend the Member for Wythenshawe and Sale East (Paul Goggins) to the hon. Member for Beckenham (Bob Stewart), whom I have known for 20 years, since he returned from Bosnia with the Cheshire Regiment. People whom he and I know personally are among those described today. The soldiers damaged by the dreadful events that he recorded in his well-known book are real people, and some of them live in my constituency. They are the kinds of people on whom we should try to focus our humanity.
We must admit that there is an enormous lack of clarity in the regulations governing the system. That is the fault of successive Governments and has built up over many years, as things have got more and more complex. Faced with that complexity, someone with a learning difficulty or who is mentally scarred might respond illogically—I think, for example, of the person who leaves the envelope behind the clock in the hope that it will go away. We have to deal with this matter seriously, therefore, and separate those people from the people the Minister is rightly targeting—there is no dispute between the parties on that.
Jobseekers (Back to Work Schemes) Bill
Derek Twigg Excerpts(12 years, 10 months ago)
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Mr Hoban
I will touch on this in a bit more detail later, but we will appoint an independent reviewer to look at the way in which the sanctions regime works under the Bill and to report to Parliament; that is dealt with in new clause 1, which we will discuss later. The Secretary of State will lay the report before Parliament. The operation of the sanctions regime will be looked at within a 12-month period. If it could be looked at more quickly, that would be a good thing. That is one of the helpful products of the discussion between the two Front-Bench teams over the past couple of weeks. I hope that that gives Members reassurance on the nature of the review. I will come back later to the new clause, which will provide further reassurance.
In response to the judgment of 12 February, the Department laid new regulations, which came into force with immediate effect, so that we could continue seamlessly to mandate claimants to these vital back-to-work schemes. We have also written to everyone already taking part in the schemes to ensure their continued participation in schemes designed to help them to get back into work.
Derek Twigg (Halton) (Lab)
Could the Minister clear something up? Does he believe that the Court’s judgment is basically about a technicality, or was there a serious oversight by the Department? Many of my constituents think that there was a serious oversight.
Mr Hoban
No, there was not a serious oversight; the judgment was about a technicality. The High Court agreed that the regulations were satisfactory. It did not have a problem with the amount of detail in the regulations, whereas the Appeal Court did. I therefore believe that the judgment was about a technicality; it was about the amount of detail in the regulations. The Appeal Court thought that there should be more detail about the schemes. We felt, for reasons of efficiency and responding quickly to identify schemes that would help people to get back into work, that it was helpful to have some detail in the regulations but not as much as the Appeal Court wanted. To ensure that we could respond flexibly to the changing labour market and the changing needs of the unemployed, we designed the regulations in the way we did. We are seeking leave to appeal to the Supreme Court to continue to press that point about the amount of detail that should be in the regulations.
Mr Byrne
The hon. Lady raises an extremely important point, and that is why we have sought to ensure that the Bill includes our safeguards, which preserve the right to appeal with good cause, and the 13-month appeal window during which people can lodge objections to the sanctions regime. To answer the hon. Lady directly, I do believe that the DWP should be equipped with the power to issue sanctions. That general foundation has been in the hands of Ministers for more than a century. The new deal programmes and the future jobs fund that Labour put in place had sanctions attached to them—indeed, they were tightened by the Welfare Reform Act 2009—and I do not believe that those powers should be empty ones. However, nor do I believe they should be in the ether—in the hands of Ministers who have no obligation to put in place genuine back-to-work programmes that are better than doing nothing, unlike today’s Work programme.
Derek Twigg
Is there not evidence in our constituencies of people being taken off benefits for no good reason? For example, a constituent who was attending the funeral of a close relative had her benefits stopped. People with mental health issues, particularly young men, are kicked off benefit for no good reason.
Mr Byrne
My hon. Friend is absolutely right to flag that up. He will know that the DWP’s own guidance says that “good cause” for appealing against a sanction decision includes bereavement where the claimant was arranging or attending a funeral of a close relative or friend. That is why it is vital that we seek to protect these appeal rights in the Bill.
The ultimate test of whether a back-to-work programme is working is perhaps the one the Secretary of State set out when he spoke in Easterhouse all those years ago. He said that
“we need a jobs revolution. Every working-age adult capable of earning a decent living for themselves and their dependants must be helped to have the opportunity to do so”.
Since he took office, unemployment has increased in three quarters of the estates with the worst unemployment levels in Britain. It has not got better; it has got worse.
Welfare Benefits Up-rating Bill
Derek Twigg Excerpts(13 years ago)
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Mr Duncan Smith
I should remind the right hon. Gentleman that the claimant count was forecast to rise but has fallen throughout all those forecasts. I know it is inconvenient for the Opposition, who would rather unemployment rose than fell, but unemployment is falling. Many countries in Europe would give their eye teeth for the employment figures in this country.
Derek Twigg (Halton) (Lab)
On disabled people, paragraph 24 of the Secretary of State’s impact assessment, which has just been published, states:
“Nevertheless, despite this protection…those households where someone describes themselves as disabled, (under the DDA definition) some of whom will not be eligible for a disability benefit, are more likely to be affected than those where there is not a person”
in that category.
Mr Duncan Smith
There are two good reasons for that. First, families in which there is some disability are often more likely to include people who have claims on other benefits. Some of those will be affected by the change.
Mr Duncan Smith
No. That is exactly the reasoning behind what the impact assessment says. The second reason is that, as part of employment and support allowance, the support group is protected. However, people who are described in the terms of the Bill as qualified under the Disability Discrimination Act 1995 and are not in the support group will find that they will be affected by the 1% increase. Therefore, by and large, the benefits for those who are disabled and qualified as disabled, and for those in receipt either of support payments in ESA, disability living allowance or the premiums in many other benefits, are being uprated in line with inflation—[Interruption.] May I finish? The only benefit that is not being uprated in line with inflation is ESA for those not in the work-related activity group. Some of those with disability will be affected because many in their households will be on other benefits. That is the reason.
Mr Duncan Smith
I think I have dealt with that particular point and will move on—[Hon. Members: “No!”] All right, I will give way to the hon. Gentleman again.
Derek Twigg
I thank the Secretary of State for giving way, but I am not clear about what he has just said. Will he confirm his impact assessment, which states that
“despite this protection …those households where someone describes themselves as disabled, (under the DDA definition) some of whom will not be eligible for a disability benefit”—
this is the crucial point—
“are more likely to be affected than those where there is not a person who describes themselves as disabled”?
Does he agree?
Mr Duncan Smith
I have just told the hon. Gentleman that the reality is that someone in those households is more likely to be on benefits, but particularly ESA. Let me remind him and the Labour party that they introduced the changes to the work capability assessment and ESA. The Government inherited, modified and improved those measures, but they are part of the reason why that is in the impact assessment.
Mr Duncan Smith
No. I have dealt with the hon. Gentleman’s point. The truth is that the Labour party is not only against the Bill but against what the Labour Government introduced just before the last election and the work capability assessment. Labour Members have opposed £80 billion of changes and reductions in every single vote and every single motion. I have dealt with his point. They must decide what they are in favour of when it comes to reducing the deficit; otherwise, they will be a laughing stock.
Derek Twigg (Halton) (Lab)
The Bill is without doubt an attack on the living standards of those who are in work and on low or modest incomes, and of those who are out of work and on disability benefits. The Government have tried to paint those who are unemployed as lazy and as scroungers, but it is a fact that the Bill will definitely make people poorer.
The Government are trying to cover up their failures on the economy, and the Chancellor is now raiding working-age benefits and tax credits by a total of £6.6 billion by uprating them by 1% over the next three years—a real-terms cut. Meanwhile, the Government are giving 8,000 millionaires an average tax cut of £107,000—an average cut of £2,000 for every week of the year. In comparison, people on jobseeker’s allowance will see their benefit go up by 71p and people receiving the couples element of the working tax credit will see a maximum increase of 38p. Of course, the Secretary of State has admitted today for the first time that disabled people will also see cuts as a result of the changes made.
Ann McKechin (Glasgow North) (Lab)
I am grateful to my hon. Friend for making some strong points. Does he agree with me that one other group of people in our society who will be severely impacted by the change is children? We are going to see an increase in absolute poverty and relative poverty for children, which will take us back to the level we had over 10 years ago. It is wholly unfair that they should be prejudiced in this manner.
Derek Twigg
I agree with my hon. Friend, who makes a valid point, and I repeat that people, families, children will be made poorer by the Bill. The Secretary of State refused properly to answer a question about the disabled issue. He would not say how many disabled people would be affected, so that is a subject to which we will certainly return.
Of course another group of people who will be badly hit are women. Some 4.6 million women who receive child tax credit, including 2.5 million working women and more than 1 million women who are caring for children while their husbands or partners are in work, will be hit by this strivers’ tax. Even the Government’s own impact assessment, which we have just got, acknowledges that that will be the case—and it is a disgrace, if I may say so, that we received that impact assessment at such a short time before this debate. Those hit by the Government’s cuts include primary school teachers, nurses and, as we have heard, many members of our armed forces who today are fighting for this country. My constituents are increasingly suffering because of the rising cost of living. The costs of food, energy and fuel are crippling many families, who are having to decide whether to buy a decent meal or to heat the house.
Andy McDonald (Middlesbrough) (Lab)
My hon. Friend mentions primary school teachers and nurses. Does he acknowledge the figures in last Sunday’s edition of The Observer in which chief executives of a number of organisations, including children’s societies, Barnardo’s and the National Association of Citizens Advice Bureaux, showed that a single parent primary school teacher or a nurse with two children stands to lose £424 a year by 2015 while an Army second lieutenant with three children will lose £552 a year? Those are hardly people whom we should describe as “scroungers”.
Derek Twigg
My hon. Friend makes a strong point: many people in work are being hit, and many of them would not usually be viewed by members of the public as those likely to be hit by such changes. Many families on low incomes in my constituency are having great difficulty finding the money to feed their families properly—even to provide proper meals every day. We know that some children are going to school hungry. The problem is so bad in Halton that two food banks have been set up, and I believe that that is a regular feature in many poorer parts of the country. To add to that, of course, are the appalling changes to housing benefit and the unfair cuts to local government funding, including changes to the treatment of council tax support, which will greatly increase the suffering in my constituency and others where the poorest and the weakest will be the most badly hit.
Frankly, the Government’s approach to welfare reform is cruel and vindictive, with cuts hitting the most vulnerable the hardest. That is said even in the Government’s own impact assessment, which acknowledges that the poorest will be hit the hardest. It is a disgrace that this is happening. I have been contacted, like many MPs, by many constituents who have suffered badly under the benefits system, who have lost benefits or who have been denied them or treated badly. In many cases, these people are in despair and at the end of their tether. We have to deal with such cases—day in, day out. It is therefore important to link that with what is happening today.
There are, of course, people who exploit the system, and they should be dealt with severely, but the overwhelming number of people involved are honest and want to work where they can. In my experience, those who can work want to work. I have heard many tales of constituents applying for countless number of jobs, but getting nowhere because jobs are either very hard to find or do not exist. Despite what the Secretary of State said, many want full-time employment. Many are being pushed into part-time employment because there are no full-time jobs for them. The Government have no coherent policy for growth and jobs. That is why people trust Labour more on jobs and growth. We have given greater priority to job creation, which is why I support our jobs guarantee.
Derek Twigg
I will not, because I have already given way to two Members and others wish to speak.
Let me return to the Government’s decision to cut benefits. We should not forget the announcement in the June 2010 Budget that from April 2011 the measure of price inflation used for the uprating of benefits and tax credits would be the consumer prices index rather than the retail prices index. That will have a significant impact on benefit rates and on future real-terms cuts. So in addition to what is happening today, a major cut is already taking place. The long-term assumption of the Office for Budget Responsibility is that the annual increase in RPI will be 1.4 percentage points more than the increase in the CPI. That means that after 10 years, benefits will be worth 86% as much as they would have been had they continued to be uprated in line with RPI.
The House of Commons Library research paper on the Bill states:
“A decision to limit increases in benefits to below inflation for a sustained period is historically unprecedented. If inflation averages more than 1% over the three years, families claiming the benefits and tax credits affected will experience a permanent real terms reduction in the support they receive.”
It goes on to say that
“independent estimates of “Minimum Income Standards” suggest that current out-of-work benefit rates for people of working age are significantly lower than the amounts necessary for a minimum acceptable standard of living.”
We should never forget that a large number of those who receive benefits are being paid a very small amount of money, an amount that would surprise many people. It is not the case that the majority, or anywhere near the majority, are receiving massive sums. Members should go and talk to a young person who is unemployed, or a single mum, or a couple, and ask about the benefits that they are receiving—and now disabled people are also being hit by the Government’s proposals.
The Bill clearly constitutes a tax on those who work hard and a cruel, vindictive cut in the living standards of the poorest people in our society. The Government should hang their heads in shame, and that applies especially to the Liberal Democrats.
CPI/RPI Pensions Uprating
Derek Twigg Excerpts(13 years, 11 months ago)
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John McDonnell
Yes, I will deal with that point now. The Government’s decision to move from RPI to CPI was taken at an early stage after the election. It was basically a decision to make pensioners in those pension schemes pay for the economic crisis. That was the policy decision that the Government made. Thus, the very people who made no contribution to causing the crisis will now have to pay for it by cuts in their pensions—the one thing they hoped was secure in their lives. I view that as unacceptable by any standards of fairness and equity. As my hon. Friend says, it is incredibly short-term.
We know from surveys of existing contributors to pension schemes that the combination of significantly increased contributions and cuts in pensions payments means that many people are now questioning whether to remain in their pension scheme, while others are wondering whether to join it at all.
Derek Twigg (Halton) (Lab)
I congratulate my hon. Friend on securing this debate and tabling the motion. My Halton constituency is the 27th most deprived, and I know that my hon. Friend has deprivation in his constituency. Is it not constituencies like ours, where people living on low incomes strive all their lives to put some money aside for pensions, that are going to be impacted most by this draconian measure?
John McDonnell
Those most in need and those who saved the most will be the mostly greatly affected. My hon. Friend’s constituency, like mine, is a working-class constituency in which many people suffer from deprivation. They will now suffer that deprivation long into their retirement as a result of this measure.
To return to the point raised by my hon. Friend the Member for North Ayrshire and Arran (Katy Clark) about the impact on the stability of future schemes, it is quite clear that if fewer people are saving for their retirement, there will be a greater cost to the Exchequer as more people become dependent on means-tested benefits. Similarly, if fewer people are paying into the schemes, it will put those schemes at risk—thus thrusting many more on to state benefits. As I said, this decision is so short-term.
Welfare Reform Bill
Derek Twigg Excerpts(14 years ago)
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Maria Miller
I reassure you, Mr Speaker, that I will make the rest of my contribution very brief indeed.
The average weekly reduction is likely to be about £14. However, that is the average. Nearly 80% of claimants are under-occupying their accommodation by just one bedroom and will see an average reduction of about £12 a week. Working for just a few hours a week could help to meet that cost. The substantial investment that we are making in the Work programme and universal credit will ensure that people are supported in finding work, and that that work will pay.
We have listened to the concerns about the impact that these changes will have on specific groups, so we have committed to increase the budget for discretionary housing payments by £30 million from 2013-14. That additional money, which could help about 40,000 claimants, is aimed specifically at disabled people and accommodation for foster carers. We are working closely with a wide range of stakeholders to ensure that we have an effective implementation plan that will support tenants, their advisers and housing providers.
Ultimately, the country cannot afford to fund what is approaching 1 million spare rooms from the taxes of hardworking families, when those spare rooms could be used by other families who are living in overcrowded accommodation.
Derek Twigg (Halton) (Lab)
The chief executive of Halton Housing Trust has written to me. He states:
“Based on existing turnover of smaller accommodation it will take over seven years to re-house all of those households who are under occupying their current homes.”
He goes on to state that, in particular, it will affect
“homeless households and those leaving care.”
Does the Minister really think that that is fair?
Maria Miller
That is why we are already working with local authorities to ensure that they are well prepared for the changes. We have discretionary payments in place so that local authorities can take account of such problems. We reject the Lords amendment.
I will now move on to the remaining amendments so that I do not incur the wrath of Mr Speaker. The other Lords amendments in this group are minor and technical or simply clarify policy. They have already been announced and I do not intend to go into any further detail so that there is more time for Members to contribute to this important debate.