Credit Unions

Edward Morello Excerpts

Wednesday 16th July 2025 Westminster Hall

[Edward Morello (West Dorset) (LD)]

I congratulate the hon. Lady on securing this important debate. She has mentioned financial burdens a couple of times. The average credit union has fewer than seven employees, and is run nearly entirely by volunteers. Smaller credit unions are under the same dual regulatory burden as larger ones, and have to report to both the FCA and the Prudential Regulation Authority. Does she think that there should be proportionality, and that lighter regulation for smaller credit unions would give them the capacity to innovate?

[Katrina Murray]

I thank the hon. Gentleman for his helpful intervention. We need a joined-up approach to our support for the sector’s unique role. We must particularly support small credit unions with few staff members who are predominantly volunteers, because when it gets too much, volunteers may move away and services may close. We need regulatory reform, but we also need practical backing so that credit unions can modernise, merge where appropriate and scale sustainably.

I repeat my call to the Minister: please investigate the regulatory ambiguity that credit unions face, and particularly the application of the CONC by the Financial Ombudsman Service. I ask him to please consider measures to strengthen, not weaken, one of the most community-focused financial tools that we have. Let us not allow credit unions to wither on the vine. Let us invest in their future and, by doing so, in a more inclusive, more resilient economy for all.

Welfare Spending

Edward Morello Excerpts

Tuesday 15th July 2025 Commons Chamber

[Tom Hayes]

I will not be taking an intervention.

Is it any wonder that, as a consequence, we have people who are in significant difficulty, particularly when the social security and public services that they rely on have been chopped back?

As such, I welcome the launch of the child poverty taskforce as an early priority of this Government. I was pleased to meet the Minister just last week to talk about my priorities, which include trying to make sure that play is not squeezed out of childhood and that we have a social security system to meet the needs of children, particularly in the disadvantaged areas of my constituency.

[Edward Morello (West Dorset) (LD)]

I thank my hon. Friend and colleague from Dorset for giving way. He has talked about the issues outside his constituency of Bournemouth East, and he does not have to look far to see some of the inequalities that are in play—only to West Dorset. He will know from our beautiful part of the countryside that delivering services, including access to affordable healthcare, is even more difficult in rural Britain due to the sparsity of the population. That makes it even more important to support those most vulnerable members of our community.

[Tom Hayes]

I thank the hon. Member for his intervention. He invites me to champion his work. I do not think I will do that, but I will acknowledge his hard work and commitment, and I am pleased that he is a colleague.

The child poverty taskforce is going to be critical. The report that it will release, based on feedback from all Members of this House and all our civil society organisations, will be so important, so I am glad that we are taking the time to get this right. It will be a once-in-a-generation opportunity truly to tackle the root causes of child poverty. I am also pleased that, although we have launched that taskforce, this Government are cracking on with the hard work. Just this week, we have seen the announcement of the better futures fund—£500 million from this Government, to be matched by £500 million from local government and the private sector. In total, that is a £1 billion fund that will make a huge difference.

Similarly, I am pleased that we are providing free school meals for all children in families that are on universal credit—that will have a significant impact for my constituents. I am also pleased about the revamped Sure Start, which I think we should talk about more. A revamped Sure Start in all of our local authority areas, with the money that is being given to it, will be able to spot some of the hardships—the physical and mental health issues—that arise from poverty, and to tackle its root causes as well as its symptoms. It will give children a chance to grow, play, learn from each other and develop with peer support, and it will enable their parents, who have been starved of parenting support under the Conservatives, to learn from each other and get what they need. We have a long way to go in order to reverse the decline caused by the Conservatives and lift as many kids as possible out of poverty, but together across this House, I believe that we all have the solutions. I hope we can take this debate forward in the right way and lift those kids out of poverty.

Beer Duty

Edward Morello Excerpts

Tuesday 15th July 2025 Westminster Hall

[Mr Forster]

I agree. There is an economic argument for a small reduction in beer duty per pint, but, as she highlights, there are wider public community benefits as well. I have talked about trying to grow the economy and the fact that less tax per pint has better economic benefits. One of Labour’s key economic election promises was to grow the economy, so why are the Government ignoring calls from the industry to help deliver one of their key missions?

[Edward Morello (West Dorset) (LD)]

My hon. Friend will know—I have said this several times in this Chamber—that the overwhelming majority of businesses in West Dorset are microbusinesses, many of them in hospitality. Does he agree that EPR represents yet another attack on the hospitality sector, alongside increases in business rates and national insurance contributions?

Universal Credit and Personal Independence Payment Bill

Edward Morello Excerpts

Committee of the whole House & 3rd reading
Wednesday 9th July 2025 Commons Chamber

[Adam Dance (Yeovil) (LD)]

I wish to speak in favour of amendments 12, 13 and 17, and Liberal Democrat new clauses 2, 3, 6 and 7.

The Bill has been an absolute shambles from the start; there was no consultation with disabled people, and there has been last-minute chopping and changing. The Timms review and the removal of the PIP elements of the Bill are welcome, but the process that got us there has left disabled people in Yeovil fearful, and with little confidence in the Government. For example, my constituent Noel has unfortunately been unable to work due to a degenerative condition. He receives universal credit and has been left deeply distressed by the proposed changes; he visits my office almost daily for support. He is not alone. So many people in Yeovil have made it clear that the proposals are just unfair.

The whole point of the Bill, as far as I can tell, was to get people back into meaningful work and lower the welfare bill—things that I think we all want—but at no stage has the Bill done what is needed to help get people back into meaningful work: address the crisis in our NHS and social care system, and our growing chronic health issues. I have constituents who would have ended up homeless as a result of the original proposals, and now, without a full impact assessment, we do not really know what effect the Bill will have on our constituents. I am really concerned that people with Parkinson’s and conditions like MS will effectively be excluded, as a result of the criteria, from the higher rate of the health element of universal credit. At the very least, I urge colleagues to support amendment 17 to address that.

The original Bill was supposed to save around £5.5 billion, but the Institute for Fiscal Studies predicts that the amended version will deliver basically no savings over the next four years, as over that period, the forecast savings from reducing the universal credit health element for new claimants will be offset or exceeded by the cost of increasing the UC standard allowance. What is the actual point of this Bill?

[Edward Morello (West Dorset) (LD)]

My hon. Friend and neighbour’s constituency, like mine, is extremely rural; he will know that the cost of delivering services in rural areas is four to five times higher than it is in urban areas. PIP allows people to live independently. Both my hon. Friend and I see integrated care boards that are under extreme financial pressure. We will end up paying one way or another—we might as well give people the independence to live freely while we do it.

[Adam Dance]

I completely agree with my hon. Friend and neighbour. We will see a huge impact from ICBs having to make a 50% cut. We are already seeing the impact in Yeovil, as hon. Members will have heard me say. The maternity unit has had its funding cut, and is being shut for six months.

The Bill was not produced with disabled people; lots of its content is being removed; there is no impact assessment; and the Bill is not likely to make any real savings. This tells me that the Government should go back to the drawing board, and either withdraw the Bill, or adopt the Lib Dem amendments and new clauses that require proper consultation and impact assessments. Either way, the Government must stop making decisions about disabled people without them.

I thank some Labour Back Benchers for having a backbone and voting against their Government in support of disabled people. I hope they do so again today.

Oral Answers to Questions

Edward Morello Excerpts

Monday 23rd June 2025 Commons Chamber

[Liz Kendall]

Yes, I can. That is a firm commitment from me personally, and from the Prime Minister. We have made a start on that work: our expansion of free school meals to children in all households on universal credit will benefit, I think, around 6,500 children in my hon. Friend’s constituency, and we are helping more people into work, which is the best way to tackle poverty in the long term. We have a long way to go, but we are absolutely committed to bringing those numbers down.

[Edward Morello (West Dorset) (LD)]

T4. Some 40% of people in West Dorset who are in receipt of a personal independence payment receive the highest level of support. Many are extremely anxious about PIP assessments being carried out over the phone rather than in person, particularly those with complex or fluctuating conditions. Will the Minister guarantee that anyone who wants an in-person assessment will receive one?

[Liz Kendall]

Yes, we absolutely want that to happen. Indeed, we want to record the assessments as standard to ensure that claimants have confidence in what is being done. This is an issue that causes huge anxiety among my constituents. Too many decisions take too long and are overturned, and we want to deal with these problems head-on.

Disabled People in Poverty

Edward Morello Excerpts

Tuesday 17th June 2025 Westminster Hall

[Edward Morello (West Dorset) (LD)]

It is a pleasure to serve under your chairship, Ms Jardine. I congratulate the hon. Member for Poole (Neil Duncan-Jordan), my colleague from Dorset, on securing this important debate. I will attempt to edit my speech as I go along to buy back some time.

Ensuring fairness starts with recognising those who need support the most. The foundation of real support is ensuring that help reaches those who face the greatest challenges. The additional costs of disability—mobility aids, home adaptations, specialist care, heating and travel—add up and are all substantial. Scope estimates that disabled households need an extra £1,010 per month to achieve the same standard of living as a non-disabled household. Nearly 4,800 people in my constituency receive personal independence payments, of whom 40% receive the highest level of support.

[Adam Dance (Yeovil) (LD)]

One of the most common reasons why people claim PIP in Yeovil is poor mental health. Does my hon. Friend agree that to support vulnerable people’s mental wellbeing, the Government must urgently change course on the proposed cuts to PIP and introduce proper staff and accessible mental health hubs in every rural community?

[Edward Morello]

I absolutely agree. The costs for disabled people who live in rural areas include more expensive journeys to access healthcare, unreliable and sparse public transport, and higher energy bills for heating homes that are often older and less efficient.

Hundreds of my constituents have expressed their concerns to me over the last few months, and I have retold some of their stories in this Chamber. Each one represents a wider failure. The Government’s own analysis shows that the proposed changes to PIP will push 300,000 people into poverty. About 150,000 carers stand to lose carers allowance due to the knock-on effect of losing PIP eligibility, harming those who care for the most vulnerable. I urge the Government to change course.

[Several hon. Members rose—]

Personal Independence Payment: Disabled People

Edward Morello Excerpts

Wednesday 7th May 2025 Westminster Hall

[Edward Morello (West Dorset) (LD)]

Too many disabled people in West Dorset are living in fear: fear that the PIP support they rely on will be taken away or that loved ones might not qualify. In recent weeks, I have heard from 190 constituents each sharing their distress about the plans. One of my constituents, Barbara, is 65. She has lived with juvenile idiopathic arthritis since she was three. She has experienced constant pain, multiple surgeries and increased disability throughout her life. Yet she worked in social services for many years and never claimed employment and support allowance. Her PIP award helps her fund the support she needs to give her independence: mobility equipment, home adjustments and private care when the NHS service falls short.

Despite scoring three points in some areas on her most recent assessment, and scoring on virtually all areas of daily living, Barbara would not qualify for any support under the proposed changes. For constituents such as Barbara, this is a terrifying prospect. As she put it herself:

“PIP is not a benefit. It is a tool for survival.”

As we debate the potential changes to PIP, I hope we will remember her words. Disabled people and their carers deserve dignity. They deserve to be seen not as a cost to be managed, but as valued citizens, worthy of respect and entitled to fairness and compassion from this House.

Public Authorities (Fraud, Error and Recovery) Bill

Edward Morello Excerpts

Report stage & 3rd reading
Tuesday 29th April 2025 Commons Chamber

[Gill German (Clwyd North) (Lab)]

I welcome the return of this Bill to the House. I was happy to speak on it on Second Reading, when I welcomed the Government’s crackdown on fraud, because every pound lost to fraudulent claims is a pound that could be spent on the vital public services on which my constituents in Clwyd North rely. It is extremely good to see the recognition of the issue, and the action taken in response to the £7.1 million of fraud and error payments in 2022-23 in Wales alone—that figure is up by £600,000 on the previous year.

The fine-tuning of this Bill is important, and that fine-tuning is done through the Government amendments, which speak to the correct application under devolution settlements, policy intent, the application and limitation of part 3, and the consequential amendments proposed to parent Acts. I was glad to be a member of the Public Bill Committee that considered the Bill in more detail, and I throw my weight behind the comments made about how the Bill Committee progressed, and how helpful that was to Committee members. The explanations and expansions by the Ministers served us well and have brought us to where we are today.

I spoke on Second Reading about the distinction between intentional fraud and accidental individual error, and I am pleased that Government amendments speak to reservations relating to that, and to proportionality. Crucial safeguards will be strengthened to ensure that no one is pushed into undue financial hardship because of debt recovery. Those safeguards include strict affordability checks on recovery payments, and checks on vulnerabilities.

[Edward Morello (West Dorset) (LD)]

I take the hon. Lady’s point about the need to strengthen safeguards, but passing the Bill would mean that we would be extending the powers of the Department for Work and Pensions before we had the opportunity to look at the independent review of the carer’s allowance overpayments scandal and see what reform of the Department was necessary. Does she share that concern?

[Gill German]

The Bill will protect vulnerabilities where we see them and it is very much a Bill of last resort. It is aimed at people who are not engaging with the DWP on fraud and error cases. Now that carers are aware of the problems that have occurred in the system, we hope that they engage, so I do not believe that the Bill will impact them in the way that the hon. Gentleman suggests. Indeed, the Bill will protect claimants by enabling early dialogue, which will stop errors sooner and prevent debt building up through genuine mistakes; I initially had a reservation on that point.

It is clearer than ever that the measures are powers of last resort for those who have refused to engage and are able to pay—it is important to emphasise that point. The measures put DWP powers in line with those that already exist for His Majesty’s Revenue and Customs and the Child Maintenance Service, and put the importance of the public money spent by those bodies on an equal footing.

The behaviour change that is expected to come as a wider benefit of the Bill is welcome. The Bill encourages debtors to negotiate a repayment plan ahead of using the measures of last resort. Importantly, as has been said, it deters organised fraudsters and those looking to become involved in fraud by ensuring that it is not framed as a victimless crime. It is anything but, because it robs us all of vital money for public services. We are not willing to shrug our shoulders at that, as the Conservative party did at the rising tide of fraud during the covid pandemic and beyond. We must all reinforce the narrative that benefit fraud is not a victimless crime, and our tackling it through the Bill is long overdue.

Throughout the passage of the Bill—in Committee and now on Report—I have been reassured that those who have genuine difficulty navigating the social security system have nothing to fear from the Bill. Indeed, it will raise awareness of the importance of early dialogue. However, I still have concerns about the complexity of the system and how it is administered, as I voiced at Second Reading, but that is for another day. As a member of the Work and Pensions Committee, I will continue to focus on that, as well as having regular dialogue on the subject with my constituents.

To conclude, I welcome the Bill and the fine tuning that has come about through Government amendments passed in Committee. I was pleased to serve on my first Public Bill Committee, and thank the Chairs, Ministers and all involved for its smooth running. I am happy to support the Government amendments put to the House today.