Oral Answers to Questions
Guy Opperman Excerpts(1 year, 1 month ago)
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Nickie Aiken (Cities of London and Westminster) (Con)
The Minister for Employment (Guy Opperman)
We are working with UK Hospitality and local providers up and down the country—from Liverpool to Manchester to Coventry; in London, of course; and also, to come, in Wales—to ensure that we have a hospitality work programme that provides employment training, work experience and a guaranteed job interview. It is free for all DWP jobseekers. It is early days, but the signs are promising.
Nickie Aiken
May I first thank the Minister for Employment for joining me this morning at Ben Venuti, a brilliant café and deli in Pimlico, to celebrate hospitality in Cities of London and Westminster? I am delighted that the hospitality SWAP pilot has been launched in my constituency, where we have thousands and thousands of hospitality jobs. One of the businesses involved in the pilot is the Raffles London hotel, just up the road at the Old War Office, which I visited with UK Hospitality recently. What further steps is the Department taking to ensure that the scheme benefits minorities and those struggling the most with the cost of living crisis?
Guy Opperman
It was a tough ministerial visit to an award-winning coffee shop this morning—somehow, I missed the earlier hotel visit. I can assure my hon. Friend that we are driving forward that hospitality pilot to try to tackle the recruitment issues in that vital sector, which permeate all across the United Kingdom. She will be keen to know that every person who passes gets a hospitality skills passport, which we believe can genuinely make a difference across all age groups and all sections of the community.
Michael Shanks (Rutherglen and Hamilton West) (Lab)
Priti Patel (Witham) (Con)
The Minister for Employment (Guy Opperman)
Employment in Essex is up 4% on 2020 figures and better than in 2010. Full credit goes to the Essex jobcentre staff, who, working across the county with local skills providers, are providing real opportunities for local men and women. They held a 50-plus event in Witham recently, for example, and my right hon. Friend will be aware that there is a jobs fair in Maldon on Wednesday, just down the road from her constituency.
Priti Patel
My hon. Friend is well aware of the fact that Essex is a powerhouse when it comes to employment, job creation and economic growth. That said, many businesses are still frustrated because they find recruitment and training difficult. We have the autumn statement coming up, but will he touch on some of the cross-departmental discussions he has been having to look at how we can support businesses by lowering taxes, getting rid of regulation and red tape, and helping them to employ more people and grow the economy?
Guy Opperman
I am grateful to my right hon. Friend for her question, and for her robust championing of Conservative values and support for businesses and jobs in her constituency and across Essex. We at the DWP are working across Government to ensure that we consider different ways of supporting jobs, investment, childcare support, higher-paid skills and pathways into work. The views of my right hon. Friend are strongly put, and I am quite sure that Treasury Ministers and the Chancellor will have taken due notice.
Lee Anderson (Ashfield) (Con)
Chris Stephens (Glasgow South West) (SNP)
The Minister for Employment (Guy Opperman)
The Government have never spent more on welfare and benefit support than we presently do. From April 2023, we uprated benefits by 10.1% and increased the benefit cap levels by the same amount. That is on top of the cost of living support that has been made to multiple households and individuals to address the rising cost of bills.
Chris Stephens
I thank the Minister for that answer, but he will be aware that the Trussell Trust has warned that food banks are at “breaking point”, as more and more people across the UK are unable to afford the essentials, with new figures showing that 1.5 million emergency food parcels were distributed through the charity’s network between April and September this year. Will the Minister therefore back its joint campaign with the Joseph Rowntree Foundation calling for an essentials guarantee within universal credit, to ensure that the basic rate at least covers life’s essentials and that support can never fall below that level?
Guy Opperman
The hon. Member will be aware that there has been £94 billion of cost of living support over and above the 10.1% increase in benefit rates. That support is over 2022-23 and 2023-24. For example, the winter fuel payment will be paid to the tune of £600 or £500 over the next few weeks.
Nigel Mills (Amber Valley) (Con)
Would the Minister agree that the journey we have been on with benefit rates for the last decade and a half has perhaps been a little haphazard, and it is pretty unclear to most people exactly what basket of goods and services benefits are actually meant to buy? If the Minister does not agree with the case for an essentials guarantee, will the Government commission their own study to work out if benefits are at the right level?
Guy Opperman
My hon. Friend makes an interesting point, which is clearly a matter for the Secretary of State and the Chancellor when they make their decisions on uprating, and I am sure they will take that on board. There are always ongoing discussions about how one assesses this process but, with respect, this is the system we have had for some considerable period of time.
Mary Glindon (North Tyneside) (Lab)
John Mc Nally (Falkirk) (SNP)
The Minister for Employment (Guy Opperman)
The Pensions Minister is unavoidably detained in No. 10, so they have wheeled out the old Pensions Minister to attempt to address the hon. Gentleman’s question. The reality of the situation is that April saw the biggest ever rise in the state pension, by 10.1%, thanks to the triple lock. Every pensioner is entitled to a winter fuel payment and will receive a cost of living payment this winter. The poorest pensioners will receive a £900 further cost of living payment.
John Mc Nally
I thank the Minister for his answer, but many older people in my Falkirk constituency are living below or on the poverty line. Furthermore, 2 million older people in the UK live below the poverty line, with many more hovering precariously above it. Research by Independent Age has shown that older people are significantly struggling and urgently need additional cost of living support to help them through the coming winter. By expanding the eligibility criteria for the existing cost of living payments to people on housing benefits and those who receive a council tax reduction, we could help to support this group of older people who desperately need it. Will the Minister commit to that?
Guy Opperman
With no disrespect to the hon. Gentleman, we have committed to that, which is why there is the £900 further cost of living payment, a doubling of the winter fuel payment and the highest state pension we have ever had. This Government are passionately supporting our pensioners and our most vulnerable on an ongoing basis.
Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)
New figures on pension credit update have shed light on the catastrophic failure to get money to the people who desperately need it. Up to 880,000 pensioners are now missing out. Thousands of households would be so much better off and able to keep the heating on and food on the table this winter. Underpinning the figures is a huge drop in uptake among the under-75s, with a fall of up to 20%. With so many new pensioners seemingly unaware of their entitlement to pension credit, will the Government stop burying their head in the sand and get a grip now?
Guy Opperman
It is good to welcome the hon. Lady to the Dispatch Box; I have not previously had the chance to answer her questions. We have undertaken TV campaigns, internet campaigns and campaigns on the radio, in print and on social media—the great Len Goodman assisted us in that regard before his passing—so there is fantastic support across all aspects. The hon. Lady should be aware that pension credit applications were up 75% in the year to May, and we have never had so many people as we are now seeking to encourage to apply. Absolutely, the Government are fully behind the pension credit campaign.
Alan Brown (Kilmarnock and Loudoun) (SNP)
Greg Smith (Buckingham) (Con)
The Minister for Employment (Guy Opperman)
There have been transformational changes in childcare, skills, training and support for future employers, as announced at the spring Budget. It is absolutely the case that from April 2024, eligible working parents of two-year-olds will be able to access 15 hours of free childcare per week from the term after the second birthday, plus there will be the delivery of more support for working parents of children over the age of nine months with 30 free hours of childcare. There is nowhere in the world that compares with our childcare offer on an ongoing basis. We have virtually Scandinavian levels.
Greg Smith
I am a huge supporter of the bold action that the Government are taking to tackle the costs of childcare and get more parents into work. However, some settings in my constituency report that the rate the Government pay does not cover the full costs of providing that place, putting them in an untenable position. Can my hon. Friend work with me, alongside the Department for Education, to ensure that the scheme is fully working and that the childcare places are actually there to be able to take up this generous Government support?
Guy Opperman
I am happy to convene a summit with the Department for Education, my hon. Friend and his unitary authority to discuss the ways in which we are ensuring that. We are already working in partnership with the DFE to deliver this campaign, and clearly the Government are committed to ensuring that the implementation of the expansion to 30 hours is dealt with in an appropriate and seamless way.
Nick Fletcher (Don Valley) (Con)
The Minister for Employment (Guy Opperman)
I am on a one-man mission to support my hon. Friend, who is a doughty champion for Don Valley and getting more people into jobs in his Yorkshire constituency. It was a pleasure to visit his constituency recently and meet the jobcentre leads in his patch, to understand what we can do to drive forward greater employment. He will be aware of the £3.5 billion package of support across the country, some of which is being spent in Yorkshire.
Nick Fletcher
I thank members of Doncaster and Thorne jobcentres for the job fairs they have done, subsequent to my meeting with the Minister at Yorkshire Wildlife Park. Job fairs do a fantastic job. Does the Minister agree that many people in their 50s are busying themselves at home, when they could be having a wonderful second career like me? If he does agree with me, what can he do to help them jumpstart into a new career?
Guy Opperman
My hon. Friend will be aware of the 50-plus champions that we have up and down the country. The midlife MOT is being rolled out across the private sector and across jobcentres up and down the country. Older Workers Week is coming up, and there is no doubt that there are successes up and down the country of workers beyond retirement age who are doing amazing work, whether that is the 96-year-old shop owner I met in Macclesfield, or many of the others I have met in the past few months. These are great people whom we want to support into work on an ongoing basis.
Alison Thewliss (Glasgow Central) (SNP)
Last week, I received a letter from the Minister for social mobility, youth and progression, the hon. Member for Mid Sussex (Mims Davies), saying that she intends to close down the Jobcentre Plus on Renfield Street, which was opened on a temporary basis in 2021. I know from having met the staff there that they have done a huge amount of work to get people in through the door—and in particular to work with employers—and into employment, including a programme for Ukrainians. Why does the Department want to throw that all away and close it down?
Guy Opperman
I think the clue is in the name: it was a temporary jobcentre during covid. I am happy that the specific Minister will write and further explain the situation.
The Minister for Employment (Guy Opperman)
My hon. Friend is a doughty champion for Kettering. He will be aware that 20.9% of working-age people are inactive, down 0.7 percentage points from last year and down 2.7 percentage points from 2010, showing that our drive to get more people into jobs is paying off. The UK now has a lower inactivity rate than the US, France and Italy. We are doing more every single day, but we are also aware that there is more to do.
Anthony Browne (South Cambridgeshire) (Con)
Guy Opperman
Automatic enrolment has transformed savings across the country. I welcome my hon. Friend’s strong support and his passion in this area. The pot for life model offers attraction, with the potential to help engaged individuals with their pension savings if it maintains the gains achieved under automatic enrolment. I am sure he will discuss that with the future pensions Minister.
Anne McLaughlin (Glasgow North East) (SNP)
Guy Opperman
The hon. Lady will be aware that pension credit applications are up 75%. Clearly, we are trying to get that even higher. There is a nationwide campaign, which includes Scotland.
David Duguid (Banff and Buchan) (Con)
According to the latest figures, there are 1,825 households receiving pension credit in Banff and Buchan, but what more can we do as Members of Parliament to encourage more pensioners to apply?
Guy Opperman
My hon. Friend’s campaign in his constituency has been a massive success and I thank him for that. It builds on our nationwide campaign to support pension credit. There is much we can do to promote it locally, which I know my hon. Friend is doing, through our local councils, Citizens Advice and voluntary organisations.
Tim Farron (Westmorland and Lonsdale) (LD)
Bim Afolami (Hitchin and Harpenden) (Con)
May I ask a question about auto-enrolment and pensions? What can the Secretary of State do to build on our good record by extending and increasing the total amount that young people—I see that there are schoolchildren in the Public Gallery—who retire on defined-contribution pensions are likely to be able to save in their retirement?
Guy Opperman
There are two key points here. Consolidation will make a massive difference, but more important is the transformation of workplace savings through auto-enrolment for young people. The figure has risen from below 40% to well over 80%, and it will get bigger as time moves on.
Hannah Bardell (Livingston) (SNP)
For those who suffer from endometriosis, Crohn’s disease and colitis, incontinence is a daily challenge. For the purpose of the Government’s proposed changes in the incontinence descriptor, what capability assessment has been done, and was there any consultation with those sufferers?
Additional Jobcentre Support Pilot: Phase 2 Rollout
Guy Opperman Excerpts(1 year, 3 months ago)
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The Minister for Employment (Guy Opperman)
I wish to update the House on the written statement tabled on 27 February 2023.
Earlier this month, the Department for Work and Pensions started testing a second phase of the additional jobcentre support pilot. The first phase went live on 27 February 2023, following a proof of concept. It tested how enhanced daily work-focused support, across two weeks, can further help eligible universal credit claimants in the intensive work search regime into employment.
Evidence shows that the longer a person is out of work, the harder it is for them to return. A claimant’s likelihood of securing employment declines after 13 weeks, so we are focusing this support on those who remain unemployed or with low earnings after 13 and 26 weeks of claiming universal credit.
The second phase will provide an additional week of daily support after the claimant’s first assessment period. This new earlier intervention will test the impact of a week of skills and employability focused support.
This builds on the first phase of the pilot which, in addition to this extra week of support, continues to test how enhanced daily work-focused support, across a two-week period, can further support eligible universal credit claimants into employment.
As with phase 1, phase 2 of the pilot continues to provide additional one-to-one work search conversations with work coaches and work search support sessions to help claimants. The “Claimant Commitment”, which sets out each claimant’s agreed work-related activities, will be regularly reviewed and activity will be focused on specific steps to support people to move into work.
Claimants will receive prior notice of the requirements they will be expected to fulfil. Eligibility remains unchanged and those with reduced requirements remain out of scope, including those:
Awaiting a work capability assessment;
Required to undertake less than 20 hours a week of work search activity;
Who are gainfully self-employed;
Who have no work-related requirements;
With an easement in place; and
On a full-time provision offer.
The second phase will be tested in the existing 60 pilot sites across central Scotland, Surrey and Sussex, West Yorkshire, Leicestershire, and Northamptonshire. Over the coming months, the pilot will expand further into more jobcentres.
DWP remains committed to providing tailored work-focused support to help move claimants into appropriate and sustainable work, where they can then experience the many benefits of employment.
[HCWS1042]
Oral Answers to Questions
Guy Opperman Excerpts(1 year, 3 months ago)
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Judith Cummins (Bradford South) (Lab)
The Minister for Employment (Guy Opperman)
I welcome our three new colleagues.
The independent Office for National Statistics estimates that, notwithstanding a recent uptick, the unemployment rate is now almost half the rate we inherited in 2010 and is back to pre-pandemic levels.
Chris Elmore
Actually, according to the Government’s own figures, three and a half years after the pandemic began, employment is not back to pre-pandemic levels. Will the Minister set out what the unanticipated rise in unemployment says about the underlying health of our economy? It is not looking good, is it?
Guy Opperman
With great respect, I disagree. Employment is at record levels. Vacancies have been down for the past 10 quarters. Payroll employment is at a record high. Pay is up and inflation is down. We are doing an awful lot better than that lot would.
Judith Cummins
We have seen a summer of job cuts in my Bradford South constituency, with both Morrisons and Solenis announcing major redundancies. Does the Minister agree that this shows that the Government’s plan to grow the economy is failing?
Guy Opperman
I should make the point that payroll employment is at a record high. There are 4 million more people in work than in 2010, and the unemployment rate is down to 4.2% across the UK—that is a near record low. Our jobcentres are clearly doing a fantastic job, and I fully support all the work that is going on in Bradford to try to address these issues.
Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)
Priti Patel (Witham) (Con)
The Minister for Employment (Guy Opperman)
I know that my right hon. Friend is a champion for job creation in Essex, where our jobcentres are working with a range of employers and partners to address recruitment on an ongoing basis. For example, last Wednesday, Essex jobcentres hosted a recruitment event at Stansted airport to match constituents of hers, and of my right hon. Friends the Members for Saffron Walden (Kemi Badenoch) and for Braintree (James Cleverly), and of my hon. Friend the Member for Colchester (Will Quince), to dozens of catering, hospitality and logistics-based jobs.
Priti Patel
Essex is a powerhouse on jobs and employment, but there is always more to do and businesses are saying that they are finding barriers to creating more jobs. Will the Minister give an update on how he is working across government to create a labour market strategy to help enable businesses to recruit, to lower taxes and burdens for businesses, and, in particular, to make it easier for small businesses in counties such as Essex to start employing more people and to recruit?
Guy Opperman
I endorse pretty much everything that my right hon. Friend says. Clearly, we are working with other Departments to ensure that we are doing everything possible to address recruitment. For example, on a recent visit I saw the T-levels being pioneered at South Essex College; I have seen the apprenticeships that are being driven forward locally; and, recently, in Witham, the “midlife MOT” took place in the middle of last month to address older workers. However, there is more to do and we are certainly trying to do it across Departments.
Carol Monaghan (Glasgow North West) (SNP)
In Essex, as in many other parts of the UK, the number of people off work because of chronic illness is significantly higher now than it was before the pandemic. Forcing sick people into work is not an appropriate way of dealing with that, so will the Minister confirm that work capability assessments will be reasonable and will consider all aspects of the individual’s life in assessing whether they really are fit for work?
Guy Opperman
The hon. Lady’s constituency is a long way from Essex, Mr Speaker! She will, however, be aware that over 1 million more disabled people are in work and that the WCA will continue on an ongoing basis until there is reform.
Vicky Ford (Chelmsford) (Con)
Amy Callaghan (East Dunbartonshire) (SNP)
The Minister for Employment (Guy Opperman)
The Government’s firm belief is that the best route out of poverty is through work. In the most recent statistics—in 2021-22—there were 400,000 fewer children living in absolute poverty after housing costs than in 2009-10.
Richard Thomson
A recent study by the University of York found that the two-child limit and the benefit cap had contributed to rising child poverty, which, allied to wider benefit cuts, had impacted larger families disproportionately. Given the growing weight of evidence that families are being pushed further into hardship, will the Government finally acknowledge the real harm that their cruel and callous welfare policies are causing, and reverse them?
Guy Opperman
Families on benefits should face the same financial choices when deciding to grow their family as those supporting themselves solely through work. A benefit structure adjusting automatically to family size is unsustainable.
Amy Callaghan
A report by the Child Poverty Action Group showed that the two-child limit affects one in 10 children across the UK. It found that abolishing the policy would be the most cost-effective action that the Government could take to reduce child poverty. Why will the Minister not take that action? Is child poverty so low on his priority list that he has not considered it, or did he consider it and then decide that vulnerable children just are not worth it?
Guy Opperman
The Government are committed to a sustainable long-term approach to tackling poverty and supporting people on low incomes. We will spend around £276 billion through the welfare system in 2023-24, including around £124 billion on people of working age and children.
David Linden (Glasgow East) (SNP)
The Minister seems to forget that the two-child limit impacts people who are on in-work benefits. The only exemption to the two-child limit is if a woman can prove that her third or a subsequent child has been born as a result of rape. How many people has the Minister’s Department asked to prove that they have been raped in order to get an exemption to the two-child limit?
Guy Opperman
We do not use the language used by the hon. Gentleman, but I will of course write to him.
David Linden
I am disappointed that the Minister does not know, because his Department has made 2,590 women prove and relive the ordeal of being raped, simply to get that state support, but given that the Labour party and the Conservatives support the two-child policy and rape clause, does it give him comfort to know that when the “Ghost of George Osborne Future” comes into office, his legacy in promoting astronomical child poverty rates will be safe in the hands of the Blairites on the Labour Benches?
Guy Opperman
I can only repeat that, compared with 2009-10, there are 400,000 fewer children in absolute poverty after housing costs.
Mark Fletcher (Bolsover) (Con)
Selaine Saxby (North Devon) (Con)
The Minister for Employment (Guy Opperman)
The Jobcentre teams in North Devon are working day and night to fill the vacancies in my hon. Friend’s constituency. That includes inviting employers into the Jobcentre Plus each week, and having upcoming events on sector-based work academy programmes, including one that is about to happen with the NHS trust in Barnstaple.
Selaine Saxby
Unemployment in North Devon is well below the national average due to the high proportion of retired people and a lack of homes those working can afford. Businesses and the public sector alike are reporting high vacancy levels. What steps is my hon. Friend taking to ensure that we do not see further business closures because of a lack of homes that workers can afford?
Guy Opperman
I visited North Devon in April to meet my hon. Friend and discuss those issues. She has my full support and that of the Department in her work to ensure that we address those problems. Clearly, those matters are being addressed on an ongoing basis by the Department for Levelling Up, Housing and Communities, but I can assure her that she has my full support.
Rachael Maskell (York Central) (Lab/Co-op)
John Penrose (Weston-super-Mare) (Con)
The Minister for Employment (Guy Opperman)
I can tell my hon. Friend that there are no plans to change the assessment period and payment structure of universal credit, but I am very happy for him to sit down with officials and discuss his paper.
Alex Davies-Jones (Pontypridd) (Lab)
James Sunderland (Bracknell) (Con)
I am fortunate to represent a part of the country that is blessed with near-full employment. However, businesses in Bracknell and beyond struggle to recruit enough staff. Can the Secretary of State reassure me that his Department will leave no stone unturned in getting as many people as possible back into the workplace?
Guy Opperman
I welcome the good news but also accept the challenge. I have visited Bracknell to meet my hon. Friend and am happy to sit down with him and the local jobcentres to ensure we are addressing his constituency’s vacancy issues.
Mike Amesbury (Weaver Vale) (Lab)
Last week I met the citizens advice bureau in Cheshire west and Chester, which informed me that 75% of those who appeal their PIP assessments win. Why does the Minister not get it right in the first place, and what is he doing, at pace, to address that?
Aaron Bell (Newcastle-under-Lyme) (Con)
The recent changes to access to means-tested benefits for those in receipt of vaccine damage payments are very welcome, and I thank the Minister for his engagement. Will he join me in paying tribute to those who campaigned for that change in the law, including my constituent Sheila Ward?
Guy Opperman
I pay full credit to Mrs Ward and also to my hon. Friend. I read with interest the Stoke Sentinel report on this particular issue. There is a genuine change to be made, there has been a long-standing campaign, and all parties should be pleased with the outcome reached.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
In all honesty, I probably ought to declare an interest, but pensioners living in Edinburgh and Glasgow do not face the same sorts of increases as pensioners living in a remote and faraway constituency such as mine when it comes to living costs such as running a car, buying groceries and heating the house. Will the Government look at ways of targeting these particularly hard-hit people?
Work and Pensions
Guy Opperman Excerpts(1 year, 5 months ago)
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Guy Opperman
Having worked in the Department for Work and Pensions for the past eight years, for my sins, I can strongly assure the hon. Member for Midlothian that the administration of the state pension is a marvel, but it is also incredibly complex. The moment that there were an introduction of a differential assessment, it would create a logistical conundrum, to say the least, and would require administration on an epic level. Getting such a thing correct—I suspect that as the hon. Gentleman proposes, all these things would have to be assessed, including with a prior medical assessment—is extraordinarily difficult. With respect, that approach was comprehensively rejected by the Cridland report. I accept that one paragraph of the Neville-Rolfe report seems to suggest that certain people do so; I think it talks about people who are w65 with 45 years of national insurance contributions. It is something that can be legislated for, because this Government or any future Government will have to legislate for the state pension situation in the next two years.
[Official Report, 12 July 2023, Vol. 736, c. 156WH.]
Letter of correction from the Minister for Employment, the hon. Member for Hexham (Guy Opperman).
An error has been identified in my response to the debate. The correct response should have been:
Guy Opperman
Having worked in the Department for Work and Pensions for the past eight years, for my sins, I can strongly assure the hon. Member for Midlothian that the administration of the state pension is a marvel, but it is also incredibly complex. The moment that there were an introduction of a differential assessment, it would create a logistical conundrum, to say the least, and would require administration on an epic level. Getting such a thing correct—I suspect that as the hon. Gentleman proposes, all these things would have to be assessed, including with a prior medical assessment—is extraordinarily difficult. With respect, that approach was comprehensively rejected by the Cridland report. I accept that one paragraph of the Neville-Rolfe report seems to suggest that certain people do so; I think it talks about people who are 65 with 45 years of national insurance contributions. It is something that can be legislated for, because this Government or any future Government will have to consider the state pension situation in the next two years.
Universal Credit Deductions
Guy Opperman Excerpts(1 year, 5 months ago)
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
The Minister for Employment (Guy Opperman)
It is a pleasure to serve under your chairmanship, Dame Maria. I congratulate the hon. Member for Glasgow South West (Chris Stephens)—my good friend, and I apologise for calling him that, as I realise he will get some opprobrium for it, but we are friends, albeit our views differ—on securing the debate. It is a pleasure to answer on behalf of the Government.
We recognise the importance of supporting claimants to manage their financial obligations, and the deductions policy in universal credit provides a co-ordinated approach to providing that support. There is much that I want to address today, but I will start with the basics: employment is up, vacancies are down, economic inactivity is down and we are pleased to see that inflation has fallen today.
The Government believe that we should continue to have a sustainable, long-term approach to tackling poverty and supporting people on lower incomes. The primary aim of the universal credit deductions policy is to protect claimants by providing a last resort repayment method for arrears of essential services, and to ensure obligations are enforced. It is important to strike the right balance between ensuring protections are in place and allowing claimants to retain as much of their benefit as possible for their day-to-day needs, while understanding that although the taxpayer expects us to recover overpaid benefit debt, that must be done without causing undue hardship.
It is worth remembering that people who are on disability benefits and pensioners have never been more supported. Welfare has never been more supported. Colleagues will be aware that state pensions and benefits were uprated by 10.1% in April this year, the national living wage was increased by 9.7% to £10.42 an hour, and other support includes the energy price guarantee, the household support fund and the various cost of living payments, which I will go through in a little more detail. It is not right to look at universal credit through the prism of what it provides because, for those who require extra support, there are the cost of living payments—£94 billion over 2022-23 and 2023-24—as we continue our support for the most vulnerable households.
Over 8 million UK households on eligible means-tested benefits will receive additional cost of living payments totalling up to £900 in this fiscal year. The first £301 payment was made in April and May this year. Two further payments of £299 and, I believe, £300 will follow this autumn and in spring 2024. That is £900 additional support over and above the universal credit support that is provided.
In addition, 6.4 million people on eligible extra costs disability benefits have also recently received a further £150 disability cost of living payment. In 2023-24 we will spend £276 billion on Great Britain’s welfare system, including £124 billion on people of working age and children. Much criticism was made in the debate, which I have taken on board, but those sums have never been higher.
There is also approximately £30 billion for supported housing. Again, a criticism was made that we do not provide enough for that. I remind colleagues that 1.4% of GDP goes on supported housing. That is by a significant margin the largest sum in the OECD—the next highest is 0.9%. Those are the consequences of decisions made to support individuals on an ongoing basis.
Much was made of the deductions policy, which I will try to address.
Jim Shannon
The hon. Member for Glasgow South West (Chris Stephens) referred to the deductions and the data he had received for England, Scotland and Wales. He had asked for the same information on the deductions in Northern Ireland, but for whatever reason that was not available and I do not understand why. Can the Minister use his powers to enable us to have that data?
Guy Opperman
I can hardly turn down a man who ambushed me with cake not once but twice in Newtownards on my two visits to Northern Ireland. It was a pleasure to join the hon. Gentleman and his colleagues there. I saw not just a thriving business, but some of the difficulties and complexities of life in Newtownards and the work that he and the local support organisation to which he referred very favourably, and rightly so, are doing.
On the Northern Ireland statistics, I am 99% sure that those are due to the changes in Government and the current difficulties in relation to Stormont, but I will do everything I can. I will write to the hon. Gentleman individually—[Interruption.]—and to the hon. Member for Glasgow South West, of course. I will probably refer the hon. Member for Strangford (Jim Shannon) to the Department for Communities in Northern Ireland, with a view to ascertaining the specific data that he seeks. He will be aware that, as we discussed when I visited his beautiful constituency by the lough, I as the individual Minister do not control individual jobcentres or the policy in Northern Ireland.
The hon. Gentleman raised a couple of points, which, as he intervened on me, I will try to deal with. One of the points—a general criticism of the roll-out of universal credit—was also raised by the hon. Member for Birkenhead (Mick Whitley). I respectfully reject that point. Disregarding what one thinks of this Government, under no circumstance could the legacy benefit system have coped with covid. Under no circumstance could it cope with and support the cost of living support that we are rolling out on an ongoing basis. Under no circumstance could it allow for the universal approach that we are able to manage because of universal credit. The hon. Member for Birkenhead has a very illustrious predecessor, to whom I send best wishes, because I know he is not in good health. Lord Field would very much have made the case that universal credit was the right thing to do and that it was right to reform, albeit that the roll-out has been a long-term situation.
The managed migration of tax credits was also discussed. With respect, that is an ongoing policy, and there is transitional protection for people moving from tax credits to universal credit. I respectfully invite colleagues to be aware that the migration is going well and that there are ongoing protections.
The hon. Member for Arfon (Hywel Williams) raised many points. It is not really for me to get into the disastrous state of Labour policy, whether it is that of the Welsh First Minister, the Leader of the Opposition, colleagues on the Opposition Back Benches or the hon. Member for Reading East (Matt Rodda), who chose to present the Opposition’s policy. The best comment I heard was from the hon. Member for Leicester East (Claudia Webbe), who has left—or perhaps the Labour party left her. She quoted Engels, and I think also Marx, in support of her policies. When Marx was talking about the division of labour, I did not know he was actually talking about the Opposition party. The long and short of it is that in Labour-run Wales employment is down, as compared with the rest of the country, where it is up. We could compare and contrast the health service in Wales and in England; the constituents of the hon. Member for Arfon, even on the Llŷn peninsula, are travelling to England for operations.
I believe that I have the time briefly to say that I remember well the summer of 2005, when the hon. Member for Arfon and I were both younger, fitter and probably better looking—[Interruption.] He did not have much hair even then, I have to say. We were both standing for the seat of Arfon and the Llŷn peninsula, as the constituency then was, I believe. The hon. Gentleman was exceptionally courteous to this young whippersnapper, who was representing the Welsh Conservative party, particularly when we attended a hustings event that was conducted entirely in Welsh. Although I can say diolch and many other things, can order two beers in Welsh, and have a mother who is a Llewellyn from the Tywi valley, it was an ordeal I will never forget: spending two hours conducting the whole meeting in Welsh, with some rather large headphones for the translation.
The hon. Gentleman rightly raised affordability assessments. I will come to that, if he will bear with me, but it is unquestionably the case that changes have been made to the universal credit deductions policy following representations made by a Select Committee and others, and it is right that I try to explain where we are with that.
In April 2021, the cap on the standard deductions was reduced to 25% of a claimant’s universal credit standard allowance. That followed a reduction from 40% to 30% several years earlier. At the same time, we doubled the new claim advance repayment period to 24 months. The consequence of that was that hundreds of thousands of universal credit claimants retained more of their award. The reduction in standard cap was warmly welcomed, and we believe that it maintains the right balance.
Colleagues have raised many specifics about deductions, but one must remember, for example, that well over 150,000 individuals have child maintenance deducted in respect of children for whom they are responsible. I could add more detail about individual deductions and the different types of deduction, but the child maintenance deduction in particular is one that concerns the Department because it is the state’s obligation to ensure that parents are responsible to some degree for the children they have. Some of those deductions—well over £2 billion—are made in respect of child maintenance, and scrapping all deductions policy, which some have called for, would have a massive impact in that regard.
There are obviously budgeting advances, which help to finance intermittent or unforeseen expenses—for example, essential household items. Those advances ensure that low-income families with an emergency financial need who do not have access to adequate savings or a loan can access funding.
Several hon. Members have mentioned their food banks. I put on the record my support for the Miner’s Lamp food bank in Prudhoe, which I visited again recently and supported with a donation. In respect of loans, credit unions up and down the country are doing a fantastic job and should be supported by Members. I was proud to set up the Northumberland Community Bank, which is the fastest-growing credit union in the north. I am not involved with it now, which is probably why it is the fastest-growing credit union in the north, but it was very much set up with the Church of England and with local communities to try to provide low-cost savings and loans to support individuals and keep them out of potential difficulties.
We believe that we have reached the right balance on the level of deductions from benefits, but we are committed to supporting those who might be struggling. I want to try to address that situation. It was asserted by various colleagues that there is no fall-back position. I do not accept that. We strive to set affordable and sustainable repayment plans, and encourage customers to contact the Department if they are unable to afford the proposed repayment rate. When a customer makes contact, we might be able to reduce the rate of repayment or temporarily suspend repayment, depending on the customer’s financial circumstances.
The review period for customers with a negotiated affordable repayment rate has also been extended from six months to two years. However, customers may contact us at any time to renegotiate affordable repayment terms.
Guy Opperman
I will give way to the hon. Member for Glasgow East (David Linden). The hon. Member for Reading East has had his say.
David Linden
I am grateful to the Minister for giving way. It is important that information is communicated slightly better to claimants. As an action point, will he undertake to go away and look at how information could be better cascaded to claimants so that they are aware that there is a bit more flexibility? I would appreciate that.
Guy Opperman
I certainly will do that, and I will also have a look at the individual letters that apply in those particular circumstances. All such letters, as the hon. Gentleman will know having done the pensions job for five long, lovely years, are kept under review, and there is the opportunity to do that.
The hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) is no longer in her place—I know she has to be elsewhere—but she raised in particular the issue of access to a journal for those who do not have the internet. Again, we need to make it clear that, obviously, an individual claimant can attend a jobcentre, which has computers that claimants can use to access their universal credit claim and their individual journal, or they can speak to a member of staff who can support them through the process.
Guy Opperman
Bear with me. I might give way, but I am going to keep trying to make progress. The hon. Gentleman had 20 minutes and will have more time soon.
Much criticism was made of DWP staff, particularly by the hon. Member for Leicester East. She used various expressions that I utterly reject. I will not dignify them by repeating them, but I want to make it utterly clear that I am proud to work with the 25,000 men and women who work in our 700-plus jobcentres up and down the country. They do a fantastic job in trying to assist everybody. When she impugns the individual character of DWP staff, I am afraid she is utterly wrong. She should reflect on that and visit her local jobcentre.
Guy Opperman
No, I will not; I am so sorry. I do not think I want to dignify the hon. Lady with any further comment in this debate.
The practical reality of the situation is that we believe very strongly that individual claimants have the ability to receive support. I could go on about various points in respect of advances and the five-week wait. During their first assessment period, a new claimant can receive a payment up to the expected amount of their UC award, which can then be repaid over 24 months. It is not possible to make a payment as soon as a claim is made, and colleagues should understand that. The assessment period must run its course before the award of UC can be calculated. It would not be possible to accurately determine what a claimant’s entitlement will be in the month ahead. The process ensures that claimants are paid their correct entitlement, which is something we all wish to see, and prevents significant overpayments from occurring.
I welcome today’s debate, and I understand and share the concern of the hon. Member for Glasgow South West that we should ensure that we support the most vulnerable in society. I want to finish on a couple of key points. Much criticism is made of the situation in respect of long-standing poverty, but it is a long-standing principle of the Government that the most effective and sustainable way to tackle poverty is by supporting people into work and to progress. In 2021-22, working-age adults living in families in which all adults were working were seven times less likely than working-age adults in workless families to be in absolute poverty after housing costs, and we have made progress. In 2021-22, there were 1.7 million fewer people in absolute poverty after housing costs than in 2009-10, including 400,000 fewer children, with 1 million fewer workless households than in 2010.
Support exists on an ongoing basis and, as I say, there has never been a larger sum spent on those who are most vulnerable. The cost of living support continues into 2024, and I commend the Government’s approach to these issues.
Construction Workers: Pension Age
Guy Opperman Excerpts(1 year, 5 months ago)
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The Minister for Employment (Guy Opperman)
It is a pleasure to serve under your chairmanship, Mr Davies. I congratulate the hon. Member for Midlothian (Owen Thompson) on securing the debate and passionately putting forward his case. I congratulate the hon. Member for Inverclyde (Ronnie Cowan) on the debris and disaster that he wreaked upon his garden last weekend—mighty will be the photographs, I am sure. It was also good to hear the points set out by my friend the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier).
It was good to hear from the shadow Pensions Minister, the hon. Member for Reading East (Matt Rodda), who is also a friend of mine. I am no longer the Pensions Minister, because I was shuffled off that mortal coil by the previous Prime Minister, but I am standing in as a deputy today. I apologise on behalf of the actual Pensions Minister, my hon. Friend the Member for Sevenoaks (Laura Trott), who has a long-standing engagement outside the House of Commons that has been pre-booked for a considerable time, so I notify the hon. Member for Midlothian that she means no discourtesy to him or the House by her absence. I will endeavour to be an able replacement for the Pensions Minister, but she is most definitely carrying forward the torch of the Department’s policy on an ongoing basis.
This has been a debate about all matters construction, and it is right and proper that a full declaration of previous ability be made. I was a painter and decorator for the best part of nine months. I helped to build various buildings on labouring sites, just like the hon. Member for Midlothian, and I was briefly a roofer in my student days. “Opperman” means “upper man”—the man thrown up on the roof in days gone by to catch the tiles as they were thrown up there—so I come to this debate with great support for the construction industry. The hon. Gentleman was entirely right to laud, as others did, construction workers’ contribution to society, whether that is in Scotland, in the United Kingdom or throughout the world. It is to our credit that we have a thriving industry.
The hon. Gentleman raises a legitimate, fair and fundamental point: whether someone is a construction worker or any other person doing a heavy, physical, manual job, how does the state provide for them on an ongoing basis as they age and reach the designated retirement age? With due respect, we have to bear in mind that at all stages there is the issue of intergenerational fairness, because all pensions—this point is not always grasped—are paid by the taxpayer of today, who has to make a contribution to satisfy the number of pensioners, which is going up massively.
Bluntly, we pay more in pensions than ever before in this country. The new state pension went up to £203.85, which is an increase of £18.70, in April 2023. The hon. Gentleman will be aware that the benefit system was enhanced by over 10% in the Budget. We have never paid more in state pensions than we currently do.
Margaret Ferrier
Many construction workers are self-employed and will therefore have no private pension, or a limited one. Does the Minister agree that we should recognise that facet of the construction sector and look at how pension education can be improved in the sector?
Guy Opperman
As the person who pioneered Pension Awareness Day, which I can strongly recommend, and many other pension policies during my five years as the Pensions Minister, I strongly endorse the hon. Lady’s point and encourage the sector unions to get involved in that. To be blunt, some were better than others. I had the honour and privilege of speaking twice at the Trades Union Congress annual conference; I think the first time was a legitimate invitation, but the second time I believe the invitation was probably just repeated by mistake. Making the case to union and sector colleagues for what we are trying to do is very important. I take the point.
The hon. Lady brings me nicely to the issue of which pensions are available. There are three types. There is the state pension, which obviously depends on the extent to which the individual pays national insurance contributions. Pretty much every employee in the construction sector will be paying national insurance contributions as part of their employment, and there is no question but that the self-employed should also be a part of that. The state pension should kick in in the usual way, so that will arrive at a particular time.
On top of that are the reforms brought in originally by the Labour Government, through the Turner commission, in 2003 and subsequently legislated for by the coalition in 2011-12 and expanded on by the coalition. I am referring to automatic enrolment. I accept that not everybody in the construction sector is in an employed job, but I will come to that point in a second. Automatic enrolment is an undoubted cross-party UK success story— I knew it was going well when the Pensions Minister from China requested a meeting to discuss how we were trying to get a workforce motivated and saving in a way that they could not necessarily do previously.
It was clear that the pensions system in the 1980s, the ’90s and the noughties was declining in terms of the private contributions that we wished to see. The defined benefit system was declining and the defined contribution system needed to grow. Putting it to the individual was difficult—I will come in a second to the point that the hon. Member for Rutherglen and Hamilton West made about the self-employed—but automatic enrolment has transformed private pension saving in this country. Saving 8% on an ongoing basis, as we are now doing, with a contribution from the employer within that and some support from the taxman, is massively helpful.
Let me give the stats. As of May 2023, we were almost at 11 million employees, having started in 2012. In 2012, the number of people who had a private pension was 42%; that has now gone up to 86%. Young people were at below 30%; they are now at 85%. Women were at just about 40%; they are now at 87%. The stat that I have for construction workers, which I am assured was provided by my predecessor but one, is that construction workers with private pensions have gone from 30% to 79%. Obviously, that is those who are in an employed situation, but it clearly shows a dramatic improvement on the situation that would have applied if we had been having this conversation 11 years ago, prior to the introduction of automatic enrolment.
That does not mean that one should not address the points that have fairly been raised about the self-employed. Having done 20 years as a self-employed individual, let me make the point that if one is self-employed, one has the perfect right to sign up to one’s own pension. One has the perfect right to join NEST, the National Employment Savings Trust, which is the easiest automatic enrolment provider. There are many different sectors that are relevant. I started out as a—much thinner—jockey and then became a lawyer. Construction workers can set up their own self-employed pension, which is of course tax-deductible as to earnings on an ongoing basis, and many in the construction industry take advantage of that.
However, I accept that there is a cohort that is not saving as it would like to, notwithstanding the three potential ways in which that happens. Along with a state pension that has increased, one has to be aware of the 2016 reforms, which were introduced by a previous Government and set out the new state pension, which was introduced to be simpler and better for a whole cohort of society. To be fair to the hon. Member for Midlothian, he set out the Pensions Minister’s approach previously. This is in a context where there is the universality of the state pension, but more importantly, we have had this for 75 years, and the modern state pension has very clear rules—the hon. Gentleman set them out—about the time at which one can get entitlement. Those rules help to make it both affordable, because it is paid for by the working taxpayer, and sustainable, so that it can continue to be the foundation of income in retirement for future generations.
There is some evidence from some countries—I accept the hon. Gentleman’s point—that one can have an earlier acceptance of part of one’s pension in some cases, but there is a lesser sum. There is genuinely an issue with being careful what you wish for, though. The reason why the Cridland review and the Neville-Rolfe review are sceptical about this, as the hon. Gentleman set out, is that the state pension is there to provide a basic form of support in our old age, such that the state can then say, “We assess that this contribution of taxpayer funding—of GDP—is the amount that we will set aside to try to support those in difficulties by reason of their age, such that they are now pensioners.”
On top of that, there is £30 billion-worth of housing support, there is pension credit support worth many thousands of pounds, and there are a huge number of other additional benefits, such as the winter fuel payment, which is going up by £300. The hon. Gentleman alluded to the fact that things like the cost of living are more complicated; he will be aware that we have spent £94 billion over the past couple of years to support the most vulnerable, including those on benefits, those in receipt of the state pension and particularly those in receipt of pension credit. That support is ongoing. The rises in winter fuel payments are a good example, with the extra £300 coming in plus the ongoing energy support grant.
It is clear that special arrangements for certain groups would rapidly lead to calls for similar arrangements for other groups. How can I put it delicately? I was not a very good jockey—I broke 26 bones in my body in my limited and short career, and my life expectancy and longevity as a jockey were highly limited—but I was able to transfer those skills, some would say interestingly, into being a lawyer and a Member of Parliament. But there are plenty of other professions that would then come forward, and that is a very significant issue for the state. It is worth having a proper conversation about this, because ultimately the state has to decide how much of a tax contribution should be taken from the working population to address these problems. There are inherent problems that would undermine a universal state pension age and its clarity.
Having worked in the Department for Work and Pensions for the past eight years, for my sins, I can strongly assure the hon. Member for Midlothian that the administration of the state pension is a marvel, but it is also incredibly complex. The moment that there were an introduction of a differential assessment, it would create a logistical conundrum, to say the least, and would require administration on an epic level. Getting such a thing correct—I suspect that as the hon. Gentleman proposes, all these things would have to be assessed, including with a prior medical assessment—is extraordinarily difficult. With respect, that approach was comprehensively rejected by the Cridland report. I accept that one paragraph of the Neville-Rolfe report seems to suggest that certain people do so; I think it talks about people who are 65 with 45 years of national insurance contributions. It is something that can be legislated for, because this Government or any future Government will have to legislate for the state pension situation in the next two years. There is no doubt that we will have to return to the issue and produce legislation setting out on how these things can be done, and Parliament can make decisions on that.
I will make a couple of brief points that I think are relevant to how we approach people who have done one job but are struggling to continue in it. First, they would obviously rather be working than on welfare, but we have never paid more welfare support: this country has never given more to the disabled and to those on welfare support. There is a copious amount of support out there. On reskilling, the hon. Gentleman will be aware of the Augar review, the lifelong learning pledge and the efforts that are being made to create further education not just for people aged 18 to 24, but for older workers, in a whole host of ways.
I will slightly push back on the hon. Member for Inverclyde, who was slightly disparaging on the skills situation. I believe that there have been about 5,454,000 apprenticeships since 2010. That is a pretty impressive record on apprenticeships, which have massively increased.
Guy Opperman
I will happily give way, but surely the hon. Gentleman must accept that that is a massive figure.
Ronnie Cowan
But the point I was making was that we picked that up after two or three decades of neglect. What we have been missing in between is the experience that people have gathered during that time.
Guy Opperman
Normally I am very happy to have a go at the 13 years of Labour Governments, but I say respectfully that there was a trend by successive Governments throughout the years that university was the way ahead. That was particularly the case with the Blairite ambition that 50% of all students should be going to university. There is clearly a role for university, but I would like to think that the coalition Government and this Conservative Government have majored on apprenticeships. I urge the hon. Gentleman to read the debate I answered last night—I have been busy—because it was specifically about skills and further employment, with which we are trying to support people.
One way we are supporting people is through the midlife MOT, which is very relevant to the hon. Member for Midlothian. The midlife MOT is mentioned in the Cridland report—I think it is on page 72. It is set out in quite a lot of detail; it is a project that I have pioneered in copious detail for the last six and a half years. I cannot stress enough the difference it is making. The midlife MOT now exists in jobcentres for those who are unemployed; it exists on a private sector basis with the three trials that we have going; and pretty much every large pension provider is now running it. It looks at wealth, work and wellbeing. It is massively appropriate to reskilling those who are 45 to 55 and are struggling to work out the way ahead.
The evidence so far is that the midlife MOT is a very successful innovation. The private sector is very much in support of it. If the hon. Member for Midlothian and his union have not read the Aviva review, I urge them to do so. Put bluntly, the midlife MOT is part of the suite of options that the Government have, along with the business champion for older workers, who I have met repeatedly and is doing good work, and the support for returnerships, which the Chancellor set out in copious detail in the Budget. There are also opportunities for retraining, whether those are in sector-based work academies or in the skills bootcamps run through jobcentres up and down the country, whereby if an individual becomes unemployed they can be retrained in alternative employment so that they can return to the workforce.
In respect of those with health conditions and the disabled, the hon. Member for Midlothian will be aware of the health and disability review that has been published by the Secretary of State for Work and Pensions and the Minister for Disabled People, Health and Work. It looks at exactly how we get people with long-term health conditions and those who are disabled back into work.
Secondly, there is the unquestioned ability that has been shown by so many people. There are now 4.9 million people who are disabled but still working, as of the most recent figures from quarter 3 of 2022. That is an increase of 2 million people. It is a testament to this country that we are now much more open to taking people with health conditions or disabilities into work. Again, that is something that I think will make a difference.
A couple of other points have been made. I have talked about the two state pension age reviews. I would also make the point that for those who are struggling and vulnerable, there has been £94 billion-worth of support.
In conclusion, I believe it is right to restate the point that for 75 years the state pension has had a single issue and receipt date. That will continue for the near future, but Parliament will decide those matters on an ongoing basis with whoever the Government are in future. In those circumstances, I commend this speech to the House.
Two-child Benefit Cap and Child Poverty
Guy Opperman Excerpts(1 year, 5 months ago)
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The Minister for Employment (Guy Opperman)
It is a pleasure to serve under your chairmanship, Mr Pritchard, and I congratulate the hon. Member for Liverpool, Riverside (Kim Johnson) on securing the debate and on the passionate way that she put her argument today. That passion cannot be doubted in any way whatsoever and due respect is due to her for that.
The Government believe that the best way to support people’s living standards is through work, better skills and higher wages. I regret to say that I will rely on an answer similar to the one that the Prime Minister gave to the hon. Lady at Prime Minister’s questions. Whether she agrees or disagrees with that answer, I hope that she will bear with me as I give it.
In 2021-22, children living in a household in which all the adults were in work were five times less likely to be in absolute poverty after housing costs than children living in workless households. We believe that we have made progress. In 2021-22, there were 1.7 million fewer people in absolute poverty after housing costs than there were in 2009-10, including, as has been made clear, 400,000 fewer children. There are also nearly 1 million fewer workless households now than there were in 2010.
Following the review of the benefit cap levels by the Secretary of State for Work and Pensions in November 2022, those levels were increased by 10.1% from April 2023. Let us not forget that households can still receive benefits from the taxpayer up to the equivalent of a salary of £26,500 nationally or £31,300 in London, allowing for London weighting. Also, we uprated the national living wage by 9.7%, increasing our support for both those who are in work and those who are out of work, as well as uprating all benefits by 10.1% in April. That is the largest cash increase ever to the national living wage, which is now up to £10.42 an hour, providing extra support for workers.
Clearly, there are over 1 million vacancies across the UK and our focus is firmly on supporting people into work and helping them to progress in work. That approach is based on clear evidence about the importance of parental employment, particularly where it is full time, in substantially reducing the risks of child poverty.
Nadia Whittome (Nottingham East) (Lab)
Is the Minister aware of the recent study by the London School of Economics, published last month, that found that the two-child benefit cap policy has not increased employment levels? We can only conclude from that that even on its own terms, the policy is failing while hundreds of thousands of families have been pushed into poverty.
Guy Opperman
As I think I have made clear, I do not accept the arguments about poverty. I am not aware of the specific LSE paper that the hon. Lady mentions, but I would make the simple point that in this country we have never given more welfare support or paid higher figures for pensioner support or disability support. Without a shadow of a doubt, there has been massive cost of living support, as I will outline, to the most vulnerable.
Ian Lavery
The Minister makes the case for how good this Government have been on benefits, support and work funds. Minister, that is 4.2 million children living in poverty. He cannot be happy with that; he has to admit it is far too high. Secondly, does the Minister think kids sitting round the tea table at night are worried about whether they are in abject poverty, absolute poverty or relative poverty? If you have an empty belly, you have an empty belly, and this Government should be totally ashamed of themselves because of the high statistics and figures that are rising week in, week out.
Guy Opperman
With respect, I do not accept that the figures are rising week in, week out. The simple point is surely this: over the past two years, the taxpayer has contributed £94 billion of support to vulnerable households, and that support is ongoing. For example, the energy price guarantee will remain in place as a safety net and a support for households until March 2024. The cost of living payment, which I can go into more detail on, features a further £150 payment to 6 million people, over and above existing benefits, which have gone up by 10%. Over £900 will go to 8 million households on means-tested benefits over the course of the year. The first £301 payment to those on means-tested benefits was made in April.
For pensioners, an additional £300 on top of the winter fuel payment is being paid to over 8 million pensioner households. Such a degree of support has never been provided before, and whatever people’s views are of this Government—positive or otherwise—they have stepped in to the tune of £94 billion with cost of living support over the past two years. As I say, the first £301 payment was recently issued to local people up and down the country.
Kim Johnson
Although I appreciate that £94 billion has been issued to the most vulnerable, we are in a crisis. Energy, rent and food are spiralling, so the money people have in their pockets is not going far enough. Does the Minister agree?
Guy Opperman
The Government have stepped forward and provided £94 billion of support, worth on average approximately £3,300 per household, because they wish to address those particular problems. We are trying to help individuals on an ongoing basis for that reason.
I will try to make some progress. The hon. Member for Liverpool, Riverside made much of the question of tax. She will know that the richest 1% pay a massive proportion of UK tax and effectively have never paid as much as they presently do. Changes to taxable thresholds were a coalition policy, to be fair to the Liberal Democrats. When we started in government in 2010, low earners paid tax on low earnings as well as trying to take their money home. The taxable thresholds have risen repeatedly so that low earners no longer pay tax in that way; in other words, we have a very progressive policy that assists people who are struggling. Between 2016 and 2023, the number of couples in employment with children increased by 713,000, which is a 3.4% increase in the employment rate for that groups. In the circumstances outlined, child benefit continues to be paid for all children in eligible families, with an additional amount for any qualifying disabled child or qualifying disabled young person also payable regardless of the number of children in the household.
Universal credit offers additional help with eligible childcare costs and is also available regardless of the total number of children in the household. We believe we have a balanced system that provides strong work incentives and support for those who need it—all benefits have been uprated by more than 10%—while ensuring fairness to the taxpayer and the many working families who not only pay the bills we are talking about but do not see their incomes rise when they have more children.
The Government believe the policy to support a maximum of two children is a proportionate way to achieve these objectives. Similarly, the benefit cap provides both a strong work incentive and fairness for hard-working tax-paying households. It encourages people to move into work wherever possible. The work incentive introduced by the Government will also support people to move into work and increase their earnings, which will significantly increase the likelihood of a household not being affected by the cap. Universal credit households with earnings of £722 a month are also exempt from the cap.
I finish on a couple of key points. Clearly, there is a massive amount of cost of living support. However, I respectfully say that universal credit should be lauded and supported. I do not believe it is Labour party policy to scrap the two-child policy, but whatever happens there is no question that the legacy system that could not in any way cope with variable earnings and allow people to progress in work has been rightly replaced by universal credit, which allows people to work while also being constantly supported and in a position wherein they are never worse off under universal credit.
In conclusion, I welcome the contribution of the hon. Member for Liverpool, Riverside to the debate and I share her concern that children should be supported by the social security system. I respectfully suggest that there is ample evidence showing that that is the case. We are very much of the view that—whether it is through the 10% benefits increase, the £94 billion of support to vulnerable households, the uprating of the national living wage or the work of jobcentres up and down the country to support in-work progression—there is support out there.
Question put and agreed to.
Increasing Employment: Training
Guy Opperman Excerpts(1 year, 5 months ago)
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The Minister for Employment (Guy Opperman)
Good news today: vacancies are down, employment is up, economic inactivity is down and my hon. Friend the Member for Stroud (Siobhan Baillie) has brought forward a crucial debate that could not be more timely.
We start from a situation where we have created over 5,450,000 apprenticeships since May 2010. That is an astonishing figure, well over 5 million, and it is something to be celebrated. However, I take the tone of my hon. Friend’s debate to be both a celebration of what the Government have done, rightly lauding our efforts to get more people into employment, a celebration of the apprenticeship levy and the clear successes it has brought to this country, and a desire to do better. That is something that I utterly endorse.
I am fortunate that I am responding for only one Department. I think I would probably need to respond on behalf of the Treasury, the Department for Education, the Department for Business and Trade and various other Departments that my hon. Friend rightly cited, but, bluntly, I am happy to set out the position as best I can. I endorse what she says about the Policy Exchange report, which is eloquent and well-made and makes some very good points. She and I have also spoken in the past to the Chair of the Education Committee, my hon. Friend the Member for Worcester (Mr Walker), who only a couple of months ago brought forward a specific Education Committee report looking at further education and post-16 education, all of which should be noted by the House.
It is unquestionably the case that upskilling our workforce is the most important thing. We need to do that not least because we are trying to reduce unemployment and improve social inclusion, productivity and progression. I made two visits to the beautiful constituency of my hon. Friend the Member for Aberconwy (Robin Millar) a little while back to see the work that is done by the DWP in his part of the world. I was on the phone to them this afternoon in respect of cases in Ynys Môn and the work that our hon. Friend the Member for Ynys Môn (Virginia Crosbie) is doing to try to deal with the issues in Llangefni. The staff there are fantastically committed to transforming the outcomes that we all hope for.
I was also privileged to visit the constituency of my hon. Friend the Member for Stroud, to meet Tom Robinson from the business Adaptavate and go around his factory. That was in my former life as a pensions Minister; I then enjoyed a brief 49-day holiday as a Back Bencher before returning in this present role, where I hope I can contribute some further matters.
Robin Millar
I simply want to compliment the Minister on his visit to us, for the work that he did there and for his pronunciation of Welsh place names.
Guy Opperman
When I had to secure the survival of the Amlwch jobcentre, that was a particular challenge, but my mum is a Llewellyn and grew up in the Tywi valley, so I have some Welsh in me beyond the ability to order two beers in Welsh.
The jobcentre in Stroud does a great job. I will make two points before I get into the nuts and bolts of the submissions from my hon. Friend the Member for Stroud. I am also proud to call my right hon. Friend the Member for Plymouth, Moor View (Johnny Mercer) and his wife, Felicity, friends. They have very much been abused by others over the last few days. My hon. Friend is right to cite Ronel Lehmann, an old friend of mine who has done great work with Finito and in creating opportunities.
I have over the last few months met the Confederation of British Industry, the Federation of Small Businesses, all the key business organisations, and, most importantly, UKHospitality. We are trying our hardest to drive forward true change to ensure that we get proper job opportunities created to fill the vacancies that clearly exist in the hospitality industry up and down the country. I was privileged to meet all the leading players in the hospitality industry last week, on 4 July. They came to the Department for Work and Pensions, led by our right hon. Friend the Member for Vale of Glamorgan (Alun Cairns), who chairs a relevant APPG, to see how we could flex the employment offer there.
I look forward to being before my hon. Friend’s APPG on the future of employability, which I am booked in to do in September—that is in the diary. It is unquestionably the case that although the Government have committed £1.3 billion this year to fund a range of opportunities designed to raise skill levels and, subsequently, social mobility, and that a huge amount of money has been invested in the national skills fund, we are also trying to remove barriers that prevent people from progressing—be it through universal credit or the in-work progression that we know is so vital, or through the utilisation of the apprenticeship levy and the skills that are there.
It is difficult for me, in my humble position as a junior Minister, to articulate that there will be widespread change to the apprenticeship levy, but I believe that we should support the institution that it is, while asking ourselves how we can improve and enhance the offer. My hon. Friend set out a number of particular recommendations, one of which was familiar to me, because I have met Punch Pubs, Greene King, Budweiser, Heineken, Molson—all the big players in hospitality. They all made the simple point that they pay the apprenticeship levy but cannot then transfer that to the individual publicans in their franchised pubs up and down the country—no matter which constituency—so that they can employ an apprentice. That seems to me to be something that the Government could look at to see how they could flex that on an ongoing basis.
My hon. Friend also raised the brilliantly named regional apprenticeship facilitators—the RAF of the modern era—and she made a fair point: every one of us has, in our constituencies up and down the country, a regional schools commissioner who looks after our region and drives forward excellence in education in that way. Why would one not try to facilitate that for apprenticeships?
On the £3,000 incentive, I bow to others who know the particulars in more detail. On the abolishment of the apprenticeship minimum wage and harnessing that to the Treasury-led national minimum wage for their age, that is a matter that I am sure my hon. Friend will take up with the Treasury. What I will do, however, is ask my colleagues at DFE, HMT and the Department for Business and Trade to respond to my hon. Friend’s individual points in writing so that she gets the detailed answers on how she can drive forward ongoing change, particularly in the light of the APPG that she runs with others.
It is fair to say that there is a gap we have to acknowledge between the amount of money raised from the apprenticeship levy and the actual spend. How can this country squeeze that gap to achieve the outcomes we all so willingly seek in our constituencies? I certainly hope that that is one of the major things pressed upon me. The Chair of the Education Committee, my hon. Friend the Member for Worcester, feels passionately that there must be enough entry-level apprenticeships on an ongoing basis. Others have also made that point. I have had the opportunity to visit South Essex College with my hon. Friends the Members for Rochford and Southend East (Sir James Duddridge) and for Southend West (Anna Firth) to see the benefits of T-levels, which are transformational, and other countries are copying them. There is no doubt that we should be doing more in that space and have great opportunity to do so.
I agree with my hon. Friend the Member for Stroud that our over-50s offer has to get better. She will know that we have 37 over-50s champions in each region of the country, pioneering and driving forward real change in the attitude of employers and co-workers to older workers—some of us have inexplicably reached the age of 50 and need to ensure a supportive approach to that.
There is no doubt that we need to drive forward the way in which employers look at employment. Why would a particular employer pay somebody to provide a service when the Department for Work and Pensions will provide training for free through a skills bootcamp, a sector-based work academy, returneeships and all manner of other things? We exist up and down the country in over 700 locations, in every constituency. I was honoured to go to the Canvey Island jobcentre recently with the Whip on duty, my hon. Friend the Member for Castle Point (Rebecca Harris), and those who work there do a fantastic job of training people up. It is a free service to local employers, and it can be from one week up to 12 weeks. We want more employers to sign up to taking people in this way, and we would like more employers to sign up to T-levels as well. There is no doubt whatsoever that we need to do more in that space.
The childcare reforms that my hon. Friend the Member for Stroud pioneered—I know she has been a frequent visitor to the Chancellor in the previous nine months—have, without a shadow of doubt, done great work to drive forward change and provide opportunity, so that individuals can now go to work and have their childcare supported and paid for by the state. That is certainly making a difference in universal credit.
We continue to work closely across Government and with employers and stakeholders to refine the support on offer and more closely align employment and skills. We need to do that because it supports unemployed people who are looking for work. While the present position is very positive in terms of increasing employment, reducing vacancies and a reducing economic inactivity, we all know that there is more to do, and this is a Government who are passionately committed to ensuring that we solve these problems.
Question put and agreed to.
Department for Work and Pensions
Guy Opperman Excerpts(1 year, 5 months ago)
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The Minister for Employment (Guy Opperman)
It is an honour once again to present the case on behalf of the Department for Work and Pensions in an estimates day debate. I have lost track of the number of times I have done this, but I have certainly done so on numerous occasions during my seven years at the Department.
It is, first of all, my privilege to thank all DWP staff—whom I regard as a massive help and not a hindrance, as some may have suggested—for the fantastic work that they do up and down the country.
Guy Opperman
No.
The Government have never paid more for the pensions that we support in this country, we have never paid more for the benefit support that we provide in this country, we have never paid more for the housing support that we provide in this country, and we have never paid more for the disabled in this country. As we celebrate the 75th anniversary of the national health service, let me also put on record my thanks to the NHS. I have had my life saved twice by the NHS, once after I collapsed in Central Lobby in 2011. I got into politics because of my attempts to save my local hospital, and I am proud to have visited Hexham General Hospital this week to see the amazing new maternity suite that has recently been opened.
Much has been said today about a variety of issues, but I want to try to put the debate in context. The Government clearly understand the pressures that households are facing. We are all familiar with the root causes of our higher costs, including the global factors: the illegal war in Ukraine brought about by Vladimir Putin, the aftermath and consequences of the pandemic, and the furlough scheme and the other support that we set out in great detail and the country provided at a time of difficulty. We are committed to delivering on our priority of halving inflation, which will help to ease those pressures for everyone and raise living standards.
Alongside that work, we continue to implement a significant package of cost of living measures to support the most vulnerable during 2023-24. We have increased benefits and state pensions by 10.1%, and raised the benefit cap by the same amount so that more people feel the benefit of uprating. For low-paid workers, we have increased the national living wage by 9.7% to £10.42 an hour; that represents an increase of more than £1,600 in the gross annual earnings of a full-time worker on the national living wage. That increase, and the increases that we made in the national minimum wage in April, have given a pay rise to about 2.9 million workers. To help parents, we are delivering a significant expansion of childcare support, including a 47% increase in the maximum amount of universal credit childcare payments. As I said in the House last week, that is a dramatic increase. In addition, where there are gaps in provision, notwithstanding the above cost of living payments, the £842 million extension of our household support fund into 2023-24 means that councils across England can continue to help families with grocery bills and other essentials.
Margaret Greenwood
Some universal credit claimants can apply to have the housing elements of their universal credit paid directly to the landlord. However, a report by the Child Poverty Action Group on the discovery phase of managed migration identified delays or errors in the setting up of direct payments and poor communication between the DWP, landlords and claimants, leading to people falling into arrears. That is clearly a serious state of affairs for anyone to find themselves in. Will the Minister tell us what the Government are going to do about it?
Guy Opperman
I will ask the Minister who is responsible for that to write to the hon. Lady. However, her intervention brings me to the issue of housing, which was raised by several Members.
In 2022-23, the Government are projected to have spent £30 billion to support renters. That is 1.4% of GDP. Members may have criticised that sum, but they should be aware that it represents the highest spending on household rental support in any country in the OECD. The next highest is 0.9% of GDP. That figure is clearly higher than the figure that obtained when we came to office. Moreover, there are 2 million more homes than there were then, and more homes are meeting decent homes standards. I could go on.
Employment now stands at 30 million. It is up 23,000 on the month and 73,000 on the quarter, and vacancies are down again—35,000 down on the month in May and 79,000 down on the quarter. Today I met representatives of UKHospitality and a host of hospitality providers at the Department to discuss some of the long-term vacancy issues that they wished to raise. I believe we can continue to work with jobcentres throughout the country to try and address that, and to increase the overall employment rate, which was up by 0.1% on the month and 0.2% on the quarter, with unemployment down by 0.1 percentage points on the month as of May. Economic inactivity is down by 0.4 percentage points on the quarter and down by 781,000 since the 2010 general election. It is clear that the pandemic had impacts, and the progress in certain areas is not as quick as one would like, but we have made huge efforts to turn that around, and all the indications from all the labour market statistics released by the Office for National Statistics in May are that the trends are in the right direction.
Guy Opperman
No, I will not. I have already given way to the hon. Lady.
Let me say something about cost of living payments. We are building on, and extending, the one-off cash payments that we provided in 2022-23, when we made more than £30 million worth of cost of living payments, including the £150 disability payment to 6 million people, £650 for more than 8 million households on means-tested benefits, and an additional £300 on top of the winter fuel payment for more than 8 million pensioner households. That put hundreds of pounds directly and quickly into the pockets of millions of people.
Criticism was made of universal credit as a principle. The first—and simple—point that I would make, which I think was acknowledged by the Chair of the Select Committee, is that the legacy system would in no way have been able to provide the degree of support that universal credit provided during covid, and it would in no way be able to provide an ongoing degree of cost of living support. Universal credit, as we see, provides a massive amount of support on an ongoing basis, which is targeted to help those most impacted by rising prices throughout this financial year.
Guy Opperman
There are about a dozen points made by the right hon. Gentleman to which I was going to respond, but I will give way once again.
Sir Stephen Timms
I am grateful to the Minister. When does he expect to make a decision on whether the cost of living payments will continue for a further year? When, this year, is that decision likely to be made?
Guy Opperman
Because the right hon. Gentleman and I have worked together for many years—and I emphasise “together”—he will know that I have been a humble junior functionary at the Department for Work and Pensions for a very long time, never to rise any higher. Let me also say to the hon. Member for North East Fife (Wendy Chamberlain) that I have had the privilege of serving under three female Secretaries of State before the present Secretary of State. I think I am now on my seventh Secretary of State.
These matters are monumentally above my pay grade, and, as I am sure the right hon. Gentleman knows, having done my job and many other jobs in the Government, they will be decided by the Chancellor and the Prime Minister at some stage over the course of the coming year. [Interruption.] I have much to be modest about, to be honest. As I have said, these matters are above my pay grade and beyond my knowledge, but they will be considered. There will be an autumn statement in November, which will be the obvious time for decisions to be telegraphed, if not made.
The right hon. Gentleman raised a number of points, and I will try to answer some of them in the time that I have. He mentioned prison leavers. The Department recognises the need for prisoners and carers to be able to make advance claims for universal credit, and there is a working process in place to support that. I have met the prisons Minister, my right hon. Friend the Member for East Hampshire (Damian Hinds), who will welcome any questions that will follow during the justice debate, and the social mobility Minister, my hon. Friend the Member for Mid Sussex (Mims Davies), who looks after most aspects of matters relating to prisoners, on several occasions to try to drive forward universal credit take-up. However, it requires the individual to desire to do that, and that is clearly complicated and not easy. It is a work in progress, but it is very much something that we are aware of.
I know that the social mobility Minister is giving evidence to the Select Committee tomorrow, so I will not address in too much detail the issues the right hon. Member for East Ham raised on the Health and Safety Executive, which is one of the few briefs I have not held in the last few years. He rightly raised the issue of transparency, and I would respectfully say that I agree with him. The present Secretary of State has transformed the position in that regard. The right hon. Gentleman knows my strong view that, save where we have to provide data on a monthly basis under labour market statistics, we should have six-monthly provision of the vast plethora of data, linked to the two fiscal events of the year, but that is a work in progress. The Department is definitely reviewing all aspects of those things.
The right hon. Gentleman raised the flexible support fund and particular issues about people taking buses to work. I want to take issue with that, because there is absolutely no doubt that a jobcentre can use the flexible support fund to support bus or other transport fares for agreed work-related activity. If it is for a work-related activity, that support can be provided as it is in other contexts—childcare being the one of which he will be particularly aware. I would certainly very much hope that the individual jobcentre that he referred to would be aware of that.
On fraud and error, the right hon. Gentleman will be aware that huge amounts of effort are being made by the Minister for Disabled People, Health and Work, who takes control of that particular part of the portfolio, and by the Secretary of State in a multitude of different ways. We have a large number of extra staff who have been brought in to address fraud and error. According to the latest national statistics, it has fallen to 3.6% from 4%, and overpayments from fraud are down to 2.7% compared with 3% in 2021-22. Universal credit losses have fallen by nearly 2% over a similar period. Bluntly, we are trying to crack down on those who are exploiting the benefit system, and we want to make it very clear that we are coming after those people. We want to ensure that the maximum amount of support goes to the people who need it.
The targeted support includes support for people on means-tested benefits such as universal credit, with up to three cost of living payments totalling up to £900. We have delivered the first £301 payment to 8.3 million households in support worth £2.5 billion. The two further payments of £300 and £299 will be made in the autumn and next spring. To help with additional costs, we have paid the disability cost of living payment to 6 million people as well as paying the winter fuel support payment. A huge amount is being done in jobcentres, whether that is through the in-work progression offer, the support of extra work coaches, the over-50s support, the administrative earnings threshold support or the 37 new district progression leads who are working with key partners, including local government, employers and skilled providers, to identify and develop local opportunities and to overcome barriers that limit progression.
The hon. Member for North East Fife raised a number of pension matters. Clearly, I continue to defend the actions of the Labour Government and the coalition Government on the rise in state pension age. She referred to both the LEAP exercise and what has happened at HMRC, and they are both works in progress. I do not believe there is any fundamental change to that of which she has been previously advised. On pension credit, she will be aware that there has been an increase in excess of, I think, 170% in applications. There is a slight backlog, but that is coming down dramatically. On the gender pensions gap, she will be aware of the changes to the new state pension, which are massively advantageous to women, and of the fact that successive Governments—starting with the Labour Government and the Turner commission, and then the coalition—have brought in automatic enrolment specifically to address that particular issue.
The hon. Lady raised a final point about those who change jobs in later life. I cannot overstate the importance of the project for which I have been pressing for only five and a half years now, which is the mid-life MOT. I am delighted to say it is now being rolled out across the country, whether that is online, in jobcentres up and down the country or, more particularly, in the three private sector bodies that are trialling particular processes. If she is not yet acquainted with that, I would strongly urge her to become so, particularly because in her area of Scotland in North East Fife there are, I know, providers that are offering that process. I can provide her with the details. Aviva and others are doing very good stuff there.
I am conscious that I have been speaking for some time, but the practical reality is that we believe we are removing the barriers that prevent people from working. We believe that we are reducing the number of people who are economically inactive, with a fifth consecutive month when inactivity has declined. I accept that there is more to do, and I am determined to leave no stone unturned in taking the decisive action needed across Government to see that downward trend continue.
In conclusion, I believe that we are tackling inflation to help manage the cost of living. We are providing extra support. The economic trends, as shown by the labour market statistics, are heading in the right direction and, with the Government’s ongoing significant package of cost of living support, that is worth over £94 billion in excess of the rises to state pension and benefits. We are protecting those most in need from the worst impact of rising prices by putting more pounds in people’s pockets, and I commend these estimates to the House.
Madam Deputy Speaker (Dame Eleanor Laing)
To conclude, I call Sir Stephen Timms.
In-work Poverty
Guy Opperman Excerpts(1 year, 5 months ago)
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The Minister for Employment (Guy Opperman)
It is a pleasure to serve under your chairmanship, Sir George, and I congratulate the hon. Member for Slough (Mr Dhesi) on securing this debate. He and others have raised a number of policy issues that are not in my portfolio, but I will try to deal with them briefly if I can.
In respect of housing, I am not the Housing Minister, but the hon. Member will be aware that in 2022-23, the Government are projected to spend £30 billion to support renters. That is 1.4% of GDP. He may criticise that as an insufficient sum, but it is the highest of any country in the OECD in relation to spending on housing rental support—the next highest is 0.9% of GDP. Clearly, the figure is higher than when we came into office.
The hon. Member’s second point about housing related to the production of homes. We have built 2.2 million additional homes since coming into office. Housing starts are double the number we inherited from the Labour Government in 2010. More homes are meeting decent homes standards, and housing supply is up 10% in the last year for which we have figures. The most recent figures show a 20-year high in the number of new buyers.
On education, the hon. Member specifically raised free school meals. I am not aware that that is Labour Front-Bench policy, but he has the joy of the Back-Bench freedom to roam and create new policy. In any event, it is not even SNP policy. The SNP briefly adopted that, but obviously then parked it in a motorhome, and it has been driven off into the distance of some strange new world of new policy.
Guy Opperman
Of course I will. I look forward to the hon. Gentleman’s defence of all matters motorhomes and policy.
David Linden
I am certainly not going to stray into the Contempt of Court Act 1981, as I am sure the Minister would not either as a former solicitor. Given that he seems to know so much about the free school meals position in Scotland, will he outline to hon. Members when free school meals kick in? I am sure he knows.
Guy Opperman
As I indicated, I am not the Education Minister, but what I am going to do is set out the position. I will happily make the point that this is not Labour party policy. It used to be, as I understand it. Labour proposed universal free school meals, but recently said that it would need to target that—in other words, it would need to make that means-tested.
Guy Opperman
No, I am trying to answer this particular point. The reality of the situation on free school meals—[Interruption.] Hon. Members may chunter away as much as they like, but I am going to try to set this out. On free school meals, under the benefits-based criteria, which I believe is what the SNP Government wish to use, 2 million of the most disadvantaged pupils are eligible for and claim a free school meal. That is 23.8% of all pupils in state-funded schools. The number eligible for free school meals has increased since 2016-17 from 1.128 million to 2.019 million. Almost 1.3 million additional infants enjoy a free healthy and nutritious meal at lunchtime, following the introduction by this Government —to be fair, in the coalition—of the universal infant free school meal policy in 2014. This Government have extended eligibility more than any other. Taken together, we spend more than £1 billion per annum delivering free lunches to the greatest ever proportion of schoolchildren —to more than one third of schoolchildren.
I will move away from those particular policies, because the hon. Member for Wansbeck (Ian Lavery) raised a couple of points that I want to address. He was very critical of the Prime Minister, and it is perfectly his right to be so. The Prime Minister is a gentleman of wealth now, but the hon. Gentleman should remember that he is the son of a pharmacist and a GP, who grew up in Southampton.
The hon. Member also talked about his constituency. He will be aware that I set up the Northumberland Community Bank in Ashington in his constituency. The bank is the fastest growing credit union in the north and is, without a shadow of a doubt, doing amazing work in providing support for loans to local people in Northumberland. I say respectfully that that is an amazing institution, which I hope he supports.
Ian Lavery
Will the Minister kindly inform the House what those last remarks have to do with this debate?
Guy Opperman
The hon. Gentleman raised issues about support for working people. The Northumberland Community Bank is a fantastic institution that provides savings and loans to those in difficulties. It is a co-operative, which I am sure he supports; it was set up in Northumberland; it is a success story; and it is based in his constituency. I will move on.
The Government’s support is underpinned by the wider welfare system, and I will try to set out some particular points on that. In 2023-24, we will spend around £276 billion through the welfare system in Great Britain, including £124 billion on people of working age and their children. Benefit rates and state pensions have increased by 10.1% for 2023-24 and the benefit cap has increased by the same amount. The reality of the situation is that this country has never spent as much as it presently does on this support.
Sir George Howarth (in the Chair)
Order. I do not want to be unkind to the hon. Lady, but in the previous debate, I did point out to an hon. Member that to arrive at the end of the debate and intervene is not necessarily the right way to go about things. If she insists, she can, but I just say that. I call the Minister.
Guy Opperman
Our commitment to protecting the most vulnerable is reflected in the action that we have taken over the past two years as people continue to face cost of living pressures, which are clearly evident and are fundamentally derived from the impact of the covid pandemic and the subsequent war in Ukraine, and the impact of that on energy and other costs.
Overall, in 2023 and 2024, we are providing total support worth more than £94 billion to help people with rising bills. That is an average of more than £3,300 per household. Last year, we made cost of living payments of up to £650 to over 8 million low-income households. This year, eligible households will continue to receive additional payments of up to £900. The first £301 payment to 8.3 million households—this support is worth more than £2.5 billion in total—has recently been paid. Further payments will be made this year. In addition, over 6 million people across the UK on eligible extra cost disability benefits have been paid a further £150 disability cost of living payment.
The practical reality is that we have made progress. In 2021-22, 1.7 million fewer people were in absolute poverty after housing costs than in 2009-10, including 400,000 fewer children. Furthermore, there are now nearly 1 million fewer workless households than in 2010. That is why, with more than 1 million vacancies across the UK, our focus is firmly on supporting people in work, and our core jobcentre offer provides a range of options, including face-to-face work coach support and help to boost interview and employment skills.
The taper has been changed, which I believe is very much of assistance. We have taken decisive action on making work pay by cutting the universal credit taper from 63% to 55% and by increasing the universal credit work allowance by £500 a year, allowing households to keep more of what they earn. The national living wage has increased by a record level of 9.7% to £10.42 per hour from this April, which represents a rise of more than £1,600 in the gross annual earnings of a full-time worker.
To help people to progress, we are extending the support offered by our jobcentres to low-paid workers, so that they can increase their hours and move into better-quality jobs. There are two key measures: the in-work progression offer and the increase in the administrative earnings thresholds in universal credit. The in-work progression offer is now live across all jobcentres in Great Britain. We estimate that about 1.4 million low-paid claimants are eligible for work coach support.
I am conscious of time, and I want to address a key issue. Legitimate points were made on the cost of living and earnings, but I am pleased that, today, the Department for Work and Pensions raised the amount that working parents on universal credit may claim for childcare. This is up to £951 a month for one child and £1,630 for two or more children. That is an increase of approximately 47% on the previous limits, which were £646 and £1,108 respectively. That is a massive increase in childcare support for working parents and of massive assistance to those who work. I hope that the House will welcome that.
The Government are also helping eligible parents to cover the costs for the first month of childcare when they enter work and as they increase their working hours. In addition, the House will be aware of the expansion of the 30 hours of funded childcare that the Government originally introduced in 2017, extending the entitlement to eligible working parents for children aged from nine months old to when they start primary school. That will remove one of the largest hurdles that working parents face by giving a huge boost to the amount of funded childcare that they can access, saving them about £6,500 a year.
Taken collectively, we have heard loud and clear that there is a need for a better amount of support for this particular childcare. In respect of this point, we will provide £204 million of extra funding for local authorities to increase the hourly rates that they pay providers, and make sure that rates continue to go up each year.
The Government are committed to tackling poverty, both in and out of work. We are focusing on making work pay and on progression opportunities. We will ensure that everyone has the opportunity to move into a job where they can realise their potential.