Budget Resolutions and Economic Situation

Diana Johnson Excerpts

Thursday 9th July 2015 Commons Chamber

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

I should like to start by congratulating all those who have made their maiden speeches this afternoon. I pay particular tribute to the excellent speeches by my hon. Friends the Members for Bradford South (Judith Cummins) and for St Helens South and Whiston (Marie Rimmer).

It will be easy for me, as a Hull MP, to keep my remarks about the Budget fairly brief. That is because the words “Hull” and “Humber” did not appear once in the Chancellor’s speech, or in the Red Book, despite the northern powerhouse being a key policy for the Government and Hull being an important city in the north. As my right hon. Friend the Member for Newcastle upon Tyne East (Mr Brown) said, we all want to broaden, deepen and strengthen the economy in the north, but it looks as though the northern powerhouse has now become the northern power cut, particularly in regard to investment in rail improvements.

Just a few days ago, the Minister with responsibility for the northern powerhouse, the Under-Secretary of State for Communities and Local Government, the hon. Member for Stockton South (James Wharton), appeared not to know where the north was, so I shall help him by saying that we are the ones who had our rail investment paused, unlike those in the south, where no such pause has taken place. But never mind—we have been offered a plastic Oyster card to make up for the cancellation of the electrification of the TransPennine Express route and the lack of any new rolling stock.

I also want to talk about renewables. The Humber area is working hard to be the UK’s renewable energy estuary, in the interests of energy security, of fighting fuel poverty and climate change and of growing this important area of our economy for the nation. It is therefore unhelpful to keep getting so much hostility to renewable energy from those on the Government Benches. The Budget introduces a change to the climate change levy, which will now also apply to companies that use renewable energy. That will effectively be a charge of £490 million for companies that have switched to renewable energy, and it will discourage firms from using renewable energy in the future. By 2020, the cut will amount to £910 million a year, which will discourage investment in renewable energy sources.

The Chancellor claims that this is a Budget for “working people”. The centrepiece is the pledge of a living wage of £9 an hour by 2020 for those over 25. Younger workers get no such pledge. That is not the living wage. Of course we welcome the increase in the minimum wage—we called for it in our manifesto—but what the Government have announced will not be a living wage because the rate will be too low by 2020. Outside London, the living wage needs to be over £10, not £9, to be worthy of the name. Also, the rate proposed for 2020 is lower than the current London living wage, which is £9.15.

Worse still, the proposals do not compensate for cuts in tax credits. This lunchtime, Paul Johnson of the Institute for Fiscal Studies has said that

“there is simply not enough money going into the new minimum wage to anywhere near compensate…people on tax credits”.

We should be cutting the need for tax credits rather than the tax credits themselves. It is a fact that 75% of children in Hull North live in households that depend on tax credits. They will be worse off overall, just as they were at the end of the 2010 Parliament. One of my constituents, Maureen Craven, will also be worse off even though she is doing the right thing. She told me:

“I have had my grandson living with me since he was four months old. He is now seven years old and I rely on my child tax credit to buy shoes and school uniform.”

Such families, who are doing the right thing, will be affected by this policy.

It is also difficult to take the Tories seriously on the living wage when they have failed to enforce the legal national minimum wage. There have been only two prosecutions for minimum wage non-payment since 2010, and the number of inspections for compliance is falling. Will the Government get tough with big businesses to enforce a living wage? Will they help small businesses that have genuine fears about being able to afford the living wage? Will lower-paid local government workers, who will have years more of 1% pay increases, be paid at the living wage level? Will councils be funded for the costs they have faced—in the light of the cuts—over the past five years? As my hon. Friend the Member for Sheffield South East (Mr Betts) said, there are already growing concerns about the care sector and how it will cope with an additional cut of £1.5 billion that will have to be borne by local authorities.

When it comes to motivating the richest to increase productivity, it means, in the Tories’ view, boosting their income, including unearned income. There is no austerity for them. That is because the Tories have always thought that all wealth creation comes from those at the top of the income scale. For the poorest workers, and everyone in the public services, it involves cutting real incomes and redefining child poverty to cover up the deed. Their welfare to work is really welfare to charity, as we will see, I am sure, at Hull’s food banks. It is the food banks that will need the longer Sunday opening hours, and not local shops, as the Chancellor announced in the Budget.

This was a Budget of selective austerity. It will leave people in a more complex poverty trap. They will have more debt and their work will not pay. After the millionaire tax cut, children of millionaires now get to inherit more unearned income to fund—in the Chancellor’s own words—“their lifestyles”. Meanwhile, aspiring youngsters from working families in Hull trying to get the qualifications for skilled jobs that we want in the city see student maintenance grants axed and turned into loans, and the cap for tuition fees removed.

Let me raise very quickly my concerns about limiting support to two children. It is a particularly ill-thought through policy and will lead to more and more children living in poverty. I am appalled—I use that word advisedly; I do not normally speak like this—by what the SNP spokesperson highlighted yesterday. She spoke about the proposal that a woman who had been raped and conceived a child would, if it was a third child, have to go to the DWP and provide evidence of the rape, and about the stigma that could be attached to the child. It is a disgraceful policy that the Government have brought forward.

As Jonathan Freedland stated today in the media, the rabbit that was pulled out of the hat was very thin. Under close scrutiny, things do not stand up. We will see falling incomes, especially in places like Hull and especially for lower paid women workers. The Chancellor talked about trying to improve wages for people in this country, but that will not be reflected in what this Budget actually delivers.

Child Poverty

Diana Johnson Excerpts

Wednesday 1st July 2015 Commons Chamber

[Mr Duncan Smith]

I welcome my hon. Friend to his place. The Government rightly spend significant sums of money on support for disabled people throughout the UK. In fact, I think the amount we spend on disabled people, as a proportion of GDP, is more than is spent by America, Germany and France together. I am proud of that. It is the right thing to do, and we should continue to do it. However, many people who have disabilities are desperate for work. We have now increased the proportion who are in work to record levels, but that is not good enough. I want to get it up to the same level as for the rest of society.

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

Will the Secretary of State please explain how redefining child poverty and removing targets will in practice give help today to a child living in poverty in a family who are in work?

[Mr Duncan Smith]

We continue to support families who are in work through the various mechanisms we have. As universal credit rolls out, it will add to those mechanisms, and there are additions for families with children. Including the measures I am announcing today, we will address that by ensuring that the children in such families have improved life chances through improved educational achievement. We have already done a huge amount through free school meals, support through childcare—there are massive amounts of new childcare—and the involvement of parents in further work. We are doing more to help those families than was ever done before.

Child Poverty

Diana Johnson Excerpts

Thursday 25th June 2015 Commons Chamber

[Mr Duncan Smith]

May I welcome my hon. Friend to her post? Opposition Members were making noise while she was speaking, but they should recognise that her back story is remarkable: the work she has done to help communities and families. I welcome her to the House. She is absolutely right. Getting those families who have educational difficulties and who are isolated from the community back into the community, and supported and helped back into work is absolutely key. She is right on the money.

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

With 48% of children in Orchard Park and Greenwood ward in my constituency living in poverty, does the Secretary of State think that removing the in-work benefits will increase or reduce that number?

[Mr Duncan Smith]

The best thing we can do for those families is provide the support programmes that I have talked about. Those programmes are about helping those families get a better education, be more stable and get into work. Being in work and progressing in work is the greatest solution to poverty in the hon. Lady’s area, as it is in mine.

Oral Answers to Questions

Diana Johnson Excerpts

Monday 8th December 2014 Commons Chamber

[Mr Duncan Smith]

I heard that interesting debate between Professor Dowler and the head of the Oxford food bank, who talked about the wider ramifications of issues concerning access to food and food distribution, which is a matter for supermarkets. Of course, we want people to earn more. The key thing after the recession was to get people into work. We have got 2 million people back into work as a starting point, and we know that for every year in work a person’s salary rises on average by about 4%. Is there more to do? Yes, of course there is. We are looking carefully at that report and we will respond appropriately. I promise the hon. Gentleman that I take the report very seriously.

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

5. What the average time taken is for a decision on an award of personal independence payment.

[The Minister for Disabled People (Mr Mark Harper)]

The delays that some people applying for PIP have experienced are unacceptable, as I have said a number of times in the House. Getting those delays down is my No. 1 priority. The hon. Lady will be aware of the Secretary of State’s very clear commitment, which the Department is working very hard to achieve.

[Diana Johnson]

My constituent Simon Brown waited seven months for his PIP application to be processed. That delay meant that he was unable to apply for other help—such as additional housing benefit—that a PIP award allows. Given that eventual backdated payments do not compensate for the hardship and misery that people experience while waiting for months, and given that benefit delays are one of the main reasons that people are accessing food banks and going to loan sharks, can the Minister say what specifically he is doing to make sure that other people do not suffer in the same way as my constituent?

[Mr Harper]

Yes, I can. Overall, I accept there has been a problem with PIP and I have set that out in the House on a number of occasions. As far as benefits across the Department are concerned, the Department now pays benefits more quickly than when we came to office, so that has improved. Since the start of the year the assessment providers have trebled the number of health professionals they employ. Since April we have doubled the number of monthly assessments and tripled the number of decisions made, and by the beginning of next year we will have almost quadrupled the number of health professionals. That is making a real difference to making decisions on a timely basis for the hon. Lady’s constituents and mine.

Oral Answers to Questions

Diana Johnson Excerpts

Monday 3rd November 2014 Commons Chamber

[Mr Duncan Smith]

Apart from the rhetoric, the reality is that the hon. Gentleman is wrong. It was his Government who started the process in the first place. I remind him that when they introduced the local housing allowance, they refused to allow anybody who accepted that benefit to live in a house that had extra bedrooms, because that would be unfair on those who were in that accommodation. We have restored that fairness. That is the right thing to do, and it saves £500 million a year.

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

11. What forecast he has made of the likely level of child poverty in (a) 2015 and (b) 2020.

[The Minister for Pensions (Steve Webb)]

Relative child poverty is now at its lowest level since the mid-1980s, and there are now 300,000 fewer children in relative poverty than in 2010. However, poverty projections are based on a number of factors that cannot be reliably predicted, including the median income.

[Diana Johnson]

According to the most recent figures published under this Government, 53% of children in the Orchard Park and Greenwood ward in my constituency are living in poverty, compared with 11% in the neighbouring constituency of Haltemprice and Howden. What is the Minister going to do to ensure that we do not end up with a permanently divided society?

[Steve Webb]

The fall in unemployment has happened across the country, and the risk that a child will be living in poverty is three times greater for those living in workless households than for those living in a house in work. We now have over 300,000 fewer children living in workless households, with more falls since those figures were put together. That is the best antidote to child poverty.

Oral Answers to Questions

Diana Johnson Excerpts

Monday 31st March 2014 Commons Chamber

[Mike Penning]

I could not agree more and I was very proud to be able to announce that we will be raising the benefit to 80% of average civil claims. That will give £123,000 to the claimants and their loved ones, plus £7,000 in legal fees, which if they do not spend they can keep; it will not be clawed back in any shape or form. People have waited for this scheme for many years and we will do everything we can to make sure that people who deserve it get it.

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

10. What assessment he has made of the effectiveness of (a) the Work programme and (b) Universal Jobmatch.

[The Minister of State, Department for Work and Pensions (Esther McVey)]

The Work programme is a success, and industry figures show it has moved half a million people into work. Universal Jobmatch revolutionises the way jobseekers look for work and it has already helped many jobseekers find the jobs they want through the millions of vacancies posted since 2012.

[Diana Johnson]

We recently heard that 60% of jobs on the failing Universal Jobmatch programme are bogus, such as the one for an MI6 “target elimination specialist”, and many of my constituents have been ripped off by criminal scams. With the Jobmatch programme set to be axed, will MPs now get the monthly constituency figures on the number of jobseekers chasing each job, which was removed in 2013, or will that information still be withheld?

[Esther McVey]

Opposition Members just love to run everything down despite the fact that all these things we have put in place have helped a record number of people into work. We introduced a brand-new scheme that was in addition to what people could already do to look for work. More than half a million companies have opened up a scheme within Universal Jobmatch, which is helping millions of people to find work. Whenever we find any businesses that are not correctly adhering to terms and conditions—it is a tiny number—they are removed, but I have to say that this is a terrific addition to help people look for work. Shame on you!

Parliamentary Written Answer (Correction)

Diana Johnson Excerpts

Monday 6th January 2014 Written Statements

[The Minister of State, Department for Work and Pensions (Esther McVey)]

I wish to inform the House that an error has been identified in the written answer given to the hon. Member for Kingston upon Hull North (Diana Johnson) on 21 November 2013, Official Report, column 1023W—written answers and statements. The information included within the table in the answer to PQ 176414 contained some incorrect figures and these have now been amended. I apologise to the House for this error.

The full answer given was:

[Diana Johnson]

To ask the Secretary of State for Work and Pensions how many jobseeker’s allowance claimants in Hull have been sanctioned since 22 October 2012; how many such sanctions have been subsequently overturned; how many such claimants had previously been asked to undertake a literacy course by a jobcentre; and how many claimants were previously claiming employment support allowance. [176414].

[Esther McVey]

The information is tabled as follows:

[Diana Johnson]

To ask the Secretary of State for Work and Pensions how many jobseeker’s allowance claimants in Hull have been sanctioned since 22 October 2012; how many such sanctions have been subsequently overturned; how many such claimants had previously been asked to undertake a literacy course by a jobcentre; and how many claimants were previously claiming employment support allowance. [176414].

[Esther McVey]

The information is tabled as follows:

Oral Answers to Questions

Diana Johnson Excerpts

Monday 18th November 2013 Commons Chamber

[Steve Webb]

I do agree with my right hon. Friend. We are establishing an economy that is based on savings rather than debt, and one of the most important measures that we are implementing is automatic enrolment in workplace pensions. By Christmas, about 2 million workers will have been enrolled. Nine out of 10 people are choosing to stay in workplace pensions, and it is encouraging to note that—notwithstanding what sceptics have said—young people are particularly likely to do so, thus establishing a culture of saving from an early age.

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

Since January, the coalition has no longer been producing the statistics showing the number of people chasing every job vacancy in each constituency. Will the Secretary of State bring those statistics back, so that we can have information about what is happening in our own constituencies?

[Mr Duncan Smith]

I shall consider the hon. Lady’s request, and get back to her.

Oral Answers to Questions

Diana Johnson Excerpts

Monday 14th October 2013 Commons Chamber

[Mr Duncan Smith]

Universal credit will roll out very well and it will be on time and within budget. We should consider the reality of the record of the right hon. Gentleman’s Government on Departments and the mess they got into. They left us with IT blunders of over £26 billion. With respect to him, as he was not always involved, but the others were, I therefore think they should apologise first.

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

17. What discussions he has had with Motability on the changes from disability living allowance to personal independence payment.

[The Minister of State, Department for Work and Pensions (Mike Penning)]

DWP Ministers have regularly met the management of Motability to ensure that they are well placed to manage the introduction of personal independence payments and are able to effectively support their customers through this transitional period.

[Diana Johnson]

There are 3,200 people in Hull who have a vehicle under the Motability scheme. What assessment has the Minister made of the number who will lose their vehicle under the new PIP criteria?

--- Later in debate ---

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

T8. Given the woeful performance of the Work programme in Hull and local job losses, does the Secretary of State agree with The Economist that Hull’s long-term jobseekers should give up looking for jobs in Hull and travel elsewhere in the country?

[Esther McVey]

I would never put out a message that people should not look for work, because work is vital to self-esteem, motivation and supporting one’s family, so I totally disagree with that statement.

Remploy

Diana Johnson Excerpts

Thursday 4th July 2013 Commons Chamber

[Esther McVey]

I will indeed come back to the House to speak about our national employment strategy; that is only fair and correct. We have been working on it for some time. We have been analysing the Work Choice and Work programme figures and looking at other social support, such as job clubs, and we have developed for the first time ever this community support fund and opened 32 different sites across the country helping almost 750 disabled people.

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

The disabilities Minister has talked a lot about opportunities and moving forward, so is she satisfied that in Hull in the first year of the Work programme only 10 people with disabilities were found work? Is that acceptable?

[Esther McVey]

As the hon. Lady says, we are working on the Work programme and taking huge strides forward, and I am looking at the specialist disability support such as Work Choice and how to reshape it to make it even better.