Personal Independence Payments

Diana Johnson Excerpts

Monday 4th June 2018 Commons Chamber

[Diana Johnson (Kingston upon Hull North) (Lab)]

I may have studied for my law degree a long time ago, but I certainly remember that a case is no longer ongoing when an appeal is withdrawn by one of the parties.

Would the Secretary of State like to explain why so many victims of the contaminated blood scandal who received DLA for life are now being refused the support that they so badly need under PIP?

[Ms McVey]

Just to clarify, I am talking about two specific cases today. Another case is ongoing, but we will not be talking about that because we are waiting for the decision. They are all linked together, but that is the difference between that case and the other two.

We must ensure that the right people are getting the support that they need, and more people are getting that support. We have a reconsideration process and an appeals process for anybody who wants to query why they are not getting support.

Oral Answers to Questions

Diana Johnson Excerpts

Monday 5th February 2018 Commons Chamber

[Alok Sharma]

Currently, 1.1 million young people—students—receive free school meals. If the policy that has been put forward as part of the consultation goes ahead—where there is an earnings threshold of £7,400—an additional 50,000 young people will benefit from free school meals.

[Diana Johnson (Kingston upon Hull North) (Lab)]

13. If she will make an estimate of the number of children who will no longer be living in poverty as a result of the roll-out of universal credit.

[Karen Lee (Lincoln) (Lab)]

15. If she will make an estimate of the number of children who will no longer be living in poverty as a result of the roll-out of universal credit.

[The Parliamentary Under-Secretary of State for Work and Pensions (Kit Malthouse)]

Both hon. Ladies are right to recognise the role that welfare reform is playing in alleviating child poverty. Work is the best route out of poverty, and universal credit strengthens the incentives for parents to move into and progress in work. However, it cannot be considered in isolation: it is a key component of a broader strategy to move Britain to a higher wage, lower welfare and lower tax society.

[Diana Johnson]

Owing to policies pursued since 2010, we now have 20,700 children in poverty across Hull, and food poverty and holiday hunger are growing, including, despite what the Secretary of State says, in working families. Will restricting free school meals in universal credit create a cliff edge and make the situation even more dire in the most disadvantaged communities?

[Kit Malthouse]

Undoubtedly, as my right hon. Friend the Secretary of State said earlier, children are five times more likely to be in poverty if they are in a workless household. The Government’s entire thrust is to get as many people into work as possible, and we would never contemplate anything that would get in the way of those kinds of incentives. As my hon. Friend the Minister for Employment said, nobody will lose out under the current proposals on free school meals; in fact, there might well be more recipients in the future.

PIP Back Payments

Diana Johnson Excerpts

Tuesday 30th January 2018 Commons Chamber

[Sarah Newton]

The Secretary of State has made it clear at the Dispatch Box that the figure is about 220,000 people. Some of the things that some Members of this place have said in the media are very disappointing, having both scared people and raised false hope.

[Diana Johnson (Kingston upon Hull North) (Lab)]

May I make one suggestion to the Minister about how she could do the decent and humane thing? She should passport all those affected by the contaminated blood scandal—having contracted HIV and hepatitis C—who were previously in receipt of DLA through to PIP at the higher rate. It should be a blanket passport.

[Sarah Newton]

I thank the hon. Lady for her question. It is really important that we remember what PIP is. It is a very modern, dynamic benefit, and it treats with parity of esteem physical and mental health and disabilities. No two people are the same and no two people’s needs are the same, so it is a person-centred benefit. It is really important that we remember that.

Private Sector Pensions

Diana Johnson Excerpts

Monday 22nd January 2018 Commons Chamber

[Ms McVey]

The Financial Guidance and Claims Bill, which we will be debating straight after this urgent question, deals with the advice and support that people can get in order to understand what options are on the table. That represents a positive move by this Conservative Government to allow people to control and understand their finances, because they need to know where to put their money and be assured that it will come back to them in a good pension.

[Diana Johnson (Kingston upon Hull North) (Lab)]

Further to the question asked by my hon. Friend the Member for Bishop Auckland (Helen Goodman) and in the light of Carillion’s board members rewarding themselves with bonuses while allowing the pension deficit to grow, does the Secretary of State agree that she needs additional powers to bring such executives to account for their corporate greed and irresponsible behaviour?

[Ms McVey]

The situation is being assessed at the moment, and what happened is being investigated. The regulator already has the power to look into anti-avoidance measures and enforcement, which could be utilised to do precisely what the hon. Lady talks about. Strengthening the regulator’s hand was in our manifesto, and we will be bringing that forward in the White Paper.

Work, Health and Disability

Diana Johnson Excerpts

Thursday 30th November 2017 Commons Chamber

[Mr Gauke]

First, I thank the hon. Lady for the work she does with the all-party group, and for her kind words about its engagement with my Department. She raises an interesting point about procurement. She will be aware that, when it comes to procurement issues, Departments and sectors very often have different asks, and the Cabinet Office obviously has to take a view. However, we are considering the issue, and I encourage all major companies, particularly those that have engagements with the Government, to look very carefully at what being a Disability Confident employer involves.

[Diana Johnson (Kingston upon Hull North) (Lab)]

Will the Secretary of State update the House on the progress made for people damaged by the state when they received contaminated blood products during the contaminated blood scandal, particularly in relation to passporting benefits to them so that they do not keep having to go through regular assessments?

[Mr Gauke]

If I may, I am happy to look at that particular issue and write to the hon. Lady.

Pensions

Diana Johnson Excerpts

Wednesday 19th July 2017 Commons Chamber

[Mr Gauke]

One thing I would highlight, as my right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith) did a moment ago, is what we have done on auto-enrolment. That means 10 million more people saving for retirement, which is a huge step forward. I am delighted with the success of auto-enrolment—the very low opt-out rates—and that is one example of how the Government are ensuring that people will have a dignified retirement, but we must remember that the public finances need to be in good order as well.

[Diana Johnson (Kingston upon Hull North) (Lab)]

Bearing in mind regional health inequalities, what steps will the Government introduce in terms of social security to support those who will not be able to work until this later age?

[Mr Gauke]

As a country we spend very large sums—something like £50 billion a year—on support for people with health and disability issues, and we will obviously continue to do that. That is the best way of supporting people who have health difficulties, rather than by having a lower state pension age, which would be unaffordable.

Oral Answers to Questions

Diana Johnson Excerpts

Monday 27th March 2017 Commons Chamber

[Rosie Cooper (West Lancashire) (Lab)]

11. What recent discussions he has had with the Chancellor of the Exchequer on improving pension transition arrangements for women born in the 1950s.

[Diana Johnson (Kingston upon Hull North) (Lab)]

20. What recent discussions he has had with the Chancellor of the Exchequer on improving pension transition arrangements for women born in the 1950s.

[The Parliamentary Under-Secretary of State for Pensions (Richard Harrington)]

I give the same answer I gave to the hon. Member for Ross, Skye and Lochaber (Ian Blackford): the Government have been clear that the introduction of further transitional arrangements cannot be justified, given the imperative to focus public resources on helping those who are most in need. There are no plans to go beyond the £1.1 billion concession introduced when Parliament considered the changes.

[Richard Harrington]

In the latter case, Steve Webb was Pensions Minister at the time, so I do not think there is much further I can say about that.

There were very extensive communications on the 1995 changes. Millions of people checked their state pension requirements; it was publicised and leaflets were produced. This has been said many times on the Floor of the House, and I simply reiterate it.

[Diana Johnson]

It is not good enough for the Minister to say, as he did earlier, that that is it for the WASPI women and that everything has been done that is going to be done. Has he given any consideration to the recommendation from the Work and Pensions Committee talking about allowing the WASPI women the chance to claim their pensions early at a reduced rate, which I believe is cost-neutral and fits with other areas where the Government have allowed pensioners to take their pensions earlier at a reduced rate?

[Richard Harrington]

The proposal is not cost-neutral; I must make that clear. It is very impractical and it is impossible to do in the time concerned. I have made it very clear that the transitional arrangements that were made when the Pensions Bill went through Parliament are all that will be provided.

Oral Answers to Questions

Diana Johnson Excerpts

Monday 21st November 2016 Commons Chamber

[Penny Mordaunt]

As I pointed out at length, we will mitigate the financial cut to the WRAG group through several measures, including the flexible support fund, which will help with costs related directly to work, and through other measures to help with costs not directly related to getting into work. I have stated to the hon. Lady several times in the last week that we have to do both those things. We need to ensure someone’s liquidity and financial resilience, but we must also ensure that they have other kinds of support. We will not pause that support when it commences in April.

[Diana Johnson (Kingston upon Hull North) (Lab)]

4. Whether his Department plans to take steps to introduce new transitional protection for women adversely affected by the acceleration of increases in the state pension age.

[Carolyn Harris (Swansea East) (Lab)]

5. Whether his Department plans to take steps to introduce new transitional protection for women adversely affected by the acceleration of increases in the state pension age.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Pensions (Richard Harrington)]

The Government will not be introducing further transitional protection beyond the £1.1 billion already in place. Going any further could not be justified, given that the underlying imperative must be to focus public resources on those most in need.

[Diana Johnson]

That is a very disappointing response. There are 10,000 WASPI women in Hull, and with 4,100 names, Hull’s was the largest WASPI petition presented to the House last month. Labour has suggested changes to pension credit that could be financed by clawing back handouts to the wealthiest in order to help these women. Is it not about time that the Minister understood that these WASPI women will not go away until justice is done and they get a fair deal?

[Richard Harrington]

As the hon. Lady has mentioned, Labour proposed using pension credit as a transition mechanism for helping these women. This was discussed extensively during our debates on the Pensions Act 2011 as it went through Parliament, and it was decided that £1.1 billion would instead be used as transitional relief.

--- Later in debate ---

[Damian Green]

I am always happy to talk about any technical issues that arise as we roll out this important benefit, and if my hon. Friend wishes to bring them to my attention in detail, I will happily talk to him about them.

[Diana Johnson (Kingston upon Hull North) (Lab)]

Should not those people who were damaged in the contaminated blood scandal by the NHS be passported on to the new PIP regime if they are already in receipt of DLA?

[Penny Mordaunt]

I do not know whether this is an issue that the hon. Lady has raised before. I am sorry if I am not aware of the previous correspondence that she has had with the Department. I would be happy to meet her to discuss that.

Autumn Statement Distributional Analysis, Universal Credit and ESA

Diana Johnson Excerpts

Wednesday 16th November 2016 Commons Chamber

[Damian Hinds]

The programme of deficit reduction has always been done in a fair as well as a determined way. At the end of this decade, the best-off fifth of households—the best-off quintile—will be paying a greater proportion of total taxes than in 2010-11; in fact, they will be paying more in tax than the rest of the households put together. That means that those with the broadest shoulders are, quite rightly, paying their fair share towards fiscal consolidation. Meanwhile, the plans the Government have set out lead to a projected distribution of public spending between the income groups that is essentially the same as in 2010. As the distributional analysis published alongside the last Budget showed, the poorest will continue to receive a share of spending on benefits in 2019-20 similar to that in 2010-11. I reassure the House that the Chancellor has committed to publishing a distributional analysis alongside the forthcoming autumn statement.

Government reforms to incentivise work and enable those who are just about managing to keep more of their pay packet include the national living wage, increases to the personal allowance, the doubling of free childcare, action on council tax and freezes to fuel duty. Although we have had to make difficult decisions on welfare spending, we have never lost sight of the fact that the most sustainable route out of poverty and just managing is to get into and progress in work. The introduction of the national living wage means that lower-paid workers are now seeing record increases to their earnings.

[Diana Johnson (Kingston upon Hull North) (Lab)]

Will the Minister explain to our constituents how the introduction of the “pay to stay” policy will help incentivise people to get into work?

[Damian Hinds]

I was in the middle of talking about how wages have been rising. If the hon. Lady will forgive me, I thought that she was challenging me on that point, so I will continue to make it. According to recent data on earnings from the Office for National Statistics, the lowest 5% of workers saw their wages grow by more than 6% in 2016, the highest growth for that group since that statistical series began nearly 20 years ago. Based on the Office for Budget Responsibility’s forecast at the Budget, almost 3 million low-wage workers are expected to benefit directly by 2020, with many more benefiting from the ripple effect on income distribution.

At the same time, universal credit is transforming the welfare system to ensure that it always pays to work more and to earn more. That is in stark contrast with the pre-2010 system, in which in-work poverty increased by 20% between 1998 and 2010, despite welfare spending on people in work increasing by £28 billion. Evidence is already showing that people move into work faster under universal credit; for every 100 people who found work under the old jobseeker’s allowance system, 113 universal credit claimants have moved into a job. We estimate that universal credit will generate around £7 billion in economic benefit every year and boost employment by up to 300,000 once fully rolled out.

Most important of all, universal credit will drive progression, delivering sustainable outcomes for low-income families. Unlike tax credits, with the 16-hour cliff edge, it supports part-time and flexible working—as well as full-time working—adjusting on a month-by-month basis according to household income. The work allowances are just one element of a much wider system of support and incentives. The personalised work coach support, the smooth taper rate and the reimbursement of 85% of childcare costs as soon as someone starts working, even for a small number of hours, are all key to making work pay for universal credit recipients.

In this morning’s employment figures, we saw that the employment of disabled people is up by 590,000 in the past three years. The disability employment rate has gone up by 4.9% in that time, and the gap has been narrowed by two percentage points. We were talking about this earlier, and it is welcome news, but there is much, much more to be done, as only half of people with disabilities are in work, compared with 80% of the non-disabled population.

Under-occupancy Charge

Diana Johnson Excerpts

Monday 14th November 2016 Commons Chamber

[Damian Green]

My hon. Friend is right that some local authorities are not taking up their full allocation of central Government funding for discretionary housing payments. On top of that, they are allowed, if necessary, to increase by two and a half times the amount given by central Government. Considerable sums are available under discretionary housing payments, and I join her in urging local authorities to use them.

[Diana Johnson (Kingston upon Hull North) (Lab)]

The Secretary of State has just talked about getting people back into work. The pay-to-stay scheme will probably mean a hike in rent for tenants of £87 a month. Is it really fair for the Government to be talking about making work pay when they are attacking people who are striving to get back into work through schemes such as pay to stay?

[Damian Green]

I do not think that the scheme has the effect that the hon. Lady fears. I can stand here and recite figures to her if she likes, but it is patently the case that more people are in work than before. We have more women in work than ever before in our history and unemployment is at its lowest level for more than 10 years. Our welfare policy has had a huge success in getting people into work. If we accept that work is the best route out of poverty, then that is the best measure that any Government can take to alleviate poverty in the long term.