Child Support (Enforcement) Bill

Gagan Mohindra Excerpts

3rd reading
Friday 17th March 2023 Commons Chamber

[Mr Gagan Mohindra (South West Hertfordshire) (Con)]

May I first acknowledge that my hon. Friend the Member for Stroud (Siobhan Baillie), who is not here today, has done some excellent work on this Bill, as has my hon. Friend the Member for South Ribble (Katherine Fletcher) in moving its Third Reading today? I was lucky enough to be called on Second Reading in December. Previous speakers have acknowledged, as would everyone in the House, that many parents are struggling because of recent price rises. I welcome the fact that supporting parents, both single parents and those who are together, was a key theme in this week’s Budget. Childcare provision has been expanded to 30 hours per week for children aged nine months to four years to help drive down household costs, as well as to give parents breathing space to pursue both personal and professional opportunities. However, I am aware of cases, both in my constituency and across the country, of parents struggling further because of a lack of financial support from co-parents with whom they no longer reside.

Parents have a duty to support their children, and that duty remains even if they are not the main day-to-day carer and/or residing parent. I understand that relationships and marriages can break down, for an array of reasons, and parents can often wish for limited communication with their former partner. But in the cases where parents look at ways of minimising child maintenance payments to their former partners, that ultimately means less money available to their children day to day: less money for school uniforms, for food and for extra-curricular activities, which are a vital part of developing skills for children at a young age.

My constituency is home to a lot of young families. One of these constituents, Nicola, came to visit me at my surgery in Croxley Green in April 2022. She is a single mother of two daughters and she came to discuss the difficulties she had experienced in getting paid fairly by the children’s father. What struck me most—this goes back to my point about how these cases can often punish the children most—is that there had been multiple instances of her daughters crying in school because of the nature of their parents’ relationship. Nicola told me about her frustration with the enforcement by the CMS; by September 2022, her former partner was in arrears by more than £13,000. Although the DWP have identified that there are issues with the amount the children’s father has to pay, it has highlighted difficulties in enforcement and delays in carrying out further financial investigations. It has now been a year since Nicola first came to see me, which highlights the difficulties I know many parents have in receiving the child maintenance payments they deserve. It is also a perfect example of how the DWP and CMS are somewhat limited in their powers in investigating and enforcing in these cases.

That is not to say that the CMS and the Government have not done a good job in ensuring that correct payments are made. In the past 12 months, the CMS has arranged more than £1 billion in child maintenance payments. In 2021-22, the Government made more referrals to enforcement agencies than in any other previous year, and the number of liability orders applied for each year is now back to pre-pandemic levels. The CMS works with other Government departments to improve the use of enforcement powers and to explore the possibility of introducing new powers for cases in which people are being wanton.

I welcome the fact that this Bill has been introduced and that it addresses the gaps in the DWP’s enforcement powers. The Bill will amend not-yet-commenced primary legislation to enable the DWP to take further enforcement action without the need to apply to the magistrates or sheriffs courts, instead allowing the Secretary of State to make an administrative liability order. That power, once enacted, will allow enforcement measures to be used more quickly against parents who have failed to meet their obligations. It is crucial that the system is built to ensure fairness for hard-working parents and, most importantly, that it supports the children, who in these cases are the most important. To support people such as Nicola up and down the country, I will be supporting this Bill.

State Pension Triple Lock

Gagan Mohindra Excerpts

Tuesday 8th November 2022 Commons Chamber

[Mr Gagan Mohindra (South West Hertfordshire) (Con)]

It is an honour to follow the right hon. Member for East Ham (Sir Stephen Timms). I was brought up in the area that he represents, and I have fond memories of his part of the world. Let me also welcome the Secretary of State to his place, and, indeed, welcome the whole new Front Bench.

As we all know, our country finds itself in an incredibly difficult economic position, and I look forward to the Chancellor’s fiscal event next week. My hon. Friend the Member for Guildford (Angela Richardson), in an intervention earlier, made an important point about why the slight delay was required, namely to ensure that we have the OBR figures that Members in all parts of the House have requested during previous debates on our finances.

My party has a strong record of supporting older people, and I hope that that record will continue: we need it to do so now more than ever. One of the highlights of our Government over the last 12 years has been auto-enrolment for employees in small companies, which means that 88% of eligible employees now have savings pots that they would not have necessarily been encouraged to have before. During the pandemic, my right hon. Friend the Member for Richmond (Yorks)—now the Prime Minister—took the necessary steps to keep our economy afloat, but those decisions came at a cost. In the wake of that spending, coupled with the awful Putin’s illegal war in Ukraine, we now face a cost of living crisis. Sacrifices must be made. The Chancellor has some extremely difficult decisions to make, the results of which we will hear in nine days.

Given the cost of living crisis, and notably the hike in energy bills, it is more important than ever to protect the most vulnerable members of our society, and I am grateful to the Government for the work they are doing to support pensioners at this difficult time. As we enter the colder months, I am particularly proud of their commitment to help keep energy bills as low as possible and the additional support that is specific to pensioners, including the £300 winter fuel payment.

Like many of my colleagues, I have received countless items of correspondence from constituents pleading for the triple lock to be retained, and I trust that that decision will be made in nine days’ time. I hope that the Chancellor will continue the good work that he is already doing, and I look forward to our honouring the commitments that we have historically made in our manifesto. I agreed with the right hon. Member for East Ham when he said that when people have done the correct thing before, we should ensure that we protect them as much as possible. We should always seek to incentivise good and indeed best behaviour, and I hope that next week’s statement will demonstrate that that is being done.

--- Later in debate ---

[Laura Trott]

We have been absolutely clear about our record since 2010. I have been clear that I cannot pre-empt the decisions of the Secretary of State. The point is that we on the Government Benches have put plans in place to help pensioners this winter. We are not waiting until next April.

[Mr Mohindra]

I welcome the Minister to her place. Can the Minister confirm to the House again that, if we wait nine days, we will be given all the information this House seeks on the financial statement, which is due next week?

[Laura Trott]

My hon. Friend, on this as with so many other things, is absolutely right. I will make some progress now on my speech.

At the heart of the 2016 reforms we made to the state pension was a correction of some of the historic unfairness in the previous system, particularly for women, the self-employed and lower-paid workers.

Universal Credit and Working Tax Credits

Gagan Mohindra Excerpts

Wednesday 15th September 2021 Commons Chamber

[Jonathan Reynolds]

My hon. Friend is right. The lever the Government have to alleviate this basket of problems—childcare costs, fuel costs, food costs—is to not go ahead with this decision.

My hon. Friend’s intervention brings me to my next point. If it really is the Government’s ambition to level up the UK, it is hard to see how that can mean anything when this cut disproportionately affects the places the Government say they want to boost. Despite all the rhetoric, this cut will take £2.5 billon out of local economies in the north and the midlands, including Stoke-on-Trent which would lose over £32 million and Blackpool which would see £23 million cut.

We all know this money is not being invested or hidden away; it is being spent. It is being spent in shops and restaurants in local high streets that desperately need a boost after last year. After the last week, it seems that the Government are keener on taxes up than levelling up.

[Mr Gagan Mohindra (South West Hertfordshire) (Con)]

On the hon. Gentleman’s comments about the last Labour Government and the 2008 financial crisis, what support did that last Labour Government give to those families?

Income Tax (Charge)

Gagan Mohindra Excerpts

Thursday 4th March 2021 Commons Chamber

[Mr Gagan Mohindra (South West Hertfordshire) (Con) [V]]

The Treasury team’s ability to be dynamic in a quickly changing environment has saved many people up and down the country, including in my constituency, from financial ruin and job loss. The previously predicted job losses have not materialised, and credit must partly lie with the Government’s unprecedented support. The covid debt burden of £407 billion, with the largest borrowing levels outside wartime, is significant. I would argue that we are fighting and winning a world war against an invisible enemy: the covid-19 pandemic. There may be an argument similarly to use a war bond as a way of financing this significant debt, and I will leave that thought with my Treasury colleagues.

This pandemic has not been fair, and this Government have continued to be pragmatic and target support broadly in the right areas. Support like universal credit has succeeded, and I commend the Secretary of State for Work and Pensions for its successful implementation, especially with the significant increase in demand during the pandemic. It is a sign of its success that no one has really mentioned it. The scary predictions of job losses at the start of the pandemic have not materialised, but I know my right hon. Friend will continue to focus on getting the 700,000 people who have lost their job through no fault of their own back into work. We must continue to provide the tools to allow our people to get back on their own two feet.

When I spoke to my constituents, they were clear that they wanted two things from yesterday’s Budget, namely certainty and financial prudence. This Budget has done both, with certainty about VAT cuts and the furlough extension, so that businesses are best placed to ride the wave of our recovery. The restart grants and business rates holidays are also well worth mentioning. This does not mean a magic forest of money trees, and the honesty shown by the Chancellor gives all people the respect they deserve by not hiding difficult financial decisions. Outside of business support, I welcome the extension to the stamp duty holiday and the new mortgage guarantee for homebuyers. As a recent first-time buyer myself, I know how life-changing home ownership can be. It is right that we give more people the opportunity to buy if they choose. The proactive policies mean that generation rent will quickly become generation homeowner.

May I take this opportunity to add to the Treasury’s homework? Things I would like the Treasury to look at in future include the wholesale reform of business rates, as this will be critical to ensuring our businesses do not all leave our city centres and high streets and revert to an online-only or virtual presence. That, in my humble view, is not a legacy we would be proud of. Covid-19 has accelerated the change in our working and buying habits. I urge the Chancellor to grasp this opportunity for tax reform to ensure that all businesses have a level playing field.

There are some who have benefited from the new rules and guidance offered during these difficult times, but some have chosen to take advantage instead of doing the right thing. Specifically, I would query why blue-chip and cash-rich companies are delaying payment of commercial rent. It is worth noting that savers up and down the country have a vested interest, as many pension funds are the ultimate landlord. This is not a victimless act and may be a ticking time bomb we should be looking to defuse before it is too late.

I applaud the Chancellor’s approach to supporting wealth creators, as this will accelerate our recovery and ensure sustainability. I thank the Government for being so proactive and reactive to the pandemic.

Universal Credit and Working Tax Credit

Gagan Mohindra Excerpts

Monday 18th January 2021 Commons Chamber

[Mr Gagan Mohindra (South West Hertfordshire) (Con) [V]]

I congratulate the Minister for welfare delivery on his opening statement and on the work that he and his Department have done to make sure that our most vulnerable have the safety net that universal credit provides. I also take this opportunity to congratulate and give credit to my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith), who pioneered universal credit. It is worth repeating, as the Minister said, that if we had relied on the old system, the likelihood is that it would have fallen over during the global pandemic, so that credit needs to be recognised. Following on with that theme, we can look back to March, when the Chancellor was so proactive and reactive to the global pandemic to ensure that our residents and constituents had the support that was necessary. These were unprecedented times and I congratulate the Chancellor on that.

In my constituency, I have 2,800 people on universal credit. That has more than doubled compared with pre-covid times. The temporary universal credit uplift was part of the armoury of support that the Government have given. One point that I want to stress to the House is that language is really important. If we as a Government and policy makers introduce things temporarily, but there is an expectation that it will be permanent, that will have a significant impact on finances.

At the Budget in just over six weeks is absolutely the right time to be having this conversation. We cannot look at policy making on a stand-alone, piecemeal basis, as the Opposition motion proposes. The £280 billion-worth of measures that have been introduced since the start of the pandemic is unprecedented. One thing that really worries me is how we will look to afford it. It is worth reiterating that we as politicians and Members of the House are purely custodians of other people’s money—the taxpayers. We need to remain pragmatic, and the continued economic uncertainty means that leaving these decisions to 3 March is appropriate. I will leave it at that, Mr Deputy Speaker, and I look forward to the rest of the debate.