Oral Answers to Questions

Esther McVey Excerpts

Monday 26th March 2018 Commons Chamber

[Eleanor Smith (Wolverhampton South West) (Lab)]

1. What steps she is taking to ensure support for former Carillion employees whose pensions will not be covered by the Pension Protection Fund.

[The Secretary of State for Work and Pensions (Ms Esther McVey)]

There are 12 Carillion defined benefit schemes in a PPF assessment period. The PPF is working with scheme administrators to determine whether they can pay pensions at or above PPF benefits. Where a scheme cannot do this, the PPF will assume responsibility and pay compensation.

[Eleanor Smith]

The workers in the Carillion defined contribution scheme should not have to suffer any detriment to their pension. Will the Government be looking to draw back bonuses paid to the Carillion executives to put back into the pension funds?

[Ms McVey]

As I said, the Carillion schemes are at present in the assessment period for the funds, and we are looking at what happened in those instances. The hon. Lady will be pleased to know that we have brought forward our White Paper on defined benefits and increasing the regulator’s powers to support these schemes in the best way possible, to make sure pensioners get those pensions that they so rightly deserve. It is the Conservative party that will be strengthening that for workers, to make sure we look after such pensioners.

[James Gray (North Wiltshire) (Con)]

Will the Secretary of State pay particular attention to that group of public sector workers who transferred into Carillion and are now retired, and who were covered not so much by the PPF, because they were given ex gratia payments rather than pensions, at the time they transferred?

[Ms McVey]

My hon. Friend raises an important question, and he is right: a number of Carillion employees were compulsorily transferred from the public sector, and we are looking at whether they can now rejoin the public sector service scheme. We are working hard to determine that.

[Deidre Brock (Edinburgh North and Leith) (SNP)]

Does the Secretary of State agree that the Carillion pension crisis, as well as the many pensions crises over the years, support the Scottish National party calls for the UK Government to urgently set up an independent savings and pension commission to take a robust look at the pensions landscape?

[Ms McVey]

The regulator is independent, and that is what it does: look at pension schemes. We have, through the White Paper, strengthened the regulator’s powers and now for the first time brought forward criminal sanctions should any director or employer bring into harm wilfully and neglectfully the workers’ pension scheme.

[Jack Dromey (Birmingham, Erdington) (Lab)]

The catastrophic collapse of Carillion saw thousands of workers pay the price, including with their pensions. It was a monumental failure of governance and by Government, who knew Carillion was sinking into difficulties and went on awarding contracts despite profit warnings. The Secretary of State has said before the Select Committee that the Pensions Regulator knew about the mounting problems in 2014; were the Government alerted and did they choose to ignore those warnings, or did the regulator chose to ignore them and fail to alert the Government?

[Ms McVey]

The regulator and assessors are now looking into a whole series of issues. Fundamentally, one of them has to be how Carillion’s books went from being a healthy balance-sheet to, a year later, not being a healthy balance-sheet. The auditors and accountants who had signed those books are now being thoroughly examined to establish what happened there before the regulator would have had to look into things, so a lot of investigations are going on.

[Richard Graham (Gloucester) (Con)]

2. What assessment she has made of the efficacy of the roll-out of universal credit.

[The Secretary of State for Work and Pensions (Ms Esther McVey)]

Universal credit is a modern flexible benefit which provides tailored support to claimants. Three separate research studies show that UC is having a positive impact on employer outcomes. The changes announced in the Budget are giving even more support for claimants.

[Richard Graham]

Before Christmas, many on the Opposition Benches predicted disaster as more of our constituents claimed their benefits through universal credit. In fact—and I believe the changes made by the DWP have made a significant difference—the early anecdotal evidence in Gloucestershire, from the Jobcentre Plus and Gloucester City Homes, is that things are moving smoothly ahead. Does my right hon. Friend agree that this is broadly the case across the country, and that the introduction of trusted landlords is making a significant improvement to relationships with housing associations, and will she do more to roll that out?

[Ms McVey]

My hon. Friend is correct. Three independent studies are saying that universal credit is getting people into work quicker, and that they are staying in work longer and also looking for more work. He is exactly right about the trusted partner status. The reason he has started to do extra work with his jobcentre, looking at tenants who might not have a roof over their head, was the false information cited in Prime Minister’s questions by Jeremy Corbyn, who said that one in eight would be evicted. That was not the case, and, as we are seeing, people are now getting into work and their homes are being protected.

[Mr Speaker]

I say gently to the Secretary of State that one must not refer to other Members by name. The right hon. Member for Islington North is the Leader of the Opposition, but he should not be referred to by name.

[Frank Field (Birkenhead) (Lab)]

I ask the Secretary of State not to give an immediate reply to this question but to ponder it. The Secretary of State has told me that the 98 members of jobcentre staff on temporary contracts in Birkenhead are going to be laid off because they have come to the end of their contract period. Unlike Gloucester, we are having real problems with the roll-out of universal credit. I had five cases last week, including one involving a woman who had been reduced to living on 7p. Might not some, if not all, of those staff be redeployed to ensure a smooth transition from traditional benefits to the new one?

[Ms McVey]

I appreciate the right hon. Gentleman saying that I could speak to and work with him to see what is happening in Birkenhead. What I know is that we on this side of the House brought forward up to 100% advances, so that anyone in need of money could have it. We have also stopped the waiting days, and from April we are providing the two-week housing payment. That is what we on this side of the House have done to protect the most vulnerable, but the Opposition voted against it.

[Craig Tracey (North Warwickshire) (Con)]

23. I recently visited jobcentre staff in Bedworth to see how universal credit was helping my constituents. I was delighted to hear of encouraging examples of success, including one claimant who had been helped into work within weeks. Under the previous system, she would have waited months to get the same help. Does this not show that universal credit is acting faster to transform lives?

[Ms McVey]

My hon. Friend is correct, and I want to thank him for going to meet people at his Jobcentre Plus and for speaking to the dedicated work coaches who are working tirelessly to help people to get into work. These are the tales that I am hearing. Universal credit is an in-work and out-of-work benefit. We are about getting people into a job and then helping them with progression, so that they can get into a job and have a career and also have job progression. That is why we have over 3 million more people in work.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

rose—

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[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

18. Thank you, Mr Speaker. Let me take this opportunity to tell the Secretary of State that in three of the eight wards in my constituency, child poverty is at over 50%. Universal credit has only just started to be rolled out, and it will only make things worse. Her Government are also going to take away free school meals—[Interruption.] In the future, there will not be the access to free school meals that there is now. What is the level of child poverty that she is willing to support?

[Ms McVey]

We have had this debate before, and this has been corrected many times. Actually, 50,000 more children are going to have free school meals. These scaremongering stories are not true at all. Let us look at what is happening. We now have 1 million fewer people in absolute poverty—a record low. We now have 300,000 fewer children in absolute poverty—a new record low. There are also 500,000 fewer working-age adults in absolute poverty—a record low. This Government are about helping people to get into work, which is the first step they can take towards taking control of their life. From there, they can have career progression.

[Jeremy Quin (Horsham) (Con)]

I commend my right hon. Friend for the roll-out of universal credit. How does that compare with the debacle that was the implementation of tax credits under a previous Government?

[Mr Speaker]

Order. No dilation is required. A pithy encapsulation of what the Secretary of State regards as her personal triumph is one thing, but a lengthy denigration of the policies of the previous Government would be another.

[Ms McVey]

Universal credit is working, and it had to be put in place, in part because the Opposition’s tax credits were a failure.

[Mr Speaker]

Very fleet of foot.

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[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

14. What recent assessment she has made of trends in the number of job vacancies.

[The Secretary of State for Work and Pensions (Ms Esther McVey)]

On average, more than 1,000 people have been employed every day since 2010. There are 816,000 vacancies—a rise of 10,000 since the last quarter and 56,000 since a year ago.

[Stephen Metcalfe]

I thank my right hon. Friend for her excellent and informative answer. However, to make sure that the vacancies get filled, we need to link up jobseekers with those vacancies. What action is she taking to ensure that people know what opportunities are out there for them?

[Ms McVey]

My hon. Friend is correct. This Government have brought forward new schemes like work experience, sector-based work academies and support for childcare to enable people who are job-seeking to go for those jobs. Universal credit, which is an in-work and out-of-work benefit, is giving that extra support. Let me just say this: BT Openreach, 3,500 new jobs across the country; UPS, 1,000 jobs in the east midlands; Siemens, 700 skilled jobs in Yorkshire; and Toyota, 3,000 jobs in Derby and Wales. That is what this Government are doing in supporting those people into those jobs.

[Ruth George (High Peak) (Lab)]

Ministers have repeatedly said this afternoon that the best way out of poverty is through work and education, so why have they introduced the limit on free school meals under universal credit, which is a work disincentive and will prevent more than 1 million children in poverty from receiving free school meals and the educational achievement they deserve to get out of poverty?

[Ms McVey]

The Opposition have been putting across fake news, or maybe it is clumsy research or just misinformation. Even “Channel 4 News” had to put up a factsheet correcting what the Opposition are saying. Some 50,000 more children will be getting free school meals. We are helping those who need support, with not only childcare but free school meals and progression in work. Please listen and learn.

[Paul Blomfield (Sheffield Central) (Lab)]

15. What assessment she has made of the effect on levels of in-work poverty of changes to the eligibility threshold for free school meals for households in receipt of social security benefits.

[The Secretary of State for Work and Pensions (Ms Esther McVey)]

An estimated 50,000 more children will benefit from a taxpayer-funded free school meal by 2022 under universal credit. I will repeat that: 50,000 more children will get a free school meal. We are already ensuring that all existing children receiving free school meals will continue to receive them until roll-out or that phase of education is complete.

[Paul Blomfield]

There clearly is a serious mismatch between the Secretary of State’s figures and those published by the highly respected Children’s Society, which tells me that 7,000 children will lose out in Sheffield alone. Will she undertake to publish the basis on which she has calculated those figures?

[Ms McVey]

The Department for Education will be doing that. Sometimes charities are given the wrong information and therefore say the wrong information, having been led astray by Opposition Members. The Opposition voted against those free school meals. They voted against the removal of waiting days. They voted against advances of up to 100%, and they voted against two weeks of housing benefit support for the most vulnerable people in society. Shame on you.

[Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)]

T1. If she will make a statement on her departmental responsibilities.

[The Secretary of State for Work and Pensions (Ms Esther McVey)]

We are pleased with the progress we have made on the roll-out of universal credit, which is now live in 250 jobcentres. Universal credit is a modern, flexible benefit that helps people move into work and, importantly, progress in work through tailored support from dedicated work coaches.

[Mrs Hodgson]

The Department is always quick to act in cases of overpayment and sanction claimants for any breach of rules, yet an investigation by the National Audit Office revealed that the Department has underpaid an estimated 70,000 people over the last seven years. What will the Department do to ensure that those who have been left out of pocket are repaid the money they are entitled to as soon as possible?

[Ms McVey]

When we have, or if we have ever, underpaid people, we will support them, make sure that it is correct and pay them back.

[Scott Mann (North Cornwall) (Con)]

T4. Will my right hon. Friend confirm that the new support for mortgage interest scheme has been specifically designed to maintain people in their homes and that none of my constituents should be concerned about the day-to-day payments on their mortgages?

[Margaret Greenwood (Wirral West) (Lab)]

Had the Secretary of State read the full article that she refers to on Channel 4’s FactCheck, she would have seen that it said that our numbers were in fact correct.

[Ms McVey]

indicated dissent.

[Margaret Greenwood]

Well, it did. I recommend that the Secretary of State rereads it.

In less than two weeks’ time, support for mortgage interest will change from a benefit to a loan. Government figures released on Friday show that, even at this late stage, the DWP has still not managed to contact 40% of claimants by phone to explain the change, and 30% of all claimants have already declined a loan. A large proportion of claimants are pensioners, and Age UK is warning that many may instead try to manage by cutting back on essentials such as heating. Why have the Government failed to give claimants adequate notice, and will they call a halt to this policy, which risks inflicting hardship on thousands?

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[Mr Gavin Shuker (Luton South) (Lab/Co-op)]

T7. When I was a child in receipt of free school meals, the majority of my peers growing up in poverty were in workless households. That is no longer the situation: today, the majority have one parent in work. Will the Secretary of State explain why?

[Ms McVey]

You can’t have it that we are not helping enough people and then, on the other hand, that we are. What we have said is that this has always been for people who were not in work or those on low incomes. What we have done is slightly raise the threshold, and now more children who need free school meals are getting them. That is something that this Conservative Government are doing. I would also like to welcome the rise in employment in the last quarter in the south-west area and the hon. Gentleman’s seat by another 48,000 people. That is more people in work who can help their children.

[Mr Speaker]

A short sentence of Walsall eloquence—Eddie Hughes.

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[Ms McVey]

In Scotland we have seen a rise of 207,000 people in employment. This is what universal credit is doing too: making sure people are in work, and making sure they are in work quickly. We are sorting them, and work coaches are supporting them. We have given Scotland the flexibility to do additional work on the ground.

[James Cartlidge (South Suffolk) (Con)]

Auto-enrolment has been a great success, but does my hon. Friend agree that we need to do more to encourage the self-employed into it? What steps is he considering in that regard?

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[Maggie Throup (Erewash) (Con)]

On Saturday, I was delighted to launch a new bus route from Ilkeston to East Midlands airport, through Long Eaton and Sandiacre, which will undoubtedly open up more opportunities in terms of the many vacancies in the logistics hubs at the airport. Does my right hon. Friend agree that transport providers and employers working together will really make sure that my constituents have every job opportunity?

[Ms McVey]

It has always been about everybody working together. This Government, and this Department in particular, want to make sure that we step outside the silos and work across Departments and that work coaches stand outside what they need to do to make sure that they are reaching into people’s lives to help them progress.

[Helen Goodman (Bishop Auckland) (Lab)]

What is the Minister going to do about employers such as the one in my constituency who sacked a lot of young people without paying them the wages they were owed, with the result that one of them—a pregnant woman—ate nothing but Smash for three weeks?

[Ms McVey]

The best thing the hon. Lady could do is give us the name of that employer so that we can see what he has done and what he is doing, because this Government will not stand by any bad employer. We want to help workers and make employers do the right thing.

[Philip Davies (Shipley) (Con)]

We often hear from Opposition Members that all the new jobs created are zero-hours contract jobs. Given their track record on accurate information, will the Secretary of State set out what proportion of workers are on zero-hours contracts and how many new jobs are actually full-time jobs?

[Ms McVey]

Zero-hours contracts or flexible contracts—whichever way people want to see them—are at 2.8%. This year, over 90% of jobs are permanent. From 2010, there have been 75% permanent and full-time jobs. Most of those this year are professional.

[Kate Green (Stretford and Urmston) (Lab)]

A number of childminders in my constituency are reporting problems with late payment from their customers who are in receipt of universal credit, partly because of the waiting time for the first payment and partly because of bureaucratic requirements. Will the Secretary of State or one of her colleagues meet me to discuss this pressure on childminders?

[Ms McVey]

We would be happy to meet the hon. Lady, who does so much in this area. What I will say, however, is that I do not understand why Opposition Members voted against advance payments up to 100%, why they voted against the two-week home payment and why they voted against the extra support we are giving.

[Tom Pursglove (Corby) (Con)]

On Friday, I met a number of Corby employers who were all raving about the apprenticeship route. What steps is the Department taking to promote apprenticeships to jobseekers?