Oral Answers to Questions

Guy Opperman Excerpts

Monday 11th February 2019 Commons Chamber

[Alison Thewliss (Glasgow Central) (SNP)]

10. What assessment she has made of trends in the level of debt repayments by people in receipt of universal credit.

[The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)]

The Government have recently reviewed the maximum rate of deductions, which will be reduced from 40% to 30% from October 2019. We are also taking action through the introduction of a Breathing Space scheme and the setting up of the Single Financial Guidance Body, which will consider the needs of people in vulnerable circumstances.

[Alison Thewliss]

The Minister will be aware that I recently met the Minister for Employment regarding my constituent Georgina Woods, whose historical repayments soared from £11.12 a month to £79.46 a month when she moved from tax credits to universal credit—a situation that she cannot get resolved because she tried to save the Government money by not applying for tax credits. It is really difficult to resolve this case due to a lack of communication between the Treasury and the DWP, and that issue will only get worse as universal credit rolls out and it is more difficult for constituents to get this resolved. Why is the Minister’s Department treating people more harshly than the Treasury is?

[Guy Opperman]

I know that the hon. Lady has met my hon. Friend the Minister for Employment on the issue of her constituent and that the Department awaits more details to investigate it in more detail. The wider point is that the Minister for Employment is looking into this issue with Her Majesty’s Treasury and will, I am sure, update her.

[Kevin Foster (Torbay) (Con)]

I welcome the reduction in the maximum deduction rate, but what analysis has the Minister done of what that may mean for the poorest households and how will he communicate the impact of the change?

[Guy Opperman]

We believe that it is a positive step in the light of the review that took place. I draw my hon. Friend’s attention to the Breathing Space scheme that is being introduced by Her Majesty’s Treasury to assist people on an ongoing basis. That scheme came in in the legislation that we introduced last year.

[Mr Jim Cunningham (Coventry South) (Lab)]

Why does the Minister not stop universal credit until such time as the Government get the result of the pilot scheme? Anywhere else, if people have a pilot scheme, they wait to implement it and learn the results from it before rolling the system out. You would do that in the private sector. Why not do it here?

[Guy Opperman]

With respect, the answer is twofold. First, there has been a gradual introduction of universal credit and, secondly, the pilot scheme is in respect of managed migration.

[James Cleverly (Braintree) (Con)]

11. What steps she is taking to increase employment opportunities for care leavers.

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[Alex Cunningham (Stockton North) (Lab)]

15. What plans the Government have to include debts owed to her Department in its new Breathing Space scheme.

[The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)]

I helped to introduce Breathing Space as part of the Financial Guidance and Claims Act 2018. The Department for Work and Pensions is fully supportive of the Breathing Space policy. We also recognise the importance of ensuring that people can access advice in identifying solutions to their debt problems, and we have set up the Single Financial Guidance Body.

[Alex Cunningham]

That is very good to hear, but both the Treasury Committee and the Work and Pensions Committee have said that Departments take a disproportionate and often aggressive approach to the recovery of debt. A single person over 25 claiming universal credit could have £127 deducted from their benefits each month to pay existing debts. If the Government are determined, as the Minister says, to help people manage their debts, why is his own Department making deductions that push claimants further into poverty?

[Guy Opperman]

The hon. Gentleman will be aware that, in relation to Breathing Space, the Government are considering the responses to our recent consultation and will respond in due course, and that the standard deduction rate for the repayment of a non-fraud overpayment of universal credit is 15%.

[Mrs Kemi Badenoch (Saffron Walden) (Con)]

16. What criteria her Department uses to determine where jobcentres are located.

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[The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)]

The reality is that the absolute poverty rate for pensioners has fallen to a record low, with over 200,000 fewer pensioners in absolute poverty before housing costs. The state pension has also increased by over £1,000 in cash terms since 2010 by reason of the triple lock, as well as many other reasons.

[Damien Moore (Southport) (Con)]

T9. Will the Minister explain how today’s announcement will deter reckless bosses from mismanaging pensions?

[Guy Opperman]

My hon. Friend’s constituents in Southport will be reassured that the Government are cracking down on the mismanagement of existing defined benefit pensions, so that his constituents can ensure they get the pensions they deserve and have saved for.

[Wera Hobhouse (Bath) (LD)]

T2. European Union citizens who have worked in this country primarily through agencies are at risk of failing the habitual residence test although they have lived here for many years, because their employment might not have been continuous. Will the Minister meet me to outline what protections are available for those EU citizens?

--- Later in debate ---

[Guy Opperman]

This year, we continue to spend more than £120 billion on benefits for pensioners, including £97 billion on the state pension, which goes up. Mixed-aged couples already claiming pension credit or housing benefit for pensioners will continue to receive those benefits and will not be affected while they remain entitled to either.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

On 2 November, my constituent won his ESA appeal—the DWP did not even bother to attend—but three months on, it is still arguing about whether he should get the full back pay. At what point did the Department become above the law?