Universal Credit: Highlands

George Kerevan Excerpts

Monday 20th March 2017 Commons Chamber

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I am grateful for the opportunity to debate the universal credit full service roll-out in the highlands. My constituency was a pilot area for the programme before it went to full service, and at the time I was very wary of the prospect. I was told that that would provide an opportunity to iron out all the problems and difficulties to make sure there were none when it came to full service roll-out, but I am afraid that that has not been the case. The problems have not been ironed out, and the situation is causing pain, anxiety and hardship for people in my constituency.

The aim of the debate is to highlight the problems, to offer solutions to the Minister and, I hope, to get him to accept the need to pause this harmful roll-out. I am sure that the intention behind universal credit was not to cause this type of difficulty, and I am also sure that the Minister is not intent on punishing people by continuing with the programme as it is. I hope that an outcome of the debate will be an understanding by the Minister of the problems that exist and his commitment to take action.

I was grateful to the Minister for a letter that he wrote to me on 14 March in response to my very detailed letter to him. It is important, in the interests of clarity, that I refer to a number of points in that letter. He wrote:

“We are building and developing the universal credit service all the time.”

By definition, “building and development” means that the process is not completed—it is incomplete. In fact, I contend that at the moment the system is unfit for use. During the period in which we were building and developing a house, we would not allow somebody to live in it. That is tantamount to what is happening to my constituents just now—this is dangerous to their health.

My constituency office alone has seen more than 100 cases involving issues with universal credit. That is just us—the number does not include the other agencies involved. The number does not cover the countless many, many more people who are not getting any help at all because they do not know where to turn. One constituent of mine who contacted us is called Ian. He waited for six weeks without any money. He had to eat at a food bank and to go for days without electricity, all with a two-year-old living in his house. That is not acceptable, and he did not even get any explanation of why that happened.

The Minister said in his letter:

“I recognise that Inverness Jobcentre Plus covers a large geographical area, and many claimants live some distance from the Jobcentre. Claimants are required to submit their evidence, for example childcare cost receipts, to the Jobcentre before the end of the Assessment Period.”

Submitting evidence is not that easy, as we found out when another of my constituents, Jane, had to travel from Grantown-on-Spey to Inverness to hand in her childcare vouchers. That is a journey by public transport of an hour and a half each way—a three-hour return trip. It would have been bad enough if, after she had put in her childcare vouchers, that had been the end of it, but the jobcentre lost the data and Jane had to make several more trips. The matter is still not resolved—that is not acceptable. People are not able to upload the information online; they actually have to hand in the vouchers at the jobcentre. Why is it not possible for them to go to another local authority location to take care of the business? There should be far more flexibility in the system.

The Minister went on to say:

“Universal credit is designed as a digital service to be accessed online”—

as I have just pointed out, that aspect of the system is not complete—and that if people were having difficulty, they could use an 0345 number. He said further that operators

“will offer to call a customer back if concerns are raised over the cost of the call.”

If we look at the issue of digital by design, we find that there is a big gap. Some 17% of people in the highlands have never used the internet, and there are other big areas of digital exclusion.

[George Kerevan (East Lothian) (SNP)]

My East Lothian constituency was the first in Scotland to implement the full service roll-out. Has my hon. Friend had the same experience as us that because so many clients either lack access to IT equipment or are inexperienced at using it, they have to seek help from the citizens advice bureau, local library staff or local social security staff? That has the result that full service roll-out can be implemented only with the addition of massive amounts of staff time from all those bodies?

[Drew Hendry]

I absolutely agree with my hon. Friend, and I shall provide some further examples in a few moments.

For people who suffer from digital exclusion, that is not the end of the problem, because that 0345 number is, in effect, a premium phone line. Another constituent, Claire, was in tears in my office because she had used her last £20 of credit for her mobile phone while being held on the phone for 30 minutes waiting to get through. When her call was eventually answered, after she had used up all that credit, she was promised a call back—she was looking for money to feed her children, by the way—but that call back never came. Two days later she appeared in our office, and when we phoned, it took 34 minutes to get through so that we could get an answer on her case.

The Minister said in the letter:

“Our latest data from February has shown a speed of answer time of between 8 and 9 minutes and I can reassure your that more resource is planned”—

I can tell him that more resource is definitely required. That is a big change from what I was told in a written answer that I received, and it is as an admission that the length of time is increasing, even if the Government’s figure is not accurate. On 16 December, when I asked the Minister what the average call time was, I was told that it was three minutes 27 seconds. That is clearly not correct, even according to the Minister’s letter. Citizens Advice and my constituency office decided to undertake an experiment in which we timed the calls, so the Minister does not have to take just my word for it. It took 28 minutes on average to get through to that line. There is a requirement for a free 0800 support line, and I hope that the Minister will take that on board.

In response to my claim that there was no support line for agencies or MPs, the Minister’s letter said:

“As I mentioned earlier Universal Credit is designed to be accessed online”,

and that there is a “once and done” service. It might be “once and done” for the DWP, but it is certainly not “once and done” for my constituents who are under pressure.

--- Later in debate ---

[Damian Hinds]

Let me thank the hon. Gentleman for that offer. I welcome the opportunity to speak to local organisations throughout the country. My most recent visit to a jobcentre was this morning, and I plan to make another on Thursday. There are several hundred jobcentres throughout the country, and my aim is to get representative feedback and critiques to help our understanding of these issues. I also welcome the communication that I have had from and with the hon. Gentleman in that regard.

[George Kerevan]

Will the Minister give way?

[Damian Hinds]

I will not, if the hon. Gentleman will forgive me.

We have established a dedicated team of employer and partnership staff, who are deployed to engage directly with stakeholders, including local authorities and landlords, to ensure that there is a joined-up approach to supporting universal credit claimants.

I know that housing arrears are an area of concern, which is why that is a regular subject of discussion in our Highland operational forum. Discussing the issues in this way has led to the introduction of some effective troubleshooting measures. To begin with, we are embarking on a specific piece of work to monitor Highland Council cases involving housing costs, to try to establish the root causes of any delays in the process. I appreciate the concerns over rent arrears. I know that it is an issue that matters to a lot of people, but the reality is that a lot of complex, overlapping factors are at play. The roll-out of universal credit is by no means the sole factor contributing to arrears. Let us consider for a moment that, according to the latest report published by the National Federation for Arm’s-Length Management Organisations, over three quarters of its ALMO tenants who have fallen into arrears were already behind with their rent before commencing their universal credit claim.

Some of the rent arrears are clearly attributable to the charging policies of landlords that can create book arrears from the outset of a tenancy. This is a simple definitional point. A landlord who previously charged rent on a weekly basis will of course appear to be missing rent payments under the new system, which pays claimants’ housing costs on a monthly cycle in arrears. We have been clear about the reasons for this change. The key motivation is to create a welfare system that more closely mirrors the world of work. Our research shows that the majority of UC claimants are comfortable managing their own budgets. Furthermore, we know that after four months, the proportion of UC claimants who were in arrears at the start of their claim fell by a third.

State Pension Age: Women

George Kerevan Excerpts

Wednesday 30th November 2016 Commons Chamber

[Ian Blackford]

I will make some progress and then take more interventions. I am aware that many people want to speak.

The Government have changed the entitlement for something that women have paid in for with an expectation of retiring at 60. When the goalposts were moved, the Government could not get around to informing the women affected in a timely manner. A woman born on 6 April 1953, who under the previous legislation would have retired on 6 April 2013, received a letter from the Department for Work and Pensions in January 2012 with the bombshell that she would now be retiring on 6 July 2016. That is three years and three months later than she might have expected, but she received only 15 months’ notice. That is what this Government have done to many women throughout the United Kingdom: 15 months’ written notice on what they thought was a contract they had with the Government, but which has now been ripped up. That is the contempt that this Government have shown for the 2.6 million Women Against State Pension Inequality campaign women throughout the UK.

[George Kerevan (East Lothian) (SNP)]

Does my hon. Friend agree that the attack was made on the WASPI women because they were an easy target, and that it is the first stage in a Conservative plan to downsize and dismantle the state pension altogether?

[Ian Blackford]

My hon. Friend may well be right. The Government are of course hoping that with the passage of time this issue will go away, but it will not go away, because the women are angry. If they do not begin to recognise the need to do something, each and every Member of the House will have the WASPI women coming to their surgeries and demanding action. Not only will they be demanding action, but that will run the risk that this Government will be taken to court.

Employment and Support Allowance and Universal Credit

George Kerevan Excerpts

Thursday 17th November 2016 Commons Chamber

[Justin Tomlinson]

I think that is twice as good as the current plans—it is a brilliant suggestion. All these targets focus minds, and this one made a difference in terms of pushing. That was a lot of what we had to do. We did not necessarily have all the levers ourselves, so having that target to focus minds makes a significant difference.

Wages have increased by 2.3% this year against the backdrop of an inflation rate of 0.9%—that fell again this week, helping people. We have also extended childcare. Let me briefly talk about universal credit, which will make a significant difference.

[George Kerevan (East Lothian) (SNP)]

When the hon. Gentleman talks about rising incomes and wages, the implication is that more people in work will benefit, but as a result of the collapse in the value of sterling, the Bank of England predicts a 10% fall in real incomes over the next three years.

[Justin Tomlinson]

We are awash with predictions from experts, as we have been since the middle of the referendum campaign. So-called experts predicted that inflation would spike this week, but we saw it fall. We will see what happens. Good Governments keep a close eye on these things and act accordingly.

We are still some way away from the full roll-out of universal credit, but our aspiration and the difference that this will make for people are significant, because through universal credit people will have a named work coach. The hon. Members for Gateshead (Ian Mearns) and for Glasgow North East (Anne McLaughlin) highlighted some examples of people’s experiences, and we have all encountered difficult cases in which the system has failed. One key advantage of the full roll-out of universal credit is that every claimant will have a personal, named coach who will stay with them. The job of the coach is not only to help people to get into work, but to navigate all the challenges they face when dealing with complex benefits. If the system does not support claimants in the way it should, the coach will help them to address that. People will not have to rely on going to their Member of Parliament, councillors or local citizens advice bureau, and that will make a significant difference.

--- Later in debate ---

[George Kerevan (East Lothian) (SNP)]

I join other hon. Members in commending my hon. Friend the Member for Airdrie and Shotts (Neil Gray) not only for securing the debate but for mobilising such a cross-party coalition. I must also commend the Minister for Disabled People, Health and Work, the hon. Member for Portsmouth North (Penny Mordaunt), for making notes and being attentive during the debate. There are many Ministers that we could all name who do not do that. I know that she will not give much ground at the end of today’s debate, but I hope that she will take away the feeling of the House on this matter and acknowledge the cross-party view that we should delay the implementation of the cuts to the work-related activity component of the employment and support allowance, at least until we have seen the outcome of the Green Paper.

Interestingly, the underlying reason for a delay has been given to us by the Government themselves. They have implicitly admitted that there is something wrong with the disability payments system for those seeking to get into work. They are looking at the matter again, and we know that the Green Paper consultation period will finish in February. There will then be discussions, and the Government will come back with something after that. All this could take a year or perhaps slightly longer, and we might not see any resolution before the autumn statement of 2017 or possibly in the Budget of 2018. So why change the system now? Why give the civil service more difficulties by changing it now and having to change it again in a year or 18 months’ time? The Government have given us the rationale for a delay.

[Mr Burrowes]

The hon. Gentleman has talked about timing. I want to be more optimistic and give the Government an opportunity here. They are already responding to suggestions about an integrated approach in the Green Paper. We heard announcements yesterday relating to mental health and to homeless jobseekers facing sanctions. I hope that we can look forward to more announcements before April that will mean that we do not need to pause. Let us remain hopeful that we do not have to wait until April for the vision of the Green Paper to come to fruition.

[George Kerevan]

I am happy to accept that optimistic approach. The hon. Gentleman will possibly have more influence on the Government than I will, and the sooner that happens, the better. In the spirit of this debate, I am trying to be as reasonable as possible in giving the Minister information to take back to the Government.

The most frightening statistic that I have read in recent months relates to the rise in the number of people with disabilities in the adult workforce. The figure is something like 400,000 since 2013, so this is not a diminishing issue; it is a social problem that is rising. I suspect that an awful lot, if not the majority, of those citizens with disabilities are suffering from mental health issues. That is precisely the group that comes in and out of employment. It is the strategic group for which we have to craft a benefits system that will help them through the process and give them the support and encouragement they need to get back into work permanently. This is not just another component of the welfare system; it is a key component for dealing with a growing problem, so again we have to ask the Government to look at the issue and not just to make short-term changes. They need to get the Green Paper through and find a permanent solution.

[Justin Tomlinson]

The hon. Gentleman is making a powerful point. He is right to highlight the fact that 50% of the people who go through ESA will have a mental health condition. We should recognise the fact that society is getting better at recognising those with disabilities, which is why we are seeing an increase in the numbers. We also have an ageing population, and 81% of disabilities are related to age.

[George Kerevan]

I could not agree more with the hon. Gentleman, who made an impassioned and elegant speech earlier. Indeed, I am happy to commend the former Prime Minister, who made an impassioned effort to direct the Government to deal with mental health issues. In the light of that, let us not rush into tinkering with the ESA work-related activity component. Let us leave aside these short-term changes until we get a permanent solution on which we can all agree.

The hon. Member for Waveney (Peter Aldous), who is no longer in his place, spoke earlier in the debate. Like me, he represents a constituency in which the full-service roll-out of universal credit has begun. It began in my constituency in March 2016. One of the problems that would emerge if we were to proceed with the ESA work-related activity component cuts, along with ending the eligibility of new claimants under the universal credit regime after April 2017, is that that would create a two-tier system.

Leaving aside the philosophical issues about universal credit, I just want to point out to the Minister that one of the problems is that the full-service roll-out is not working well. This has become the dominant issue in my postbag, with which my constituency office has to deal. With the best will in the world, Jobcentre Plus staff are trying to tackle the problems with the full-service roll-out, but we have had computer problems including constant software bugs and changes. The inability to adjust to the new system has meant that the citizens advice bureaux and the libraries, which are run by the local authority, have been deluged with requests for support by people who are trying to readjust to the universal credit system. Given that the roll-out is not going smoothly, any suggestion that we can suddenly reduce ESA WRAG to the JSA level in April and that it will go through smoothly is wrong. I want to put it on the record that those of us—this has nothing to do with party or opposition to the Government—who are dealing with the full service roll-out know that it is not going well. We should not be changing the way the system works until we know that it is working in a positive way.

There is no one in this House who would not want to see more people with disabilities get back into the workplace, but there is a specific local problem. All the statistics show that we are actually as near to full employment as we are ever going to get. The hon. Member for North Swindon (Justin Tomlinson) was rather scathing about experts and statistics, but they are all that we have to work with. The latest figures from the November Bank of England inflation report suggest that the jobs market will remain tight over the next three years, so the Government must bear that in mind when considering the prospect of getting large numbers of people with disabilities back into the labour market. If we are to get more people back into work, we will have to work with employers and look much more closely at their response.

If there is any lurking suspicion in Government—I am not saying that there is—that reducing ESA WRAG will force more people back into the labour market, I can tell them that that will not work. If that was ever the approach—I am not saying that it was—not only would it be callous, but it would be ineffective. We have to work with employers to put systems in place to enable and prepare them to take more people with disabilities into the labour market. That is a longer-term problem, which will be not be resolved in April by cutting ESA WRAG.

My final plea to the Minister—she has listened attentively and I thank her for that—is to go back to the Treasury and the DWP and rethink the change. It is only a week until the autumn statement, and those of us with any knowledge about how the Treasury works will know that the midnight oil will be burned this weekend as the final changes are made to whatever will be announced next week. There is still time to rethink these cuts.

Budget Resolutions and Economic Situation

George Kerevan Excerpts

Thursday 9th July 2015 Commons Chamber

[Lucy Frazer (South East Cambridgeshire) (Con)]

It is an honour to speak after the hon. Member for Berwickshire, Roxburgh and Selkirk (Calum Kerr), who spoke eloquently. I was particularly interested to hear how his constituency is similar to mine and faces many of the same issues—it is a rural constituency where rural broadband and transport are key issues. I was also interested and honoured to speak after the hon. Member for Caithness, Sutherland and Easter Ross (Dr Monaghan) who made an equally passionate speech. I look forward to hearing many more speeches from him on similar subjects in the future.

This Conservative Budget is a Budget of core Conservative values—financial security, national security, and making work pay—and I wish to identify three different areas that I think should have cross-party support. The first is preparing our young people and getting them into work. It is about apprenticeships and the first step for our young adults to make their way in life. There can be little criticism of a scheme that helps to provide the foundations of the highly skilled workforce that we need for a competitive British economy. Through the apprenticeship levy, businesses are encouraged to take on and train our next generation, which will benefit from in-work training. We created 2 million apprenticeships in the last Parliament, and are committed to creating 3 million more—an ambition that surely must be welcomed.

The second point is about ensuring that for those in work, work pays, and that is achieved through the introduction of a national living wage. The concept of a living wage has had support from many quarters, including small and large businesses, parties across the political spectrum, and consumers across the country. The previous Government increased work opportunities across the country, and those in work must be paid fairly for the work they do, and be able to support themselves and their families from their own income. The new living wage starts to address that issue.

The living wage will also make headway in closing the gender pay gap. Historically, women have suffered more from low pay than men, and that has been a key factor in the gender pay gap. By increasing the minimum wage to a living wage, women stand to benefit and we take another step towards wage equality. Some have said that the amount the living wage is set at may not go far enough quickly enough. I note, however, that the right hon. Member for Doncaster North (Edward Miliband) called for an £8 minimum wage by 2020. The Chancellor has given us a £9 wage by the same date.

Thirdly, and critically, we must live within our means as a country. We cannot leave unnecessary debts to the next generation. In 2010 many said that it was not the right time to reduce the deficit. We had one of the highest deficits in the western world and we were coming out of recession with high unemployment. However, those who did not support the deficit reduction in 2010 must surely support it now. This year, the economy is predicted to grow by 2.4%, making us the fastest-growing western economy. We have the most competitive corporation tax in the G20. Our businesses have created 2 million more jobs since 2010, and the Office for Budget Responsibility forecasts that 1 million more will be created in the next five years. If now is the not the time to cut the deficit, when is?

The question must not be whether to cut the deficit to bring the country back to a surplus, but how. A Budget that makes efficiency savings, reduces tax avoidance and ensures we have a welfare system that rewards work must be, and is, the fairest way to achieve a stable recovery for all.

[George Kerevan (East Lothian) (SNP)]

The hon. and learned Lady and many others on the Government Benches have referred to the cut in corporation tax and the low and competitive rate of corporation tax in this country as an aid to economic development. I appreciate that we need to maintain competitiveness on corporation tax, but I put it to her that all that has happened in the past eight or nine years is that British companies have used that tax cut to build up something in the region of £550 billion of cash reserves that they are not investing. The weakness in the Budget yesterday is that it did nothing to encourage those companies to invest and raise productivity.

[Lucy Frazer]

In a global economy, where companies can invest in any country they choose and base their operations anywhere around the globe, it is absolutely essential that we get companies to invest in our country. We are ensuring that that happens by setting a competitive rate of corporation tax.