Social Security

Esther McVey Excerpts

Tuesday 10th September 2024 Commons Chamber

[Esther McVey (Tatton) (Con)]

Who would have thought that a Prime Minister not even in office for 10 weeks would be so out of touch with the public? Yet here we are, and yes this Prime Minister is so out of touch, along with the Chancellor and the whole of the Cabinet who are going along with and supporting this cruel policy. The Chancellor should be under no illusion: the public know that this decision to rob millions of pensioners of their winter fuel allowance, for which the Government have no mandate, has nothing to do with economics and everything to do with cynical political calculation.

The haste with which the change is being made is breathtaking. All benefits regulations are required by law to be considered by the independent Social Security Advisory Committee. That is generally done in advance of the legislation being laid. In this case, however, the Labour Government has opted for the urgency provision, which allows SSAC consideration to be retrospective. Some say that is bypassing SSAC scrutiny. As well as evading that scrutiny, where is the Government’s impact assessment on removing winter fuel payment from these pensioners, particularly in the light of the latest information that bills will be rising by £150 this year?

[Neil O'Brien (Harborough, Oadby and Wigston) (Con)]

There are 18,900 people losing winter fuel payments in my constituency, and many of them are among the 800,000 people who are not eligible for pension credit, but are below the Government’s own poverty line. What are they supposed to do?

[Esther McVey]

Well said. What is worse, that this Labour Government are so out of touch so early on in their government, the unnecessary haste that this change is being brought in with, the lack scrutiny of this policy, or Labour’s breathtaking hypocrisy? Back in 2017, when the Conservative manifesto stated that we would means-test benefits, the Labour party’s reaction was one of horror, saying that this could not be done and publishing research showing that up to 4,000 pensioners’ lives would be at risk and that pensioners would struggle to heat their homes. The Conservatives did not do it.

What are we seeing here? We are seeing that a Labour party in office ditches its beliefs and its research. This Government have been telling pensioners that they did not want to do this, but that tough financial decisions must be made. We all know, however, that that is poppycock, as it was not the Government’s message to the already highly paid train drivers. When they met them, money was no object. They said, “Have as much as you want.”

The public are not as stupid as this Government think they are. This is good old-fashioned pork barrel politics, taking money away from the people who the Chancellor thinks do not vote Labour, such as pensioners, to hand to people who she thinks do vote Labour, such as train drivers and public sector workers. Millions of pensioners, many struggling to make ends meet, are being sacrificed in this political strategic game.

By announcing the scrapping of the forthcoming and long-awaited cap on care costs, as well as laying the ground to remove the council tax allowance for single people, Labour has basically declared war on pensioners, which will be neither forgotten nor forgiven. Our pensioners deserve better than this. It is time that Labour reversed this decision and restored the winter fuel allowance to all pensioners.

British Sign Language

Esther McVey Excerpts

Tuesday 17th October 2023 Westminster Hall

[Chloe Smith (Norwich North) (Con)]

I beg to move,

That this House has considered the British Sign Language report 2022 and implementation of the British Sign Language Act 2022.

It is a pleasure to serve under you, Ms McVey—or is it Dame Esther nowadays?

[Esther McVey (in the Chair)]

It isn’t, but thank you for that sharp elevation—I hope people are listening.

[Chloe Smith]

Thank you, Ms McVey—I wanted to get that correct.

I first declare an interest relevant to the debate: I have worked with the RNID, the Royal National Institute for Deaf People, for some time. Currently, I am in discussion with the chairman and chief executive of the charity about how I can continue to support it through my last term in Parliament and beyond. That is not yet at a stage that I have been able to register it formally under chapter 1 of the code of conduct, but I declare the interest under paragraph 5(c) of chapter 2—although unpaid, it is clearly an “expected future interest” and clearly relevant to the debate.

I was pleased to see the first report under the British Sign Language Act 2022 published in July this year. That is why I called for this debate about the Act and its implementation, and what the report tells us about progress.

Let us look back to the autumn of 2021. Rose Ayling-Ellis was on our screens in “Strictly Come Dancing”, helping millions of mainstream viewers to see that deafness and signing is no barrier whatsoever to participation. Here in Parliament, Rosie Cooper was promoting a private Member’s bill to recognise British Sign Language as a language in the UK. As the then Minister with responsibility for disabled people, I was determined to work with her to achieve that. The result of our cross-party work, deeply rooted in the deaf community, is the BSL Act 2022.

Why did we need to do that? It was because, for decades up to that point, deaf people have suffered exclusion. Linguistic exclusion leads to social and educational exclusion, and it leads to worse services and to being left out in the workplace. That is wrong, and the Act is there to help put a stop to it in Britain. I was deeply proud to play my part, but it was just the start.

Today’s debate is about implementing all those good intentions. The journey begins now to achieve better for deaf people, built on official status for a vibrant and historic language, and on improvements in communications and public services. I urge hon. Members to look at the work of the British Deaf Association, in particular its 10-year strategic vision—rooted in consultation with the community and in learning for its own organisation—which sets out aspirations for deaf people in the UK for the next decade and beyond, following the historic legal recognition of the language. Deaf people and BSL allies alike are reaching for a more inclusive Britain, where all deaf children, young people and adults can thrive.

In my own instance, a deaf family member inspired me to take action. My father left the work that he loved, his profession and his passion, because he could no longer hear his customers. As an MP, I have seen how some constituents have struggled to get basic public services such as accessible health appointments or education.

I hope that the Act will provide a clear light by which to navigate. Its symbolism is central, but its practicality is essential, too—the guidance that is to be produced must improve public services. I also hope that the Act will spur greater understanding and accessibility in private services and throughout society. Our task today and in years to come is to closely scrutinise the delivery of progress in promoting and facilitating BSL within and beyond Government. I will ask three sets of questions of the Minister.

First, let us look at the reporting duty and the inaugural report. The report captures data on BSL usage in Government communications for the first time. It sets a baseline for ministerial Departments from which they can improve their promotion and facilitation of BSL in the months and years ahead. I am glad that the Government recognise that accessibility is essential in Government communications and engagement. That is of course so that everyone has access to important information and can engage with the Government, and indeed Parliament, on issues that will affect them.

Of course, I include Parliament in this process, and I am heartened to have seen the efforts of interpreters here—I understand that today’s debate is of course being supported by signing provision. That will make sure that a growing proportion of this institution’s work is signed and accessible. But there is more to do, including by Government. The report reveals some important good practice and case studies but also some concerning gaps—literally zeroes on the page. What will the Minister do to ensure that BSL is provided with all public announcements about policy or changes to the law, all publications such as plans, strategies and consultations, and in all Government press conferences, social media and websites, including at the highest levels of Government, led by the Prime Minister, for very significant communications that affect all citizens?

I am encouraged that the report sets out going further than the 2022 Act demanded. For example, although the Act requires a BSL report to be published only once every three years, the Government have said that they intend to do so every year for the next five years, which is welcome. It is also welcome that my successor as the Secretary of State for Work and Pensions will ask each ministerial Department to produce a five-year BSL plan, setting out how they intend to improve the use of BSL within their Departments. There will be a five-year plan and an annual checkpoint for each year of those five years, which I hope will help to drive improvement, highlight successes and ensure accountability. Therefore, today I ask the Minister: is he confident that the Departments are doing that work? What steps he is taking now to drive progress in this year, which we will all want to see in the report that he would wish to be able to present next July? For example, will he set targets for Departments?

It is good to see reference to ministerial responsibility to improve BSL use. Will the Minister give an assurance today that the ministerial disability champions have now met, that—as promised—July’s report has been discussed at their meeting, and that these Ministers, who after all have been asked by the Prime Minister to provide a personal lead and commitment to championing accessibility and opportunity for disabled people within their Departments, have all given him clear plans for doing so? Will he also give us an update on how he plans to use his forthcoming disability action plan to respond to the needs of deaf people and say what level of response he has received to the consultation, which closed earlier this month?

Secondly, let us consider the guidance that needs to be produced. When legislating, we were clear that there must be an advisory board that will ensure that the deaf community is at the heart of the Act’s effect. I am pleased that the Minister has been able to take this forward, completing the necessary appointments and launching the board. As July’s report confirms, the BSL advisory board will advise the Government on the guidance detailed in the BSL Act, and its implementation, to best represent the deaf community. This guidance will be published by the Secretary of State for Work and Pensions during the next BSL reporting period. I expect that we will see it between now and next April, although it would be helpful if the Minister also confirmed today that he intends to table the statutory instrument that I understand is required to enact part 3 of the BSL Act, which will allow Departments to publish that guidance.

Will the Minister also please give the House an update on the expected contents of that guidance and tell us what priorities he has received from the deaf community? I anticipate that those priorities will span every part of public services, because we know that our deaf constituents face compound problems. For example, the National Deaf Children’s Society reports:

“Access to family sign language support is currently a postcode lottery with too many families forced to pay to learn how to communicate with their own child.”

There are examples from people I chatted with at the Norfolk Deaf Festival earlier this year. Some deaf constituents are being advised that they must telephone the audiology department at one Norfolk hospital. Another constituent had a month-long in-patient stay in another Norfolk hospital, which must have been a lonely, distressing and indeed dangerous experience, because I am told that no signing was provided. I have, of course, pursued both these issues locally.

I can give a further example from a small business in Norwich, which has used AI to provide digital BSL services. It says:

“Many larger enterprises do not see a commercial value in BSL translation for their customers. Some BSL-dependent banking customers got banking products using interpreters and relay services, but when it was time for changes in terms and conditions, these were only offered in written English. As a direct result, people have suffered unnecessary debt and”—

my constituent was told—

“some have lost their homes.”

Building on the ministerial disability champions’ pledge to discuss the communications data arising from the Act and the first report, how will Ministers work together to enact effective improvement in what a person can expect when they attend a hospital, start school, look for a job, or look for private goods and services?

[Chloe Smith]

My hon. Friend, who is extremely well qualified, makes absolutely the right point. Indeed, I will urge the Minister not just to look at introducing a GCSE in BSL, but to tell us how he is getting on with doing so, because is a long-standing piece of work that the Government have focused on for some time. Actually, this goes much further than merely one qualification in the education system. What about the deaf children who start school at five? What about those who are learning to speak between, say, 18 months and pre-school age? From the perspective of those deaf children and their families, doing a GCSE would look like a very long time away.

Let me return to my questions for the Minister. What data do the Government collect on BSL users, and does he have plans to improve it? Will he also set out how he hopes the board will work and how it will respond to feedback? I have heard some deep concerns about representation on the board, and the BDA, which I have mentioned already, has said:

“a common theme emerging from the UK Deaf community is a desire for more Deaf leadership in BSL service delivery; for these services to be delivered by Deaf BSL signers themselves; for support to enable Deaf-led professional planning and budget setting on BSL issues.”

Will the Minister give us an update on progress in increasing the number of interpreters? That is a key issue for the deaf community. Will he give us a brief update on how Access to Work is being improved for deaf and other users? That was another key point heard throughout the passage of the Act, and it is fundamental to the work of his Department.

I want to ask the Minister a final set of questions about how the Act may be used to drive up standards via redress. We knew at the time that the BSL Act must work in tandem with existing legislation—most obviously the Equality Act 2010, which requires reasonable adjustments to be made by a wide range of people and sectors to ensure that disabled people have equal access to goods and services. What has the Minister learned so far about how the architecture is working together? Can he share case studies—either today or by writing to me and, no doubt, the chair of the all-party parliamentary group on deafness, the hon. Member for Nottingham South (Lilian Greenwood), who is present—that show how individuals have used the BSL Act and the Equality Act to get the right standard of access or service? Will the Minister explain how our constituents will be able to get redress in future, and how the tandem legislation will hopefully enable us to stop indignities and injustices happening again and again to deaf people? Does he agree with charities such as the RNID that the guidance should outline the minimum standards that BSL users are entitled to as a reasonable adjustment under the Equality Act? That would force service providers to meet the needs of deaf BSL users and increase the chance of people using legal redress when providers have failed to do so.

Ms McVey, thank you for allowing me to open today’s debate. I really welcome the fact that a number of right hon. and hon. Members from different parties, and from all parts of the United Kingdom, have come to speak for their deaf constituents. We all celebrated the British Sign Language Act and would all agree that hard work is needed to ensure that it is properly implemented and that our constituents benefit from the opportunities it presents. Only with granular focus such as this and determined attention will we see the strides we need in early years, education, employment, healthcare, social care, business, the workplace and the community. There has been linguistic exclusion for too long, and we can do better.

[Esther McVey (in the Chair)]

I will call the Front Benchers no later than 3.30 pm, after which Chloe Smith will wind up.

Oral Answers to Questions

Esther McVey Excerpts

Monday 23rd January 2023 Commons Chamber

[Mims Davies]

Over 8 million households on eligible means -tested benefits will receive additional cost of living payments up to a total of £900 in the year 2023-24, with more to come. The Government are committed to reducing poverty and supporting low-income families, and we will spend £111 billion on welfare support for working-age people between 2022 and 2023. But let us balance this up, because progression is not only about benefits. I say this as a former Employment Minister, and with the current Minister for Employment, my hon. Friend the Member for Hexham (Guy Opperman), sitting near me. With 1.16 million vacancies across the UK, our focus is firmly on supporting families, both in and out of work, to progress in work.

[Esther McVey (Tatton) (Con)]

While understanding the concerns of Opposition Members, can I ask the Minister, when making changes to the benefits system, always to be mindful of ensuring that work pays, given the need to get more people back into the workforce?

[Mims Davies]

My right hon. Friend is right. Whether it is cutting the taper rate, managing the AET, looking at in-work progression or focusing on people dropping out of the labour market at 50-plus, and whether it involves single parents such as myself or other people who need help to progress in work, we are focused on work paying. That should always the balance.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Work and Pensions (Laura Trott)]

Automatic enrolment has been a huge success. I know that my hon. Friend does a huge amount of campaigning on this, and we remain committed to implementing the 2017 reforms in the mid-2020s.

[Esther McVey (Tatton) (Con)]

During the lockdowns, conditionality was, understandably, relaxed, but I fear that it has not returned to its pre-covid levels. Can the Secretary of State assure me that those pre-covid levels of conditionality, which are so vital to getting people back into work, will return as a matter of urgency?

[Mel Stride]

My right hon. Friend is absolutely right. Conditionality plays a central role in the way in which the benefits system works and our drive to get people back into work. She is right that it was relaxed during the covid crisis, and I think it is right that it was, including in relation to people coming in for face-to-face appointments. That has now been reinstated and I will be looking at conditionality as part of my review of economic inactivity.

Universal Basic Income

Esther McVey Excerpts

Wednesday 15th June 2022 Westminster Hall

[Several hon. Members rose—]

[Esther McVey (in the Chair)]

Order. I am mindful that there will be a vote at about 5.5 pm, and we want to get to the Front-Bench speakers no later than 5.10 pm.

--- Later in debate ---

On resuming—

[Esther McVey (in the Chair)]

The sitting is resumed and the debate may continue until 5.55 pm.

--- Later in debate ---

[Alison McGovern]

I will set out the rest of my argument about what I think we should do to help to improve people’s incomes. And I will do so very quickly, Ms McVey.

People have mentioned the various pieces of research, which are important, because they tell us about how people respond to different systems. However, I think that this broken jobs market that we now face, whereby businesses are crying out for staff and there are vacancies left, right and centre, but too many people are stuck in work that is far too low-paid, shows exactly what is going wrong.

The problem with what the hon. Member for Grantham and Stamford (Gareth Davies) said about work having been proven to be the best route out of poverty is that, for the past decade, the Tory Government have set out on a mission to prove that that is not the case. We need a social security system that does what it was designed to do—help people through different life stages when they need it, and help lift people out of disadvantage and into the dignity of work. There will always be people who are unable to work, but the vast majority of people want to be in work.

It is not obvious to me that there is a proposal on the table that does either of those things. Labour’s approach will be different. We need to change jobcentres—

[Esther McVey (in the Chair)]

Order. I need to hurry you along, because we still need to hear from the Minister and have the wind-up at the end.

[Alison McGovern]

My apologies, Ms McVey.

We need to change jobcentres to help people move on and move up in work, and progress our country to real full employment that involves disabled people and everybody in our country. That would be a plan towards progress.

[Esther McVey (in the Chair)]

Minister, will you be mindful of the need to leave a minute at the end for the Member in charge to wind up the debate?

Oral Answers to Questions

Esther McVey Excerpts

Monday 19th November 2018 Commons Chamber

[Amber Rudd]

Yes, it is a very important point and one that we are well aware of. We cannot assume that everybody can, as the hon. Gentleman puts it, work a computer. We have made provision in the arrangements to ensure that people can have access and that job coaches can work with people remotely via telephone and also engage in their communities, perhaps in different places from the jobcentre. However, I will keep a careful eye on this issue to ensure that we are delivering a truly comprehensive service, so that everybody, whether they can work a computer or not, can access it.

[Ms Esther McVey (Tatton) (Con)]

May I warmly welcome my right hon. Friend to her position and wish her every success? She will know that youth unemployment has fallen by half since 2010, so does she agree that ours is the party of opportunity and the party for young people?

Universal Credit

Esther McVey Excerpts

Monday 5th November 2018 Commons Chamber

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

With permission, Mr Speaker, I would like to make a statement on the changes announced to universal credit in the Budget last week and on the draft Universal Credit (Managed Migration) Regulations 2018, which we are laying in the House today.

The Chancellor announced a substantial package at the Budget to ensure that millions of people keep more of what they earn, and vulnerable claimants are supported when they move to universal credit. In total, this package will be worth an extra £4.5 billion across the next five years. I pay special thanks to all the colleagues, charities, third-sector organisations, Jobcentre Plus staff and claimants who fed back to me in order to build this package of support to ensure that universal credit is a fair system, supporting thousands who cannot work as well as thousands who can. I also thank my right hon. Friends the Prime Minister and the Chancellor for their support to deliver these measures.

Make no mistake: this is a Department that listens and a Department that will continue to listen, adapt, change and deliver. We will put an extra £1.7 billion a year into work allowances, increasing the amount that hard-working families can earn by £1,000 before universal credit is tapered away, providing extra support for 2.4 working families—I mean, 2.4 million working families. [Laughter.] Of course, the Opposition do not like helping 2.4 million working families, and they are laughing because we help and support people into work.

The work allowance increase was welcomed not only in this House, but among charities. The Child Poverty Action Group said:

“The work allowance increase is unequivocally good news for families receiving universal credit”.

The Joseph Rowntree Foundation said that this extra investment

“will help make universal credit a tool for tackling poverty”.

And we have gone further, recognising the genuine concerns raised about the support we were offering people, especially the most vulnerable, when they moved to universal credit.

We have made a further £1 billion package of changes, providing two additional weeks of Department for Work and Pensions legacy benefits for those moved on to universal credit—a one-off non-repayable sum that will provide claimants with extra money during the period before they receive their first universal credit payment. This is on top of the two additional weeks of housing benefit announced at autumn Budget 2017 and put into place this year.

We will also support the self-employed in moving to universal credit. We will open up a 12-month grace period before the minimum income floor is applied, supporting 130,000 self-employed claimants—because we are the party of business; the party of aspiration. We will support those in debt by reducing the normal maximum rate at which debts are deducted from universal credit awards from 40% to 30% of standard allowances. This will help over 600,000 families to manage their debts at any one point when roll-out is complete, providing them with, on average, £295 extra a year as their debts are repaid over a longer period.

This is targeted support to help work pay and support the vulnerable, which is why today I lay regulations to deliver the next phase of universal credit—managed migration, through which people will be moved on to universal credit. That is a move from a system that trapped people on benefits and created cliff edges at 16, 24 and 30 hours with punitive effective tax rates of over 90% for some. Under Labour, between 1997 and 2010, benefit spend went up by 65%. In 1997, households were paying £5,500 in taxes to fund the benefits system—and by 2010, the figure had risen to £8,350. The Conservative party was voted into office to manage the country’s finances and get them under control, and also to make sure that the benefits bill was affordable and sustainable for the future. While Labour Members may hanker for the dark old days of trapping people on benefits, excluding them from the opportunity of work and getting on in life, and at the same time delivering a big bill to the taxpayer, we do not. Under this Government, 3.4 million more people are in work, and the vast majority of those jobs are full-time permanent roles. This means that we have created more new jobs in the UK since 2010 than France, Spain, Ireland, the Netherlands, Austria and Norway combined, alongside creating a welfare system that supports those who need it.

Through universal credit, about 1 million disabled households will receive about £100 extra, on average, per month through more generous support. The Universal Credit (Managed Migration) Regulations 2018 will, in addition, protect 500,000 people’s severe disability premium at the point of migration, and deliver transitional protection for those we move to ensure that, at the point of moving, those managed-migrated have their entitlements protected. We will take a measured approach to delivering managed migration, taking our time to get it right and working with claimants to co-design it.

We have taken on board, and will continue to do so, the advice of experts and charities such as the Social Security Advisory Committee, whose report on the regulations we have published, along with our response, today. We have accepted, in full or in part, all but one of its recommendations—and the one we did not accept is because we want to make it more generous. I pay tribute to the hard work of the SSAC in scrutinising our regulations.

We have changed a key part of the regulations, as charities have asked me, MPs and the Department, relating to the minimum statutory notice period for people moving from their legacy award to universal credit. We have extended this period from a minimum of one month to a minimum of three months to allow claimants maximum time to prepare and make their claim before their legacy award expires. Alongside this, we have unlimited flexibility to extend claim periods for people who need it. We will backdate any claimant who has missed the deadline date but has made a claim within a month of the deadline day passing. We will test a variety of communication methods, including advertising campaigns, face-to-face communication, letters, texts, telephone calls and home visits, to provide support for claimants during managed migration. We will constantly review our approaches, engaging fully with charities, experts, claimants and all Members of the House. I commend this statement to the House.

[Margaret Greenwood (Wirral West) (Lab)]

I thank the Secretary of State for advance sight of her statement. I would like to pay tribute to all the individuals, charities and Members of the House who have been holding the Government to account over their chaotic and damaging universal credit programme, which is pushing families into poverty.

In June, the National Audit Office published a damning report on universal credit. We know that the roll-out of the benefit is leading to people building up debt and rent arrears or being forced to turn to food banks for help. The Budget last week did little to address the very long wait for payments, which is causing significant hardship. Despite that, the Government are now planning to start the next phase of the introduction of universal credit, which they call managed migration, involving the transfer of 2.87 million people on to it.

Under the draft regulations, existing claimants will be sent a letter saying that their benefits will stop and they will need to make a new universal credit claim by a specific deadline. It is wholly unacceptable that the Government are shifting responsibility for ensuring that people get the help they need away from the Government and on to the shoulders of nearly 3 million claimants. It is no wonder that 80 organisations representing disabled people are calling for the Government to change tack. Learning disability charity Mencap has said that the proposals leave disabled people

“vulnerable to having their benefits stopped before they have made a successful claim”.

More than 400 organisations have responded to the Social Security Advisory Committee’s consultation on the managed migration regulations—a record number for the committee, which demonstrates the strength of concern about this issue.

Parliament is being asked to approve regulations that it may have very little chance at all to scrutinise and debate, even though the details of how the process will take place are not yet settled. When asked by the Chair of the Work and Pensions Committee on 18 October whether the regulations would be debated, the Minister for Employment answered:

“We need to have a debate in the House.”

It was clear from the context that the Chair meant a debate in the main Chamber. However, the shadow Leader of the House raised the issue at business questions on 11, 18 and 25 October without receiving a clear assurance that that would be the case. That is all the more important since Government Members make up a majority of the MPs in Committees, even though they do not have an overall majority in Parliament.

Let us step back and get a broad view of the Government’s supposed flagship social security programme. Universal credit was supposed to lift 350,000 children out of poverty. Instead, according to the Joseph Rowntree Foundation, an extra 1.2 million children may be growing up in poverty by the end of this Parliament. Universal credit was supposed to deliver work incentives and help more people into employment, yet the NAO says that the Department for Work and Pensions will never know whether universal credit leads to more people in work. Universal credit was supposed to simplify the social security system, but instead, around three in 10 claims of universal credit are closed and not paid, within a system that is complex and that people find difficult to navigate. This statement does nothing to address that.

The Government claim that 1 million disabled households will receive an extra £100 a month as a result of universal credit. What the Secretary of State has failed to tell the House is that the same report by the Office for Budget Responsibility reveals that around 1 million sick and disabled households will lose an average of £2,608 a year, or £217 a month.

Universal credit is failing. The Opposition have consistently called on the Government to stop the roll-out, but the Government are pressing ahead, despite the terrible hardship it is causing. We have a right to ask questions on behalf of our constituents, including whether the universal credit managed migration regulations will be debated in full on the Floor of the House so that all MPs get a chance to scrutinise and debate this critical draft legislation.

The Secretary of State says that the Government have accepted all but one of the Social Security Advisory Committee’s recommendations. That is highly questionable. For example, what new action will the Government take to support people who struggle to make and manage a claim online? Will the Department publish the more than 400 responses to the Social Security Advisory Committee’s consultation, to ensure maximum transparency? The Secretary of State must assure the House that there are sufficient safeguards in place to ensure that no existing legacy benefit claimants end up falling into destitution and that none falls out of the social security system altogether.

Given the potential impact of the draft regulations on claimants’ incomes, the large number of people affected and the strength of opposition to the proposals in their current form, it is a matter of real concern that they will receive such little scrutiny by Members. Members are extremely concerned about the impact that universal credit is having on people living in their constituencies. They must be given the opportunity to debate and vote on these regulations on the Floor of the House.

[Ms McVey]

While the Opposition cannot bring themselves to commend the extra £4.5 billion going into universal credit, let me read out what some independent charities have been saying. The Resolution Foundation has hailed this a “very welcome” £1.7 billion commitment. The Joseph Rowntree Foundation has said that this extra investment is

“a tool for tackling poverty”.

The Trussell Trust has talked about

“significant improvements that will make a real difference to many people supported by universal credit”.

The Child Poverty Action Group called this

“unequivocally good news for families receiving universal credit”.

Other charities have been saying that the Department is now listening to what claimants, charities and MPs are saying. The Trussell Trust has said that. Gingerbread has said that. Mind has said that. Mencap has said that.

I would also point out that an extra 1 million disabled people will be getting an extra £100 a month, and that 700,000 people who did not get all they should under the legacy benefits will get nearly an extra £300 a month. There are now 3.4 million more people in work. That is what we do: we help people into work. Youth unemployment has gone down by 50% since 2010—that gives young people a future, it gives them hope and it gives them a job—and that is happening under this Government.

I came into politics for social mobility. Social mobility is about moving forward and getting a job. There is no social mobility on benefits—there is no mobility on benefits. That is what this party believes in. It is the way to get out of poverty. That is why we welcome the extra £4.5 billion. The Opposition have asked for a debate on the Floor of the House, and, of course, there will be a debate on the Floor of the House. We believe in transparency. We are open and straight talking. We say it as it is.

We will be co-designing what happens with claimants. In the words of the publication that the OBR has put out on the Budget, by 2023-24 we will be spending an extra £2 billion on universal credit than on the system it replaces. I want to say a final word on debt under Labour: between 1997 and 2010, benefit claimants’ debt to local authorities increased by £1.8 billion through overpayments and errors in the legacy system, and £5.86 billion of debt was accrued on tax credits. That is a shameful record for the Opposition of putting claimants into debt on benefits and tax credits.

[Several hon. Members rose—]

[Justine Greening (Putney) (Con)]

I very much welcome the additional investment in universal credit in the Budget. Like many Members, I have met the DWP, Jobcentre Plus and citizens advice bureaux locally to talk about the roll-out of universal credit. It is obviously hugely important that people avoid going into debt unnecessarily, and I very much welcome the co-design approach to managed migration that the Secretary of State has set out. Will she say which groups are likely to be migrated first, and on what basis?

[Ms McVey]

I thank my right hon. Friend. For a year from next July we will be having a trial period or test period, working with 10,000 claimants to see exactly the way in which it should be done—for example, should it be done for the most vulnerable groups or should it be done geographically?—and to make sure that we get it right. That is how we work: we make sure that it works; we do not just go forward with an idea—[Interruption.] There is chuntering from the Opposition Front Bench. We will work with claimants to make sure it works for them.

[Kirsty Blackman (Aberdeen North) (SNP)]

I thank the Secretary of State for advance sight of the statement. The work allowance boost that we are being told we should welcome only undoes or reverses half the cut that was made in 2015. It is like taking £100 away from somebody, giving them 50 quid back and saying, “You should be grateful that I’ve given you 50 quid back.” The reality is that people are still worse off. The benefit freeze is still in place.

The sanctions regime is also still in place. I am particularly concerned about the methods of communication for universal credit. I have seen a number of people who come to my surgeries with mental health problems particularly—they cannot open letters or deal with having to jump through the hoops that are put in their way—who are then sanctioned because they are literally unable to jump through those hoops. I hope that the Secretary of State will look at all these issues. She has mentioned communication methods, and I very much hope she will put that at the centre of the decision-making process for communication.

On the exact amount of money that has been allocated for universal credit, it seems to me that nothing has been done on the basis of how much people actually need to live on. If it had, there would not be a huge increase in the number of people going to food banks and there would not be the incredible number of sanctions that we see. Rather than the Treasury deciding how much money should go to universal credit and the Department for Work and Pensions then divvying it up, it would be better to make decisions on the basis of how much people need to live on and what amount of money would encourage people to get into work.

We need to ensure that people are not going to food banks, that families are not in poverty and that young people are not starving as a result of the Government’s policies.

[Ms McVey]

As I said previously, when we came into office, we had to take an overview of Government spending, full stop. We were voted into office to get this country’s finances under control. One of the decisions that we had to make was on the size of the benefit bill because it had grown by 65% under the previous Labour Government. We took hold of that, and decisions were made across the board—I have never shied away from that. Again, in 2015, further decisions were made after a general election. The Opposition did not vote against the changes and cuts. Their Whips’ advice on that day was to abstain. Some broke ranks, but generally they did not.

Those changes are now coming through, but I said that I would go out, meet people, listen, learn and see what we could do and afford, and that is why an extra £4.5 billion has gone into universal credit. I look at what people are saying and why they have welcomed the increase. I reiterate that there are 3.4 million extra people in work and that we are targeting the money at the most vulnerable.

The hon. Lady is right about communication, which is key. That is why we will work with charities to get it right.

[John Howell (Henley) (Con)]

In easing the passage to universal credit, there is a great role for jobcentre staff. The problem is that I do not have a jobcentre in my constituency. Will my right hon. Friend bring forward the idea of mobile jobcentres to help the transition and manage the process?

[Ms McVey]

My hon. Friend makes a very good point—he has probably been reading my mind. Outreach work is key: how do we get to the most vulnerable, whether people in isolated parts of the country or those with learning difficulties or transport difficulties? We will look at outreach work and perhaps a mobile bus. We should look at new, good ideas for connecting with our claimants.

[Frank Field (Birkenhead) (Ind)]

I thank the Secretary of State for the money she managed to claw back from the Treasury—I advise her for her own safety not to take routes home in the dark that pass the Treasury. A crucial element of her statement was the one-off, non-repayable sum for claimants who have been transferred to universal credit. Will she give the House an assurance that the sum—non-repayable, therefore incurring no debt—will be equivalent to the sorts of sums people would get if they were already on universal credit?

[Ms McVey]

We have made sure that that will be people’s benefit going forward. As I said, it is the sum that they need when they adjust from two to four weeks and it is, as the right hon. Gentleman said, non-returnable. That is to ensure that people can balance the money when moving from a two-week to a four-week payment. It is extra money.

[Philip Davies (Shipley) (Con)]

I know better than most how hard the Secretary of State worked to get support from the Chancellor in the Budget. I commend her for doing that. Will she assure my constituents that the welfare bill will not once again spiral out of control, as it did under the previous Labour Government, taking money away from hard-working taxpayers?

[Ms McVey]

The Conservative party is always about balancing fairness for everybody: fairness to the taxpayers paying the bill as well fairness to those getting benefits and those going into work. I thank my hon. Friend because when I met his Trussell Trust team in Shipley, one of their first requests was that the maximum rate at which deductions can be made should reduce from 40% to 30%. I am glad that I can deliver that today.

[Janet Daby (Lewisham East) (Lab)]

I strongly disagree with the Secretary of State. Universal credit is not getting residents out of poverty. I say that because a constituent of mine, who has mental health problems, contacted me this morning. He was moved over to universal credit and fell into housing arrears, which is exacerbating his mental health condition. It is very distressing for him. For those people unable to self-identify for managed migration, how will they acquire additional support? I do not think it is good enough that people are being tested out and then this is failing them.

[Ms McVey]

If the hon. Lady would like to meet to discuss what has happened to her constituent and how we can support him, I am more than happy to do so. Equally, I know that a lot of people are coming to universal credit with debt—it is not due to universal credit, but what they come with. Maybe together we can work to support that person.

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

I congratulate the Secretary of State on securing additional funding. In the detail for transitional provisions, she said that there would be two additional weeks of legacy benefits for those moved on to universal credit, which is a one-off, non-refundable payment. That may take time to sink in on both sides of the House, but can she confirm that this is additional money? Does she, like me, look forward to hon. Members on both sides of the House welcoming it and supporting it?

[Ms McVey]

I am glad my hon. Friend understands that this is additional money. My concern was how people, who are used to getting paid not monthly but fortnightly, would manage to cope with the change. That is why we have brought in the measure. Hopefully that money can help them if they have debt, because it is additional money to their household.

[Ruth George (High Peak) (Lab)]

When cuts to universal credit were voted through by the House, MPs were promised that everyone would receive transitional protection, but the delay to managed migration means that less than half the 7 million families affected will receive it and 3.2 million families will still be over £2,000 a year worse off. Will the Secretary of State look again at the very wide criteria for changes of circumstances that are being used to transfer people from legacy benefits on to universal credit at an ever-increasing pace?

[Ms McVey]

If the hon. Lady had been here for the statement, she may have been able to follow this through. [Interruption.] A bit late coming in, as my hon. Friends have confirmed to me. [Interruption.]

[Matt Warman (Boston and Skegness) (Con)]

Universal credit rolled out a couple of weeks ago in my constituency. Does the Secretary of State agree that the money she announced today will make a particular difference to people in my constituency who are often paid weekly or fortnightly, rather than monthly? It is often they who are the most vulnerable and who need the most help.

[Mr Speaker]

Order. Just before the Secretary of State responds to her hon. Friend, I am sure that what she said she said in all sincerity, but I am 99.9% recurring certain in my own mind that the hon. Member for High Peak (Ruth George) was here at the start of—[Interruption.] Order. I am not debating the point with the hon. Member for North Dorset (Simon Hoare). [Interruption.] Order. No facial expressions are required. I am just telling him and the House the situation. The hon. Lady was here—end of.

[Ms McVey]

It seems a moot point on both sides of the House whether or not the hon. Lady was here, but that being the case she will know that we have put an extra £4.5 billion into the system to support transitional protection. That is exactly what a fair Government would do: provide the correct transitional protection.

[Mr Speaker]

I would quite like to lighten the tension on this matter. May I just say to hon. Members, for the avoidance of doubt, that perambulation in the Chamber from one row to another is not an entirely novel phenomenon? May I say to the hon. Member for North Dorset, who is an old friend in the House of Commons, that it is not uncommon? The fact that a Member perambulates from one Bench to another does not mean that that Member has exited the Chamber. As far as I am concerned, the hon. Lady did not exit the Chamber.

--- Later in debate ---

[Louise Haigh (Sheffield, Heeley) (Lab)]

The Secretary of State quoted the Child Poverty Action Group a couple of times, but she failed to mention that in the same press release, it also said that

“unless there is a further fundamental re-think of how universal credit works—and robust safeguards in place before it is scaled-up—people will continue to be pushed into debt and driven to food banks as part of their claim.”

Why did she omit that bit?

[Ms McVey]

Having met this charity group, too, I have said that I will work with it so that when we can, we listen, change and adapt what we need to do, which we have done so far since I have been in office, and we have the extra money through the Budget. That is what I am prepared to do.

[Mr Speaker]

I call a Member not given to perambulation—Dr Julian Lewis.

[Dr Julian Lewis (New Forest East) (Con)]

I am not certain what the attitude towards gambling is in the Secretary of State’s household, but would she care to place a bet that if the universal credit system is up and running and if, heaven forbid, the Labour party comes into government, it will be most unlikely to replace it with a mish-mash of different cross-cutting benefits such as existed previously?

[Ms McVey]

That is a very good question, because it seems that Opposition Members do not really know what they are going to do. It seems that the shadow Chancellor is going to get rid of it and the shadow Secretary of State is not really sure, but I know that in the Lords, they want to keep it. Perhaps when the next person stands up, they will tell us exactly what the Opposition Front Benchers are going to do with universal credit.

[Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)]

Universal credit is due to start in my constituency in just a few weeks’ time. Local families and local advice services and food bank volunteers are all deeply concerned about what this will mean and about their ability to provide support for people in the run-up to Christmas. Given that the Secretary of State has had to admit that there are a whole series of problems with the policy, which is why she had to bring forward a whole series of changes—even though they do not go far enough—will she please recognise the risks to families in my constituency at Christmas and halt this introduction now, so that we can make sure that more families are not pushed into debt and poverty at such an important family time?

[Ms McVey]

I wonder whether I could invite the right hon. Lady to go to see the work that Jobcentre Plus and the work coaches are doing and how they are helping an extra 1,000 people each and every day into work and, equally, how they are working with the most vulnerable to sort them. If I did what she said and stopped the roll-out, it would mean that 1 million disabled people who would possibly be getting an extra £100 would not be getting it, and that those 700,000 people who have not got the right amount of benefit—nearly £300 a month—would not be getting it.

[Bob Stewart (Beckenham) (Con)]

Can I just get this right? Is it correct that our country gives more family benefits to our people who need them than any other developed country? [Interruption.]

--- Later in debate ---

[Ms McVey]

Actually, for family benefits, my hon. Friend is correct—it is more than any advanced nation. We give more in benefits to families; he is correct.

[Nick Thomas-Symonds (Torfaen) (Lab)]

The full service roll-out of universal credit began in my constituency in July last year. People who are moving from legacy benefits on to universal credit are being made worse off. How on earth can a system incentivise work if it is making people in work poorer?

[Ms McVey]

What it is doing is supporting more people into work—3.4 million. By bringing in the work allowance—£1.7 billion a year—we are now able to focus extra support on families with children and supporting disabled people. Therefore, it will be even more beneficial to them going forward. That is positive support that we are giving through the Budget changes.

[Eddie Hughes (Walsall North) (Con)]

Universal credit came to Willenhall two weeks ago. Of the 157 cases we have had so far, only three are awaiting processing for payment. Can the Secretary of State explain why it seems to be going so smoothly, given that Opposition Members assure us it is a disaster?

[Ms McVey]

My hon. Friend, who has actually visited his jobcentre plus to find out what is happening on the ground, gives a truer reflection of what is happening on the ground. I have spent most of this year travelling from Brighton up to Angus in Scotland and meeting jobcentre coaches, and most of them are telling me that universal credit is working for the vast majority of people, but I wanted to make sure we got extra money from the Chancellor in the Budget to help the vulnerable people it maybe was not helping.

[Chris Stephens (Glasgow South West) (SNP)]

The Secretary of State will be aware that her Department has agreed with the Social Security Advisory Committee’s recommendations about telephone claims for universal credit, but we know that DWP contact centre staff are concerned that having to deal with such high call volumes might mean they cannot process claims. How many additional staff will be required in DWP contact centres to deal with telephone claims for universal credit?

[Ms McVey]

The hon. Gentleman raises a good point. That is another thing we will looking at during the managed migration, as we expand the system and more people come on to universal credit—how many more people do we need in call centres; how many more work coaches?—because we will need the right number to give a good service.

[Sir Desmond Swayne (New Forest West) (Con)]

rose—

[Sir Desmond Swayne]

“The Government has listened to the frontline. These are significant improvements that will make a real difference.” Who said that?

[Ms McVey]

My right hon. Friend has just said it. I have heard many charities saying that this is positive news. The Department is listening and bringing in significant support for claimants.

[Stephen Timms (East Ham) (Lab)]

Everybody claiming universal credit has to wait at least five weeks before being entitled to payments, including those being moved across from previous benefits. The Secretary of State referred to the additional two weeks of previous benefits announced by the Chancellor in the Budget. How can Ministers justify stopping all benefits for a period of at least three weeks for people migrating from previous benefits on to universal credit?

[Ms McVey]

It will be a continuum. The payment cycle will be going from two weeks to four weeks, and this is actually extra money. They will be getting two weeks’ extra money because they will be getting the full period they are entitled to when it comes along after four weeks. This is not giving them less money, or even part of their money; this is two weeks’ extra benefit.

[Simon Hoare (North Dorset) (Con)]

Some of the most vulnerable in our communities will always look to their citizens advice bureau for help and assistance on these matters. The announcements by our right hon. Friend the Chancellor last week, and confirmed by the Secretary of State today, are incredibly welcome. What plans do she and her Department have to explain to our local CABs the nature of the changes and the benefits that will accrue from them to ensure that some of the most vulnerable people in our communities have a happy experience of universal credit, not one like the Opposition describe?

[Ms McVey]

My hon. Friend raises a good point, and that is why we worked in partnership with Citizens Advice across the country—so it could help people get on to universal credit. We felt it was the correct thing to do. It works with the most vulnerable people—it knows them—and is a trusted independent group. That is why we chose it to work with.

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

I welcome the announcement on reducing the deduction rate for the repayment of debt, but 30% of someone’s benefit is still quite a lot to be paying back on debt repayment. Will the Secretary of State take seriously the suggestion in the report of the Work and Pensions Committee last week that debt advice becomes a core part of the universal support offer?

[Ms McVey]

The hon. Lady, who knows a lot about this subject, is correct about the debt advice and the support that is available. We are building in measures to help more people to obtain debt advice. They often do not like asking for it as such, so we are going to change the term to “money advice”. Many people do not like to admit that they are in debt, even if they are.

Let me clear up one point. We are not talking about 30% of the entire benefit; we are talking about 30% of the standard allowance. Obviously, that does not include housing or childcare. It is a significant reduction in the rate, led by calls from the Trussell Trust.

[Maggie Throup (Erewash) (Con)]

Universal credit has already been fully rolled out in my constituency, and for the majority of people it is working; but, more important, more people are working too. Does my right hon. Friend agree that universal credit can also empower people to work more hours, which has got to be good for their self-esteem?

[Ms McVey]

My hon. Friend is right. This benefit is about empowering people. It is about helping them to take on work, or extra work. Under the legacy systems, people were locked out of work even if they wanted to do it. We know that there are about 113 million extra hours of work out there. We also know that there is a record number of vacancies in the economy. We can help people, get them a career, get them on the jobs ladder, and get them doing what they want to do in this world.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

Analysis of the universal credit measures in the Budget shows that more than 3 million households will still be worse off, especially disabled people and the self-employed. Following the High Court judgment compelling the Secretary of State to provide transitional protections for disabled people migrating on to universal credit, what is her response to the comment on page 76 of the Social Security Advisory Committee’s report that her proposals leave disabled people worse off and need “further consideration”?

[Ms McVey]

I hope that the hon. Lady will be voting for the changes that may give 1 million more disabled people an extra £100 a month, and the extra protection for the severe disability premium for 500,000 people, which is key. As I have always said, should we need to give any more support for vulnerable groups, we will work—and I will work with the Chancellor—to ensure that that happens. However, I commend to the hon. Lady the managed migration regulations, which, as she will see, provide for significantly more support.

[Mr Philip Hollobone (Kettering) (Con)]

The Opposition love to talk about benefit cuts. Will the Secretary of State confirm that, as a result of the measures in the Budget, spending on universal credit, when it is fully rolled out, will be £2 billion a year more than spending on the equivalent legacy benefits, and that this will be worth £300 a year to each universal credit family?

[Ms McVey]

My hon. Friend is right. That was in the forecast for 2023-24 in the Office for Budget Responsibility’s Budget report. We are a party that is fair to the most vulnerable and supports the rest into work. To be honest, I do not know why Opposition Members are voting against helping the most vulnerable and giving them more support than they would be given by the legacy benefits.

[Several hon. Members rose—]

[Jess Phillips (Birmingham, Yardley) (Lab)]

It is a miracle that someone who has had no social mobility and has lived on benefits can be called in the House, but I managed to make it here on those legacy benefits, and managed to get the same fancy job as the Members over there, so I am not sure what they are talking about.

I want to ask the Secretary of State about my constituent who was raped by the man with whom she lived and who therefore had to move. She was forced on to universal credit because of a change in her circumstances. She works—she has always worked—and she is £200 worse off. She is a single mother. What is being offered to her today—and this is why we are not supporting it—will still leave her £160 a month worse off. This is a rape victim, a single mother¸ who is in work. What will the Secretary of State do for her?

[Ms McVey]

I would like to meet the hon. Lady to discuss the matter, and to meet this person to see what we can do to support and help her. She has obviously been through a lot.

[Mr Marcus Jones (Nuneaton) (Con)]

I welcome the progress that my right hon. Friend has made in securing changes that support people in a better way. There will have to be a number of votes on the measures that she is proposing. What does she think people will not be getting if Members decide not to back the changes that she is advocating?

[Ms McVey]

That is a crucial question. If people do not vote for these changes, it will mean the most vulnerable not being helped, it will mean 1 million disabled people not getting £100 a month, it will mean disabled people not getting severe disability premium, and it will mean 700,000 people not getting their full benefit and being supported as well, in addition to the other measures I mentioned. I thank my hon. Friend for asking that question.

[Stephen Lloyd (Eastbourne) (LD)]

I commend the Secretary of State for making her statement to the House. I also note with approval the list of organisations that the Secretary of State said had come out and supported the Government putting back in the £1.7 billion for UC from the £3 billion cut in 2015. I note that I and my party were not in that list, but I am sure the Secretary of State will remember that since the election I have been saying again and again that to make work pay we have to bring back the full £3 billion. Will the Secretary of State commit to the further £1.3 billion that will really make work pay?

[Ms McVey]

We are making work pay. That is why more people are going into work. We are also changing the system significantly so that people are not trapped on benefits. We are making the system as fair as we can for those on benefits and those paying for it, and we are also protecting the most vulnerable; that is what we are doing.

[Steve Double (St Austell and Newquay) (Con)]

I thank the Secretary of State for showing once again that she is listening and is prepared to change and improve things as we go along, because these changes have been hugely welcomed by DWP staff in my constituency and constituents on UC, and indeed by many charities who work with the most vulnerable. Does the Secretary of State share my surprise that the one group of people who seem unable to welcome these changes are the Opposition?

--- Later in debate ---

[Ms McVey]

My hon. Friend makes a great point. They have also been unable to welcome the extra 3.4 million people in work, a reduction of youth unemployment by 50%, and the record numbers of women into work and of BME—black and minority ethnic—people into work. I do not know what they would welcome.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

The reason why we have these concerns is because of cases like this: a constituent of mine—a single mother of a terminally ill child aged 2—had her application for income support lost by the DWP, was then forced to claim UC, and while that was being considered all her benefits were stopped and she was forced to live on her son’s DLA and her carer’s allowance for her terminally ill son. Does the Secretary of State think that sort of case is acceptable and why is she pushing ahead given that cases like this have arisen?

[Ms McVey]

We have always said that we will deal with such cases. When fully rolled out, we will have up to about 8 million people here and we get it right most of the time for most of the people, but should something go wrong—and obviously something has gone wrong there—people come to their MP, which is only right, and then they bring the case to me and the Department and we get it right. But no system in the world is 100% right for 100% of people, and I apologise when it goes wrong, and then we will fight to get it right.

[Kevin Foster (Torbay) (Con)]

I have been interested to hear the Secretary of State’s responses to a number of questions. How many recommendations from the Social Security Advisory Committee has her Department accepted?

[Ms McVey]

We have accepted all but one of them, and in the one we did not accept we have been more generous, if you can believe it. So we have accepted nearly all of them, except one, and that one we have been more generous towards.

[Helen Goodman (Bishop Auckland) (Lab)]

A constituent of mine recovering from cancer came to see me. She had literally no money for food because at the moment UC is so badly designed that those whose pay date coincides with their claim date get no money at all in two months of the year. Before the roll-out, will the Secretary of State correct this design fault?

[Ms McVey]

In those instances we are working with the individual and then helping them with a manual workaround to make sure they are back on benefit and we are supporting those people. As I have said, it is never going to be a system that is right 100% of the time for 100% of people, but it is working the vast majority of the time for the vast majority of people. That is why people are saying up and down the country, “This is working; I’m getting into work.” In fact, this is the one single thing that claimants say to me who have been unemployed before—eight years ago—and are now coming back to the job centre. They say that because of the scare stories from the Opposition, they have been frightened to go into—

[Helen Goodman (Bishop Auckland) (Lab)]

On a point of order, Mr Speaker—

--- Later in debate ---

[Mr Speaker]

Order. Points of order come after statements.

[Ms McVey]

They have been frightened to go into the jobcentre. I have many letters from people saying thank goodness we did this, because it is so much better than the legacy system it replaces.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

The full service was rolled out in Greenwich on 3 October and I am extremely concerned about the number of people locally who appear to be claiming universal credit when it is not necessary for them to do so and who are worse off as a result. What more can the Secretary of State’s Department do, particularly in terms of training and information sharing among organisations on the ground, to ensure that only those who need to claim universal credit are doing so?

[Ms McVey]

This is the new system, and people will be claiming universal credit as it rolls out to their jobcentre. This is a modern system that helps people into work and helps the most vulnerable. Probably the best thing that the hon. Gentleman could do is to work with them to ensure that they are on the system and that it is working for them.

[David Hanson (Delyn) (Lab)]

I wrote to the Secretary of State more than a month ago about an anomaly drawn to my attention by my local citizens advice bureau—namely, the difference for women on maternity allowance as opposed to maternity pay. Has she managed to resolve that issue, because many women are worse off as a result of this policy?

[Ms McVey]

I will go back to the Department now and ensure that the right hon. Gentleman gets a reply to that letter.

[Christian Matheson (City of Chester) (Lab)]

Chester was an early roll-out area for universal credit, so let me tell the Secretary of State how the migration has been going. A constituent of mine lost her husband; he died suddenly leaving her with a primary school-aged child. She was on a widow’s pension and tax credits, and was just about managing, but she was then told to go on to universal credit. She is now £250 a month worse off and she is going to lose her house. My question to the Secretary of State is this: can she have her money back?

[Ms McVey]

No, but as the hon. Gentleman and I live only up the road from each other, let us meet and see this person and see what we can do.

[Thangam Debbonaire (Bristol West) (Lab)]

Child poverty and street homelessness are both going up, so I would like the Secretary of State to put on record her prediction for the future under the new universal credit system. Will child poverty and street homelessness fall or rise?

[Ms McVey]

At the moment, there are 1 million fewer people in absolute poverty and, under this Government, nearly 1 million fewer children are growing up in workless households. We believe that work is the best way out of poverty, and having a role model in the house who is working is the best way to get out of poverty too.

[Chris Elmore (Ogmore) (Lab)]

rose—

--- Later in debate ---

[Chris Elmore]

Thank you, Mr Speaker. Further to the shadow Secretary of State’s question about the managed migration regulations, will the Secretary of State confirm—yes or no will do—that this will be debated on the Floor of the House and not in Committee?

[Ms McVey]

Yes.

[Nic Dakin]

Waiting to get their universal credit is causing people huge problems. Will the Secretary of State do everything she can to address that problem, because it is the main thing that comes up when people come to see me every week—almost every day—with their problems about the universal credit roll-out?

[Ms McVey]

Absolutely, yes. Obviously, the Secretary of State before me brought in advances.

Work and Pensions

Esther McVey Excerpts

Monday 22nd October 2018 Ministerial Corrections

The following is an extract from the Opposition day debate on Universal credit on 17 October 2018.

[Ms McVey]

In less than 10 months, my ministerial colleagues and I have met over 500 colleagues, charities and stakeholders; come to the House on 56 occasions; visited 46 jobcentres, service centres and pension centres; tabled 34 written ministerial statements; and appeared in front of Select Committees 12 times. My Department has published 637 responses to parliamentary questions, 153 pieces of guidance, 102 statistical releases, 30 research reports, and 23 consultations. We have gone to great lengths to be open.

[Official Report, 17 October 2018, Vol. 647, c. 653.]

Letter of correction from the Secretary of State for Work and Pensions, the right hon. Member for Tatton (Ms McVey):

An error has been identified in my speech.

The correct wording should have been:

[Ms McVey]

In less than 10 months, my ministerial colleagues and I have met over 500 colleagues, charities and stakeholders; come to the House on 56 occasions; visited 46 jobcentres, service centres and pension centres; tabled 34 written ministerial statements; and appeared in front of Select Committees 12 times. My Department has published 2,637 responses to parliamentary questions, 153 pieces of guidance, 102 statistical releases, 30 research reports, and 23 consultations. We have gone to great lengths to be open.

Universal Credit

Esther McVey Excerpts

Wednesday 17th October 2018 Commons Chamber

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

It is good to be here again to update the House on universal credit—for the third time this week. I know that many Members want to speak in this debate. I know too, Mr Speaker, that you are always anxious to hear Back Benchers speak, as am I, so I will keep my remarks as brief as possible.

I have been forthright with colleagues across the House—and in my speech at Reform earlier this year—about universal credit’s strong merits and the areas that we need to improve. In fact, in my Reform speech, I said that I would improve universal support, and I delivered on that this month. Since becoming Secretary of State, I have changed the system to provide extra support for those with severe disabilities, vulnerable young 18 to 21-year-olds and kinship carers. I am also working with colleagues to identify areas where we can make more improvements.

[Mr Ranil Jayawardena (North East Hampshire) (Con)]

Will my right hon. Friend confirm that, although the Government will always want to do more, eight out of 10 universal credit claimants are actually satisfied with their experience, and believe that it is good and helping them into work?

[Ms McVey]

My hon. Friend is correct. Those are the figures and that is what people are saying. We know that universal credit is working and getting people into work because our employment figures that came out yesterday show that over 3.3 million more people are in work since 2010. So we know that we are moving forward.

[Several hon. Members rose—]

[Ms McVey]

I will continue just a little bit further.

In less than 10 months, my ministerial colleagues and I have met over 500 colleagues, charities and stakeholders. We have come to the House on 56 occasions; visited 46 jobcentres, service centres and pension centres; tabled 34 written ministerial statements; and appeared in front of Select Committees 12 times. My Department has published 637 responses to parliamentary questions, 153 pieces of guidance, 102 statistical releases, 30 research reports, and 23 consultations. We have gone to great lengths to be open.[Official Report, 22 October 2018, Vol. 648, c. 1MC.]

[John Redwood (Wokingham) (Con)]

Will the Secretary of State give way?

[Ms McVey]

I will indeed.

[John Redwood]

I am very grateful to the Secretary of State, who is doing an excellent job in improving an intrinsically good system and dealing with the little difficulties we need to sort out. Given that it is crucial that there is enough incentive for people to get into work, will she confirm that one of the improvements is to lower the rate of withdrawal so that it is more worth while to work, and will she push for that to be improved further?

[Ms McVey]

My right hon. Friend is quite correct. As he will know—and everybody in the House should know—under the legacy benefits there were punitive tax rates of over 90%. We have now brought that down to 63%. As an advocate of people who want to get into work, he is right: we should aim to get that taper rate down even further.

We also took the unusual step, earlier this year, of publishing a summary of the universal credit business case, which explained the economic case for universal credit, showing that it will help 200,000 more people into work when fully rolled out, and empower people to work 113 million extra hours.

[Tim Farron (Westmorland and Lonsdale) (LD)]

rose—

[Ms McVey]

I will indeed take a question. [Interruption.]

[Mr Speaker]

Order. Before the hon. Gentleman intervenes, can I just point out that there are approximately 65 hon. and right hon. Members who wish to speak in the debate, and considerably less than four hours in which people can be called, so the less noise, the greater the progress.

[Tim Farron]

One in four workers in my constituency is self-employed—obviously, they are working and contributing. Is the Secretary of State aware that the minimum income floor means that many of them will be ineligible for universal credit if they cannot pay themselves the living wage in any given month? Surely we should be encouraging self-employed people, not penalising them.

[Ms McVey]

Obviously the hon. Gentleman will understand a lot about the minimum income floor because he was in the coalition when we came forward with those policies. We decided at the time that if people were not earning enough—if their business was not earning them enough and they were not on a minimum wage—we would then help them to go into work, and therefore they could have a better wage if their business was not working in that regard.

We published the information I mentioned alongside hundreds of reports on universal credit each year by outside bodies—independent organisations like the Office for Budget Responsibility, the National Audit Office, the Institute for Fiscal Studies, the Resolution Foundation, the House of Commons Library, and numerous others. So we are open with our information.

[Several hon. Members rose—]

[Ms McVey]

I will indeed give way. Who shall I choose from this merry bunch?

[Stephen Timms (East Ham) (Lab)]

One of the representations the Secretary of State will have received is from the Residential Landlords Association saying that a majority of its members are now not willing to let accommodation to universal credit claimants because they quickly get into arrears and cannot pay the rent. Is she proposing some change to address that specific problem?

[Ms McVey]

As the right hon. Gentleman will know, we have made various changes to make sure that we can pay direct to the landlords—that we can give alternative payments. It is only right that we do that. However, when we talk about the difficulties that claimants have got into, it is good to look at the legacy benefits and Labour’s track record. Between 1997 and 2010, benefits claimants’ debt to local authorities increased by £1.8 billion through overpayment and errors in the legacy system. On tax credits, introduced by the Opposition, claimants got into £5.86 billion-worth of debt through error and overpayments. That is a shameful record from the Opposition.

[Several hon. Members rose—]

[Ms McVey]

Let me get back to the independent reports, what is happening, and what is being made publicly available. We are learning from the evidence, building on that evidence, and making decisions so that we can improve the system as it goes further. [Hon. Members: “Give way!”] The power to choose who is going to get a question!

[Chris Philp]

Is not the real way to combat poverty to get people off benefits and into work, is not the evidence that people on universal credit are more likely to get back into work than people on the old benefits, and is not that the real test of this system’s success?

[Neil Coyle (Bermondsey and Old Southwark) (Lab)]

Will the Secretary of State give way?

[Ms McVey]

My hon. Friend is exactly right. That is what Conservative Members agree about: helping people into work. For us, getting—[Interruption.]

[Mr Speaker]

Order. I say to the hon. Member for Bermondsey and Old Southwark (Neil Coyle), whose grinning countenance belies an aggressiveness of spirit in this matter, that it is not really in order to yell out, “On the same point,” as a way of trying to ensure that one is called.

--- Later in debate ---

[Mr Speaker]

Believe me, the hon. Gentleman does that perfectly satisfactorily in any case.

[Ms McVey]

Conservative Members have made sure that since 2010, 1,000 people each and every day have got a job. I want to give out a very, very important statistic that came out yesterday—youth unemployment has fallen by 50% since this Government have been in office. That is thousands of young people with a future that this Government have given them.

[Neil Coyle]

Will the Secretary of State give way?

[Ms McVey]

I will indeed.

[Frank Field (Birkenhead) (Ind)]

On a point of order, Mr Speaker.

--- Later in debate ---

[Neil Coyle]

The Secretary of State is making her usual robust case and claims that the system has improved. Why is it, then, that the Department acknowledges that thousands of landlords, especially private sector landlords, will never be part of the landlord portal; that the Government have had to exempt supported housing fully from universal credit; that 300,000 people will get late payments this year, according to the Department; and that underpayments and overpayments are increasing under universal credit to levels not seen with the legacy benefits?

[Ms McVey]

To be fair, 76% of people coming on to universal credit had arrears in their housing benefit, according to the report by the National Federation of ALMOs. That is the reality of it. I have given the figures for the extra debt people got into under the previous Labour Government.

Some very interesting speeches were given in the House in 2016, when people understood that we had to get the benefits bill down. This is what was said on the Floor of the House:

“The deficit has to be eliminated. We believe in controlling the cost of social security so that it is fair”

on

“the people who are paying for it”—[Official Report, 20 July 2015; Vol. 598, c. 1265]—

and for those who need it. That did not come from a Conservative Member but from Labour’s acting shadow Secretary of State for the Department for Work and Pensions. We all believe in making a fair benefits system and getting people into work, and that is what universal credit is doing.

[Mrs Anne-Marie Trevelyan (Berwick-upon-Tweed) (Con)]

As a northern MP, I know that there was a much slower uptake of really great work in the north. Will the Secretary of State confirm that unemployment has fallen by half in the north-west, which is giving the security of a pay packet to so many more people?

[Ms McVey]

My hon. Friend is right that unemployment has fallen by more than half in the north-west. I am surprised that the hon. Member for Wirral West (Margaret Greenwood) did not know that but, then again, the Opposition are not always too hot on their figures.

I want to give another important piece of information. Labour’s position on the Welfare Reform and Work Bill in 2016 was, through the Labour Whip, to abstain on the changes. Some of them broke the Whip, but the position was to abstain, and this is why: in 1997-98, the welfare cost per household was £5,603 but, by 2010-11, when Labour left office, that figure had gone up to £8,350—up by nearly £3,000 per household. That was why everybody agreed in principle that universal credit was the way forward and that we had to get the benefit bill under control.

[Toby Perkins (Chesterfield) (Lab)]

The Secretary of State pointedly remarked at the start of her contribution that this is the third time she has had to come to the House just this week. Does that not tell her how badly these reforms are going? We are all receiving hundreds of representations, and few of her own party’s Members are willing to turn up to support her. Is it true that, at the end of the debate, she will not have the confidence to ask her Members of Parliament to vote against the motion, because she knows that many of them agree with it?

[Ms McVey]

I thank the hon. Gentleman for his kindly words and advice but, when the Division comes, we will see what happens. I am convinced that Government Back Benchers know how many millions more people we have got into work. I am convinced that they know that 1 million more disabled people will end up with more money under universal credit. That is what this is about—supporting the most vulnerable claimants.

[Vicky Ford (Chelmsford) (Con)]

Will the Secretary of State give way?

[Ms McVey]

I will.

[Toby Perkins]

On a point of order, Mr Speaker. I wonder whether you could provide advice. I understand that it is a matter of record whether the Government intend to vote for something. I have asked the Secretary of State specifically whether the Government will vote against the motion. Is it reasonable to ask that question?

[Vicky Ford]

Does my right hon. Friend agree that protecting the most vulnerable is key? Can she reconfirm that over 1 million disabled households will be over £100 a month better off and that it is the Government’s policy to continue to work for improvements, to protect the vulnerable?

[Ms McVey]

I am glad that there was some calm and hush for that question, so that I could hear it and give the response that it deserves. My hon. Friend is right: around 1 million disabled households will receive on average around £110 more per month through universal credit. If we were to follow the advice of the Labour party, those 1 million disabled households would be £110 worse off per month. That is what the Opposition are asking for.

Universal credit pays for 85% of childcare costs, compared with 70% under the legacy benefits. Because it is a simpler benefit, as I hear from Government Back Benchers, 700,000 households will get entitlements that they were not claiming under legacy benefits, worth an average of £285 per month.

We have taken a mature approach to rolling out universal credit. We have said that we will test, learn, adapt and change as we go forward. That has resulted in a series of improvements, and I will read some of those out. We are providing extra universal support with Citizens Advice, an independent and trusted partner. We have brought in the landlord portal. We have brought in alternative payment arrangements, 100% advances and housing running costs. We have removed waiting days and are providing extra support for kinship carers and those receiving the severe disability premium.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

Do the Government recognise that, in constituencies such as mine in London, work does not pay the rent for most people, because rent levels in the private sector are almost equal to take-home pay? Universal credit is therefore essential. The majority of claimants in my constituency are working. Do the Government recognise the problems with pay-outs, delays and so on, particularly for people whose income changes from month to month, and will the system recognise the needs of the many working families in high-rent accommodation?

[Ms McVey]

I thank the hon. Lady for her question. Those are all things that we have to consider, in terms of how payments are made and how they work for the person in work. That is what we are doing, and that is why we have had a slow and measured roll-out. That was one of the things I said in my reform speech, if she cared to listen to it.

I would like to point out the news yesterday that we have seen the strongest wage growth for nine years. That is what this Government are doing—getting people into work and turning the corner of more wage growth. We will continue to roll out universal credit, and we will engage with colleagues across the House. I met the right hon. Member for Birkenhead (Frank Field) yesterday—I think he saw me with my glasses on then, which is maybe why he felt the need to mention that—and I will meet him again. My door is always open. We will make sure we get this benefit right, and Government Back Benchers, who have genuine concerns, want to get it right.

[Several hon. Members rose—]

[Ms McVey]

I will give way one final time.

[Heidi Allen (South Cambridgeshire) (Con)]

I want to express the view of Government Back Benchers on the motion. We believe genuinely that the Secretary of State is listening to what needs to change with universal credit, which makes a mockery of the motion, and not a single one of us, myself included, will vote for it.

[Ms McVey]

I thank my hon. Friend for those kind words. She has fought tirelessly to make sure that universal credit is the best system possible. Like all our party’s Back Benchers, she is not scaremongering but wants to help people into work and make sure that work pays.

[Several hon. Members rose—]

Oral Answers to Questions

Esther McVey Excerpts

Monday 15th October 2018 Commons Chamber

[Rachel Maclean (Redditch) (Con)]

1. What steps the Government are taking to assist disabled entrepreneurs.

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

Will you indulge me for a moment, Mr Speaker, to allow me to congratulate my fellow Minister, the Under-Secretary of State for Work and Pensions, my hon. Friend the hon. Member for North Swindon (Justin Tomlinson), on his wedding at the weekend? Some eyes may have been observing events in Windsor; others of us were viewing events in Swindon.

Let me turn now to the question of my hon. Friend the Member for Redditch (Rachel Maclean). Disabled people are more likely than others to be self-employed. Access to Work now has specialist self-employment teams to help disabled entrepreneurs, and the new enterprise allowance schemes help anyone who is claiming eligible benefits to move into self-employment.

[Rachel Maclean]

I thank the Secretary of State for that answer and join her in congratulating my hon. Friend on his recent wedding.

Disabled people can benefit from self-employment because it provides much-needed flexibility in the workplace. To that end, there is a group in my constituency called Disability Support Project. Will the Secretary of State congratulate it on its recent launch and look at what more can be done to enable other such organisations to offer employment advice?

[Ms McVey]

I will, indeed, congratulate and thank the Disability Support Group in Redditch for its excellent work and for what it does. I also congratulate and thank my hon. Friend for all that she does in assisting disabled people into work and for so passionately pursuing this cause. There is more that we can do. I know that she visited her jobcentre to see how we are working with charities and organisations. I can also assure her that we have never spent more supporting people with disabilities and health conditions—it is now £54 billion a year, up £9 billion since 2010.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Is the Secretary of State aware of the neuro-diverse person who wants to become an entrepreneur and of the people with autism and the people on the autistic spectrum who want to get apprenticeships? Is it not a fact that the inability to get basic GCSE maths and English is a barrier to anyone getting an apprenticeship that will lead to entrepreneurship? What can she do to open up that pathway?

[Ms McVey]

The hon. Gentleman raises a good point: how do we support disabled people. As I have said, we are supporting more through Access to Work and through other support groups. We have also given easements to make it easier for disabled people, because it really is important that they do internships, apprenticeships, and work experience.

[Alex Burghart (Brentwood and Ongar) (Con)]

One of the very best ways of helping disabled entrepreneurs, and indeed all disabled people who are looking for work, is to get them access to the best assistive technology that can help them when they are in the workplace and also give them confidence while they are looking for that work. What steps is the Secretary of State taking to ensure that disabled people have those opportunities?

[Ms McVey]

My hon. Friend is correct in what he says: we should be using technology even more. We should be making sure that it does assist disabled people. To that end, we are doing more through Access to Work and we should continue on that path.

[Dr Paul Williams (Stockton South) (Lab)]

The disability employment gap in my constituency is, at 37%, higher than the national average. What message does the Secretary of State have for disabled people in my constituency who want to work and who are not getting the support that they need?

[Ms McVey]

The hon. Gentleman is correct: there is a big disability gap in employment rates. That has come down, but we need it to come down even further. We have pledged to get 1 million more disabled people into work by 2027. Between 2013 and 2017, there were 600,000 more disabled people in work, but there is always more that we can do.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

2. What assessment she has made of her Department’s preparedness for the roll-out of universal credit to people in receipt of working tax credits.

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

We are working closely with Her Majesty’s Revenue and Customs and stakeholders to ensure that our testing covers the full range of tax credit claimants. With parliamentary approval, our managed migration regulations will allow for transitional protection. This will make sure that nobody loses out financially when they are moved to universal credit.

[Several hon. Members rose—]

--- Later in debate ---

[Mr Carmichael]

Yes, but for how long? One of the fundamental principles of universal credit was to design a welfare system where people would always choose to be in work. The money that the Chancellor took out in 2015 fundamentally undermined that principle, so will the Secretary of State speak to the current Chancellor about restoring work allowances to the levels originally planned?

[Ms McVey]

I am sure that the right hon. Gentleman will not be surprised to know that I have of course been having discussions with the Chancellor, and we will all know the result of those discussions two weeks to this very day.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

Will my right hon. Friend take the time to listen to the voices of those on the frontline—the work coaches in the jobcentres, who have experience of how this policy functions in practice, who know what works and what does not work, and whose views about universal credit are overwhelmingly more positive than those of the Opposition critics?

[Ms McVey]

My right hon. Friend is correct to point out these facts. When we visit jobcentres, work coaches say that this is the best system that they have ever had to help people into work. We know the validity in that statement because 1,000 more people have been getting into work each and every day since 2010. We have to ensure that the system works for claimants and taxpayers.

[Frank Field (Birkenhead) (Ind)]

May I raise the question about which I wrote to the Secretary of State, regarding how universal credit is being rolled out in Birkenhead? It is not going as well there as we are told it is in the House of Commons, and some women have taken to the red light district for the first time. Will the Secretary of State come to Birkenhead to meet women’s organisations and the police, who are worried about the security of women being pushed into this position?

[Ms McVey]

The right hon. Gentleman knows that my door is always open to him. I did receive a letter on Friday, but really we need to work with those ladies and see what help we can give them—from work coaches right the way through to various charities and organisations. In the meantime, perhaps he and the work coaches could tell these ladies that there are currently a record 830,000 job vacancies, and that perhaps there are other jobs on offer.

[Heidi Allen (South Cambridgeshire) (Con)]

Just to draw on a point that we have already heard in the Chamber this afternoon, is the Secretary of State aware how much support she has on the Conservative Benches for our desire to see extra funding in the Budget to restore the work allowances to where they should be?

[Ms McVey]

I thank my hon. Friend. I know that all Members of the House want to ensure that universal credit works for all claimants. It is helping people into work and is built on sound principles, unlike the legacy system, which trapped people and locked them into unemployment. Now we are helping people into work, but we have to listen, learn and adjust where we can, as we have done in the past, with a £1.5 billion package this year. We are still adjusting, learning and helping the most vulnerable.

[Ruth George (High Peak) (Lab)]

19. The Secretary of State recently admitted that groups such as lone parents will be £2,400 a year worse off under universal credit. How is the Department going to support such lone parents when their transitional protection ends, as it very soon will?

[Ms McVey]

When we came into office in 2010—and then in 2015 and 2017—it was really important for the country to take difficult decisions about what we needed to do to ensure that the benefit was sustainable and affordable, because it had grown by over 60% under Labour. We still have to ensure that the benefit is sustainable and affordable, and that we support the most vulnerable, and that is what this Conservative Government are doing.

[Nigel Mills (Amber Valley) (Con)]

When we move people over, it is vital that we get them on to the right amount of benefit at the right time, so will the Secretary of State agree to put in place some targets for accurate performance, and to delay the roll-out if those targets are not achieved?

[Ms McVey]

Under the process of managed migration, the roll-out will be slow and measured. It will start not in January 2019, but later in the year. For a further year we will be learning as we go with a small amount of people—maybe 10,000—to ensure that the system is right. The roll-out will then increase from 2020 onwards. It will be slow and measured, and we will adapt and change as we go.

[Neil Gray (Airdrie and Shotts) (SNP)]

Has the Secretary of State requested any additional funds for universal credit from the Chancellor ahead of the Budget?

[Ms McVey]

I do not let people know what we do in private meetings, old-fashioned as that may be, but what the hon. Gentleman can know is that I am championing UC to make sure that it works the best it can possibly work. He can take from that what he will.

[Neil Gray]

That was barely a response, let alone an answer. Given the week that universal credit has had, where the Secretary of State has suggested that it will cost claimants up to £2,400 a year; two former Prime Ministers have called for her to rethink; dozens of Back-Bench MPs led by the former Secretary of State, the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith), have called for a rethink; and expert groups like the Joseph Rowntree Foundation, the Resolution Foundation and the Child Poverty Action Group have all called for a rethink, does she not see that universal credit in its current form is causing misery? The roll-out must stop and the cuts must be reversed at the Budget.

[Ms McVey]

We all agree on the founding, sound principles of this benefit, which is helping more people into work. It will give extra money to the most vulnerable. One million more disabled people will get, on average, £110 more a week. We will also be helping the 700,000 people who were getting the incorrect amount of benefit, plus we will be bringing in transitional protection to help them. If the hon. Gentleman wanted to reverse this, what would he do for those most vulnerable people?

[Sir Nicholas Soames (Mid Sussex) (Con)]

Will my right hon. Friend commend the work of the jobcentre in Haywards Heath, which I visited last Friday, for the extraordinarily effective, humane and decent way in which it is rolling out universal credit?

[Ms McVey]

I thank my right hon. Friend for that. Of course I want to thank not just Haywards Heath jobcentre but all the jobcentres across the country, who are saying that this is now enabling them, for the very first time, to help people into work. We know that that is the case, as we have record numbers of people getting into work— 3.4 million more than in 2010.

[Margaret Greenwood (Wirral West) (Lab)]

At the Conservative party conference, the Prime Minister announced that austerity is over. Only a few days later, it was reported in The Times that families who are required to transfer to universal credit could lose up to £2,400 a year. The Prime Minister then denied it, but the following day the Secretary of State admitted that in fact some people would lose out. The confusion of the past week will have caused real concerns for families who will be affected. They have a right to know. If austerity is really over, will the Government ensure that nobody loses out?

[Ms McVey]

As I have said both on TV and in the House, we took difficult decisions, as did the country, in 2015-16 because we had a benefits system that had grown by over 60% under Labour. Now it is on a sustainable footing and is fair to the taxpayer and fair to the claimant. One million more disabled people will be getting, on average, £110 more a month, and 700,000 who were not getting their full amount of benefit now will. There will be transitional protection. We are listening, we are learning, and we will adapt and change as need be.

[Margaret Greenwood]

Almost 30% of universal credit claims started are not completed, according to the latest figures, and the Government do not appear to have any idea about or interest in what happens to those people. In the next phase of the roll-out, the Government are placing all the responsibility for making a universal credit claim on to the 2.87 million people required to move across, and they admit that they do not know how many will need additional support. There is a real danger that hundreds of thousands of people could fall out of the social security system altogether and be pushed into poverty—even left at risk of destitution. So will the Government step back from the brink and stop the roll-out of universal credit?

[Ms McVey]

I have to say that that is some of the worst scaremongering I have ever heard. At the last Budget and this year, we put in another £1.5 billion when we knew that we had to provide more support. I announced in June that we would be helping another half a million disabled people on the severe disability premium. I have agreed to do more for kinship carers and the most vulnerable 18 to 21-year-olds. We are also agreeing to work with Citizens Advice—an independent and trusted organisation—to help people to get on to the benefit. When we hear what we need to do, we will do it.

[Robert Courts (Witney) (Con)]

3. What estimate the Government have made of the number of jobs created in the UK since 2010.

[Trudy Harrison (Copeland) (Con)]

20. What estimate the Government have made of the number of jobs created in the UK since 2010.

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

Employment in the UK has increased by more than 3.3 million since 2010 and is currently at a near record high of 32.4 million. Since 2010, the UK has created more jobs than France, Spain, Ireland, the Netherlands, Austria, Sweden and Norway combined.

[Robert Courts]

I thank the Secretary of State for that answer. What support are the Government offering to build on that employment success?

[Ms McVey]

That is precisely why we brought in universal credit, which made sure that people could work each hour they wanted to work and were not trapped by barriers to work, such as the 16-hour rule. We know that there are now 113 million more hours that people can work and that there will be more than 200,000 more jobs that people can go for.

[Trudy Harrison]

Nationally, youth unemployment is down. How will the Government ensure that it continues to fall, to give young people the best start to their working lives?

[Ms McVey]

I thank my hon. Friend for her question. I know how important youth employment is to her, and I know that she has visited her local jobcentre. She is quite right in saying that since 2010, youth unemployment is down by 48%. I remember when we brought in work experience, the Opposition were saying how awful it was and that it was slave labour and people did not want to do it—how wrong they were and have proved to be. We will be bringing more schemes forward, to make sure that we have record low unemployment for young people. That is what this party is about—youth and the future.

[Ms Karen Buck (Westminster North) (Lab)]

The growth in jobs is very welcome news, but at the same time, we have to tackle the rise in in-work poverty. For the first time in modern history, there are more families in poverty in work than out of work. The benefit freeze is a key part of that, and there is another £1.9 billion to come off working-age benefits in April. Will the Secretary of State be making representations to the Treasury to ensure that that does not go ahead?

[Ms McVey]

As I said earlier, I will not say exactly what I have been saying in private conversations, but the hon. Lady can be sure that I will be championing our claimants and making sure that what we do is fair to claimants and the taxpayer.

[Chris Stephens (Glasgow South West) (SNP)]

The Secretary of State will be aware that the TUC announced earlier this year that just under 4 million people were in insecure work. Can she tell us how many of the jobs that have been created are in agency work, zero-hours contracts or low-paid self-employment?

[Ms McVey]

The hon. Gentleman will be pleased to know that the number of people on zero-hours contracts this year has dropped by 100,000, and full-time and permanent work accounts for 75% of employment. We are creating real jobs and real growth in this economy.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

4. What recent assessment she has made of the (a) accuracy and (b) efficiency of contracted-out health assessments for employment and support allowance and personal independence payment.

--- Later in debate ---

[Stephen McPartland (Stevenage) (Con)]

9. What steps the Government have taken to improve universal credit since autumn 2017.

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

We are constantly improving universal credit in response to feedback and have implemented a wide-ranging package of improvements worth £1.5 billion, some of which my hon. Friend campaigned for. We will continue to do that when we need to.

[Stephen McPartland]

Universal credit can work only if it is fully funded. Does my right hon. Friend agree that the effective tax rate of 63p in the pound for people moving into work is set at a punitive level and that the Treasury should loosen the purse strings for her?

[Ms McVey]

My hon. Friend is always a good campaigner on these causes and we of course meet to discuss these matters. At the moment, the taper rate is 63%, as he says, but it was over 90% under the legacy system. We have dropped it considerably and when we can, when the economy is on a sounder footing, we will seek to drop it even further to make sure that work pays, which is something this Conservative Government do.

[Alison McGovern (Wirral South) (Lab)]

The Secretary of State says that universal credit is constantly improving, but unfortunately the number of people coming to my office for food bank vouchers is constantly increasing. More and more of the people coming are families with kids. The public are angry. Has the Secretary of State made an assessment of how many families using food bank vouchers are lone parents with children?

[Ms McVey]

The hon. Lady raises a good question about what happened under the previous Labour Government—[Interruption.] Can I just put this on the record, Mr Speaker? Under the previous Labour Government—[Interruption.] Labour Members are huffing, puffing, tutting and shaking their heads, but the number of households where no one had ever worked doubled under Labour. That is where the problem started and we are changing that. It has been a quick change—to 3.4 million people in work—and we have to help those people now to get a higher income, which we are doing.

[Mr Speaker]

I call Richard Graham. Why is he surprised by that? He is standing. Get in there.

[Richard Graham (Gloucester) (Con)]

23. The Secretary of State knows that one of the difficulties with trying to correlate the people on universal credit with those who go to food banks is that there is no precise data to compare the two. I know anecdotally that the number of foreigners claiming food bank vouchers is quite high. Is there a state at which we can, with the Trussell Trust, arrange to have data that tells us much more about who is going to food banks and what sort of help they need, including DWP people in their food banks?

[Ms McVey]

Of course we have to understand the underlying issues and problems and support people as best we can. I met the Trussell Trust and various poverty groups and we have talked about how we best support families. We believe that the best way to support a family out of poverty is by getting them into work—hence why I pointed out that, under the previous Labour Government, the number of households where no one ever worked doubled. This Government believe that work is the best way out of poverty and we will continue helping people.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

One million householders, 750,000 disabled people, 600,000 working single parents, 600,000 self-employed people and 300,000 families with three or more children will all be worse off under universal credit. Will the Secretary of State finally admit that, for these people, austerity is far from over?

[Ms McVey]

I have said that, under this benefit, what we sought to do was get more people into work, because that is the best way out of poverty, and that is what we have done. We are helping 1,000 people each and every day into work. We also said that we would make this benefit fair to the taxpayers, who are paying for it, and fair to those claimants, and that is what we are doing.

[Lee Rowley (North East Derbyshire) (Con)]

10. What steps the Government are taking to ensure that the benefits system is able to meet the changing needs of claimants.

--- Later in debate ---

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

When we were here last, Members in all parts of the House were asking whether Citizens Advice could be more involved with universal credit. I am pleased to inform them today that I went away and secured that agreement, and that Citizens Advice, as an independent organisation, will be giving universal support and assisting claimants with universal credit.

[Kevin Hollinrake]

Universal credit was introduced in my constituency early in 2017. Although there were initial problems following the changes made by the Government at the end of last year, Citizens Advice has reported a significant reduction in the number of difficulties. Jobcentre Plus staff also report a very positive effect in getting people back to work. Does that endorse the principle that we should seek not to reject universal credit, but to reform it?

[Ms McVey]

My hon. Friend is right. Work coaches are saying that this is the best system that they have ever had. It has been helping 1,000 people into work each and every day since 2010. My hon. Friend is also right to say that when we see that things need to be improved and adapted, we listen, we learn, and we change it as it goes.

[Marsha De Cordova (Battersea) (Lab)]

Under universal credit, severely disabled people will lose out on disability premiums worth up to £80 per week, and will also lose the £30 “limited capability for work” component. Last week, the Secretary of State said that 1 million disabled people would be “significantly better off” under universal credit. Let me ask her now whether that is really the case. Is not the reality that after the premiums and the £30 component have been scrapped, disabled people will in fact be worse off overall under universal credit?

--- Later in debate ---

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

I commend the staff at Ayr jobcentre, who recently hosted a successful employment fair at which we discussed the value of flexibility in the universal credit system in helping vulnerable claimants back into work. Will my right hon. Friend consider what further support might be useful to jobcentres in hosting future employment fairs across the United Kingdom?

[Ms McVey]

I thank my hon. Friend for raising that point. I visited his constituency over the summer to see what terrific work his work coaches were doing. We will be implementing more work in outreach and developing our flexible fund to help more people.

[Liam Byrne (Birmingham, Hodge Hill) (Lab)]

Birmingham’s food banks have had their busiest year ever—70% of their demand is due to universal credit. Can I give the Secretary of State a choice? Either pause this crazy roll-out or come to Birmingham and help us to raise the tonne and a half of food we need each month to replenish the empty food bank stock.

Employment and Support Allowance

Esther McVey Excerpts

Wednesday 18th July 2018 Written Statements

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

On 15 March I provided the House with a statement setting out how the work my Department was undertaking to correct underpayments that occurred when converting Incapacity Benefit claims to Employment and Support Allowance (ESA) between 2011 and 2014 was progressing. I wanted to take this opportunity to provide the House with a further update.

In March I explained that my Department would resource this exercise with 400 staff to make sure we could review cases at pace. This work is now under way with staff reviewing cases, contacting claimants and correcting claims; so far we have paid out over £40 million in arrears.

The Department has analysed the relationship between “official error” and section 27 of the Social Security Act 1998 in regulating how and to what extent arrears can be paid. As a result of the conclusions of this analysis, we will now be paying arrears to those affected back to their date of conversion to ESA.

My Department will be contacting all those identified as potentially affected as planned. Once an individual is contacted, and the relevant information gathered, they can expect to receive appropriate payment within 12 weeks. I can also confirm that once contacted, individuals will be provided with a dedicated free phone number on which they can make contact with the Department.

Where we have already corrected cases and paid arrears from 21 October 2014 we will review the case again and pay any additional arrears that are due prior to that date.

I hope this will help Members to provide reassurance, to their constituents who think they may have been affected, that they will receive all the money they are entitled to.

[HCWS877]